Rising oil prices to benefit growth

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A surge in the price of crude oil on the global market is fueling the state coffers, but may affect the government’s efforts to curb inflation.

On October 10, 2018, on the London market, the average price of Brent oil rose to US$85.17 per barrel for December contracts, and the average price of WTI oil climbed to US$75.07 per barrel for November contracts.

The 30% price climb since early this year followed the US sanctions on Iran and a fear of global supply shortages sparking a debate over the possibility of US$100 Brent. These prices are for contracts of November 2018.

The Ministry of Finance yesterday reported that Vietnam’s total state revenue from crude oil exports is estimated to hit VND6.5 trillion (US$287.6 million) in September, and VND48.1 trillion (US$3.13 billion) for this year’s first nine months, up 42.5% in comparison to the same period last year.

It is estimated that an increase of US$1 in crude oil exports will bring in roughly VND1 trillion (US$44,24 million) to Vietnam.

Vietnam’s crude oil export turnover decreased from US$2.93 billion in 2015 to US$2.35 billion in 2016. However, the figure slightly bounced back to US$2.87 billion last year.

It is expected that Vietnam will export approximately 11.23 million tonnes of crude oil, lower than the 13 million tonnes last year.

Key export markets include China, Thailand, Australia, the US, Japan, Singapore, and Malaysia.

Under a recent a draft scenario on economic growth for 2018, issued by the Ministry of Planning and Investment (MPI), an average price of US$65 per barrel is forecast for the whole of 2018. Based on the specific developments of the oil price, the government can decide on a climb in exploiting more crude oil.

Moreover, if the crude oil price hovers at an average of US$65 per barrel this year – higher than last year’s average of US$60 per barrel – the economy will grow higher than the 6.7% rate previously set by the National Assembly.

However, international organisations have forecast that the average oil crude price this year is expected to hover at US$70-80 per barrel. Therefore, it will likely push up the petrol price in Vietnam by 5-15% and may increase inflation by 0.28-0.64% for the whole of 2018.

In fact, Vietnam’s fuel prices are significantly impacted by developments in the world’s oil prices because the country is a net importer of fuel. Around 70-80% of its needed fuel is imported, mostly from Singapore, the Republic of Korea, Malaysia, China, and Thailand.

According to Vietnam’s General Department of Customs, in 2017, Vietnam imported 12.86 million tonnes of assorted petrol worth US$7.04 billion, up 9.4% in volume and 38.3% in value, as compared to 2016.

In this year’s first nine months, the government has increased the price of A5 petrol eight times, with a rise of VND2,440 (US$0.1) per litre, and the price of diesel has been raised 10 times, with a climb of VND2,960 (US$0.13) per litre. These increases have pushed up the average price of petrol in this year’s first nine months by 15.57% in comparison to the same period last year, and also contributed to a hike of 0.69% in the consumer price index in this period.

The government expects that the consumer price index for 2018 will be below 4%.

In this year’s fourth quarter, a new field called Ca Tam will officially come into operation.

In this year, the oil and gas industry will continue boosting the exploration, appraisal and exploitation of several oil fields including Plot B, Ca Voi Xanh (Blue Whale), and Ca Rong Do (Red Dragon Fish).

Thu Ha report on Nhan dan

Vietnamese banks rush to seek foreign capital

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Commercial banks are now borrowing capital from foreign banks and financial institutions when they need more medium- and long-term capital.

LienViet Post Bank on August 28 signed a contract with JP Morgan Chase Bank NA Singapore, which will provide a $50 million loan to the former for three years.

LienViet Post Bank’s CEO said the loan helps LienViet Post Bank integrate more deeply into the international finance market.

Prior to that, the bank got a 3-year syndicated loan worth $50 million from eight Taiwanese banks headed by Cathay United Bank.

On September 6, Russia’s IIB committed to provide Vietnam’s SHB a loan worth $20 million for five years.

SHB on the same day signed a cooperation agreement with Russia’s IBEC under which IBEC will provide loans to SHB with the initial limit of 20 million Euro to serve international payments and implement import/export transactions among IBEC’s member countries, forex and guarantee activities.

More recently, on September 10, IFC, an arm of the World Bank, announced it would provide a $100 million 3-year loan to Vietnam’s Orient Bank (OCB).

