Top 3 Vietnamese banks struggle to increase capital to meet global adequacy norms

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Three top Vietnamese banks have been struggling to increase their capital to meet international adequacy norms.

The second Basel Accords, or Basel II, prescribe capital of 8 percent of risk-weighted assets for all financial institutions, including in Vietnam, to cover operational risks.

The National Financial Supervisory Commission found that Vietnamese banks need to increase their charter capital by 1.8-2 times to meet the Basel capital adequacy ratio (CAR).

They include three of the four biggest lenders, BIDV, Vietcombank and Vietinbank.

BIDV, Vietnam’s biggest bank by assets, currently has total assets of VND1,270 trillion ($54.3 billion) but capital of nearly VND34.19 trillion ($1.46 billion), which has remained unchanged since 2015.

BIDV’s CAR is now only 9 percent according to leading broker VietCapital Securities, which is “close to dangerous” if compared to Basel II standard, the bank’s CEO, Phan Duc Tu, said.

In the last three years the bank has been making three or four plans each year to increase charter capital, but none of them have been successful.

In 2016 BIDV and Vietinbank had offered to pay its largest shareholder, the State Bank of Vietnam (SBV), the previous year’s dividends in stocks and not cash to increase its capital.

But the central bank rejected it saying it needed the cash.

Last year BIDV had made several plans like initiating an employee stock ownership plan (ESOP), selling shares to existing shareholders, paying dividends in stocks, and private placement of shares to strategic shareholders.

Again all of them fell through.

The public bank with the highest state ownership – of over 95 percent – has been looking for strategic investors it can sell stakes to but in vain.

In 2016 Vietcombank, the third largest bank by assets, signed a deal with Singapore sovereign wealth fund GIC Private Limited to sell a 7.73 percent stake. The deal has yet to be consummated, with the bank’s chairman, Nghiem Xuan Thanh, saying they have been unable to agree on a price.

Vietcombank’s charter capital has remained since 2016 at VND35.98 trillion ($1.54 billion).

The SBV recently gave the lender approval to increase its charter capital by 10 percent to VND39.58 trillion ($1.69 billion).

Vietcombank plans to make a private placement of 10 percent of its stake and has received approval from its shareholders for this.

Should its plan succeed, Vietcombank will surpass Vietinbank as the bank with the largest charter capital.

Vietinbank, the country’s second largest lender by assets, has seen state ownership fall to the minimum permitted level of 65 percent, and so can no longer issue more shares.

Its charter capital has remained at VND37.23 trillion ($1.59 billion) since 2014.

A masterplan, approved by the Prime Minister early last month, targets to have 3-5 banks listed on foreign stock exchanges.

The plan, which covers the banking sector’s development until 2025 with a vision to 2030, also set targets to reduce the state capital ownership in three major banks: Vietcombank, BIDV and Vietinbank.

In 2018-2020, the state will reduce its shares in those banks to at least 65 percent and in 2021-2025, the figure will be 51 percent.

Vietnam has nine wholly-owned foreign banks, four state-owned banks and 31 joint-stock banks.

According to a report on VnExpress

Customs intercept smuggled new iPhones

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The iPhones were brought in by four US nationals on US-Vietnam flights. They were unable to provide the required papers when asked. The 250 iPhones worth nearly VND7bn (USD300,000).

Tran Ngoc Anh, vice head of the Customs Branch of Tan Son Nhat Airport, said that imported mobile phones needed to be declared at customs.

“If passengers bring more than two mobile phones that worth more than VND20m (USD857) then they must pay tax and register customs declaration of quality. Or else they will be fined and the goods will be re-exported out of Vietnam,” he said.

After Apple released their new iPhones, the risk of smuggling to Vietnam is high. In order to prevent new iPhone smuggling, the customs at Tan Son Nhat Airport said they had applied several measures to detect smuggled goods.

The authorities are investigating the sources of the smuggled iPhones.

According to a report on Hanoitimes

Hanoi vows to revoke the license of polluting firms

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A plastic, nylon bag production factory in Me Linh

The problem was discussed during an online meeting about environmental protection and urban construction management with leaders of districts, wards and communes in Hanoi on September 24, Dtinews reported.

Dozens of households in Do Ha Village, Me Linh District, have voiced their frustration over a local plastic, nylon bag production factory. According to the locals, the factory belongs to Nguyen Van Tinh and has been opened for years. It works night and day, releasing a foul smell into the air. Wastewater was not treated and has polluted local streams. The locals are also tortured by the loud noises from the factory.

