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Non-profit schools on the rise

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Despite early concerns about its feasibility, non-profit education is gaining ground in Vietnam with both foreign and domestic investors flocking to the burgeoning sector.

It is evident that non-profit education went through a rough start in Vietnam as non-profit institutions were widely misunderstood by the public. The term, admittedly, remains fairly unheard of until this day, even as non-profit schools have only been in Vietnam for less than 20 years and the majority of educational institutions are wholly subsidised by the state. In the late 20th century, many parents and regulators regarded non-profit education in Vietnam as “impossible and unfathomable.”

Most of the confusion stems from the concept itself – many Vietnamese mistakenly thought that non-profit schools were not supposed to make any money at all, or that they operate as charity organisations. The examples below will show that this is far from the truth.

In developed countries such as the US, the UK, Germany or South Korea and Japan, non-profit education has always been a familiar concept thanks to the great number of high-quality institutions that are strictly non-profit. For example, prestigious universities such as Harvard, Yale, Stanford (US), Keio (Japan), and Yonsei (Korea) or medical schools Mayo Clinic, Cleveland Clinic, and John Hopkins Medicine (US) are all non-profit organisations.

While for-profit schools act like corporations and prioritise profit, non-profit universities place the emphasis on the providing the best study environment for students. All profit is re-invested in the schools’ facilities and curricula instead of being paid out in dividends to shareholders. Thanks to the constant investments, the quality of education and research at these non-profit schools improves year after year, helping them attract even bigger endowments from individuals and organisations.

Harvard University, for example, earned a profit of $998 million in the 2016 financial year. Besides tuition fees, the school made money from its subsidiaries Harvard Management Company and Harvard Business Publishing. The latter focuses on selling case studies for schools, businesses or other organisations. Thanks to its business activities, the total assets under management by Harvard University are worth $44.6 billion (June 30, 2016).

Other well-known schools such as Yale or Stanford also frequently receive huge endowments from various individuals or organisations. The schools’ board uses these funds to provide financial aid for students and increase the number of scholarships. These universities also have a sustainable business strategy to make sure that their quality of education and research is not affected by monetary losses.

THE WAVE OF NON-PROFIT INVESTMENT

Despite misconceptions, non-profit investors still took the lead in the Vietnamese education sector, striving to meet the higher training requirements of employers, parents, and students. As the young generation of Vietnamese go for tertiary education and their parents enjoy higher disposable income, opportunities are growing for non-profit educators. Between 2010 and 2013 alone, the number of universities and colleges in Vietnam grew by 6.5 per cent per year, while the number of students grew by 6.1 per cent.

The pioneers in Vietnam’s non-profit education were international schools and private institutions run by local groups, such as FPT Corporation. Many non-profit schools have earned strong reputation thanks to their international curriculum and the high employability of graduates. For example, the United Nations International School is widely known as the number-one school system in Hanoi, providing world-class education for well-to-do families and expatriates.

RMIT University Vietnam, the first international tertiary institution in Vietnam, also made a name for itself after more than 15 years of operation in the country. The average tuition fee for an undergraduate programme at RMIT Vietnam is between VND500 million and VND700 million ($21,700 and $30,400). RMIT’s annual profit margin is 5.5 per cent.

NEW PLAYERS COME TO THE PICTURE

In recent years, the non-profit education sector in Vietnam has welcomed a new competitor in Vinschool. Owned by the Vingroup conglomerate, Vinschool aspires to represent Vietnamese non-profit educators against a throng of international rivals. According to Le Khac Hiep, deputy chairman of Vingroup, right from the start, Vinschool has been designed as a programme for Vietnam’s social and educational development.

As a result, 100 per cent of the profits made by Vinschool are re-invested, which is double the threshold required by Vietnamese laws. In 2015, Vinschool made VND514 billion ($22.35 million) of revenue, taking up 1.5 per cent of Vingroup’s total revenue. This initial success has motivated the school to switch its entire system to non-profit operations.

“Now Vietnam has world-class non-profit schools, and we believe that this is one way to improve its standing in the world,” said Hiep. Since September 2016, Vinschool’s network of 10 campuses and 13,000 students has operated in the non-profit direction.

