Lee Jae-yong, Samsung scion to leave for Vietnam this week

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Lee Jae-yong, the Samsung Electronics Vice Chairman will head to Vietnam this week on a business trip aimed at checking Samsung’s key smartphone production lines amid a decline in its global market share, industry sources said Sunday.

Lee is scheduled to leave on Tuesday and stop at Hanoi and Ho Chi Minh city, sources familiar with the matter told Vietnam Insider. The purpose of the trip is to check factories in Vietnam and meet with government and industry officials there, according to the sources.

The sources declined to give further details about itineraries of Lee Jae-yong, citing that part of his schedule is yet to be determined.

It will be seventh overseas trip of Lee Jae-yong since he was released from jail early this year on a suspended prison term for bribery conviction linked to a corruption scandal involving a previous South Korean president.

Samsung is the largest foreign investor in Vietnam and accounts for around a quarter of the country’s total export revenue. Samsung has invested $17.3 billion in eight factories and one research and development center in Vietnam, turning the country into its largest smart phone production base.

VDSC Weekly Market Recap: Top Picks, PPC, PME, DGW, EV, HAX, FRT, MBB

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It was another tough week for Vietnamese equities as losses accelerated and the VNIndex pulled back 6% WoW. October’s losses are now to 11%, which puts Vietnam as one of the worst performers in the region this month, just after Korea (-15.5%) and China (-11.1%).

This week the VNindex had been tracking the DJIA and Nasdaq composites for 4 of 5 days, and investors were hoping that Thursday’s big US bounce back would reflect itself in Friday’s trading in Vietnam. However, the VNindex closed at 900.82 on Friday.

Besides the market systematic risk, the O&G sector also received bad news from the global oil prices’ declines. The Brent price hit -4.76% on October 22nd, prolongs its downtrend since the beginning of this month. It’s the same for the WTI. So, on the Vietnamese O&G stock board, GAS declined 9.1%, PVD -13.4%, and PVS -8.2%.

Retail and Financial services were the hardest hit sectors this week, although performance was weak across the board.

Though they turned net buyers on Friday, foreign investors were net sellers for most of the week. They offloaded VND553 billion (USD24mn) worth of stocks on HOSE.

Fortunately, liquidity has been relatively stable. The average of the HOSE’s matching values is approximately VND3,400 billion (USD152mn), +18% compared to the average of the last week. Fears of margin calls were overblown as brokers have been managing quite attentively their risks since the summer rout.

Though Vietnam is trading at a premium to historic valuations, we believe it continues to offer a combination of growth backdrop and decent earnings expectations for corporations. 26 of 57 stocks under our coverage announced their business results for 9M 2018. Six companies announced better than expected earnings results, while three came in under our analysts’ forecasts. The rest were in-line with our forecasts.

Top Picks

HDB: Ho Chi Minh Development Bank

Market Cap: USD1.46bn

RoE: 14.9%

P/E (18F): 13.15x

P/BV: 2.4x

Dividend yield: 3.78%

Rationale and risks:

· Diverse customer ecosystem supports its retail-banking strategy. HDB has close partnerships with Vietjet Air and some major retail-oriented companies with large and nationwide customer bases such as Petrolimex, Vinamilk and Saigon Coop. The bank is exploiting this customer ecosystem to grab more share by cross-selling its products, which enables it to expand its credit and NIM efficiently. In the first half of 2018, the bank’s lending growth was +16%, the second highest in the industry, driven by retail lending (+40% YTD). NIM continued to improve from 3.7% in 2017 to 3.9% in H1 18. Total operating income grew significantly (+46% yoy), while operating expenses were well-managed (+12% yoy), leading to a significant improvement in the cost/ income ratio. We expect NIM to reach 4% by the end of the year.

· The merger with PGBank was approved by the Central Bank (SBV) in Q3 18. We think this is a wise move to support HDB’s retail banking strategy as it strengthens its customer base and transaction network. These advantages are crucial to the bank’s sustainable growth considering: (1) we are seeing increased competition in retail and SME banking; and (2) the SBV is closely monitoring credit expansion.

· Maintaining current high margins in consumer finance can be challenging due to increasingly intense competition in the industry. The government might start to tighten regulations due to recent negative feedback regarding lending rates.

DXG: Dat Xanh

Market Cap: USD382mn

RoE: 25.9%

P/E (18F): 9.5x

EV/Ebitda: 6.1x

P/BV: 1.91x

Dividend yield: 0%

Rationale and risks:

· Established as a brokerage firm, Dat Xanh Group leveraged its business into real estate development, based on its knowledge and customer database. Accumulated at low cost, its huge land bank could be gradually transformed bringing cash flow and value to the company.

· Active developer by acquiring land bank and developing projects, mainly targeting the mid-end segment. DXG secured land bank at a reasonably low cost. Most of the land bank is located in Ho Chi Minh City, in District 7, 2, 9 and Thu Duc.

· One-off income: DXG could get earnings from transferring a hospitality project in Phu Quoc, namely Grand World. It is estimated at VND 400-500 billion profit if successful, equivalent to an EPS of VND 1,000.

· The company is one of the leaders in brokerage services in both two key markets in Vietnam: Hanoi and Ho Chi Minh City. Furthermore, DXG also aggressively expanded its coverage into other potential markets across the country. The company employs over 1,000 people.

· DXG may sell a 40% stake to strategic investors.

· In term of performance, we suppose that there is a very low possibility for maintaining the growth rate of nearly 40-50% from the past two years. We assume that the growth rate of revenues will be 20% per year for the next three years. 2018’s guidance is feasible thanks to hand-over of residential projects and brokerage segment. We estimate total revenue and NPAT will be VND 4,000 (+38%) and VND 1,029 billion (+37%) in 2018. Valuation:

· Using the RNAV method, the fair value of DXG is around VND 36,000, 25.4% higher than current price.

ACV: Airport Corporation of Vietnam

Market Cap: USD7.4bn

RoE: 16%

P/E (18F): 29x

EV/Ebitda (18F): 22x

Dividend yield: 1%

Price target: VND 120,000 (+50% from current market price)

Rationale and risks:

· Manages, operates and exploits all 22 airports in the country. True monopoly.

· Passenger growth during the 2005-16 period was 19% per year, the highest in Asia Pacific. We foresee that at least for the next two years, traffic growth will stay robust.

· The Government has allowed ACV to raise fees it charges airlines by between 10 and 40%, depending on the airport.

· Non-aeronautical revenues per passenger in Vietnam airports is very low at one dollar per person. In Thailand and Malaysia, it is around four to five dollars. There is room for this to expand as Vietnam’s airports start focusing on non-aeronautical businesses.

