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VDSC Weekly Market Recap: DGW, HDG, VGC, FPT, NVL, LTG, MPC, MWG

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The VNIndex down 1.76% to 898.19 points. Liquidity on HOSE remained relatively unchanged compared to the previous week, with an average VND2,501bn (USD108.7mn) of daily trading. Foreigners participated more in the trading activity, representing 14.4% of total trading. However, the turned net sellers divesting VND799.21bn (USD34.7mn).

Despite the investors’ risk-off stance most of the week, Friday’s rebound could help support a short-term uptrend. We expect to see higher liquidity next week and the VNIndex would reach 930-940.

As the trade disputes with the U.S. continues to impact China’s economic outlook, I wanted to take a look at how it may impact Vietnam’s exports to China. China’s growth report in October shows that Industrial Production held up pretty well, as it grew 5.9% YoY up from 5.8% in September. However, this is mostly due to front loading of exports before the US tariffs on USD200 billion goods rise from 10% to 25%.

China’s October consumption numbers came out earlier last week, and retail sales seem to be slowing. They reached their lowest point in 5 months.

Retail sales reflects consumers’ appetite for spending. Consumers may have started worrying that the trade war will impact on wage growth and job security. However, this might only be temporary as there seems to be progress in US-China negotiations. It might also be partly due to the delayed consumption demand fueled for the Singles’ Day sales festival on November 11, which a reached record numbers this year.

The slowdown in China’s retail sales doesn’t seem to have had an impact on consumers’ appetite for Vietnamese products. In the first 10 months of the year, the export to China increased 26.8% compare to last year, and represent 16.6% of total Vietnam’s export.

Smartphones export to China in the first 10 months soared 83.2% compared to the same period last year. China buys 17.4% of Vietnam’s total smartphones exports and only behind the EU’s USD11.3bn of smartphones import from Vietnam. However, China may very well overtake the EU as the largest importer of Vietnamese smartphones, as smartphone exports to the EU only grew 9.5% this year.

China imports 28.25% of Vietnam’s exports of electronics which includes hardware and components for manufacturing. Electronics export to China in the first 10 months increased 28.1% compared to the same period last year.

Top Stock Idea

Digiworld Corporation (HSX: DGW)

Market cap: USD41.82mn
Price : VND24,000
52w High : VND29,700
52w Low : VND18,450
Avg 30day Volume : 563,016
P/E : 9.6x
P/B : 1.3x

Catalyst:

· The stock is down by 19% from its June 2018 high of VND29,700.

· Strong sales growth in handsets distribution, mostly from sales of Xiaomi phones, resulted in 3Q18 revenue for this segment increasing 200% YoY. Xiaomi targets to grow its market share in Vietnam from 5% to 10% in 2019. In our view, this is doable as Xiaomi offers low-price, mass-market products and the company gives a lot of promotions to grow market share.

· 3Q18 office equipment’s revenue reached VND313bn, up 63% YoY thanks to new contracts with LG and Eaton.

· DGW is focusing on market expansion services (MES) for FMCG and healthcare products which have around 40% GPM. We think this is a good strategy because these segments require a lot of market knowledge, money and time to attract customers, therefore, manufacturer will need companies like DGW to conduct research market, marketing, sales and after sale services. In our view, FMCG and healthcare segments will become increasingly significant for DGW.

Valuation:

· Due to the recent market correction, and considering the company’s growth prospects, we feel the stock is now within BUY territory.

· Consensus EPS for 2019 is about VND4,270, which means the stock is trading at a forward PE of 5.7x vs. its average historic PE of 9.5x.

Risks:

· The contract with Xiaomi is a one-year contract and has to renew every March. However, the probability of Xiaomi not renewing the contract is very low.

Rong Viet Securities Equity Research Summary

Company Report

Ha Do Group (HSX: HDG) – (Initiation, ACCUMULATE, VND38,500, UPSIDE 20%)

· 3Q18 revenue was mainly driven by the handover of two real estate projects: Centrosa Garden in District 10 (VND400bn) and Hado Riverside in District 12 (VND250bn).

· The hydropower segment’s results hit by seasonality.

· The revenue and gross profit were VND187bn and VND93bn, respectively.

· 4Q18 is expected to be peak season for both residential and hydropower businesses, while the office and hotel segments should be stable. In term of revenue booking, HDG will finish the handover of the two-block Orchid in the fourth quarter, bringing revenue and net profit of VND2tn and VND330bn. Further, in 2018, HDG aims to generate 15% more of electricity output compared to 2017.

· The stock is trading at 33.x current EPS of VND2,349. Furthermore, at its current price, it is trading at ~1.3x P/B. Cash dividend is expected at VND500.

VIGLACERA CORPORATION – JSC (HNX: VGC) – (Update, BUY, VND21,000, UPSIDE 36%)

· 9M18 – Real estate stayed positive while building materials could be revamping

· Revenue and NPAT-MI came at VND6.374tn (-6% YoY) and VND461bn (-14% YoY), respectively. The combined gross profit thus decreased 9% YoY

· Residential property contributed 11% of profits. Industrial park recorded about 40 ha leased in 9M as a result of a high FDI level in the northern region.

· The MoC plans to withdraw the entire 54% stake in 2019.

· FY2019 outlook – Industrial park is a key driver, while VGC is expecting building materials to improve in view of restructuring.

· The stock is trading at 15.x current EPS of VND1,585. Furthermore, at its current price, it is trading at ~1.x P/B.

Analyst Pinboard

Review on 3Q18 Business Results of Listed Banks

The diversification of credit growth

· By the end of September, credit growth of the 14 listed banks was 11% YTD, implying that total credit growth of those banks in 3Q18 was approximately two percentage points.

· Due to the fact that its lending mostly depends on leading companies in the manufacturing, consumer, and aviation sectors, TCB’s credit growth sharply increased in 3Q18.