The non-profit business model is doing wonders for Vinschool, and Vingroup broke ground on its first tertiary institution called VinUni in Hanoi last week. The new campus spans an area of 23 hectares, including a ten-storey main building, dormitories, a sports hall, and other areas.

The strategic partners of VinUni are Cornell University and University of Pennsylvania from the US. The university is expected to start enrolment in 2020. Similar to other schools in the Vinschool system, VinUni will be a non-profit institution reaching international education standards.

Hiep said that the conglomerate hopes that Vinschool and VinUni students will gain access to international curricula taught by professors and industry experts from around the world. The ultimate goal is to nurture the next generation of skilled employees for the Vietnamese economy.

“Vingroup’s road to non-profit education is not a lonely one due to the large number of existing schools in Vietnam, and we see ourselves as latecomers to this exciting scene. To bring international education to future Vietnamese generations, we will strive to create breakthroughs and offer students the most advanced technologies one can provide in education,” said Hiep.

Phuong Oanh report on VIR

Will Samsung set up a third smartphone facility in Vietnam?

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If a third Samsung facility is built, Vietnam will be involved more deeply in Samsung’s huge supply chain, according to Nguyen Van Toan, deputy chair of the Vietnam Association of Foreign Invested Enterprises (VAFIEs).

Thelec quoted its sources as reporting that Samsung would set up another smartphone plant in Vietnam.

This would be its third smartphone production facility if the plan is implemented. It reportedly would replace plants in China that will stop operation.

The plant may focus on making low-cost and medium-range products for South East Asian, South Korea and India.

“This is really good news for Vietnam,” said Toan. He said it was very difficult to predict where Samsung would place its third plant.

The investment expansion by a giant like Samsung will bring big benefits. Most importantly, analysts see the possibility of Vietnamese enterprises taking part more deeply in Samsung’s supply chain.

“The increase of one or a few percent of Vietnamese enterprises’ presence in the chain would also be significant,” Toan said.

Vietnamese enterprises have been criticized for their low production capability and have not been able to join multinational corporations’ supply chains.

However, analysts said that Vietnamese enterprises’ capability has improved considerably thanks to their great efforts and Samsung’s goodwill.

Vietnam now has 29 companies which are first-class vendors to Samsung. It had only four in 2014. The figure is expected to rise to 50 by 2020.

Nikkei media said that companies, after exploiting technology transferred by Samsung, would be able to join other industries and form local supply chains.

However, Toan said, though the number of first- and second-class vendors has increased, Vietnamese enterprises still cannot approach high technologies.

Meanwhile, Chinese manufacturers can master and develop new technologies very rapidly which allows them to create ‘made-in-China’ products competitive with foreign products.

The expert in FDI said that Vietnamese enterprises have no other choice than to upgrade and take full advantage of Samsung’s training to develop. In addition, they must have enough capital to buy technologies.

“Vietnamese enterprises need to master technologies and upgrade them regularly,” he said.

Samsung has invested $17 billion in Vietnam, and its factories in the country have generated 160,000 jobs.

In related news, a foreign newspaper quoted You Seung-min from Samsung Securities as saying that North Korea may replace Vietnam to become a major smartphone and screen production base.

A representative of Samsung Vietnam declined to ‘comment about rumors and personal predictions’.

According to a report on Vietnamnet

November 20: VN-Index up 0.32%

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HNX-Index and UPCoM lose ground.

Trade had become more positive as the stock market neared its close on November 20, though results were mixed.

On HSX, the VN-Index finished at 919.02 points, up 2.96 points (0.32 per cent), and the VN30-Index 893.09 points, up 14.32 points (1.64 per cent).

On HNX, the HNX-Index closed at 103.91 points, down 0.04 points (0.04 per cent), while the HNX30-Index gained 186.38 points, up 0.07 points (0.04 per cent), and the UPCoM-Index lost 52.06 points, down 0.34 points (0.65 per cent).

Liquidity on HSX was VND2.7 trillion ($115.7 million) and on HNX was VND436.6 billion ($18.7 million).

Food and beverage stocks to gain ground included BBC, VCF and VNM, by 3.1, 2 and 1 per cent, as TLG lost 5.5 per cent, TAC 1.7 per cent, KDC 1.6 per cent, BHN 1.5 per cent, and SAB 0.8 per cent.

