VinFast selects Siemens’ innovation platform

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Siemens has announced that VinFast, Vietnam’s first motor car manufacturer, has selected a suite of tools from Siemens PLM Software to help realize its plans for next-generation automotive and transportation design.

Siemens is providing a digitalization solution across the entire automotive OEM value chain, which can help enable VinFast to meet its goals of creating the first Vietnam-made automobile and eScooter brands and promote the development of Vietnam’s industrial and manufacturing sector.

“Siemens PLM Software is proud to form this excellent partnership with VinFast in the first national car project in Vietnam, to help VinFast accelerate its innovation cycle,” said Mr. Alex Teo, Managing Director and Vice President of Siemens Industry Software for South East Asia. “The vast portfolio of Siemens solutions that VinFast plans to deploy is a demonstration of the trust our customers place in our proven capabilities in taking products from the digital world to the real world.”

According to Mr. Jason Buxton, Chief Information Officer at VinFast, using the combined power of both product lifecycle management and manufacturing operations management technology is a key part of VinFast’s digitalization journey. “To drive innovation within the automotive industry, it is essential to have the right technology in place,” he said. “We feel that Siemens’ best-in-class solutions can empower automakers and the vehicle electrification supply chain to reduce development time and deliver high-quality solutions, with the ability to adapt to changes easily at every stage of the process.”

VinFast plans to take advantage of a connected digital twin across both design and manufacturing. It plans to use an integrated digital platform including the Teamcenter® portfolio for digital lifecycle management, including the Teamcenter solution for product costing to support cost and value engineering, and the Tecnomatix® portfolio, the industry-leading digital manufacturing software, combined with SIMATIC IT UA for Discrete Manufacturing covering the MES (Manufacturing Execution System) layer.

Teamcenter connects the digital twin with a consistent digital thread, which can help VinFast increase speed and flexibility in development, optimize manufacturing processes and use the insights gained from product and plant operations to improve future performance.

VinFast recently announced to the market that the company is also launching the first Vietnamese electric car. Using a connected PLM and MES digital enterprise solution will prove to be critical to achieving this goal. By creating a digital enterprise, VinFast can take advantage of new and disruptive technology across each phase of their operation to reduce cycle time, increase yield and foster new business opportunities.

Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a leading global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood.

Linh San report on Vneconomictimes

How technology is transforming Vietnam

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While Industry 4.0 may call to mind images of futuristic smart cities and robot waiters, it’s already transforming Vietnam.

Tran My Tien is a hard-working employee of a famous bank in HCM City.

Looking at her outstanding performance, no one can believe the 30-year-old has another job on the side: she is the co-owner of a coffee shop called Cai Lo Gach Cu in District 11 that opened several months ago.

Talking about how she manages to juggle two jobs at the same time, she merely said “technology”.

She was referring to the phone applications she uses to monitor everything in the shop like cash flow, revenue growth, supply sources, and others.

While many people may not understand industry 4.0 and other technological changes, they are clearly sweeping across the country.

On the one hand, there are many conferences on esoteric concepts like big data, cloud, Internet of Things, and artificial intelligence, on the other, these have already entered daily life to benefit users.

Tien is one of those benefiting from the hi-tech revolution.

“I don’t know much about 4.0 but it is true that modern technology, including phone applications and social media like Facebook, have helped me much in doing business.”

She told Viet Nam News, “Modern technology has enabled me to manage the coffee shop from far away so that I can do many jobs at the same time.”

She uses two apps for the task. They also help her calculate the volume of materials required and show her which the peak business hours are so that she can organise promotions.

On the website of the World Economic Forum, President and CEO of Siemens Joe Kaeser said, “The fourth industrial revolution is transforming practically every human activity: the way we make things, the way we use the resources of our planet, the way we communicate and interact with each other as humans, the way we learn, the way we work, the way we govern, and the way we do business. Its scope, speed and reach are unprecedented.”

Obviously, the technological changes are changing the lifestyles of Vietnamese so quickly that many people feel they can’t live without the tools technology provides and they benefit greatly from them.

Even a few years ago no one thought they could buy a bubble tea or a meal without going out of the office or at least making a phone call.

Food delivery apps now do all this for them.

If we go to a beverage shop or restaurant in big cities like HCM City and Hanoi, it is easy to see people in uniforms ordering food and beverages.

They are staff of food-order delivery apps like Now.vn and Grab Food buying food and drinks for customers for delivery.

Do Minh Phuong of HCM City’s District 7 told Viet Nam News that “technology is now indispensable” in her life.

She uses the food delivery services frequently when “I want a bubble tea in the afternoon but cannot leave the office or want to buy fresh food but do not have enough time to go to supermarket or market”.

“Modern technology is making life easier for people,” Phuong said.

Another app that is of great benefit is the one for hailing motorbike taxis.

In recent years this service has become popular around the country and provides employment to many people. A spokesperson for a new motorbike taxi hailing app, GoViet, told Viet Nam News that after a six-week test period the company had signed up 3,000 drivers in HCM City and Hanoi.

