EXPORT-Import Bank of Malaysia (Exim Bank) witnessed the official opening ceremony of British University Vietnam (BUV) Ecopark Campus which the bank financed under its Overseas Project Financing Facility.
Vietnamese Education and Training Minister Phung Xuan Nha officiated at the event which was attended by officials from the Vietnam government, BUV board members and Exim Bank representatives.
Among them were Education and Training Deputy Minister Nguyen Van Phuc, BUV chairman Sir Graeme Davies, BUV board member Datuk Loy Teik Ngan and Exim Bank president and chief executive officer Norzilah Mohammed.
The university is located in Hung Yen Province about 10km from Hanoi’s city centre. This state-of-the-art campus took three years to build and accommodates up to 3,000 students.
At BUV, students will be exposed to teaching methodology and learning experiences structured according to British standard format and programmes, ensuring quality graduates for the markets.
According to Norzilah, BUV is another milestone for Exim Bank in penetrating the global education market in support of Malaysian investors and exporters.
“In 2017, Exim Bank extended its credit support of RM16.2bil for financing and insurance to 12 primary key sectors under the national key economic areas.
“We also extended RM2.05bil in financing and insurance to support the small-and-medium enterprises (SME) segment,” she said.
Exim Bank was incorporated in August 1995, and is wholly-owned by the Malaysian government.
The Vietnam Mountain Marathon (VMM), the country’s biggest ever mountain race, is scheduled to start on Friday in Sapa, Lao Cai Province.
From just a small handful of Vietnamese runners who took part in the first edition, the event has grown to include 3,400 runners from 54 nations this year. Organisers expect 40 per cent more runners than took part in the previous edition. VNS reports.
“We created this race because of our love for the mountains, so it is fantastic to see more and more runners from Việt Nam and all over the world, including elite ultra running champions, enjoying the beautiful landscapes of the north and sharing our passion for the area,” said race director David Lloyd.
The event kicks off with an expo in Sa Pa Square on Friday with live music, talks by experts and booths from sponsor California Fitness and international brands Salomon, Garmin, Hammer Nutrition and Decathlon.
The 100km race starts at 10:00 on Friday evening, with participants set to run through the long, dark night among the highest peaks of Vietnam.
Throughout Saturday runners in the 70km, 42km and 21km contests will race through stunning rice terraces and local villages.
The finish line is at Topas Ecolodge, recently named the best place to stay if you care about the environment by National Geographic.
Top runners
Last year, Trần Duy Quang took first place in the 100km category and became the first Vietnamese runner to win the ultra distance race. However, with a host of top class runners coming from overseas this year, victory for Việt Nam will not be easy.
Home-grown talent Nguyễn Minh Tuấn, the Vietnam Jungle Marathon champion, faces strong competition from a host of runners including Italy’s David Gianelli, champion of the Mesatsila Peak Challenge 100km race, Great Britain’s Robert Butcher and Regis Caberet of France.
Competition in the women’s 100km field will be just as strong, with no fewer than five ultra champions facing off.
Nathali Cochet of France, winner of the 2016 VMM 100km race, will be up against Marieke Dekkers of Holland, champion of Malaysia’s Penang Eco 100 km. Other contenders include Agustoralin Sabanal of the Philippines, winner of the Rizal Mountain Run 50km and Evelyn Lek of Singapore, winner of the Magnificent Merapoh Trail 100km.
The host nation also has a champion in the mix – Nguyễn Thị Đường, winner of Vietnam Jungle Marathon. Her compatriot Lê Phương Vy will also be one to watch.
In the 70km race, famous South Korean runner Jisub Kim will attempt to repeat his fabulous performance from 2017, when he set the record time on the 42km course. He said he aims to take the record for the 70km race this year before returning in 2019 to tackle to 100km course.
VMM has a charitable focus, donating thousands of dollars since 2013. This year’s race will see more than US$38,000 divided between Operation Smile and Newborns Vietnam, local charities around Sa Pa.
Founded in 2013 by Topas Travel, VMM is one of the biggest ultra-running events in Asia and the landmark event on the South East Asia calendar.
