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.

VDSC Weekly Market Recap: PAC, GEX, CTI, PPC

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The week had started with relatively subdued price action, though slightly downward. At around USD200mn, liquidity was on par with its recent average. There was relatively little in terms of big news flow from Vietnam other than Vietnam is edging closer to hosting its first F1 race in 2020.

If anything, news about Vietnam was quite positive. Standard Chartered and UOB Bank (Singapore) both revised up their 2018 GDP growth target for Vietnam. Standard Chartered set it at 7%, higher than its previous forecast of 6.8%, while UOB forecasts 6.9% GDP growth in 2018. Their main rationale was that strong manufacturing activity from FDI inflows would support Vietnam’s medium-term growth.

However, on Thursday morning, echoing what had happened Wednesday in the US, all hell broke loose in Vietnam. Excluding some extreme volatility in 2001, when there were just a few stocks and the market was entirely driven by retail punters, the 4.84% drop on Thursday, was one of the VNIndex’ biggest single-day decline in its history!

The good news is that throughout Thursday’s trading there was sufficient liquidity for price discovery. And on Thursday and Friday there were bottom fishers willing to get in at lower prices.

The VNIndex closed the week down 2.6% on relatively strong trading, worth VND25,972.67bn (USD1.13bn). So far this quarter, the VNIndex has lost 4.6% but it’s still one of the better performing markets in the region, and it hasn’t done so bad against to US markets either.

Talking to clients, investors, and other brokers, most of them seem to think this was a knee jerk reaction to the sharp pullback in the US. And the action we saw on Friday seems to point to that idea, as the market bounced back +2.56%.

Foreign investors were net buyers on Friday, ending a 6-day streak of net selling. They injected roughly USD12mn into Vietnamese equities. Vietnam is one of the few countries in Asia with net inflows YTD and where foreign investors continue to invest.

Vietnam’s fundamentals are intact, and Vietnam’s capital market are still not very correlated with US markets. However, correlation is a funny indicator. When these types of “flash crashes” happen, correlations can increase very quickly. What is sure, Vietnam’s market is not immune to global pressure from global equity market volatility, rising interest rates, a strong US dollar, rising oil prices, and the continued row between US and China.

Earlier this week, I had looked at foreign funds’ cash positions. The 16 funds we looked at manage in aggregate an AUM of USD3.5bn. As of their latest updates, they only have about ~3% of their portfolio in cash. This may be explained by the fact that many Vietnam-focused funds are now open-ended. In any event, this doesn’t give them a lot of “dry powder” at times when the market corrects and buying opportunities arise.

Rong Viet Securities Equity Research Summary

Analyst Pinboard

Dry Cell And Storage Battery JSC (HoSE: PAC): Competitive Landscape of the Battery Industry and Position

· Despite fierce competition, PAC’s market share remains stable.
· In the automobile battery market, the company accounts for 40-45% of total sales. Meanwhile in the motorbike battery segment, PAC has only 7%.
· Market share of the leading battery manufacturers remained stable over the last few years. We believe that its competitive edge is attributable to an effective management distribution system.
· The company uses advanced software to control its distribution channels.
· Sales administration policy gives it power over its distributors.
· PAC establishes control not only at the distribution system level but also at the retail level.
· We find PAC’s sales administration relatively optimal but we believe that the market share of the firm will not increase in the future but stay stable.

Vietnam Electrical Equipment JSC (HoSE: GEX ) – Restructuring of the electrical equipment sector promises positive results

· After the Ministry of Industry and Trade’s divestment in December 2015, GEX began its restructuring to become a conglomerate.
· Gelex restructured itself into three main sectors: electrical equipment and other industries; Infrastructure including logistic and utility; and real estate.
· GEX has transferred all of its ownership in its subsidiaries operating in the electrical equipment industry to GELEX Electric.
· Gelex also disclosed its intention to increase its ownership and delist those companies.
· We believe that information transparency is an issue to keep in mind whence the subsidiaries of the electrical equipment industry are no longer public companies.
· GEX plans to increase its ownership in Dong Anh Electric Equipment (UpCOM: TBD) to make it become a subsidiary of Gelex.
· Gelex expects to increase its electrical equipment sector efficiency after the “move under one roof”
· After completing the M&A and restructuring process, GEX electrical production mix will cover fully high, medium and low voltage.