This includes $57.16 million from IFC and $42.84 million from Managed Co-Lending Portfolio Program – MCPP.

Earlier this year, IFC also provided a $100 million loan to TP Bank after spending VND405 billion to acquire 5 percent of the bank’s shares in 2016.

Many lending deals were reported in 2017, including the VP Bank’s borrowing of $100 million from Deutsche Bank, $122 million from IFC and $41 million from Credit Suisse.

Also in the year, AB Bank received $150 million from IFC, and VIB Bank got a syndicated loan of $185 million from IFC and three foreign banks.

Even VietinBank, a state-owned bank, has also borrowed capital from a series of foreign banks. In June 2017, it signed a contract on borrowing $100 million from eight finance institutions. One year before that, it borrowed $200 million from 18 foreign banks.

Analysts said Vietnam’s banks borrow money from foreign banks to improve their medium- and long-term capital.

From early 2019, the proportion of short-term capital the banks can use for long-term lending will be cut from 45 percent to 40 percent.

The demand for medium- and long-term capital is especially high from banks which focus on retail banking such as LienViet Post Bank, which has retail banking accounting for 50 percent of its total outstanding loans.

Analysts also believe that banks are borrowing money to satisfy requirements on capital adequacy and payment capability in foreign currencies.

They cannot expect capital in foreign currency from the public’s deposits, because the current interest rate of zero percent cannot attract depositors.

Mai Chi report on VNN

Vietjet signs $1.24 bln financing deal for 10 Airbus planes

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Vietnam’s Vietjet Aviation signed a combined $1.24 billion worth of financing agreements to purchase up to 10 Airbus planes, the company said Wednesday.
Vietjet signed a financing agreement with Mitsubishi UFJ Lease & Finance Company Ltd and France-based BNP Paribas Bank to finance the carrier’s acquisition of up to five new aircraft worth $614 million at list price, it said in a statement.

Vietjet also signed a memorandum of understanding valued at $625 million for financing and future ownership of five other aircraft at list prices with France-based banking group Natixis and some Japanese equity underwriters, it said.

The acquisition of the aircraft is part of a contract signed earlier with Airbus and includes A321neo aircraft, Vietjet said, adding all aircraft financed on Wednesday will be delivered in the last quarter of 2018 or early next year.

“These deals will greatly contribute to Vietjet’s plan for fleet expansion and network growth in the coming time,” said Vietjet Vice President Dinh Viet Phuong.

In July, Vietjet placed provisional order to buy 50 A321neo Airbus aircraft worth $6.5 billion at list prices while it also struck a deal for 100 Boeing passenger jets worth almost $13 billion at list prices.

Vietjet, Vietnam’s biggest private airline, currently operates 60 Airbus aircraft with more than 385 flights daily within Vietnam and to countries such as Japan, Hong Kong, South Korea, Taiwan, Singapore, China, Thailand, Myanmar and Malaysia.

Source: Vnexpress

Mobile World boss stands to win $90 million on new dividend plan

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Applying the new dividend rate of 3:1, Mobile World chairman Nguyen Duc Tai, who owns nearly 46.9 million MWG shares, will receive additional shares worth $90 million.

Mobile World Investment Corporation has just approved the new dividend rate for its current shareholders. Accordingly, the number of stakes issued is estimated at 108 million, with the dividend rate of 3:1, which means that each stakeholder owning will receive one share after every three they own. The newly issued shares will be instantly transferrable and the dividend will be covered from Mobile World’s after-tax profit as of the end of 2017.

According to its financial report published in late 2017, Mobile World’s total profit (without distribution) was nearly VND2.7 trillion ($119.47 million). The time to share dividends is in October and November this year, after receiving approval from the State Securities Commission (SSC). Currently, MWG’s stakes are worth more than VND130,000 ($5.75), up nearly 30 per cent against last month.

Holding 8.2 million stakes, Mobile World chairman Nguyen Duc Tai is the firm’s largest individual shareholder. According to the dividend plan, Tai will receive 2.7 million more shares worth VND351 billion ($15.53 million).

In addition to directly holding the stakes, Tai, via his wholly owned firm Retail World Investment Consultant Limited Company, indirectly holds 38.6 million more MWG stakes. Thus, Tai will receive 15.6 million shares worth VND2.02 trillion ($89.7 million).