· Listed banks for which we collected data account for more than 50% of the lending market.

High growth in profit-before-tax

· PBT of these banks grew more than 28% YoY in 9M 2018. Excluding VPB, most banks fulfilled more than 75% of their PBT target for the year.

Regarding MBB and VPB, we believe that their provision expenses sharply increased due to their strategy to expand unsecured loans: MCredit to MBB and CommCredit to VPB, in 2018.
· Considering the average PBR, we find that the relative valuation of Vietnamese banks is not cheap compared to other banks in the region.

· The positive point is that when considering the movement of the ratio of market cap to deposit, we found that this rate dropped to a very low level compared to the average of the past 3 years.

FPT Corporation (HoSE: FPT): 9M Result Update – Growth on the back of the technology segment

· In 9M18, FPT posted a revenue of VND16.261tn (+21% YoY) and PBT of VND2.738tn (+33% Yoy). FPT has fulfilled 74% of revenue and 95% of PBT targets.

Technology

· Software exports: IT outsourcing remained the main revenue contributor and will still contribute the most for FPT’s technology revenues.

· On the other hand, the digital transformation segment is stepping up with a growth of 40% in revenue and more high-value customers.

Telecom

· This segment grew its revenues by 19% yoy and PBT by 35% yoy. For the upcoming years, the broadband industry will to grow at high a pace, so will this segment of FPT.

· Regarding the television service, IPTV is not yet near to the breakeven point.

Education

· This business generates VND941bn in revenue and VND296bn in PBT. Generally, FPT’s student increased by 50% to 36,300 at the moment.

Update on the construction and materials industry

· Construction and material is the sixth biggest industry in terms of market cap, worth VND146.21Tn.

3Q2018 Results Update: Lowest 3Q’s NPAT of the 2016-2018 period

· In 9M18, total revenue experienced a slight increase of 6.7% to VND154.272Tn, while net profit after tax (NPAT) was VND8.108tn, a sharp decrease of 24.1% compared to 9M17.

· In 3Q18, the construction and materials sector achieved a NPAT of VND2.869tn, dwindling by 8% QoQ and 17.5% YoY. NPAT went down to a low of VND 2,869bn in 3Q18.

· Among 19 industries, construction and materials is the one that saw NPAT decreased significantly in 9M18 (fell by 24.1% YoY).

Profitability ratios: ROE and ROA all through a tough period

· EPS fell by 8.6% YoY to VND1,535. Meanwhile, ROE finished 3Q2018 at 6.4%. Similarly, ROA dropped by nearly 1% to finish 3Q18 at 2.3%.

· The ROE of the construction and materials sectors recorded the second most substantial decrease of 2.6% following the fall of 5% in ROE of Telecommunications.

Update on Novaland

This year, NVL will only deliver 6,000 units to customers, compared with its plan of 6,700 units.
Project: NVL will only launch one project in late-2018.
NVL’s strategic plans is to expand its scale in the hospitality segment.
Debt increased by 25% during the year, of which short-term debt accounts for 44% of total debt.
In 9M18, revenues and net profits were VND6.7tn (+17% YoY)) and VND1.4tn (+4% YoY).
Residential – launching only one project in late-2018

· In 9M18, there was only one project launched, namely Victoria Village, resulting in total cumulative sales units of more than 25,000.

· Besides completed projects, there are 13 projects in total, which are expected to be launched soon.

Hospitality – New strategic segment

· Novaland continued to share its plans for this segment during the meeting.

· There are more than 3,000 condotel and villa units to be launched in early-2019.

Analyst’s view:

· The surge in debt over the last few years has put pressure on the company’s cash flow, as residential projects are delayed. The recent delay of two residential projects is not a positive signal. Novaland needs more aggressive ‘moves’ to prove its capabilities.

LTG – Results Update 3Q2018

· Revenue increased 12% YoY but profit declined 47% YoY in 3Q2018 due to G&A and interest expenses.

· General and administrative expenses increased significantly 50% YoY to VND75bn.

· Interest expense increased noticeably 60% YoY to VND45.8bn due to seasonal reason and a rising tide of short-term borrowing.

· We maintain our view that LTG depends on short-term debt to finance working capital, mainly for receivables and inventories.

· We remain concerned about the possibility of LTG completing its 2018 target: net revenue of VND9.876tn and PAT of VND589bn.

· We expect 4Q18, which usually has the best business results, helping LTG reach our net revenue forecast of VND9,147bn. We maintain an ACCUMULATE recommendation for LTG.

Minh Phu Seafood Corporation (UPCoM: MPC) – Extraordinary Shareholder Meeting: Getting Ready for a 25% World Market Share

· The extraordinary shareholder meeting of MPC on 10 Nov 2018 approved the following statements:

o Removing some inactive or non-core business lines

o Private placement of 75.72 million shares to increase charter capital from VND1.4tn to VND2.157tn.

o Project on a breaded shrimp factory with capacity of 40,000 tons/year in Hau Giang

o Cold storage project in the US

o Electing a member of the Board of Directors

o Establishing a R&D department for shrimp farming

o Annual ESOP program with maximum of 500,000 shares/year

o Allowing some shareholders who are the Chairman’s family to buy shares from other current shareholders without public bidding

· Ownership of strategic investors after the issuance would be 35.1%.

· We estimate the debt-to-equity ratio will fall from the current level of 67% to 51%.

· From shrimp farming, shrimp processing to exporting, the biggest problem of the company lies in the distribution.

· For the breaded shrimp factory project, the company will bring automation technology to reduce the cost of production compared to the traditional breaded shrimp products.

· MPC said that after deploying sensor technology successfully in its own farms, the technology will transfer to its associated farmers.