Cuong Thuan IDICO Development Investment Coporation (HoSE: CTI ) – Rebound in 2H 2018

· Cuong Thuan Investment Development IDICO JSC (HSX: CTI) specializes in infrastructure construction and quarries. It focuses on these as a long-term growth driver.
· Top line revenues dropped in 1H18, except for stone quarries. Revenues and NPAT came in at VND416bn (-25% YoY) and VND56bn (-20% YoY), respectively.
· Construction job is expected to recover in 2H18 as BOT 319 Long Thanh – HCMC progress was restored in July.
· On the other hand, Thien Tan 10 quarry was exploded in July, regaining exploit activities.
· Coupled with boosting construction activities, 2H18 result may turn positive. 3Q18 revenue and NPAT are expected to be around VND320bn (+5% YoY) and VND53bn (+62% YoY), respectively.

Pha Lai Thermal Power JSC (HoSE: PPC ) – Update on 3Q18 Business Performance

· Core earnings of PPC in 3Q18 remained stable, meanwhile, new changes in PPC’s capex plan helped to reduce the risk for the company.
· PPC managed a significant improvement in its average selling price (ASP) while sales volume decreased by 15% YoY to VND1.254tn.
· Changes in capex plan results in lower risks for PPC
· 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.
· Overall, while we consider the prospect of Pha Lai 3 power project uncertain and too early to factor in PPC’s earnings, we still have a positive view because of the above-mentioned changes in its capex plan. This could help maintain its ability to pay a stable cash dividend of VND2,500/share.

Inflation Expectations

· Monetary policy is always driven by inflation expectations. In Vietnam, the Government and the State Bank are aware of the above relationship and make efforts to keep inflation in check.
· In recent years, domestic factors have been the driver of inflation. This year, the rise of pork prices is a contributor to inflation. We forecast 2018’s inflation to be around 4.1%-4.2%, slightly above the target.
· Local energy prices have risen 10% YTD while, in our opinion, they should have been higher as imported energy prices upped 20-30% YTD. The delay of the environmental protection tax on gasoline prices until 2019 and the stop to increase other government-controlled fees are also notable.
· From our point of view, the government has done a good job to sustain macro stability, including anchoring inflation expectations.

How the ‘Lady Gaga of Vietnam’ was effectively banned from singing in her own country

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“I used to be a pop star,” Mai Khoi says in her presentation at the Oslo Freedom Forum this September. “I had a lot of fans, shows and money.”

Khoi, known as the Lady Gaga of Vietnam, traded in the trappings of fame to push for human rights and creative expression in her home country. It’s a decision that’s gotten her effectively banned from singing in the authoritarian country — and one she doesn’t regret.

“I was living in a good life,” says the 34-year-old, “but it wasn’t enough for me.”

The pop star is petite and her English is lilting, as though her voice has been pressed upon a sinusoidal curve. Her words feel carefully plucked and laid down, one and then the next, in an earnest effort to communicate herself clearly, even in a tongue in which she has to search for words deliberately. (English is not Khoi’s first language. Her quotes are transcribed here in the way she speaks.)

Two years ago, Khoi was a successful musician with multiple albums who’d won one of her country’s biggest music awards. Still, she grew bored of the Vietnamese pop industry thanks to the country’s restrictive censorship system. “I couldn’t feel free,” she says.

Vietnam is a communist, single-party state that forbids any challenge to its leadership and where rights such as freedom of speech and religion are severely restricted. Its human rights record is dire, according to non-profit Human Rights Watch, and some say it is “contending for the title of most repressive Asian government.”

She stopped spending time with singers and musicians who she said censored themselves and spent time instead with “dissident artists who were doing some interesting things.”

