Vietnam named among 9 countries impacted of climate change: Report

Advertisements
  • Vietnam is among the most vulnerable nations to climate change impacts according to a recent International Panel on Climate Change report.
  • The country’s diverse geography means it is hit by typhoons, landslides, flooding and droughts, weather events expected to worsen in coming years.
  • Research has found that Vietnam is also home to abundant renewable energy potential, which could help alleviate some of these threats.

October 2018, the Intergovernmental Panel on Climate Change (IPCC) released a new report on the potential impacts of a 1.5C rise in global temperatures above pre-industrial averages. The report found that massive, destabilizing climate events could start impacting global society as soon as 2040, within the lifetime of most people alive today.

Within the report, which was presented to the Vietnamese government in Hanoi on October 10, Vietnam was named among nine countries where at least 50 million people will be exposed to impacts of rising sea levels and more powerful storms, among other dangers.

“The most pressing threats facing Vietnam over the next couple of decades is that Vietnam is among the top countries vulnerable to climate change,” said Dao Xuan Lai, head of the Climate Change and Environment Unit at the United Nations Development Programme’s Vietnam office, in an interview. “There will continue to be extreme weather events as present, but coming faster than anticipated, more intense, more frequent and more difficult to predict.”

Vietnam’s geography leaves it vulnerable to a number of calamities. Most of its 1,800 mile-long coastline faces the East Sea, which numerous tropical storms and typhoons traverse every year. The mountainous far north is prone to landslides and flash flooding, while the flat Mekong Delta in the deep south is among the most vulnerable regions in the world to rising sea levels.

Mekong River landscape. Image by WWF-Cambodia.

Lai believes this reality presents huge climate change-related challenges for Vietnam.

“In 2017, the final storm of the typhoon season came in late November, which is normally already the dry season in the past,” he said. “So it came with very strong winds and also heavy rain and caused a lot of landslides and flooding in different areas. Since it came during a different season, people were not prepared, and the losses were big.”

The Mekong Delta’s vulnerability is an especially significant problem due to its economic vitality. According to the UNDP, the fertile region produces roughly 70 percent of Vietnam’s agricultural products, including around 55 percent of rice and 70 percent of all aquaculture. Most of these products are exported, and in 2017 agricultural exports earned Vietnam $37 billion, nearly 17 percent of its total GDP.

“So agricultural development in Vietnam not only helps Vietnam’s food security, but also contributes to global food security as well,” Lai explained. “With climate change and sea level rise, the projection is that if sea levels increase by up to 3.3 feet, 40 percent of the Mekong Delta will be inundated, so we would lose 40 percent or even more of agriculture and aquaculture production.”

A severe drought which struck the region in 2016 offered a potential preview of what is to come if climate change continues unabated. Without fresh rain water, the sea worked its way up the many rivers and canals which crisscross the delta.

“In some rivers the saltwater intrusion reached up to 56 miles from the sea,” Lai said. “In Ben Tre Province, basically the entire province was without access to [fresh] water. So people didn’t have water for their daily lives or their livestock, and all economic activities were affected. A lot of things were impacted and people were forced to move.”

Meanwhile, the northern mountains present growing dangers to the people living there. “In at least 15 northern provinces near the border with China, heavy rain often causes landslides, and these landslides are almost impossible to predict,” Lai explained. “It’s a combination of so many factors, including deforestation and agricultural practices, but now heavy rain can come anytime and be very heavy and very concentrated. We cannot predict which slope or mountain will turn into a landslide.”

Therefore, the UNDP specialist argues, people need to be better aware of the dangers present in their specific location, and ultimately make the decision of whether staying in place is worth it as the climate changes.

“They have to decide whether they continue to stay in a certain area that a number of generations have already stayed in,” Lai shared. “Now, the context has completely changed.”

Melissa Merryweather, director of Green Consult-Asia and chair of the Vietnam Green Building Council, believes Vietnam’s major cities present the greatest risk if the IPCC’s findings come to fruition. “The Mekong Delta is kind of unique, it’s one of the few places in the world where you have a regular flooding season, and people have been living for centuries in that area and adapting on a seasonal basis,” she explained.

She goes on: “But when you’ve got the urban settings, that changes drastically because these gentle rural adaptations just don’t transfer.”

Solar panels atop an Intel facility in Ho Chi Minh City, Vietnam. Photo courtesy of Intel via Flickr.

Ho Chi Minh City, Vietnam’s largest urban area and economic engine, is of particular concern, as explosive growth has led planners to develop swampy areas to the south and east that previously acted as floodplains.

“Recently, because the city is expanding and because that land is cheap, billions and billions of dollars in investment is pouring into these areas,” Merryweather said. “This is where it becomes a game-changer.”

The Saigon River, a broad, shallow waterway that flows through the city, is already causing high-tide flooding in several districts, leaving roads and businesses swamped even without any rain. This issue is expected to be exacerbated by sea level rise.

“So you combine all of this, the fact that you’ve got billions of dollars in investment in low-lying areas, and flooding reserves being built on, so you’re going to lose that function they’ve always had in the flood cycle, and then with sea level rise it’s a recipe for disaster,” Merryweather stated.

While much of the information regarding climate change in Vietnam is dire, there is reason for hope. Lai explained that UNDP studies have found that the country retains massive potential for renewable energy, the development of which could help offset damage caused by greenhouse emissions.

