Eight out of the 13 Vietnamese teenagers who disappeared from a county council’s care more than a year ago are still at large, police have confirmed.
The group absconded after they were discovered in the back of a lorry in Corby, Northamptonshire, in June 2017, having entered the UK illegally. BBC reports.
A year after police issued an appeal, only five of the young people, aged between 15 and 18, have been located.
Northamptonshire County Council said it was “very concerned” for their welfare.
A spokesman for the authority said: “There are particular concerns about these young people due to the circumstances of their arrival, given the fact that we had very little time to assess their needs when they came into our care before they went missing.”
According to BBC, The three girls and 10 males were looked after by Northamptonshire social services after they were found in the lorry on a Corby industrial estate on 17 June, 2017.
They then disappeared “one after the other” from accommodation in Northampton and Corby where they had been safeguarded, police added.
Eight boys remain at large after leaving properties separately in June, July and September 2017.
Police have not commented on whether the youngsters were trafficked or entered the UK of their own free will.
The eight teenagers left Northamptonshire County Council care in June, July and September 2017 | @ NORTHAMPTONSHIRE POLICE
The teenagers, who are all missing from addresses in Northampton, are:
Quang Dang Le, 16, 5ft 5in (1.65m)
Ha Van Le, 18, 5ft 7in (1.70m)
Ha Van Nguyen, 17, 5ft 6in (1.66m)
Trong Nguyen, 17, 5ft 4in (1.62m)
Binh Van Hoang, 18
Khoa Anh Yu, 15
Lihn Van Nguyen, 16
Quang Trong Nguyen, 17, 5ft 1in (1.55m)
A male passenger was caught carrying illegal weapons at Tân Sơn Nhất International Airport in HCM City on Tuesday.
Airport customs officers found three handguns, two daggers and a pair of handcuffs hidden in the luggage of the passenger, who hails from the southern province of Long An.
The 48-year-old man arrived on flight NH833 from the US to Vietnam via Tokyo (Japan).
The Tân Sơn Nhất customs office is coordinating with relevant agencies to investigate the case.
Vietnam’s South Korean football coach Park Hang-seo has been voted one of the four Asians of the Year by the Asia Journalist Association. He was honored in the society and culture category for his contribution to Vietnamese football this year.
Egyptian thoracic surgeon Magdi Habib Yacoub was also chosen in the society and culture category, Uzbek President Shavkat Mirziyoyev in the politics category and LG Group’s late former chairman Koo Bon-moo in the economy category.
“Those people were selected after final deliberation by the AJA leaders and each country’s representatives’ evaluation,” Ashraf Dali, president of the AJA, said. “I send my greatest respect to those selected.”
Park was named among South Korea’s 12 “Persons of the Year” by the Journalists Association of Korea earlier this month for his contributions to Vietnamese football and for raising South Korea’s profile in Vietnam.
Park, 59, became the head coach of the Vietnamese senior and U23 football teams in November last year and just two months later helped the latter to the runner-up spot at the AFC U23 Championship for the first time ever.
In August this year he led Vietnam to the semi-finals of the Asian Games for the first time in history. The team finished fourth.
His latest success came earlier this month when the national team won the AFF Championship by beating Malaysia 3-2 in the two-legged finals. It was the country’s second AFF victory after the first in 2008.
Park is preparing the team for the 2019 AFC Asian Cup next month, where they face Iran, Iraq and Yemen in the group stage.
Three students were killed in a laboratory blast at a Beijing university on Wednesday, the city’s fire department said.
“There was an explosion at the experimental site during a scientific research experiment” on wastewater treatment in the Environmental Engineering Laboratory, the Beijing Fire Department said.
“The accident caused three students to die,” it added in a statement posted on its social media account.
The incident happened just after 9:30am (0130 GMT) at the Beijing Jiaotong University in the western part of the city.
Some 30 fire engines were sent to the scene, and took nearly an hour to get the blaze under control. Local authorities are launching an investigation into the cause of the incident.
Vietnamese enterprises began 149 new projects overseas in 2018 with capital of $376.1 million.
Vietnamese companies kicked off 149 new projects overseas in 2018, with total capital of $376.1 million, according to the latest report from the Ministry of Planning and Investment (MPI) released on December 24.
Thirty-five existing projects also added capital, totaling $56 million. New and additional capital therefore stood at $432.1 million for the year.
