Vietnam’s stock market suffered losses all round on November 13.
On HSX, the VN-Index closed at 905.38 points, down 12.74 points (1.39 per cent), and the VN30-Index 873.87 points, down 14.33 points (1.61 per cent).
On HNX, the HNX-Index finished at 102.47 points, down 0.90 points (0.87 per cent), the HNX30-Index 184.1 points, down 2.18 points (1.17 per cent), and the UPCoM-Index 51.46 points, down 0.20 points (0.39 per cent).
Liquidity on HSX was VND2.6 trillion ($111.4 million) and on HNX was VND481.9 billion ($20.6 million).
Food and beverage stocks to gain ground included TLG, SAB and BHN, by 3.8, 2 and 1.8 per cent, as VCF lost 4.1 per cent, VNM 0.9 per cent, and KDC 0.6 per cent.
In banking, BVH gained 1.4 per cent as MSN lost 5.5 per cent, BID 3.7 per cent, VCI 2.2 per cent, TCB 2.1 per cent, CTG 2 per cent, VCB 1.8 per cent, STB and SSI 1.6 per cent, VPB and MBB 1.2 per cent, and EIB and TPB 0.4 per cent.
In energy, GAS lost 2.8 per cent, PVT 2.7 per cent, PVD 2.5 per cent, PLX 2.2 per cent, NT2 1.6 per cent, and PPC and PGD 0.3 per cent.
The Top 5 shares bought by foreign investors were SBT, GMD, HPG, VHM and DXG.
VIC was the largest net sold share on HSX, followed by HDB, MSN, HCM and BID.
VCG was the largest net sold share on HNX, followed by VGC, SHB, THT and PVX.
On UPCoM, foreign investors bought 54,070 shares worth VND551.9 million ($23,645).
They net sold on HSX by VND77.1 billion ($3.3 million) and on HNX by VND3.4 billion ($145,610).
Travellers entering Vietnam need passports or valid passport-substitute papers and an entry visa issued by Vietnamese authorities except, of course, in cases where Vietnam visa exemption is granted.
Visa exemption is, naturally, the mechanism a country has in place for foreign nationals to enter and stay, for a certain period of time, without having to complete the visa procedures and pay fees related to it.
Spouses and children of Vietnamese citizens living overseas are exempt from entry visas for Vietnam along with a temporary residence duration of no more than six months for each entry, when carrying a valid passport, with one full year remaining and documents pertaining to visa exemption status.
The visa exemption period is up to five years and shorter than the expiry date of the passport or international travel document of the grantee for at least six months.
Those exempt from Vietnam visa under bilateral and unilateral visa exemption agreements. Citizens of up to 24 countries are exempt from Vietnam visa. However, the duration and conditions for these are not the same. Click here for details about who does and who does not need a visa for Vietnam.
How to get a Vietnam visa
Those who are not subject to or do not qualify for visa exemption have to apply for a visa to enter the country. Currently, there are three ways to get a visa for Vietnam:
Foreigners entering Vietnam may apply for an e-visa in the following steps:
Visit the electronic visa information page to submit electronic visa applications, photo uploads and personal identification pages in a standardised form.
Receive the electronic file code and pay the visa fee to the account specified in the electronic visa information page.
Within three working days from the date of fully receiving information on Vietnam visa applications and visa fees, the Exit and Entry Management Department (the Ministry of Public Security) shall consider, settle and reply the applicants at the electronic visa information page.
Foreigners applying for the electronic visa must use the electronic dossier code to check whether they have been successful in their application at the electronic visa information page — the electronic dossier code is used for printing the visa.
However, not everybody who needs an entry visa can use the e-visa system. Countries included in the e-visa scheme include citizens from 46 countries including Argentina, Australia, Armenia, Azerbaijan, Belarus, Brunei, Bulgaria, Canada, China, Colombia, Cuba, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Kazakhstan, Luxembourg, Mongolia, Myanmar, Netherlands, New Zealand, Norway, Panama, Peru, Philippines, Poland, Romania, Russia, Slovakia, South Korea, Spain, Sweden, Timor Leste, United Arab Emirates, United Kingdom, United States, Uruguay and Venezuela.
Applying at Vietnam embassies
Foreigners can apply for a Vietnam visa at the embassy for travelling from 1 month to up to 3 months. Vietnam visa for travelling is symbolised as DL to distinguish it with other types of visa. In order to apply for a tourist visa for foreigners in Vietnam, the following steps and procedures are required:
Foreigners will need to go to the website of the Vietnam embassy that they wish to apply with and download the Vietnam visa application form.