“We found that Vietnam has available up to 85,000 megawatts of solar, and 21,000 megawatts of wind,” he shares. “If we combine these two figures and if Vietnam can develop all of them before 2050, for example, and we compare it with the figure of total electricity to be installed in Vietnam by 2030, which is 130,000 megawatts, it’s actually very close.”

This will take immense investment from both the public and private sectors, but the energy is there for the taking.

Lai’s message for individuals, meanwhile, is to get educated.

“People need to be more aware and enrich their knowledge about the change in climate,” Lai said. “It’s coming faster and becoming more difficult to predict, so we need to prepare…and express that knowledge so that we can protect ourselves, our relatives and the people.”

 

Reporting by Michael Tatarski, read full article on  Mongabay

Vietnam Car Rental Market Outlook to 2021

Advertisements

Growing Car Rental Companies Mobile Applications coupled with Rise in Number of Tourists will drive the growth of Vietnam Car Rental Market: Ken Research

  • Growing mobile applications of the car rental companies will prove to be a growth driver for Vietnam Car rental industry.
  • Increase in the number of tourists in the country will drive the demand for car rental services.
  • Growth in businesses will further increase the demand for car rental services.

The cab aggregator companies such as Uber and Grab run on the mobile app business model and the popularity of these apps has been rising with elevated internet penetration and increase in number of smart phone users. Various car rental players such as Vinasun, Hertz, Avis and others are also shifting to mobile apps to increase the convenience for customers and to increase the consumer base.

Ken Research in its latest study, Vietnam Car Rental Market Outlook to 2021 suggests that the car rental market in Vietnam is fragmented and nascent, which provides immense opportunity to global and local players to tap the market with technology advancements in the Car Rental industry. This will further lead to various acquisitions and mergers in this industry making a positive impact on the market in terms of revenue generation.Vietnam

Car Rental market is estimated to register a positive CAGR during 2016-2021. Increasing traffic, lack of parking space, convenience, rising tourism, entry of players in the market and promotions and discounts offered to attract the customers will be the key drivers for the growth of the car rental industry in the country.

Tourism industry is on the rise in Vietnam which has made a positive impact on the car rental industry in the country. Few trends that have led to increase in Vietnam tourism include the rise in Chinese and Koreans travelers to the country accounting for 48.0% and 34.0% year on year growth respectively. In addition, 15-day visa-free policy for France, Germany, UK, Spain, Italy and Belarus increased investment in air travel infrastructure. The tourists prefer to use car rental services for travelling to popular destinations and also purchase these services in travelling to and from airport. Tourist destinations in Vietnam including Saigo Notre Dame Cathedral, Temple of Literature, Hoan Kiem Lake, My Khe Beach, Khai Dinh Tomb, Imperial Citadel and others attract visitors leading a positive impact on the car rental services market in the country.

The corporate clients purchase car rental services for meetings with high class individual clients or for employees. These are generally short distance trips. The car rental business has been gaining popularity from this segment over time due to increase in the awareness about the car rental services coupled with the increase in the corporate sector in the country. The popular destinations for the corporate clients include Saigon High Tech Park Entrance, Saigon High-Tech Park, Quang Trunk Software city and KCN VSIP. These clients prefer the medium car and luxury car model. The increase in companies will lead to rise in the corporate clients making a positive impact on the market.

The report provides information on Vietnam car rental market, market segmentation, future growth drivers & competitive landscape of few companies including Vinasun, Mai Linh, Avis, Vina Rent A Car, VN Rent A Car Co. Ltd, Budget, Uber and Grab.

To know more, click on the link below:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-car-rental-market/137557-100.html

Related Reports by Ken Research:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-car-rental-market/136319-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/thailand-car-rental-market/137098-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/india-car-rental-market-research-report/594-100.html

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

Vinasun suit against Grab delayed again

Advertisements

The HCM City People’s Economic Court has once again adjourned the suit filed by taxi operator Vinasun against ride-hailing service Grab, which accuses it of unfair business practices and demands compensation.

The court said on Monday the trial would resume on November 22 after more evidence is collected.

“Cửu Long company, which assessed the losses suffered by Vinasun, was not represented in court and many details need to be clarified.”

It explained that defining the losses would be very important and affect the entire trial.

Vinasun, once a dominant player in the southern taxi market, has seen its market share gradually taken away by Uber and Grab since 2016. Some 2,700 of its taxis are idle because of unfair competition, it has claimed.

Grab, which recently acquired Uber in Vietnam, continues to grow in popularity, especially since the number of smartphone users in the country is rising.

Vinasun claimed the “illegal” operations of Grab in Vietnam were to blame for a fall in its revenues by VNĐ41.2 billion (US$1.756 million) in 2016 and 2017.

A Vinasun spokesperson said his company had based its complaint on the Trade Law and Government’s Decree 37 issued in 2006, which clearly states that the duration of total promotions in a year must not exceed 90 days and each promotion programme should not last beyond 40 days.

Exploiting the lack of clear regulations for software-based transport services, Grab offered “rampant” promotion deals and discounts, including “zero fee” trips, which was similar to dumping of manufactured goods, he said.

According to a survey done by market research company Quốc Việt, 74 per cent of Vinasun customers have already moved to Grab due to low fares and frequent promotions.

Vinasun said while it needs to comply with 13 regulations, Grab has to follow only three, creating unfair competition.

According to a report from the Ministry of Finance, in the 2014-17 period, Grab annouced losses of more than VNĐ1.7 trillion ($74 million) while its registered capital was only VNĐ20 billion ($870,000).