Banking and finance ranked first, with total new and additional capital of 105.7 million, accounting for 24.4 per cent of the total. The wholesale and retail industry ranked second, with $82.9 million, or 19.1 per cent, followed by agriculture, forestry, and fisheries, with $52.3 million, or 12.1 per cent, and processing and manufacturing with $50.9 million, or 14.2 per cent.
Thirty-eight countries and territories received investment from Vietnam, led by Laos with $81.5 million, or 18.8 per cent of total. Australia ranked second, with $55.5 million, or 12.8 per cent, followed by the US with $52.9 million, or 12.2 per cent, then Cambodia, Slovakia, and Cuba.
Overseas investment over the last 30 years has helped Vietnam strengthen international economic cooperation. Vietnamese companies have also had the opportunity to expand their products in foreign markets in the context of a saturated local market and avoid trade protection barriers in recipient countries.
Outward investment will continue to increase strongly in the future, according to local analysts, and relevant agencies need to strengthen administrative procedure reform for such investment, increasing the autonomy and self-responsibility of investors. Agencies also need to enhance investment promotion, strengthen support and consultation, and provide useful information on FDI activities.
Close cooperation with the governments of host countries also needs to be improved upon, in regard to information exchange, policy and mechanism building, and the effective exploitation of resources to create a transparent and stable investment and business environment. Periodic and non-periodic contacts between the government and Vietnamese entrepreneurs and businesses and Vietnamese embassies, consulates, and overseas missions need to be processed more quickly, while any pressing issues must be promptly and effectively dealt with.
Miss Vietnam H’hen Niê, who is a Miss Universe top 5 finisher, decided to donate all of her prize money valued at 1,000,000,000 VND (approx. US $43,000) for social activities
“The perfect woman doesn’t exist” is a reply that those with, by comparison, exceptionally high standards are intimately familiar with, but what’s wrong with wanting a partner who’s as generous, caring, and charitable as they are beautiful? Good things come to those that wait because it looks like the perfect woman has finally arrived.
H’hen Niê, a Miss Universe Top 5 finisher, caught the attention of bachelors across the globe as graced headlines with her wholesome backstory, distinct look, and winning mindset while climbing over racist remarks hurled at her by other competitors. She’s an impressive lady, but that only scratches the surface.
According to the official Miss Universe Instagram page, H’hen Niê “decided to donate 100% of her prize for social activities. She wants to complete her promise with her village to provide scholarships for poor students and complete her social project, Room to Read (build more libraries in rural areas, support schoolgirls around the world). Such an amazing act of her.”
Anyone familiar with H’hen knows she isn’t a stranger to making hefty donations. Earlier this year, she used money won from Vietnam’s national pageant to open a library in the countryside in the hopes it’ll help the local children learn how to read. The Epoch Times reports
Judging by a post made last week, she doesn’t have any intention of slowing down her mission to give back to those in need.
I highly appreciate the sponsors accompanying me in the community projects. Especially, when I came back from Miss Universe 2018, I could feel deeply your love. With the prize award valued at 1,000,000,000 VND [approx. $43,000] from: Nam A Bank, VIFON, Unicorp, Doi Dep…. It is the highest amount of money I got so far. However, my mom said that in case I didn’t have to earn it hard, I should give this money to others.
Her mother must be so proud of her daughter’s amazing attitude and gracefulness when faced with controversy. Best of luck to H’hen in her next competition where she will, undoubtedly, make her mother, and country, proud.
Vietnam and DPR Korea played to a 1-1 draw in their friendly at the My Dinh Stadium in Hanoi on Tuesday.
The teams are preparing for the AFC Asian Cup UAE 2019 and the match allowed the coaches of both teams to have an indepth look at their respective sides before the Continental showpiece kicks off on January 5.
Vietnam, fresh from winning the 2018 AFF Championship, took the lead in the 54th minute through Nguyen Tien Linh.
DPR Korea, however, fought back to equalise through Jong Il-Gwan in the 81st minute.
Vietnam, who will be appearing in the AFC Asian Cup for the first time since they co-hosted the 2007 edition, are in Group D along with three-time champions Islamic Republic of Iran, Iraq and Yemen.
Park Hang-seo’s side will be confident of their chances as Vietnam have enjoyed a successful 2018. Besides winning the 2018 AFF Cup, the Golden Dragons finished runners-up in the 2018 AFC U23 Championship and fourth in the 2018 Asian Games Indonesia.
DPR Korea will also be on a mission as they are determined to advance to the knockout stage of the AFC Asian Cup UAE 2019 after having been eliminated at the group stage in the last two editions.