They have complained to the authorities many times but nothing has been solved. Tran Van Trung, chairman of Tien Phong Commune said that they had already fined Tinh, withdrew the business licence and ordered to stop electricity to the factory. However, operations have continued. Trung said he would report the case to Me Linh District authorities.

Vu Thi Bach, the representative for other locals, said, “Since the factory operated, many people have fallen ill. My brother-in-law died last year and my sister died this year. Before her death, she kept telling her children to sell the house but who will buy it?”

According to Chu Phu My, director of the Department of Agriculture and Rural Development, the pollution in Nhue, Day and Bay rivers have badly affected the local economy. Director of Industry and Trade Le Hong Thang also worried that 18 industrial clusters still lacked waste treatment plants.

Hoang Trung Hai, party secretary of Hanoi, said littering was still rampant and rubbish collecting at some locations was slow. Moreover, environmental projects are often behind schedule. Hai said he had discussed with the city people’s committee and the people’s council to find funding for river cleaning projects.

“This is a huge shortcoming and low awareness about responsibilities. Don’t the leaders feel ashamed when your areas are so dirty?” Hai said.

He emphasised that factories must treat the wastewater first before discharging. If the authorities fail to tighten management and withdraw licenses of polluting firms then nothing will improve. The rivers will be polluted time and time again since factories keep discharging into them.

Hai also urged to deal with air pollution problem, ban the use of honeycomb coal at apartment buildings and frequently carry out fire safety inspections.

Facebook joins broadcasting battlefield

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After huge tensions around purchasing the broadcasting rights of the World Cup and the Asiad, global social network Facebook has announced to have purchased the rights to broadcast the Premier League.

Facebook has just reached a $264-million deal with the Premier League to broadcast the 2019-2021 seasons in Vietnam, Laos, Cambodia, and Thailand on its internet platform. Thus, in the next three years, Facebook users will be able to watch the programmes without depending on television networks, VIR reported.

Purchasing the broadcasting rights for the Premier League is Facebook’s first step into the television ground. Later on, the platform may add TV shows and game shows, media expert Le Quoc Vinh told laodong.vn.

Prior to Facebook, Amazon also spent $40 million to buy the broadcasting rights for the US Open Tennis Tournament in England during the past five years. In the US, the social network Twitter became the country’s first technology firm holding the rights to broadcast the National Football League in 2016.

Vinh also affirmed: “Facebook’s setting foot into the battlefield will be a particularly hard blow to televisions channels because their advertising incomes will shift to Facebook.”

After Facebook’s announcement, the Vietnam Pay Television Association (VNPayTV) on September 17 sent a document to the Ministry of Information and Communications, requiring authority to protect the rights of local pay televisions and not issue a licence Facebook to broadcast the Premier League due to violating the Law on Competition.

In addition, VNPayTV also propose the MIC to temporarily not license to foreign firms like Amazon and Netflix which use over-the-top (OTT) media services in Vietnam.

On the plus side, following football matches on television is currently the best option for a large number of people as television offers better quality and larger screens than smartphones and computers.

Facebook’s move shows that social networks and online platforms are television channels redoubtable opponents. It is also a wake-up call for television channels to prepare for new competition.

More business startups focus on organic agriculture

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An ecosystem for organic agriculture is taking shape in Vietnam, helping ease difficulties for startups in the field.

Analysts note the strong rise of startups in organic agriculture and food, and higher interest by investors in the startups. Most recently, two projects raised funds through ‘Thuong vu bac ti’ TV Show (Multi-billion dong affairs).

The project with farmers to produce Hoa Nang organic rice got VND10 billion worth of investment, while the project on Soya Garden, a chain of soybean milk shops, received VND15 billion.

According to Pham Phuong Thao, managing director of Organica Investment JSC, which runs Organica chain, it is now easier to start up in organic agriculture production than some years ago.

“New startups can learn experience from pioneers. The ecosystem for startups in organic agriculture is taking shape, from input material suppliers to consultants. Many organic food certifying organizations have set up their representative offices in Vietnam,” Thao said.

However, she commented that there are still difficulties and challenges.

Nguyen Lam Vien, chair of Vinamit, a dried food producer, commented that the organic food market is considered a niche market which won’t see explosive development like industrial products, and startups in the field needs patience to exist and develop.

“The Vietnamese market has 90 million consumers, but 70 percent remain inaccessible to organic food, while 29 percent are still learning about organic food and only one percent is ready to buy organic food,” Vien said.