The HCM City People’s Procuracy said there is enough evidence to prove that Grab is a taxi company, and it has violated multiple transport regulations and the Enterprise Law.

Jerry Lim, Grab’s CEO in Vietnam, said the procuracy had no business putting a label to company.

Earlier, he had written to Prime Minister Nguyễn Xuân Phúc.

There was a large crowd of drivers from Vinasun and Mai Linh, another well-known taxi company, outside the court on Monday, anxious to know the outcome of the suit.

The public has wondered, in the event Grab is penalised, what would happen to other online businesses like Airbnb in Vietnam.

This was the third adjournment since the lawsuit was first heard last February.

Source: Dtinews

All 189 on board crashed Indonesian jet feared dead

Advertisements

All 189 passengers and crew aboard a crashed Indonesian Lion Air jet were “likely” killed, the search and rescue agency said Monday.
The Boeing-737 MAX, which went into service just months ago, vanished from radar 13 minutes after taking off from Jakarta, plunging into the Java Sea moments after it had asked to be allowed to return to the Indonesian capital.

Websites that display flight data showed the plane speeding up as it suddenly lost altitude in the minutes before it disappeared.

“My prediction is that nobody survived because the victims that we found, their bodies were no longer intact and it’s been hours so it is likely 189 people have died,” search and rescue agency operational director Bambang Suryo Aji told reporters.

Some 40 divers are part of about 150 personnel at the scene, authorities said, with the plane in water about 30 to 40 meters deep.

Earlier, video footage apparently filmed at the scene of the crash showed a slick of fuel on the surface of the water and pictures showed what appeared to be an emergency slide and bits of wreckage bearing Lion Air’s logo.

The carrier acknowledged that the jet had previously been grounded for unspecified repairs.

The plane had been en route to Pangkal Pinang city, a jumping off point for beach-and-sun seeking tourists on nearby Belitung island, when it dropped out of contact around 6.30 a.m. (2330 GMT).

It was not yet known if there were any foreigners on board.

Images filmed at Pangkal Pinang’s main airport showed families of passengers crying and hugging each other, with some yelling “Oh God.”

“This morning he called asking about our youngest son,” said a sobbing Ermayati, referring to her 45-year-old husband Muhammed Syafii, who was on board.

Indonesia’s National Transportation Safety Committee (NTSC) said there were 178 adult passengers, one child, two infants, two pilots and six cabin crew on board flight JT 610.

The transport ministry had initially said there was a total of 188 people on board.

The finance ministry said around 20 of its employees were on the plane.

Among them were half a dozen colleagues of Sony Setiawan, who was supposed to be on the flight but missed check in due to bad traffic.

“I know my friends were on that flight,” he told AFP.

Setiawan said he was only informed about his lucky escape after he arrived in Pangkal Pinang on another flight at 9:40am.

“My family was in shock and my mother cried, but I told them I was safe, so I just have to be grateful.”

Lion Air said the plane had only gone into service in August.

The pilot and co-pilot had more than 11,000 hours of flying time between them and had recent medical checkups and drug testing, it added.

Lion Air CEO Edward Sirait said the plane had an unspecified technical issue fixed in Bali before it was flown back to Jakarta.

“Engineers in Jakarta received notes and did another repair before it took off” on Monday, Edward Sirait told AFP, calling it “normal procedure”.

Poor safety record

U.S.-based Boeing said it was “deeply saddened” by news of the crash.

Boeing, just days out from its first commercial delivery of the 737 MAX in May last year, reportedly suspended its release due to an engine issue, according to airline safety and product review site airlineratings.com.

It said the engines were a product of a joint venture between U.S.-based General Electric and France’s Safran Aircraft Engines.

Earlier this year, Lion Air announced it was buying 50 Boeing 737 MAX 10 jets for $6.24 billion.

Indonesia’s air travel industry is booming, with the number of domestic passengers growing significantly over the past decade, but it has acquired a reputation for poor regulation and its airlines had once been banned from U.S. and European airspace.

In August 2015, a commercial passenger aircraft operated by Indonesian carrier Trigana crashed in Papua due to bad weather, killing all 54 people on board. In 2014, poor maintenance and the pilots’ inadequate response was blamed for the crash of an AirAsia plane crashed with the loss of 162 lives.

Lion, a low-cost airline which has engaged in a huge expansion in recent years, has been involved in a number of incidents including a fatal 2004 crash and a collision between two Lion Air planes at Jakarta’s Soekarno-Hatta airport.

Source: Vnexpress

EU trade pact can reduce Vietnam’s reliance on China, US

Advertisements

The Vietnam-EU trade pact can diversify export markets and help reduce reliance on China and the U.S., experts say.
On October 17, the European Commission submitted the EVFTA for signature and conclusion to the European Council.

Once authorized by the Council, the agreement will be signed and presented by the end of this year to the European Parliament for ratification. The European Parliament is set to ratify the EVFTA early next year.

The trade pact, which has been negotiated since June 2012, is considered a game changer as it would eliminate almost all trade tariffs between the two sides.

Luu Bich Ho, former head of the Vietnam Institute for Development Strategies under the Ministry of Planning and Investment, said that the deal would play a major role in reducing Vietnam’s reliance on the U.S. and China, the world’s two largest economies.

“This is obviously an opportunity for Vietnam to increase export [to the EU] to avoid being affected should the U.S. seek to limit imports from Vietnam,” Ho told VnExpress International.