Analyst’s view

· Minh Phu’s farming and processing problems have been solved with the application of advanced technologies. Management expects the strategic partnership can help the company solve the final distribution problems. Business is increasingly focused on its shrimp farming and processing. Improving the financial structure will help the company grow both revenues and profits.

Mobile World Investment Corporation (HoSE: MWG ) – Optimizing Bach Hoa Xanh and seeking to compete with low-price electronics products

· In 9M18, MWG posted a revenue of VND 65,478 bn (+37% yoy) and net profit of VND 2.187 bn (+34% yoy).

· The company witnessed a slowdown in 3Q18 considering its revenue and net profit were only upped by 27% and 15% respectively YoY.

· Bach Hoa Xanh: In 3Q and especially September, MWG pushed up the upgrading process closed down a number of inefficient stores. We expect Bach Hoa Xanh to break even in 4Q18. However, the target of 500 stores in 2018 will not likely to be fulfilled.

· Dien May Xanh: The electronic device market (excluding phones) is still organically growing at a 20% pace YoY.

o Store expansion: MWG plans to have more than 900 Dien May Xanh stores from the current total of 737.

o Adjusting business model: MWG is planning to put online a ‘dual-price model’. There will be two different prices for the same product: one comes with full options while the other comes with cheaper price but no services.

· To sum up, we still have a positive view on MWG We keep a BUY recommendation with a target price of VND160,000 per share.

International media praises Vietnam’s crushing victory over Malaysia

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Vietnam’s national football team has grabbed the headlines of international media following its 2-0 triumph over Malaysia on November 16.

“Vietnam maintained their perfect start to the 2018 ASEAN Football Federation Championship on Friday as Park Hang-seo’s side beat Malaysia 2-0 at Hanoi’s My Dinh Stadium”, Reuters wrote.

In its article “Vietnam maintain perfect start with win over Malaysia”, Reuters highlighted contributions made Nguyen Cong Phuong and Nguyen Anh Duc. It said Phuong gave Vietnam a “flying start” when he clipped the ball home after Anh Duc’s miss-kick in the penalty area with 11 minutes on the clock. In the second half, Anh Duc scored one more goal to double Vietnam’s advantage.

Meanwhile, Malaysia’s New Strait Times described the Vietnamese team as “golden dragons”, who is now at World No.102, 67 steps higher than Malaysia’s position.

The newspaper’s article, titled “Harimau fall at Golden Dragons’ lair in Hanoi”, mentioned the vibrant atmosphere roared on by a 40,000 capacity crowd at the My Dinh Stadium.

The article said Malaysian goal-keeper Khairul Fahmi, who previously shut out Vietnam twice in the AFF Cup semi-finals in 2010 and 2014, could not protect his net from devilish shots of Phuong and Duc.

In its ratings given to players in the match, Fox Sports gave nine points to Nguyen Anh Duc thanks to his art of moving without the ball, and ability to look for opportunities. It said “On a day when his team really needed him, Nguyen Anh Duc delivered”. Meanwhile, Quang Hai who did a good job in midfield, and Cong Phuong, who opened the scoring in the 11th minute, were all marked 8.

In the Malaysian team, Shrel Fikri received lowest points. Despite 69 percent of ball possession, Fikri and his teammates could not shot a single goal. Fikri must have done better in his ability, Fox Sport said.

On November 8, Vietnam beat Laos 3-0 in its first match of Group A, with goals by Cong Phuong, Anh Duc and Nguyen Quang Hai. Meanwhile, Malaysia previously defeated Laos and Cambodia.

The AFF Suzuki Cup 2018 is taking place from November 8 to December 15 with 26 matches among 10 teams. Vietnam’s national football team is in Group A together with fellow South East Asian teams, Malaysia, Myanmar, Cambodia and Laos.

This year, the AFF Suzuki Cup will feature a new playing format, with both home and away ties. Vietnam will play Myanmar on November 20 and face Cambodia four days later.

Source: VNA

Meet the Vietnamese Families Living on Hanoi’s Train Street

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In the Old Quarter of Hanoi, a short walk from the landmark Hoan Kiem Lake, there is a street unlike any other you will ever see. Most people refer to it simply as Train Street. For the Hanoians who live along this slice of track, it is their home. It’s where kids play, laundry hangs, men shout and moms gossip as they hover over pots of steaming broth. It’s a normal Vietnamese community—well, almost.

A Day in the Vietnamese life

If you ignore the two steel tracks weaving a parallel arch through this neighborhood, you’d have a hard time distinguishing it from any of the dozens of other narrow alleys cutting jagged paths through the cement landscape of old Hanoi. Lush trees dangle over head, while uneven stones leave you staggering every couple of steps. Delicious aromas waft from kitchen windows, while smog hangs in the air and leaves a faint taste of exhaust on your tongue. Train street is just like many other similar streets throughout Vietnam.

Street life | © Scott Pocock/Culture Trip

| © Scott Pocock/ Culture Trip — Street life | © Scott Pocock/Culture Trip

Preparing food | © Scott Pocock/Culture Trip

Doing the washing up | © Scott Pocock/Culture Trip

Family time | © Scott Pocock/Culture Trip

A normal day | © Scott Pocock/Culture Trip

Weighing in | © Scott Pocock/Culture Trip

When the trains come

The trains come rumbling through twice a day, at 3:30pm and 7:30pm. There’s no warning siren, and certainly no wild panic as residents flee the oncoming behemoth. Rather, the community seems to operate on an internal clock of routines. As the time approaches, everything crowding the tracks just disappears into the tall homes and businesses lining the way. By the time the train actually arrives, there’s usually just a few curious foreigners left outside to brush noses with the iron beast.

the tracks are clear | © Scott Pocock/Culture Trip

Life goes on

Even during the hours when there’s a risk a train could fly around the corner any second, life still happens. The people living along Train Street still have errands and jobs to do. The tracks stay cleared, but the sides are tiny lanes for motorbikes and bicycles. They’re also an overflow area for when the kitchen runs out of space.