Though it feels good be back above the 1,000 mark on improved liquidity, I also feel we are seeing some market complacency regarding the escalation of the trade war between the US and China. The tariffs that were announced by both sides during the week come into effect next Monday (24 September).
Looking at global markets performance, it seems investors believe tariffs are not as harsh as originally suspected. Vietnam may benefit if it leads to more foreign direct investment (FDI) flowing to the country as multinational companies diversify their supply chains away from China.
This week, the VNIndex broke through and managed to remain above the psychological barrier to close the week at 1,002.97 points on Friday. For the week, the market was up 1.2% and liquidity increased by nearly 38%!
Flows seem to be gravitating towards large-cap stocks. Oil stocks led the market for most of the week on rising oil prices. GAS was on the way to create a new high, and PVD had received positive consensus.
Foreigners turned net sellers on Friday, divesting VND783.9bn (USD34mn) which focused mainly on offloading MSN, NVL and VCB. So for the week, foreigners were net sellers for a total of USD26mn worth of equity.
In other news:
Domestic banks are finally reducing their cross-ownerships to less than 5% as per Circular 36/2014 / TT-NHNN. Among them, Vietcombank (HSX: VCB) announced that it would auction its 53.4mn shares of Military Bank (HSX: MBB), equivalent to a 2.47% ownership of MBB. The starting price is VND19,641 per share. The auction will be held on 15 October. With the price, it is estimated that VCB will earn over VND1.048tn from this auction. Earlier this week, Vietcombank also announced it will hold an auction to sell the shares it owns in Eximbank (HSX: EIB) on 22 October. The number of shares to be auctioned will be 45.6 million shares with the starting price of VND14,497 per share. At this price, Vietcombank is expected to earn over VND661 billion. Up to the beginning of 2018, Vietcombank holds over 101.2 million shares of EIB. If the deal is successful, Vietcombank’s stake in EIB will drop to 4.5% of chartered capital.
Analyst Pinboard
Growth Opportunity for Textile & Garment Companies
According to the General Statistical Office (GSO), the export turnover of the textile & garment industry for the first eight months of 2018 is estimated at USD19.4bn, an increase of 14,9% YoY.
We assumed that this uptrend will last in the future
Besides, many of global brand names such as Adidas, Puma, and Nike have been moving garment orders from China to Vietnam to take advantage of the free trade agreement.
Among the companies in the industry, TCM and STK are distinct players because they meet the rule of origin from yarn onwards as required by the CPTPP agreement.
A cab driver in the central province of Ha Tinh had helped a mum-to-be to give birth in the cab on the way to hospital.
Managers of Mai Linh Transportation Company in Ha Tinh Province yesterday praised driver Nguyen Dang Ngu for helping mother-to-be to deliver the baby safely.
Driver Ngu picked the pregnant and her relative up at their home in Cam Lac commune and took them on the short drive to the local infirmary.
However, by the time they got there, the driver realized the pregnant woman would be able to give birth soon; so he and her relative have helped her deliver the baby in the backseat of a taxi on its way.
The baby boy was born weighing a healthy 3.5 kilogram.
The driver was quick to continue the journey to the hospital
Thanks to the taxi driver, the new-born baby and the woman were both treated in time and ended up in a stable condition.
Driver Ngu said this is the first time he has helped a mother-to-be to give birth.
Some retailers have predicted that iPhone XS Max may be priced at over VND40 million when it hits the Vietnamese market, the highest price ever for an iPhone.
The impressive launch of iPhone XS Max, the model with the largest ever screen and the highest retail price, has become the main topic of discussion on youth forums.
As the manufacturer stated that iPhone XS and XS Max will hit shelves from September 21, observers think the first products may be available in Vietnam one or two days later.
“iPhone XS Max will be the hottest model of the trio,” said Cao Anh Lai from Aple Shopdunk, a retail chain.
Lai predicted that iPhone XS Max would be priced at VND45 million on the first days in Vietnam and the selling price would stabilize after 10 days.
