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Vietnam’s new international airport just 50 km away from Halong Bay

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Vietnam just opened a new airport on the island of Van Don, very close to Halong Bay. Previously, travelers had to reach the magnificent UNESCO World Heritage Site via the capital, Hanoi, a four-hour drive away.

While the Vietnamese authorities have extended visa exemption for nationals of certain countries for stays of up to 15 days until 2021, the country has also opened a new airport, billed as Vietnam’s most modern, located close to the popular tourist destination of Halong Bay. The Jakarta Post reports.

Business looks good for the junk boat cruises at this magnificent UNESCO World Heritage Site, as Van Don International Airport, which cost around $350 million and is managed by a private company, will allow visitors to travel directly to Halong Bay, without traveling via Hanoi.

According to Jakarta Post, visitors will be able to reach the port in one hour’s drive, thanks to a new highway, compared to previous travel times of three to four hours, depending on the route. Note that domestic flights to and from Hanoi are operated by Vietnam Airlines and VietjetAir.

Vietnam was aiming for 17 million foreign tourists in 2018. In the end, it welcomed some 15.5 million visitors, up 19.9 percent on the previous year. For 2019, the country’s goal is 18 million international arrivals. The Halong site is just one of the destinations set to help draw visitors, as the country also aims to develop tourism in the wider Quang Ninh province, which has 250km of coastline. Perhaps the beaches of Minh Chau and Ngoc Vung will one day become as popular as those of Phuket or Koh Phi Phi in Thailand. These new facilities, which took barely three years to create, were also envisaged to boost tourism and trade with Taiwan, South Korea, Cambodia and Singapore.

Van Don International Airport expects to see two million annual passengers by 2020 and some five million by 2030.

As well as the airport, Vietnam opened its first international cruise port, specially designed for cruise ships, located in Halong. This new infrastructure, designed by architect Bill Bensley, can accommodate up to 8,460 passengers at once.

Over 8,200 people killed on the road in 2018

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50 traffic accidents with 23 deaths per day on average in 2018.

A total of 18.700 traffic accidents have occurred in Vietnam, causing at least 8,200 deaths and 14,800 injuries in 2018, according to the General Statistics Office of Vietnam.

Compared to 2017, traffic accidents fell 9.2% and deaths declined 0.99%; both serious injuries and light injuries dropped.

According to the General Statistics Office of Vietnam, most of the accidents this year were road crashes caused by speeding, driving in the wrong lane, changing direction without watching the traffic and drunk driving.

The figures show an improvement in Vietnam’s efforts to reduce traffic accidents as well as the number of deaths and injuries.

Among the total number of traffic accidents in 2018, 80% of the cases occurred on roads. It was followed by railway accidents and waterway accidents. General Statistics Office of Vietnam reports.

VDSC: 2019 Vietnam Strategy Report – Be Cautious, Not Pessimistic.

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Under the current global context, it will be hard for Vietnam to “swim against the tide”. The positive point is that the market valuation reversed to a relatively more reasonable level after the correction in 2018. VNIndex’s is now trading at 16x, 25% lower than its peak in March 2018 to reflect the slower growth expected in 2019.
VDSC

However, VDSC believe there is room for growth for Vietnamese industries. The country is going into a restructuring and upgrading phase which focuses on (1) Fighting corruption and institutional reforms, (2) Stabilizing the economy and attracting FDI capital, and (3) Encouraging the development of the private sector and start-ups.

In its base case, the Government expects Vietnam’s GDP growth can be maintained at 6.8-6.9% per annum throughout 2020. The expansion of the middle-class and a young population will bring opportunities to many sectors in the long-term.

For the 61 companies under our coverage (equivalent to 61% market cap in HSX and HNX) VDSC forecasts, for 2019, a 14% average revenue growth and expect net income to increase by 21%.

This year, VDSC focus our stock-picking strategies on three key themes:

Strong fundamentals, characterized by strong cash positions and low leverage ratios,
Taking advantage of global trade agreements and disputes, and
The old story: the SOEs equitization and State divestment.

VDSC statements in the report, “We think the index will fluctuate around the 900-1000 points. In that context, stock picking is what matters. Some stocks are pricier than others”.

In the 129-page Strategy Report, VDSC assesses the Vietnam macro and stock market outlook for 2019, including its main investment themes, our sector preferences and individual analysis of 40+ companies.