Soon, she became inspired to take political action. In 2016, in an effort to highlight the limits of political expression, Khoi attempted (unsuccessfully) to register herself for a parliament seat. “I was rejected from the ballot unfairly and [without any] transparency because Vietnam is a one-party state that does not allow for political opposition,” says Khoi.

This move was the start of Khoi’s problems with the government. Three weeks after submitting her nomination to the National Assembly, Khoi’s music show was raided, she says, and a notice was put into a Vietnamese “police magazine” with the intention “to let people know that I am effectively banned from singing in public. So I couldn’t sing in public in my country.”

To be clear, Khoi is “effectively” banned because the Vietnamese government can not specifically ban her from performing, she explains. However, publishing the notice had a chilling effect. “People don’t dare to invite me to sing,” she says.

Since Vietnam’s media is state run, Khoi was also no longer invited to appear on TV or in the press, Khoi explains to CNBC Make It.

Khoi in 2010. Photo courtesy: Mai Khoi.

Also that year, Khoi attended a public protest after toxic industrial waste was released from a steel plant called Formosa Plastic contaminating waters and killing fish. She said several thousand peaceful protestors took to the streets and were beaten bloody by the police — including women and children, Khoi tells CNBC Make It.

“And what I’ve seen in that protest,” she says, “that’s the most strong feeling, the most strong emotion I receive and it make me sing out loud.”

By May 2016, President Barack Obama visited Vietnam and Khoi was among those who met with him. She had made a video inviting Obama to meet with her ahead of his visit. “You know, the video went viral,” Khoi says in her presentation at the Oslo Freedom Forum.

A friend with a relative who worked in the Vietnamese government informed Khoi that she would not be able to attend the meeting with Obama because the state police had her under 24-7 surveillance.

She went into hiding and found her way into the meeting. “I could come to the meeting,” she says. “I made it.” Khoi delivers this dramatic piece of her story softly to the Oslo Freedom Forum audience and with a proud smile. She is rewarded with loud clapping.

In his Vietnam visit, Obama acknowledged the work of popular artists to speak out on behalf of freedom of speech and expression. In a video statement at the time, while seated next to Khoi, he said: “It is very hard to prosper in this modern economy if you haven’t fully unleashed the potential of your people and your people’s potential in part derives from their ability to express themselves and express new ideas, to try to right wrongs that are taking place in the society.”

Obama added, “And so it is my hope that increasingly the Vietnamese government seeing the enormous strides the country is making has more confidence that its people want to work together but also want to be able to assemble and participate in the society.”

Obama also shared with Khoi some important advice about change, saying that difficult change must come slowly, like how water shapes a rock, Khoi tells CNBC Make It.

One challenge Khoi faced in getting Vietnamese people on board with her mission was that people in her country don’t understand what freedom of expression means or why it is important.

To show them what was possible, she created a sign to protest President Donald Trump who came to Vietnam but did not discuss human rights. The message on the sign: “Piss on you Trump.”

Mai Khoi protesting President Trump’s visit to Vietnam. Photo by Bennett Murray

“The protest sparked a healthy debate about freedom of expression in Vietnam,” Khoi says to The Economist. It also underscored the difficulties ahead for the Vietnamese in embracing new rights.

“What surprised me most was the extent to which people in Vietnam have authoritarian ways of thinking,” Khoi says to The Economist.

Khoi’s life has changed dramatically since becoming an activist. After returning from a tour in Europe last March, she was detained in the Hanoi airport for eight hours.

The detainment saddened Khoi. She felt ill thinking of the system that would allow her to be detained. It was a reminder that the people of Vietnam “are so weak we can’t do anything to fight for our right,” she tells CNBC Make It.

Since becoming a focal point of the authoritarian regime in Vietnam, Khoi has not been able to earn a living, she says. Fans send her money, in part, through a “donate” page on her personal website to help her meet basic needs and support her activism.