· Small free float and low liquidity since the Government owns 95% of the company.

QNS: Quang Ngai Sugar

Market Cap: USD 521 mn

RoE: 24.4%

P/E (18F): 9.3x

EV/ Ebitda: 5.7x

P/BV: 2.3x

Dividend yield: 3.7%

Rationale and risks:

· Huge potential in the soymilk market. Even with an 84% market share, Vinasoy, a QNS brand, has not reached more than 50% of households in rural area and 65% of households in urban area, equivalent to 52 mn people in Vietnam. Soymilk consumption is 280 mn liters in 2018 so far, an average of 6.8 liters per year per capita. However, Vinasoy only sells about 2.9 litres per year per capita. There is more upside.

· New products will enhance the competitiveness of QNS in the soymilk market. Currently, QNS is a leader in the northern part of market but the company is facing fierce competition in the South. We expect that a new product – Fami Go- introduced in the second quarter will diversify the portfolio of products as well as increase competitiveness. QNS expects that there will be six mn liters added to the total soymilk consumption this year and another 40 mn liters in 2019

· QNS is on the way to improve its sugar segment. Along with expanding the An Khe Sugar to a capacity of 18,000 tons sugarcane per day, QNS has been increasing the sugarcane area as well as productivity. We believe that QNS can compete with Thai Sugar.

· Biomass is a stable segment. The capacity of the biomass plant is not that big but it is generating a stable cash-flow.

Should you like to speak with our analysts about any of these stocks, please let me know.

Rong Viet Securities Equity Research Summary

Company Report

Pha Lai Thermal Power JSC (HSX:PPC) – (Initiation, BUY, VND23,000, UPSIDE 44%)

· 3Q18 performance: lower contract volume hit core earnings but NPAT still grew due to less provision expenses, VND 163 billion, corresponding to a growth of 8% YoY.

· The reversal of financial expenses from FX differences in 2016 is expected to be recognized in 4Q 2018, making it a potential catalyst for PPC’s business results. With the reversal amount of up to VND125bn, we estimate that 4Q18 earnings could increase by 136% YoY to VND214bn.

· Regarding 2018 business results, we estimate that NPAT could rise by 28% YoY to VND 1,093 billion due to the large one-off income from the reversal of the expense from FX differences

· The stock is trading at 17.x current EPS of VND2,680. Furthermore, at its current price, it is trading at ~0.9x P/B. Cash dividend is expected at VND2,500.

Analyst Pinboard

Pymepharco Joint Stock Company (HoSE: PME): Update on EGM

· The EGM of PME today has approved the following:

o Lifting the FOL from 49% to 100%

o Allow its largest shareholders, STADA Service Holding B.V or/and related parties to increase its ownership from 49% to a maximum of 72% without a public offering.

o Four new members from STADA were added to the BOD.

· We see this as a preparation for STADA to retain its influence in the Vietnam market, since it will withdraw from the STADA Vietnam J.V after 2019.

· According to Bloomberg, M&A deals in the pharmaceutical industry have an average EBITDA multiple of 13.3x and P/B multiple of 3.2x

· The price the acquirers would pay for PME would range from VND80,000 to VND110,000/share.

· PME can complete to lift FOL within this year.

· Our current target price for PME is VND 96,000/share.

Digiworld (HoSE: DGW) – 9M Results Update

· In the first nine months, DGW posted an impressive growth in both revenue (VND4.383tn, 62.6% YoY) and profit (VND78.3bn, 37.8% YoY). FMCG is still at the very early stage of development.

· Xiaomi seems to be penetrating well into the middle-priced segment as it offers “Low Price – Great Specifications”, smartphones with premium hardware and quality.

· In September, DGW and Nokia HMD signed a contract in which Digiworld will become the official distributor of Nokia products in Vietnam (please refer to our note in 9/28/2018).

· To sum up, we believe this company will have a good year in 2019, mainly driven by the mobile phone and office equipment segments.

· In the long term, DGW targets to make the FMCG segment the main profit contributor. However, the FMCG segment is still very small and the company has to prove it can adapt to a very different business.

Everpia (HoSE: EVE) – Update on Business Results

· It focuses on the middle class and high-end customers, its gross margin is quite impressive (bedding: 28%, padding: 49%).

· During the first 8 months, net revenue achieved VND716.9bn (+31% YoY), its NPAT recorded VND55.2bn (+26% YoY).

· Bedding sector is the core business activity with its gross margin of around 30-35%, EVE targets to keep stable its revenue growth rate of 20% per annum.

· Padding sector has the excess of gross profit margin (~49%), mainly exports to Korea market (over 50%).

· For 2018, BoD expects to increase its revenue to VND106.259bn (+24% YoY), increase the proportion of domestic market from 10% to 15%.

· EVE is cooperating with Byuck Chang Ho and KingKoil

· EVE is planning to issue the convertible bond to foreign markets

· Dividend policy for years is expected at VND1,000/sh in the coming years.

· We recommend to add this stock in the watchlist.

Hang Xanh Motors Service JSC (HoSE: HAX) – Optimistic 2018 Outlook

· The first Mercedes cars restarted to be imported from Germany in late August. We therefore believe that 4Q18 is a promising quarter for HAX’s performance.

· Improvement market share during 9M 2018 is in line with expectations of HAX’s management team.

· In 3Q18, revenue was up +26% YoY to VND1.142tn, but profits went down -23% YoY

· In the first nine months, revenue and NPAT reached VND3.280tn (+18% YoY) and VND64bn (+9% YoY), respectively.

· 2018 outlook is still optimistic, suggesting a positive 4Q performance with 2018 earnings reaching VND124bn (+47% YoY).

· Our target price for HAX is under revision. We will update it in an upcoming report.

FPT Digital Retail JSC (HoSE: FRT) – 9M Result Update

· FRT posted a 9M revenue of VND11.033bn (+20%) and profit of VND227.4bn (+30%) yoy.

· Regarding F.Studio – the Apple Authorized stores, 9M revenue was VND 301 bn (+25% yoy).

· On the other hand, the Long Chau pharmacy chain is doing as expected. The 17 stores earned VND 254 bn of sales in nine months.

· According to the new decision from the Ministry of Health, all drugstores must have a management software up and online by Jan 2020, favorable for modern drugstores such as Long Chau.

· To sum up, with the current saturating ICT market, all major retailers are expanding into new businesses to maintain their growth. We believe that Long Chau is a suitable model and FRT’s experience in running small shops will make the difference in a very fragmented market.

· We maintain a target price of VND 84,000 for FRT in one-year term.