“iPhone XS Max is expensive, but its price is not much higher than iPhone X which was released last year,” Lai said, explaining why he believes the flagship will be selling like hotcakes.
“The buyers of iPhone XS Max are high income earners, who do not care about the minor price gap of several million dong,” he said.
Mai Trieu Nguyen, director of Mai Nguyen retail chain, also believes that iPhone XS Max will be the best seller in Vietnam, simply because this is the most special model with the most powerful configuration.
“I think iPhone XS Max will be the most wanted model this year,” he said.
“In 2017, Vietnamese chose iPhone X, the more expensive model, rather than iPhone 8 which had lower price,” he explained.
Meanwhile, Minh Tuan from Minh Tuan Mobile predicted that the retail price of the first products in Vietnam would be between VND35-40 million.
At the launching ceremony on September 12, Apple for the first time introduced the dual sim version. However, only the product designed for the Chinese market contains a SIM tray which holds two physical cards.
Meanwhile, other markets will use one physical sim and one e-sim.
This means that all the iPhones imported to Vietnam, including genuine products to be distributed by authorized resellers which bear VN/A code, won’t be able to use 2 sims because Vietnamese mobile operators still don’t support e-sims.
Therefore, some retailers said they are considering collecting dual-sim iPhones from China rather than buying iPhones at retail shops in Singapore and Hong Kong as they did in previous years.
The well-known financial publication Euromoney recently announced their “Awards for Excellence 2018”. The event attracted the participation of financial institutions from nearly 100 countries worldwide. Techcombank was the recipient of the award for the “Best Bank in Vietnam 2018.”
According to Euromoney, Techcombank earned the “The Best Bank in Vietnam 2018” award as a result of the bank’s outstanding performance across all consideration criteria: sustainable development, business performance, risk management, information technology, management quality, and contribution to the local financial and banking market. Other criteria include total revenues, total assets, profit before tax, and net income.
Euromoney’s “Awards for Excellence” are among the world’s most highly acclaimed honors in recognition of superior banking performance in the industry. There are more than 20 categories for international awards, and the “Best Bank” awards are presented to leading banks in nearly 100 countries. The awards celebrate institutions and individuals for their leadership and commitment to outstanding development in their respective markets. Euromoney considers both qualitative and quantitative factors in bestowing the awards to ensure fairness and to enable the banks to showcase their strengths.
On the award, Techcombank’s CEO Nguyen Le Quoc Anh said, “The Best Bank in Vietnam 2018”award conferred on us by Euromoney reaffirms our leading position in the Vietnamese banking sector. Our achievements in recent years, and especially our business results in the first half of this year of VND 5,196 billion in profit before taxes, nearly twice as much as what we earned in the same period last year, reflects our successful pivot to the customer-centric strategy and ongoing transformation. We will continue to invest in long-term development of our team members, leverage technology to service and delight our customers. Finally, the investments in technology, people development, will enhance our risk management, operational effectiveness which will enable us to maintain and extend our market leadership position.”
At the end of the first half of 2018, Techcombank reported return on average equity (ROAE) andreturn on average assets (ROAA) of 24.3% and 3.2%, respectively based on the previous 12 months. The bank’s Total Operating Income (TOI) rose by 20.1% compared to the same period last year with non-interest income contributing 41.7% of TOI.
In April 2018, Moody’s Investors Service (Moody’s) raised Techcombank’s rating to “B1” with a “Stable” outlook, on par with Vietnam’s sovereign rating. At the same time, Standard & Poor’s (“S&P”) increased Techcombank’s capital and income ratings to “Average”, the highest among rated Vietnamese banks. Additionally, Techcombank has also been recognized as one of the Top 2 Best Places to Work in Vietnam by Anphabe for two years in a row, which reflects the bank’s success in attracting and developing talent.
About Euromoney:
Euromoney is a prestigious economic magazine in finance and international capital markets, and has been considered the voice of such markets over the last five decades. It covers major developments in global bond, capital and foreign exchange markets. Its publications are printed and distributed across the world. More than 25,000 copies of the magazine are sold every month, attracting special attention from investors and bankers in all continents.