In banking, BID gained 3.3 per cent, MBB 1 per cent, MSN 0.5 per cent, VCB and STB 0.4 per cent, and CTG and TPB 0.2 per cent, as VCI lost 5.4 per cent, VPB 4.3 per cent, BVH 4.1 per cent, and SSI 0.7 per cent. EIB and TCB closed at their opening price.

In energy, CTG gained 0.7 per cent and VPB 0.5 per cent as VCI lost 2.4 per cent, MBB 0.9 per cent, STB 0.8 per cent, and VCB and TCB 0.4 per cent. MSN, EIB and TPB closed at their opening price.

The Top 5 shares bought by foreign investors were HPG, GMD, VNM, SBT and AST.

VIC was the largest net sold share on HSX, followed by VFG, VCB, AAA and VRE.

VCG was the largest net sold share on HNX, followed by VGC, TV2, CEO and SHB.

On UPCoM, foreign investors bought 276,689 shares worth VND1.86 billion ($79,765).

They net sold on HSX by VND78.54 billion ($3.3 million) and on HNX by VND6.2 billion ($265,880).

Huyen Thanh report on Vneconomictimes

Foreign brands sell well in luxury furniture market

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The Vietnamese luxury furniture market is worth $2.5 billion, with 80 percent of products from Europe and 20 percent domestically made.

In October 2018, Philippe Starck, the legendary French designer, the owner of the works being exhibited at prestigious arts museums around the world, visited Vietnam to survey the market.

His three collections of furniture, MyWorld, Prive and Volage, were displayed at Cassina by Starck in the Saigon Times Square building in HCMC. The price of one sofa in Starck’s collection was VND400 million or higher. With original design, the products sold very well.

“The wealthy class and upstarts have been developing vigorously in Vietnam, creating a high-end market segment which was unclear in the past,” said Ly Quy Trung, CEO of AKA Furniture Group. “So, it is not a surprise that a lot of international luxury furniture brands have jumped into the Vietnamese market.”

The Vietnam Chamber of Commerce & Industry (VCCI) estimates that the domestic high-end wooden furniture market is valued at $2.5 billion with 80 percent of products from Europe.

Meanwhile, a market report by Concetti showed that the market has been growing rapidly in the last three years. Paolo Lemma, Italian Trade Counsellor in Vietnam, predicted that with the vigorous development of the real estate market, the demand for furniture will continue to increase.

Sharing the same view, Huynh Van Hanh, deputy chair of Hawa (Handicraft and Wood Industry Association of HCMC), said the domestic market grew by 8 percent in the last seven years.

With a population of 90 million, woodwork consumption in 2017 was estimated at $3.2 billion, while the figure is expected to reach $4 billion this year. Of this, demand from new construction works, thanks to the domestic property market, is about 40 percent.

Many high-end international brands, including Cassina, Badari Lighting, Cantori, Diemme Cucine, Formitalia, Officina Luce, Sicis and Versace Home, arrived in Vietnam this year.

Trung commented that it is the foreign luxury brands which have helped the domestic luxury market take shape and develop rapidly. They also have helped domestic brands become more familiar to Vietnamese consumers.

Hanh also said Vietnamese wooden furniture manufacturers now are exploiting the domestic market with a wide range of products, from low-cost to high-end.

Nha Xinh, a Vietnamese brand, is now targeting the high-end market segment where there are many famous international brands.

Two Nha Xinh showrooms will open in Hanoi with the floor area of thousands of square meters.

Hawa said it plans to organize Vifa Home Style, an important event for furniture manufacturers, in May 2019.

According to a report on Vietnamnet

False alarm on Vietjet flight leaves passengers praying for their lives

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Panic erupted on a passenger flight of Vietnamese airline Vietjet on Monday when an alarm sounded minutes after take-off from an airport in Ho Chi Minh City, forcing it to return to the airport for a check.

Vietjet flight number VJ198 departed at 7:05 pm on Monday from Tan Son Nhat International Airport in Ho Chi Minh City to head for Noi Bai International Airport in Hanoi.

Ten minutes after take-off, alarms on the plane were triggered, giving warnings of a technical problem, a representative of the budget carrier said the same day.

The flight captain made a swift decision to bring the plane back to Tan Son Nhat for a check and asked passengers to get into a brace position to prepare for rough landing.

