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Vietnam’s Agribank denies bankruptcy rumor

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The Vietnam Bank for Agriculture and Rural Development, better known as Agribank, has rejected rumor circulating in several localities in recent days that it had gone bankrupt.

The rumor started to spread on Friday, when Le Bach Hong, a former Deputy Minister of Labor, War Invalids and Social Affairs and former head of Vietnam Social Security, was arrested over allegations of economic mismanagement.

Vietnam Social Security was the creditor of the now-defunct Financial Leasing Company II (ALCII), the financial arm of Agribank that declared bankruptcy in July.

Following the arrest of Hong, some local news websites published reports saying that Agribank is responsible for paying the debts ALCII owes the Vietnam Social Security firm, as the credit institution had guaranteed the borrowings.

Soon afterward, rumor that Agribank itself had also gone bankrupt was heard in some localities. More seriously, workers in industrial parks at these places even skipped work to rush to Agribank’s branches for cash withdrawal.

In a statement on Sunday, Agribank asserted that all of these pieces of information are false and misleading.

Agribank underlined that ALCII was allowed to legally go bankrupt by a court in Ho Chi Minh City on July 31, adding that the State Bank of Vietnam also revoked the license for the financial company’s establishment and operation on October 12.

The Ho Chi Minh City court also ruled that Sen Viet Asset Management and Liquidation Company had to be entrusted with the task of managing ALCII’s debts.

As of early April 2018, ALCII still owed Vietnam Social Insurance VND769.3 billion (US$30.08 million), excluding interest.

Agribank also said ALCII is a non-bank credit institution with legal status independent of Agribank.

Therefore, the bankruptcy of ALCII will not affect the operation of Agribank as well as savings of customers at the bank, according to the credit institution.

Agribank, which has recently undergone a restructuring process, said its business is improving, with pre-tax profit in steady growth over the years.

Specifically, the bank’s pre-tax profit reached VND4,212 billion ($181.12 million) in 2016, VND5,018 billion ($215.77 million) in 2017, and VND6,000 billion ($258 million) in the first ten months of this year.

Bao Anh report on Tuoitrenews

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 Việt Nam,” 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 Việt Nam.

Source: VNS

November 12: VN-Index loses more than 10 points in opening minutes

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Index then steadies but still in negative territory.

Caution abounded in Vietnam’s stock market on the first day of the new week, with the VN-Index shedding more than ten points in the opening minutes. The sharp declines, however, attracted bottom-fishers, with stockholders unwilling to sell also steadying the market.

At 10.10am, the VN-Index was down 6.38 points (0.7 per cent) to 907.91 points, the HNX-Index 0.36 points (0.35 per cent) to 102.65 points, and the UPCoM-Index 0.49 per cent to 51.34 points. Liquidity was quite low, with a matching order value of VND900 billion ($38.6 million).

Sectors such as securities, banking, and real estate and construction lost ground. In seafood, CMX continued to be a “hot” stock, hitting its ceiling, while VHC remained at its reference level.

Bluechips such as VHM, VRE, VIC, BVH, HPG, MSN and VCB all fell, negatively impacting the market.

Oil and gas fared slightly better, with PVS, PVD and PVC doing well. News that Russia and OPEC had cut output to limit falls in oil prices had a positive impact.

The Saigon – Hanoi Securities JSC forecast that the situation this week will be difficult as the trendline lifted to 940-950 points, making sales more difficult.

Liquidity continued to fall, indicating that cash flows have not returned to the market as the risk is still considered high. The VN-Index may continue to fluctuate and may need another test to support 885-900 points again. It maintains its recommendation for investors with high stock exposure to keep their resistance at 940-950 points.

Investors who have a high cash proportion should not rush to disburse at this time when the market is still likely to fall further after trendline growth.

My Van report on Vneconomictimes

Commercial banks hunt for young people

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Many commercial banks are now trying to win the hearts of young people, who could be big borrowers in the future.

Eximbank and JCB have launched a new card product ‘Young Card’. The customer must have income of VND5 million a month to be eligible.

“JCB wants to lead in providing card services to young people,” said Tomoaki Yamaguchi, chief representative of JCB Vietnam.

The institution from Japan hopes its market share in Vietnam will increase from 10 percent to 20 percent in the next two years. Targeting youth is an important strategy.

As for Eximbank, its Okada Kenji explained that the bank now targets youth because it wants to expand the custom, while young people are the future of the bank.

VP Bank, when launching YOLO, a mobile phone app, also targets youth, or next-generation clients.

Shameek Bhargava from VP Bank said the targeted clients of YOLO are aged 18-35 in large cities and provinces, using smartphones and digital services.

Youth tend to spend more money on consumer goods, tourism, technology products and entertainment. A report showed that Z generation, or those born after 1995, spend VND13 trillion on food only each month. In Vietnam, there are 14.4 million people belonging to Z generation.

Young people living in urban areas are more optimistic than the previous generations and they spend more money. However, what attracts banks is their trend of borrowing money for consumer needs.

A report shows that 41 percent of Vietnamese had no transactions with banks as of the end of 2017. The number of credit card holders only accounted for 4.1 percent of Vietnamese adults, just half of Thailand and one-fifth of Malaysia as estimated by the World Bank. Meanwhile, 90 percent of payment transactions are implemented in cash.

