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Foreign currency lending extended into 2019

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The State Bank of Việt Nam (SBV) has issued a circular to allow credit institutions and foreign bank branches to extend loans in foreign currencies to some borrowers in 2019, rather than cutting them off at the end of last year as planned.

Under the new circular, lenders will be permitted to provide short-term foreign currency loans to exporters who need the capital to import input materials. Borrowers will be required to have sufficient foreign currency revenue from exports to repay the loans.

The short-term loans are also available to those who need foreign currencies to pay for imported goods and services to serve domestic consumption, with the deadline pushed back to March 31, 2019.

Lenders are also allowed to consider the provision of medium- and long-term foreign currency loans for the payment of imported goods and services until September 30, 2019.

According to the SBV, the extension is designed to assist local exporters and producers by reducing borrowing costs, thereby enhancing their competitiveness in international trade, especially in the context of rising global trade protectionism.

Exporters prefer to take out loans in dollars as the interest rate for dollar loans is lower than for those in Vietnamese đồng. Banks currently list interest rates at 2.8-4.7 per cent per year for short-term dollar loans and 4.5-6.0 per cent for medium- and long-term dollar loans. Meanwhile, interest rates are 6-9 per cent per year for short-term đồng loans, and 9-11 per cent for medium- and long-term đồng loans.

Source: VNS

Four killed, 16 injured as truck crashes into motorbikes in Vietnam

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At least four people died and 16 others were seriously injured in southern Long An Province Wednesday after a truck slammed into motorbikes.
At 3.30 p.m. the container truck was traveling on National Highway 1A when its driver lost control and rammed at least 20 motorbikes waiting at the traffic lights at the Binh Nhut crossroads in Ben Luc District, around 60 kilometers southwest of Ho Chi Minh City.

Many of the motorbikes were dragged for over 150 meters before the truck came to a halt. Some were broken in half.

“It was horrifying,” an eyewitness said.

Three people died on the spot, one died in hospital while 16 others remained hospitalized.

The truck driver, Pham Thanh Hieu, 32, fled the scene after the accident.

Preliminary investigation indicated that he had tried to speed past the traffic light before it turned red.

The police are continuing their investigation.

At 5:15 p.m. traffic was still blocked on the highway.

During the four-day New Year holiday 136 accidents were recorded, in which 111 people died around Vietnam and another 54 were injured, according to the Traffic Police Department.

This was a significant increase in fatalities from last year, when 67 died in three days.

On average, one person dies every hour in road accidents in Vietnam. The country targets reducing road accident deaths to below 20 a day, or 7,300 a year.

Source: Vnexpress

Three dead as taxi with apparently drunk driver overturns in Vietnam’s Central Highlands

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Three people died as a taxi overturned after hitting a motorcycle in an apparent case of driving under the influence in the Central Highlands province of Lam Dong on New Year’s Day.

The taxi, carrying five passengers, was traveling along National Route 20 when it crashed into a motorbike running in the same direction at around 11:00 pm on Tuesday.

The cab, operated by local taxi firm Lado, kept barreling forward before slamming into roadside trees and turned upside down.

Three of the passengers died while the other two, as well as the 23-year-old cabman and the motorcyclist, were seriously injured. The taxi was also severely damaged following the crash.

An official handling the case said the cabbie was allegedly driving under the influence of alcohol, adding his blood sample was taken for testing.

Local authorities gave families of the deceased victims VND5 million (US$215) each as support over the tragedy.

The drink-driving limit for drivers in Vietnam is 80 milligrams of alcohol for every 100 millimeters of blood, or more than 0.4 milligrams of alcohol for every liter of breath.

Drunk driving is punishable by a VND16-18 million ($688-774) fine and confiscation of the driving license from four to six months.

Road accidents killed 81 people and injured 41 others on the last three days of 2018 in Vietnam, when multiple people traveled on tourism trips or back to their hometowns, according to the country’s National Traffic Safety Committee.

Source: Tuoitrenews

Are Vietjet’s recent troubles the result of scorching-hot development?

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From a small airline with only three aircraft in 2011, Vietjet Air has become a big low-cost air carrier (LCC) with annual revenue of VND50 trillion.