2019 Strategy Webinar Invitation

On the back of VDSC’s latest Strategy Report it’s organizing the 2019 Strategy Webinar on Wednesday, January 9, 2019 4:00 PM – 5:00 PM (GMT +7).

VDSC’s research department will present their 2019 Vietnam outlook, their main investment themes, present some of their favorite stocks and answer investors’ questions.

Topics will include:

Vietnam Macro and Stock Market Outlook 2019
Investment Strategy and Themes 2019
Sector and Company Outlook 2019
Stock Picks for 2019

There will be a Q&A session. A recording will be available if you cannot dial in for the live Webinar.

Join the event to receive our top investment ideas and to learn how VDSC’s strategy will help your investment decisions.

Registration URL: https://goo.gl/xtnJHf

Apple cuts outlook, sees ‘challenges’ in China and emerging markets

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The rare revenue warnings from Apple suggested weaker-than-anticipated sales of iPhones and other gadgetry, in part because of trade frictions between Washington and Beijing.

Apple cut its revenue outlook for the latest quarter on Wednesday (Jan 2), citing steeper-than-expected “economic deceleration” in China and emerging markets.

The rare revenue warnings from Apple suggested weaker-than-anticipated sales of iPhones and other gadgetry, in part because of trade frictions between Washington and Beijing.

Apple shares slid some 7.6 per cent in after-hours trade on the news.

The company slashed its revenue guidance for the first fiscal quarter of 2019, ended Dec 29, to US$84 billion – sharply lower than analyst forecasts averaging US$91 billion.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple chief executive Tim Cook said in a letter to investors.

“We believe the economic environment in China has been further impacted by rising trade tensions with the United States.”

Apple is the target of nationalist sentiment over the arrest of Huawei’s chief financial officer in Canada at the behest of the United States on alleged Iran sanctions violations.

Meng Wanzhou was detained in Canada on Dec 1 on a US extradition request linked to sanctions-breaking business dealings with Iran.

The Chinese government has condemned the arrest and demanded her release.

Some Chinese netizens and companies have also turned against Apple.

Several companies have offered employees subsidies for Huawei phone purchases, while others have even warned staff against buying Apple products.

“When the US went after the Huawei founder’s daughter, the Chinese government made Apple the target of the day, so sales should be way off,” independent technology analyst Rob Enderle told AFP.

“This is more political than it is Apple execution.”

Nationalistic sentiment was likely intensified by Apple apparently ignoring a Chinese court-ordered ban on iPhone sales in a case involving US chipmaker Qualcomm, according to the analyst.

Qualcomm, which requested the ban, said last month that the Fuzhou Intermediate People’s Court ordered four Apple subsidiaries to stop selling older models of the iPhone, including the 7, 7 Plus, 8, and 8 Plus.

But Apple stores contacted by AFP in Beijing, Shanghai and Fuzhou in early December said they were still selling those older models – confirming a company statement that all remain available.

“It looks like Apple is flouting Chinese law, which helps promote a boycott,” Endlerle said.

TIMING OFF

Apple breaks down its revenues into a “Greater China” that includes the People’s Republic of China as well as Taiwan.

Cook said other factors will also pull down Apple’s revenue, including the timing of its iPhone launches last year and a strong dollar that means lower revenues when converted to US currency.

Apple also cited supply “constraints” for some products, including its latest Apple Watch and iPad Pro.

The update suggested a disappointing figure for iPhone sales, the key driver of revenue and profit for the California tech giant.

“While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be,” the statement said.

“While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.”

Apple has been seeking to diversify its revenue stream in the face of a largely saturated global smartphone market, with new products and services.

Cook said there were some bright spots for Apple in some parts of the world and that the company expects “all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands and (South) Korea.”

He added that Apple was performing well in a few emerging markets and could see record revenues in Malaysia, Mexico, Poland and Vietnam.

Source: AFP

Vietnam rideshare platform FastGo goes to Myanmar

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FastGo, Vietnam’s first ride-hailing service, has kicked off operations in Myanmar as part of its Southeast Asia expansion plans.
Its joint venture with Myanmarese conglomerate Asia Sun Group began offering services on December 28.

CEO Nguyen Huu Tuat said at the launch that Myanmar is a promising market with the e-commerce, travel and retail sectors all growing rapidly. With a population of 50 million, transport demand in the country is expected to rise, he said.