There were 1.5 million downloads during this period, he said.

Do Kim Ngoc, a senior citizen living in Hanoi, said “motorbike hailing is a very useful service”.

“They are always ready, I can now go around the city without waiting for my children to take me when they are free.”

A shipper from Lalamove said it was easy for him to find a job thanks to modern technology.

He said he had applied for a job at a major automobile company and while waiting for it he decided to work as a shipper for Lalamove. He had to thank technology for the opportunity, he added.

According to a report on Vietnamnews

Vietnam is the world’s top emerging economy: experts

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Embracing free trade policies, reducing overregulation and costs of doing business, and investing in human capital and infrastructure are three ingredients that help Vietnam become a top emerging economy in less than three decades, said a writing posted on the US hakernoon.com.

According to the article citing the World Bank’s recent report, the Vietnamese Government’s efforts have been paid off as its trade liberalisation opened the door to new agreements, lowering taxes for international commerce operations, and increasing regional competitiveness. To date, the Southeast Asian country has successfully inked 16 bilateral and multilateral free trade deals. Also, it has become a member of the World Trade Organisation (WTO), the Association of Southeast Asian Nations (ASEAN), and the Eurasian Customs Union.

Eliminating excessive controls and providing a clearer framework for doing businesses in several key industries have played a crucial role in boosting the country’s business development.

The article mentioned new challenges for the country when the number of businesses keeps growing and the economy’s scale continues expanding. It said that Vietnam should pay due attention to education with a view to elevating quality standards, and infrastructure investments which help supply more energy and improve connectivity within the country.

Last month, World Economic Forum (WEF) President Borge Brende praised Vietnam’s economic performance at the Vietnam Business Summit. He pointed out the positive impact of the numerous economic reforms implemented by the government over the last few years to reduce debt and stabilize public finance, the writing said.

According to Vietnamese Minister of Finance Dinh Tien Dung, the country’s public debt had risen to 64 percent between 2011 and 2015; however, thanks to latest reforms, debt is expected to decrease to 60 percent in three years (from now). In addition, Vietnam reached an economic growth peak for the decade at 6.8 percent, outperforming its target of 6.7 percent.

Brende said that Vietnam could benefit from the creation of a friendly environment for innovative technologies like the Internet of Things, blockchain and crypto. Countries that quickly adopt these technologies can expect a brighter future.

In fact, Prime Minister Nguyen Xuan Phuc ordered the establishment of a national committee for e-government in August. This aims to study and elaborate guidelines, strategies and policies to create a legal environment favourable for developing digial government.

A report from the AlphaBeta Consulting firm, Vietnam ranks second in high-tech investment environment, and third in digital competence in the Southeast Asia.’

According to a report on VNA

Vietnamese has a high percentage of internet, but don’t want to make online payments

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Vietnam has a high percentage of internet and social network users, but the proportion of people making payments via internet remains very modest.

“It’s about time to question why Vietnam has a high number of internet and Facebook users, but it still cannot popularize non-cash payment methods,” said Dang Khac Loi, deputy head of the Press Agency at a workshop held by the State Bank in late September.

“In China, everyone, including street vendors and small retailers, all use online payments. Why can’t this be done in Vietnam?” Loi said.

Most Vietnamese have the habit of using cash, especially in rural areas.

Deputy chair of the Vietnam Farmers’ Association Pham Tien Nam cited a report as saying that 40 percent of Vietnamese have bank accounts, but 90 percent pay for goods they buy every day in cash.

99 percent of people pay in cash for goods and services costing less than VND100,000, and 85 percent of transactions at ATMs are cash withdrawals.

The figures show that the implementation of the non-cash payment development plan in Vietnam will face big challenges.

In Vietnam, electronic tax payments kicked off in 2014 and 95 percent of businesses have registered to pay tax online.

A report of the taxation body showed that the proportion of online tax collection has increased from 55 percent to 70 percent of total collections. However, businesses still want to pay tax in cash directly to tax officers and only pay when deadlines come.

The payment for electricity bills was activated a long time ago, but according to the Electricity of Vietnam, to date, only 4.5 million households, or 20 percent of total clients, make payment via banks and intermediary institutions.

In rural and remote areas, people still cannot access modern payment facilities and services.

Nam believes that it will take time to change a habit which has existed for many years.

In addition, people prefer cash payment because this ensures privacy. The payment transactions in cash do not leave traces, and personal information is not exposed to third parties.

However, Vietnam has made progress in popularizing non-cash payments to increase financial service access, and minimize risks and costs.

A Visa report in July 2018 showed that the number of e-payment transactions had increased by 44 percent a month since July 2017 and the total value of purchases on the Visa network increased by 43 percent.

Under the national plan on developing non-cash payment, at least 70 percent of people aged 15 and higher would have bank accounts by the end of 2020, and the cash payment proportion would fall to below 10 percent.