A PwC report showed that the group of young clients are seeking financial & banking services which are convenient, consistent and easily accessible.

However, analysts commented that banks are now meeting difficulties when accessing youth because there are many choices, not only from omni-channel services introduced by banks, but also from fintechs.

The existence of too many sale promotion programs and service providers also leads to customers’ lower loyalty.

A research study found that 82 percent of millennials (born in 1980-1998) do not hesitate to change banks and 83 percent of them shift to use the services of rivals.

According to a report on Vietnamnet

Vietnamese consumers spend big on luxury goods

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As Vietnam’s middle class continues to grow, concerns over quality, healthy impact, and social status are beginning to play larger roles in Vietnamese consumers’ willingness to open their wallets for high-end products.

The behavior of Vietnamese consumers is shifting, Le Thi Thu Trang, a consumer behavior researcher with Nielsen Vietnam, said at a conference on the local retail market in Ho Chi Minh City on Wednesday.

In comparison with other Southeast Asian countries, Vietnamese consumers with the financial capabilities to purchase luxury goods are less focused on price tags and more concerned about a product’s function, practicality, design, components, or ingredients, Trang said, citing findings from a recent Nielsen report.

Purchasing luxurious goods also provides Vietnamese consumers with confidence and a feeling of successfulness, Trang said, adding that local consumers are particularly health-conscious and therefore willing to spend more on high-quality healthcare related goods.

“Vietnamese luxury goods consumption is increasing, especially for organic, natural, or healthy products,” she elaborated.

“Even though the proportion of these goods is relatively insignificant compared to other necessities, the consumption rate of these products is growing at double-digit rates.

“A perfect example is the popularity of natural toothpaste, which is growing at 65 percent per year.”

The Nielsen representative also shared that the Vietnamese market is not as willing to spend large sums of money on fast-moving consumer goods such as toiletries, beverages, and packaged goods, as they are on electronics and pharmaceuticals.

Though many brands are capitalizing on the shift in consumer habits, a huge percentage of the country’s retailers are still not leveraging big data in order to better understand the market’s needs, provide better services, and respond to technological innovation.

The Nielsen research also suggests that Vietnamese consumers prefer spending money in places with a wide variety of spending options.

Nguyen Huy Hoang, commerce director of Kantar Worldpanel Vietnam, backed Nielsen’s findings, citing Aeon Mall, a Japanese shopping mall chain whose properties typically house big brands, grocery stores, gaming centers, food corners, and luxurious restaurants, as a prime example of a venue where Vietnamese shoppers are willing to spend big.

Despite most Aeon Mall outlets being located away from the city center, such as the Aeon Mall in Binh Tan District, Ho Chi Minh City, each location boasts huge numbers of customers.

As such, Kantar’s research suggests that Vietnam will continue to grow its number of shopping malls and convenience stores, Hoang told the same conference.

The research also pointed out that the 20-40 age bracket contributes the most to the market’s revenue, and that imported and branded goods are becoming increasingly preferred by consumers compared to previous years.

In 2017, Vietnam’s retail market attained approximately VND4 trillion (US$170 million) in revenue, according to the General Statistics Office of Vietnam.

The market also saw a growth rate of 10.9 percent between 2016 and 2017.

According to a report on Tuoi Tre News

Vietnamese drink much more than Singaporeans

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An average Vietnamese aged 15 and over consumes 8.3 liters of pure alcohol per year, while a Singaporean only consumes 2.0 liters, Vnexpress cited a report as saying.

Nguyen Huy Quang, director general of legal affairs under the Ministry of Health said that the current consumption of alcohol in Vietnam is alarming. Vietnam consumes 305 million liters of alcohol and 4.1 billion liters of beer each year. Per capita alcohol consumption tends to increase.

On average in 2016, each Vietnamese consumes an amount of alcohol equivalent to the level of Thai people, higher than that of other countries in the region. Alcohol consumption in Mongolia is 7.4 liters, China 7.2, Cambodia 6.7, the Philippines 6.6 and Singapore 2.0.

Data from the Ministry of Health showed that in the five years from 2010, the number of Vietnamese men drinking alcohol has increased by 15%. An average Vietnamese man consumes 27.4 liters of pure alcohol a year, ranking second in Southeast Asia and 29th in the world. More than 44% of men and 1.2% of women use alcohol at a harmful level.

The use of wine and beer in Vietnam is estimated to cause 79,000 deaths in 2016. Hundreds of thousand people have been hospitalized for alcohol-related diseases.

At a meeting on July 18 between the Ministry of Health and the Consultative Group for Health to discuss the draft law on alcohol harm reduction, the WHO believes that the harmful use of alcoholic beverages is a major factor contributing to the burden of non-communicable diseases treatment. It is also implies risks for road accidents, violence and injuries.

In 2015, at a United Nations meeting, Vietnam committed to reduce its alcohol abuse use by 10% by 2030. The use of alcohol is considered to be a deterrent to human sustainable development. Therefore, the Vietnamese government needs a strong legal framework to prevent the harm of alcohol.

Over the past three months, the draft law on preventing harms of alcohol has been widely discussed. Many schemes for managing alcohol sales are proposed such as alcohol sale by the hour, the age limit allowed to buy alcoholic beverages, high taxation on alcoholic enterprises, beer advertising ban, etc.