Motorbike track | © Scott Pocock/Culture Trip

Outdoor kitchen | © Scott Pocock/Culture Trip

Life must go on | © Scott Pocock/Culture Trip

And then comes the train

You can feel the tracks vibrating long before you see the train. It approaches in a low roar of screeching metal and blaring horns to shoo away the last few stragglers who’ve grown accustomed to the train and no longer fear it, or those moronic touristswho play chicken with the train for a bit of adrenaline. The train itself is long, painted blue and red. When it goes by, the train leaves gusts of smoke and dust. It’s a wild sensation to be on a tiny street next to a rumbling giant.

Here comes the train | © Scott Pocock/Culture Trip

Back to normal

And then, like water behind a boat, life spills back onto the tracks. The kids are let outside to play again, and watchful grandmas perch on their stools to keep an eye on the comings and goings of daily life. The people who live on Train Street have developed a harmonious coexistence with the dangers inherent to their community. Resilience is synonymous with Vietnamese, and this unique street is one of the best showcases.

Train Street, Ngõ 224 Lê Duẩn, Hanoi

The train disappears and street life returns | © Scott Pocock/Culture Trip

By Matthew Pike , The Culture Trip

November 16: VN-Index closes higher

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All main indexes gain ground on last day of week.

Investor sentiment was quite positive in the afternoon session on November 16, with banking stocks such as BID, CTG, VCB, ACB, MBB, VPB, HDB and TCB increasing strongly.

Securities and real estate and construction stocks also rose and petroleum, seafood, and textiles and garments attracted good cash flows.

After a strong period in the early afternoon, profit-taking pressure suddenly took hold from 2pm, which resulted in the index losing some of its gains. Garment stocks saw major profit-taking pressure.

Bluechips such as VHM, VRE, VIC, BHN, SAB and VCB lost ground and curbed momentum gained.

However, the efforts of ACB, CTG, BID, MBB, VPB, HDB, TCB and TPB gave much-needed support.

In oil and gas, GAS, PVS, PVD, PVB, BSR, OIL and POW had positive days, with GAS rising VND4,600 ($0.19) to VND95,000 ($4.07). Large caps such as MSN, BVH, FPT, HPG, VJC and MWG also rose.

At the close of trade, the VN-Index had increased 1.04 points (0.12 per cent) to 898.19 points, the HNX-Index 2 points (1.98 per cent) to 103.01 points, and the UPCoM-Index 0.72 points (1.41 per cent) to 51.97 points. Market liquidity improved significantly, with a matching order value of VND3.7 trillion ($158.7 million).

Foreigners continued to net sell overall, by more than VND120 billion ($5.1 million), but net sold on HSX and net bought HNX and UPCoM.

My Van report on Vneconomictimes

Metal-carrying motorbikes threaten traffic safety

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The traffic in Hanoi is being seriously threatened by motorbikes and home-made vehicles that carry long metal poles often used in construction.

Motorbikes carrying five to six metres long metal are not uncommon in Hanoi and can be seen anywhere since hiring a motorbike or transporting the metal bars individually is much cheaper than hiring a truck. Three-wheel vehicles are also used.

A transporter on La Thanh Street said mostly motorbikes were hired. Only when there is a larger number of products would they hire a truck.

Several accidents have occurred. In 2016, a primary pupil died after a collision with a three-wheel vehicle that was carrying several metal sheets.

A woman also died in 2016 after a similar accident in Hanoi. The motorbike driver used an additional cart to carry the sheets but the cart suddenly detached from the motorbike and killed the woman who was driving next to it.

Motorbikes are banned from carrying such long metal sheets and bars. They may face fines from VND200,000 (USD8) to VND400,000, however, in reality, many still flout the law. After the deadly accidents in 2016, the police in Hanoi had cracked down, but the drivers were willing to use alleyways to avoid police and metal store owners have continued to hire motorbikes.

Source: Dtinews

Nielsen: Modern stores winning over Vietnamese shoppers

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Local shoppers increasingly favor modern trade channels, latest Nielsen data finds.

2018 has been a year of unprecedented change in modern trade channels. Though traditional trade, including wet markets, still dominates in Vietnam, modern trade has gained impressive momentum, according to Nielsen’s latest “Global Shopper Trend” report.

The number of convenience stores has nearly quadrupled since 2012 and minimarts comprised the most store openings in first nine months of this year. Health/beauty and modern drug stores have also expanded quickly, doubling in the past two years. Because modern trade retailers continue to expand and invest in improving their stores to attract more shoppers, the future outlook of this channel is set to further accelerate.

According to Nielsen Retail Audit data, sales revenue of fast-moving consumer goods (FMCG) in modern trade channels in urban areas enjoyed double-digit growth of 11.3 per cent in the second quarter, outperforming traditional trade, which grew 1.6 per cent.

From the shopper’s perspective, the shifts in modern trade structure should bring a positive change because they now have more options. The report revealed that while Vietnamese shoppers reduced their visits to wet markets, they go to convenience stores, minimarts, personal care/drug stores, and traditional grocery stores more often. The number of shopping trips to these stores in 2018 was higher than in 2010.

“There are several factors driving this shift. Ease, economy and concern about health and wellness could be the key influencers of shoppers’ behavior,” said Mr. Gaurang Kotak, Head of Consumer Insights at Nielsen Vietnam.

“First of all, when urban shoppers have less time, work in crowded cities, face traffic congestion, and live further away from their workplace, they need convenient solutions and products that could help make their life easier. Secondly, with a major concern about the economy and high priority for saving, consumers have focused more on minimizing waste. By buying fewer items more frequently, they reduce the amount of perishables that are thrown away. In addition, rather than incur the cost of bulk buying, they manage cash flows by spending smaller amounts more often.”