Kim Yong-jun’s side will play in Group E with Saudi Arabia, Qatar and Lebanon.
A total of 152 Vietnamese out of 153 who arrived with tour groups in Kaohsiung last week have gone missing, the Tourism Bureau confirmed Tuesday.
The four groups flew into the southern Taiwanese city on December 21 and 23 respectively, but on Tuesday, the Taiwanese travel agency handling them told the Tourism Bureau that it was unable to locate 152 of the 153 travelers, the Central News Agency reported.
As a result, the bureau told the Ministry of Foreign Affairs it had decided to stop applications for group visas from Vietnam, one of the countries Taiwan has targeted with its New Southbound Policy aimed to foster closer ties and attract more tourists.
The visa applications were made under a special program launched in 2015 which included simplified visa procedures it at least five people traveled together. Under the program, the participating visitors did not need to supply evidence of their financial situation, CNA reported.
According to CNA, over the past three years, an estimated total of 150 visitors disappeared, but this time, 152 travelers from Vietnam went missing in one go.
With world GDP growth initially predicted to peak at 3.1 per cent in 2018, the year looked to hold much economic promise for Vietnam.
This held true initially, with first quarter real GDP expanding by almost 7.4 per cent, boosted by strong export growth in manufacturing and agriculture. The service sector also saw robust growth in domestic demand and tourism. But global conditions became more worrying and uncertain as the year progressed, particularly with the continued structural slowdown in China and threat of a US–China trade war.
In the short term, changes in the supply chain away from China benefit Vietnam, provided there is sufficient dynamism in the domestic private sector to respond to rapid increases in external demand. For instance, it seems that Foxconn — the world’s biggest electronics contract manufacturer and a key Apple supplier — is trying to set up a Vietnamese base. Other manufacturers are reportedly doing the same.
The long-term impacts are much less certain though, with major powers moving away from the rules-based global trading system that has benefitted smaller open economies like Vietnam.
Despite these challenges, the Vietnamese economy continued to show resilience overall. GDP growth is estimated to be sitting at around 6.8 per cent, inflation at 4 per cent and the current account is projected to stay in surplus at 2.2 per cent of GDP. Real wages grew by 3.2 per cent in the first half of 2018 and the reported unemployment rate remained at 2.2 per cent.
The Vietnamese dong depreciated against the US dollar by 2.7 per cent but is constrained against further depreciation because of Vietnam’s relatively high level of public debt (around 45 per cent) denominated in US dollars. As a result, Vietnam’s real effective exchange rate actually appreciated by an estimated 2.5 per cent. Vietnam needs to focus on lowering trade costs to remain competitive in the medium term.
Credit growth in the second half of 2018 moderated to around 17 per cent, compared to 19.5 per cent in the same period last year. But the overall credit-to-GDP ratio remains high at over 130 per cent.
The growth in public debt is being contained by a combination of state asset sales and tighter fiscal policy. But Vietnam still needs substantial investment in infrastructure and energy generation. For this to happen the government must involve the domestic private sector and encourage its development through structural reform.
Vietnam seems to have slipped behind reform in other countries and has fallen in the World Bank ‘Ease of Doing Business’ rankings from 68 to 69 (of 190 economies).
One promising trade development this year was Vietnam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in November. This is an important step for Vietnam as the CPTPP involves a significant reduction in tariff and non-tariff measures (NTMs) for participating countries.
According to World Bank analysis, the average trade weighted tariffs for Vietnamese exporters to CPTPP markets will fall from 1.7 percent to 0.2 percent and NTMs are expected to decline by 3.6 percentage points on average in ad-valorem tariff-equivalent terms. By 2030, this translates into estimated additional GDP growth of 1.1 per cent. The sectors that will reap the largest benefits are food, beverages and tobacco, clothing and leather, textiles, some manufacturing, and services.
The CPTPP’s rules of origin are likely to encourage investment and development of upstream industries and extend backward linkages to Vietnamese industries currently constrained by inefficient state-owned enterprises (SOEs). Reaping these benefits will require government policies that promote competition and reform of inefficient SOEs. Behind-the-border issues such as customs reform are also needed to reduce the costs of clearing and moving goods.
After a strong performance in 2017, Vietnam’s economy has continued to stay strong. The external buffer of international reserves is being managed through healthy export performance and foreign direct investment inflows. The internal buffer of public finance is being managed via more rapid privatisation of SOEs as well as gradual reforms of tax and expenditure systems.