According to a report on Hanoitimes

Homestays have been spreading to suburbs of Hanoi

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After developing well in the inner city, homestays have been spreading to the suburbs of Hanoi.

Hoa, 33, in Cau Giay district in Hanoi, often organizes picnics for her family and friends on weekends. Their favorite destinations are apartments or homestays in the suburbs of Hanoi, where they can enjoy freedom and space of their own.

However, to book a good one on weekends, she has to contact homestay owners 2-4 weeks in advance and pay a deposit.

Hoa last week searched a website that bridges travelers and homestay owners, planning to book for an upcoming picnic. However, nearly all the homestays around Hanoi were fully booked. Finally, Hoa decided to choose a place 50 kilometers from Hanoi.

Two years ago, homestays started popping up in the inner districts of Hanoi and the guests were mostly foreigners. But now, homestays are in the suburbs and neighboring areas, especially Soc Son, Ba Vi, Thach That, Gia Lam and Long Bien, and the guests are young Vietnamese.

Duy, the investor of a homestay in Soc Son district, said he had spent VND3 billion so far on the homestay. At first, he built a house for family reunions on weekends. But later, realizing the high demand for rooms for weekend holidays, he decided to turn the house into a homestay.

The guests coming in mid-week are mostly students and freelancers. They have to pay VND5-6 million to stay there for one day and night. The rent is higher on weekends, about VND8 million.

Duy said he is satisfied about the business model. “The earning is good, while the house still can serve family’s needs,” he said.

However, Duy said, the competition is getting fierce and homestays need to be original and ‘green’ to attract guests who want places to relax and live in nature. The investment must be high.

Tuan, a banking officer, who runs a homestay in Thach That district, said there must be gardens with green trees, fish ponds and fowls.

“This brings guests the fresh air, free space and experience they cannot have in the inner city,” Tuan explained.

Asked about business performance, Tuan said the occupancy rate is 40 percent and rent is VND4-8 million per day.

In Thach That district, besides the homestays built with sophisticated style, there are also simple homestays designed to be friendly to the environment with simple building materials and interior decoration.

According to Tuan, these homestays have the investment rate just equal to half of other homestays, so the rent is very competitive.

According to a report on Vietnamnet

Vietnamese brewer Sabeco removes limit on foreign ownership

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Vietnam’s biggest brewery firm Sabeco on Monday announced that it has removed all restrictions on foreign ownership, opening up the $6.5-billion company to further investments from overseas strategic investors.

As part of a push to privatise state companies to offset mounting public debt, the government had earlier sold a 53.6 per cent stake in Sabeco to ThaiBev for $4.8 billion. The industry ministry still holds a 36 per cent stake in Sabeco with veto powers.

ThaiBev owner and billionaire Charoen Sirivadhanabhakdi, who has been aggressively snapping up assets in Vietnam including Vinamilk, Metro Cash & Carry Vietnam and Melia Hanoi Hotel, is likely to use the opportunity to enlarge his stake in the brewer.

Sabeco, also known as Saigon Beer, was listed in 2016, eight years after it was privatised. The company is currently one of the 10 largest businesses in the country by market capitalisation. It had recently appointed Neo Gim Siong Bennett, a former senior executive at ThaiBev subsidiary F&N, as CEO.

Vietnam is proposing to remove the 49 per cent foreign ownership limit in its listed firms. Under current legislation, if a company wishes to remove overseas holding limit, it must seek approval from its shareholders. Dairy firm Vinamilk had announced a similar move in 2016. The company counts ThaiBev subsidiary F&N and Jardine Cycle & Carriage among its largest shareholders.

According to a report on Dealstreetasia

District 4: Exploring Ho Chi Minh City’s Former Mafia Hotspot

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Famous for all the wrong reasons, Ho Chi Minh City’s District 4 was once a mafia hotspot in the ’80s and ’90s – ruled by notorious crime boss Nam Cam. Today, however, the area is a lively and exciting part of the city that should definitely not be overlooked.

Size is no measure of significance, and Saigon’s smallest district is a dynamic and culturally rich area that’s well worth exploring. District 4 lies in limbo between its chequered history and promising future; traces of old Saigon’s slums are still visible at ground level, yet cast your eyes to the sky and you’ll see a handful of high-rise apartments beginning to appear. Wedged between Districts 1 and 7, District 4 is decidedly different from its heavily Westernised neighbours and offers a slice of Saigon like no other.

Where is District 4?

District 4 is technically an island, separated from the rest of the city by the Saigon and Ben Nghe Rivers and the Te Canal. The Rainbow Bridge – so-named due to its arched underbelly – connects District 4 to the city centre. The bridge serves as a reminder of Vietnam’s colonial past, since it’s the work of French architect Gustave Eiffel (no prizes for guessing what else he’s known for). Once across the bridge, much of the modernity of District 1 disappears with the upscale skyscrapers giving way to narrow houses and interweaving alleyways. Things are patently less touristy – yet equally vibrant and interesting – this side of the river.

Mong Bridge, District 4, Saigon, Vietnam. | Vu Pham Van / © Culture Trip

What is the history of District 4?