Vietjet owner Nguyen Thi Phuong Thao’s development of the biggest LCC in Vietnam has been used as an example of emerging market development in classes at Harvard’s business school.

Vietjet Air has made big leaps in the last seven years. The first images of Vietjet Air, with stewardesses in bikinis, once stirred controversy and raised curiosity in the international press. This gave a push for the first private Vietnamese airline to take off.

Vietjet Air’s revenue began soaring in 2014, reaching VND8.699 trillion, a growth rate of 129 percent compared to 2013. The high growth rate was repeated once again in 2015 with impressive revenue of VND19.845 trillion.

In 2016 and 2017, its revenue growth rates were 38.5 and 53.8 percent, respectively. The big achievements gave Vietjet Air reasons to set a revenue target of VND50.97 trillion in 2018.

There are no official statistics about air carriers’ market share. However, some financial institutions believe that Vietjet outstripped the national flag air carrier Vietnam Airline in market share in 2018.

According to Bao Viet Securities, Vietjet now holds 42 percent of market share, and the figure is still rising.

Before Vietjet joined the market, only 1 percent of Vietnamese could approach air travel, while air tickets were expensive and reserved only for the well-off.

To serve the hot development, Vietjet has ordered hundreds of aircraft, both Airbus and Boeing. It has 61 A320s and A321s, both chartered and owned, a high number for a young airline, according to Planespotter.

The number of airplanes increased from 3 in 2011 to 61 in 2018.

While Vietjet flies in full swing, it has met with troubles recently. The Ministry of Transport (MOT) has given a ‘strong warning’ to Vietjet for multiple incidents that have threatened flight safety.

In the last three months, Vietjet had seven incidents, including five technical problems.

Zing.vn quoted Nguyen Thanh Trung, a veteran pilot, as saying that the air carrier is ‘obviously meeting problems’. He said Vietjet needs to examine the quality of pilots, technical systems, and monitoring.

However, Nguyen Thien Tong, an aviation expert, believes there is no link between incidents and hot development.

“An air carrier with no hot development still has similar troubles,” he said. “It is wrong to think that once development cools down, incidents won’t occur.”

Source: VNN

VDSC 2018 Recap: The Global and Vietnam highlights

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VIETNAM HIGHLIGHTS IN 2018

Vietnam’s 2018 GDP growth reached 7.08%, higher than 6.8% of the consensus which make the country much more attractive for foreign investors.

Vietnam will post a trade surplus of USD7.21 billion in 2018, up 41% compare to 2017.

Vietnam has signed CPTPP, the third biggest FTA in the world, will start from 2019. This is expected to boost Vietnam’s economic growth with more transparent and open policies.

In November 2018, Vietcombank and VIB were permitted to apply the BASEL II. This is a milestone to the developments in application of international standard in Vietnam. In 2020, government expects 12-15 banks to apply the BASEL II.

VNIndex reached an all-time high of 1,204.3 on 9 April 2018.

Trading liquidity improved 23% from USD149,8mn/day in 2017 to USD183,88mn/day.

Vietnam’s stock market capitalization rose 13.5% against the end of last year, reaching a record high of VND3.98 quadrillion (USD170.93 billion), equivalent to 79.6 percent of the country’s GDP.

Foreign capital inflows into the stock market were estimated at USD2.8 billion USD, slightly lower than the USD2.92 billion recorded in 2017.

Improvement in derivatives: average number of contracts reached 58,613/day in 2018, 5.3x times compare to 2017

FTSE listed Vietnam market into the upgrade list: from frontier market to secondary emerging market. Although it would take few years to get into secondary emerging market list, investors which keen on this sector would start their research about Vietnam and buy shares when the time comes.

Vietnam surpassed Singapore as largest IPO fundraiser in Southeast Asia, raising USD 2.6bn across 5 deals.

The most popular one was Vinhomes (HSX: VHM) being able to raised USD1.35bn which is the biggest ever issue in Vietnam and the second biggest deal in Southeast Asia in 2018. Another big deal in 2018 was Masan Group (HSX: MSN) signing a strategic partner with SK Group – the company invested USD470mn to buy back around 110mn treasury shares of MSN which is equivalent to 9.5% of total voting shares.