Military Commercial Joint Stock Bank (HoSE: MBB) – Updates on 3Q2018 Business Performance

· PBT reached VND6.015tn, +50.3% YoY, fulfilling 88.6% of the entire year’s guidance.

· Lending growth rate slowed down under tighten credit control by SBV.

· Net interest income still grew positively in spite of slowing momentum, reaching ~VND10.43tn (+31% y-o-y).

· Non-interest income in 9M2018 accounted for 24.5% of TOI. This proportion increased from 20.4% in 9M17 and 19.1% for the entire year of 2017.

· Operating costs were well-controlled, accounting for 39.9% of TOI and provision expenses are lower than our expectations, accounting for 13.5% of TOI.

· It is noteworthy that the NPL ratio increased from 1.3% in 2Q2017 and 1.2% in 2017 to 1.6%, much higher than our expectations.

· Though the growth momentum is slowing down due to the stagnation in outstanding loans since 2H2018, MBB is still amongst a few banks that expect to improve NIM further.

· Provision expense in 4Q18 is expected to reach VND887bn. Total 2018 PBT is forecasted to reach VND7.023tn.

· MBB is currently trading at VND 21,050, about 42.5% lower than our target price of VND 30,500. We thereby reiterate a Buy rating on the stock.

VinFast Will Introduce Electric Vehicles In Vietnam

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VinFast is a new brand from Vietnam, which unveiled at the 2018 Paris Motor Show its first two conventional cars – the VinFast LUX A2.0 sedan, based on the BMW 5-Series and VinFast LUX SA2.0 SUV, based on the BMW X5. Both of those vehicles were designed by Pininfarina.

The company licensed BMW platforms and turbocharged 2.0-liter I-4 engine to begin production in the middle of 2019 at its modern 335-hectare plant complex in Cat Hai, Hai Phong, northern Vietnam. Another model is to be an all-new, global small car, licensed from General Motors.

We would not bother to discuses those two cars, but according to the press release VinFast is working hard to bring the first Electric vehicles to Vietnam.

In 2019 VinFast intends to unveil its all-electric car, which is currently developed by German’s EDAG and designed by Italdesign Giugiaro.

“Following its investment to bring electric mobility to Vietnam in 2018 with the launch of a range of eScooters, VinFast will unveil an all-new fully electric car in 2019. Design development is being undertaken by renowned Italian design house, Italdesign Giugiaro, while complete engineering development of the car will be led by Germany’s EDAG, one of the world’s largest independent engineering service providers. With sales starting in early 2020, it is likely to be the very first electric car on sale in Vietnam.”

At the same time company is gearing up for electric bus production, beginning from 2019 in cooperation with Siemens.

“In August 2018, VinFast signed two agreements to cooperate with Siemens for the development of a fully electric bus (eBus). The agreement specifically relates to electric motor manufacturing licenses and the supply of components to support the production of the eBus in Vietnam. Together with the production of e-scooters and electric cars, VinFast’s eBus will not only help improve the environment but also contribute to the transformation of the urban public transport system in Vietnam.The agreements enable VinFast to establish a supply chain for the production of zero emissions public transport vehicles in Vietnam, contributing to the transformation and modernization of the public transport sector in the country.”

Together with electric scooters, eScooter, launched in 2018, it seems that company aims for all kinds of EVs.

 

By MARK KANE

Vietnamese banks look abroad in rush for long-term capital

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Struggling to attract domestic funds, banks are rushing to seek foreign capital ahead of the central bank’s tightened policy on medium- and long-term lending early next year.

According to the State Bank of Vietnam (SBV) regulations, short-term funds for medium- and long-term loans at banks will be reduced from the current 45 percent to 40 percent from January 1, 2019.

Banks will also need more capital to meet a capital adequacy ratio (CAR) of 8 percent in 2020 as per the SBV’s Basel II norms.

To prepare for the regulations, besides increasing interest rates for long-term deposits to attract depositors, banks also have to find capital from foreign partners.

Saigon Hanoi Commercial Joint Stock Bank (SHB) recently took a US$20 million loan for a term of five years from Russia’s International Investment Bank and a 20 million euro loan under a credit agreement framework with Russian International Bank for Economic Cooperation.

According to SHB, the loans will help the bank supplement its medium- and long-term capital funding for Vietnam’s infrastructure projects, and projects involved small and medium enterprises and green energy. The loans will also help SHB perform international payment transactions, trade finance, import-export transactions between IBEC member countries, foreign exchange activities and capital mobilization.

Earlier, Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) also received a loan worth $50 million from JPMorgan Chase for a term of three years. This loan will help the bank supplement its medium- and long-term foreign capital source and meet the needs for foreign loans of domestic businesses.

Tien Phong Commercial Joint Stock Bank (TPBank) also signed a long-term loan contract worth up to $100 million with the International Finance Corporation (IFC). Along with financing, IFC will act as an advisor for TPBank in banking governance, risk management and development capacity building.

Orient Commercial Joint Stock Bank (OCB) is also expected to soon borrow foreign capital, as there is information that IFC is considering granting a loan of up to $100 million to the bank.

Raising foreign holding expected

Besides foreign capital loans, banks also expect the Government to increase the foreign ownership ratio to meet their dire need of capital.

Under current regulations, the ownership ratio of a foreign investor in a Vietnamese bank can’t exceed 20 percent of the bank’s charter capital and the total shareholding ratio of all foreign investors in the bank can’t exceed 30 percent.

According to banks, this is the biggest obstacle in attracting foreign capital and some banks have used up this limit. Therefore, many banks have asked the Government to increase the ratio to 49 percent to help them increase capital.

Experts have agreed with the proposal, saying banks need capital to operate more healthily and better serve society and the economy.

Financial expert Nguyen Tri Hieu said the Government and SBV should consider the banks’ proposal as the domestic capital market is very limited.

Due to the difficulties of the banking sector, domestic investors are no longer willing to invest capital, Hieu said, proposing the SBV allow foreign investors to invest in Vietnamese banks at a maximum level of 49 per cent.

According to Hieu, the Government should not be concerned that foreign investors may manipulate the financial market because no country has seen a loss of control of the market due to foreign capital flow.

Agreeing, experts from Bao Viet Securities Company (BVSC) said that the increase of foreign ownership limit to 49 percent is needed to help banks meet requirements in the country’s integration and be able to compete with international peers.

With the ratio increase, the State would still hold a dominant stake of 51 per cent at banks and can also control banks through the Law of Credit Institutions and other legal regulations, BVSC experts said, adding the rise would not only help Vietnam meet commitments in joining the international economic integration but also attract large capital of foreign investors to local banks.