FastGo targets major cities and provinces and expects to sign up two million users and 100,000 drivers.

It pursues the same business model as in Vietnam, only taking a fixed service cost from drivers and not commissions on each ride and guaranteeing them higher fares during rush hour and bad weather.

It allows users to tip drivers, and offers a priority service for certain customers.

Tuat said FastGo has tied up with Asia Sun because the group has experience in various sectors, deep pockets and an understanding of the local market and culture.

He expected the venture to benefit Myanmar’s digital economy.

FastGo was launched in Vietnam last June and now has over 40,000 partner drivers in 10 provinces and cities.

It aims to be more than just a ride hailing app, offering other services such as food delivery.

FastGo Vietnam Joint Stock Company was established in April 2018 with its headquarters in Hanoi. The company belongs to a wide network of services provided by Nextech, a leading tech firm in Vietnam.

The Nikkei Asian Review reported that the company hopes to make its service available in 20 cities in Vietnam and five other Southeast Asian markets, including the Philippines, Cambodia and Thailand, by the end of 2019.

Source: Vnexpress

Vietnamese banks look towards digitization

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Vietnam’s banks are racing to invest in new technology, infrastructure, and marketing schemes meant to put them on par with evolving global standards for personal banking.

The country’s financial institutions are racing to catch up with banks in developed countries who have been allowing customers to access cashless banking platforms for quite some time.

Techombank was one of Vietnam’s first banks to develop cashless options for its customers, investing US$300 million in 2015 towards technology infrastructure that allowed customers to make transactions via e-banking and mobile platforms, as well as allowing account holders to make ATM withdrawals using an OTP (one-time password) sent via text message in lieu of a bank card, according to CEO Nguyen Le Quoc Anh.

In addition, the Hanoi-based lender also made heavy investments in its marketing, including promotions that allowed customers to make free transactions both inside and outside the bank using E-banking, and providing refunds on goods and services purchased nationwide using a Techcombank card.

As a result, about 42 percent of Techcombank’s 2018 pre-tax profit came from service revenue.

Following the tech-banking trend, Vietcombank, one of Vietnam’s “big five” state-owned banks, introduced VCB QRPAY in 2018, an option which allows its customers to make payments by simply scanning a QR.

With strong telecommunication infrastructure, high rate of Internet penetration and smartphone ownership, Vietnam’s tip toe towards a cash-free economy is expected to hasten over the next few years, according to Dao Minh Tuan, Vietcombank’s deputy general director and president of the Vietnam Bank Card Association.

Digital banking platforms which allow customers access to the exact same services they might find at a bank’s head office are quickly become the norm in Vietnam.

Hanoi-based lender TPBank officially launched its 24/7 online banking platform LiveBank in Hanoi and Ho Chi Minh City in 2016.

Two years later, on September 14, 2018, nationwide lender VPBank launched its own digital platform, YOLO, to compete.

At the recent opening of a new branch of Malaysia-headquartered CIMB Bank in Ho Chi Minh City, Zafrul Aziz, Executive Director of CIMB Group, surprised attendees by announcing that the bank will pilot its Southeast Asian digital banking platform in Vietnam.

The investments each of these banks are making in technology, infrastructure, and marketing seem to be paying off.

The number of products purchased using mobile payment options increased 30 percent from Q1 to Q3 in 2017 compared to the same period in 2016 while the number of goods and services bought via Internet surged by 33 percent and products purchased using electronic wallets soared by 21 percent, according to the State Bank of Vietnam.

Source: Tuoitrenews

Sabeco’s bank accounts only frozen, not debited: Ho Chi Minh City taxman

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The Ho Chi Minh City tax department is refuting claims that it coercively debited VND3.15 trillion ($135.77 million) from Thai-run brewer Sabeco’s bank accounts, insisting that the accounts are only frozen and their balance remains untouched.

Saigon Alcohol Beer and Beverages Corporation (Sabeco), the largest brewer in Vietnam, accused the Ho Chi Minh City tax department last week of breaking several laws by collecting VND3.15 trillion in unpaid tax and fines by debiting the company’s Vietnam bank accounts without proper authorization.

Sabeco, now run by a Thailand-based parent company, insists it has violated no tax laws and warns that it will take “immediate legal action” to protect its rights.

Refuting Sabeco’s claims, the municipal tax department claims it hasn’t touched Sabeco’s money and all has only demanded that the company’s accounts be temporarily frozen, according to Tran Ngoc Tam, director of the Ho Chi Minh City tax department.