Those fans have also changed as she’s become more politically active. She says many Vietnamese are too fearful to support a dissident.

But she has new fans, she says, people with open minds and passionate hearts. “They can see what happened in Vietnam and they understand why I’m standing up for human rights,” she says.

Currently, Khoi is working on a graphic novel and video art to raise awareness for the lack of human rights in Vietnam. She’s also taking on yet another behemoth: Facebook.

Facebook had an essential role in fueling expression in Vietnam and the service helped her spread the word about her nomination to the National Assembly and even to her meeting with Barack Obama. However, she says in an op-ed for the Washington Post, the site has no independent oversight in Vietnam leading to locked accounts, silenced journalists and and paid accounts sowing division.

Khoi demands change: “Facebook has been a huge force for freedom in Vietnam, but this positive effect is now being reversed as the social media platform is delivered to authoritarianism. I hold Mark Zuckerberg accountable for this,” she writes.

Facebook had not yet responded to an email sent Thursday by CNBC Make It seeking response to the letter from Khoi when this story was published.

Mai Khoi. Photo credit: Julie Vola & The Word

“I used to be a pop star,” Mai Khoi says in her presentation at the Oslo Freedom Forum this September. “I had a lot of fans, shows and money.”

Khoi, known as the Lady Gaga of Vietnam, traded in the trappings of fame to push for human rights and creative expression in her home country. It’s a decision that’s gotten her effectively banned from singing in the authoritarian country — and one she doesn’t regret.

“I was living in a good life,” says the 34-year-old, “but it wasn’t enough for me.”

The pop star is petite and her English is lilting, as though her voice has been pressed upon a sinusoidal curve. Her words feel carefully plucked and laid down, one and then the next, in an earnest effort to communicate herself clearly, even in a tongue in which she has to search for words deliberately. (English is not Khoi’s first language. Her quotes are transcribed here in the way she speaks.)

Two years ago, Khoi was a successful musician with multiple albums who’d won one of her country’s biggest music awards. Still, she grew bored of the Vietnamese pop industry thanks to the country’s restrictive censorship system. “I couldn’t feel free,” she says.

Vietnam is a communist, single-party state that forbids any challenge to its leadership and where rights such as freedom of speech and religion are severely restricted. Its human rights record is dire, according to non-profit Human Rights Watch, and some say it is “contending for the title of most repressive Asian government.”

She stopped spending time with singers and musicians who she said censored themselves and spent time instead with “dissident artists who were doing some interesting things.”

Soon, she became inspired to take political action. In 2016, in an effort to highlight the limits of political expression, Khoi attempted (unsuccessfully) to register herself for a parliament seat. “I was rejected from the ballot unfairly and [without any] transparency because Vietnam is a one-party state that does not allow for political opposition,” says Khoi.

This move was the start of Khoi’s problems with the government. Three weeks after submitting her nomination to the National Assembly, Khoi’s music show was raided, she says, and a notice was put into a Vietnamese “police magazine” with the intention “to let people know that I am effectively banned from singing in public. So I couldn’t sing in public in my country.”

To be clear, Khoi is “effectively” banned because the Vietnamese government can not specifically ban her from performing, she explains. However, publishing the notice had a chilling effect. “People don’t dare to invite me to sing,” she says.

Since Vietnam’s media is state run, Khoi was also no longer invited to appear on TV or in the press, Khoi explains to CNBC Make It.

Also that year, Khoi attended a public protest after toxic industrial waste was released from a steel plant called Formosa Plastic contaminating waters and killing fish. She said several thousand peaceful protestors took to the streets and were beaten bloody by the police — including women and children, Khoi tells CNBC Make It.

“And what I’ve seen in that protest,” she says, “that’s the most strong feeling, the most strong emotion I receive and it make me sing out loud.”

By May 2016, President Barack Obama visited Vietnam and Khoi was among those who met with him. She had made a video inviting Obama to meet with her ahead of his visit. “You know, the video went viral,” Khoi says in her presentation at the Oslo Freedom Forum.