With the total assets of over VND6 trillion ($265.48 million), Tai is currently one of 10 richest people on the Vietnamese Stock Exchange.

Its latest report stated that Mobile World recorded VND58.667 trillion ($2.6 billion) in net sales over the past eight months and VND1.969 trillion ($87.1 million) in after tax profit, which are up 39 and 36 per cent year-on-year.

Van Anh report on VIR

October 11: VN-Index down nearly 5%v

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All indexes suffer major losses as global events take toll.

Similar to what has been seen around the world, substantial selling shaved VND165 trillion ($7 billion) from Vietnam’s stock market and took indexes downwards on October 11.

On HSX, the VN-Index closed at 945.89 points, down 48.07 points (4.84 per cent), while the VN30-Index closed at 920.02 points, down 46.25 points (4.79 per cent).

On HNX, the HNX-Index finished at 107.17 points, down 6.59 points (5.79 per cent), the HNX30-Index 195.16 points, down 13.98 points (6.68 per cent), and the UPCoM-Index 52.04 points, down 1.78 points (3.31 per cent).

Liquidity on HSX was VND7.36 trillion ($315 million) and on HNX was VND1.37 trillion ($31.2 million).

Food and beverage stocks to gain ground included BBC and TLG, by 1.3 and 0.1 per cent, as BHN lost 6.9 per cent, KDC 3 per cent, VNM 2.3 per cent, SAB 1.8 per cent, and VCF 0.1 per cent.

Losers in banking included VPB, CTG and MSN, all by 7 per cent, BID 6.9 per cent, STB and TPB 6.7 per cent, MBB 6.6 per cent, and TCB 6.2 per cent.

In energy, PGD gained 2.4 per cent as PVD and GAS lost 6.9 per cent, PLX 6.1 per cent, PPC 5.9 per cent, and PVT 4.8 per cent.

The Top 5 shares bought by foreign investors were DXG, VRE, SBT, PVD and HPG.

VIC was the largest net sold share on HSX, followed by VNM, MSN, BID and VJC.

SHB was the largest net sold share on HNX, followed by PVS, VCG, ART and PVB.

On UPCoM, foreign investors bought 983,705 shares worth VND24.62 billion ($1.05 million).

They net sold on HSX by VND283.95 billion ($12.1 million) and on HNX by VND1.23 billion ($52,585).

Source: Vneconomictimes

Saigon to reduce traffic congestion, accidents by 2020

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The Ho Chi Minh City (Saigon) People’s Committee just decided to implement a program to reduce traffic congestion and accidents by 2020, said Tran Vinh Tuyen, Deputy chairman.

The program will include 97 projects that will include building new roads and a public transportation system.

According to a report on VNS, a state-owned media, the projects will cost a total of US$4.12 billion, and will be mostly funded by the State, the city, and official development assistance (ODA).

Ten out of 97 projects costing US$354 million, which will be built under Public-Private Partnership contracts.

Under the program, the city is expected to put into use 33.5 km of new roads and 14 new bridges in Saigon by the end of this year.

In 2019, an additional 75 km of roads and 17 bridges will be built, and in 2020, 18 bridges and 81 km of roads will be added.

The program has set a goal of reducing the number of fatalities and injuries caused by traffic accidents by 5 per cent by 2020.

In the 2018-20 period, the city will focus on developing its public transportation system, which is expected to meet 15 per cent of transport needs of residents by 2020.

The city will also expand new public bus routes that connect to new urban areas and industrial parks in the city, and link International Airport with neighboring provinces.

New bus routes to transfer students to schools and universities across the city will be established as well.

The city has prioritized public transport, including new bus stations and upgrading old ones, installing supervisory systems at stations, and setting up motorbike parking lots for passengers who use public transport.

It also expects to complete the use of smart cards for all public buses by 2020.

Read full article on VNS

Vietnam and Southeast Asian markets crumble after Wall Street rout

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Southeast Asian stock markets, including Vietnam plummeted on Thursday, joining a global equity rout after a selloff on Wall Street spooked investors.

On Wednesday, Wall Street posted its biggest daily decline in eight months as concerns around rising debt yields and prospect of rising interest rates gripped equity markets worldwide.

Over the past few months, an intensifying trade war between the United States and China has also hit risk assets on worries about global growth.