GLOBAL HIGHLIGHTS IN 2018

2018 China – US Trade War

China and the United States are engaged in a trade war as each country continues to dispute tariffs placed on goods traded between them. Donald Trump had promised in his campaign to fix China’s “longtime abuse of the broken international system and unfair practices”.

China set to convene meeting to discuss response to US tariffs

World Oil Price Fell Sharply In 2018

World oil prices plummeted below USD70/barrel (down more than 40% compared to the price of 115 USD / barrel in June) has caused many oil exporting countries to suffer.

This is the deepest decline in nearly 5 years in the world oil market. On November 27, the Vienna meeting of the Organization of the Petroleum Exporting Countries (OPEC), which controls nearly 40% of the world oil market, failed to reach an agreement on cutting production.

Energy demand is closely related to economic activity. In addition, this demand also increased sharply in the winter in the Northern Hemisphere, and during the summer in countries that use air conditioning. Sources of supply may be affected by weather (hindering the loading of oil tanks) and geopolitical turmoil.

CPTPP Signed And Takes Effect In 2019

At the end of October 2018, Australia became the sixth country to ratify the Comprehensive Trans-Pacific Partnership (CPTPP) Agreement, meeting the necessary conditions for this agreement to be implemented from January 2019. .

The 11 country trade agreement is expected to promote economic growth, create more jobs, reduce poverty and improve the quality of life of the people of member states. This agreement will create one of the largest free trade blocks in the world with a market of about 499 million people and Gross Domestic Product (GDP) of about USD10,100 billion, accounting for 13.5% of world GDP.

Tropical Storm Pabuk to threaten Vietnam with flooding rain

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After inundating the Philippines with deadly flooding, a strengthening tropical cyclone has its sights set on Indochina.

Strengthening on Tuesday brought the cyclone to tropical storm status, and it was given the name Pabuk.Faith Eherts, AccuWeather meteorologist reports.

Additional strengthening is forecast on Wednesday and Thursday as the storm tracks over the open water south of Vietnam and Cambodia.

Even though the storm is not expected to make landfall in Vietnam, heavy rain, rough seas and coastal flooding will impact the South Central coast, Southeast and Mekong River Delta regions of the nation through Thursday.

In Ho Chi Minh City, 50-100 cm (2-4 inches) of rainfall could lead to localized flooding at midweek.

Tropical Storm Pabuk to threaten Vietnam, Thailand with flooding rain

Rain bands from Pabuk will also drench southern Cambodia where localized flooding will be possible on Wednesday and Thursday.

The storm is expected to remain a dangerous cyclone as it moves into the Gulf of Thailand by Thursday, creating dangerous seas throughout the region and heightening the risk of coastal flooding in Cambodia and southern Thailand. Coastal operations could come to a halt.

Read full report on AccuWeather

111 killed on roads over four-day New Year holiday in Vietnam

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136 traffic accidents were recorded, killing 111 people and injuring another 54 across Vietnam during the four-day New Year holiday, National Traffic Police Department reports.

This new year’s holiday saw a significant increase in fatalities compared to previous year with about 28 deaths per day, which saw 124 accidents with 67 fatalities over three days.

Most of the accidents this year were road crashes caused by drunk driving, driving in the wrong lane, speeding, changing direction without watching the traffic.

The police handled 15,200 traffic violations, suspended more than 3,300 driving licenses and fined violators a total of US$595,000 during the weekend holiday.

According to the World Health Organization, approximately 1.35 million people die each year worldwide as a result of road traffic crashes. Road traffic crashes cost most countries 3% of their gross domestic product.
More than half of all road traffic deaths are among vulnerable road users: pedestrians, cyclists, and motorcyclists. 93% of the world’s fatalities on the roads occur in low- and middle-income countries, even though these countries have approximately 60% of the world’s vehicles. Road traffic injuries are the leading cause of death for children and young adults aged 5-29 years.