According to a report on Vietnamnet

What will VinFast’s pricing strategy be like?

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VinFast has caught attention from the public with its impressive presence at 2018 Paris Motor Show. Now it needs to choose a reasonable pricing strategy to conquer the home market.

Analysts are guessing wildly about the prices of the two first models of VinFast. Will they be super cars with BMW’s quality and Mazda’s price?

Some observers believe that a high-end car with German quality and Italian design would have a ‘Vietnamese price’.However, VinFast is not strong enough to attract buyers if it is as expensive as BMW.

The most likely scenario is that VinFast’s image should be ‘pegged’ to BMW with the quality a bit lower than the German brand and the price higher than Mazda. A Chinese brand also succeeds with this strategy.

Debut

VinFast had a wonderful performance at Paris Motor Show with the presence of David Beckham at the stall next to the one of the Italian giant – Ferrari.

For Nguyen Thanh Hai, dubbed Hai Kar, a well known name among car players, who was once marketing director of Bentley and Lamborghini Vietnam, said what attracted him most at the event were not the models, but the positions of the stalls. The stall with the name ‘VinFast’ was seen between the stalls of Kia and Ferrari, and near Suzuki’s.

“It is obvious that all the brands appearing at Paris Motor Show are very well known. VinFast only joined the automobile industry last year. Many people doubted VinFast could make cars. And the first model of the Vietnamese brand has made its debut,” he said.

VinFast features

Being a newcomer, VinFast chose to join hands with Pininfarina, the world’s leading designer whose name is attached to super cars and luxury products.

Regarding the engine, VinFast bought BMW’s technology, but it has been developed by AVL (Austria) and Magna (Canada).

For marketing, VinFast had many KOLs (key opinion leader) at the introduction event, including David Beckham and Vietnamese models.

Observers said VinFast might have to spend several million dollars to invite Beckham to the event. Prior to that, Jaguar also used Beckham when conquering the Chinese market.

Pricing

“VinFast’s models have the capacity of 174-228 horse power. I think VinFast would focus on an above average segment like Camry or Mazda 6,” Hai Kar said, adding that VinFast doesn’t intend to compete with products priced at VND500-700 million.

Meanwhile, with Vingroup leadership’s statement that VinFast cars will serve Vietnamese needs, it is not highly possible that VinFast models would be as expensive as BMW or Mercedes.

According to a report on Vietnamnet

Vietjet Air to become the first airline scheduled nonstop flights connecting Vietnam and India

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VietJet Air is poised to become the first airline to operate scheduled nonstop flights connecting Vietnam and India. The Vietnamese LCC plans to operate four weekly services initially, from Ho Chi Minh to Delhi, but over the next several years could add several routes to India.

The Vietnam-India market is relatively small but has been growing rapidly. From a small base, traffic has nearly tripled over the past five years and was up 30% in 2017, driven by a 30% increase in Indian visitor numbers to Vietnam.

Vietnam and India are among the 10 most populated countries in Asia and are only four to six hours apart by air. Vietnam is also an increasingly popular tourist destination and India is one of the fastest growing outbound markets. While there is now sufficient demand to support direct services, VietJet will have to overcome stiff competition from sixth freedom competitors, which have the advantage of offering multiple Vietnam-India city pairs.

Ho Chi Minh-Delhi will be VietJet’s longest route

In Mar-2018 VietJet announced plans to serve India starting with a four times weekly service from Ho Chi Minh to Delhi. VietJet has not yet set a launch date or started selling the service but has secured approvals, and New Delhi has been loaded as a destination into its online reservation system.

VietJet could soon decide on a launch date of late 2018 or early 2019. The delays in deciding on a launch date since the Mar-2018 announcement have likely been partially driven by delivery delays with the A321neo.

Earlier this year Pratt & Whitney engine issues forced VietJet to ground its first A321neo, which it took at the end of 2017, and have resulted in delivery delays for subsequent aircraft. VietJet finally took its second and third A321neo in Aug-2018 and is expected to take five more A321neos by the end of 2018, according to the CAPA Fleet Database. The airline is currently using the A321neo on some of its longest routes (from Vietnam to northern China, Japan and South Korea) and will be able to launch more long narrowbody routes as it takes delivery of additional A321neos.

VietJet has 70 A321neos on order, according to the CAPA Fleet Database. The A321neo is ideal for Ho Chi Minh-Delhi route as the route is more than five hours. The route could be operated with A320ceos or A321ceos, but VietJet may have payload restrictions during certain times of the year.

VietJet’s longest current scheduled route is Ho Chi Minh-Seoul, which is approximately 100km shorter than Ho Chi Minh-Delhi. It is VietJet’s only current route over five hours and is served twice daily with a mix of A321s and A321neos.

However, VietJet is currently operating longer charter routes to Japan (including Hanoi to Sapporo, which is operated with A321neos and is more than five hours). VietJet plans to launch scheduled services to Japan in Nov-2018.