It’s also a chance for Vietnam to diversify its markets as it is still heavily dependent on China in trade, he added.

In the first nine months this year, the U.S. was Vietnam’s largest export market, accounting for 19.5 percent of Vietnam’s total exports, a growth of 13.2 percent year-on-year, according to Vietnam Customs.

Although the EU came second and accounted for 17.4 percent, this market has the smallest growth rate among Vietnam’s top six export markets at 10.5 percent.

China was the third largest export market, had the highest growth rate of 29.9 percent. It was also Vietnam’s largest import market, accounting for 27.3 percent of Vietnam’s total imports.

Experts have expressed concern that Vietnam will be negatively affected by the ongoing U.S.-China trade war, with the U.S. limiting exports from Vietnam as part of its protectionist policy and China could export its goods via Vietnam to the U.S. to avoid President Trump’s tariffs.

In this context, the EVFTA opens the door to a more diverse market for Vietnam.

Le Dang Doanh, former head of the Central Institute for Economic Management, said that the trade pact will be an opportunity for Vietnam to see strong growth in its major export sectors, such as textile, fisheries and footwear.

The EVFTA, when ratified, will immediately remove tariffs on 65 percent of the value of EU exports, with the remaining tariffs being gradually eliminated over the next decade.

Meanwhile, 71 percent of EU imports from Vietnam will be tariff-free once the EVFTA enters into force, rising to more than 99 percent over the following 7 years.

In July, Minister of Industry and Trade Tran Tuan Anh said that the 99 percent tariff-free rate for exports will be the highest rate for Vietnam in any FTA.

Anh told reporters that if the EVFTA goes into effect next year, exports from Vietnam into the EU could increase by $16 billion in the first one or two years, and reach $75-76 billion in 2028.

Last year, trade turnover between Vietnam and the EU reached $50.4 billion, in which Vietnam’s exports to EU reached $38.3 billion and EU’s exports to Vietnam reached $12.1 billion.

However, others experts have cautioned about the difficulties that Vietnam will face in complying with the new trade pact.

Nguyen Mai, chairman of the Vietnam Association of Foreign Investment Enterprises, said that Vietnam needs to pay close attention to the intellectual property rights as the EU has strict regulations concerning this matter.

The country also needs to improve its labor rights to make sure that workers are protected and not oppressed.

“We need to guarantee good living conditions for Vietnamese workers, as that’s what the EVFTA requires,” he told VnExpress International.

Source: Vnexpress

Traffic accidents drop 8.2% in 10 months

Advertisements

As many as 14,845 traffic accidents have been reported during the first 10 months of this year, killing 6,674 people and injuring 11,549 others, according to the General Statistics Office of Vietnam (GSO).

The number of traffic accidents was 8.2% lower than that of last year, while the number of deaths and slight injuries fell by 2.2% and 19.3%, respectively but the number of serious injuries increased by 1.2%.

According to the GSO’s report, from September 16 to October 15, the country saw 1,603 traffic accidents, down 11.2% against the same period last year. Those accidents tragically claimed the lives of 662 people (down 5.7%), injured 430 (down 14.5%) and slightly injured 800 others (down 19.4%).

Among the most serious accidents in the period was an accident on September 23 in Dien Bien province resulting in the death of one person and three injuries.

Some other serious accidents included one on September 30 in Ba Ria-Vung Tau province which left two dead and five injured, a railway accident on October 2 in Ha Dong district in Hanoi causing five injuries, a bus crash on October 8 in Gia Lai province leaving one dead and six injured, and a motorbikes collision in Thai Nguyen Province on October 24 leaving three dead and four others injured.

Source: Dtinews

October 30: VN-Index loses 0.01%

Advertisements

HSX down while HNX up.

Vietnam’s stock market had a mixed day on October 30.

On HSX, the VN-Index closed at 888.69 points, down 0.13 points (0.01 per cent), while the VN30-Index closed at 874.06 points, down 0.37 points (0.04 per cent).

On HNX, the HNX-Index finished at 101.72 points, up 0.55 points (0.54 per cent), the HNX30-Index 182.46 points, up 0.41 points (0.23 per cent), and the UPCoM-Index 51.21 points, up 0.27 points (0.53 per cent).

Liquidity on HSX was VND2.5 trillion ($107.2 million) and on HNX was VND413.6 billion ($17.7 million).

Food and beverage stocks to gain ground included VCF, TLG, KDC, BHN and SAB by 5.9, 3.1, 1.2, 1 and 0.1 per cent, as VNM lost 2.2 per cent.

Gainers in banking were VCB, MSN, BVH, TPB, MBB and CTG by 2.5, 2, 1.8, 0.6, 0.5 and 0.5 per cent, as BID lost 4.5 per cent, STB 0.4 per cent, and VPB 0.2 per cent.

In energy, PGD and PVT gained 2.7 per cent, GAS 2.1 per cent, PVD 2 per cent, PPC 0.9 per cent, and PLX 0.4 per cent, as NT2 closed at its opening price.

The Top 5 shares bought by foreign investors were VJC, VNM, GAS, VCB and MSN.

HSG was the largest net sold share on HSX, followed by HPG, CTD, BVH, and HBC.

MAS was the largest net sold share on HNX, followed by DAE, VCS, SRA and PLC.

On UPCoM, foreign investors bought 240,700 shares worth VND11.4 billion ($448,755).