The sharp fall on Wednesday was bad enough to attract the attention of U.S. President Donald Trump, who said the selloff was in fact a long-awaited “correction,” and that the Federal Reserve, which has been raising rates, had gone “crazy”.

Investors now await U.S. inflation figures due later in the day as a high outcome would only stoke speculation of more aggressive rate hikes from the Fed.

“That’s a signal of ‘rotation’ out of equities and back into bonds as the Fed raises rates, rather than the bullish argument sold to us of the opposite happening,” Rabobank analysts said, referring to “a mess” in markets as a small rise in yields caused a fall in global equities which then caused yields to fall on Wednesday.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 4 percent.

Vietnam shares <.VNI> plunged 5.5 percent, their biggest intraday drop since early February, and hit an eight-week low.

Oversea-Chinese Banking Corp fell as much as 3.4 percent and DBS Group Holdings dropped 2.9 percent.

Singapore shares <.STI> slumped 2.8 percent in their sharpest intraday fall since Feb 6 and hit a 20-month low, weighed down by heavy losses in financials.

Financial and real estate stocks were the biggest losers, with Joint Stock Commercial Bank for Foreign Trade of Vietnam shedding 5.7 percent and Vingroup JSC declining 4.7 percent.

“Domestically, Vietnam is facing upward pressure on inflation, mostly due to a rise in energy prices. We don’t know yet where the bottom is,” said Tran Anh Tuan, chief analyst at Vietcombank Securities.

Philippine shares <.PSI> tumbled 3 percent to a 21-month low, dragged industrial stocks.

SM Investments slid 4.2 percent and JG Summit Holdings declined 6.4 percent.

Malaysian shares <.KLSE> slumped 3 percent to a three-month low, Indonesian stocks <.JKSE> fell 2.6 percent to a more than one-month trough and Thailand <.SETI> dropped 2.7 percent to a one-month low.

 

Niyati Shetty reported on REUTERS

A meter long bread in Mekong Delta caught global attention

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A Giant Bread in An Giang province, in Mekong Delta of Vietnam has caught global attention as one of the world’s most bizarre foods.

Brightside, a Cyprus-based travel website recently released a list of 15 strangest foods in the world this year, and one of them was the meter-long, three kilo bread found only in An Giang provice at Mekong Delta of Vietnam.

“Its giant dimensions have piqued the curiosity and interest of many visitors to An Giang province, where is home to the Ba Chua Xu Temple, one of the most famous spiritual sites in southern Vietnam”. Nguyen Quy reported on VNexpress.

Pictures and personal statuses of the 3-kg bread was among the most searched food item on social media. | Source: Social Media

The Brightside list includes a fish sausage with cheese flavor in South Korea, a chilled ramen served in a glass of beer in Canada, a pizza with flowers, a mint chocolate cake in London, UK  and blueberries in Belgium.

“A giant bread costs about $2.14, normally, it takes an hour to be roasted in the oven” said the baker.

Giant Bread in Saigon | Source: Zing.vn

Not only in Mekong Delta, Nguyen Van Yen, 58, a baker in Tan Phu District, HCMC, Vietnam also provides giant breads weigh 02kg, which can be served for 15 people.

ASEAN Capital Market Regulators Launch Professional Mobility Framework, Social and Sustainability Bond Standards

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The ASEAN Capital Markets Forum (ACMF) met in Singapore today for the 2nd ASEAN Capital Market Conference 2018, launching two key initiatives to drive a more connected and sustainable ASEAN capital market: the ASEAN Social Bond Standards (ASEAN SBS) and the ASEAN Sustainability Bond Standards (ASEAN SUS).

The ACMF also launched the ASEAN Professional Mobility Framework to facilitate cross-border movement of investment advisers, which will allow ASEAN investors greater access to professional services. These initiatives complement the measures introduced by the ACMF on collective investment schemes, corporate governance, disclosure standards and capacity building.

Malaysia, Philippines, Singapore and Thailand are the first countries to participate in this initiative, to be followed by other countries in due course. The four regulators signed a Memorandum of Understanding today, at the 2nd ASEAN Capital Market Conference, an ACMF initiative hosted by the Monetary Authority of Singapore in collaboration with the Asian Development Bank (ADB).