VietJet keen to operate multiple India routes over time

Having announced its commitment to the India market at a Mar-2018 Vietnam-India business forum in Delhi, Vietjet expects to launch other Vietnam-India routes in future.

Ho Chi Minh-Mumbai would be the next logical route for VietJet as it is broadly the same size as Ho Chi Minh-Delhi. Ho Chi Minh-Mumbai accounted for 13% of total Vietnam-India bookings in 2017 and Ho Chi Minh-Delhi accounted for 14%, according to OAG Traffic Analyser data. Ho Chi Minh-Mumbai is only 100km longer than Ho Chi Minh-Delhi.

Hanoi-Delhi is the third largest Vietnam-India city pair, accounting for 12% of Vietnam-India bookings in 2018. Hanoi-Mumbai is fourth largest, accounting for 9% of bookings in 2017. Hanoi-Delhi is approximately 600km shorter than Ho Chi Minh-Delhi, making it very feasible with A320ceos, while Hanoi-Mumbai is only approximately 200km shorter than Ho Chi Minh-Mumbai.

India will be VietJet’s tenth international market with scheduled services and first in South Asia. It currently has scheduled services to Cambodia, Hong Kong, Malaysia, Myanmar, Singapore, South Korea, Taiwan and Thailand as well as charters to mainland China and Japan. As previously mentioned, Japan will become a scheduled market in Nov-2018 when Hanoi-Osaka services are launched. (VietJet also plans to launch services on the longer Ho Chi Minh-Osaka route in Dec-2018 and from Hanoi to Tokyo Narita in Jan-2019.)

VietJet has been pursuing rapid international expansion over the past two years, after focusing mainly on the domestic market in its first four years of operations.

Vietnam-India market seems large enough to support nonstop services

VietJet will be the first airline to operate scheduled nonstop services in the Vietnam-India market. Its rival LCC Jetstar Pacific currently operates a limited low frequency seasonal charter service between Hanoi and Gaya.

The Hanoi-Gaya route is relatively short, less than four hours, as Gaya is located in eastern India. Gaya is a popular religious pilgrimage site for Buddhists and is almost entirely an inbound market.

Ho Chi Minh-Delhi is a much bigger market, which consists mainly of leisure passengers originating in Delhi. Hanoi-Gaya is the thirteenth largest Vietnam-India route based on bookings, and Ho Chi Minh-Delhi is the largest.

The Vietnam-India market has grown rapidly, driven mainly by outbound leisure demand from India. Vietnam-India passenger traffic has nearly tripled over the past five years to approximately 200,000 return passengers in 2017, according to AirportIS data. In 2017 the market grew by approximately 30%.

Vietnam also reported a 30% increase in Indian visitor numbers in 2017, to approximately 110,000. Indian visitor numbers to Vietnam are expected to increase at an even faster rate in 2018 – by over 50%, to 170,000 – due to Vietnam having extended its e-visa programme in Jan-2018 to include India.

The Vietnam-India market therefore should now be big enough support a regular nonstop service.

VietJet will need to rely on feed as the Vietnam-India market is fragmented

VietJet will need to attract nearly 80,000 Vietnam-India return passengers per annum to sustain an 80% load factor (based on four weekly services using A321s). This would represent less than 30% of the total Vietnam-India market or less, given that the market will likely continue to grow at a rapid rate – particularly since VietJet should be able to stimulate demand. VietJet’s fares are generally very low and the new nonstop product should make Vietnam a more attractive destination for Delhi residents.

However, securing 30% or even 20% market share could be challenging, given that the Vietnam-India market is fragmented and there is no single city pair that accounts for more than 15% of Vietnam-India traffic. Feed on both ends could therefore prove critical.

VietJet will clearly need to rely on connections beyond Ho Chi Minh to make the Ho Chi Minh-Delhi route viable. VietJet has an extensive domestic network in Vietnam, with 17 destinations. The ability to offer connections or stopovers in popular tourist destinations such as Da Nang, Da Lat, Haiphong, Hue, Nha Trang and Phu Quoc should help the airline attract passengers from Delhi.

A partnership with an Indian airline would also help, particularly if VietJet is to increase the Ho Chi Minh-Delhi service to daily. An Indian airline could provide feed from Mumbai, the other main Indian gateway for Vietnam-India traffic, as well as several cities in central and southern India.

Feed from Bangalore, Chennai and Hyderabad is particularly important. The city pairs Ho Chi Minh to Bangalore, Chennai and Hyderabad are the fifth, sixth and seventh largest between Vietnam and India, according to OAG Traffic Analyser data.

Jet Airways already has a partnership with Vietnam Airlines

In 2017 VietJet developed an interline capability and has started working with some full service airlines such as Japan Airlines and Qatar Airways. It could potentially work with an Indian full service airline or LCC, although it could be hard finding an LCC with interline capability and the desire to work with a Vietnamese airline.