“The tax department has requested that Sabeco provide information regarding its other bank accounts, but the company has not complied,” Tam said on Tuesday.

Tam added that his department is following official protocol in its attempts to collect Sabeco’s unpaid excise tax and fines worth a combined VND3.15 trillion.

The whopping sum includes more than VND2,645 billion ($113.8 million) in excise tax that Sabeco failed to pay between 2007 and 2015, as well as an additional VND494 billion ($21.25 million) administrative penalty.

Vietnamese Prime Minister Nguyen Xuan Phuc on Wednesday issued an emergency dispatch asking the finance ministry and the Ho Chi Minh City administration to instruct the municipal tax department to halt and unauthorized collection of Sabeco’s tax and fines.

“Proposals by state auditors and government inspectors concerning the case of Sabeco are being considered,” Mai Tien Dung, Minister and Chairman of the Government Office, said, citing the premier’s order.

“The situation involves a foreign entity, so that must be taken into careful consideration.”

Source: Tuoitrenews

Truck driver to be prosecuted for deadly crash

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The Investigative Police Agency of southern Long An Province has decided to start criminal proceedings against a truck driver following Wednesday’s deadly crash in the province’s Bến Lức District.

The driver, Phạm Thành Hiếu, will be prosecuted on charges of violating traffic regulations. He will be put into temporary detention pending further investigation.

According to a report by the province’s traffic safety board, Hiếu’s truck hit 21 motorbikes waiting at a red light at Nhựt Chánh junction in Bến Lức District on Wednesday, killing three people on the spot and injuring 18 others. One more person died en route to the hospital.

Witnesses said the truck kept driving after hitting the first few motorbikes and dragged some for about 150m before stopping.

Hiếu tested positive for heroin and alcohol, according to Long An General Hospital. The driver left the scene after the accident but then turned himself in the district police station in the evening of the same day and was taken to the hospital for testing.

Two examinations were taken three hours part, but both results showed the driver had heroin in his system. The tests also revealed the driver had high blood alcohol content.

Deputy Prime Minister Trương Hòa Bình, Chairman of the National Committee for Traffic Safety, directed the settlement of the deadly accident. He assigned Vice Chairman of the committee Khuất Việt Hùng to go to the accident site and work with the provincial People’s Committee to determine the consequences. He also called for support for the families of the victims.

On Thursday, Hùng and provincial authorities visited the injured victims who are being treated at Chợ Rẫy Hospital in HCM City.

Hùng said the National Committee for Traffic Safety and Deputy PM Bình asked localities to increase inspections and crack down on traffic violations, particularly drunken driving. They were told to regularly test drivers – especially truck drivers – for drugs to ensure traffic safety.

Source: VNS

Storm Pabuk set to deliver heavy rain, strong winds in southern Vietnam

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Vietnam is set to experience heavy rainfall and strong winds as Pabuk hovers off the southern coast.
As of Wednesday, Pabuk was stationed around 360 kilometers (223 miles) to the southeast of Con Dao Island off the southern province of Ba Ria-Vung Tau, with wind speeds of up to 75 kilometers per hour.

Over the next 24 hours, the storm is expected to move west-northwest at 15 kilometers per hour. At 1 p.m. Thursday, the center of the storm will be around 220 kilometers to the southeast of Ca Mau Province in Vietnam’s southern tip, with wind speeds of 90 kilometers per hour.

Pabuk is projected to move south and cross Ca Mau tip but not make landfall in Vietnam.

Hoang Duc Cuong, director of the National Center for Hydro-Meteorological Forecasting, said the storm will trigger heavy downpours and strong winds in coastal areas from the southern province of Ba Ria-Vung Tau to Ca Mau.

The rainfall in southeast region, including Ho Chi Minh City, is likely to range from 40 to 80 mm, while Mekong Delta provinces such as Soc Trang, Bac Lieu, Ca Mau and Kien Giang can expect rainfall of up to 200mm. Rainfall of above 180mm a day is considered heavy.

Central provinces from Thua Thien-Hue to Binh Thuan should expect heavy rainfall of up to 100 mm while coastal provinces like Quang Nam, Binh Dinh and Phu Yen will be battered by strong downpours, weather experts said. The region is home to popular resort towns Hoi An, Hue and Mui Ne.

