Parkson shutdown signals full retreat?

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With one more Parkson store in Ho Chi Minh City on the edge of closure due to continuous losses, it may be time for some to question if the Malaysian ­retailer could leave Vietnam ­altogether.

While the closing of Parkson Cantavil shopping centre in District 2 of Ho Chi Minh City has yet to be officially announced, Parkson Retail Asia (Parkson) has removed the sign board from the building frontage.

Nguyen Manh Hung, owner of a fashion store in Cantavil mall where previously Parkson’s signboard was hung, said he was told Parkson had withdrawn from the mall in June. Currently, shops in the mall are dealing directly with customers instead of operating through Parkson’s system as before. Parkson’s counters were also moved out of the store.

Parkson Cantavil opened in 2013 with the investment capital of $8 million at the project in the busy Thao Dien area of District 2. If the closure takes place, the number of Parkson’s closed stores would reach five, with three in Ho Chi Minh City and two in Hanoi.

Representatives from Parkson were not available for comment. Vo Mai, head of retail from Cushman & Wakefield Vietnam, told VIR that following shut down of Parkson’s Flemington in District 11 of Ho Chi Minh City in this March, the closure of Parkson Cantavil seems inevitable.

“Watching retail trends and retail formats in Vietnam, department stores are fading, while lifestyle and destination malls are still missing from Vietnam,” Mai said. “As Parkson is staying out of the race, it is unpreventably being rejected and plans to withdraw from Vietnam in the next five years.”

According to her, lifestyle centres are a mixed-use commercial development that combine the traditional retail functions of a shopping mall with leisure amenities. This development type includes restaurants, entertainment, and amenities, and are often constructed at historic buildings or culture-oriented settings. A wide range of entertainment activities can be held in such centres, ranging from the launching ceremony of the latest automobile models to one-of-a-kind art exhibitions, fashion shows, and small pop concerts.

Destination malls, meanwhile, offer a diverse range of experiences including retail, leisure, and entertainment, all in one location. When visiting a destination mall, customers can spend several hours for entertainment, rather than simply purchasing goods. These kinds of retail developments are still few and far between from Vietnam in general, and from Ho Chi Minh City in particular.

Opening its first store, Parkson Saigon Tourist Plaza, in 2005 in Ho Chi Minh City Parkson had a total of 10 centres stretching across the nation at its peak.

When entering Vietnam, Parkson held ambitions to dominate one of the most promising retail markets in Asia. Parkson Saigon Tourist Plaza reached more than 90 per cent occupancy at its launch.

However, with time the number of visitors declined in Parkson’s department stores, leading to heavy losses for the investor. In 2015, Parkson left Keangnam Hanoi Landmark Tower to cut losses, signalling the first of other closures.

A year on, Parkson Paragon in District 7 of Ho Chi Minh City was the second store to close. Parkson Viet Tower in Hanoi followed only a few months later.

The latest store to be closed was Parkson Flemington in District 11 this past March, and now it looks to be the turn of Parkson Cantavil.

Parkson is a member of Lion Group, an international group founded in 1930 in Malaysia. The company currently operates stores in China, Hong Kong, Indonesia, Mexico, Singapore, the US, and Vietnam.

Since first appearing in Vietnam in 2005, Parkson was once the country’s largest retail chain with 10 stores nationwide, including six in Ho Chi Minh City, two in Hanoi, and one each in the northern city of Haiphong and the central city of Danang.

Since its heyday, there are now only three stores in Ho Chi Minh City in operation. Among these stores, Parkson CT Plaza has been the most effective with almost full occupation by international and domestic tenants. Located near Tan Son Nhat International Airport, this store is a popular destination among travellers. Moreover, the department store is located in Tan Binh district which is still short of large-scale trading and entertainment centres.

Meanwhile, the original Parkson Saigon Tourist Plaza welcomes few customers despite being located in the heart of District 1, due to heavy competition. Within two kilometres, potential customers can find Vincom Dong Khoi Centre and Diamond Plaza, which Parkson struggles to compete with.

Parkson Hung Vuong is showing signs of degradation, with dilapidated buildings, having not been maintained efficiently in recent times.

Parkson Retail Asia, the mother company of Parkson in Vietnam and a subsidiary of Lion Group, has also been reporting losses. It recorded negative sales performance for the fourth quarter and the full year ending on June 30, 2018. Its unaudited financial statement for the fourth quarter and the full year ending on June 30, 2018 showed declining same-store sales in its department stores in all four of its markets (Indonesia, Malaysia, Myanmar, and Vietnam), with Vietnam performing the worst.