A friend with a relative who worked in the Vietnamese government informed Khoi that she would not be able to attend the meeting with Obama because the state police had her under 24-7 surveillance.

She went into hiding and found her way into the meeting. “I could come to the meeting,” she says. “I made it.” Khoi delivers this dramatic piece of her story softly to the Oslo Freedom Forum audience and with a proud smile. She is rewarded with loud clapping.

In his Vietnam visit, Obama acknowledged the work of popular artists to speak out on behalf of freedom of speech and expression. In a video statement at the time, while seated next to Khoi, he said: “It is very hard to prosper in this modern economy if you haven’t fully unleashed the potential of your people and your people’s potential in part derives from their ability to express themselves and express new ideas, to try to right wrongs that are taking place in the society.”

Obama added, “And so it is my hope that increasingly the Vietnamese government seeing the enormous strides the country is making has more confidence that its people want to work together but also want to be able to assemble and participate in the society.”

Obama also shared with Khoi some important advice about change, saying that difficult change must come slowly, like how water shapes a rock, Khoi tells CNBC Make It.

One challenge Khoi faced in getting Vietnamese people on board with her mission was that people in her country don’t understand what freedom of expression means or why it is important.

To show them what was possible, she created a sign to protest President Donald Trump who came to Vietnam but did not discuss human rights. The message on the sign: “Piss on you Trump.”

“The protest sparked a healthy debate about freedom of expression in Vietnam,” Khoi says to The Economist. It also underscored the difficulties ahead for the Vietnamese in embracing new rights.

“What surprised me most was the extent to which people in Vietnam have authoritarian ways of thinking,” Khoi says to The Economist.

Khoi’s life has changed dramatically since becoming an activist. After returning from a tour in Europe last March, she was detained in the Hanoi airport for eight hours.

The detainment saddened Khoi. She felt ill thinking of the system that would allow her to be detained. It was a reminder that the people of Vietnam “are so weak we can’t do anything to fight for our right,” she tells CNBC Make It.

Since becoming a focal point of the authoritarian regime in Vietnam, Khoi has not been able to earn a living, she says. Fans send her money, in part, through a “donate” page on her personal website to help her meet basic needs and support her activism.

Those fans have also changed as she’s become more politically active. She says many Vietnamese are too fearful to support a dissident.

But she has new fans, she says, people with open minds and passionate hearts. “They can see what happened in Vietnam and they understand why I’m standing up for human rights,” she says.

Currently, Khoi is working on a graphic novel and video art to raise awareness for the lack of human rights in Vietnam. She’s also taking on yet another behemoth: Facebook.

Facebook had an essential role in fueling expression in Vietnam and the service helped her spread the word about her nomination to the National Assembly and even to her meeting with Barack Obama. However, she says in an op-ed for the Washington Post, the site has no independent oversight in Vietnam leading to locked accounts, silenced journalists and and paid accounts sowing division.

Khoi demands change: “Facebook has been a huge force for freedom in Vietnam, but this positive effect is now being reversed as the social media platform is delivered to authoritarianism. I hold Mark Zuckerberg accountable for this,” she writes.

Facebook had not yet responded to an email sent Thursday by CNBC Make It seeking response to the letter from Khoi when this story was published.

Khoi says she doesn’t think of herself as an activist. In her mind, she’s an artist working to help people act and think in new ways.

“For me, it’s about opening new ways of thinking and acting,” Khoi says to The Economist, “making the unthinkable thinkable and the unspeakable speakable.”

She tells Make It later, by email, “What I’m doing now is sharing my stories, my experiences, my music. I’m still an artist who inspires people to think and act in the new way.”

According to a report on CNBC

Ahead of their time: 10 radical cars that never were

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The automotive industry is facing some of the biggest changes in its history. In the foreseeable future, most cars will be either fully electric or entirely autonomous, and new technologies may mean the shape of the automobile as we know will be completely changed. Still, there are still few visible signs of a paradigm shift in car design — it seems the industry is not quite ready to reinvent the wheel.