The announcement plunged hundreds of passengers on the packed flight into panic, as a video captured by one of the passengers showed people praying for their lives during the turbulent event.

Data retrieved from plane-tracking site Flightradar24 shows the Vietjet aircraft reaching 11,000 feet, or over 3,300 meters, before alarms sounded.

The crew had to circle Tan Son Nhat for around 30 minutes at 5,000 feet (1,500 meters) before they could safely land at 8:06 pm.

According to the Vietjet representative, a thorough check was performed afterward and found no technical issue with the plane, which is an Airbus A320.

The narrow-body jet was registered under flag carrier Vietnam Airlines and has been loaned to Vietjet since May 2013, according to documents acquired by Tuoi Tre(Youth) newspaper.

Engineers have concluded it was a false alarm that was triggered mid-flight, and the plane has resumed its regular service, Vietjet said in a statement.

Meanwhile, passengers on the VJ198 flight were put on another plane to continue their journey to Hanoi with a short delay.

Last month, a Vietjet plane en route from Hanoi to Busan, South Korea was also forced to make an emergency landing in Hong Kong after a false alarm went off.

Source: Tuoitrenews

False alarm on Vietjet flight leaves passengers praying for their lives

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Vietjet flight number VJ198 departed at 7:05 pm on Monday from Tan Son Nhat International Airport in Ho Chi Minh City to head for Noi Bai International Airport in Hanoi.

Ten minutes after take-off, alarms on the plane were triggered, giving warnings of a technical problem, a representative of the budget carrier said the same day.

The flight captain made a swift decision to bring the plane back to Tan Son Nhat for a check and asked passengers to get into a brace position to prepare for rough landing.

The announcement plunged hundreds of passengers on the packed flight into panic, as a video captured by one of the passengers showed people praying for their lives during the turbulent event.

Data retrieved from plane-tracking site Flightradar24 shows the Vietjet aircraft reaching 11,000 feet, or over 3,300 meters, before alarms sounded.

The crew had to circle Tan Son Nhat for around 30 minutes at 5,000 feet (1,500 meters) before they could safely land at 8:06 pm.

According to the Vietjet representative, a thorough check was performed afterward and found no technical issue with the plane, which is an Airbus A320.

The narrow-body jet was registered under flag carrier Vietnam Airlines and has been loaned to Vietjet since May 2013, according to documents acquired by Tuoi Tre (Youth) newspaper.

Engineers have concluded it was a false alarm that was triggered mid-flight, and the plane has resumed its regular service, Vietjet said in a statement.

Meanwhile, passengers on the VJ198 flight were put on another plane to continue their journey to Hanoi with a short delay.

Last month, a Vietjet plane en route from Hanoi to Busan, South Korea was also forced to make an emergency landing in Hong Kong after a false alarm went off.

According to a report on Tuoi Tre

Police interview monkey killer

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The man is Dinh Van Tam from Ngam Village, Song Pe Commune, Bac Yen District.

A representative from the commune said on November 19 that Tam recently published the photos and clip about the killing on his Facebook.

Tam was ordered to come to the local police station on November 16.

The clip, which showed that Tam felt quite excited to kill the monkey, went viral on the social network, upsetting many people who thought it was a cruel and inhumane action.

After facing strong public opposition, Tam removed the content about the case.

According to Lawyer Quach Thanh Luc from Hanoi Lawyers’ Association, Dinh Van Tam could be fined from VND50-500 million (USD2,272-22,727).

In 2016, a 24-year old man in Quynh Lap Commune, Nghe An Province, was also summoned by the police following publishing the killing of a monkey for ‘medicinal’ reasons.

After landslides kill at least 13, Vietnam faces new tropical threat

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On the heels of deadly Tropical Storm Toraji, a budding tropical storm will bring a renewed risk of flooding and mudslides to Vietnam later this week.

On Sunday, at least 13 people are dead and four others remain missing after landslides destroyed several homes and buried victims in some villages in the resort city of Nha Trang.

Torrential rain from Toraji is being blamed for triggering the landslides.

According to preliminary weather data, nearly 380 mm (15 inches) of rain inundated Nha Trang over the course of 18 hours ending early Sunday afternoon, local time.

As cleanup and recovery efforts continue, residents are being put on alert for a new tropical danger later this week.

The tropical depression unloading heavy rain on the Philippines early this week is expected to slam into southern Vietnam at the end of the week.