“Thirdly, it comes as no surprise that health and wellness is a top-of-mind priority for consumers in Vietnam, given that it has been mentioned as important for a few years now. Todays’ shoppers find high-quality products or trusted brands in these stores.”

VN Economic Times

How To Travel From Ho Chi Minh City to Hanoi

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Vietnam is an ideal place for travellers to begin their first backpacking journey. Visitors who want to travel between the north and south can take intercity buses and trains that offer plenty of intermediary stops, making it easy to enjoy everything the country has to offer. Discover the best routes for travelling from Ho Chi Minh City to Hanoi.

Vietnam’s two largest cities are not only on opposite sides of the country, but each destination has a different vibe as well. Hanoi, the capital city, is located in the north and often referred to as a cultural hub. In the south, travellers will find Ho Chi Minh City, an urban centre with residents from around the globe. Here are several ways recommended by Piumi Rajapaksha (The Culture Trip‘s contributor) to travel between the two cities

Hanoi

Hanoi is home to about 7.6 million people and the second largest city in Vietnam by population. The city has been inhabited since 3000 BC and offers must-try dishes such as phở and bún chả. From Hanoi, travellers can easily access other provinces in the north, making the city an ideal base to explore northern Vietnam’s mountains and valleys. Nearby, travellers can explore Sapa’s rolling hills, Ninh Binh’s karst landscape and Hạ Long Bay’s grottoes or floating villages.

Floating fishing village, Halong Bay, Vietnam | © Don Mammoser / Alamy Stock Photo

Ho Chi Minh City

With a population of more than 8.5 million people, Ho Chi Minh City is known as the country’s multicultural and commercial hub, blending old and new throughout the city. French colonial architecture and Chinese pagodas sit alongside high-rise buildings, international restaurant chains and large shopping malls.

While Hanoi is the birthplace of many national dishes, Ho Chi Minh City features a variety of international dishes with local influences. For example, the bánh mì is of French origin and made from a baguette; the sandwich is typically stuffed with pâté, daikon, cucumbers, other veggies, herbs, quail eggs and fish balls or sausages. Travelling between Hanoi and Ho Chi Minh City will allow you to try each cities’ specialities and experience the different cultures.

Fly from Ho Chi Minh City to Hanoi

The quickest way to get from Ho Chi Minh City to Hanoi is by taking a flight. Travellers who book flights far enough in advance can often find $100 tickets; carriers such as Vietnam Airlines, VietJet and Jetstar have multiple flights per day. Each flight takes about two hours. While flying between each city saves visitors from taking a 30-hour bus ride, this option also means travellers will miss out on witnessing scenery along the way.

Travel from Ho Chi Minh City to Hanoi by train

If you aren’t strapped for time, then the Reunification Express (a term used for any train that travels along the North-South railway line) is an ideal means of getting from the south to the north. The 1,056-mile (1,700-kilometre) trip takes about 35 hours, which may sound like a long time to spend on a train. However, the trains are air-conditioned, come with reclining chairs or bunkbeds, clean toilets and dining areas.

The Reunification Express | © Kuruman / Flickr

The trains usually have five different sitting or sleeping options. Travellers who are not going the entire way often opt for a hard or soft seat. Hard seats are generally long, wooden benches that are on either side of the carriage, while soft seats are similar to those travellers will find on buses.

Travellers who are going the distance should spend some extra money and book a bunk. These come in hard and soft varieties as well. Hard-sleeper cars have six berths and minimal padding. For just $4 more, travellers can opt for a soft-berth in a room with four bunks. Although neither option is luxurious, bunks are a lot more comfortable than seats. Visitors who have a little more money to spare should choose a VIP cabin, which only has two beds.

Hard seats on the train | © donchili / Flickr

You can bring your own food or purchase set meals with your ticket that are delivered directly to your compartment during the long journey. Snack carts also come around if you feel hungry between meals. Boiling water stations are available for you to make your own tea, coffee or instant noodles as well.

The best thing to do is to book online in advance or at the train station, located in Ho Chi Minh City’s District 3. It will cost you a little less than a $100. You can check the schedule on the Vietnam Railway website.

If you think the 35-hour-long journey is too much, you can make stops somewhere in Central Vietnam, ideally in Da Nang, another major city. From there, you can take a cab to Hội An for a few days.

Discover Hoi An in Central Vietnam on a train stop | © Raita Futo / Flickr

While taking the train will help you see Vietnam’s scenery, you’ll mostly see the coast, rather than mountains and jungles, on the Reunification Express, since the route runs along Vietnam’s spine. You’ll also see parts of the Vietnamese countryside that are normally inaccessible to tourists.

Take the bus from Ho Chi Minh City to Hanoi

If the train is a little too expensive, you can take the long-haul sleeper buses with chairs that recline as beds. Although tickets are a lot cheaper, buses are not as comfortable as taking the train. However, most buses have a tiny bathroom, and there are plenty of rest stops along the way. The journey will take around 35 hours, accounting for traffic and delays.

Vietnamese night buses | © Piumi Rajapaksha

You also have the option of taking the hop-on-hop-off buses. With an ‘open bus ticket’, you can get off at any major stop, spend a few days exploring the area, then head to the next city on the route. Depending on your interests, you can choose your route, whether it’s inland or coastal. The open bus ticket will cost you about $50. If you’d prefer to pay for each individual ticket, expect to shell out about $10 from city to city. Tickets are bookable online, through hotels, or you can head over to Pham Ngu Lao Street in the backpacker district of Ho Chi Minh City, where you will find the whole street filled with tour operators.

Drive a motorbike between each city

The most exciting way to travel through Vietnam is by motorbike! You’ll have a lot of flexibility, can map out your route according to what you want to see and book accommodation at various pit stops.

You can go two ways: follow a similar path that the Reunification Express takes or travel through the highlands.