Historically, District 4 is one of the poorest areas of Saigon. It was a slum area that became a crime hotspot under the reign of infamous gangster Nam Cam, also known as the ‘Godfather of Saigon’. Cam’s mafia dominated the area during the ’80s and ’90s, lining the streets with brothels and gambling dens. Restaurants even refused to deliver food to the district for fear that their vehicles would be stolen. However, his reign came to an end with his arrest in 2003 and today there is very little mafia legacy visible in District 4.

Even so, District 4’s history has lighter spots. It is home to the Dragon Wharf where Ho Chi Minh himself – then known as Nguyen Tat – boarded a steamer to France in 1911, beginning the first leg of his world travels.

Dragon Wharf, District 4, Saigon, Vietnam. | Vu Pham Van / © Culture Trip

Food in District 4

If you only do one thing in District 4, it’s eat. Some of the city’s best seafood can be found here, especially on Vinh Khanh Road, which is now an official food street (though not one that most tourists take the time to explore). This lively street is teeming with no-frills sidewalk restaurants replete with metal tables and Vietnam’s iconic plastic stools. It’s the ideal place to try mouth-watering local dishes such as frogs’ legs, snails and seafood soup. Cries of ‘mot! Hai! Ba! Dzo!’ (‘One! Two! Three! Cheers!’) can be heard all around as young Vietnamese diners wash down their delicious food with ice cold beer. Meanwhile, street entertainers sing, dance and even breathe fire for patrons, intensifying the buzzing atmosphere. It’s not the place to enjoy a quiet meal, but it is incredible fun.

Markets in District 4

Despite its small size, District 4 is home to two of the best markets in the city. The New District market is a stylish fashion fair, where trendy boutique stalls set up shop every other weekend. There are photography sets dotted around here, where fashionable young Saigonese can snap away inside a futuristic subway carriage or a neon-lit diner. In stark contrast to this, Xom Chieu market lies just five minutes away. It’s certainly not the most picturesque, but it’s a great opportunity to see how Vietnamese people really shop – and a friendlier, more authentic alternative to Ben Thanh market.

Xom Chieu Market, District 4, Saigon, Vietnam. | Vu Pham Van / © Culture Trip

The future of District 4

Tipped to be ‘the new District 1’, District 4 is slowly embracing modernisation but not Westernisation. Fashion-forward boutiques such as Buzz Boutique are beginning to emerge in this increasingly young and trendy part of the city. The area’s close proximity to the central business district makes it popular with small business owners and young professionals, who can quickly zip over the Rainbow bridge on their motorbikes. Consequently, modern co-working spaces and cafes have started to appear. Yet this district has its roots firmly in tradition; there are just as many women in ao ba ba as there are teenagers sporting the latest Korean fashion. A few luxury apartment blocks have cropped up, but they’re the exception rather than the rule. Despite its youthful energy, this is a place where an older Saigon remains very much visible. In a city where Western influence grows ever stronger, Vietnamese culture is alive and well in District 4.

Kim Liên, Pagoda, District 4, Saigon, Vietnam. | Vụ Phạm Văn / © Culture Trip

By Hannah Stephenson, The Culture Trip

iPhone XR, following iPhone 5C, becomes ‘dud’ in VN

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Observers said iPhone XR appears to have the same problem as iPhone 5C which had a high price but few outstanding features.

The first iPhone XRs appeared at some private shops in HCMC on October 26 carried from Singapore to Vietnam across border gates.

With limited supply, the products were offered at VND23.9 million for one-sim 64 GB version.

The first iPhone XR arrived in Hanoi in the evening of the same day and it had the quoted price of VND25.5 million.

Observers said not many Vietnamese show interest in iPhone XR. The model is less known than its two ‘brothers’ iPhone XS and XS Max.

This explained why distributors continuously slashed the retail prices of iPhone XR in the next days.

iPhone XR is not as hot as expected because its initial price is relatively high. Vietnamese tend to buy the most advanced and expensive version, like XS Max, to show their class.

In HCMC, the price decreased by VND2.4 million to VND21.5 million for one-sim 64 GB version. In Hanoi, some private shops offered iPhone XR at VND22.5 million. The 2-sim version was VND500,000 more expensive.

The price of products carried to Vietnam across border gates dropped further after authorized resellers began selling genuine products. At present, the retail price is stable at over VND20 million for one-sim 64 GB version.

“iPhone XR is not as hot as expected because its initial price is relatively high. Vietnamese tend to buy the most advanced and expensive version, like XS Max, to show their class,” commented Thu Huyen, the representative of a private distribution chain in Hanoi.

A large retail chain admitted that the number of clients ordering iPhone XR is relatively low, just accounting for 10 percent of total orders.

“iPhone XR is likely to repeat the same problem of iPhone 5C five years ago,” said Hoang Giang, the owner of a shop in Cau Giay district in Hanoi.

In 2013, Apple ‘declared death’ for the iPhone 5 to pave the way for two models – iPhone 5C and iPhone 5S.

At that moment, people hoped 5C would be a low-cost product. But in fact, the retail price was relatively high, while it had weaker configuration and had no fingerprint scanner. It could not catch the attention from iPhone fans in Vietnam at the launching.

The sales of iPhone 5 were higher than 5C. Only when sales agents slashed selling prices by half to dump stock did Vietnamese begin paying attention to iPhone 5C.

iPhone XR is now considered 2018’s iPhone 5C.