Flood warnings have been issued for rivers from Thua Thien-Hue to Ninh Thuan provinces, and landslides are also forecast along rivers and low-lying areas.

Storm preparations

The Central Steering Committee for Natural Disaster Prevention has asked local authorities to stay in contact with 76,000 ships and fishing boats in their jurisdiction as a precaution and ensure safety of residents in storm-hit areas.

Southern provinces such as Bac Lieu, Ca Mau, Ben Tre, Kien Giang, home to the famous Phu Quoc Island and Ba Ria-Vung Tau, home to Vung Tau beach town and Con Dao Island, have told all fishing boats not to head out to sea and called for the ships offshore to move to safer areas.

Two fishing boats sank off the coast of Ba Ria-Ving Tau Province on Wednesday, but no human casualties have been reported.

The new storm has formed just weeks after Usagi, the ninth and last storm to hit Vietnam in 2018, prompted Saigon and the entire southern region to close schools and undertake mass evacuations.

Vietnam was struck by 13 typhoons and tropical depressions in 2018.

A report from the Central Steering Committee on Natural Disaster Prevention and Control released late last week said natural disasters, mostly flooding, tropical storms and landslides, killed 181 people and left 37 others missing in 2018.

The disasters caused damage worth around VND20 trillion ($858 million), three times lower than last year’s figure of VND60 trillion ($2.6 billion).

Source: Vnexpress

Business Registration in 2018 in Vietnam, significant changes in the number

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In 2018, there have been significant changes in the number of business registrations as the number of shutdown and suspended companies climbed up while that of newly established ones grew at a slower pace.

The current reforms do not seem comprehensive enough. Small-scale companies are more likely to be affected by the slow progress of reforming the ‘business environment’. VDSC reports.

The number of newly registered companies was 121,248 and total capital VND 1,234.4 trillion in 11M2018, up 4.5% YoY and 9.1% YoY, respectively. That was lower than 11M2017’s growth of 14.1% YoY and 41.9% YoY. The wholesale and retail sale sector accounted for 35% of total new registrations, followed by construction, manufacturing and real estate.

Related topic: Company registration service in Vietnam

Overall, that has been the trend since 2014 because of better economic conditions and easing regulations. In 2013-2016, Vietnam made starting a business easier by allowing companies to use self-printed value added tax invoices and reducing the time required to get the company seal engraved and registered. Recently, the administration published the notice of incorporation online and reduced the cost of business registration.

However, such reforms seem not comprehensive enough for small-scale companies. Most have difficulty surviving three years. Figure 1 shows an increasing increase of shutdown and suspended operations, from 97,969 from 75,413 enterprises, up over 40% YoY in 2018 so far versus 2017. In Vietnam, nearly 96% of enterprises are small and micro in terms of scale. Those companies’ profitability indicators are significantly smaller than medium- and large-scale companies (figure 2). Although their own resources are limited, the access to credit is not easy due to the issue of collateral. According to GSO’s survey, the micro group lost nearly USD 1.5 Bln in 2016 while the amount of taxes and fees paid was nearly USD 2 Bln.

In our opinion, there are possibilities that the previous reforms are only related to more opened business registration instead of a comprehensive support to the private sector, especially the SME group. According to World Bank’s Doing Business report, the sub-group of ‘starting a business’ scored the second highest number of 84.8 points, just below that of getting electricity. The starting-a-business topic measures the number of procedures, time, cost and paid-in minimum capital required for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business cities. As mentioned, such requirement are good in Vietnam. However, the issues of getting credit, enforcing contracts or resolving insolvency have not clearly improved.

In 2019, VDSC believes that better conditions for the private sector is a necessity. The 12th National Congress of Vietnam Communist Party has approved measures to deal with, however the draft of reducing the tax burden on SMEs is still being processed.

Vietnam goalkeeper Dang Van Lam completed a move to Muangthong United

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Dang Van Lam, the goalkeeper of Vietnam has terminated his contract with V League side Hai Phong FC and has completed a move to Thai giants Muangthong United.

Dang Van Lam starred for the Golden Dragons in their 2018 AFF Suzuki Cup triumph, keeping five clean sheets in eight matches. Fox Sport Asia reports.

The 25-year-old goalkeeper joined Hai Phong in 2015, and established himself as a regular starter, helping them to a sixth-place finish last time out.