If you want to see the beach, follow this route: Ho Chi Minh City – Mũi Né – Nha Trang – Qui Nhơn – Quang Ngai – Hoi An – Da Nang – Huế – Phong Nha – Ninh Binh – Hanoi.

If you’re up for tackling winding roads along the mountains, try this option: Ho Chi Minh City – Dalat – Buon Ma Thuot – Pleiku – Kon Tum – Hoi An – Da Nang – Huế – Phong Nha – Ninh Binh – Hanoi.

You can mix and match these routes as you wish.

Vietnam has many passes that are worth seeing | © Hưng Hồ Bá / Flickr

Remember that riding a motorbike can be dangerous, especially if it is your first time; Vietnam is not the place to learn how to drive one. If you are an experienced driver, then taking these routes will give you the flexibility to explore what Vietnam has to offer. Please remember to be safe, learn the rules of Vietnamese traffic and get travel insurance. Đi chơi vui vẻ (have a nice trip)!

Fast food in free fall? Vietnamese prefer full service eateries

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A survey has found full service restaurants outshining the quick service segment in Vietnam since 2017’s third quarter.
Full service restaurants (FSR) or sit down eateries where food is served directly to the customers’ table, have been far better patronized than quick service restaurants (QSR), where table service is minimal and the typical fare is fast food.

In fact, the QSR segment has been dropping quarter after quarter, according to a report released this week by the HCMC-based market research firm Decision Lab.

It found that the growth of full service restaurants has been fueled mostly by women, and consumers above 35 years of age.

The FSRs and QSR are the two most important channels for manufacturers of various product categories, with the other five channels being street food, bars, convenience stores, hotels, and canteens.

Together, they currently account for the majority of out-of-home visits by consumers across all demographic groups in Vietnam.

The falling of QSR

Quick service outlets have been suffering from declining visits from all consumer groups, male and female of all ages from 15 upwards in all the three major cities, the report said.

Among various types of quick service outlets, cafes, bakeries and juice, smoothie shops are those that have witnessed the biggest drop in visits, by 29 percent, 22 percent and 30 percent respectively.

They have switched to other channels to consume these daily products likes street food, full service restaurants and convenience stores.

But this does not mean Vietnamese are cutting down on these products. Vietnamese consumption of coffee, juice and smoothies actually increased in the past year.

Since April 2016, Decision Lab had tracked the out-of-home eating and drinking market in Hanoi, Ho Chi Minh City and Da Nang, Vietnam’s three biggest cities of Vietnam.

It tracked all food and drink consumed out of home on a daily basis with an annual sample size of 15,000 completed interviews.

The respondents were Vietnamese consumers aged above 15, who also reported on consumption by children (under 15 years) present when eating out.

Nghiem Vu Huong Linh, head of Foodservice at Decision Lab, said the findings suggest that consumers have become very selective in their choice of outlets to visit and that not all outlets can benefit from the increasing demand without making significant efforts to become attractive and worth trying.

Source: Vnexpress

Traders Fair and Gala Night Vietnam – The fantastic show of finance

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Traders Fair & Gala night, Vietnam is attracting the world of traders to one place during one day. The leaders of the industry are going to come together in one place and to have an exchange of knowledge and experience.

When: November 24, 2018
Where: Windsor Plaza Hotel, Saigon (18 An Duong Vuong Street, District 5, Ho Chi Minh City, Vietnam)
Website: https://vietnam.tradersfair.com

Traders Fair & Gala night, Vietnam consists of 2 parts:

1. The exhibition starts at 9:00 and is free for visitors. To become our visitor you should download our Mobile App and get your personal QR-code or just register through our website https://vietnam.tradersfair.com/ . During the day exhibitors will show their services, communicate with potential clients and tell people about their companies. Also Traders Fair, Vietnam is a fantastic opportunity to meet and (what is more important) to take seminars from the leaders and experts. There will be 3 workshop rooms, where Forex professionals, successful traders and motivators are going to share out their knowledge and answer your questions – free for all visitors as well.

2. The Gala Night starts at 18:30 and ends at 23:00 – you may attend this part only by invitation cards. We provide companies and our speakers with them, so they can communicate in an informal way. Of course, we are going to share some amount of invitation cards with our visitors – by different lotteries and so on. Gala Night is going to be full of live performances, music, networking, food&drinks and prizes. To say more, you may win the Grand Prize of our Traders Fair – motorbike – during Gala Night. The last winners were just visitors, who obtain invitation cards during the event (Traders Fair Malaysia and Thailand).

Don’t miss! To register now for FREE, you should visit https://vietnam.tradersfair.com

Telegram https://t.me/tradersfair
Facebook https://www.facebook.com/TradersFair/
#tradersfair #tradersfair2018 #tradersfairvietnam

Giang Brothers to attempt new world record

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Two Vietnamese circus artists and brothers, Giang Quốc Cơ and Giang Quốc Nghiệp, will attempt to conquer a new world record with their head-balancing act in Rome, Italy, following an invitation from Guinness World Records.

As revealed by Cơ, the performance by the two brothers during the final of the UK’s biggest talent show, Britain’s Got Talent, in April impressed viewers around the world, including members of Guinness World Records based in Italy.

Earlier this month, the Giang brothers received an invitation to set a new world record with their death-defying performance at the Guinness World Records Show that will take place in Rome on November 11-15.

Cơ and Nghiệp have been practising their head-balancing act while blindfolded, climbing the stairs backwards in preparation for the event.

“We will always face unexpected challenges, so we have to continue with our journey. We have received the official invitation from Guinness World Records, and we will prepare and train urgently to conquer the challenge for Vietnam,” the two brothers shared on their Facebook.