Analysts say that Apple is following the same strategy that it once used five years ago: declaring death for iPhone X to boost the same next-generation iPhones, including iPhone XR.

Source: Vietnamnet

Vietnam’s Bikini Airlines now has bigger market cap than AirAsia

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Vietjet’s ambitions soar beyond Southeast Asia

Vietjet Aviation, Vietnam’s largest budget carrier, has grown into the second-most-valuable airline in Southeast Asia by market capitalization, and is building on that success to create a network of international routes stretching outside the region. Nikkei reports.

Japan represents a central plank in the growth strategy. On Thursday, Vietjet will begin service between Hanoi and Kansai Airport near Osaka. That will be followed from December with flights between Ho Chi Minh City and the Osaka-area airport, and one tying Hanoi with Narita Airport near Tokyo. Routes to Tokyo’s Haneda Airport, Chubu Airport near Nagoya and the airport serving Fukuoka are also in the works.

Nguyen Thi Phuong Thao, the CEO of Vietjet told Nikkei in an interview that, the airline seeks to capture surging domestic demand for business and leisure travel to Japan. The budget carrier’s fares will be low, with a round-trip ticket from Hanoi to Kansai Airport costing the equivalent of roughly $300, or about a third the price on flag carrier Vietnam Airlines.

According to the report on Nikkei, Vietjet’s partnership with Japan Airlines, inked in July 2017, will be key to its global expansion. Vietjet started code-sharing Vietnamese domestic flights with JAL in late October, granting JAL flyers access to its planes. Plans are in the works for a code-share arrangement on JAL’s long-haul flights between Japan and the U.S.

On the website of Vietjet, currently the company offers service to destinations in nine countries and territories, including China, Thailand and Malaysia. The airline will soon make a decision on whether to launch more international routes, to India, Russia and Australia. Nikkei mentioned that, Vietjet is also considering partnerships with European carriers.

Driving Vietjet’s expansion is the coming inauguration of the Trans-Pacific Partnership, the 11-member trade pact which Vietnam is a party to. Another catalyst is the strong economic growth fueled by foreign direct investment, such as from South Korea’s Samsung Electronics.

Vietnam’s gross domestic product grew 6.88% on the year in the quarter ended in September, a rapid pace even for a Southeast Asian economy. Consumption among the country’s nearly 100 million people has been climbing. The number of Vietnamese traveling across the border has jumped by 10% to 15% in each of the past few years, reaching 7.5 million in 2017.

Vietjet only has to contend with two domestic rivals: the top-heavy state enterprise Vietnam Airlines and its low-cost arm Jetstar Pacific Airlines. “There are only three airlines in Vietnam, and that arrangement facilitates profit generation domestically,” said a representative at an international brokerage.

Last year, Vietjet overtook Vietnam Airlines to take the lead in domestic traffic. This time around, the company looks to take that momentum overseas, armed with extra financial resources.

Vietjet’s strengths lie in its focus on cutting costs. Not only is the airline no-frills, it procures top-of-the-line aircraft with superior fuel mileage. Vietjet’s average cost per seat, not including fuel, adds up to just 2.25 cents per kilometer, which is reportedly the lowest among global airlines. The net profit margin is around 11%, exceeding that of elite carrier Singapore Airlines.

The company aims to set itself apart with amenities. The in-flight meals — which cost extra — feature menu items not usually offered by low-cost carriers. Perhaps more famously, bikini-clad cabin attendants perform in-flight dance numbers. Thanks to these unique services, annual sales have shot up 160% over three years.

Vietjet has attracted stock market investors as well. The company’s market capitalization has passed that of AirAsia, the Asia’s largest budget airline. Only Singapore Airlines has a bigger market value than Vietjet among Southeast Asian carriers.

Read full report on Nikkei

Danang mass fish death caused by explosives

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The mass fish deaths in Danang coast might have been caused by fishing using explosives according to local authorities.

A large number of fish, mostly sardines, were washed ashore from Thanh Khe to Lien Chieu districts since early November 10. Danang Urban Environment Company collected 952kg of fish and the locals also picked up much fish. The fish will be collected and buried at Khanh Son dumping site.

According to the locals and rescuers, the use of explosives in fishing was to blame for the incident.

Danang Department of Natural Resources and Environment urged the provincial authorities to deal with the use of explosives in fishing as a similar incident also occurred in November last year. The water samples taken by the Centre for Environmental and Natural Resources Monitoring brought no result.

The department also said that they hadn’t detected any illegal wastewater discharge in the area.

The Centre for Environmental and Natural Resources Monitoring was asked to keep observing the quality of the water samples that had been taken from November 10 to 12.

Danang Urban Environment Company was asked to send employees to monitor and clean up the beach. The people’s committees in Hai Chau, Lien Chieu and Ngu Hanh Son districts must collaborate with the border guards to raise public awareness about blast fishing and punish violators.

Source: Dtinews

HSBC: Vietnam ranks 19th in best countries of opportunities and challenges for expatriates

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Globally, Vietnam ranks 19th in best countries for expats, who are seeking both opportunities and challenges to boost and develop their careers.