They then will need to print out the form, complete it, glue it with a photo and then sign it.
They then need to submit the form together with the original passport and other required documents to the Vietnam embassy together with visa fee. The documents can be submitted by post or directly depending on the embassy.
They then wait to take the passport with visa (normally 3-5 working days). The passport can be sent back via post or they need to get it directly at the embassy.
Apply for Vietnam visa on arrival.
What is Visa On Arrival?
To enter any country, the first thing is to apply for a visa of that country (except for visa exemptions). The visa application process often includes too many steps and quite time-consuming. Visa on arrival, also known as airport-based visa, is the best option for those who are away from the embassy or have unexpected visits without having enough time to apply for a visa as normal.
Vietnam visa on arrival allows you to obtain an entry visa at the airport upon arrival in Vietnam, provided that you have a visa approval letter applied online in advance. This visa procedure is very simple, which does not cost you time.
Visit the website of the company providing the visa on arrival service to fill the application form. After that, you pay the service fee through your bank account.
After two or three working days, you will receive the approval letter via the registered email.
Print the approval letter and bring it along with your suitcases, take the plane to Vietnam as planned.
At the airport, you submit the approval letter, passport, photos and pay the stamping fee. That’s it!
Vietnam visa on arrival is the most convenient way to apply for a Vietnam visa. You do not have to spend a lot of time to go to the embassy many times and especially, it is useful if you need a visa in a quick way.
Vietnam’s immense potential in information technology, cloud computing and big smartphone coverage are serving as key propellants for the country to materialize its dream to successfully develop its digital economy.
Quint Simon, head of Public Policy in Southeast Asia of Amazon Web Services (AWS, a subsidiary of Amazon) last week had a discussion in Vietnam for the potential to develop digital economy in the context of Industry 4.0.
At a workshop themed “Unlocking the full potential of Vietnam’s digital economy”, she surprised hundreds of participants by citing an AWS study which stated that Vietnam is one of the countries in the world that has the highest rise in expenditure for cloud computing, at 64% per year.
“I believe that Vietnam will soon become a nation with a digital economy. Cloud computing is a favorite in Vietnam where many enterprises are using cloud for their performance,” said Simon, “Using cloud means firms can completely protect their information without being stolen, For example, Amanotes, a fast-growing app publisher, currently has hundreds of millions of users. It is typical of Vietnamese firms with cloud computing,” she continued. “In another case, Masan is also using cloud to manage its stores in Vietnam. It has been a big trend that many Vietnamese agencies and enterprises are seeking our support in cloud applications.”
Jake Jennings, executive director of International and Regulatory Affairs of AT&T, an American multinational conglomerate holding company headquartered at Whitacre Tower in the US’ Texas, also said that he saw Vietnam’s great potential in developing a digital economy as the country’s bright landscape for IT, cloud computing and wide smartphone coverage.
“This will help Vietnam create many new jobs in the near future,” Jennings said.
Since 2007, AT&T has been boosting its presence in Vietnam. Currently it is co-operating with many firms in the country, including VNPT and Viettel. It is now exploring opportunities to expand its partner networks in the country.
Harnessing disruption for further development
As of June 2018, Vietnam had about 136 million mobile phone subscribers. Some 54.2 percent of the country’s population are using internet. Still, in terms of digital adoption, Vietnam currently shows both strengths and shortcomings.
Internet penetration is 54 percent, and 40 percent of Vietnam’s population are social media users. These numbers are impressive, according to the World Bank in Vietnam.
“In order to forge ahead, or even leapfrog regional peers, Vietnam must upgrade the way its government functions” said Ousmane Dione, World Bank country director. “Three types of government relationships are critical: government-to-government, government-to-business, and government-to-citizens. Technologies can help in many ways if we can embrace them strategically to reverse potential disruptions to these relationships.”
Dione expressed his belief that a three-factor formula, or a tripod, is necessary for Industry 4.0 to really help Vietnam achieve its development aspirations: technologies, institutions, and people. Investing in research and development will be critical for Vietnam to join the frontiers of Industry 4.0. “Made in Vietnam” should be replaced with “Researched and developed in Vietnam”, Dione stressed.
According to the European Chamber of Commerce in Vietnam (Eurocham), Vietnam is catching the eyes of the world, with a strong inflow of foreign direct investment. Many foreign investors wish to invest in digital solutions in the country, which is now beginning to develop smart cities amid an expansion of urbanization.