Hai Phong reportedly rejected multiple offers for their star keeper from Indonesia and even China before relenting and striking a deal with Muangthong.

Dang Van Lam will add even more firepower to a Muangthong side that already consists of the likes of Adisak Kraisorn, Aung Thu and Teerasil Dangda.

Having finished the 2018 season in fourth place, the Kirins will be looking to close the gap on Buriram and Bangkok this time around, and the signing of Dang Van Lam is a statement of intent.

As for Dang Van Lam, he is currently with the national team preparing for the upcoming Asian Cup after which he will link up with his new teammates for the start of the new season.

Vietnam reaches new heights in 2019

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The targets for 2019 will not just revolve around the country’s GDP.

2018 was a great year for Vietnam’s economy.

According to a report on The Asian Post, the country’s business environment grew tremendously at the start of the year with over 26,000 new enterprises established. In addition to that, the government there highlighted that foreign direct investment (FDI) disbursement reached over US$3.8 billion in the first three months of the year, up 7.2 percent from 2017. Overall, the socialist state’s gross domestic product (GDP) grew by 7.1 percent year on year in the first six months of 2018 – the fastest growth recorded since 2011.

Among the best performing sectors was manufacturing, with an output growth of 13 percent in the first half of the year. Despite the ongoing trade war between the United States (US) and China, Vietnam’s exports soared. The Communist state recorded export revenues estimated at US$244 billion, an increase of 13.8 percent from the previous year.

Rapid growth

Vietnam’s rapid growth over the past decade is mostly due to the country’s move away from a strict controlled economy to a more liberal system. For the past decade, the country has taken on reforms like deregulation which has seen an influx of private enterprises and foreign investment.

The economic reforms carried out by the Communist Party has made Vietnam one of the region’s fastest growing economies. The World Bank also pointed out in its Global Economic Prospects report that Vietnam is one of six countries in East Asia with real GDP growth of more than six percent.

In 2018, the government announced further reforms to Vietnam’s economy. Earlier in the year, in an effort to make Vietnam more regionally competitive, Prime Minister Nguyen Xuan Phuc revealed that the country would cut corporate income tax rates from between 20 to 22 percent to 15 to 17 percent. Furthermore, in March, the Ministry of Transport proposed to enhance services in maritime areas and multi-modal transportation by easing business conditions and regulations. If the ministry’s proposal goes through, 314 out of the current 500 regulations will be cut.

Another notable step Vietnam has taken to open up its economy is by signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the World Bank has estimated will increase Vietnam’s GDP by as much as 3.5 percent.

New targets for 2019

The Communist Party’s General Secretary, Nguyen Phu Trong has called for increased efforts to meet a higher growth rate than 2018. “This will be a heavy task, and all of us must do our utmost to realise this target,” he said.

The targets for 2019 will not just revolve around the country’s GDP, the government has also set various socio-economic goals. For example, it has set a target of reducing poverty by one to 1.5 percent. Last year, the target was between one and 1.3 percent, which the government exceeded at 1.5 percent. Other targets include keeping unemployment below four percent and to increase the percentage of the population with health insurance coverage to 88.1 percent.

Read full article on The Asian Post

December 2018, manufacturing PMI of Vietnam falls slightly

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The expansion in Vietnam’s manufacturing sector in December 2018 slowed from a near-record pace in November 2018 as output growth eased, according to a survey by Nikkei.

The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, fell from 56.5 in November to 53.8 in December, remaining comfortably above the 50-point line separating expansion from contraction. December rounded off a positive year for Vietnamese manufacturers, with its average PMI the highest since the survey began in 2011.

According to latest report on Nikkei, output and new orders remained solid albeit softening from November. New export business also rose at a solid pace. Manufacturers generally expect output growth to continue over the coming year, according to the survey.

The reading “leaves the industry well placed to have a positive 2019 despite headwinds elsewhere in the global economy,” said Andrew Harker, Associate Director at IHS Markit, which compiles the survey.

Read original report on Nikkei

Vietnamese food processing industry expects further expansion, eyes foreign investment

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The Vietnamese food processing industry has experienced rapid growth over the past 5 years, and expects further expansion as it eyes additional foreign investments.