The ACMF continues to place emphasis on sustainable finance and launched the ASEAN Social Bond Standards (ASEAN SBS) and the ASEAN Sustainability Bond Standards (ASEAN SUS). The introduction of the ASEAN SBS and ASEAN SUS follows from the ASEAN Green Bond Standards launched in November 2017. The ASEAN region now has a complete suite of standards to accelerate the development of sustainable finance in the region.

The standards are intended to enhance transparency, consistency and uniformity of ASEAN green, social and sustainability bonds, which will reduce due diligence cost and assist global investors to make informed investment decisions.

The ASEAN SBS were developed based on the International Capital Market Association (ICMA)’s Social Bond Principles while the ASEAN SUS were developed based on ICMA’s Sustainability Bond Guidelines. The proceeds from social bonds are for financing projects that are socially beneficial, while the proceeds from sustainability bonds will be used to finance a combination of both green and social projects that respectively offer environmental and social benefits.

These two standards complement the ASEAN Green Bond Standards which have gained encouraging traction with five issuances from Malaysia and Singapore carrying the ASEAN Green Bond label, while the first sovereign sukuk in ASEAN issued by Indonesia is aligned with the ASEAN Green Bond Standards. ACMF and ADB are working together to promote this asset class to global investors.

The ASEAN Capital Market Conference is a platform for capital market regulators to exchange ideas, share insights, and collaborate amongst themselves and with industry experts to formulate actionable plans to drive the region’s agenda for deeper and more connected capital markets. The 2nd Conference, themed “Sustainability and Connectivity”, was attended by over 300 participants from the region, ranging from asset owners, fund managers, market analysts and other stakeholders in the financial industry. In keeping with the Conference’s theme, panel sessions discussed sustainable financing, ASEAN capital markets connectivity, infrastructure financing as well as financing ASEAN SMEs and start-ups.

About the ACMF

The ACMF is a high-level grouping of capital market regulators from all 10 ASEAN jurisdictions, namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The ACMF is currently chaired by the Securities Commission Malaysia. The next ACMF Chair will be SEC Thailand.

More information on the ACMF and its initiatives can be found at the ACMF website at http://www.theacmf.org

Vietnam’s Bphone unveiled the 3rd generation

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BKAV – a Vietnam’s cyber security firm – just unveiled the third generation of its Bphone on Wednesday without a home button. It requires users to navigate to the home screen and apps by using hand gestures just like in Apple’s iPhone X.

It comes in two versions, Bphone 3 is priced at VND6.99 million ($300), and the Pro version at 9.99 million ($430).and they have a six-inch 18:9 HD screen, Android 8.1 and a Snapdragon Qualcomm 636 chip, giving them twice the performance of the previous version, Bphone 2, according to BKAV. Company staff demonstrated this by playing the mobile game PUBG on the phones at the release event in Hanoi.

The battery lasts 1.5 days and can be charged to 80 percent in 35 minutes with Quick Charge 3.0 technology at three times the average charging speed, the firm claimed.

It is the first phone in the price range with IP68 waterproof rating, meaning it could be immersed in 1.5 meters of water for half an hour without a problem, BKAV stated. Vu Thanh Thang, Bphone vice chairman, said the phone would survive coffee spills and can even be washed with soap.

Ninety percent of the phones’ parts are sourced from U.S. and Japanese suppliers, he added.

It filters out all spam messages and phone calls, the company said. Bphone 3 comes with 3GB ram, 32GB storage and a microSD slot, while Bphone 3 Pro has 4GB and 64GB.Bphone 3 also has a new feature that allows people losing it to find it even when it is factory reset, not connected to the Internet or lacks a sim card.

Customers can start pre-ordering today, and shipping will begin October 19.

Bphone 3 will be the only Vietnamese competitor in the Vietnamese mid-range phone market which is dominated with Korea’s Samsung, China’s Oppo and Huawei. Other popular phones in the same price range are the Huawei Nova 3i ($300), Galaxy A7 2018 ($330) and Oppo F9 ($330).

BKAV produces antivirus software and provides cybersecurity solutions, the firm demonstrated in a Youtube video that it was able to fool Apple’s Face ID with a mask made with a 3D printer when it launched.

The firm debuted the Bphone in May 2015. While initially warmly welcomed, the phone’s launch was disappointing to many buyers as it was only available online and the company had to delay delivery four times.