About Techcombank
Established in 1993, Techcombank is one of the largest joint stock banks (JSBs) in Vietnam, and one of the leading banks in Asia. It provides a broad range of banking products and services to approximately 5.4 million customers with an extensive network of 315 branches across Vietnam.
Several sectors, including telecommunications, retail and financial-banking, have been greatly affected by digital transformation, according to a technology conference held in HCMC on September 20.
Speaking at the conference on digital transformation in Vietnam in the Industry 4.0 era, Dao Trung Thanh, chief technology officer at Media Ventures Vietnam Group, said five sectors—communications, telecommunications, financial-banking, retail and technology—are being brought under the influence of digital transformation. In fact, telecom and financial-banking enterprises are strongly investing in their digital transformation to prepare for the fourth industrial revolution.
Director of AVSE Global Vu Ngoc Anh said the fourth industrial revolution will create a suitable environment and open opportunities for small and medium firms in Vietnam to develop and expand their presence in the future.
Preparations for the fourth industrial revolution have encouraged large enterprises to join the journey of digital transformation to catch up with firms that had previously applied new technology to develop products and launch product marketing programs. This is considered not only an opportunity for startups to further boost their business operations but also a challenge for large traditional firms.
Some technology experts noted digital technology has become enterprises’ competitive strategic tool and fostered the country’s economic growth.
The fourth industrial revolution is Vietnam’s last chance to pursue development and catch up with the developed countries of the world.
However, most of the small and medium firms in Vietnam expressed little interest in the fourth industrial revolution. In fact, enterprises operating in education and running traditional schools have had a difficult time competing with online education platforms. Another example is that traditional transportation will soon be replaced with ride-hailing service.
Le Hoang Nhat, founder and general director of BMG Ami, said thanks to fresh tech solutions in the Industry 4.0 era, the company’s rented house management application has helped owners of houses enjoy a threefold to fourfold efficiency increase. The owners can now easily manage 150 houses through Ami’s app instead of preparing books, taking notes and managing lessees in the traditional manner.
The number of small and medium firms accounts for up to 97% of enterprises in Vietnam. They also contribute 40% to the country’s gross domestic product. The figures, however, remain low as few firms have applied technology to their business operations. Even so, these firms are regarded as the motivation for reform and development.
The conference was a sideline event of Vietnam Digital Economy Forum 2018, which was co-organized by the Association of Vietnamese Scientists and Experts and Quang Trung Software City.
With profits down and inventory up, sugar companies are in their most difficult period of the last 15 years.
June was the end of the 2017-2018 fiscal year of many sugar companies. The finance reports released so far all showed that they experienced a tough time, Vietnamnet reported.
Lam Son Sugar (LSS) reported losses in the latest quarter though its net revenue increased by 6 percent in comparison with the same period last year to VND732.9 billion. The higher financial cost, sales costs and enterprise management costs all caused the net loss of VND10.4 billion from business activities.
As such, LSS’s post-tax profit was modest at below VND4 billion for the 2017-2018 fiscal year and the total revenue was VND1.452 trillion, a 39 percent decrease from last year.
Even Thanh Thanh Cong Bien Hoa, the largest company with best production capacity, has also reported the profit decrease. Its combined revenue was VND10.364 trillion, while post-tax profit was VND546.7 billion, up by 61 percent.
Casuco is facing the same problems. Its finance report showed revenue of VND1.065 trillion and post-tax profit of VND3.1 billion in the last fiscal year, decreasing by 21.5 percent and 95.5 percent compared with the last year.
The Kon Tum Sugar Company also reported the profit down by 78 percent to VND9 billion.
Even Thanh Thanh Cong Bien Hoa, the largest company with best production capacity, has also reported the profit decrease. Its combined revenue was VND10.364 trillion, while post-tax profit was VND546.7 billion, up by 61 percent.
However, the figures were lower than that of the previous fiscal year, when Thanh Thanh Cong and Bien Hoa were still two separate enterprises. In that year, the former had post-tax profit of VND339.3 billion and Bien Hoa VND289 billion.