Parkson Retail Asia finished the financial year with a pre-tax loss of $17.58 million in the last quarter of 2017 and $40.1 million for the full year.

Source: VIR

Thousands of Thanh Hoa workers strike

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More than 3,000 workers at the Ivory Vietnam Company in Thanh Hoa Province have gone on strike over the past five days to protest against the company’s policies on overtime, Dtinews reported.

On October 18, about 3,000 workers gathered in front of the company’s gate to protest against too many extra shifts. They additionally complained about poor bonuses and too expensive lunches.

“They forced us to work all day long, even during the weekends but the bonuses stay the same, from VND50,000 (USD2.13) to VND150,000. The lunch subsidies are also low. The basic wages of senior workers who have worked for five years are the same as new workers,” one worker in Hau Loc said.

Thanh Hoa General Confederation of Labour has collaborated with local authorities to ensure social order and hold a meeting with the workers as soon as possible. However, on October 24, thousands of workers still went on strike as they waited for the official decision from the company.

Hau Loc District People’s Committee announced that the district’s Party Secretary Nguyen Van Ap and the representative of Hau Loc General Confederation of Labour had worked with the company and its workers.

Vu Thi Ha, Vice Chairwoman of Hau Loc District, said Ivory Vietnam Company agreed to increase lunch subsidies from VND14,000 (60 US cents) to VND15,000 per worker. Bonuses would also be increased to VND100,000-VND200,000 and the company made a promise to follow regulations on overtime.

“Ivory Vietnam Company is seeking opinions from its mother company in South Korea about seniority payments. They may raise the payment in early 2019 for workers at all of the member companies in Vietnam,” she said.

She went on to say that leaders of Hau Loc District would soon announce the information and called for the workers to return to work.

Vietnam man fined for exchanging dollar bill at local gold shop

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A man from the Mekong Delta city of Can Tho has been fined VND90 million (US$3,850) for exchanging a dollar bill into Vietnamese currency at a local gold shop that is not licensed to provide currency exchange service.

Police raided a jewelry shop in downtown Can Tho on January 30 and found Nguyen Ca Re, 38, exchanging a 100-dollar bill for VND2.26 million in the local currency.

The shop, owned by Le Hong Luc, was not licensed to offer currency exchange service.

Re was fined VND90 million for “buying or selling foreign currency at an unlicensed establishment,” while the shop owner was subject to a heftier fine of VND180 million ($7,700) for “conducting currency exchange service without license.”

These fines were issued on September 4, more than seven months after the incident, according to Can Tho’s deputy chairman Truong Quang Hoai, who signed both civil penalty decisions.

The dollar bill and VND2.26 million in cash traded by the parties were confiscated by police officers at the time of the raid.

“I don’t understand why they waited all these months to slap me with an administrative penalty,” Luc said.

Meanwhile, Re said he is only an electrician who makes little more than VND3 million ($130) a month from his job.

The 100-dollar bill he was caught trying to cash out for some local money was a gift from a friend, he claimed.

Re added that he did not know it was illegal to exchange money at gold shops, as many of his friends also did the same without any trouble.

According to current regulations in Vietnam, foreign currencies can only be traded legally at banks or licensed counters.

Currency exchange counters are only allowed to be located at hotels ranked three stars or higher, international borders, entertainment centers intended for foreigners, and air ticket agencies.

Tourist attractions, shopping malls and supermarkets with a large volume of foreign visitors can also have currency exchange counters located within them.

Gold and jewelry shops are generally not authorized to offer currency exchange service, except a selected few that are licensed to buy foreign currencies, but not sell them.

Stores that violate these rules are subject to fines ranging from VND500 million ($21,400) to VND600 million ($25,700), while those found trading with unlicensed shops can be fined VND80-100 million ($3,400-4,300).

Repeated searches

According to Luc, police officers not only confiscated the cash involved in his transaction with Re but also conducted a thorough search through his establishment and seized droves of valuable assets.

“Even our bedroom was searched,” Luc said, adding that the officers claimed to have received a tip-off about illegal transactions done at his place.

In total, he said 20 diamonds and 19,910 artificial gems were seized along with all the shop’s inventory of white gold due to “lack of certification” and “foreign-language labels.”

Luc said the confiscated diamonds were his personal properties stored inside a private safe and were not intended for sale, so he could not provide any papers.

Police officers also took a CCTV camera installed inside the shop and returned it eight months later with all footage wiped clean, Luc claimed.