The phone also caused controversy because despite being Vietnamese-made, 30 percent of the phone was manufactured by a Chinese firm.

According to BKAV, Bphone 2, which was introduced in 2018 has been sold about 12,000 units.

UK-Vietnam agreed a joint statement

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As part of events to welcome the 45th anniversary of diplomatic relations between the UK and Vietnam, Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh paid an official visit to the UK from 9 – 10 October 2018.

The Deputy Prime Minister had official talks with Foreign Secretary Jeremy Hunt, Chancellor of the Duchy of Lancaster, David Lidington, Secretary of State for International Trade, Dr Liam Fox and paid courtesy calls on HRH the Duke of York, Prince Andrew, and Speaker of the House of Lords, Lord Fowler.

During the visit, he also attended the UK-Vietnam Economic Forum and met some major UK companies.

UK-Vietnam Joint Statement

According to a press release by UK.GOV, on the occasion of the Vietnamese Deputy Prime Minister’s visit, the UK and Vietnam note the growing importance of collaboration in the UN, on peacekeeping, global security, international law and the illegal wildlife trade. They highly appreciate and welcome the transition of the provision of the UN Level 2 Hospital in South Sudan from UK to Vietnamese peacekeepers, and a commitment to exchange expertise in peacekeeping-related military engineering.

The UK and Vietnam are strong advocates of free trade in Europe and Asia and actively promote the early signing of the EU – Vietnam Free Trade agreement (EVFTA) in 2018. The UK and Vietnam look forward to maintaining smooth trade relations as the UK leaves the EU, including through ensuring continuity for business by transitioning the prospective EU Vietnam Free Trade agreement during the Brexit transition. Both sides also agree to consult further on the prospects of the UK joining the CPTPP.

Both sides look forward to a deeper and closer relationship between the UK and ASEAN after the UK leaves the EU. They welcome further UK funding for expertise exchanges with Vietnam on anti-corruption, culture, health, civil service capacity building and reform, infrastructure, smart cities and low carbon, maritime security, peaceful settlement of international disputes.

Both sides reiterate their commitment to the UN sanctions regime to encourage DPRK to take steps to denuclearize fully and verifiably. They reinforce the importance of maintaining the ban on the use of chemical weapons globally. They agree that adherence to international law is the foundation for peace and stability and renew their commitment to upholding existing Arbitrations and to freedom of navigation and overflight. They hold the view that countries should resolve all disputes by peaceful means, in accordance with international law and through existing legal mechanisms.

Both sides acknowledge the key role of education in the relationship including our strengthened science partnership on research, innovation and antimicrobial resistance. In pursuit of these goals, the Decision establishing the educational and cultural status of the British Council in Vietnam has been renewed. They also emphasize the importance of enhancing cooperation on bilateral cultural diplomacy so as to help strengthen the Strategic Partnership between the two countries.

Both sides express their support for the 2018 London Conference on IWT and agree on the importance of efforts to combat the illegal wildlife trade.

The UK and Vietnam have a mutual commitment to regular Ministerial visits to both countries. They agree that the next round of the Strategic Dialogue between the two countries should take place in early 2019

Read full press release on GOV.UK

Vietnam education is very good, on paper

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Schools beeing judged by their exam results, but the fact is good exam results alone will not prepare pupils for the next industrial revolution

The second-year students at Nguyen Hue specialized high school in Hanoi are an unusually motivated bunch.

According to a report by John Reed on Financial Times, Entrance exams for university are coming up in a year. Then there is the matter of their parents’ high expectations, competition from other children in this elite school, and the tests of various kinds they are given every week.

Nguyen Phuong Thao, 16. who wants to become a journalist said “Everybody here is so talented, it makes me feel pressure”, but her favorite subject is maths, which she says her parents “forced” her to study when she was a young girl.

Another second-year student is Nguyen Tung Chi, who wants to work in marketing said “My first goal is to get into a good university in Vietnam. All the classmates are obsessed with getting good grades.”

Vietnam outperforms neighboring countries in south-east Asia on education rankings, and does well globally too. Its high test scores contributed to its place in the World Bank human capital index — 48th — the highest rating for any lower middle-income country. It stands out relative to its wealth.