The first difficult period occurred in 1999, just four years after the industry was established, when a lot of companies underwent hardships or were dissolved.
The difficulties have returned with the high inventory level (which was up to 70 percent of total output sometimes). The oversupply and weak demand have put a heavy burden on sugar companies.
VSSA cited a report as showing that the sugar price in the world market dropped by $17.75 per ton in July from the previous month to $317.85 per ton, much lower than the $498.13 and $432.07 per ton in 2016 and 2017, respectively.
The sharp fall in sugar price is attributed to the global output increase of 10.3 percent, or 2 percent higher than the demand increase. This means that domestic companies will have to compete with imports from regional countries.
Under the sugar industry development plan by 2020, Vietnam will dissolve unprofitable sugar mills. VSSA predicted that there would be 15 mills by 2025 instead of 40 currently.
Facbook begin testing its online-dating product, called Dating, in Colombia today.
The service was first announced at the annual F8 conference in May this year, and will likely be available in other locations in the future. For now, users aged 18 and older in Colombia will be able to create dating profiles and, once those reach a critical mass, find some matches. WIRED got to preview an early version of the service, and it looks promising—especially for users looking for meaningful long-term relationships rather than hookups.
In other words, you can expect to find exactly zero swiping.
Facebook enters the dating-service market years after competitors like Tinder and Bumble, but it starts with a huge advantage: Most people already have Facebook accounts. And while Dating works only on mobile right now, it doesn’t require downloading an additional application to your phone. But in the US at least, younger—and more likely to be single—people say they’re using the social network less. It’s not yet clear whether Dating would be enough to lure them back to the social site preferred by their parents.
As Facebook announced in May, users will create separate profiles just for the Dating service. The only information ported over is your age and first name; you will need to manually fill out additional required information including your verified location, gender, and the gender(s) of the people you’re interested in matching with. You can also specify your height, religion, job title, where you work, where you went to school, and whether you have children.
You can round out your profile with up to nine total photos or ice-breaker questions provided by Facebook. Currently, there are 20 questions to choose from, like “What does the perfect day look like?” For now, you can’t write your own.
Once your profile is set, Facebook will use a unique algorithm to match you with potential dates, based on factors like things you have in common and mutual friends. You won’t see anyone you’re already friends with on Facebook, nor will you see people you’ve blocked. You can also report and block users with the same tools available elsewhere on the social network.
Facebook restricts potential matches to people located less than 100 kilometers away (there will be a different metric-system equivalent when the product rolls out in the US). Like other dating apps, you can also choose only to match with people who live nearby, have children, share the same religion, or fit into a specific age or height bracket.
“We’re trying to connect people that are open to getting to know each other in the future,” says Nathan Sharp, a product manager at Facebook. “It’s all about opting-in and making sure that people are really intentional.”
As part of that mentality, Facebook Dating doesn’t have a right-or-left swiping mechanism. To sort through potential matches, you’ll need to tap “Not Interested.” Facebook Dating users won’t be able to start a conversation by simply saying “Hey.” Just like the dating app Hinge, users will instead need to respond directly to one of a potential date’s nine photos or questions, like “Was that taken in Morocco? I’ve been there too!”
Facebook Dating messages will live in their own inbox separate from Facebook Messenger, and you won’t be able to send links, photos, or payments for security reasons. If you want to start swapping photos or news articles with a potential match, you’ll need to give them your phone number or switch to another messaging service.
But Facebook Dating will be able to hook into other features on the platform. For example, you can choose to match with people who attend the same events or who are a part of the same Facebook groups. To do so, you’ll need to “unlock” each event or group manually; by default users won’t be able to search for a missed connection unless the other person opts-in to being discovered.
All events and groups are fair game; users will have the ability to unlock that Taylor Swift concert from 2012 and the housewarming party they’re attending next week. One important note: group and event organizers have no control over whether members or attendees choose to date. For example, the organizer of an Alcoholics Anonymous group, or someone planning an event at a church, can’t turn the dating feature off. “The ethos there is that if people want to date, it shouldn’t be in the hands of another person,” says Sharp.