Vietnam’s cyber-security law comes into effect

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A law requiring Internet companies in Vietnam to remove content that the communist authorities deem to be against the state came into effect yesterday, in a move critics called “a totalitarian model of information control”.

The law comes into force a week after the Vietnam Journalists Association announced a new code of conduct on the use of social media by its members, forbidding reporters to post news, pictures and comments that “run counter to” the state.

According to a report on Straits Times, the new cyber-security law has received sharp criticism from the United States, the European Union and Internet freedom advocates who say it mimics China’s repressive censorship of the Internet.

The legislation requires Internet companies to remove content the government regards as “toxic”.

VNExpress, a local media reports, Tech giants such as Facebook and Google will also have to hand over user data if asked by the government, and open representative offices in Vietnam.

Read full article on Straits Times

Vietnam freezes Vietjet flight expansion after safety incidents

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Vietnam probe of faulty and emergency landings comes ahead of busy Tet holiday

Vietnamese authorities have halted Vietjet Aviation’s planned increase in flights following a series of aircraft safety incidents, putting the country’s largest budget airline under supervision as the Tet holiday season nears.

The Civil Aviation Authority of Vietnam said this week it will stop adding new flights to Vietjet’s operational schedule. CAAV also will re-evaluate Vietjet’s operations at four airports: Noi Bai in Hanoi, Danang International in central Vietnam, Tan Son Nhat in Ho Chi Minh City and Cam Ranh in the south-central region.

The authority did not specify the time needed for this supervision, but sources say it could last for a month since CAAV made the announcement on Tuesday.

CAAV’s move likely will affect Vietjet’s capacity expansion ahead of the Tet holiday in February, when many Vietnamese workers return to their hometown from big cities for a week around the Lunar New Year.

The agency also will suspend Vietjet executives in charge of operations, CAAV director Dinh Viet Thang said. The recent incidents constitute a “serious threat” to aviation safety, the authority said.

A Vietjet flight landed on an incorrect runway Tuesday at Cam Ranh International Airport. The aircraft reportedly departed at 11:14 a.m., then faced a “technical error” minutes later. It returned to Cam Ranh, but landed on a runway that was not ready for operations.

The incident represents a serious threat to flight safety, second only to aviation accidents in Vietnam’s classification of errors, CAAV says.

Earlier on Tuesday, another Vietjet flight headed to Ho Chi Minh City from Incheon, South Korea, made an emergency landing in Taipei because of “a technical warning in the cargo section.” The flight resumed after an examination reported no risk. The incident resulted from a false alarm, CAAV said.

A flight from Hanoi to Danang on Wednesday was forced to abort takeoff after accelerating on the runway. Passengers waited two hours before departing again.

On Nov. 29, the nose wheels of a Vietjet aircraft fell off minutes before it landed at Buon Ma Thuot Airport in Vietnam’s Central Highlands region. The aircraft was put into service two weeks before the incident. Results of an investigation into the incident are pending.

“The carrier has been in close coordination with related authorities to assess the incident and promptly support all affected passengers,” Vietjet said two days after the event.

Other incidents during Vietjet flights over the past few months caused planes to return to their airport shortly after takeoff. Initial reports typically cited false alarms tied to software installed in new aircraft delivered this year. Vietjet could not be reached for comment.

CAAV is working with Vietnamese airlines, whose fleets include the Airbus A321, for further examination of the new model. Airbus declined to comment. Vietjet’s fleet includes 60 Airbus A320 and A321 craft as of Sunday, part of the carrier’s total order of 371 aircraft from both Airbus and Boeing makers.

Vietnamese aviation has grown rapidly in the past decade, with passengers rising 12.9% this year to 106 million. This double-digit growth is expected to continue in 2019.

Local competition is intensifying, as startup Bamboo Airways recently secured an aviation license and a joint venture between AirAsia and Hanoi-based tourism business Thien Minh Group appears likely to enter the market next year, a Viet Capital Securities report says. Vietnamese airlines might face lower profits in the short and medium term.

Vietjet was granted a tax exemption for 2014 and 2015 when the company first made a profit. The carrier received a 50% tax reduction for the 2016-18 period, implying a tax rate of 10%. Its corporate tax rate will be 20% starting in 2019.