“The warm waters of the South China Sea will cause the depression to strengthen into a strong tropical storm or minimal typhoon before it reaches Vietnam,” according to AccuWeather Senior Meteorologist Dave Houk.

The next tropical storm in the western Pacific Ocean will be named Man-yi.

As the storm strengthens, seas will build and become dangerous for boaters and swimmers across the South China Sea.

The storm is expected to make landfall between Qui Nhon and Vung Tau during the time frame from Friday afternoon to early Saturday (local time). Nha Trang lies within this corridor.

The storm can produce strong winds capable of causing tree damage, power outages and damage to weak structures in the vicinity of where it makes landfall. Coastal flooding can also occur near and north of where the storm moves onshore.

“The greatest danger from the storm will be flooding and mudslides as there can be an AccuWeather Local StormMax™ of 450 mm (18 inches) of rain in southern Vietnam,” Houk said.

The recent inundation from Toraji has made the region more susceptible to such dangers.

Residents living in areas prone to flooding or landslides should prepare for potential evacuations and heed all warnings from local officials.

Roads and bridges may get damaged by the landslides or raging rivers or streams. That can cut off some remote communities, preventing them from receiving aid or supplies via vehicles after the storm.

While the storm may lose its wind intensity as it pushes farther inland, flooding rain may still press into eastern Cambodia early in the weekend.

The danger can then spread to north-central Vietnam and China’s Hainan Island later in the weekend and early next week.

Read full article on AccuWeather

VinFast – Vietnamese first automaker debuts new cars and motorbike

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VinFast officially launched its Sedan LUX A2.0 and SUV LUX SA2.0 in Hanoi on Tuesday and be ready to take orders for new vehicles, offering special incentives for the first customers.

Meanwhile, there is another launching ceremony in Saigon, includes a number of special activities in the upcoming days. The two vehicles were awarded “A Star is Born” from the AUTOBEST organization, which recognizes automobiles available in the European market, at the Paris Motor Show 2018.

According to a report on VNS, the two models were developed based on designs selected by Vietnamese consumers, bringing the beauty of pride and luxury with graceful details reminiscent of the Vietnamese spirit.

VinFast also introduced its hatchback Fadil, which was developed by Karl Rocks of Opel – one of the oldest German car brands under a technology contract from General Motors (GM), and smart electric motorcycle Klara.

The Lux, Fadil and Klara vehicles are designed, customized for Vietnamese people as well as the climate and traffic in the country.

In Hanoi, the VinFast showroom at Thong Nhat Park, opened from 5pm-9pm on Monday and will be opened from 9am to 9pm on Tuesday. Meanwhile, in Saigon, a similar event will take place at Vinhomes Central Park from 4pm-10pm on November 25 and from 9am to 10pm on November 26.

Hundreds of children suffer food poisoning

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According to Dtinews, Health officers have revealed on November 19 that over 200 children tested positive with the Salmonella virus type 2 after they ate buffet and fell ill at Xuan Non Nursery School in Hanoi.

On November 15, many children at Xuan Non Nursery School developed diarrhoea, fever and abdominal cramps. Over the next 12 hours, 140 more children were admitted to hospital with similar symptoms. Two teachers were also poisoned.

Nguyen Thi Nga, head of Xuan Non Nursery School, said the children attended a buffet at school with sausage, beef, sticky rice, vegetables, orange juice, lemonade and cakes. The food was prepared by Bao Tan Company in Dong Anh Town.

Dong Anh District General Hospital received 96 children and Bac Thang Long Hospital received 46 children. Hanoi Department of Health asked Dong Da General Hospital to provide support. Two serious cases were transferred to the National Hospital of Tropical Diseases.

According to Tran Ngoc Tu, director of the Hanoi Food Safety and Hygiene Department, samples tested at the National Hospital of Tropical Diseases show that the children were suffering from the Salmonella virus type 2. This virus can cause intestinal infections and patients often have abdominal pains or diarrhoea. The patients are mostly infected through contaminated water or food.

“After three days, over 100 children are still being treated and monitored at Dong Anh District General Hospital, Bắc Thăng Long Hospital, Vietnam National Children’s Hospital and National Hospital of Tropical Diseases,” Tử said.