“Vietnamese consumers buy products with their eyes and ears, not their wisdom,” he commented. “Therefore, it’ll take organic food producers a long time to persuade consumers to accept the real value of organic products.”

Thorny path

In 2016, Vu Nam Thai, the founder of 7A farm model which produced organic meat and vegetables, turned up regularly at workshops to introduce his project. The operational activities of the farm were often updated on social networks, but new images have not appeared recently.

Thai, when talking with reporters some days ago, admitted the failure of the project.

“I had to relocate my project twice. I made a big investment in the project, but I have lost everything as the landlords changed their decisions,” he explained, saying that startups should organize production on their own land, not leased land, to avoid risks.

Also according to Thai, the demand for organic food exists, and the number of producers has increased rapidly. With the price of 20,000-25,000 per kilogram of vegetables, producers cannot make profit.

However, Thai still is optimistic about organic agriculture development, saying that he would resume production after buying two hectares of land.

According to a report on Vietnamnet

Having sexual intercourse with children in Vietnam, Slovakian man jailed for 3 years

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A Slovakian man has been sentenced to three years in jail and must be deported after serving his term for having sex with a 13-year-old boy after a court in Hanoi, Vietnam on Tuesday.

Roman Zmajkovie, 33, was charged with “Having sexual intercourse with children,” a crime punishable by imprisonment of up to 15 years.

According to the indictment, Roman Zmajkovie entered the country on a tourist visa late last year, but did not leave when it expired and continued to stay on.

Roman Zmajkovie took advantage of knowing a little Vietnamese and went to Thien Quang Lake in Hanoi to make the acquaintance of the boy.

Roman Zmajkovie promised to give the boy money in exchange for a sexual relationship, and gave him US$12.8 (VND300,000) after having sex for the first time early this year and almost double for the next time.

Roman Zmajkovic | Image source: anninhthudo.vn

The local police caught him red-handed May 4 when he was having sex with the boy at a hotel in the city centre.

The boy refused to undergo a medical examination or treatment but asked Roman Zmajkovie for VND105 million ($4,489) in compensation for his physical and mental damage. Viet Dung reports on VNExpress.

The United Nations had said last year that one in four children in Vietnam is a victim of abuse and at least 1,300 cases of sexual violence against children are reported each year.

While official statistics are unavailable, the U.N. estimates the true numbers are consistently alarming.

Officially: Dunkin’ dropping ‘Donuts’ from its logo

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After months of testing a possible name change, Dunkin’ Brands is finally ditching the word “donuts” from the coffee chain’s branding and logo.

The company, which also owns Baskin Robbins, said Tuesday that its company name, Dunkin’ Brands, will remain the same.

The switch to just “Dunkin” will begin in January. The restaurant has used “Dunkin'” in its tagline “America Runs on Dunkin’,” since 2006 and found that customers reacted positively to the shortened name.

Growing competition in the coffee and breakfast space has pressured Dunkin’ into making itself known for more than just its doughnuts. Dunkin’s strategy, which it laid out during its investor day in February, includes slimming down its menu, increasing speed and convenience, and focusing more on its beverages than its food.

Currently, beverages account for about 60 percent of Dunkin’s sales. However, executives on a media call Tuesday stressed that the company is not ditching doughnuts from its menu. In fact, Dunkin’ sells more than 3 billion doughnuts and munchkins every year.

The branding change is just another extension of Dunkin’s effort to remain more relevant to consumers. A new Dunkin’ logo will be featured on the exterior and interior signage at all new and remodeled restaurants in the U.S. and eventually internationally. Previously, the signage was only used at Dunkin’ next-generation stores.

Executives said Dunkin’ will roll the cost of the brand changes into its existing remodeling budget. The company also expects to open 1,000 new stores in the next three years.

“By simplifying and modernizing our name, while still paying homage to our heritage, we have an opportunity to create an incredible new energy for Dunkin’, both in and outside our stores,” Tony Weisman, chief marketing officer at Dunkin’ U.S., said in a statement.

Shares of Dunkin’ Brands rose more than 1 percent on Tuesday and have climbed more than 39 percent in the last year.

According to a report on CNBC

Andrei Iancu – smuggler who hid a Vietnamese boy in a suitcase

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Most of us will have spent the summer break lounging on a beach, spending quality time with the family, or jetting off abroad to discover a new country.

But some criminals will have spent their summer in much less attractive surroundings – a prison cell.

Andrei Iancu, 20, from Buzau in Romania, was stopped at the Port of Dover (UK) on this summer when Border Force officers discovered a suitcase in his boot.