“The country’s industrial production index rose by some 6.8% across the 2013 to 2017 period for the processed food industry, and 9.7% for the drinks industry”, said Do Thang Hai, The Vietnam’s Minister of Industry and Trade

Toward Prosperity, Creativity, Equity, and Democracy vision, the Vietnam’s food processing is also one of the major areas of focus in the country’s development strategy approaching 2025, which will be incorporated into its Vietnam 2035. Food Navigator Asia reports.

The foreign investments are expected to play a major developmental role within this.

Deputy Head of The Ministry of Planning and Investment’s Foreign Investment Agency, Mr. Vu Van Chung, told VNExpress that, total foreign investment into Vietnam’s food processing industry has currently hit the US$11.2bn mark, spread across 717 projects and excluding M&A deals.

The attractiveness of Vietnam’s food processing industry to investors has been attributed to favorable tax policies. Technology related to production chains are completely tax-exempt.

Additionally, investors get an enterprise income tax that is 5% lower than conventional tax (25%), prioritised projects are tax-exempt for up to four years then have a 50% lower tax for another nine years.

The majority of investment funds have been channeled to the processing of seafood, beverages and agricultural produce, but currently faces a major obstacle in terms of domestic material supply, meaning that these materials end up being imported, said Chung.

“Despite preferential policies for investors, Vietnam’s food processing industry has not been able to attract investments from markets that strong in this field, like Japan, the U.S., Australia and the EU,” he added.

Outstanding food processing market segments in Vietnam

According to the Vietnam Ministry of Industry and Trade (MoIT), the production and processing of milk, beverages, cooking oil and confectionary are expected to grow to become the country’s most productive processing market segments.

Local dairy consumption is expected to hit 27 to 28 litres per person per year by 2020, cooking oil consumption will hit 17 kg in 2020 and 20 kg by 2025, confectionery consumption will rise by 10% per year and beverage consumption will reach 6.8 billion litres in 2020 and 9.1 billion litres by 2025.

In Ho Chi Minh city alone, the food processing industry grew 8.7% from January to October this year, according to its municipal trade department.

An example of a company taking advantage of these growing markets is Korea’s CJ Cheiljedang (CJCJ) Group. CJCJ acquired or bought significant shares in a number of food brands and companies in the country, including Ong Kim, Vissan and the Cau Tre Processing Joint Stock Company.

CJCJ also told Vietnam Economy News that it expects to obtain some US$700mn in revenue by 2020 by catering to both domestic and foreign markets post-investment.

More on Vietnam’s food and beverage industry

According to Hai, Vietnam’s annual food consumption makes up some 15% of its GDP, and is expected to expand due to ready-to-eat food trends as well as higher annual incomes.

He also mentioned that things looked hopeful for the industry in the near future, especially after the free trade agreements signed by Vietnam come into force and open up a wider consumer and investor market.

These agreements include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), amongst others.

Business Monitor International (BMI) has predicted that the Vietnamese food and beverage industry will grow by 16.1% between 2016 and 2019.

Read original article on Food Navigator Asia

Mother killed over $35 manicure at Las Vegas nail salon

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Las Vegas police are searching for a woman accused of using a stolen car to run over and kill a nail salon worker after failing to pay for a $35 manicure.

The Clark County Coroner’s Office identified the manicurist as 51-year-old Ngoc Q. Nguyen of Garden Grove, California, and said the cause of death was multiple blunt-force injuries.

Police were trying to identify the suspect and were investigating the crime as a murder, Officer Larry Hadfield said. The woman got a manicure Saturday at a salon about a mile and a half from the Las Vegas Strip, but her credit card was declined when she went to pay.

The woman went to her car, telling salon workers she would come back to pay another way but then tried to drive away, according to police Lt. Ray Spencer.

The manicurist ran in front of the car to try to stop the woman from driving off but was hit by the vehicle, police said. The woman drove away, and Nguyen was taken to a hospital, where she died. A GoFundMe page for Nguyen, which said she was the mother of 3 girls, had raised more than $10,000 by Tuesday.

Sonny Chung, who said he lived with Nguyen for 13 years, told the Las Vegas Review-Journal that he tried in vain to stop the suspect. “I tried to hold the car back, but I’m not Superman,” Chung told the newspaper. “She ran off for $35 and killed my wife — $35 to run my wife over.”

The suspect was in a rental car that had been stolen three weeks ago, Spencer said. The car was found abandoned at a nearby apartment complex.

Investigators don’t believe the person who rented the car was connected to the crime and were reviewing surveillance video to try to identify the woman.

Source: 10tv