Source: Dtinews

Bad road conditions in Sapa still ignored

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The tourist town of Sapa’s image has been damaged by the poor quality of its roads.

For many years, people in Sapa have been living with badly maintained roads which are covered by dust on a sunny day, and slippery on rainy days.

Dien Bien Phu Street which is one of the main routes into the town is full of potholes, severely affecting traffic and sometimes causing traffic jams.

Ham Rong Street is a particular issue because of the potholes flooded with water after rains.

The road deterioration has been attributed to a large number of vehicles, including overloaded trucks going to the construction sites every day. It is estimated that 5,000 to 8,000 cars arrive in Sapa daily.

Bad roads have been seen in Sapa for years

It is easy to see construction sites spill on the streets, hindering traffic. Meanwhile, many sections of pavements have been dug for water and electricity repairs.

Thach Tu, a local resident, said that the issue has existed for a long time, but nothing has been done to improve it.

Sapa welcomed around 2.5 million visitors in 2017, surpassing the set target of 2 million by 2020. With this growth rate, the locality is expected to serve 4 million tourists in 2020 and e million in 2030.

However, the town needs to take measures to deal with challenges, including road quality, if the town is to benefit from sustainable tourism development in the long term.

Source: Dtinews

Hanoi hospital gives patients free haircuts, hair washing

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Nearly 300 in-patients at Bach Mai Hospital had their hair cut or washed free right on Saturday, as part of a patient-welfare activity that takes place every three months at the major infirmary in Hanoi.

The gratis service was given right in a meeting hall of Bach Mai, which averagely has 5,000-7,000 in-patients every day.

Many people who received the care looked quite happy as it was difficult for their hair to be trimmed or shampooed in the hospital and their disease prevented them from walking to a nearby salon.

Some had not washed their hair for around a month.

The hospital’s service started six months ago, when local barbers and hairdressers offered a chance for patient hair care.

The activity is to help patients feel happier so that they can recover more rapidly from illness, said Pham Thi Bich Man, head of the infirmary’s social welfare arm.

The service, provided every quarter, also was expected to draw the patients’ attention to personal hygiene because a dirty body increased the risk of bacterial infection, she added.

According to a report on Tuoi Tre

Composing songs and producing music videos to support Vietnam’s football team

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Viet Nam’s football team really is the pride of the nation and now supporters have an opportunity to really feel part of their success.

A competition has been launched to compose songs and produce music videos especially for the teams.

Organised by the Labourer newspaper and VSET Company, the contest has a total prize fund of VNĐ1.2 billion (US$52,170). Of which, the winner of the best song will get VNĐ300 million ($13,000), while the best video will be awarded VNĐ100 million ($4,350).

The competition will last until October next year. It aims to encourage Vietnamese team in the international events such as AFF Cup, Asian Cup and Southeast Asian Games.

The organising board will announce top songs and best videos each month and there are three live shows to perform them

According to a report on VNS

Pharmaceutical retail market heats up with big players

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That large retailers with strong financial strength and good governance joining the Vietnamese drugs distribution market is expected to drive the domestic pharmaceutical retail market forward in the coming time.

Conglomerate Vingroup last weekend officially entered the pharmaceutical retail segment, with a launch of its VinFa Pharmacy chain in Hanoi. VinFa’s first eleven stores have been opened at Vingroup’s VinMart + convenience stores in urban areas or apartment buildings.

With a series of locations in trade centers and large-scale urban areas, VinFa promises to become a heavy-weight competitor of other big retailers, such as Mobile World Group, FPT Retail, Nguyen Kim Group and Digiworld JSC (DGW), which have entered in the pharmaceutical retail market over the past year.

Mobile World Group late last year showed ambitions to break into the pharmaceuticals segment, acquiring Ho Chi Minh City-based Phuc An Khang pharmacy at a cost of VND1.2 trillion (US$110 million).

Meanwhile, FPT Retail also announced a resolution to establish FPT Long Chau Pharmaceutical JSC after buying the biggest drugstore chain in Ho Chi Minh City. This company has concentrated on pharmaceutical retail, medical equipment, cosmetics, and toiletry in specialized stores.