But the challenges and risks are mounting and the government needs to continue with more ambitious reforms, including of the fiscal, public administration and higher education systems. If not, Vietnam will struggle to meet the significant infrastructure, energy and skills needs that are required to keep the country on a rapid growth path before its population begins to age in the next two decades.
Suiwah Leung is an Honorary Associate Professor of Economics at the Crawford School of Public Policy, The Australian National University.
This article is part of an EAF special feature series on 2018 in review and the year ahead.
A Vietnamese woman, who holds a Hong Kong identity card has been caught by HongKong’s police with a suitcase containing 7.3 kilograms of heroin on Saturday.
She told police that she was not aware of the bag’s contents and was only delivering it to someone. The police operation found compressed plates of heroin worth US$651,100 concealed in the bottom of a suitcase she was carrying. Atimes.com reported
She is in police custody after being intercepted in the city’s Tuen Mun district on Saturday with a suitcase containing 7.3 kilograms of heroin worth about HK$5.1 million (US$651,100).
Police stopped the 42-year-old in a street in the district and arrested her for drug trafficking, but she insisted she was only “helping a friend to deliver the suitcase” and was unaware of its content.
Police mounted the operation after receiving information from an undercover officer. The focus of the investigation by the narcotics bureau was to find out if the woman was paid and manipulated by a cartel to carry the drugs as well as to trace the source of the heroin intercepted.
Police mounted the operation after receiving information from an undercover officer and arrested a Vietnamese woman in Tun Mun district for drug trafficking. Photo: Google Maps
The Apple Daily cited a source as saying that the woman was lured by a hefty five-digit payment to deliver the case to another middleman. A police anti-narcotics superintendent told the media that the heroin was in compressed plate-like form and concealed inside a false compartment at the bottom of the suitcase.
He also warned that with the festive season now in full swing and black market demand on the rise, drug dealers are looking for people who need cash to deliver bags or cases. He appealed to members of the public to stay alert and avoid breaching the law.
We begin with Kim Jong Un, the leader of North Korea, and Moon Jae-in, South Korea’s president, holding hands back in April.
They crossed the northern side of the border of the Demilitarized Zone between the two nations.
Kim was the first North Korean leader to set foot in South Korea since the end of fighting in the Korean War in 1953.
This shot was taken by the Inter-Korean Summit Press Corps.
Mark Zuckerberg, Facebook’s CEO
Facebook seemed to go from one crisis to another in 2018. The drop in the company’s share price meant Mark Zuckerberg’s fortune took a big hit this year.
And the CEO faced a grilling from the House Energy and Commerce Committee in Washington in April, when @dcdrewphoto took this portrait.
Jack Ma, The Executive Chairman of Alibaba
China’s richest man heralded the end of an era this year. Jack Ma outlined plans to hand over the executive chairman role at Alibaba, something that’s due to happen next September.
He intends to focus on philanthropy and education but also pursue “new dreams” that haven’t yet been specified.
The billionaire was photographed by @tomoohsumi.
Black Hornet Personal Reconnaissance System drone
This is a Black Hornet Personal Reconnaissance System drone.
Militaries all over the world are looking at ways to incorporate similar technology into their operations. Devices in the pipeline range from monster spy planes to small, battery-powered quadcopters that can fly through underground tunnels without GPS.
@luke_macgregor_photography’s shot was taken at an exercise in southern England.
Pedestrian and vehicle recognition system in Beijing, China
China has made artificial intelligence technology an important strategic goal, because of its potential military and intelligence applications.
@gillessabrie took this photo during a demonstration of SenseTime Group’s pedestrian and vehicle recognition system in Beijing.
You can see how people and objects can be instantly identified by the technology. It’s another of our most striking images of 2018.
Crew Dragon spacecraft of SpaceX
You’re looking at a model of the Crew Dragon spacecraft at SpaceX headquarters in California.
NASA astronauts will be the first to fly on the American-made commercial spacecraft to and from the International Space Station, on a mission scheduled for April.
@patrickfallon took this shot, which is another of our most memorable images of 2018.
Demonstrators with a “Trump Baby” blimp in London
Donald Trump’s visit to Britain in July was met by tens of thousands of demonstrators with a “Trump Baby” blimp.
Protesters expressed outrage at the U.S. president’s views on issues ranging from climate change and immigration to chlorinated chicken.
@luke_macgregor_photography took this shot in London.
Vladimir Putin
Vladimir Putin won re-election as Russia’s president in a landslide in March, despite the fact that he barely campaigned.
@andrey_rudakov’s photo is another of our best of 2018, and it shows panels rotating on an election campaign billboard in Moscow.