Currently Vietnam, which is among the top 20 countries in the world having the most stable political climate, is ranked one of the top 10 nations in the world using Facebook the most. In the near future, Vietnam will deploy its 5G internet service and digitize many sectors in the economy.
“ICT and digital technology have been helping Vietnam develop strongly,” said Eurocham’s co-chair Denis Brunetti, who is also president and head of Vietnam and Myanmar at Ericsson.
“For Vietnam, we estimate that 5G addressable revenues for operators can increase by up to US$1.1 billion by the year 2026, depending on where they are in the value chain. It’s no surprise that 18% of this opportunity is coming from manufacturing,” he said.
Vietnam is striving for sustainable growth on the basis of improving the quality of growth and taking advantage of the opportunities of the Fourth Industrial Revolution to increase its labour productivity and competitiveness and move up the ladder in the global value chain.
“Vietnam is working to be one of the world’s top 10 biggest software and digital content outsourcing service nations, with about one million employees in the IT field by 2020,” said Mr. Bui Thanh Son, the Deputy Foreign Minister.
Vietnam’s lawmaking body, the National Assembly, on Monday unanimously ratified a landmark 11-country deal that will slash tariffs across much of the Asia-Pacific.
According to local media report, Vietnam yesterday became the seventh country to ratify a Pacific trade pact set to take effect next month.
Eleven countries revived a slimmed-down version of the Trans-Pacific Partnership (TPP) without the US, though the new pact keeps the door open in case of a change of heart – or government – in the world’s largest economy.
Australia last month became the sixth country to ratify the now-renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), paving the way for the pact to come into force at the end of December with more than half of its members officially signed on. AFP reports.
Vietnam followed suit with a unanimous vote by lawmakers to approve the deal. Mr Nguyen Van Giau, head of the National Assembly’s external relations unit talk to the media .”This is an important political decision, affirming our country’s active role in international integration”
Vietnam’s fast-growing export economy stood to gain enormously from open access to US markets, a key outlet for cheap manufactured goods such as Adidas shoes and Gap T-shirts, before Mr Trump pulled the plug on the US’ participation, he decried it as a “job killer”.
The protectionist President called the deal a “death blow for American manufacturing” and singled out Vietnam for taking jobs he would rather see on his home turf.
The trade pact was spearheaded by former US president Barack Obama who dubbed it a “gold standard” for 21st-century trade rules – and a crucial counter to China’s rising global economic might.
The deal will bind members to a tougher legal framework for trade, lower tariffs and open markets. It will also introduce new labour standards – a sticking point for communist Vietnam, where all labour unions are controlled by the one-party state. The establishment of independent unions “may bring about some challenges”, Mr Giau said, but added Hanoi was open to making the necessary reforms.
Even without the US in the mix, the CPTPP has been described as a game changer. It covers many rapidly growing economies that account for around 14 per cent of world trade.
Members have said the US would be welcome to rejoin any time, and have even opened the doors for non-Pacific countries like Britain to join.
The Hanoi Tourism Association has been working to promote a smoke-free environment in restaurants, hotels and tourism spots in the capital city.
The initiative is meaningful as it adds to the sector’s effort to protect scenery in the city’s attractions while creating a clean and attractive tourism environment for tourists.
At a conference held recently, travel agencies agreed upon measures to develop a smoke-free tourism environment such as no purchasing and advertising tobacco under any form.
They also committed to regularly advise tourists not to smoke in non-smoking areas.
“We support the initiative in promoting a smoke-free tourism environment as up to 80 percent of tourists do not smoke,” said Trinh Thi My Nghe, Deputy Chairwoman of the Hanoi Tourism Association.
Meanwhile, Nguyen Trung Quan, Director of Avitour Company pointed out that it will be a very difficult task.
“Through many ways, I will try to consult, advise, and talk with tourists and ask them not to smoke in tourism spots,” he said.
Travel agencies and hotels at the event have signed an agreement to abide by the Law on Tobacco harm Prevention, aiming to develop smoke-free unit model.
As of the end of September 2018, Hanoi welcomed nearly 20 million tourists, including 4.45 million foreigners.
Most of the foreign holidaymakers to the city come from Asia countries, particularly the Republic of Korea and Japan, as well as those in Europe such as the UK, France, Germany and Norway, among others.
A farm supervisor who allegedly put needles in strawberries did so out of spite, a Brisbane court has heard.