Besides domestic companies, the market also witnessed many mergers and acquisitions (M&A) deals of foreign investors in the pharmaceutical market. Adamed Group – a pharmaceutical and biotechnology company from Poland – spent US$50 million to acquire a 70 percent stake of Dat Vi Phu Pharmaceutical Co., Ltd., Taisho pharmaceutical from Japan spent US$97 million buying 24.4 percent of the shares in DHG Pharma, whereas Domesco Medical Import-Export JSC sold 51.69 percent of its shares to Abbott Laboratories (America).

Major changes ahead

The demand for pharmaceutical products in Vietnam has rapidly expanded, given by high economic growth, rising per capita income, and rising population.

Per capita spending on drugs in the market increased from US$9.85 in 2005 to US$22.25 in 2010 and nearly doubled to US$37.97 in 2015. The average annual growth of drug expenses was 14.6 percent in the 2010-2015 period and maintained an annual growth of at least 14 percent until 2025. Drug expense per capita is forecast to double to US$85 in 2020 and US$163 in 2025.

According to Business Monitor International (BMI) data, revenue of the Vietnamese pharmaceutical market was US$5.2 billion last year and which is forecast to reach US$7.7 billion in 2021.

The local pharmaceutical retail market is large but has yet to saw the emergence of a dominant player. The sector’s distribution is still in the hands of private pharmacies with no one seizing a market share of up to 20 percent. According to experts, this therefore inspired the retail giants to break in the market.

However, experts said that actual changes in the local drug distribution market are expected to take place over the next 5-10 years as this year is still a period of exploration and evaluating market approach for new players.

According to Phan Van Hieu, chairman of CVI Pharmaceutical and Cosmetics JSC, the pharmaceutical retail market is not an easy sector for even big distributors, explaining that the drug market has a lot of barriers and is different from other markets.

Sharing the same view, Mai Hai Ninh from thuocvasuckhoe.com drugstore chain, said the biggest risk for drug retailers is the lack of medical expertise as drug sales depend on prescriptions or just a patients’ declaration on their health status.

The pharmaceutical industry is a specific industry, so from managers and salespeople need to have strong medical knowledge, Ninh said, adding that training of medical staff requires 2-3 years.

According to a report on Hanoitimes

Da Nang considers a multi-billion dollar port

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By 2050, the 120-year-old Tien Sa Port, the largest deep-water port in Da Nang city, will serve merely as a service and tourism port, while Lien Chieu port, which is still on paper, would become an international port with a capacity of 46 million tons per annum.

Lien Chieu Port project, with total investment capital of VND32,861 billion, is scheduled to be implemented in three phases.

By 2022, the investment capital would be VND7.37 trillion, while the port would have a capacity of 5 million tons per annum. The figures would be 17 million tons per annum and VND7.8 trillion by 2030.

The port would be built with 30 percent of total capital from the state budget, while the remaining 70 percent would be sourced from Vietnamese and private foreign enterprises.

In late July, the project on expanding and upgrading Tien Sa Port in the second phase, capitalized at VND1.069 trillion, was completed. Prior to that, Da Nang Port JSC implemented the port expansion in the first phase, which cost VND2 trillion.

Tien Sa is capable of receiving general cargo ships with tonnage of up to 70,000 tons, container ships of up to 4,000 TEUs, and large passenger ships of up to 150,000 GT. It can handle 12 million tons of goods every year, serving as the largest port in the central region of Vietnam.

However, Da Nang authorities think that Tien Sa’s capacity is not high enough. With the current growth rate of 20 percent per annum, the volume of goods in Da Nang would rise to 10 million tons by 2020 and 30 million tons by 2030, which is beyond Tien Sa’s capacity.

Some analysts commented that it would be unreasonable to use Tien Sa for both cargo and tourism purposes. Cruise tourists are high-income earners who need high-quality services and will not accept to go underneath containers hung over their heads.

Building a new port for cargo transportation and turning the existing Tien Sa into a tourism port are being considered.

Ho Duy Diem, former head of the Da Nang Development Planning Committee, said that natural conditions and transportation characteristics are unfavorable for Lien Chieu port development.

The port is projected to be built at the foot of Hai Van Mountain. This is an area of shallow sea, big waves and strong winds, making it dangerous for vessels to bypass or stop.

The construction of the port would need huge capital of VND33 trillion for three phases of implementation. The State would have to spend VND3 trillion to build breakwaters and passages.

According to a report on Vietnamnet