In Vietnam, Christmas is not a public holiday, but it has been received much recognition from the local residents.
From the beginning of December, Hanoi’s streets are all decorated with Noel’s patterns that create a festive environment helping any expats off being homesick in the night of Christmas. Hanoi’s weather also supports the day which is often cold and dry; the only missing factor for a perfect Noel is snow.
If you are in Hanoi this week, integrating with its festive environment, you can totally have fun for Christmas. Here are our suggestions to the best place to go for Christmas in the capital of Vietnam:
Church
Praying in church is an indispensible for any Christian believer in the night of Christmas. Luckily, there are many churches around Hanoi in which ones may enjoy a wide variety of religious activities as well as hymns singing and other music performance. Among the churches around Hanoi, Saint Joseph Cathedral (40 Nha Trung Street, Hoan Kiem) should be the most magnificent and famous one. Besides, ones may visit Ham Long Church (21 Ham Long Street, Hoan Kiem) or Cua Bac Church (56 Phan Dinh Phung, Ba Dinh).
Thousands of locals & expats flocked to the streets and churches to join Christmas Eve celebrations. | Photo credit: NDO
Hang Ma Street
Located in the heart of Hanoi’s Old Quarter, Hang Ma Street always catches up with the trend by selling ornaments in special events like International Children’s Day, Mid-Autumn Festival, New Year Eve, Tet Holiday and Christmas. Anything you need to decorate your Christmas tree as well as gifts and greeting cards can easily be found here with low prices.
Making full use of your trip to walk around Hanoi’s Old Quarter should be a good idea since it may remind you of your hometown with Christmas Trees being put up in front of restaurants; snowmen made from cotton near Ice-cream shops or numbers of Santa and his reindeers on sides of clothe stores. It’s not weird if you see one or two Santa driving motorbike instead of the reindeers on streets because they are actually gifts delivers.
Christmas in Hang Ma Street, Hanoi, Vietnam | Image source: Pinterest
Music shows and parties
On the night of Christmas or the night before, there are many fantastic music shows of many genres such as pop-ballad; classic or jazz occurring in Hanoi, especially the outside area of Hanoi Opera House and the inside as well. The themes of those shows are no doubt about Christmas.
Additionally, international organizations and universities and embassies usually organize Christmas party to welcome their native civilians and ones with the same interest to join and cheer up for the night.
Hanoi opera house
Shopping malls
Because there is no Black Friday in Hanoi, Noel and New Year Eve are good chances for shopping malls launching their biggest promotional campaign of the year which shocking sale off and hundreds of new arrivals. Trang Tien Plaza, Vincom Plaza Tower, Ruby Plaza and Garden Mall are the most remarkable shopping centers in Hanoi. Don’t miss this golden opportunity to pick up one or two most trendy pieces of fashion.
Trang Tien Plaza, Hanoi
Hotels dinner buffet
Christmas is when high-star hotels in Hanoi offer the most luxury buffet party and hilarious music performance. Standing out among the hotels should be Sofitel Metropole Hanoi where 1001 fairy tales are reproduced in one night in its La Beaulieu and Spices Garden restaurant. Artists wearing Aladdin, Snow White or Peter Pan costume will entertain you with special art shows while tasting excellent international foods. The price is USD 75 for an adult, USD 46 for children aging 9-12 and USD 33 for kid from 3-8.
Red bean Restaurant in Hanoi
With a lower price range, from USD 20-40, tourists can still enjoy a luxury Christmas night at Hilton Hanoi Opera, Melia Hanoi or Hanoi Daewoo.
The HCMC Center for Flood Control Program has proposed building seven anti-flood reservoirs with Japanese cross-wave technology, for total costs of VND475 billion. However, some experts doubt the reservoirs will help.
The seven reservoir complexes would have a capacity of 1,500-20,000 cubic meters in the districts of Go Vap, Binh Thanh, Phu Nhuan, Tan Binh and 10.
An anti-flood reservoir with cross-wave technology on Vo Van Ngan Road was built by Sekisui Company from Japan as part of a pilot program. The 109 cubic meter reservoir has the function of mitigating floods on the street. It is buried deep underground and installed with cross-wave modules.
The outstanding advantage of the reservoir cross-wave materials is the high mechanical durability, and ease of implementation of construction and installation. When the city no longer needs the reservoirs any longer, the cross-wave modules can be taken away for other construction works.