Jet Airways would be perhaps the most attractive of the full service airlines in India. However, Jet Airways already has a codeshare partnership with Vietnam Airlines. This codeshare seems to be successful, as Jet Airways has been able to maintain a significant share of the Vietnam-India market since dropping one-stop services to Ho Chi Minh in Mar-2016.

Jet launched services to Ho Chi Minh in Nov-2014 as a tag to one of its daily Delhi-Bangkok flights, using 737-800s. In Jul-2015 Jet switched to a tag on one of its daily Mumbai-Bangkok flights, using larger 737-900s. The Mumbai-Bangkok-Ho Chi Minh flight operated until late Mar-2016, when Ho Chi Minh was dropped entirely.

The switch in origin points from Delhi to Mumbai was not significant because Jet Airways offered a one-stop product from both Delhi and Mumbai for the entire period of its Ho Chi Minh service. Jet Airways has Delhi-Bangkok and Mumbai-Bangkok services that arrive at Bangkok at similar times. The transit time in Bangkok was one to two hours in both directions in both the Ho Chi Minh-Delhi and Ho Chi Minh-Mumbai markets.

Jet Airways could not make Ho Chi Minh work as an online point

Jet struggled with the one-stop service because the product was no different from competitors, which also offered one-stop products from Ho Chi Minh to Mumbai and Delhi (via Bangkok, Kuala Lumpur and Singapore). Jet had fifth freedom rights to carry local Bangkok-Ho Chi Minh passengers, but this in an extremely competitive and low yielding market. Jet’s low frequency, and the fact that it is not a well-established brand in Southeast Asia, made it hard to attract fifth freedom traffic.

The stop in Bangkok also meant that Jet had a two-stop product from Ho Chi Minh to cities in India other than Delhi and Mumbai. Passengers travelling from Mumbai to Vietnamese cities other than Ho Chi Minh also had two stops – and had to endure a self-connection because at the time Jet did not work with any airlines in Vietnam.

The sixth freedom competitors in the Vietnam-India market have the advantage of offering one-stop products between multiple points in Vietnam and several points in India with generally quick connections at their hub. Jet only provided a one-stop product on two city pairs that only account for less than 30% of total Vietnam-India traffic (although they are the two largest city pairs).

VietJet will have a one-stop product on more than 10 city pairs – and an even higher number if it is able to partner with an Indian domestic airline – along with an exclusive non-stop product on the single largest city pair.

Jet Airways remains the second largest airline in the Vietnam-India market

Jet Airways’ decision to suspend the Bangkok-Ho Chi Minh tag and instead rely on a new codeshare with Vietnam Airlines seems to have paid off, as the airline’s share of the Vietnam-India market has only dropped slightly. The codeshare provides quick connections in Bangkok from Hanoi and Ho Chi Minh that are similar to Jet’s previous one-stop online schedule.

Jet Airways also codeshares with Vietnam Airlines in Hong Kong and Singapore, offering Vietnam-India passengers other options, although Bangkok generally provides the quickest option. In Singapore, Jet Airways also codeshares with Jetstar Asia to Ho Chi Minh and Da Nang.

Jet Airways accounted for approximately 20% of total Vietnam-India bookings in 2017, according to OAG Traffic Analyser data. Its share of bookings in 2015, the last full year it operated one-stop services to Ho Chi Minh, was only slightly higher, at 25%. Given the overall growth in the market, Jet Airways actually has more bookings in the Vietnam-India market with Vietnam as an offline point than when Vietnam was part of its online network.

VietJet will also compete against Thai Airways, Malindo, SIA and AirAsia

Since suspending its Ho Chi Minh service, Jet Airways has been able to maintain the position of second largest competitor in Vietnam-India market after Thai Airways.

Thai Airways accounted for approximately 27% of Vietnam-India bookings in 2017. Thai Airways and its full service regional subsidiary Thai Smile currently serve 10 destinations in India. Thai Airways serves both of the main cities in Vietnam (Hanoi and Ho Chi Minh).

Malindo, Malaysia Airlines, Singapore Airlines and AirAsia are the other main one-stop competitors in the Vietnam-India market. All these airlines have several destinations in India, as well as multiple destinations in Vietnam. Therefore they have more one-stop city pairs than Jet Airways, although generally they have fewer city pairs than Thai Airways.

Malindo accounted for a 15% share of Vietnam-India bookings in 2017, followed by Singapore Airlines with 11% (or 12% when its regional subsidiary SilkAir is also included), Malaysia Airlines with 10%, and AirAsia with 7%. The AirAsia figure includes services via both Bangkok and Kuala Lumpur.

VietJet will have to overcome some challenges in the India-Vietnam market
AirAsia and Scoot are the only current LCC competitors in the market, but Scoot’s market share is very small. VietJet will have an advantage over its LCC rivals in the Ho Chi Minh-Delhi market as it will have an exclusive nonstop product. However, VietJet will not have this advantage in other markets, and will have a relatively limited number of one-stop city pairs unless and until VietJet is able to forge a partnership with an Indian airline.