It’s these sorts of features that really stand to differentiate Facebook Dating from competitors. By utilizing the trove of data it already has about users, Facebook has the ability to become a powerful player in the online dating space. While many dating apps have relied on Facebook data for years—like to show you when a potential match has mutual friends—they’ve never been able to leverage everything. That dependence may also make them vulnerable as the social giant enters their territory, which is a weakness some companies appear to have been preparing for.
In May, for example, Tinder said it was testing a new feature called Places, which allows users to match with people who like to hang out at the same spots, like bars, restaurants, or clubs. The product relies on information from Foursquare, rather than Facebook. Other apps like Bumble and Hinge have also recently stopped requiring people have Facebook accounts to sign up.
Facebook doesn’t seem content to settle with just building a better Tinder. When the product was first announced in the spring, Chris Cox, Facebook’s chief product officer, stressed Dating is designed to foster meaningful relationships. But to do that, the company will need to truly innovate on the dating apps already in existence, which have been criticized for sparking less-than-worthwhile relationships or being more work than they’re worth.
“I would advise Facebook to make sure that [users] have an opportunity to create fully developed profiles that tap into a lot of different aspects of the person’s personality,” says Joshua Pompey, who runs two companies that help people craft and manage their online dating profiles. He says he often recommends clients use more traditional dating sites like Match.com and OkCupid, because they allow for longer profiles and tend to attract a higher number of singles interested in more serious relationships.
In the end, all Facebook Dating really needs to be is entertaining. Millions of users find swiping and chatting on dating apps to be fun in itself, even if they aren’t meeting their future partners. “A lot of the gratification itself is from just using the app and playing with it,” says Jessica James, a lecturer at Texas State University who has studied user behavior on dating apps. While some Colombians might find love on Facebook Dating, the true test might really be whether they’re simply having a good time.
VinFast’s first two car models, one sedan and one SUV, will have selling prices of no less than VND1 billion, similar to luxury models Mercedes-Benz, BMW, Audi and Lexus, Vietnamnet reported.
Commenting about VinFast’s car models, an expert said BMW technologies would be applied to VinFast’s undercarriage system, engine, interior and exterior equipment.
The models have been designed by a studio from Italy, but their designs bear strong German style. VinFast’s interior could be considered a Vietnamese version of BMW, with familiar features such as gearshift and steering wheel.
The expert affirmed that with these features, VinFast’s products will be valued at no less than VND1 billion. One BMW 5-Series has the starting price of $52,000, or VND1.2 billion, in the US.
Mercedes Benz Vietnam (MBV) would be the direct rival for VinFast’s products. Mercedes is the luxury car manufacturer with the best sales in Vietnam with revenue mostly coming from C-Class (sedan) and GLC (SUV).
Which advantages does VinFast have in the competition with MBV?
The models have been designed by a studio from Italy, but their designs bear strong German style. VinFast’s interior could be considered a Vietnamese version of BMW, with familiar features such as gearshift and steering wheel.
With 14 authorized resellers and service centers throughout the country, MBV has the largest sale agent network among luxury car manufacturers. As for VinFast, the manufacturer has the distribution network it inherited from GM Vietnam.
The network has 22 agents, or 50 percent more than MBV. Being in the real estate market and construction industry, VinFast will not find it difficult to expand its distribution network.
The second big advantage that VinFast has is the availability of spare parts. An area within VinFast’s factory in Hai Phong City makes spare parts and components that will be competitive as they don’t have to bear import costs and can enjoy tax incentives. Mercedes’ spare parts must be imported from Europe.
In general, car manufacturers begin applying new advanced technologies on luxury products first, and later on less expensive models.
Touch key, for example, was applied to BMW 7-Series first and later to 6-Series and 5-Series. High-resolution dual screens first appeared on S-Class, and then A-Class.
The heavy investments by Vingroup in VinFast in branding and designing car models show that the Vietnamese manufacturer is striving to build high-quality products. The leaders at VinFast once held high positions at GM.