They net bought on HSX by VND295 billion ($12.6 million) and on HNX by VND5.75 billion ($246,520).

Huyen Thanh report on Vneconomictimes

Moody’s takes positive actions on Vietnamese banks

Advertisements

Moody’s Investors Service has today upgraded the long-term local and foreign-currency issuer ratings and long-term local-currency deposit ratings of five Vietnamese banks, and affirmed the same for the other 11 Moody’s-rated banks in Vietnam. Moody’s also upgraded the long-term foreign-currency deposit ratings of two Vietnamese banks, and affirmed the same for the other 14.

At the same time, Moody’s has upgraded the long-term Counterparty Risk Ratings (CRRs) and Counterparty Risk Assessments (CRAs) of eight banks and affirmed the same for the other eight. Finally, Moody’s has upgraded the baseline credit assessments (BCAs) and Adjusted BCAs of 12 banks and affirmed those for the other four.

The affected banks are: (1) An Binh Commercial Joint Stock Bank (ABB), (2) Asia Commercial Bank (ACB), (3) Ho Chi Minh City Development JSC Bank (HDBank), (4) JSC Bank for Foreign Trade of Vietnam (Vietcombank), (5) JSC Bank for Invstmnt & Developmnt of Vietnam (BIDV), (6) Lien Viet Post Joint Stock Commercial Bank (Lien Viet), (7) Military Commercial Joint Stock Bank (Military Bank), (8) Orient Commercial Joint Stock Bank (OCB), (9) Saigon – Hanoi Commercial Joint Stock Bank (SHB), (10) Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank), (11) Tien Phong Commercial Joint Stock Bank (TPBank), (12) Vietnam International Bank (VIB), (13) Vietnam JSC Bank for Industry and Trade (VietinBank), (14) Vietnam Maritime Commercial Joint Stock Bank (MSB), (15) Vietnam Prosperity Jt. Stk. Commercial Bank (VP Bank), and (16) Vietnam Technological and Comm’l JSB (Techcombank).

In the case of Sacombank, the outlook was changed to stable from negative. The ratings outlooks on the ratings of the other 15 rated Vietnamese banks remain stable.

The rating action reflects Moody’s expectation that the strong economic growth evident in Vietnam will support the asset quality and profitability of the banks. To capture these developments, Moody’s increased Vietnam’s Macro Profile to “Weak+” from “Weak”.

Please click here for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

The upgrade of the BCAs of 12 Vietnamese banks is driven by the higher Macro Profile, and also by these banks’ progress in writing off legacy problem assets.

UPGRADE OF BIDV, VIETCOMBANK, AND VIETINBANK’S BCAs

The upgrade in the banks’ BCAs largely reflects improvements in asset quality. Funding and liquidity for these banks are stable, a result of their relatively lower reliance on market funds.. At the same time, capital remains a weakness for all three.

UPGRADE OF ABB, ACB, MILITARY BANK, OCB, TPBANK, VIB AND TECHCOMBANK’S BCAs

The upgrade in these banks’ BCAs reflects improvements in their standalone credit strength, particularly progress in writing off legacy problem assets, and in the case of OCB, TPBank and Techcombank, a strengthening of their capitalization.

Moody’s expects profitability for these seven banks to improve over the next 12 — 18 months as the burden of credit costs reduces.

UPGRADE OF VP BANK’S BCA

The upgrade of VP Bank’s BCA takes into account its high profitability and strong capitalization, which offset the high credit risks from its consumer finance portfolio.

UPGRADE OF HDBANK’S BCA

The upgrade in HDBank’s BCA reflects improvements in the bank’s capitalization and profitability. At the same time, this rating action also takes into account the impending merger between HDBank and Petrolimex Group Commercial Joint Stock Bank (PGBank, unrated), a small private sector bank in Vietnam.

Based on the two banks’ financials for 2017, the key credit metrics of the merged entity, with the exception of asset quality, will be broadly similar to that of HDBank.

Moody’s calculates the proforma problem loan ratio of the merged entity — including loans under categories 2-5 of Vietnamese accounting standards, and gross bonds issued by the Vietnam Asset Management Company (VAMC) — to be at around 6.8%, while that of HDBank is 4.9%.

Post-merger, Moody’s expects the merged entity’s return on tangible assets to decline because of higher credit and operating costs. Moody’s expects funding and liquidity for the bank to remain stable.

AFFIRMATION OF MSB, SACOMBANK, SHB, AND LIEN VIET’S BCAs

The affirmation of MSB, SHB, and Lien Viet’s BCAs reflects Moody’s expectation that the banks’ credit profiles will broadly remain stable over the next 12 – 18 months.

The solvency of these banks is modest compared to that of other rated Vietnamese banks, but somewhat balanced by their funding and liquidity.

The BCA of Sacombank was affirmed because the bank still faces a significant risk from its problem assets, which exceeded 20% of total assets as of 30 June 2018.

The adjusted BCAs of all rated Vietnamese banks are at the same level as their BCAs as we do not factor in any affiliate support for these banks.

GOVERNMENT SUPPORT ASSUMPTIONS REMAIN UNCHANGED FOR ALL THE AFFECTED VIETNAMESE BANKS

Moody’s factors in the assumption of a “Very High” probability of government support in times of need into the ratings of the three government-owned banks — Vietcombank, BIDV, and VietinBank — and a “Moderate” probability of government support in times of need into the ratings of the remaining rated private sector banks.