According to a survey, conducted by HSBC, the majority of expatriates working in Vietnam have retained or maximized their happiness compared to when they are back in their home countries. The survey polled more than 22,000 people from 163 countries by an online questionnaire.

These sentiments have pushed Vietnam four notches higher in the HSBC list of best countries for expats to work and live. The 11th Annual Expat Explorer ranking issued by HSBC places Vietnam at 19th globally with expats saying that they find it more enjoyable to work in the country due to the many benefits that it offers.

Vietnam’s average annual salary for expats is US$90,408, with more than half of expats globally praising the overall improved quality of life in the country.

55 percent of respondents said that they are on holidays more than before, while 41 percent said that they upgraded their homes in Vietnam. A similar proportion 39% percent said that they have more household help compared to back at home.

About 47 percent of respondents also said Vietnam is great for expats who seek career progression.

VDSC Weekly Market Recap: Coverage List, Strategy Report, BFC, ANV, BID,REE,VSC, FX Market

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VNIndex on Friday closed at 914.29, down 1.14% w.o.w. Although the liquidity on HOSE was quite weak during the week at average of VND2,524bn ($109.9mn) per day, foreign investors had a positive net buying two weeks in a row. The foreigner’s net buying is VND341.5bn($14.8mn).

We made a clear statement last week that we should look deeply into the VN Mid Cap stocks, therefore, for this week, we look into the net trading of foreigners of top trading stocks of Vn30 and VN70 in October. After cancel out the SK Group’s $470mn investing in MSN, the net selling of Vn30 was $50mn, much bigger than the Vn70’s net selling of $0.48 million. Another interesting view when we look into our analyst’s 2019 EPS forecast, 45% of the mid-caps we cover have more than 15% of EPS growth. This will make the valuations of these companies cheaper in the future which in our view is very attractive.

Our Head of Research believes the USD is toppy and there is a high probability that it will weaken compared to other currency, especially emerging market currencies over the next 12-18 months. If he is right, there could be a lot of money moving to emerging markets looking for attractive return plus gains from currency appreciations.

Top Picks

DIG corporation (HSX: DIG)
Price : VND14,200
52w High : VND27,200
52w Low : VND12,300
Avg 30day Volume : 1,682,193
P/E : 13.1x | P/B : 1.23x

Catalysts:

Huge land bank for development: main focus on second grade cities close to major industrial park, tourism destinations and ports such as Vung Tau, Dong Nai and Vinh Phuc. Three key projects on progress are: Dai Phuoc residential area, Nam Vinh Yen phase 2 and Long Tan projects.

Re-structuring its business: actively divesting from its subsidiaries and affiliates in order to provide cash flow to support its development.
Maintained its financial leverage at 0.5-0.6 times over the years.

Valuation:

We used the RNAV method to estimate one-year fair value of DIG at VND19,500/share for the total return of 37.3% compared to closed price in 09/11/2018. Therefore, we recommend to BUY the stock.
Risk:

Low efficient ratio and not positive short-term prospect

If the launching of residential units is being delayed, the company would not have cash flow to finance future large project. However, due to the divestment of the State and the involvement of financial investors, we stay positive in the company.

Rong Viet Securities Equity Research Summary

Strategy Report

Investment Strategy November 2018

GLOBAL MACRO

By our estimation, the economies of emerging Asia will expand by the size of the entire Mexican economy in the next few years.
Equity fundamentals are good in Asia, except for return on investment (RoE), which need to improve.
We recommend buying Asia ex Japan and shorting the S&P 500

VIETNAM MACRO

Vietnam’s economy slowed down in October.
November’s events expected to drive the FX rate, an over 3% depreciation of the Dong in 2019.

VIETNAM’S STOCK MARKET IN OCTOBER: A BIG SLUMP

It took three months for the VN-Index to recover by 15% from the bottom at 885 and only one month to blow that away.
The VN30-Index and the VNMID-Index dropped 9.4% and 11.7% respectively, while small cap did a bit ‘better’: VNSML-Index fell 7.2%.
Liquidity dropped quite a bit compared to September
Foreign investors net bought VND 9,242 bn in the month.

NOVEMBER STOCK MARKET OUTLOOK

It can be possible that the VNIndex is at a relatively strong support level.
We think leading institutional investors will have a huge impact on where the market goes.

Company Report

BINH DIEN FERTILIZER JSC (HSX: BFC) – (Initiation, ACCUMULATE, VND26,800, UPSIDE 11%)

Revenue reached VND1.689Tn in 3Q18, up 6.8% YoY thanks to a higher selling price while total selling volume remained stable. The rising input prices that lowered the gross margin from 14.6% to 13.7%.

A marketing campaign as well as the discount policy lifted the selling expense/revenue to 33% in 3Q18. BFC posted VND58bn in net profit, down 18.8% YoY.
4Q18, not a peak season, will result in a low consumption of fertilizer.

We predict that revenues will increase by 4.7% to VND6.604tn and the net profit attributable to the parent company will decrease by 23.8% to VND211bn.

The stock is trading at 26.x current EPS of VND4,457. Furthermore, at its current price, it is trading at ~1.2x P/B. Cash dividend is expected at VND2,500.

Analyst Pinboard

3Q18 Earnings Update

Banks grew at a slower rate than previous quarters (17% YoY) in line with what we expected.