An official of the anti-flooding center said the solution can be applied in small and narrow areas with water storage capacity of over 90 percent and friendly to the environment. When it rains, the rainwater can be naturally absorbed into the earth, or stored for reuse.
Cross-wave reservoirs can be placed in many different areas, under stadiums, parks, schools or parking lots. The solution is applicable to cities with limited public land like HCMC.
Ho Long Phi, Director of the Center for Water Resources Management and Climate Change, said he believes that building reservoirs is just a supporting solution, and that HCMC needs a master solution which includes construction of water drainage sewers and tide control sluices.
Under the water drainage program, called Program 752 approved by the PM in 2001, HCMC will build more than 6,000 kilometers of sewers by 2020.
Do Tan Long from the Anti-flood Control Center, HCMC, has prioritized construction and improvement of drainage sewers. These include a project on dredging and upgrading Tham Luong – Ben Cat – Nuoc Len Canal, and a project on building eight tide control culverts.
Some experts recommended heightening the road beds to hasten drainage.
However, Nguyen Trong Dan, a member of the Vietnam Society for Hydraulic Association, said this is an unreasonable solution. The higher roads will block the water drainage of lower areas which will cause residential quarters to suffer more heavily from floods.
Hoa said that reservoirs with small capacity will have no significance if they have a small capacity. They will be useful when they have a large capacity, from tens to hundreds of thousand cubic meters.
International Finance Corporation (IFC), a member of the World Bank Group supported $100 million in funding to Vietnam’s Oriental Commercial Bank (OCB) for its lending program for small and medium-sized enterprises (SMEs) and women-owned enterprises.
“We are in negotiations with the IFC over loans, not only this mid and long-term facility but also a master cooperation agreement, including a short-term credit line, consultancy, and support programs on solutions for OCB to reach regional and international management standards faster,” Nguyen Dinh Tung , OCB’s CEO told media in a statement.
According to a report by Hung Cao on VNEconomictimes, OCB was just one of many Vietnam’s banks securing foreign loans over the past year. Commercial banks are now borrowing capital from foreign banks or international financial institutions when they need more medium and long-term capital. Struggling to attract domestic funds, many are rushing to seek foreign capital ahead of the State Bank of Vietnam (SBV)’s tightened policy on medium and long-term lending coming into force early next year and in the context that foreign ownership in Vietnamese banks is still restricted.
In a rush
In early September, the Saigon-Hanoi Joint Stock Commercial Bank (SHB) and the International Investment Bank (IIB) signed a five-year deal on the latter’s provision of $20 million in loans to the former to develop the latter’s infrastructure work in Vietnam and the import-export activities of goods from IIB member countries. The two sides will also share information and experience in enhancing operational efficiency and management capacity. On the same day, a framework sponsorship contract between the International Bank for Economic Cooperation (IBEC) and SHB was also signed, with an initial value of $22.7 million.
A few days prior, the Vietnam Postal Union Joint Stock Bank (LienVietPostBank) signed a contract with JP Morgan Chase Bank N.A. Singapore, which will provide it with a $50-million loan with a three-year term. The bank also received another three-year syndicated loan worth $50 million, in May, from eight Taiwanese banks headed by Cathay United Bank. “The loans help the bank integrate more deeply into the international finance market,” said Ms. Nguyen Anh Van, Deputy CEO of LienVietPostBank. “It will also supplement its medium- and long-term foreign currency resources, improve its capital mobilization structure, and partly respond to local businesses’ demand for borrowing foreign currencies.”
In July, the IFC also provided a $100-million syndicated loan to the Tien Phong Joint Stock Bank (TPBank) after outlaying $17.3 million to acquire 5 per cent of its shares in 2016. The IFC-led financing package will help the bank further extend long-term funding to micro, small and medium-sized enterprises (MSMEs) and individual borrowers through digital delivery channels, according to TPBank.
Many other lending deals were reported in 2017, including the Vietnam Prosperity Joint Stock Bank (VPBank) borrowing $100 million from Deutsche Bank, $122 million from the IFC, and $41 million from Credit Suisse. The An Binh Commercial Joint Stock Bank (ABBank), meanwhile, received $150 million from the IFC, and the Vietnam International Joint Stock Bank (VIB Bank) secured a syndicated loan of $185 million from the IFC and three foreign banks.
Even the State-owned VietinBank has borrowed capital from foreign banks, signing a contract in June last year for a $100 million loan from eight financial institutions. A year before that, it borrowed $200 million from 18 foreign banks.