 

Viet Nam News/Asia News Network

Foreigner Complains About Vietnam’s ‘Showers,’ But It’s Not a Shower

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A foreigner who took to Facebook to detail his struggle with “showers” in Vietnam has people in disbelief.

In a post on Oct. 24, Hamish Carruthers shared that he has been staying in Hanoi for almost a week, and he only had one issue of the accommodations.

“Alright guys, I’ve been in Hanoi almost a week now and I’m loving [it]. My only complaint is the showers,” Carruthers wrote. “I’m all for saving water but having to hold your finger on the button to keep the water flowing seems a bit extreme.”

The foreigner, seen bending over to wash his hair in an accompanying photo, complained about how “low” Vietnam’s “showers” are and sought for others’ opinion on the matter.

“The cold temperature doesn’t bother me too much but why are they so low? You have to bend down to wash your head. Vietnamese people aren’t that short…

“I’ve tried 2 different hostels now and they both have this style of shower, what are other peoples opinions on the Vietnamese shower?”

The post quickly went viral, garnering over 22,000 reactions, 5,900 shares and 430 comments in just two days.

However, Carruthers has actually been using a bidet shower, a hand-controlled nozzle that delivers water for genital and anal cleansing.

Facebook users educated Carruthers about the actual purpose of the “shower” he has been using.

Others found themselves laughing and scratching their heads at the foreign man’s “complaint.”

It’s unclear if Carruthers was actually pulling a joke, but anyone who has never seen bidet showers should probably check out Japan’s state-of-the-art toilets. One model — featuring a built-in deodorizer, instantly-heated seat and aerated water cleanse — literally takes care of “business” for $11,000.

Source: NextShark

 

Police hunting S. Korean gang over assault on rivals in Ho Chi Minh City

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Police in Ho Chi Minh City are hunting five South Korean men who are still on the run after assaulting their fellow countrymen and business rivals at the latter’s residence in District 2, leaving the victims with severe injuries.

Two members of the seven-man gang, all of whom are South Korean nationals, have already been captured, police say.

According to information released by District 2 police, Park Gun-huk and Min Kyung-man are both South Korean nationals staying in the Thao Dien neighborhood in District 2.

The two were involved in a work-related dispute, which prompted Park to call his “friends” from South Korea to come to Ho Chi Minh City for a plan to ambush his rivals.

On Monday, six of Park’s friends, Im Tae-woon, Lee San-ha, Kim Young-jeam, Lee Moyng-woon, Park Gan-min and Kim Jung-hoon, landed in Ho Chi Minh City after boarding a flight from South Korea, according to police officers.

The men stayed at a hotel in District 2 and bought six hammers together with a bundle of plastic zip ties which they planned to use during the ambush.

At around 3:30 am on Tuesday, the gang hailed a taxi to Min’s residence, where there were six South Koreans staying, wiin Thao Dien and sneaked into the house unbeknownst to their victims.

The attackers, armed with hammers, quickly had their sleeping victims under control and dragged them down to the ground floor, where they were tied up in plastic zip ties and hit with hammers.

The men also searched the rooms for valuable properties to steal.

After the initial confusion, the victims came to their senses and began to fight back, eventually taking back control of the situation.

After around five minutes of resistance, the assaulters fled the scene with the stolen properties, but they were detected by neighborhood security guards stationed nearby.

Panicked, the men split into multiple directions in an attempt to escape.

Police officers were called in to help and managed to capture two of the seven men, Im Tae-woon and Lee San-ha.

Min and the other five in his residence were taken to hospital for treatment for injuries, including a man named Park Jung-il who suffered severe head wounds and internal bleeding, police said.

Authorities are still hunting for the remaining five members of the gang.

Tuoitrenews

Vietnamese good at solving math questions, but lacks expertise to develop AI

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Commenting that there is big gap in human resources, Le Cong Thanh, an AI expert, believes that Vietnam lacks expertise to develop artificial intelligence (AI).

However, Vietnam’s AI researchers have a big advantage – the support of the entire society.

Vietnamese experts believe that Vietnamese are very good at math and coding, a factor that will help the country gain big achievements in the field if there are reasonable policies.

Vietnam has great potential to become a R&D (research & development) blockchain hub of the world. Some experts believe that Vietnam can be among top 5 or top 10 blockchain centers in the world.

Dang Minh Tuan, director of QNET, said Vietnam has opportunities to develop AI equal to other countries.

In Vietnam, AI is being used in apps such as face-identification technology cameras, smartphone chatbots, self-propelling vehicles, and nano robots.

However, Thanh pointed out that the development and application of AI in Vietnam are not as active as reported by mass media.

“Vietnam is behind other countries in developing AI and it is not likely to catch up with the countries even if it runs very fast now. There is big vulnerability in Vietnam’s human resources,” Thanh said.

In general, in Vietnam, there are only lower and top-tier workers, the latter being who finished foreign universities and worked for foreign companies. There is a gap between the two groups, with no middle tier group, as in other countries.

“The first thing Vietnam needs to do is remove the human resources gap in AI,” Thanh said.

He noted that machine learning communities now have more members. The communities will provide specialists, i.e. top-tier workers, who can train others in machine learning and AI.

Thanh said “we not only need theory, but also computing infrastructure and related data”, adding that Vietnamese data is mostly in foreign hands, from applications on phones to computers.

While in other countries, some people don’t think AI is extremely important, Vietnamese youth believe they have to develop AI to have a better future.

Thanh went on to say that he thinks Vietnam doesn’t have any outstanding advantage in comparison with other countries.

“I don’t think Vietnamese are good at math. They are only good at solving math questions,” he said, adding that Vietnamese forget math knowledge after they finish school because they don’t understand the nature of problems.

According to a report on Vietnamnet

Smartphone market: new rivals appear, but big players still thrive

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Emerging brands have been taking action to strengthen their presence in the domestic smartphone market. However, the face of the market is expected to stay the same in the near future.

Thirteen out of 15 bestselling smartphone models in the third quarter reported by The Gioi Di Dong (Mobile World), which holds 50 percent of the Vietnamese mobile phone distribution market share, belonged to well known brands Samsung and Oppo.

In the list of top five bestsellers reported by FPT Shop, four out of five products are made by Samsung and Oppo.

Analysts commented that the products of the two manufacturers have been dominating the domestic market for years, so there is little opportunity for newcomers to change the situation.

Apple is also a well known brand in Vietnam, but its products are rarely on the lists of bestsellers.

Only one model of Apple, iPhone 6 32GB, was listed in The Gioi Di Dong’s top 15, in the 13th position. FPT Shop’s list doesn’t include any Apple name.