According to Luc, it was not the first time his shop had been raided by police.

In June 21017, officers also searched the establishment, seized some white gold and slapped him with a fine of VND8.5 million ($365).

“The raids have affected my business, as customers are deterred by frequent police activities,” Luc said.

Tuoi Tre (Youth) newspaper reached out to Can Tho police officers for comment on Tuesday but has not received an official response.

Source: Tuoitrenews

Vietnamese festivals wait for comeback after drug deaths in Hanoi

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A number of EDM (electronic dance music) festivals are still waiting for a comeback after the deaths of seven people who died of suspected overdoses while attending a musical festival last month that led to the halt of licensing for this kind of program across Vietnam.

The incident happened at an EDM concert themed ‘Trip to the moon’ at the Ho Tay Water Park in Tay Ho District, Hanoi on September 16.

Several outdoor music events in the northern city of Hai Phong, the northern province of Quang Ninh, Nha Trang City in south-central Vietnam, Ho Chi Minh City, Hanoi and other localities were simultaneously canceled following the tragedy.

Authorities have imposed a bruising ban on all EDM festivals in Hanoi until further notice.

The ban is a blow to the EDM industry, which netted US$7.4 billion globally last year, including $1 billion in the Asia-Pacific, according to the 2017 IMS Business Report.

Cancellations en masse

In a discussion with Tuoi Tre (Youth) newspaper, To Van Dong – director of the Hanoi Department of Culture and Sports – confirmed that the city did stop giving licenses to music festivals, which then led to the suspension of multiple EDM events.

“Although we highly agree to the EDM programs as they are the favorite playgrounds of young people, we still have to reconsider whenever such an incident recurs,” Dong said.

“The department can only talk about the licenses for EDM festivals once the police deliver a final announcement on the [‘Trip to the moon’] incident,” the director asserted.

One of the instances for these cancelations is the Ravolution Music Festival 2018 initially scheduled for September 29 at the Hanoi University of Science and Technology’s stadium.

According to a representative of the event, the show was planned one year in advance with tickets sold and remuneration already paid to invited foreign artists.

“EDM has just developed in Vietnam, now this incident happened,” the representative said, expressing concern about the future of EDM in the Southeast Asian country.

Just like him, several other music party organizers hope the deaths at the ‘Trip to the moon’ will not see the nascent rave scene brought to a premature end in Vietnam.

DJ Huy DX, who had 14 shows canceled, told Tuoi Tre that he looked forward to the day when the music festivals are licensed again.

But what makes the EDM fest organizers most worried is that the music genre is deemed a kind of music only for misbehaving youngsters, a ‘prejudice’ that used to be imposed on rock in Vietnam before.

Had it not been for outdoor music shows like Rock Storm, which often attracts thounsands of participants every year, the reputation of rock lovers and rockers as passionate people that spread positivity to the community and society would not have been there, according to Vietnamese musician Quoc Trung.

Likewise, booming numbers of hard-partying youngsters have put Vietnam on the EDM map in recent years.

Fans in turn have been rewarded with visits from DJ royalty like Martin Garrix and Hardwell to sold-out festivals.

Chance for change

Waiting for the green light from authorities, some think it is better to take the death catastrophe as a chance to change.

The organizing board of the Ravolution Music Festival said that they are trying to improve their staff’s problem-solving skills, especially in safety control, during the suspension.

Moreover, the organizer is offering tickets equipped with RFID (Radio-frequency identification), which uses electromagnetic fields to automatically identify and track tags attached to objects, to help ensure tight security at all stages when the event comes back.

“We contacted various pretisgous organizations in Europe to work on the standards of safety and security at music festivals in Vietnam,” the Ravolition representative revealed.

“We see this incident as a chance for us, who are working in the music event industry, to increase the quality of the music festivals,” he positively said.

According to a report on Tuoi Tre News

Ho Chi Minh City to hike garbage fees

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Garbage fees in Ho Chi Minh City are expected to gradually increase until 2022, as part of local authorities’ plan to raise the maximum cost of garbage pickup and transport services.

Deputy chairman of the municipal People’s Committee Tran Vinh Tuyen has recently signed a decision to increase the fees of services relating to household waste.

According to the new regulation, residents will have to pay a much bigger amount of money for garbage-related services compared to the current cost.

However, local authorities have decided to gradually raise the fees over several phases from 2018 to 2022.

The decision will take effect on November 1, but it is still unclear when the new rates will be actually applied.

The current Decision No. 88 of the city’s administration states that households along local streets are required to pay a fixed VND20,000 (US$0.86) per month, while those in alleys need to spend VND15,000 ($0.64) a month.