The smuggler who hid a Vietnamese boy in his suitcase @ Kent Police

At first glance the suitcase appeared to only contain two large packets of crisps and several bags containing items of clothing, though when thee bags were moved an arm could be seen protruding from within a partially opened suitcase.

The arm belonged to a 16-year-old Vietnamese boy who was released from the case before being taken to hospital by ambulance. His condition has since improved after initially being described as life-threatening.

Iancu was sentenced to 18 months in prison at Canterbury Crown Court on June 29 after pleading guilty to attempting to smuggle a person into the UK.

Content Contributor Opportunities

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If you’ve answered yes to any of the above, volunteering with Vietnam Insider as a content contributor might be for you!

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To ensure vietnaminsider.vn represents the views, experiences and opinions of locals and expats across Vietnam, volunteers submit articles, videos or podcasts, or create fact sheets to be posted on vietnaminsider.vn and on our social media. The content can be about any topic that interests you and that you think will interest your peers.

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Vietnam 3PL Market is expected to reach around USD 55 Billion by the year ending 2022

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Vietnam 3PL market by Market (Freight Forwarding and Warehousing Services) and by Companies (International Companies and Domestic Companies); Major Players Operating in Vietnam 3PL Market (DHL Vietnam, Damco Vietnam, FedEx, Kerry Logistics, Gemadept, Vinafco, Transimex Saigon and others.

  • The growth in Vietnam’s E-commerce industry is likely to drive the country’ 3PL market.
  • With Vietnam’s accession to World Trade Organization (WTO), restriction on foreign entities have been reduced.

Analysts at Ken Research in their latest publication “Vietnam Third Party Logistics (3PL) Market Outlook to 2022 – By Freight Forwarding and Warehousing 3PL Services and By International Companies and Domestic Companies” believe that companies focusing on untapped market, developing innovative technological solutions and collaboration between trade related companies and Logistics Service Providers (LSPs) will have a positive impact on the market.

Vietnam 3PL market is expected to register a positive CAGR of 13.6% 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.

Vietnam Third Party Logistics (3PL) Market Outlook to 2022

Over the forecasted period 2018-2022, 3PL companies operating in Vietnam will be emphasizing more towards technological upgradation in order to increase client interactions. Growth in Vietnam’s E-commerce industry is further expected to drive the country’s 3PL market due to an increase in demand for faster delivery of goods, efficient inventory management, freight forwarding and individualized shipping time. Increasing globalization is encouraging companies across several industry verticals such as E-commerce, food and beverage, durable manufacturing, and general merchandising to expand their geographical presence, therefore creating a positive impact on 3PL market. Third-party logistics outsourcing is rapidly gaining importance in the country as more and more corporations across the world are unable to manage their complex supply chains.

Vietnam’s accession to the WTO has given a surge to the country’s FDI levels as more and more foreign entities were witnessed to setup their manufacturing facility within Vietnam. Increasing investments have given a rise to the production and sales of domestic as well as international products within Vietnam along with their transportation needs, thus providing companies with an option to in-house the delivery process or outsource it to a 3PL provider. Logistics outsourcing brings many benefits to the business such as it reduces capital, improves customer service, faster delivery of goods, developing business relationships and improved access to information.

For more information on the research report, refer to below link:

Related Reports:

Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com | +91-9015378249

Vietnam has its first female president

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Vietnam taps first woman to top leadership as acting president

After Tran Dai Quang died Friday from a serious illness, Vietnam taps Vice President Dang Thi Ngoc Thinh to be the top leadership as acting president. Bloomberg reports.

Ms. Thinh will be the acting president until the National Assembly elects a new leader, according to a statement on the government website, which cited parliament chairwoman Nguyen Thi Kim Ngan. Thinh has been vice president since April 2016.

Vietnam will hold a two-day national mourning period from Sept. 26 to Sept. 27 in honor of President Quang, the government announced on its website Sunday. Quang, who was 61, was one of the country’s top four leaders, along with the general secretary of the Communist Party, prime minister and head of the National Assembly.

A former minister of public security who supported forging closer ties with the U.S. and boosting the nation’s private sector, Quang hosted U.S. President Donald Trump during his first state visit to the communist country last year.

Under Vietnam’s constitution, the vice president becomes acting president if the president dies in office until the National Assembly chooses a permanent replacement. The parliament’s second one-month session of the year opens Oct. 22. The government’s economic policies, which include aggressively seeking trade agreements, are expected to continue.

Quang had said the U.S. and Vietnam were “former enemies, turned friends” during a joint press conference with former U.S. President Barack Obama in Hanoi in 2016.