Competition will be intense, as AirAsia and Scoot are both now focusing more on sixth freedom traffic. Malindo is also an aggressive low fare competitor, despite having a full service product. Thai Airways can also sometimes compete with LCCs on price and will continue to have the advantage of offering the greatest number of destinations in India.

Vietnam-India is obviously an attractive market, given the anticipated rapid inbound growth. VietJet should be able to make a nonstop service work, with low fares stimulating an acceleration of the already rapid growth rate in the number of Delhi residents heading to Vietnam for holidays.

However, VietJet will need to invest in marketing in India, where its brand is unknown, and in distributing through local online travel agencies, which are very strong in India. The India market is never an easy one to penetrate.

According to a report on CAPA

October 15: VN-Index sheds 1.9% on low liquidity

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Though foreigners again net buyers, losses on all VN-Index, HNX-Index and Upcom-Index.

Caution was the overriding sentiment on October 15 after a week of major adjustments. Cash flow was quite limited, while selling pressure remained and was focused on bluechips, taking the market downwards.

In the morning the VN-Index was struggling at around 960 points. After one hour, only BMP and STB in the VN30-Index had moved above the benchmark, albeit only slightly, while SAB and DHG stayed at their reference price and the remainder lost ground.

Selling pressure continued throughout the day. The VN-Index lost 18.44 points (1.9 per cent) to 951.64 points and the HNX-Index 2.05 points (1.86 per cent) to 107.71 points.

Market liquidity did not improve, with a matching order value of VND2.5 trillion ($107.2 million). One bright spot was foreign investors, who net bought for the second consecutive day, by VND67 billion ($2.8 million).

Selling pressure increased significantly at the beginning of the afternoon session. By 1.20pm, the VN-Index was down 15.34 points (1.58 per cent) to 954.51 points, the HNX-Index 1.42 points (1.29 per cent) to 108.34 points, and the UPCoM-Index 0.33 points (0.62 per cent) to 52.42 points.

The number of losers across the market was 310, against 178 risers.

Securities companies have made forecasts for the stock market in the fourth quarter. “The outlook for Vietnam’s stock market in Q4 is still positive thanks to support from the continuation of the recovery cycle in the economy, creating momentum for business activities,” a representative from KB Securities Vietnam told the “What are the opportunities in a fluctuating market?” conference on October 11.

The representative noted that a correction in the market in the fourth quarter will be an opportunity for investors to increase their holdings, focusing on large caps with financial strength, and to benefit from the economic growth cycle with advantages in scale, dominant market shares, and supply chains in sectors such as information technology, logistics and consumer goods.

 

Reporting by My Van, read full article on VNE

Apple supplier to shift production from China to Vietnam

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The shift is aimed to avoid being caught up in the escalating trade tensions between the United States and China.

GoerTek has announced its intention to move production of the wireless earphones from China to Vietnam to avoid being caught up in the escalating trade friction between the United States and China, the Nikkei Asian Review reported.

GoerTek has asked all suppliers involved in AirPods production to confirm by the end of this week whether they can ship all necessary materials and parts directly to Vietnam, the newswire cited a source in the supply chain as saying.

The decision has not yet been finalized as it requires further discussion with Apple, which has been informed of the plans. The Chinese company, based in the eastern city of Weifang, also said it hopes all suppliers maintain original contract prices and deliver to previously agreed schedules.

GoerTek currently has a production facility in northern Vietnam near Hanoi city making wired headsets for iPhones.

China is not only Apple’s most important manufacturing base, but the US company also relies on the Chinese market for some 20% of its annual revenue. Any shift by Apple could trigger big consequences.

AirPods, along with the Apple Watch and smart speaker HomePod, were initially included in the US$200 billion worth of Chinese goods that were hit with a 10% tariff starting on September 24. However the products won a last-minute exemption. US President Donald Trump has threatened to impose additional tariffs on the remaining US$267 billion of imports from China in the near future, bringing the total value to US$517 billion, exceeding US$505 billion worth of goods that China shipped to the US last year.

Meanwhile, Cheng Uei, which supplies chargers and connectors for iPhones and Android smartphones, said it is considering bringing some production back to Taiwan and Southeast Asian countries that may include Thailand, Vietnam and the Philippines because of the US-China trade tensions.

“The supply chains there are more developed compared with other emerging markets, while the labor costs are also cheap,” the company’s Chairman T.C. Gou said.
However, Gou said it is not easy to shift away from China, with mature supply chains established there for decades. Local Chinese governments are also offering more tax incentives and friendly investment policies to encourage manufacturers to stay, he said.

Minh Anh reports on HNT

Peaceful rice fields in Northern Vietnam

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Neither Rice Terraces of Sapa, Lao Cai province nor Mu Cang Chai, Yen Bai provice of Vietnam, but The Rice Terraces of the Philippine Cordilleras were the first “cultural landscape” to make the UNESCO World Heritage List.