The new regulation, however, sets a detailed outline of three different fees, pickup, transport, and treatment, that make up the final garbage cost city-dwellers have to pay.

Pickup services will be charged at VND364 ($0.016) per kilogram.

Treatment cost is at VND475 ($0.02) per kilogram, but it is only applied from 2022 onward.

Transport fees will rise from VND40 ($0.0017) per kilogram in 2018 and 2019, to VND133.5 ($0.0057) in 2020, VND227 ($0.0097) in 2021, and finally VND247 ($0.011) in 2022.

According to the new scheme, each household is expected to pay a maximum of VND48,480 ($2.08) a month for garbage-related services in the 2018-19 period.

The municipal administration noted that the amount is the maximum fee that one family needs to pay.

The municipal Department of Natural Resources and Environment and the Department of Finance will coordinate with district-level authorities to determine the specific cost for each household.

One of the proposed methods is to decide on the average amount of garbage for each household based on the number of members, a representative from the environmental department stated.

A family of five, for example, dumpsre four kilograms of trash per day, or 120 kilograms a month, on average, he elaborated.

While many citizens are still confused by the new regulation, others have expressed their support, hoping that the higher fee will help improve the quality of such services.

Duy Khang report on Tuoitrenews

Saigon woman arrested in driving accident that killed 1, injured 5

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The Saigon woman whose drunk driving killed one person and injured five, two of them critically, was arrested Wednesday.
Binh Thanh District Police, who arrested 46-year-old Nguyen Thi Nga, are looking at charging her with traffic offences that can carry sentences of three to 10 years in jail.

Nga, a restaurant owner, was reportedly speeding on Dien Bien Phu Street and approaching the Saigon Bridge as she lost control and crashed her BMW into five motorbikes waiting at the Hang Xanh intersection traffic light.

The car only came to a halt after ramming into a taxi. A 38-year-old woman died immediately and five other were injured. Two of them are currently in critical condition with fractured skulls and spine injuries.

Breathalyzer tests showed alcohol content of 0.94 milligrams per liter. “The level showed that the driver had consumed a lot of alcohol and lost control,” a police officer said.

Nga insisted, however, that she was not drunk and was fully “conscious” at the time.

According to the police, Nga drank alcohol at her own restaurant on Pasteur Road, District 3, before driving to her house in District 12. The accident happened at around 11p.m.

Nga told the police that as she approached the traffic light, she tried to slow down, but the back straps of her high-heel footwear got entangled in the process. In her confusion, she accidently sped up instead of slowing down.

The police are continuing to investigate the accident.

Any concentration of alcohol in a car driver’s body system is illegal in Vietnam. The presence of alcohol in a driver’s blood or breath can attract fines of VND2 to 18 million ($85-767).

Road crashes are a common cause of death in Vietnam, killing almost one person every hour, according to official figures.

Quoc Thang report on Vnexpress

October 24: VN-index down as HNX-Index up

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Losses stemmed by regional recovery.

The market recovered quite well on the morning of October 24 on the back of recoveries in regional markets but the VN-Index closed down. Buying demand was quite cautious, however, with liquidity falling as a result.

The VN-Index lost 5.41 points (0.58 per cent) to 934.27 points in the morning session and the UPCoM-Index 0.23 per cent to 51.93 points, while the HNX-Index rose a mere 0.03 per cent to 105.1 points.

Total transaction volume on HSX was nearly 61 million units worth VND1.3 trillion ($55.7 million), down 28 per cent and 32 per cent compared to yesterday morning.

The biggest losers were GAS and MSN, which continued their downward turn. GAS lost 4.5 per cent to VND104,500 ($4.47) and MSN 2.1 per cent to VND75,900 ($3.25).

Among bluechips, BID lost 1.4 per cent to VND34,400 ($1.47), VPB 1.8 per cent to VND22,400 ($0.96), HDB 1.4 per cent to VND35,500 ($1.52), and ROS 2.5 per cent to VND37,000 ($1.58).

Most stocks in securities, banking, oil & gas, and real estate lost ground. Bluechips such as MWG, PNJ, VJC, HPG, BVH, CTG, and VCB did well but were not enough to stem the tide.

ACB rose 0.7 per cent, VCG 1.6 per cent, PVI 0.9 per cent, HUT 1.8 per cent, VC3 1.1 per cent, and DBC 2.6 per cent.