Moody’s government support assumption is also driven by the relative systemic importance of these banks to the Vietnamese banking system as well as, in the case of government-owned banks, their ownership structures.

The upgrade of ACB, Military Bank, and Techcombank’s long-term local and foreign currency issuer ratings and long-term local-currency deposit ratings, as well as HDBank and OCB’s long-term local and foreign currency issuer and deposit ratings was driven by the upgrade in the banks’ BCAs.

Similarly, the upgrade in the long-term CRRs and CRAs of ABB, ACB, Vietcombank, Military Bank, TPBank, VIB, VP Bank and Techcombank was also driven by the upgrade in the banks’ BCAs.

The foreign currency deposit ratings of all rated Vietnamese banks are capped at B1, because Vietnam’s country ceiling for foreign currency deposits is B1.

OUTLOOK ON SACOMBANK’S RATINGS CHANGED TO STABLE

The outlook on Sacombank’s ratings was changed to stable from negative, to reflect its stabilized solvency profile and some progress in the recovery of problem assets.

WHAT COULD MOVE THE RATING UP

The long-term bank deposit and issuer ratings of these Moody’s-rated Vietnamese banks could be upgraded if the sovereign rating is upgraded and/or if the banks post improved standalone credit metrics that lead to higher BCAs.

WHAT COULD MOVE THE RATING DOWN

The long-term bank deposit and issuer ratings of these Moody’s-rated Vietnamese banks could be downgraded if the sovereign rating is downgraded. At the same time, the long-term ratings of Vietcombank, BIDV, and VietinBank could also be downgraded if Moody’s assesses that government support for these banks has weakened.

The BCAs of these Moody’s-rated Vietnamese banks could be downgraded if their financial fundamentals deteriorate significantly. If all other rating factors are constant, the BCAs would come under adverse pressure if the banks report significantly increased problem loan ratios or significantly reduced capitalization. A material deterioration in funding and liquidity could also be negative for the ratings.

The principal methodology used in these ratings was Banks published in August 2018. Please see the Rating Methodologies page on http://www.moodys.com for a copy of this methodology.

  1. An Binh Commercial Joint Stock Bank (ABB), headquartered in Ho Chi Minh City, reported total assets of VND88,586 billion ($3.84 billion) as of 30 June 2018.
  2. Asia Commercial Bank (ACB), headquartered in Ho Chi Minh City, reported total assets of VND309,968 billion ($13.45 billion) as of 30 June 2018.
  3. Ho Chi Minh City Development JSC Bank (HDBank), headquartered in Ho Chi Minh City, reported total assets of VND191,293 billion ($8.30 billion) as of 30 June 2018.
  4. JSC Bank for Foreign Trade of Vietnam (Vietcombank), headquartered in Hanoi, reported total assets of VND977,682 billion ($42.42 billion) as of 30 June 2018.
  5. JSC Bank for Invstmnt & Developmnt of Vietnam (BIDV), headquartered in Hanoi, reported total assets of VND1,268,267 billion ($55.03 billion) as of 30 June 2018.
  6. Lien Viet Post Joint Stock Commercial Bank (Lien Viet), headquartered in Hanoi, reported total assets of VND175,833 billion ($7.63 billion) as of 30 June 2018.
  7. Military Commercial Joint Stock Bank (Military Bank), headquartered in Hanoi, reported total assets of VND333,203 billion ($14.46 billion) as of 30 June 2018.
  8. Orient Commercial Joint Stock Bank (OCB), headquartered in Ho Chi Minh City, reported total assets of VND90,831 billion ($3.94 billion) as of 30 June 2018.
  9. Saigon – Hanoi Commercial Joint Stock Bank (SHB), headquartered in Hanoi, reported total assets of VND303,930 billion ($13.19 billion) as of 30 June 2018.
  10. Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank), headquartered in Ho Chi Minh City, reported total assets of VND400,686 billion ($17.39 billion) as of 30 June 2018.
  11. Tien Phong Commercial Joint Stock Bank (TPBank), headquartered in Hanoi, reported total assets of VND126,533 billion ($5.49 billion) as of 30 June 2018.
  12. Vietnam International Bank (VIB), headquartered in Hanoi, reported total assets of VND127,238 billion ($5.52 billion) as of 30 June 2018.
  13. Vietnam JSC Bank for Industry and Trade (VietinBank), headquartered in Hanoi, reported total assets of VND1,140,117 billion ($49.47 billion) as of 30 June 2018.
  14. Vietnam Maritime Commercial Joint Stock Bank (MSB), headquartered in Hanoi, reported total assets of VND123,299 billion ($5.35 billion) as of 30 June 2018.
  15. Vietnam Prosperity Jt. Stk. Commercial Bank (VP Bank), headquartered in Hanoi, reported total assets of VND293,112 billion ($12.72 billion) as of 30 June 2018.
  16. Vietnam Technological and Comm’l JSB (Techcombank), headquartered in Hanoi, reported total assets of VND300,405 billion ($13.04 billion) as of 30 June 2018.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. Visit http://www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Read full press release from Moody’s here

Halloween in Vietnam

Advertisements

Halloween was introduced to Vietnam in a touristy way, Halloween night in Vietnam is basically formalistic with the main purpose is just to have fun.

Halloween, the most anticipated holiday of October, although originated from Western culture, is starting to migrate and adapted by more and more Eastern countries. On the day, candies are being stocked up, decoration is being hung and the excitement is going up, Halloween’s spirit has already been in the air since October begins and has no sigh of cooling down. However, as much as the traditional concept of the holiday is still being reserved through its spreading, Eastern Halloween versus Western Halloween is much different from each other.