Failing to capitalize on the upcoming busy season could hamper Vietjet, which has snared 45% of the domestic market after just seven years in operation.

Vietjet shares closed at 122,000 dong on Wednesday, down 8% from Nov. 29, when Vietjet faced one of the most serious incidents this year as the nose wheels of an A321 fell off. Shares are trading at 122,000 dong in the morning session on Thursday.

(Nikkei)

Sweden to support Vietnam in training English

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The Vietnam’s Ministry of Education and Training and The Embassy of Sweden in Hanoi, Vietnam have signed an agreement to boost cooperation in teaching and learning English in higher education in the 2018-2020 period.

The agreement fouses on encouraging the cooperation and exchange of experiences in training English, promoting English proficiency evaluation and English improvement for teachers and students.

As per agreement, the Swedish Embassy will provide free practice tests in reading, listening and grammar; and free online training courses for local teachers as well as support the Ministry of Education and Training to develop English Training Skills Clubs at schools nationwide.

Since 2016, Educational institutions in Vietnam have been directed to implement English as a second language on campus, it has been announced, which could increase student mobility and international collaborations with the country.

The Minister of Education and Training, Phung Xuan Nha, has initially aimed this regulation at 61 universities, academies and colleges under the Ministry.

The regulation will ensure that lecturers at universities hold their meetings in English, with students also required to give presentations and discussions in English.

What is your plan for New Year’s Eve?

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There’s no law in Vietnam or any other country that says you have to go out, dress up or drink Champagne for the occasion. Here are tips by Nancy Dunham for a sweet celebration at home for both locals and expats.

Holiday shopping, wrapping, parties and more leave some of us too pooped to pop the cork on an extravagant New Year’s Eve celebration.

But that doesn’t mean your holiday has to be flat as yesterday’s bubbly. Consider these 10 ideas to make your holiday sparkle:

1. Dress down

While the partygoers often need to wear their evening best for New Year’s celebrations, you can dress way down. Some families and friends even turn New Year’s Eve into pajama parties. Think that sounds a bit too casual? Take a look at the past tips from Vogue magazine to spruce up your nightclothes so you enjoy the best of both fashion worlds. Or, if you aren’t entirely shopped out, maybe your family needs new matching pajamas for the occasion.

2. Unearth classic board games

Sure we have an array of technology at our fingertips, but what about giving a nod to the past this New Year’s Eve by breaking out board games such as Monopoly, Clue and other classics? Invite your guests to bring any board games they have, including long-time favorites such as Masterpiece or Parcheesi. Very old games such as Mystery Date are particularly fun to resurrect.

3. Wander down memory lane

Even the most hard-core tech lovers among us likely have a stash of honest-to-goodness photos, slides and other memorabilia. New Year’s Eve is a great time to gather all of those photos, yearbooks and keepsakes and go through them. Share them with family and friends, too. They are natural conversation starters and a lovely way to honor the past while looking toward the future.

4. Binge on TV shows

Always wanted to watch “Anarchy” but never found the time? Miss those old “Twilight Zone” episodes? Splurge and buy yourself the DVDs or an online television subscription (ask about free trials!) and enjoy. New Year’s Eve is a great night to take the plunge.

5. Skype with friends and family

Chances are you have plenty of friends you’d like to reconnect with but just haven’t had the time. Ask about their New Year’s Eve schedules. At least a few will be home and ready to chat online with you. It’s a great way to catch up with those you only stay in contact with by way of holiday cards.

6. Start the new year fresh

What better time to take down the holiday decorations, clean out the closets and do those other household tasks that you just never get around to starting? This might sound like drudgery to some — if that’s you, move right along — but to those who like organization and cleanliness, it’s a terrific way to literally get your house in order for the new year.

7. Take a course

Wouldn’t it be nice to start 2019 by launching into a new skill? There are plenty of fascinating online courses ranging from foreign language instruction to how to create the perfect apple pie. You’ll find many free courses on YouTube, including a series from Yale University. If you want more, peruse the selections at The Great Courses website or edX.org. Save money by looking at free videos on topics before you buy.