Mobilizing funds from overseas can help banks tap into wider foreign and, usually, lower cost funding sources. “Many Vietnamese banks have been upgraded by international rating agencies such as Moody’s and Fitch recently,” said Ms. Nguyen Thi Thuy Anh, Research Analyst at the Viet Dragon Securities Corporation (VDSC). “The positive ratings, according to Fitch, consider the enhanced operating environment of Vietnam’s banking system, with improved economic policies. Authorities promote a stable and predictable macroeconomic environment, and we believe this contributes significantly to Vietnamese banks’ chances of coming to loan facility deals with international financial organizations.”
Lending in turn
Funding from international financial organizations is used by Vietnamese banks for lending that has strong socioeconomic benefits, including boosting financial inclusion and improving access to credit for the country’s SMEs, according to Ms. Rebaca Tan, an Analyst with Moody’s Investors Service. “While foreign loans increase banks’ reliance on market funds, we view the credit lines provided by international financial institutions like the IFC and the Asian Development Bank (ADB) as stable and helping to improve banks’ asset liability profile,” she said. “Further, Vietnamese banks seeking loans need to comply with certain financial covenants and improving financial transparency is also key in getting these loans, which are both credit positives.”
The fact that some international financial organizations are funding local banks reinforces the latter’s reputation, creditworthiness, and position not only in Vietnam but also in global markets, according to Ms. Thuy Anh. “Cross-border loans might also support the development objectives of international financial organizations and local banks’ strategies, especially those focusing on the retail and SME segments.”
For example, a loan of $185 million was provided to VIB by the IFC in 2017 to serve the unmet borrowing needs of SMEs and households, she noted. For SMEs, long-term funding is becoming more important since Vietnam wants to become a manufacturing and trade center in Southeast Asia. According to VIB, the loan facility provided by the IFC is expected to double the loan portfolio for this segment in the next five years.
In recent years, LienVietPostBank has made structural movements into retail banking. “The bank has now reached 60 per cent in the density of retail revenue per total mobilized capital and 50 per cent in lending,” said Ms. Van. “We will continue moving strongly towards the retail model, ensuring a density of retail per total mobilized capital of around 80 per cent.”
Similarly, if the loan contract between the IFC and OCB is signed, “the facility will be used for retail and SMEs’ credit lines in order to develop the private sector,” Mr. Tung from OCB said. “It will also help affirm the bank’s reputation in approaching new capital resources from new markets and investors for its long-term development.”
Generally, overseas borrowings can help banks enhance liquidity and provide flexibility within their capital structures. The goal is to satisfy regulations on improving the ratio of short-term fund used for long-term lending, and banks can retain earnings or issue long-term bonds. Funds borrowed from international financial organizations is also one way to mobilize long term, which supplements mid and long-term funding.
Major pressure
Local banks have been in a rush to seek cross-border borrowings to meet the Capital Adequacy Ratio (CAR) under Basel II standards, according to Mr. Nguyen Hong Khanh, Head of Analysis and Research at the Vietnam International Securities Company (VIS). “Under Basel II standards, applied as a pilot at the ten largest Vietnamese banks, in order to meet a CAR of under 8 per cent, banks must find funding, especially ‘Tier-1 Capital’,” he said. “Upgrading owners’ equity from 1.5 times to double within one or two years would put major pressure on local banks, especially the larger ones. This would require Vietnam extend the foreign ownership limit in State-owned banks. As at the end of the third quarter of this year, charter capital in listed banks had increased 17 per cent and is expected to grow 10-15 per cent in the time to come.”
Meanwhile, Ms. Tan from Moody’s said longer-term funding helps banks meet the SBV’s regulations on asset liability management, which requires they lower the maximum ratio of short-term funding for loans longer than 12 months to 40 per cent of total short-term funding by 2019, from 60 per cent in 2016. “We expect Basel II capital rules to shave 150-220 basis points off banks’ capital ratios,” she said. “The current limit on foreign ownership will pose a challenge in raising new equity capital, especially for banks that are close to the limit.”
Moreover, the ratio of short-term funds used for long-term lending under Circular No. 16/2018/TT-NHNN was to be reduced to 45 per cent by January 2018 and 40 per cent by January 2019. Interest rates on long-term mobilized capital has increased suddenly over the last two months, revealing rising demand among local banks for capital sources.
Ms. Thuy Anh from VDSC said that borrowing banks need to deal with exchange rate fluctuations. The negotiation process and procedures may also take long as there is often no precedent for local banks. In addition, the fact that there are different laws in each country and different regulatory requirements could also slow down the implementation of cross-border financial transactions.