The country spends the equivalent of nearly 6 per cent of its GDP on education — high by global standards, and a greater proportion than most of its neighbors. Apart from the government’s investment in schools, observers of Vietnamese culture attribute children’s strong test scores to cultural and historical factors. These include the work ethic prized under Confucianism and the need to rebuild the country after the war.

Vietnam’s current generation of under-20s are an unusually large demographic cohort who will be competing for university places and jobs in an economy that is going through major transformation as the manufacturing jobs on which it relies undergo profound change.

Hoang Kim Ngoc, 24, an English teacher at the Nguyen Hue school told us that “The generation of their and my parents needed to work hard, and they realized the fastest way to develop the country was to study. The demands of the current workforce are so high,” she adds. “We are going through the fourth industrial revolution, where we not only expect to compete with machines, but we need to control them.”

Pham Hiep, a researcher based in Hanoi who specializes in university education, attributes Vietnam’s strong international test rankings in part to a well-designed curriculum for maths and science. “Shadow education” — extra tutoring in maths and other subjects outside school — is also common, he says.

Another factor, Mr Hiep says — echoing the children at Nguyen Hue school — is intense competition for university places as the country undergoes a demographic boom. “We don’t have enough places in tertiary education,” he says. “The supply doesn’t meet the demand.” The private universities in Vietnam, he says, account for only about 15 per cent of total enrolment, low compared to Vietnam’s regional neighbors, including the Philippines, Malaysia, and China.

There is little doubt that Vietnam’s education system is good at teaching children to do well on tests, especially in maths and science. But is it teaching them to think and reason too? And how reliable are the test scores themselves?

The World Bank’s rankings for Vietnam are based on the Program for International Student Assessment (Pisa) tests, run by the OECD, and involving international tests taken by 15-year-olds. However, one critical observer tells the FT the results are influenced by a sampling issue that makes Vietnam’s results look better than they are because about half of children have left school by age 15.

As the school leavers tend to be poorer and lower-achieving than average, the wealthier and more studious ones who are tested push the overall results up.

“The Pisa sample for Vietnam is skewed, [as] it only includes the richer, higher-achieving kids,” says John Jerrim, a lecturer at University College London’s Institute of Education. “This is a significant part of the explanation why Vietnam does well.”

Mr Jerrim says that Vietnam will face a “paradox” moving forward, as improving education means more and more children remain in school. Its Pisa scores are likely to decline rather than increase.

However, he adds, even taking the statistical anomalies into account, “Vietnam probably does quite well compared to other countries with similar levels of development”. The Vietnamese government has been pursuing educational reforms for more than a decade, focused on reducing students’ workloads, boosting private investment in higher education, and improving vocational training. The results so far have been limited.

The children at Nguyen Hue school, while benefiting from some of the best secondary education Vietnam has to offer, have a few cavils of their own.

“We focus on how to be a good worker and a good citizen rather than developing our own skills and learning to chase our dreams,” says To Duc Manh.

“How we judge students to get a job: [is] not based on who we are, but the test numbers.”

 

Read full article on Financial Times

Vietnam Pharmaceutical Market Outlook To 2022

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According to a report by Ken Research, Vietnam Pharmaceutical Market is Expected to Reach around USD 10.1 Billion in 2022

Vietnam Pharmaceutical market by Generic and Patented drugs, by Prescribed Drugs and OTC Drugs and Therapeutic Drugs (Metabolism and Nutritional Medicine, Cardiovascular, Central Nervous System, System Infection, Oncology, Musculoskeletal, Respiratory and Others) along with company profiles of DHG Pharma, Traphaco, Pymepharco, Ha Tey Pharmaceutical, Mekophar, Domesco, Imexpharma, OPC, Sanofi, GSK, AstraZeneca, Novartis, Roche, Pfizer, MSD and Bayer

  • Rise in generic drug usage and growth in self-medication in Vietnam will foster the growth of Pharmaceutical industry in Vietnam.
  • Government initiative to produce higher quality pharmaceuticals in Vietnam will impact the market positively.

Government has focused on developing research facilities and training of local talent. Under the biotechnology drive target by 2020, government is helping pharmaceutical producers to develop expertise through foreign assistance. Government’s push for production and utilization of locally produced generic drugs will boost usage of generic drugs. Therapeutic segments such as oncology and diabetes management will continue to witness high demand for patented drugs. Rise in number of drug manufacturers will also aid in rise of generic drug usage. Trend in self-medication culture will continue to drive OTC drugs sector at least in the near future. Antibiotics, Vitamins and dietary supplements will continue to attract heavy demand through OTC channel.