8. Enjoy your favorite comfort food

Most of us have a favorite comfort food in which we rarely indulge — macaroni and cheese, noodle soup, even cocoa with marshmallows. That’s because many of us dine out frequently, are watching our weight or just don’t want to go to the trouble. New Year’s Eve is a great time to get out that recipe and indulge in your favorite forgotten treat.

9. Take a run

Most of us believe we’ll start running or other activities after the holiday season has ended. Why wait? Put on your winter running attire and start now. If it’s too snowy or icy for you to venture out, watch exercise DVDs or stream free exercise programs — there are plenty out there!

10. Baby-sit

You may not be in the mood to go out, but what about your friends and family members? Some of them would love to have a night on the town but don’t have the energy or means to hire a baby,sitter. Offer to pitch in. Not only will you enjoy watching the holiday through a child’s eyes but lending a hand is a great way to start the new year.

What is your plan for New Year’s Eve? Thinking of changing it up? Share with us on our Facebook page.

Prediction for the future of 4.0 jobs in Vietnam

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As Industry 4.0 takes hold, one leading labour expert has predicted how the workforce of the future will be divided.

Employment expert Lê Quang Trung, believes the highest proportion of people in the workforce will be in personal services and sales (31.62 per cent) followed by workers in manual job (26.5 per cent) then skilled craftsmen (12.47 per cent) and technical workers (12.42 per cent next year.

Trung, Deputy Director of the Employment Department, at the Ministry of Labour, Invalids and Social Affairs (MoLISA) was speaking at an online discussion organised by the Government Portal (chinhphu.vn) in Hanoi on Friday.

He said recruitment plan for 2019 would continue to increase.

Answering online questions, Trung said with the positive shift of the economy, Việt Nam’s was forecast to continue growing in 2019. The labour market would be shifted with high-skilled workers replacing simple labourers, meaning quality would improve.

According to the trend of Industry 4.0, some industries with great demand, (including technology) are developing at high speed, increasing the demand for staff.

But jobs such as printing technician, machinery assemblers and operators, irrigation engineers, construction engineers, food processors will be difficult to fill.

At the discussion “Labour and employment in the context of the Fourth Industrial Revolution”, Trung said with the general development of the country’s economy, the labour market had been developing towards modernisation and market orientation.

“The legal framework, and labour market policies have been gradually improved,” he said.

“As a result, labourers’ income and wages improved, labour productivity and competitiveness of the workforce also increased.”

Thanks to the implementation of new policies and mechanisms promoting job creation and market development, the MoLISA reported as of September 2018, the unemployment rate at urban areas was 3.1 per cent (against the target of below 4 per cent proposed by socio-economic development plan).

The proportion of workers in the agriculture-forestry-fishery sector decreased from 50 per cent in 2010 to 38.3 per cent in 2018.

However, labour market in Vietnam still has challenges, according to Lê Quang Trung.

Labourers mainly work in agricultural areas with low productivity. Basically, Việt Nam is still a market with a surplus of agricultural and rural labourers.

The low job quality has reflected on the low productivity, the high rate of labourers working in vulnerable areas (56.5 per cent of labourers in the country is working in informal jobs).

With low income from employment, a large proportion of labourers do not have access to social insurance, unemployment insurance and occupational safety policy.

At present, only 29 per cent of the labour force in working-age is covered with compulsory social insurance.

The country has nearly 600,000 enterprises, of which 90 per cent are small-and-medium enterprises.

About 96 per cent of small-and medium enterprises are employing under 30 employees, 88 per cent employing less than 10 employees.

The production size of an enterprise was small and it was certain that its capacity was limited, as a result, the labour productivity, workers’ income was low, and their jobs were hardly sustainable, Trung said.

– VNS

Flights to Vietnam from Autralia for just $271

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Explore the Southeast Asian country during the dry season and avoid summer crowds.

As part of Flight Centre’s End of Year sale, fares to Vietnam have been cut all the way down to as low as $271 return.

This price is available on AirAsia flights from Perth, but you can also fly from Melbourne for $352 return, Gold Coast for $455 return or Sydney from $468.