Earlier, in 2016, Cơ and Nghiệp broke the world record for the most consecutive stairs climbed while balancing a person on the head in Girona, Spain after scaling 90 stairs of Saint Mary’s Cathedral in 52 seconds with Nghiệp balancing atop Cơ using only their heads, breaking the world record that had been previously held by a Chinese artist.

Cơ, born in 1984, was awarded the title of Meritorious Artist when he was 28 years old while his young brother, Nghiệp, born in 1989, was granted the same title when he was 26 years old, making them the youngest artists ever to receive the title in Vietnam.

According to a report on VNS

Vingroup starts construction of VinUni – private university in Hanoi

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Vietnam’s mega conglomerate Vingroup broke ground on the main campus of its higher education project, VinUni University, in Hanoi on Wednesday.

Located inside the VinCity Ocean Park urban area, VinUni will feature lecture halls, dormitories, a sports complex, and technical and support areas across its 23-hectare Gia Lam District campus.

The university was designed by well-known international architects and assessed by Vingroup’s strategic partners, including Cornell University and University of Pennsylvania, Vingroup said in a statement.

“VinUni will be built pursuant to the highest international standards for a university,” said Vingroup vice-president Le Mai Lan at the groundbreaking ceremony on Wednesday.

“Students will have opportunities to study with professors and lecturers from leading universities, institutes and medical systems around the world.”

“At VinUni, students will have the chance to experience the most advanced and latest educational technology, facilities, and laboratories,”

“We believe VinUni will create a benchmark for quality higher education in Vietnam, approaching international standards,” she continued.

Vingroup, which has interests in real estate, retail, hotels, e-commerce, healthcare, education, agriculture and car manufacturing, first announced its plan to invest in higher education this past March.

VinUni’s mission is to train “elite” human resources who are equipped with the “knowledge, skills, life experience and aspirations” needed to contribute to the prosperity of society and have a positive impact on the world’s knowledge, the conglomerate said in a statement.

Admissions are expected to begin as early as in 2020, Lan said.

Vingroup is Vietnam’s fifth-largest company by market value.

The conglomerate already has investments in the education sector through its VinSchool network, which consists of elementary through high schools throughout the country.

According to a report on Tuoi Tre

Prosecution begins for VND300 billion fraud at HSBC and ANZ

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HSBC and ANZ have named 13 companies of being involved in a series of frauds costing the banks VND300 billion ($13 million), leading to the prosecution of dozens of defendants and eight companies. While no wrong-doings have been identified on the part of the staff of the two banks, the court issued further investigation.

The Hanoi People’s Court has just held the hearing for the case of Bui Kien Dung and other defendants, working for 13 companies, who are accused of swindling and appropriating VND300 billion ($13 million) from HSBC and ANZ.

In the middle of 2014, HSBC and ANZ accused 13 companies of involvement in the fraud that appropriated VND300 billion ($13 million) from these two banks. The Ministry of Public Security’s investigation agency identified eight of these companies as related to the fraud.

According to the two banks, Medi-Sanfrontler Trade JSC, chaired by Bui Kien Dung, asked An Thi Huong Giang, former accountant of An Phat Investment JSC (also established by Dung) to forge documents to take up a bank loan at HSBC.

Thereby, Giang forged audit statements and copies of Medi-Sanfrontler’s 2009 and 2010 financial statements, falsely increasing the amount of receivables and inventory in the company’s loan profile. They gave the bank a number of fake contracts of purchase. When prosecution began, Medi-Sanfrontler owed HSBC VND55 billion ($2.4 million) in principal debt.

Until 2012, An Phat and Medi-Sanfrontler owed around VND150 billion ($6.5 million) to banks like HSBC, VIB, MBank, and VPBank. Then Dung and Giang negotiated with Vu Van Dien, former director of Toan Dien Co., Ltd. to borrow from HSBC and ANZ by using the legal entity of this company, while it still owed banks like Techcombank and Agribank. They forged documents to cheat bank staff, increasing Toan Dien Co., Ltd.’s principal debt to VND47.9 billion ($2 million) to HSBC and VND55.8 billion ($2.4 million) to ANZ.

This trick was used multiple times to take up a series of loans at the two banks. As of the time of prosecution, the total amount of debts in these two banks was VND379 billion ($16.5 million), including VND300 billion ($13 million) without collateral (VND201 billion – $8.7 million from HSBC and VND99 billion – $4.3 million from ANZ).

Among the 13 companies accused by these two banks, An Phat International Investment JSC, Vitaglobal Pharmaceutical JSC, and Trung Anh Pharmaceutical JSC paid off their debts and were not investigated. The investigation agency has not detected any violations at Thanh Cong Co., Ltd., while Tien Phat Co., Ltd. was detected to have forged documents and value-added invoices but the agency needs more time to build a case.

The investigation agency has also not found evidence of connivance by HSBC and ANZ staff who verified and approved the loan and disbursement documents. Additionally, HSBC and ANZ have not issued punishment to the involved employees. Many departments and officers of the banks took part in the loan approval procedures. Thereby, the investigation agency could not allocate individual responsibility in the case.

However, the Hanoi People’s Court has recently returned the documents and required additional investigation to clarify the responsibility of the banks’ officers.

Source: VIR

VPBank honored for SME services

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Bank wins “The SME Bank of the Year” from IFC.

The Vietnam Prosperity Joint Stock Bank (VPBank) overcame more than 100 competitors to be named “The SME Bank of the Year” in Asia at the inaugural Global SME Finance Awards, held in conjunction with the Global SME Finance Forum and managed by the International Finance Corporation, part of the World Bank Group. This is the fourth global award VPBank has won for its SME banking franchise.

Entrants were scored by 60 judges and each winner was further reviewed by six to eight judges.

The jury commended VPBank for the robust growth of its SME franchise. It also lauded the bank for its initiative to develop a women enterprise solution in Vietnam, which include financial and non-financial values, and highlighted its use of digital technology to improve the SME customer experience in non-financial services, called SME Connect.