International capital flows have now tended to run to State-owned banks in Vietnam, while some developing commercial banks are also in need of capital mobilized from overseas, according to Mr. Khanh from VIS. However, in order to mobilize funds successfully, local banks are required to prove that their operational capacity and development potential meet the high expectations of international investors. “The main purpose of the government in the future is to build two or three large banks that are among the top in Asia, so local banks in the years to come will certainly need more foreign capital to boost their capital raising roadmap,” he said.
Even after changes, the Ministry of Health’s draft law on the prevention and control of alcohol-related harms still draws varied responses from stakeholders. Nguyen Van Viet, chairman of the Vietnam Beer-Alcohol-Beverage Association, discussed with VIR’s Bich Thuy the methods which could harmonise the benefits of all parties involved.
While companies raised objections against the draft law because it might harm their business, many international health organisations supported it as the strongest legal tool for the country to fulfil its sustainable development commitments. Where does the Vietnam Beer-Alcohol-Beverage Association (VBA) stand?
We welcome the recommendations from the World Health Organization (WHO) and the Ministry of Health’s (MoH) aim to protect people’s health via the draft law. However, some of the arguments by representatives of WHO Vietnam and other international organisations are not persuasive. Statistics from international organisations used as reference are being used as official figures in the draft law. The statistics should instead be based on the Vietnamese government’s General Statistics Office and the Vietnamese Ministry of Industry and Trade.
The VBA and our members completely agree with reasonable regulations. However, there are some regulations that could negatively impact not only the beverage industry but also tourism and other sectors, while possibly causing losses to the state budget.
First, we do not agree with the name of the draft law because it could cause negative impacts on business activities. Our preferred wording is either the “Law on Control of Alcohol” or the “Law on Prevention and Control of Harms of Alcohol Abuse.”
No other country in the world has a law to prevent and fight against wine, spirits and beer in this way. A few countries have similar laws, but with different names based on simple wording, such as the law on control of alcohol.
What is more, wine, beer and spirits are part of each country’s culture. It is an important part of traditional and political parties. We believe the draft law seems to go against tradition.
We also have issues regarding regulations on the time, location, and ways to sell beer, wine, and spirits as well as advertising. For example, the draft law proposes a ban on selling beers, wines, and spirits from 10 PM to 6 AM. This will not help the country reduce consumption, but may cause negative impacts on the development of the beverage and tourism industries.
Beer, wine, and spirits are not a conditional business. Thus, the ban on selling the products on the Internet is not in line with investment laws and goes against trade trends within Industry 4.0. This can prevent buyers from buying genuine products, while leading to a rise in smuggling and difficulties in tax collection.
Domestic and international experts have said that the harmful use of alcohol not only damages people’s health, but also greatly diminishes the economic, social, and development prospects of Vietnam. Should businesses not be willing to give up a small part of their ambitions for the sake of the community?
First, we should reaffirm the necessity of building the draft law, as the country right now already has too many legal documents covering production, sales, and consumption of beer, wine, and spirits.
Businesses do not need to give up their benefits if we have a law harmonising the benefits of the business community, the government, and our citizens by having reasonable regulations on
management, production, business, food safety, and the responsible use of these products. Many developed countries such as Russia, South Korea, Germany, and Japan, where far more alcohol is consumed than in Vietnam, have strong economies and also a stable and healthy society, despite this consumption.
At present, beer, wine, and spirits are subject to many kinds of taxes in this country, including a special consumption tax of 65 per cent, 10 per cent value added tax, corporate income tax, environment tax, and more.
Despite recent changes, the draft law still fails to satisfy all the stakeholders. What are your suggestions to help the draft harmonise the benefits for all, as you stated?
We do hope that the draft law would have feasible regulations to facilitate our member companies’ activities, while protecting people’s health and ensuring the benefits of the government. The fact is that this is a very difficult task as the MoH has designs on health protection, while other stakeholders and VBA members have economic preferences.
To control the consumption of these types of alcohol, we have many measures available. One example is the requirement of a credit card, or identification card. In this way, only people aged 18 and older can own this type of card and therefore have access to the products.
The draft law should tighten control over the thorny issue of homemade wine and low-quality wine products which seriously harms people’s health, so as to achieve the target of eradicating unlicensed home-made wine production by early 2023.
Recent cases of wine poisoning have all been caused by low-quality methanol containing wine. According to the MoH, only 15 per cent of homemade breweries, and nearly 50 per cent of the volume of homemade wine sold are licensed.