Though having only one model listed in the top 15, Apple is the biggest rival of Samsung and Oppo.

This reflects the current situation of the market which is controlled by Samsung, Oppo and Apple.

Samsung and Oppo’s dominance in the market shows their wise business strategies which aim to satisfy customers’ tastes.

Huawei and Xiaomi’s efforts to conquer the Vietnamese market have brought initial results. In The Gioi Di Dong’s top 15 best sellers in the third quarter, Huawei Nova 3i ranked in the 12th position, above iPhone 6 32 GB. The model is equipped with two dual cameras, notch screen and reasonable price.

Meanwhile, FPT Shop’s list of top five bestsellers includes Xiaomi Redmi Note 5 32 GB, in the fourth position.

Xiaomi has had campaigns to polish its images, and take cars for customers. It has opened the Mi Store.

The absence of Nokia in the list of bestsellers is a surprise. A report from HMD Global, which owns Nokia brand, showed that Nokia ranked second in the Vietnamese mobile phone market in sales in the first eight months of the year.

Analysts believe that the sales were from feature phones, because Nokia does not appear in the two biggest distribution chains’ lists of bestsellers.

Vivo, one of the world’s biggest smartphone manufacturers, also did not have any brand on the lists.

According to a report on Vietnamnet

Facebook has been fined £500,000 for Cambridge Analytica scandal

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Facebook has been fined £500,000 by the UK’s data protection watchdog for its role in the Cambridge Analytica data scandal.

The Information Commissioner’s Office (ICO) said Facebook had let a “serious breach” of the law take place.

The fine is the maximum allowed under the old data protection rules that applied before GDPR took effect in May.

The ICO said Facebook had given app developers access to people’s data “without clear consent”.

In July, the ICO notified the social network that it intended to issue the maximum fine.

Confirming the fine, it said in a statement: “Between 2007 and 2014, Facebook processed the personal information of users unfairly by allowing application developers access to their information without sufficiently clear and informed consent, and allowing access even if users had not downloaded the app, but were simply ‘friends’ with people who had.”

“Facebook also failed to keep the personal information secure because it failed to make suitable checks on apps and developers using its platform.”

Facebook said it was “reviewing” the ICO’s decision.

“While we respectfully disagree with some of their findings, we have said before that we should have done more to investigate claims about Cambridge Analytica and taken action in 2015,” it said in a statement.

What was the Cambridge Analytica data scandal?

Researcher Dr Aleksandr Kogan and his company GSR used a personality quiz to harvest the Facebook data of up to 87 million people.

Some of this data was shared with Cambridge Analytica, which used it to target political advertising in the US.

“Even after the misuse of the data was discovered in December 2015, Facebook did not do enough to ensure those who continued to hold it had taken adequate and timely remedial action, including deletion,” the ICO said.

Source: BBC

The ICO found that more than one million people in the UK had their data harvested by the personality quiz.

“A company of its size and expertise should have known better and it should have done better,” said Information Commissioner Elizabeth Denham.

The ICO is still investigating how data analytics is used for political purposes.

Ms Denham is due to give evidence to the Department for Digital, Culture, Media and Sport (DCMS) Select Committee on 6 November.

According to a report on BBC

FIFA Rankings: Vietnam maintains top spot ASEAN Countries

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In the latest FIFA rankings, Vietnam remains top amongst ASEAN countries; retaining their 102nd spot with a rating point of 1220. Their draws against Afghanistan and Jordan played a big part in them. Next up, are the Philippines who, despite a two-place drop, remain the second best team in South Eastern Asia.

There is quite a big difference between Vietnam and them as the latter has 1171 in rating points. Scott Cooper’s men have defeated LAOS and Bangladesh in the 2018 Bangabandhu Gold Cup.

Five places below the Philippines and in the 121st spot are Thailand who have jumped one place from the previous FIFA Rankings. Beating Hong Kong, Trinidad and Tobago in their latest matches, Thailand is also in the 2019AFC Asian Cup. Unable to qualify for the 2019 AFC Asian Cup, Myanmar has dropped 3 places in the ranking and are on 141st spot with a rating point of 1080.

But the biggest achiever through this FIFA ranking is definitely Indonesia who have jumped 4 places and are on the 160th spot. They have defeated Mauritius, Myanmar and have drawn against Hong Kong. Their rating points are 1080.

The next best team amongst the ASEAN’s are Singapore who has jumped 1 place and are on 165th. They’ve been rewarded with their latest win against Fiji, Cambodia, and Mongolia. 4 places below Singapore but a 2-place improvement from the last rankings are Malaysia who is on 169th.

Malaysia is rewarded for their wins against Sri Lanka and Cambodia. In the 170th spot, comes Cambodia who have relinquished their previous spot for Malaysia, meaning a 1-spot decline in the latest rankings. The recent run of results hasn’t been favourable for them and thus they’ve fallen in the rankings.

Like the Philippines, Laos has also dropped 2 spots and is on 181st. Latest comprehensive losses at the hands of the UAE and Mongolia are the main reasons for it. 10 places below Laos are Timor Leste in the 191st spot with a rating point of 910. Timor Leste has gone down one spot as to their previous ranking.

Another team who have gone down one spot are Brunei Darussalam who complete the ASEAN teams’ rankings in the list, on the 196th spot with a rating point of 903.

The ratings are given below in details:

01. 102. VIETNAM 1220 (+0)

02. 116. PHILIPPINES 1171 (-2)

03. 121. THAILAND 1154 (+1)

04. 141. MYANMAR 1080 (-3)

05. 160. INDONESIA 1004 (+4)

06. 165. SINGAPORE 991 (+1)

07. 169. MALAYSIA 974 (+2)

08. 170. CAMBODIA 973 (-1)

09. 181. LAOS 937 (-2)

10. 191. TIMOR LESTE 910 (-1)

11. 196. BRUNEI DARUSSALAM 903 (-1)

According to a report on Fox Sports

Which is the best business to start in Vietnam?

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Vietnam considered as a land of opportunity for both local and foreign investors. An institutional investor knows exactly which is the best strategy, but to individual investor,  which is the best business to start in Vietnam?

As a professional investment consultant in Vietnam, Global Business Services Company (GBS | Vietnam) shares with Vietnam Insider the most preferred industries by foreign invested SME companies, which used the services of GBS to set-up their business in Vietnam. Details as below:

1. Restaurant and Bar

Both locals and expats in Vietnam love good meals and drinks. If you like to spend money on the entertainment industry, starting a restaurant and bar is a very lucrative niche in this industry. You might consider establishing a night golf club where people can relax and unwind after a difficult day’s job.