Conversely, PVS lost 2.5 per cent to VND29,800 ($1.27), PVB 2.1 per cent, VCS 1.4 per cent, CEO 0.8 per cent, and MBS 0.6 per cent, with reference stocks such as SHB, NVB, VCG, SHS, PGS, and NTP also losing ground.

HNX saw 43 gainers and 63 losers in the morning. Total trading volume was over 16.9 million shares worth VND221.67 billion ($9.5 million).

My Van report on Vneconomictimes

Growth in VN-Index a global high

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Index up 16.28% over the last year.

The VN-Index has recorded the highest growth in the world over the last year, of 16.28 per cent.

Vietnam’s stock market has been anything but smooth in recent months. At the close of trade on October 23 the Index was at 939.68 points; down about 22 per cent compared to its peak early in the year.

Despite the fact that Vietnam’s stock market has not always been positive it nonetheless compares well globally and growth has outpaced growth on the NASDAQ and Russell 3000.

The Index’s high growth is largely due to substantial gains made in the fourth quarter of 2017 and the first quarter of 2018, when it moved up from 820 points to a record 1,200 points, due to positive macroeconomic factors (record growth, low inflation, a stable exchange rate, and record foreign exchange reserves), the prospects of upgrading from emerging market status, and effective support from foreign cash flows.

Expectations over major listings (Vinhomes, VPBank, Techcombank, HDBank, Binh Son, PV Oil, and PV Power), also attracted investors, as did a large number of divestments.

At the beginning of the second quarter of this year, when the market went through 1,200 points, the VN-Index’s P/E was over 20 times; quite high compared to other markets in the region and which led to profit pressure from domestic and foreign investors.

Since the record high, Vietnam’s stock market has been faced with greater pressure from global economic turmoil. Concerns about an escalating trade war and US interest rate hikes were key drivers in the market’s correction.

Foreigners were net sellers (excluding large-scale deals) at the beginning of the year and this gradually cast a shadow over the market.

According to assessments from local securities companies, the stock market is now entering a period of unpredictable volatility and investors should focus on risk management rather than trying to find profits in the short term. They also suggested that the support threshold would range from 885 to 920 points.

My Van report on Vneconomictimes

Techcombank HCM City International Marathon scheduled to start in December

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The Techcombank HCM City International Marathon is scheduled to take place in December in HCM City.

Races across 42.195km, 21.1km and 10km will be held on December 2.

In addition to the three race categories, there will also be a kid’s run on December 1.

Participants will run through six districts, starting from Thảo Cầm Viên (Zoological and Botanical Garden) and run to Thủ Thiêm new urban area.

The event’s profits will help support poor families in the city.

Last year, the event raised about VNĐ600 million (US$26,000) for the HCM City’s Fund for the Poor.

The run is organised by the municipal Department of Culture and Sports and the Athletics Federation.

According to a report on VNS

Vietcombank prepares for private placement to foreign investors

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Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has come closer to a private placement of 579.7 million shares to foreign investors in a move to raise charter capital to VND39.57 trillion (US$1.69 billion).

According to the largest Vietnamese lender by market value, the State Securities Commission (SSC) on Wednesday affirmed that it received Vietcombank’s application and other relevant documents for the private placement.

Under Vietcombank’s issue plan, the bank is expected to offer 53.9 million shares, or 1.36 per cent of the bank’s total shares after the offering, to its largest current foreign investor Mizuho Bank so that the Japanese bank will maintain its holding in Vietcombank at 15 per cent.

The 305.8 million remaining shares, or 7.73 per cent of the bank’s total shares after the offering, will be offered to other foreign investors.

After completing the sale, the shares will not be transferable for one year.

Vietcombank hasn’t so far released details about the private placement. However, according to the bank’s resolution of the annual general meeting of shareholders early this year, the offering price will not be lower than the price determined by an organisation providing corporate valuation services and the market price averaged in the 10 consecutive sessions before the date investors announce to buy the shares.

Additionally, the lender will favour foreign investors with strong financial status, possibly including one or several existing shareholders of Vietcombank.

With the sale, Vietcombank expects to increase its charter capital by VND3.6 trillion to VND39.57 trillion in a move to meet a capital adequacy ratio (CAR) of at least 8 per cent as per the State Bank of Viet Nam’s Basel II norms, starting in 2020.

Vietcombank’s profit by the end of September is estimated to exceed the VND11 trillion that the bank gained in the entire 2017. The figure is up some 50 per cent against the same period last year.

With the rise, the bank is expected to soon surpass the VND13 trillion profit target set for 2018 at the bank’s annual general meeting of shareholders.