Vietnamese also celebrate and enjoy Halloween parties. As Vietnamese people believe that when a person dies, the soul goes to hell where it is judged based on its behavior from the earth to be sent to heaven or kept in hell and souls in hell can gain release by the prayers of the living, Halloween is of closest ritual to the Vietnamese when naked hungry souls fly out and return to the family altars.

With the symbolized pumpkin engraved with deformed head on a typical black-and-orange theme, Halloween is becoming increasingly popular in Vietnam, especially in the major cities. Halloween parties are mostly held at backpacker areas, usually in coffee shops, bars and restaurants.

Both foreigners and Vietnamese are amazed at the popularity of Halloween in Saigon

The most and properly the crowded area in Ho Chi Minh City (like any other big cities) is the center. Bui Vien Street, Ho Chi Minh backpacker area, will be the place to go if you want to experiment the true spirit of the holiday. Lights will be up all night and there will be many “ghosts” as well as “devils” wandering along the street, they will “gladly” give you a minor heart attack by suddenly jump out and scare you, and they will laugh with you when you realize it was all for good fun.

There are many activities for Halloween party but the most popular activity which appears at almost every party is wearing Halloween costumes. At coffee shops scary movies are often played until midnight while bars and restaurants offer appealing Halloween deals with uniquely Halloween dishes such as blood soup made by tomato and musk sticks or Tombstoned biscuits with the engraved R.I.P letters.

The more upscale hotels tend to throw a buffet party with a $20 – $40 ticket and invite singers and dancers to stir up the party.

Coca-Cola plans to build $300m factory in Vietnam – reports

Advertisements

The Coca-Cola Company is set to open a new $300 million production facility in Hanoi, Vietnam.

According to a report by Nhan Dan Online, a state-owned media channel, the announcement was made by Coca-Cola’s regional director, Calin Dragan, bottling investments group ASEAN and Middle-East, in a meeting with Vietnam’s prime minister Nguyen Xuan Phuc.

Coca-Cola is currently seeking a suitable location in Hanoi for the plant, and the new $300 million facility would be Coca-Cola’s fourth production plant in Vietnam.

The new facility will reportedly produce both traditional Coca-Cola beverages such as Coca-Cola, Fanta and Schweppes, and more nutritious products such as Fuze Tea, which will be made using Vietnamese materials.

The report also claimed that the Coca-Cola would seek to build a further production facility in Ho Chi Minh City, Vietnam in the future.

Popular noodles in Vietnam return to Japanese origins

Advertisements

Fans of the popular “Hao Hao” instant noodles originally marketed for Vietnam will soon be able to enjoy the spicy and sour shrimp-flavored variety in Japan.

According to a report on The Asahi Shimbun, Osaka-based Acecook Co. will start marketing the packages by targeting retailers dealing with Vietnamese foodstuffs in the Kanto region in November of this year.

Demand for the noodles has soared owing to a surge in Vietnamese working or studying in Japan and wanting a “taste of home.”

Vietnamese represent the third-largest foreign group in Japan, after Chinese and Koreans and numbered 291,000 as of June 30, a five-fold increase from the end of 2012.

The product will be imported from Acecook Vietnam, which is expected to sell for about 98 yen (87 cents).

Junichi Kajiwara, the Vietnam arm’s general director, who decided to market the product in Japan in an unusual case of reverse-import, said, “We want to support Vietnamese who are working hard in Japan.”

Many Vietnamese love eating instant noodles in the morning, and the country ranks fourth in the world in consumption of such products, following China, Indonesia and Japan.

The launch of “Hao Hao” in 2000 in Vietnam prompted the growth of noodle consumption in the country. Now, 1.4 billion packages are sold annually, representing a 30-percent market share.

Until now, the product has been exported from Vietnam to 40 deferent countries all over the world.

A single package sells for about 3,500 dong (17 yen) in Vietnam. But a carton of 30 packages sold over the Internet through brokers goes for about 3,000 yen, a hefty markup.

The noodles are so popular that Vietnamese purchase them by the carton when they are specially sold during events in Japan.

4,000 fires and explosions broke out in Vietnam

Advertisements

A total of 3,776 fires and explosions broke out across Vietnam in the first 10 months of 2018, 91 people were killed and 235 others injured.

The fires and explosions also caused property losses of some 69.5 million U.S. dollars, said the officials of Vietnam’s Fire Prevention and Fight Department on Monday.

In October alone, Vietnam faced 368 fires and explosions which claimed nine human lives, injured 11 people, and left losses of 4.5 million U.S. dollars.

In the first 10 months, the Southeast Asian country suffered 3,464 fires and explosions, which left 85 people dead and 220 others injured, and caused losses of 65.2 million U.S. dollars.

Foreign Investments booming in Vietnam

Advertisements

Despite a decreasing global trend, the amount of foreign direct investment (FDI) in Vietnam grew by 92.2 percent, surpassing 15 billion dollars in the first 10 months of 2018.

The Ministry of Planning and Investment (MPI) indicated on Monday that during this period, 2,458 new projects were authorized under this regime, and of the already existing ones, 954 increased their capital or bought shares for 6.543 billion dollars, a year-on-year growth of 35.8 percent.

From January to October of 2018, the bulk of FDI was placed in the processing and manufacturing industry (13.279 billion dollars), real estate (5.714 billion dollars) and wholesale and retail (2.385 billion dollars).