2. Garment and Textile Items

Garment and Textile producing is another lucrative business in Vietnam because Garments and Textiles are among items that Vietnam exports. You may also focus on making ready-to-wear clothing or start your personal clothing line. However, if you think that it would be too costly to begin your own textile and garment Production Company, you may become a cloth merchant or start an on-line clothing shop. All these businesses are profitable equally.

3. Home furniture Making and Remodeling

Home furniture making is a great business because nearly every office or home you step into offers one furniture piece or the additional. Asides that, a whole lot of businesses and businessmen far away source for home furniture from Vietnam that they take to their countries for resale.

4. Exportation

Vietnam exports a whole lot of items like rice which really is a world staple, coffee, Crude oil, shoes, rubber, seafood; electronics; there are simply so many points that you could sell to purchasers from various other countries. To get worldwide buyers, just visit a website like Find quality Manufacturers, Suppliers, Exporters, Importers, Buyers, Wholesalers, Products and Trade Leads from our award-winning International Trade Site.

Hochiminh City, Vietnam – August 2, 2015: Maritime transport on river, container loading vessel on water, residential and apartment at riverside, scene of industrial city, Vietnam, August 2, 2015

5. Detergents and Cosmetics

Detergents are utilized by almost everyone for washing and house cleaning. There are therefore many brands of detergents in Vietnam, but that doesn’t imply that you cannot develop something unique and various. There would continually be a demand for a thing that is unique, different from the standard and solves a problem.

6. Used Car Dealer

Everyone in Vietnam loves a nice, clean, brand new vehicle but sadly, not everyone can afford it. This is why a lot of people resort to buying used vehicles. Used car dealers make a lot of money just from helping people sell their used vehicles or importing used cars from other countries for sale.

7. Real Estate brokerage

Another rewarding business you can begin in Vietnam is definitely building or buying properties for resale. With the amount of expatriates and immigrants getting into Vietnam, real estate can be a business you won’t regret. You can set-up a company to purchase aged properties to renovate and resell; you can build workplace blocks for lease or small housing models for rent as well.

8. Marketing Consultant

As the country’s economy continues to improve, more foreigners are coming in and more locals are beginning to look to starting a business. Most of these entrepreneurs or corporations usually require an independent consultant to help provide marketing services for them. For you to be a successful marketing consultant, you should have knowledge about industry trends, markets, demographic and sales results.

9. Pet Shop and Supply

Pet care in Vietnam has been growing due to the gradual increase in the pet population, busier lifestyles and rise in the humanization of pets. Cat and fish are the most preferred pets in Vietnam especially in the big cities, and due to health and wellness trends, more pet owners are willing to spend more on packaged pet food. Most pet owners prefer international brands to local brands and so you should take this into consideration when looking to start your pet shop business.

10.Translation and Transcription Services

As more foreigners continue to move into Vietnam to explore business opportunities, starting a translation and transcription service can be a savvy move for an enterprising entrepreneur. You will need to determine the kind of services you intend to offer your various clients and in order to create awareness, you will need to advertise and engage in publicity strategies.

 

Need legal assistant before starting your own business in Vietnam?

Contact

GBS | Vietnam

Email: info@gbs.com.vn | Hotline: +84903189033

Website: https://gbs.com.vn

Tea vs Coffee: The battle for the Vietnamese tastebud

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Ho Chi Minh city (HCMC), also known as Saigon, is Vietnam’s largest economic hub and represents the land of opportunities for many investors and entrepreneurs.

With higher income and living standards and a big proportion of Millennials, the city witnesses a mushrooming number of tea and coffee shops opening (and also closing) every day, ranging from global giants, regional chains to local chains, start-ups and small independent stores.

This not only brings more choices for consumers to hangout but also increases the competition amongst providers. Popular brands to name a few are Starbucks, the Coffee Bean & Tea Leaf coffee giants from the US; regional tea chains, mostly from Taiwan, such as Gong Cha and Koi Thé (also known as 50 Lan in Taiwan) and The Alley to local chains like The Coffee House, Highlands, Trung Nguyen and the countless number of independent local stores.

Some of them target the young generation whereas others focus on middle age consumers. Some positioned themselves as take-away shops, whereas others provide comfortable places for consumers to stay for longer, providing large spaces and public amenities.

Vietnamese drinkers also come to tea and coffee shops for various purposes. Teens and students (Gen Z) prefer to gather with friends or to study while Millennials and older groups tend to spend time there with their family, to work or even have meetings. The young generations, especially Millennials, who go out more will be the key target group to shape the future tea and coffee drinking trends as well as to boost the growth of Out-of-Home consumption.

Surprisingly, in Ho Chi Minh city, the size of tea including RTD (ready-to-drink) and RTS (ready-to-serve) tea is almost double that of coffee, according to the initial data of Kantar Worldpanel’s Out of Home (OOH) panel conducted in the city (1). What is the reason behind tea taking such a broad lead on coffee?

Tea-based drinks are proven more popular by penetrating over half of the HCMC population while coffee reach is about one third of the city’s population. Among the top choices for savoury tea drinks, milk tea is the favourite option, which has been on average, bought by one out of five Saigoneses at least once in September 2018, followed by peach tea and matcha or green tea. Consumers are also willing to pay much more premium prices for the top three tea drinks, which is 1.5 to 2 times higher than other tea-based choices. Furthermore, Vietnam milk tea market is heating up in recent years. The number of franchise stores has exploded from street corners to shopping malls, thanks to many foreign players which have been expanding into the land especially in key cities. As such, the bubble tea market is expected to enjoy a tremendous growth and continue evolving with a wider variety of brands, flavours and toppings.

On the other hand, although Vietnam is the world’s second biggest coffee producer, coffee earns less from consumers for out-of-home beverage consumption as it tends to appeal less to the mass (unlike tea) and attracts a more unique consumer base that are frequent coffee drinkers. Traditional Vietnamese black (ca phe den) and brown coffee (ca phe sua) are amongst the most popular coffee choices. However, the market observes modern or western-influenced coffees like cappuccino, mocha and ice-blended coffees (frappe) are rising in popularity, accounting for ¼ of the category revenue. This is definitely something to keep an eye on and to monitor regularly in the coming months and years to see how the new coffee styles along with the growing number of modern coffee chains are making a bigger play and impact on the more classical and traditional types of coffee styles.

In terms of places HCMC consumers usually go out for tea and coffee, the top three branded shops conquering HCMC citizens today are The Coffee House, Phuc Long and Highlands. Interestingly, within these coffee shops, coffee drinks account for half of the consumer spending only while other beverages such as tea, fruit juices and soft drinks dominate the other half, which means they are also important SKUs for coffee retailers.