Vietcombank shares (VCB) closed Friday’s morning session at VND57,800 apiece, down 0.3 per cent against Thursday.

VPBank fixes foreign holding to prepare for private placement

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has announced a temporary foreign ownership limit at 22.532 per cent of charter capital to prepare for a private placement.

After completing the private placement, the bank will work with the Vietnam Securities Depository Centre to raise the ratio to a 30 per cent cap.

VPBank hasn’t yet released details about the private placement.

The foreign holding ratio at VPBank has fallen from 22.784 per cent to 22.532 per cent after the bank issued shares for its staff under the Employee Stock Ownership Plan (ESOP) last month. At the ESOP, the bank’s foreign employees received more than 1.3 million shares.

During the annual general meeting of shareholders (AGM) in March, VPBank chairman Ngo Chi Dung announced the bank was looking to raise capital through a private placement in the upcoming months, then lift its foreign ownership limit to 30 per cent and invite potential foreign investors to pay a premium for its stakes.

The total shares on offer for both local and foreign investors would be a maximum of 15 per cent of the common stocks on record at the time of the private placement, Dung said. VPBank’s common stocks currently are nearly 2.53 billion shares, so the total shares to be offered at the private placement will be some 379 million.

Dung noted at the AGM that the possibility for the stocks to find foreign investors was high.

According to Dung, upon the successful completion of the private placement, not only will the bank’s capital adequacy ratio be boosted to 18 per cent, but also a considerable reserve will be set aside for mergers and acquisitions, which the bank could not do in the past five years due to a lack of capital.

According to a report on VNS

Vietnam to host CFO World Congress

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Global financial issues and the economic outlook for Asia and Viet Nam will top the agenda of the 48th annual CFO World Congress to be held for the first time in Viet Nam next month.

More than 500 business leaders, chief financial officers (CFOs), financial directors and other finance executives are expected to take part in the meeting in HCM City from November 14-16.

Themed ’Transforming Finance in the Digital Age’, the congress is a platform for speakers to share expertise, assimilate new information, and delve into the future of the finance profession.

The congress will focus on policy considerations driving or hindering global and Asian growth, and the transformative potential of digital technologies.

Speaking at a press conference held in HCM City yesterday, Nguyen Ngoc Bach, chairman of CFO Viet Nam, said that digital technologies were affording finance professionals extraordinary competitive advantages while allowing them to manage risk much more proactively.

“There is no escaping the fact that today’s extraordinary digital revolution is impacting finance, and that the pace of change is accelerating at an unprecedented rate,” he said. “Looking at the contemporary economic themes, we must mention a moment of uncertainty being felt globally, caused by the effect of political problems on manufacturing activities, international trade and currency valuations.”

Bach noted that Vietnamese companies must improve financial and corporate governance to enhance their competitiveness.

To assist in that effort, the Viet Nam Association of Corporate Directors has set up the Viet Nam Chief Financial Officers Club to create a force of highly professional CFOs and financial executives who follow international rules and practices.

Topics of discussion at the congress will include critical policy, regulatory and business issues facing financial executives and business leaders in the digital age.

Cybersecurity, blockchain technology, analytics and artificial intelligence will also be discussed.

The congress is organised by the International Association of Financial Executives Institutes (IAFEI), a private nonprofit and non-political group, in collaboration with CFO Viet Nam and the Japan Association for Chief Financial Officers.

Founded in 1969, the IAFEI has 21 member institutes in the US, Asia, Europe and the Middle East, with a total membership of more than 20,000 financial executives.

Launched in 2000, the Japan Association for Chief Financial Officers supports the training and nurturing of Japanese-style CFOs.

According to a report on VNS

Vietnam National University climbs 15 places to rank 124th in QS World University Rankings 2019

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Vietnam National University, Hanoi (VNU) has climbed 15 places to rank 124th in the QS’s top 500 Regional Rankings Asia 2019 category.

According to the QS’s report which was released on October 23, Vietnam has seven universities in the list including Vietnam National University-Hanoi, Vietnam National University-Ho Chi Minh City, Hanoi University of Science and Technology, Ton Duc Thang University, Can Tho University, Danang University and Hue University.

Speaking with Dantri/Dtinews, Prof. Nguyen Huu Duc, VNU Vice President, in addition to 10 criteria as in previous years, this years’ rankings included the International Research Network for the assessment.

“VNU had some good criteria such as the Academic Reputation, Employer Reputation, Citations Per Paper, and Outbound Exchange Students,” Prof. Duc said.