“When I first saw this photo, I thought it was a natural landscape. Then I noticed the striped trenches cascading down the hills like green waves and realized I was looking at something manmade. It seemed like a stunning landscape design, a clash between hill and sea. But this isn’t some grand piece of public artwork. It’s a rice field.” Ilana Strauss wrote on treehugger.com.

Perhaps any Vietnamese person would have known that, but I’m from Illinois. Cornfields do not look like this. Cornfields are overgrown carpets from sky to sky. (No offense, corn. You didn’t choose this life for yourself.) But these rice paddies? They’re worth staring at.

Sapa, Vietnam

The Internet tells me these so-called “terrace steps” keep water on the hill, rather than at the bottom of it, making it easier to water the rice and saving water. Pretty cool technique, huh? The Rice Terraces of the Philippine Cordilleras were the first “cultural landscape” to make the UNESCO World Heritage List.

“For 2,000 years, the high rice fields of the Ifugao have followed the contours of the mountains,” says UNESCO. “The fruit of knowledge handed down from one generation to the next, and the expression of sacred traditions and a delicate social balance, they have helped to create a landscape of great beauty that expresses the harmony between humankind and the environment.”

 

By Ilana Strauss

Second group of VN’s peacekeeping force sets off for South Sudan

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A ceremony was held at Tan Son Nhat International Airport in Ho Chi Minh City on October 15 to see off the second group of Vietnam’s first Level-2 field hospital to the United Nations peacekeeping mission in South Sudan. 

Speaking at the ceremony, Deputy Defence Minister Sen. Lieut. Gen. Nguyen Chi Vinh, head of the steering committee of Vietnam’s UN peacekeeping operations, asked leaders of the hospital to ensure safety for the staffers and carry forward the spirit of solidarity to successfully fulfil tasks assigned by the UN, Vietnamnet reported

He also requested the Vietnam Department of Peacekeeping Operations to implement policies towards families of the officers and soldiers, and pledged that the Defence Ministry will continue to coordinate with relevant agencies and units to create the best possible conditions for the hospital to operate in South Sudan, contributing to raising the position and prestige of Vietnam and the Vietnam People’s Army in particular at the international arena.

The hospital is the first-ever independent unit of Vietnam to join the UN peacekeeping operations. It will replace the second-level field hospital of the UK army in Bentiu, South Sudan, to provide medical care for staffers of the UN peacekeeping mission in South Sudan within one year.

On October 1, the first group of the hospital with 30 members set off for the African country.

On November 25, 2014, the Defence Ministry issued a decision to establish the Level-2 field hospital with a 70-strong staff, a step to realise the Party and State’s policy on joining the United Nations’ peacekeeping activities in the field of humanitarian activities.

Illegal kidney trading ring busted

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Police in Hanoi has busted an online kidney trading ring which involved four locals, Dtinews reported

On October 15, Hanoi police announced that they had prosecuted and arrested Tran Van Phuong, 29, from Bac Giang Province for illegal human organ trafficking.

Three other suspects including 22-year-old Le Thuy Linh, 30-year-old Hoang Ngoc Tien and 27-year-old Phan Van Hung are also being investigated.

Due to the rising demand for kidney transplants in Hanoi, Tran Van Phuong used Facebook to find sellers and buyers. He also organised a trading ring with accomplices. The buyers and sellers were asked to make a fake organ donation form.

From January to September, he succeeded in completing three kidney transactions, paying from VND250m (USD10,700) to VND320m. They sold the organs from VND340m to VND360m.

Hung and Tien acted as drivers, transporting the sellers and buyers to compatibility tests. They were paid VND5m (USD214) for each successful transaction. Linh was the cook for the group and their customers during the whole time.

Saigon’s Thu Thiem tunnel has been reopened

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The Thu Thiem Tunnel in Saigon has been reopened to traffic following a temporary closure today early morning.

The tunnel was shutdown after a truck crashed into scaffolding at the entrance of the tunnel in District 2.

According to a report on VNS, the incident caused the scaffolding to collapse and a motorcyclist was thrown from his vehicle. The rider was taken to hospital for emergency treatment. Local police is now searching for the driver, who fled the scene after the incident.

The accident caused traffic to grind to a halt for 5 hours in surrounding areas, including on Nguyen Co Thach Street, Thu Thiem Bridge, Nguyen Huu Canh Street and Ton Duc Thang street.

Work to clear the road began quickly on Monday morning | Source: VNS

The tunnel, running under the Saigon River, which is 1.49km long, 33m wide and 9m high. The tunnel links the new urban area of Thu Thiem in District 2 with downtown Saigon in District 1.

It has six lanes which can carry around 45,000 automobiles and 15,000 motorcycles daily.

 

Read full article on VNS

App-based taxi companies must be operated as traditional taxi in Vietnam

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Grab and every ride hailing firm in Vietnam may soon have to display electronic lights on their cars showing the word ‘TAXI’, if the Government approves a proposal from the Ministry of Transport (MoT).