“The Global SME Finance Awards celebrate best-in-class financial institutions and fintechs that have achieved remarkable results in their SME product or service offerings,” said Mr. Matthew Gamser, CEO of the SME Finance Forum. “Our winners are diverse, but they all share a strong commitment to helping small businesses in their markets with their dedication and innovative practices.”

“This is the fourth time VPBank has been named SME bank of the year,” said Mr. Fung Kai Jin, Deputy CEO and SME Head of VPBank. “This award is not only recognition of our efforts in empowering Vietnamese SME clients but also inspires us to keep our commitment to providing products and innovative services for SME in Vietnam, helping them to prosper.”

VPBank was established in 1993 and has transformed its model in recent years. SMEs is one of three core segments the bank focuses on with special investment in its business model, people and SME solutions.

In June it launched its women enterprise segment to the market. It was also named a pioneer in the market, providing financial services, especially non-collateral loans, to a large but unmet market in Vietnam: micro, small and medium-sized enterprises.

Source: Vneconomictimes

Vietnam to test 5G network in 2019

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Vietnam has ambitions to be among the world’s first countries to launch 5G networks in 2020, with a testing phase expected in 2019, the information ministry said on Wednesday.

The launch of 5G will be a huge leap forward in quality for Vietnam’s telecommunications industry, said information minister Nguyen Manh Hung at an innovation event in Hanoi on Wednesday.

5G is the fifth generation of cellular mobile communications, succeeding the 4G, 3G, and 2G systems.

5G networks will rely on denser arrays of small antennae and the cloud to offer data speeds up to 50 or 100 times faster than current 4G networks and serve as critical infrastructure for a range of industries, according to a Reuters report.

Unlike the upgrades of cellular standards 2G in the early 1990s, 3G around the new millennium and 4G in 2010, 5G standards will not just deliver faster phone and computer data but they also help connect up cars, machines, cargo and crop equipment.

Therefore, Hung said, the 5G network is the most important infrastructure of the Fourth Industrial Revolution, and establishing a developed 5G network should be Vietnam’s top priority if it wants to be at the forefront of this revolution.

“5G is an opportunity for Vietnam not only to improve its data services and telecommunications ranking, but also to develop the country’s information and communications technology (ICT) industry,” Hung said.

Speaking with the media on the sidelines of Wednesday’s event, deputy director of Vietnam’s Authority of Radio Frequency Management Le Van Tuan said a separate frequency band will be reserved for 5G services to ensure adequate bandwidth.

Optical fiber cables will also be used to link 5G transceiver stations for optimal data transfer rates.

Nguyen Vu Luu, director of strategy for military-run telecom group Viettel, said a million end-devices within an area of one square kilometer can simultaneously connect to the 5G network.

However, Vietnamese mobile users have every reason to remain skeptical about the positive prospects of 5G technology.

Though the first 4G service in Vietnam was launched in October 2016, as of today mobile network operators in Vietnam still have to use the same radio frequency band of 1,800 MHz for both their 4G and 2G services, which negatively affects bandwidth and data transfer rates.

In October, the information ministry announced that it would allocate a separate frequency band for 4G services as early as in November, but so far the transition has not taken place.

Today, around 30 million mobile users in Vietnam are subscribed to 4G data plans.

Vietnam ranks 46th out of 88 surveyed countries in terms of 4G speed, averaging 21.49Mbps, according to the 2018 State of LTE Report by OpenSignal.

According to a report on Tuoi Tre News

Major loss-making foreign-invested firms to be inspected for tax compliance

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The General Department of Taxation (GDT) has just sent a document asking provincial and city Departments of Taxation to inspect and supervise groups, corporations, and companies, which reported big losses over the past years.

According to the GDT, from the beginning of the year to October 23, tax authorities have conducted 70,102 inspections, reaching 78 per cent of the yearly plan and equalling 97 per cent of the same period last year. The resulting tax arrears detected by the amounted to VND12.84 trillion ($558.2 million).

According to tienphong.vn, based on the list of businesses in the 2018 plan of inspection, tax agencies will need to start immediately auditing certain groups, corporations, and businesses.

The GDT also ordered the inspection of FDI firms which made big losses over the past years and have conducted large related-party transactions, especially those where the parties are located in countries and territories that charge low- or no corporate income tax.

Earlier, in 2012 GDT reported that 57 per cent of 5,500 reviewed foreign-invested firms (equalling 60 per cent of the total number of FIEs) reported net losses in 2010 and 2011. Among all economic sectors, the rate of loss was highest among FDI firms, between 48 and 52 per cent in 2008-2014.

Meanwhile, the GSO reported that the pre-tax profit of all economic sectors in 2017 was VND876.7 trillion ($38.1 billion). Of this, FDI enterprises made the largest profit with around VND384.1 trillion ($16.7 billion), equalling 44 per cent of the total, nearly doubling the state-owned sector (VND200.9 trillion – $8.7 billion), while the domestic sector made VND291.6 trillion ($12.7 billion).

However, the FDI sector contributed only VND265.7 trillion ($11.6 billion) to the state budget, equivalent to 28 per cent of the total, while the state-owned sector contributed VND291.6 trillion ($12.7 billion) and domestic sector VND407.6 trillion ($17.7 billion).

In a conference on transfer pricing organised by the State Audit Office of Vietnam (SAV) a few months ago, Tran Khanh Hoa, director general of SAV’s General Affairs Department, pointed out specific signals through studies of cases suspected of transfer pricing, such as Coca-Cola, PepsiCo, as well supermarkets Metro and Big C.

These signals include reporting losses over many years but continuously expanding the scale of production and business; very low profit margin; low rate of contribution to the state budget, while total investment and expenses are high; being sponsored by affiliated or parent companies; goods are sourced from at least three countries.

Source: Dtinews