Earnings of real estate stocks, such as NLG, NVL and DXG surged as companies recognized profits this quarter.

PVS profited from the Sao Vang Dai Nguyet project while PVS and PVD also had a reversal of provision, boosting the earnings of the Oil & Gas sector considerably.

Almost all steel companies (HSG, NKG, VIS, POM, and TLH), excepting for HPG, struggled due to higher input prices and higher competition.

NPAT of the market increased by 21%, of which VHM and GAS contributed significantly.

However, excluding financials and banking sectors, revenue growth and NPAT growth of the market is only 12% and 9%, respectively.

In conclude, a significant portion of earning growth is from the financial sector, GAS and MSN, causing worry about the growth of these big pillars not be that great next year.

Nam Viet Corporation (HoSE: ANV ) – 9M18 Business Results

In 3Q18, net revenue came at VND1.051tn (+43% YoY). PAT was VND131bn (+245% YoY).

In 9M18, ANV recorded net revenue of VND2.735tn (+30% YoY) and PAT reached VND308bn (+253% YoY), equivalent to EPS of VND913/sh (+33% YoY), completing 85% of revenue target and 123% of net profit target.

General gross margin has increased sharply to 16% in 9M18 compared to 13% in the same period.

The farming area of the company is expected to expand from 250 hectares to 400 hectares in 2019. ANV aims to keep the Chinese market at a maximum 35% of revenue to maintain a diversified market structure.

In 2Q18, ANV received VND120bn from Dai Tay Duong company of Mr. Doan Toi. In addition, ANV has completed the divestment in Cromit Nam Viet with the salvage value of VND6bn in July 2018.

Outlook for 4Q18 and 2019

ANV expects the export prices in 4Q will be approximately the same as 3Q.

We believe that the gross margin in 4Q will be stable as in 3Q.

In 2018, ANV expects to reach VND3.6tn in net revenue and VND400bn in PAT. Accordingly, we estimate gross margin to reach 15.8%, up from 14.7% in 2017. ANV expects to keep selling prices stable in 1H19 and slightly down by 5% 2H19. Therefore, we expect the company to maintain a high gross profit margin as of 2018.

JSC Bank For Investment And Development Of Vietnam (HoSE: BID ) – Updates on 9M18 Business Performance

PBT was VND7.254tn, fulfilling 78.0% of its full year guidance. Lending in 3Q2018 grew faster than in 1H18; however, quarterly NIM was on a slight decline to 0.7% from 0.9% in 3Q17 and 0.8% in 1Q18.

Due to the NIM drop, net interest income was down 9.6% YOY. In 9M18, net interest income only increased by 11.3%, lower than other banks’.

TOI growth in 9M18 was driven by other net income growth by 18.3%.

Operating expenses were well managed (-8.7%) while provision expenses decelerated.

The capital raising process has progressed.

BID is currently trading at VND 32,800, equivalent to a PBR forward of 2.2x, not very attractive compared to other banks (except for VCB).

Refrigeration Electrical Engineering Corporation (HoSE: REE ) – Earnings growth in 2018 is quite certain

POWER AND WATER UTILITIES SEGMENT

VSH – Issues with Thuong Kon Tum (TKT) hydropower project remains tough but GENCO3’s divestment could open a solution
CHP – Poor hydrological conditions continues to affect 4Q 2018 performance while Cu Jut solar power project is well going on
TMP will have to take over the Thac Mo Expansion Hydropower project via public auction
PPC – The changes in capex plan have been approved; earnings outlook remains strong
VCW – Phase 1 of the plant will run at full capacity by the end of this year
Tan Hiep II Water Treatment Plant will run at full capacity in 2019

M&E SEGMENT

The accumulated backlog at the end of 3Q2018 was VND5.32tn.
NPAT of M&E segment in 9M18 is VND154bn.

REAL ESTATE DEVELOPEMENT SEGMENT

Breakdown for VND79bn NPAT of “Real estate” component in 3Q18 financial statement.
REE is considering participating the private replacement of SGR.
Regarding VIID, the company has completed sales of STD Tower project but the project is not qualified to book revenue within 2018 as planned.

OFFICE LEASING SEGMENT

The current occupancy rate of etown Central office building is over 80%.
Etown 5 office building: REE expect to have this building ready for lease by March 2018 at leasing price of 20 USD/m2.
Overall, we see a positive 2018 outlook on business results of REE but still notice some uncertainties for 2019 earnings growth.

Temporary Stabilization of the FX Market

In general, the current situation is better and supports our view of a chance for disbursements in the Vietnam’s stock market in November.

The yuan experienced a significant reversal in current trading sessions. Both of the Rupiah and Rupees went sideways in October. The Dong and Bath are still the most stable currencies in the region. The Ringgit is slowing down.

Risky currencies have temporarily regained their upside momentum.

We remain positive on the Dong as well as Vietnam’s stock market. We expect a 3% depreciation in 2018 against the USD.

Vietnam Container Shipping JSC (HoSE: VSC ) – Updates 9M18 Business Result

Net sales reached VND1.244tn (+ 30% yoy) and EBT came to VND288bn (+ 33% yoy), fulfilling 92% of its net revenue target and surpassing 3% of the EBT target.