It is one of the recommendations in the latest amended draft decree built by MoT to replace Decree No 86/2014/NĐ-CP on conditions for automobile transportation business.

According to a report on VNS, the ministry proposes that app-based taxi cars with less than nine seats should be treated the same as traditional taxis to ensure fairness, transparency and the same responsibilities towards customers.

If this regulation is approved, all vehicles will have to attach the signal “TAXI CAR” on the car glass; list full information on the vehicle as prescribed; and there must be a light box with the word “TAXI” fixed on the roof of the cars.

For traditional taxi firms, if using the metre calculator, these calculator tools must be inspected and sealed by a competent agency and must have receipts connected to the meters on the vehicle. Drivers must print invoices or receipts and return to the passengers at the end of the journey.

Receipts must include at least the following information: the name of the transport business unit, car number plate, the traveled distance in Km and the total amount of money in VND. Chargers and printers must be put at the positions that passengers are easy to observe.

For app-based taxis, vehicles must ensure the connection and provide passengers with the same details.

Software must comply with the provisions of law on e-commerce before implementation.

Enterprises and cooperatives providing taxi services using the software must send their electronic invoices to passengers and send information of electronic invoices to the General Department of Taxation in accordance with the regulations of the Minister of Finance.

This draft decree has just been submitted to the Prime Minister for approval after taking comments of National Assembly’s Economic Committee; Prime Minister’s working group, Central Institute for Economic Management; Vietnam Chamber of Commerce and Industry; taxi associations in Hanoi, Danang and HCMC; Vinasun Corporation and Thanh Buoi Company.

 

Read full article on VNS

Vietnam invests over US$240 million in three hospitals

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Vietnamese Prime Minister has given the green light for Ho Chi Minh City to build three hospitals, estimated total investment of US$240 million.

Three new infirmaries include the General Hospital Thu Duc, the General Hospital Hoc Mon and the General Hospital Cu Chi. Spending on the infirmaries will be taken from the city budget to improve healthcare services for city dwellers.

Nguyen Tan Binh form Department of Health said the construction project of three hospitals is one of the health sector’s six major projects from now to 2020 with the vision to 2030.

According to a report on SGGP, a local newspaper, six major projects include to build five hospitals: City Children Hospital, Tumor Hospital, the General Hospital Hoc Mon, Cu Chi, Thu Duc, and Pham Ngoc Thach Medicine University Hospital. Amongst hospitals, only City Children Hospital was put into operation in 2017 and the Tumor Hospital will be put in use in 2019.

The three hospitals will be equipped with modern devices to help reduce patient overload in big hospitals in inner city and provide examination and treatment on residents in outlying districts and neighboring south east provinces.

Regarding the personnel preparation, Pham Ngoc Thach Medicine University has allowed to train more students who will work in clinics in districts. Moreover, medical workers in big hospitals will help their peers in newly-built hospitals and take turn to work in new hospitals in six months or one years.

After the City Children Hospital received patients, it has helped reducing patient overload for Children Hospital 1 and 2 especially in fighting hand-foot-mouth disease and other diseases.

Alongside with this, medical clinic system in districts work well. For years, People’s Committee has poured much investment in these clinics by building new facilities and repairing old ones. District clinics can treat normal diseases and some of them receive good response from patients.

Next time, Can Gio general Hospital and a hospital in district 12 are expected to put into operation and Nha Be hospital and hospital in district 2 will start the work later on. Moreover, hospitals in 24 districts citiwide will have more new wards to meet increasing demand of patients. It is expected grass-root hospitals will help fighting overload in big medical institutions by 2020.

 

By THANH AN - Translated by UYEN PHUONG
Read full article at on SGGP

Heavy traffic in Saigon due to an accident at Thu Thiem Tunnel

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5AM today, a truck crashes in construction zones at Saigon River Tunnel.

 

Many things falling down, traffic from both sides of Thu Thiem Tunnel has been blocked. | Source: Zing.vn

 

The Thu Thiem Tunnel is an underground road tunnel

 

Everyone has switched to the rest options to cross the Saigon river, such as Nguyen Huu Canh or Dien Bien Phu street. | Source: Zing.vn

 

On Thu Thiem bridge, from District 2 to Binh Thanh District. One of few options to reach the city center if the Thu Thiem Tunnel closed | Source: Social Media

 

So the traffic in Nguyen Huu Canh street paralyzed for hours |Source: Social Media

Police are investigating further.

The Thu Thiem Tunnel is an underground road tunnel designed to cross the Saigon River in Ho Chi Minh City, the largest city in Vietnam.

The tunnel and associated highway were constructed to link the Thu Thiem Peninsula to National Highway 1A and provide a new integrated transport route for the country.

The project began in 2004 with $189m in capital provided by Japanese ODA (official development assistance) and a consortium of four Japanese contractors, namely Obayashi Corporation, Taisei Corporation, the Kumagai-Kajima consortium and Toa Corporation.

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