According to the VNU Vice President, the World University Rankings emphasises research more than the Asia University Rankings. For example, the weight of academic reputation has been raised to 40%. In addition, the QS World rankings no longer measure institutional research quality based on an institution’s number of articles, but by calculating the total number of citations received by all papers produced by that institution’s faculty members across a five-year period (20%). The internationalisation criteria focus only on the number of international lecturers and students directly involved in teaching and learning to earn a diploma at a university (10%).

This year, 4,763 universities from 151 countries were evaluated and 1,011 universities from 85 countries were qualified for final rankings. Vietnam National University, HCM City is listed in among the 701-750 ranks on the list and Vietnam National University, Hanoi is featured in the top 801-1,000.

According to a report on DTinews

Vietnam Cold Chain Market by Cold Storage and Cold Transport, Product Type – Outlook to 2021

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Vietnam Cold Chain Market is Expected to reach USD 1.8 billion by 2021: Ken Research

Vietnam Cold Chain Market by Type (Cold Storage and Cold Transport), by Industries (Meat and Seafood, Pharmaceutical, Fruits and Vegetables, Bakery and Others), by Type of Cold Storage (Rented and Owned), by Demand for Cold Storage by Region (HCM, Hanoi and others), by Type of Cold Storage (Manufacturing Cold Storage, Trading Cold Storage And Bonded Warehouse Cold Storage), by Size of Cold Storage Firms (Small, Medium and Large), by Domestic and International Cold Transport and By Owned and Rented Cold Transport. Company profile of major players include Swire Cold Storage Vietnam Limited, Lotte Logistics Vietnam Co. Ltd, Konoike Vina, CLK Cold Storage Company Limited, Hung Vuong Corporation, Sojitz and Kokubu, Mekong Logistics Company Limited, Kuehne Nagel, Preferred Freezer Services, Panalpina, Triton Container International, DB Schenker, Agility Logistics Vietnam, APL Vietnam, Maersk Line, MP Logistics, Vinafco Vietnam

  • Vietnam’s cold chain industry is set to soar as demand for chilled and frozen food surges across the country.
  • The rise in the demand for cold chain services will be led by the expansion of the cold chain firms to other cities of the country such as Mekong Logistics Company Limited has plans of expanding to its potential markets Can Tho, Da Nang, Quy Nhon, Binh Phuoc, Hanoi, and Hai Phong in future.
  • The pharmaceutical industry is anticipated to grow at a five year CAGR of 13.4% during 2016-2021 which will further enhance the demand for cold storage and transport facilities as few pharmaceutical products require temperature controlled environment for maintaining their quality.

Ken Research in its latest study, Vietnam Cold Chain Market by Cold Storage and Cold Transport, Product Type (Bakery, Confectionary, Dairy, Meat & SeaFood, Vaccines & Pharmaceutical, Fruits & Vegetables, Chemicals) – Outlook to 2021, suggests that Konoike Vina, Swire Cold Storage, Lotte Logistics, CLK Logistics, Hung Vuong Corporation, Mekong Logistics, Kuehne Legal, Preferred Freezer Services will continue to lead the market.

The Vietnam Cold Chain Industry is estimated to register a positive CAGR of 10.4% during 2016-2021. The positive change in the number of supermarkets, launch of newer projects for cold chain, surge in manufacturing establishment and demand for seafood and meat will prosper the demand for cold storage in the coming years.

It has been witnessed that Vietnam’s domestic agriculture production is lagging behind regional neighbors Laos and Cambodia, in terms of supply chain development, with regular damage of 25-30% of fruit and vegetable yields due to a lack of refrigerated transport and storage. In the next few years, the logistics market will be upgraded as the companies and investor will initiate to put an eye on the cold chain, and their concerns will no longer be dedicated on the immediate cost but on improving the quality and overall value chain for cold chain market including storage and transport both.

There are 20 professionally managed cold storage providers and many other small independent cold storages. Yet, small cold storages are not trusted by end-users. As the leasing prices of cold storage providers do not differ much from each other, the quality of storage facilities is a key to customers. The number of cold storage provider are anticipated to increase in the coming years backed by surge in demand for better quality services by local and international establishments.

Vietnam is expected to have about 1,200-1,300 supermarkets, 180 shopping centers, and 157 department stores by 2020. Distribution centers including cold storage will also increase in number and capacity to fulfill the demand from the development of supermarkets. The market is expected to be more competitive with a few cold storage investment projects developed by both local and foreign investors. Particularly, the biggest investment is the 50,000 pallet cold storage facility in Song Hau Industrial Zone in the Mekong Delta province of Hau Giang. The project is in the initial phase and developed by Minh Phu and Gemadept Corporation with the total investment capital of USD 46.1 million. When completed it will be the largest cold storage facility in the Mekong Delta.