Key points:
The 50-year-old has been charged with seven counts of contaminating goods
The charges are understood to relate to one of the original cases
Strawberry growers say the impact of the contamination scare “crippled” the industry
My Ut Trinh, 50, will remain in custody after her lawyer withdrew an application for bail in the Brisbane Magistrates Court.
She was arrested in Brisbane on Sunday, two months after Queensland Police fronted the media to warn about punnets being contaminated with needles.
Ms Trinh worked as a supervisor at the Berry Licious farm, but her lawyer said she did not work picking strawberries or in the packing sheds.
The court heard the woman was allegedly acting out of spite and that it was an act of sabotage.
“The case that is put is that it is motivated by some spite or revenge,” Magistrate Christine Roney said.
“She has embarked on a course over several months of putting a metal object into fruit.”
Prosecutor Cheryl Tesch opposed bail as there was “an unacceptable risk of witnesses being interfered with”.
But Ms Trinh’s lawyer Michael Cridland said police had “not articulated” an actual alleged grievance.
The prosecution told the court the woman should also be kept behind bars for her own safety.
“There may be retribution from people seeking to locate her,” Prosecutor Tesch said.
However, Mr Cridland said there had been no evidence of direct threats towards his client.
Police have charged Ms Trinh with seven counts of contamination of goods with intent to cause economic loss.
The offence normally carries a three-year maximum penalty.
However, police allege there is a circumstance of “aggravation”, meaning the maximum jail term is increased to 10 years.
The court heard the woman’s DNA was found in a punnet of strawberries in Victoria.
Superintendent Jon Wacker, from the Queensland Police Drug and Serious Crime Group, said the investigation “was far from over”.
“DNA evidence will be part of the brief of evidence that will be submitted to the court,” he said.
Superintendent Wacker said items seized in Victoria had played an important role.
“This is a major and unprecedented police investigation with a lot of complexities involved,” Superintendent Wacker said in a statement.
“The Queensland Police Service has allocated a significant amount of resources to ensure those responsible are brought to justice.”
The contamination saga spread from Queensland across the country.
Superintendent Wacker said there were 186 reports of sewing needles being found, 77 of which were in Queensland.
He said 15 of those were found to be hoaxes.
Sixty-eight strawberry brands were affected, including 49 in Queensland.
The contamination scares resulted in supermarkets pulling strawberries off the shelves, and tonnes of the fruit was dumped at the peak of the growing season.
Picture of a needle found inside strawberries in Queensland and published by Queensland Police on September 13, 2018
The Queensland and West Australian governments both offered $100,000 rewards for information leading to the arrest of the person or people responsible, while Prime Minister Scott Morrison introduced tougher fruit-tampering laws that would see those convicted face greater jail time.
‘I had to put 100 staff off’: Industry still reeling from crisis
Suncoast Harvest managing director Di West said her business had to leave more than one million punnets of strawberries on the ground, after the original and a number of copycat cases sent prices crashing.
“We had to finish our season very early, by nearly six weeks, in our peak season because of the crisis in September,” she told ABC Radio Brisbane.
“We had at least a million punnets of strawberries out there and we had to cease production straight away.
“There was so much copycatting and pranking going on that other farms, including ours, was being dragged into it.”
She said there were still a lot of unknowns for her business moving into the future.
“I had two separate agronomists tell us we had lost $1 million worth of fruit and that meant that $300,000 or $400,000 of that would have gone to workers’ wages — and now that money hasn’t been spent in the local economy,” she said.
“There’s flow-on effects — I had to put 100 staff off.”
Ms West said Australian customers had been very supportive, but she feared the industry’s reputation had been damaged internationally.
She had fruit stuck in New Zealand and Singapore at the peak of the crisis, which she was unable to sell.
“We had it X-rayed and everything to prove it was perfectly good, but the way this thing just escalated into basically a nuclear bomb going off … we just got caught up in it. So we’ve lost a lot of money.”
Grower Gavin Scurr from Pinata Farms at Wamuran said the arrest provided relief and peace of mind for fruit producers.
“It’s certainly been a rollercoaster ride for us and hopefully something we don’t see again in our industry,” Mr Scurr said.
Queensland Strawberry Growers Association vice president Adrian Schultz thanked police for their work.
“We’re just grateful that they pursued and continued to pursue their lines of inquiry and have come up with this result,” he said.
He said he hoped the industry could move on.
“This should put a full stop to this situation,” he said.
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.
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.
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.
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.
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.
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.
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.
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.