Vietnam Pharmaceutical Market Outlook To 2022

Analysts at Ken Research in their latest publication “Vietnam Pharmaceutical Market Outlook To 2022 – by Generic and Patented drugs, by Prescribed Drugs and OTC Drugs and Therapeutic Drugs (Metabolism and Nutritional Medicine, Cardiovascular, Central Nervous System, System Infection, Oncology, Musculoskeletal, Respiratory” believe that incline in demand for hepatic treatment, rise in health supplements and increasing demand for traditional / herbal medicines will have positive impact on market.

Vietnam Pharmaceutical market is expected to register positive CAGR of around 15.6% during the period 2017-2022. R&D investment and investment in local production of APIs will have positive impact on the demand for Pharmaceutical products.

Public procurement of drugs is done through bidding in which any company is free to submit proposal. Domestic manufacturers in the country produce generics with very less investment in R&D activities, presenting low barriers to entry for any new player. The government has increasingly favored generic drugs produced locally in the recent procurement biddings. Foreign companies are increasingly investing in developing manufacturing capabilities in Vietnam.

For more information on the research report, refer to below link:
https://www.kenresearch.com/healthcare/pharmaceuticals/vietnam-pharmaceutical-market/143605-91.html

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Irish tourist in Vietnam taking selfie while driving motorcycle crashes

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An Irish tourist taking a selfie while driving a motorcycle in Vietnam crashes after his friend slams his back wheel.

Accoriding to a report in Maildaily, a man taking a selfie while riding a motorcycle has filmed himself crashing. He was riding with friends in Vietnam when his mate came up behind him.

The pair can be seen in the footage rolling off their bikes after the collision. Selfie-related accidents have been rising, sparking selfie bans at tourist spots.

The man who posted the video said ‘the video shows my friend filming a selfie video unaware that his friend was about to crash into him.’

‘Myself and 15 of my friends went on a backpacking holiday to Asia; when we were in Vietnam we tried the ‘Top Gear’ experience, which involved a six-hour motorcycle journey through the mountains.’

He said the group had little experience riding motorcycle.

Selfie-related accidents have been escalating for many years, prompting a number of popular tourist spots to implement a selfie-ban.

About 250 people have been killed across the globe while taking selfies, according to a study published in Journal of Family Medicine and Primary Care.

Selfie-related accidents have been escalating for many years, sparking a number of popular tourist spots to implement a selfie-ban. The study shows that men account for seven out of 10 of these fatalities, while millennial daredevils – those aged 20-29 – make up almost half of selfie deaths.

In Vietnam, according to a report by the National Committee for Traffic Safety, 13,242 traffic accidents occurred in the past nine months, 2018, killing 6,012 people and injuring 10,319 others.

Researchers conducted the largest ever review of fatalities caused by posing for self-shot photographs.

Almost half of all selfie deaths occurred in 20 to 29 age group, followed by 36 per cent of deaths in 10 to 19 age group.

The highest number of deaths has been reported in India – with the state of Goa bringing in official ‘no selfie’ zones in June this year – followed by Russia, the USA, and Pakistan.

E-card programme for BRT route starts in Hanoi

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The e-card pilot programme for BRT buses has started in Hanoi on October 10 on the Kim Ma-Yen Nghia route, Dtinews reported.

According to Hanoi Transport and Services Corporation (Transerco), the e-cards will help link the public bus system with other types of public transport in the future.

Passengers can contact employees at bus stations on Kim Ma, Nui Truc, Hoang Dao Thuy streets and Yen Nghia Station for information on how to acquire a card and recharge their accounts. They can also register online to save time.

One-time passengers can buy separate e-tickets and scan the tickets at bus stops. Since the pilot programme is being carried out on one route only, inter-district monthly-pass holders will get a QR code stamp pasted onto their cards to try the programme.

The pilot programme will be implemented from six months to a year. If the results are positive, the model will be implemented on the whole rapid bus system in Hanoi as well as the regular buses and the metro system.

The minimum bus fare is VND7,000 (30 US cents) but the cost for short trips is halved with the e-cards.

Some photos of the day:

Many passengers are trying out the new cards

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