For more information on the research report, refer to below link:
https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/vietnam-cold-chain-market/142347-100.html

Related Reports by Ken Research:

https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/qatar-logistics-warehousing-market-report/87939-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/saudi-arabia-logistics-market-report/77655-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/philippines-logistics-report-2020-version/7988-100.html

Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com | +91-9015378249

With foreign invested capital, the e-commerce competition in Vietnam is more unpredictable than ever

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This past quarter marks the first time that Shopee has successfully claimed the top spot of e-commerce in Vietnam.

According to latest report by iPrice Group, Shopee raked in 34.5 million web visits monthly this quarter. This is a 30% increase compared to previous quarter and an impressive 197% growth since the same period last year. It also surpassed Lazada Vietnam, which had held the first place since the chart’s conception in Quarter 2, 2017.

Lazada Vietnam, despite falling to third, is not far behind Shopee in numbers. This quarter, they gained more than 30.2 million web visits per month, which is only 0.1 million less than the one coming in 2nd – The Gioi Di Dong.

However, the most interesting change this quarter is perhaps Tiki.vn’s amazing 47.59% increase, which brought them up to 29.4 million monthly web visits, their highest ever recorded.

All in all, the top 4 merchants of Vietnam ecommerce are now extremely close to each other in terms of monthly web visits: there are only about 5 million visits in difference between the number 1 (Shopee) and number 4 (Tiki.vn).

Such a close ranking has not occurred before, and it shows e-commerce in Vietnam is getting fiercely competitive.

This took place not long after Tiki.vn managed to acquire US$44 million from China’s largest retailer, JD.com, at the beginning of the year. Another platform in the top 5, Sen Do, also received US$51 million from foreign investors just last August.

In addition, Lazada Vietnam has been backed by Alibaba Group since 2016, while Shopee is a subsidiary of Singapore’s Sea Group. As such, 4 platforms out of the top 5 are known to be backed by foreign investors.

So far this influx of foreign money has proven to heavily influence the e-commerce landscape of the country as these 4 companies, plus The Gioi Di Dong, are leaving the rest of the market quite far behind in monthly web visits.

See the full rankings on iPrice here.

By Truong Dang

Apple’s vendors plan to relocate some factories to Vietnam

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The manufacturers of phone components and accessories for Apple have sent word intimating that they may relocate factories to Vietnam.

AirPods, the headphone manufacturer, has confirmed its intention to relocate its headphone production base to Vietnam.

Pegatron and Cheng Uei Precision also said they are considering expanding production overseas for the same fear of barriers in the US-China trade war.

Nguyen Binh Minh, Vice Dean of E-commerce of Hanoi Trade University, said that the relocation of production bases to non-China countries is foreseeable as investors want to avoid the problems in the trade war.

The recent moves show that Trump’s administration wants to set up a technical barrier to hinder the growth of the Chinese economy by restricting imports from China.

Investors want to relocate their factories to the areas with stable political situation, especially to countries which have free trade agreements with the US.

Vietnam can satisfy these requirements. An analyst commented that if Apple’s vendors come to Vietnam, they would bring capital and generate more jobs. They will bring high technologies which Vietnam wants receiving foreign direct investment.

Minh agrees with the view, saying that the trade war, to some extent, would benefit Vietnam. More foreign investors will come to Vietnam, set up factories and make products for export.

However, he warned that Vietnam will feel pressure from the competition. Chinese goods would flood to Vietnam as they cannot enter the US market, thus competing fiercely with Vietnam’s products.

Vietnam can get more jobs and create higher value from the new investment wave, but, with weak technical barriers and loose management, it may allow Chinese products penetrate the domestic market too easily.

In the case of Apple’s vendors, Minh said this would be a golden opportunity for Vietnam’s businesses to build up their prestige and leave a good impression on the world’s manufacturers.

This will also serve as the prerequisite for Vietnam to lure investment from big manufacturers seeking destinations other than China.

He said that Vietnam needs to prepare a high-quality labor force with workers who can fulfill the phases of modern production lines. A cheap labor force remains one of the biggest advantages of Vietnam.

Vietnam’s supporting industries still cannot develop, even though the country has been trying to develop the industries for 30 years. This is why it is still finding it difficult to squeeze into the global supply chain.

According to a report on Vietnamnet

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