Vo Quang Hue, Vingroup Deputy CEO-Automotive, told the local media at a recent interview that VinFast factory will have 1,200 remote-controlled robots operating on nights and weekends. Its welding factory is expected to be the most modern fully-automated car body welding factory in Southeast Asia.
Vietnam freight forwarding market by normal and express delivery, by freight movement (sea freight, road freight, air freight and rail freight), by international and domestic freight forwarding and by flow corridors (Asian Countries, European Countries, America and African Countries, and by international and domestic companies (3PL and Owned); Company Profile of Major Players (Damco Vietnam, Sotrans Vietnam, Vinafco, Kerry Logistics Vietnam, Bac Ky Logistics Vietnam, Nippon Express Vietnam, Vietnam Airlines, Transimex Saigon Corporation, Sea and Air Freight International, Vinalink Logistics, PetroVietnam Transport Corporation, Noi Bai Cargo Terminal Services and Others)
Analysts at Ken Research in their latest publication “Vietnam Freight Forwarding Market Outlook to 2022 – By Normal and Express Delivery; By Sea, Road, Air and Rail Freight and By International and Domestic Freight Forwarding” believe that increasing the number of channel points, strengthening infrastructure connections, improving service quality and promoting railways for freight transportation will have a positive impact on market.
Vietnam freight forwarding market is expected to register a positive CAGR of 14.2% during the forecast period 2018-2022. The market is further expected to be driven by expanding industrial activities, growing consumer preference for online shopping, upcoming infrastructure in the country & continuous investment by the government in development of logistics infrastructure and consistent economic growth.
Logistics demand from import & export activities is expected to boost with several Free Trade Agreements (FTAs) for instance, EU-Vietnam FTA.
Road is by far the most popular medium for moving freight within the country and will continue to grow owing to integration of regional economies.
By joining World Trade Organization (WTO), Vietnam officially opened its doors to foreign MNCs to establish their manufacturing bases and assembly lines within Vietnam, thereby supporting the country’s long term vision of achieving stimulating export-led growth. Vietnam’s FTA with the European Union has led to increase in cross-border freight transportation via inland waterways without any limitations. Some of the major export products include electrical machinery and equipment, nuclear reactors, footwear, apparel and textiles, furniture and others. Ho Chi Minh City region is one of the ideal locations for Vietnam’s exports and imports and is expected to be in forefront in ocean and air freight forwarding industry.
Vietnam Freight Forwarding Market Outlook to 2022.
Roadways is gaining attraction in Vietnam with the registration of more than 1,050 enterprises in the road transport business, thus becoming the first preference for moving freight within the country with a vast presence of local freight forwarders coupled with trucking fleet operators. The government of Vietnam’s emphasis on completing the North-South expressway (2,500 Kms) by 2022 and upgrading connecting roads to Laos, Cambodia, China and other GMS and ASEAN countries which will further help to strengthen the country’s trade relations. Additionally, the development of sea port infrastructure will support increasing cargo volumes throughout Cai Mep port zone in the coming years with an improvement in port capacity and connectivity.
According to VNS, Việt Nam has recorded 35 earthquakes of magnitude 2.5-4.5 so far this year, according the Earthquake and Tsunami Warning Centre under the Institute of Geophysics.
Most of these earthquakes occured in mountainous provinces bordering China and Laos, such as Quảng Nam, Sơn La, Điện Biên, Lai Châu, Thừa Thiên-Huế, Cao Bằng, Nghệ An, Thanh Hóa, Hà Tĩnh and Quảng Ninh.
The latest quake, of magnitude 3.2, struck Hòa An District, Cao Bằng Province at 10pm on Wednesday.
The tsunami warning centre is continuing to monitor this earthquake.
Of the total 35 earthquakes that occurred from the beginning of 2018, 15 were reported in Quảng Nam Province’s Bắc Trà My and Nam Trà My districts.
However, these were small quakes that did not affect houses and people, the Institute of Geophysics said.
The Vietnam Food Administration (VFA) under the Ministry of Health has issued an alert after finding that a number of websites promoting dietary supplements and health products violated advertising regulations.