Looking forward to 2021, Ho Chi Minh city is being ranked as second fastest growing city among the top 20 cities in Asia, just after Delhi (India) by Oxford Economics. It promises huge opportunities amidst fierce competition driven by high demand and fickle-minded consumers that are less likely to be loyal to any particular brand. Ones with a “business as usual” mindset today may lose their ground tomorrow if they don’t keep up with the rapidly changing retail landscape and the consumers’ changing needs for better quality and more premium taste or experience. The success recipe lies in the hands of those who are strong in equity for long-term investment, well-informed and agile in adapting to market changes and intuitive in innovating to keep exciting and engaging with their customers.

(1) Kantar Worldpanel has officially launched Out-of-Home (OOH) Panel in Vietnam last September 2018. The OOH Panel regularly measures major convenience foods and beverages that Vietnamese individuals purchase for consumption away from home. This consumer panel research applies state-of-the-art technology in data collection via smart-phones. Consumers report all their shopping trips in real-time via an application with barcode scanning function.

According to a report on Kantar

Eximbank launches ChatBot for 24/7 customer care

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Vietnam’s  Eximbank just has launched its ChatBot online support tool – developed from the artificial intelligence platform FPT.AI – to serve customers 24/7, presented with the name ‘Mai’ on its website and Facebook page.

“This pilot study will operate for at least 1 month in order to better understand customer demand and feedback for continuous improvement”. Mr. Rahn Wood – Eximbank‘s representative told Vietnam Insider.

In recent years, with the rapid development of the Industrial Revolution 4.0, the banking and finance industry has rapidly adopted advanced technologies into its business model. ChatBot is a specific application that has been launched by many banks and other financial institutions around the world as well as in Vietnam in order to provide prompt support to customers.

With this application, frequently asked questions about Eximbank’s products and services will be answered immediately by Mai. Questions are available in the database no matter what time of day (ie. 24 / 7) wherein users can be directed to suitable content or contact methods. FPT IS Information System Company is the vendor that provides and deploys this chatBot system.

“In essence, or new ‘Mai’ ChatBot is an online tool that can represent as a professional consultant for enhanced customer care. Since June 2018, Eximbank has cooperated with FPT IS to build this application. So far, we have completely built an application to serve customers’ most popular demands such as: Advice on bank cards issued by Eximbank, Promotion programs for depositors at Eximbank, Location of Branches/Transaction Offices and ATMs throughout Eximbank’s network and some other frequently asked questions. We believe this exciting new technology will provide customers with faster and higher quality service experiences in the digital age.” – said Mr. Rahn Wood.

ChatBot is built based on the newest technology waves of Artificial Intelligence, Machine Learning, Natural Language Processing and Big Data. During this initial stage, for questions that ChatBot cannot answer, the Machine Learning technology will automatically record questions and after Eximbank’s staff respond to the customer, the new data will be used to train Eximbank’s ChatBot answering similar questions afterward. In the medium term, the ChatBot will be automatically trained to improve better and develop more functions to meet the higher and higher requirements of customers.

“In Vietnam, FPT is the pioneer in developing artificial intelligence platform that allows developers to create chatbots easily. Thanks to the application of the most advanced technologies such as natural language processing, artificial intelligence the Chatbot developed from FPT.AI platform can understand the intentions and content that customers demand, from there. Providing accurate feedback, helping businesses to stay connected with customers and thereby reducing the proportion of unsatisfied customers. So far, more than 1,000 chatbot applications have been created on the FPT.AI platform. These applications enhance the user experience in many areas such as telecommunications, e-commerce, banking, or public administration, and help reduce operational costs for businesses. ” Said Mr. Duong Dung Trieu, Chairman of FPT IS.

In early September, Eximbank also deployed Infosys Finacle Core Banking software solution to replace its old Core Banking system. This transformation aims to develop more products – services, tight internal management and alignment of the banking system, creating a foundation for improving customer service, risk management and more efficient services.

The launch of its ChatBot application is a significant first step in building up its digital capabilities as well as a modern and dynamic orientation for Eximbank in the era of Industry 4.0.

More information about Vietnam’s Eximbank can be found at: http://eximbank.com.vn

Unqualified foreign English teachers hired overseas because of their “token white face”

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Australian travelers teaching English overseas without qualifications cause alarm

Education experts in Australia have voiced concern over the number of unqualified foreign English teachers hired overseas because of their “token white face”, and the lasting negative impact it could have on students.

Key points:

  • Learning English has been growing in importance in Asia over the last few decades
  • Recent report says two-thirds of the 400,000 foreigners teaching in China are unqualified
  • Some schools “would rather pay a fine” than hire local teachers

According to a report by Tasha Wibawa and Bang Xiao on ABC News, China is one among many Asian countries — including Indonesia, Malaysia and Vietnam — struggling to regulate unqualified foreigners teaching English as a Second Language (ESL).

A recent report by state-owned Xinhua news agency said two-thirds of the 400,000 foreigners teaching in China in 2017 were unqualified, with some also working on incorrect visas.

Lynette Kim, director at TESOL Australia, told the ABC that foreigners becoming teachers without formal training could have a lasting negative impact on both students and the teachers themselves.

Jake Sharp is one of many qualified English teachers in Vietnam who enjoys the financial freedom of working overseas. (Supplied: Jake Sharp)

She said it could affect students’ pronunciation, vocal expressions, their ability to learn how to form sentences, and even their interest in continuing to learn English.

“They are coming in thinking I’m going to … make some money and get out of here,” she said.

“[They] get very exhausted, they get very stressed, they start to hate [teaching if] they’re doing it only for the money.”

Former Gold Coast resident Jake Sharp was 27 when he decided to move to Vietnam because he, like many other young Australians, enjoyed the adventure of living in a new country.

Mr Sharp, now an accredited English teacher, said teachers in Vietnam earned a good wage and many Australians decided to stay for the long-term because living costs were much cheaper.

However, many English language centers in Vietnam hired native English-speakers without qualification — as long as they looked the part, he said.

Schools ‘would rather pay fine’ than hire local teachers

Ms Kim, as well as several other teachers the ABC spoke to, said that many schools overseas hired foreigners for their “token white face”.

“People think unless you have that western person [teaching in the school] you’re really not going to get that culture right, and to some degree that’s true,” she said.

French-British national Nathaniel Kempster arrived in China on a student visa in 2006.

He told the ABC he was approached to teach in a kindergarten on his second day and did not have a valid working visa.

“You don’t even have to be a native [speaker] to get good pay, you just have to have a ‘white face’ — that’s the most important — that’s the first criteria,” he said.