There may be no better a time, then, to look back at the most visionary and innovative car designs from the past and search for clues as to which factors can trigger uncompromising creativity and true innovation in times of technological and social change. Here are 10 cars that took the world by surprise.

Buick Y-Job

Designed by Harley J. Earl and unveiled in 1938, the Buick Y-Job is considered the world’s first concept car from a major car manufacturer. It featured an electric roof, electric windows, and a sculptural body that subsequently inspired generations of car designers.

Buckminster Fuller’s Dymaxion

Designed by Harley J. Earl and unveiled in 1938, the Buick Y-Job is considered the world’s first concept car from a major car manufacturer. It featured an electric roof, electric windows, and a sculptural body that subsequently inspired generations of car designers.

Buckminster Fuller’s Dymaxion

Inspired by recent innovations in aviation and space travel, General Motors unveiled the first of three Firebird prototypes in 1953. The concept car, which was powered by a gas turbine and looked more like a rocket on wheels than a car, thanks to its wings and fins, could be considered the blueprint for most US cars from the rock ‘n’ roll years.

Alfa Romeo B.A.T. 7


Considering the baroque shape of the Alfa Romeo 1900s that littered the streets of Italy in the 1950s, it’s hard to believe that Bertone’s aerodynamic B.A.T. prototypes were based on that exact car.

Combining American Jet-Age shapes with Italian “grandezza” and an impressive drag coefficient, the Franco Scaglione-designed “Batmobiles” were stunning examples of form following function.

Lamborghini Marzal

The Lamborghini Marzal, a one-off prototype concept car, designed by by Marcello Gandini of the Bertone design studio, at a preview of the London Motor Show at Earl’s Court, 17th October 1967. (Photo by Mike McLaren/Central Press/Hulton Archive/Getty Images) Credit: Mike McLaren/Hulton Archive/Getty Images

Conceived by Bertone’s wunderkind designer Marcello Gandini, the Lamborghini Marzal was one of the earliest showcases of the razor-sharp wedges that would define Italian car design right up until the 1980s. Revealed at Geneva in 1967, the ultra-low, gull-winged, mid-engined coupé is still one of the most stunning concepts in automotive history.

Ferrari Modulo

Designed by Pininfarina’s Paolo Martin during his holiday break in 1968, the Ferrari Modulo was an uncompromising geometric extravaganza. Only 37 inches high and equipped with a big V12 engine, the UFO-on-wheels was said to exceed speeds of 350kph, although the missing wheel arches made it almost impossible to turn any corners.

Maserati Boomerang

From the VW Golf to the Fiat Panda, Giorgetto Giugiaro’s cars were built for the millions. But his one design that stood out the most was the Maserati Boomerang. The brutalist concept was first shown in 1971 and considered the ultimate wedge-shaped prototype before the oil crisis hit the industry and forced car designers to return to earth.

Audi Avus

One has to remember that, in 1994, Audi was regarded as a conservative and traditional brand. But that promptly changed when the German manufacturer showed its all-aluminum Avus Quattro concept in Tokyo. And while the quicksilver-like concept car never went into production, Audi’s new look inspired icons such as the TT.

Ford 021C

The Apple iMac wasn’t the only Pantone-colored product introduced in 1999. Designed by Marc Newson, the rather tiny Ford 021C featured a playful interior and resembled a child’s drawing of a car. While Newson’s concept remained a one-off, many bestselling city cars from the new millennium, including the Smart and the new Mini, followed the philosophy that, aesthetically, cars could still be fun.

United Nude Low Res Car

It might be symptomatic that one of the last decade’s most daring concept cars was created by a shoe designer rather than an automotive specialist. Inspired by Marcello Gandini’s Lamborghini Countach, United Nude reduced the wedge-like body to its most simple vector shapes. And while it might not be to everyone’s tastes, the project shows the endless possibilities of 3D printing and DIY prototyping, which could lead to a renaissance of small design studios and manufacturers.

According to a report on CNN

 

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