By comparison, these flights to Ho Chi Minh City from Perth are less than it would cost to fly between Perth and Sydney during this time of year by about $50 a pop.

These fares are available for departures between 20 April and 10 June 2019, which is one of the best times to visit Vietnam because it’s before the hot and sticky summer months kick in and the opposite time of year to Vietnam’s rainy season meaning better chances for sunny days.

Checked bags, in-flight meals and entertainment aren’t included in the price but can be added on when booking.

To book: head over to Flight Centre – International.

3 dead, 79 missing after gas explosion rocks Russia high-rise

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At least three people have died after a suspected gas explosion caused a section of a high-rise apartment to collapse in the Russian city of Magnitogorsk in the southern Urals, local news agencies report. Russia news agencies, citing the Emergency Situations Ministry, early on December 31 reported that 48 apartments were damaged in the building where some 110 people lived.

Three people were killed and another 79 were unaccounted for after a gas explosion rocked a residential building in Russia on Monday, leaving hundreds without a home in freezing temperatures on New Year’s Eve.

An entire section of the 12-storey residential building collapsed when a gas explosion tore through the high-rise in the industrial city of Magnitogorsk nearly 1,700km east of Moscow in the Ural mountains.

“Three people have been pulled alive from the rubble and three are dead,” Boris Dubrovsky, governor of the Chelyabinsk region where the city is located, said in a statement.

Officials said that the fate of 79 people was unclear, with police working to locate their whereabouts.

National television broadcast footage of the mangled heaps of concrete as hundreds of rescue workers combed the debris in temperatures of minus 18 Celsius (minus 0.4 F).

In a sign of the seriousness of the situation, President Vladimir Putin ordered emergencies minister Yevgeny Zinichev and health minister Veronika Skvortsova to travel to Magnitogorsk to personally oversee the rescue operation.

The Soviet-era high-rise was built in 1973 and was home to around 1,100 people. The residents have been evacuated.

A total of 110 people were registered as residents of the affected section of the building, regional authorities said. Sixteen of them have been evacuated, and another 15 were not home at the time of the blast.

Source: AFP

Stable development predicted for property market in 2019

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Experts believe that following a stable year, the real estate market will continue to develop well, with no bubbles, in 2019.

Vu Van Phan, deputy director of the Housing and Real Estate Market Management Agency under the Ministry of Construction (MOC), said the real estate market in 2018 witnessed stable development with no major fluctuations. This could be seen in the stable number of transactions, decreased inventory levels, and stable prices.

The total value of real estate inventory by November 2018 had dropped to VND22.98 trillion, a decrease of VND105.57 trillion from the high peak in the first quarter of 2013.

However, he said land price increases may occur in some areas which have been programmed to develop into special economic zones or new urban areas with well developed infrastructure systems.

According to Stephen Wyatt from Jones Lang LaSalle, 150,000 apartments were completed in the first nine months of 2018 in HCM City, while the selling price increased by 4 percent only compared with the same period last year.

He predicted that the supply would be plentiful in 2019, with 40,000 apartments and 4,500 villas and houses to be launched into the market.

Meanwhile, Nguyen Vu Thien Diem, chair of Thien Minh Group, thinks the real estate market in 2019 will be flat. There are difficulties ahead, including the lack of land and the few medium-tier housing products.

Nguyen Tri Hieu, an economist, noted the foreign investment into the sector has increased in the last three years.

Investors from Singapore, Japan and South Korea have shown special interest in properties in central areas of the city and near subway stations. They partner with Vietnamese to develop projects to improve management.

Since many ‘bottlenecks’ in the legal framework have been cleared, Hieu believes that the real estate market will receive new investment flows in the time to come.

The State Bank of Vietnam (SBV) has tightened commercial banks’ lending to fund real estate projects. However, this will not affect the development of projects as investors now are seeking capital from many sources.

“Real estate developers are now undergoing restructuring to list their shares on the bourse and join hands with foreign investment funds to develop projects. So, there is no need to worry that the capital flow to the real estate sector will get stuck once commercial banks cut loans,” Hieu said.

Source: VNN