PHOTO: Nathaniel Kempster works as a private tutor after being told he could no longer teach in a kindergarten. (Supplied)

He taught on weekends for six months before officials questioned his credentials.

“One Saturday morning I was teaching. All of a sudden, about ten different agents walked in, all with cameras filming us,” Mr Kempster said.

“Kids were absolutely terrified, and no one understood what was happening. And I spent the night in the police centre.”

But Mr Kempster said schools with foreign teachers made a lot of money, so his employer would prefer to pay a fine than hire local teachers.

“[The school] knows that they are going to make an enormous amount of money from that teacher, so paying a fine is a very small thing compared to the amount of money they will make over time,” he said.

“In China, being western is viewed as being superior,” Mr Kempster said.

“Also, the fact that you’re western, [people think] you are obviously super good at English, even though some people aren’t.”

Photo: Daniel Hiers was teaching in China before his criminal past was reportedly discovered by a student. (US Marshals)

The absence of vetting procedures has not only led to untrained teachers, but criminal backgrounds have also gone undetected.

Mr Sharp said in Vietnam, foreigners were often hired without background checks.

“The [English] centers are often not regulated — people are working with children without having to show a police check,” he said.

In Shanghai, one student found her college English teacher, Daniel William Hiers, on a US list of the 15 most wanted criminals, according to Chinese state media CGTN and the Global Times.

The man had been profiled on America’s most wanted list since March 2005 for murder and criminal sexual conduct.

Some people teach just ‘to stay afloat’ financially overseas

Indonesian law requires English teachers to have a masters degree and a minimum of five years teaching experience to teach in an international school.

But teachers who meet these requirements are becoming increasingly difficult to find as the demand to learn English increases.

Some schools have chosen to work around these requirements.

Yusuf Muhyidin, director of tutoring from the Ministry of Education in Indonesia, said unqualified teachers could sometimes slip through the cracks.

“Many language courses employ native speakers, but some don’t want to undergo the correct procedures or obtain a permit from the Ministry,” he said.

“This is often due to the time to process and the cost factor.”

However, he said it was not the Ministry’s issue to resolve.

“It’s actually the police’s job to file a lawsuit against those kind of workers,” he said.

Sydney-born Anya Filla-Dwehus, who has been teaching English in China for 18 years, said it could be hard for foreign nationals to work in the field they are qualified in due to strict Chinese Government regulations.

“While some are actual teachers back home, I’ve come across some people who are basically passing through and it’s just something for them to stay afloat,” she said.

There are conflicting reports on regulations around foreign teachers.

A Xinhua article published in July said it took at least four months to hire a foreign teacher by following the correct legal process.

Foreign teachers also need a bachelor’s degree, two years of relevant work experience or a teaching qualification to obtain a work permit, the report said.

But Zhang Fucheng, vice-president of Yanshan University, told Xinhua in a separate article last September that there were currently no laws and regulations for foreign teachers in China.

“Legislation should be completed as soon as possible to improve the standards and methods for the appointment of foreign teachers, and their legal status, rights and obligations,” Mr Zhang said.

PHOTO: Lynette Kim (far left), director of TESOL Australia, says many foreign schools want “the token white face”. (Supplied: Lynette Kim)

English language skills seen as key to children’s future

Learning English has been growing in importance in Asia over the last few decades.

International language company Education First (EF) revealed in their English Proficiency Index that Asia has the second highest non-native English speaking population, second only to Europe.

The company’s 2017 report — based on test data from more than 1 million participants — also found that adult English proficiency levels are directly correlated to the country’s ranking in the United Nations Human Development Index, which measures the standard of living and economic growth among other achievements.

Economic development offered new incentives and resources to learn English, the report said.

Ms Filla-Dwehus said Asian parents saw learning English as a key pathway to a successful career.

In China parents want their children to be fluent in English, she said, and be able to pronounce words “just like a foreigner”.

“[Parents] want to have that skill already developed before they get into secondary education.”

Read original article on ABC News here

How to Eat Like a Local in Ho Chi Minh City

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Dining, eating and snacking play a large part in Vietnamese culture. Here are five simple ways to chow down like a local in Ho Chi Minh City.

In Vietnam, eating is an essential part of family life, social gatherings and dates. In fact, rather than asking others ‘how are you?’, the Vietnamese will often greet their friends with ‘have you eaten yet?’ With food and dining playing such an important part in everyday life, eating like a local is one of the best ways to experience the culture in Ho Chi Minh City (also known as Saigon).

Vietnamese cooks in a steaming-hot street food marquee | © Michael Davis-Burchat / Flickr

1. Go where the locals go

In Western culture, it’s common to search out a restaurant that has good online reviews. In Ho Chi Minh City, and Vietnam in general, word of mouth is the highest form of endorsement. Recommendations from a local are much more likely to offer a real taste of Ho Chi Minh City’s dining culture than the places listed online.

However, if you’re struggling to find local recommendations, simply head to the busiest spot on the street! The residents of Saigon vote with their feet, and the best places to eat tend to be the ones that are full to the brim almost every day of the week.

2. Don’t judge a book by its cover

Many of the most renowned places to eat in Vietnam are not fancy restaurants or five-star establishments but small, family-owned eateries. These places usually appear to be nothing more than a room full of plastic stools and tables, spilling out on to the pavement. But although they may not be much to look at, often they provide some of the best local dining experiences (and cuisine) in the country.

Pull up a stool: Ho Chi Minh City’s street food scene | © Paul Gallow / Flickr

3. Budge up

One of the best things about Ho Chi Minh City’s street food scene is that there’s always space for one more person. Even when somewhere is overflowing with diners, the staff always seem to be able to magic up enough space for another table. It may take a little manoeuvring to squash yourself into the crowd, followed by folding your limbs in half to perch on a miniature stool, but it’s worth it – what better way to experience authentic Vietnamese dining than amid a bustling crowd at a local restaurant?

4. Try the ‘bestseller’

When it comes to menus in Ho Chi Minh City, sometimes less is more. Some of the best restaurants only offer one or two dishes, and the fantastic flavour of their bestseller normally explains why. Don’t be surprised if the food from the simple restaurant that only serves one thing is much tastier than the restaurant that plates up 100 dishes.

5. Throw everything in your bowl!

Occasionally, visitors come away from Vietnam complaining that the food lacked flavour. But this is likely to be because some restaurants allow customers to season food to their own taste. So, if you find yourself surrounded by condiments, salads and spices, use them!

Flavour your Vietnamese dishes with the many condiments, salads and spices on your table | © Snips / Wikimedia Commons

By Isabelle Sudron,  The Culture Trip
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