In mid-October, the United Nations Conference on Trade and Development (UNCTAD), said that in the first half of the year, FDI flows fell by 41%globally, reaching around 470 billion dollars, far from the 794 billion that circulated in the same period of 2017.

The analysis of the agency associated the decline to factors such as the tax reform in the United States at the end of 2017, which expanded the repatriations carried out by the head offices of U.S. companies of income accumulated abroad by their subsidiaries.

According to James Zhan, Director of the Investment and Enterprise Division of the UNCTAD, the panorama in this sense ‘continues being somber.’

As of August 20, 2018, there were 26,500 FDI projects with a registered capital of 334 billion dollars were activated in Vietnam.

The local authorities attribute the growing flow of foreign capital to the international prestige of the country, its responsible presence in multilateral mechanisms and the superior categorization of its business environment.

Cable car failure leaves passengers stranded aloft, frightened in Vietnam

Advertisements

Multiple riders took fright when Vietnam’s longest cable car abruptly halted, leaving them trapped in mid-air over water for more than an hour on Saturday.

The incident played out at around 3:00 pm on a sweltering afternoon on the Hon Thom Cable Car in Kien Giang Province, located in southwestern Vietnam.

The passengers, including children and elderly people, felt tired and very worried at the time when they were accompanied by no staff member from the cable car operator.

The Hon Thom Cable Car in Kien Giang Province, southern Vietnam. Photo: Tuoi Tre

A rider called an emergency number and received the news that a switch from one electric generator to another had caused the cable car to stall.

He was reassured that the problem would be handled in only five minutes.

Support towers of the Hon Thom Cable Car in Kien Giang Province, southern Vietnam. Photo: Tuoi Tre

But an hour passed without the situation improving, and passengers began making numerous telephone calls for help.

“That was the first time I had taken a cable car ride, but I found myself dangling in mid-air for over one hour without drinking water while the temperature was really scorching,” Nguyen Ngoc Tan, a 62-year-old passenger, recalled.

“I called my family, and they cried because of anxiety.”

Nguyen Huu Tuynh, deputy director of Sun Group, the Hon Thom Cable Car’s developer, said that all stranded passengers eventually came to the terminal safely.

Sun Group extended apologies to the riders and refunded their cable car fares, Tuynh said.

A power glitch prompted the cars to stop, he confirmed.

The Hon Thom Cable Car in Kien Giang Province, southern Vietnam. Photo: Tuoi Tre

The Hon Thom Cable Car stretches around 7,899 meters from a town on Vietnam’s tourist mecca of Phu Quoc Island to the neighboring smaller islands of Hon Roi and Hon Thom.

The ropeway, launched in February, was recognized by the Guinness World Records as the world’s longest non-stop three-rope cable car.

A terminal of the Hon Thom Cable Car (red marker) in Kien Giang Province, southern Vietnam, is seen in this Google Maps rendition. Photo: Tuoi Tre

The cable car system has 69 cabins, offering free Wi-Fi, with a capacity of up to 30 passengers each, and they can move at the maximum speed of 8.5 meters per second.

Its largest support tower stands about 174 meters above sea level.

According to a report on Tuoi Tre News

October 29: VN-Index sheds 0.85% in morning session

Advertisements

Market grappling with pessimistic sentiment among investors.

Positive signs in Asian stock markets weren’t reflected in Vietnam on the first day of the new week, with the VN-Index losing 9 points at one stage in the morning session.

Trade was relatively quiet. Bottom buying was quite weak and only seen at very low prices, while sellers only accepted selling in the high price range, resulting in low liquidity.

At 10am the VN-Index had fallen 3.19 points (0.35 per cent) to 897.63 points, while both the HNX-Index and UPCoM-Index rose. The matching order value was a low VND550 billion ($23.6 million), with investors remaining cautious.

Oil and gas stocks were active, with PVS, PVD, PVB, PET and PGS rising. Banking stocks such as ACB, CTG, BID, MBB, SHB, HDB and TCB also gained, helping the market become more active compared to early on.

At the end of morning session the VN-Index was down 7.62 points (0.85 per cent) to 893.2 points, the HNX-Index 0.03 points (0.03 per cent) to 101.76 points, and the UPCoM-Index 0.04 points (0.07 per cent) to 51.09 points. Total matching value was only VND1.4 trillion ($60.1 million).

Many stocks still managed to gain ground, such as BVH, FPT, GMD, HAG, VHC, VRE, PVS, and PVD.

Foreigners net sold overall by VND20 billion ($858,835) – VND35 billion in net selling on HSX and VND15 billion in net buying on HNX and UPCoM.

Bluechips such as VRE, VJC, MWG, PNJ, FPT and GMD rose, with BVH, GAS, HPG, MSN, HSG, VHM and PLX doing particularly well.

Given the existing market trends, Bao Viet Securities (BVSC) said that investor sentiment is quite pessimistic and there has been some level of panic in the short term. The market may need to fall further to create a more balanced supply and demand.

The VN-Index is supported by the SMA100 area of 884-885 points. The mid-term trend in the market is turning negative, so BVSC believes it may soon penetrate the support range in the near future.

In the short term, the Index is falling significantly as the Bollinger Band continues to go down. This may cause the market to break its old bottom of around 885 and retreat to the next support level of 860-870 points.

My Van report on Vneconomictimes

Exit mobile version