The websites included Avisure Mama Hi-Q and Avisure Mama Multi of Bao Minh Pharmaceutical Joint Stock Company advertising on avisuremama.com, tiki.vn, sendo.vn; Hàu Tam Hiệp Plus of United Sport Medical Ltd Co on http://bantinnamgioi.tk; health products with extracts from solanum procumbens on thaoduoccagaileo.com, cagaileosadu.com.vn; and Omexxel Ali of Reli USA joint stock company on http://lazada.vn; http://shop.vnexpress.net; http://chuabenhxuattinhsom.net; Red Pine Gold of An Thịnh Phát Ltd on sieuthisuckhoe.vn and sieuthisamhanquoc.com.vn.
The administration said its representatives have contacted the companies whose products are advertised on the above-mentioned websites. The companies claimed that they didn’t advertise on those websites and are not responsible for their legality. Therefore, the quality and safety of these health food products cannot be guaranteed.
The VFA urged consumers to take note of this information and advised them to be careful while buying health products online.
A number of banks have rushed to raise the deposit interest rates in the last two months. The record interest rate increases are feared to have a negative impact on the market.
Most banks have raised the deposit interest rates by 0.2-0.4 percent per annum applied to long term deposits. However, the increases are higher at some banks.
Ban Viet Bank, for example, has raised the interest rate by 1.4 percent, from 7.2 percent to 8.6 percent for 24-month term deposit, the highest interest rate in the market at the time.
Some other small banks have also raised the interest rates to over 8 percent per annum for 12-month term deposits.
According to Nguyen Tri Hieu, a renowned banking expert, banks raise interest rates because the mobilized capital growth rate now is lower than the lending growth rate.
Meanwhile, the demand for capital will be increasing towards the end of the year.
In addition, banks need more capital because the State Bank has decided to lower the ceiling of short-term capital for long-term lending to 40 percent, commencing from early 2019.
Some other analysts attributed the deposit interest rate increases to the weak liquidity at banks. As the banks have to offer high interest rates to attract deposits to improve their liquidity, market interest rates have been influenced.
However,, the liquidity of the entire banking system is still high. However, this can be seen mostly at large banks which can easily call for capital from the public and have huge capital from State Treasury’s deposits.
The move by some small banks to raise interest rates has, to some extent, affected the market interest rate.
However, the banks can no longer drive the market as seen previously. While the interest rates offered by small banks rose sharply, state-owned banks, which hold 60 percent of the deposit market share, have raised the interest rates very slightly.
Hieu commented that the existence of the interest rate difference is reasonable as it helps small banks become more competitive. Deposit interest rates also serve as the tool for depositors to measure risks and make decisions.
According to Nguyen Van Du, deputy chief of the Inspection Agency under the State Bank, there are weak banks which have receipts lower than expenses.
The central bank has discovered many violations in debt classification and provisioning made by credit institutions. Some banks have been found paying ‘abnormally high interest rates’ to depositors based on negotiations with them.
Regarding the restructuring of weak banks, OceanBank, VNCB and GP Bank may be transferred to investors, including foreign ones. DongA Bank is undergoing restructuring in accordance under an approved plan.
Friday’s morning September 21 at 10:00 a.m, Vietnamese President Tran Dai Quang died of sickness.
President Tran Dai Quang died in Hanoi after sometime struggling with a serious disease, says an official source from the central government.
Nguyen Quoc Trieu, head of the healthcare division of central officials said the president passed away at 108 Military Central Hospital in the capital of Vietnam.
According to a report on VNExpress, Tran Dai Quang originates from Quang Thien Commune, Kim Son District, Ninh Binh Province in northern Vietnam. He was a professor with a Ph.D in Law, and held the positions of Director General of Department of Security Advisory, Director General of Directorate of Security and Deputy Minister of Public Security.
In 2011, he was appointed Minister of Public Security. In the same year, he was promoted from lieutenant general to colonel general, and to general a year later. He was member of the Party Central Committee, a member of the Politburo, the Party’s decision-making body, and a delegate of the National Assembly.
He served as Vietnam’s president since April 2016.