About revenue:

Downstream player, VIP Green port, continues to be the growth driver of VSC.
Revenue of parent company, Green port, reached VND427bn (+ 18% yoy), contributing 34% of consolidated revenue.
Other subsidiaries contributed VND266bn in revenue, up 31% YoY.
Gross profit increased 24% to VND374bn. Gross profit margin was 30.1%, lower than 31.6% in 9M2017.
Net financial loss was down to VND22bn, down 30% YoYthanks to a reduction in interest expenses.
SG&A expenses increased 19% YoY to VND68bn.

American Beggar in Vietnam lost passport, wallet but refused support from the consulate

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Originally from Tampa, Florida, Chris Kucharski “studied numbers and stuff at the Duy Tan University.”

He is the father of a beautiful little boy and a guy who enjoys life in the central city of Da Nang. He also likes customized motorbikes.

This apparently, was the status-quo until almost three years ago, going by Kucharski’s Facebook page. In a conversation with a friend, he also mentioned having a lot of stress and not knowing when he would return to Da Nang.

Today, Kucharski has no name, no passport, no money and begs on the streets of Ho Chi Minh City. Several of his (a Bangkok Jack Report) acquaintances said he needs money for drug use.

A friend that the reporter of VnExpress spoke to was distressed that all the attention he was garnering was not going to help at a time that his families were trying to help him.

She said Kucharski is “super smart, very polite and an amazing tennis player. … He has a son that will be old enough that he would understand if people saw the story and point his father to him. As a mother that is very upsetting to know.”

Expat outrage

A VnExpress article recently speculated that a white man found begging on the streets of Saigon was Tim Stile from New York.

But an alert reader wanting to remain anonymous informed us that the man in question was most likely Kucharski.

VnExpress spoke to Kucharski at the intersection of Dien Bien Phu and Pasteur Street in District 3, HCMC.

He stands at the corner of Dien Bien Phu and Pasteur Street in District 3 to beg for money. Photo by VnExpress/Quy Nguyen

He said he was from the U.S. but didn’t reveal his name at first. He repeated the story he’s been telling everyone, that he’s lost passport and wallet, and needed a little money to cover his daily expenses.

Later, he conceded his name was Chris and that he was from Florida, but did not want to answer further questions.

Nine years

Kucharski has been in the country for nine years. Whatever his story is, he said he just wants to be left alone to do what many others do: beg for a living.

He could not understand why people like Tim Bennet, expatriates living in Saigon, were treating him harshly.

Tim Bennett, a retail store owner who has been living and working in Saigon for years, stopped his vehicle at a street corner recently, grabbed his T-shirt and destroyed the sign Kucharski was carrying.

“I told everyone that next time I saw this, I was going to pull over and stop it. Scumbag tourist begging for money in a poor country like Vietnam. Not gonna happen,” Bennet fumed in his post on October 24.

He and his wife has seen the beggar wander around Saigon streets for a year now, Bennet said, adding that “reliable sources” have said that he is a thief and drug addict.

Bennet’s video has sparked arguments between people not wanting to be harsh on someone down on his luck and others angry about his actions spoiling the image of Westerners.

Mark Johnson, a rehabilitated offender and former drug user, an author and the founder of the charity User Voice, wrote in the Guardian:

“It’s OK by me if a homeless person spends my money on drink or drugs. When I was homeless I found it very hard to beg, but people who did give me money were preventing a crime, because the money meant I didn’t have to steal in order to eat or to feed my addiction.

“And, frankly, it’s none of your business where an addict is on his journey. If your money funds the final hit, accept that the person would rather be dead. If your act of kindness makes him wake up the next morning and decide to change his life, that’s nice but not your business either.”

The plot thickens

Kucharski speaks and understands Vietnamese well and anyone is able to converse with him in the language.

Chris Kucharski sits on street corners with a piece of paper seeking help in English and Vietnamese. This picture was taken in downtown Saigon in August last year. Photo acquired by VnExpress

A Facebook photo shows Chris Kucharski sitting on a street corner with a piece of paper seeking help in English and Vietnamese. This picture was taken in downtown Saigon in August 2017.
When asked about the harsh criticism that he has attracted on social media of late, he kept silent and bowed his head.

A street vendor on Dien Bien Phu Street said that Kucharski has been standing there for nearly four months.

“The foreign man, who looks clean and wears branded clothes, is a professional beggar. He has an ‘assistant’ who pretends to roam around the street to watch out police and camera.

Sometimes, the accomplice walks up and gives the beggar some cigarettes. “I sit and sell things every day, there’s nothing I cannot see,” the hawker said.

Several days ago, Tran Quang Hai, a guard working for a company on Dien Bien Phu Street, asked Kucharski to leave the place.

He was irritated and angered by the foreigner “taking advantage of the kindness of Vietnamese people.”

A heated quarrel broke out and Hai threatened to call police to arrest him. After this, Kucharski did not show up for a few days, but returned later, locals said.

Hopeful note

An acquaintance who also wanted to remain unnamed said she’s heard he has at least another child.

She’d also understood that “the mothers are very good people.”

One of his friends said “I don’t know how anyone can help unless Chris wants to get clean.”

Another was a bit more hopeful. She said: “He’s quite intelligent. I am sure Chris will sort himself out.”

Read full article on VNExpress.