“President Quang was a great friend of the United States,” Trump said in a statement released by the U.S. Embassy in Hanoi. “I am grateful for his personal commitment to deepening the United States-Vietnam Comprehensive Partnership.”

Vietnam ranked among the best countries for expats

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Vietnam ranked #14 among the best countries for expats after InterNations draws on its 3.2 million members and surveys over 18,000 expats people from 178 nationalities living in 187 countries or territories.

According to a report on atlasandboots.com, there are an estimated 57 million expatriates across the globe with the term ‘expat’ no longer limited to corporate employees relocating from a company’s headquarters. Instead, more and more expats are moving overseas in search of a dream. Some have remote jobs and are now working from a location they love. InterNations’ latest survey looks at how expats’ motivations for moving are changing where they go.

InterNations uses its members’ answers to rank 68 destinations on how expat residents feel towards their home away from home. The survey uses 48 individual factors that influence an expat’s experience of living in a foreign country including safety and security, family life, finances, travel and transport options, ease of settling in and average working hours.

Let’s take a look at the results

Vietnam ranked #14 among the best countries for expats

While there has been change at the top of the ranking, at the bottom it’s the usual suspects. Seven out of the 10 worst-rated countries were already in the bottom 10 in 2017.

Participants were asked to assess up to 48 factors concerning various aspects of life abroad on a scale of one to seven

New policy may cause chaos in the textbook market

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Experts have warned that the ‘one curriculum, many sets of textbooks’ policy may cause chaos in the textbook market.

A movement to boycott the ‘Tieng Viet 1 – Cong nghe giao duc’ textbook (Vietnamese language for first graders, compiled in accordance with the new education technology program) started just before the Ministry of Education and Training (MOET) approved the new education program.

Under the program, MOET will be the only agency which sets curricula for every grade, while there will be many sets of textbooks to be compiled by different groups of authors. The new program is scheduled to begin from the 2019-2020 academic year.

Once the ‘one curriculum, many sets of textbooks’ policy is implemented, healthy competition is the prerequisite to have a healthy textbook market.

Analysts say that groups of textbook compilers and publishers are trying to launch an unhealthy competition to eliminate rivals.

The Vietnam Education Publishing House, now the only textbook publisher in Vietnam, is believed to pocket big profit with 100 million textbook copies printed every year. Parents have to pay VND1 trillion each year for textbooks.

A high school teacher in Hanoi affirmed that some groups of authors have been compiling new textbooks, even though the MOET still has not publicized the curricula and formal learning subjects.

Analysts warned that as there would be many textbook compilers and publishers, it would be difficult to control the market.

According to Nguyen Quoc Vuong, a researcher, there are principles that need to be observed.

The textbook inspection council must be completely independent and transparent with members who do not have relations with publishers. The members of the council must not be textbook compilers or officials who have the right to decide which textbooks to use.

Some experts, agreeing with Vuong, warned that if the phases of the textbook compilation and distribution cannot be separated, the textbook market will become chaotic as it is cornered by groups of interests.

Textbook compilers, publishing houses and schools could collude with each other. Textbook suppliers may pay under-the-table money to headmasters of schools to persuade the headmaster to choose their textbooks for the schools.

Vuong said there must be a transparent mechanism about who will have the right to choose textbooks. They could be headmasters, parents, teachers or local councils, but the selection process must be carried out in a transparent way.

According to a report on Vietnamnet

Late President “loved and respected by many”

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President Tran Dai Quang signed a letter to Vietnamese children on the occasion of the Mid-Autumn Festival. He did not know that it would be his last signature.

He was admitted to the military hospital on the afternoon of the same day. He went into a coma at around 5pm and never woke up.

On the previous day, he had two receptions: at 3:30pm, he hosted Chief Justice of the Supreme People’s Court of China Zhou Qiang. At 4:30pm, he met with heads of delegations to the 14th Assembly of the Asian Organisation of Supreme Audit Institutions (ASOSAI 14).

“In the first meeting, he looked paler than on most days, but he still smiled when talking to the guest. But as he walked into the second meeting, he couldn’t hide his tiredness,” said Dương Dũng, who was the Vietnam News Agency reporter who had been exclusively covering the President’s activities for the past 29 months.

Nguyễn Quốc Triệu, former health minister and head of a national committee in charge of leaders’ health, told media that Quang was afflicted by a serious disease for which doctors have found no cure yet. The president fell sick in July 2017 and had traveled to Japan six times for treatment.

President Quang was born in 1956 in Quang Thiện Commune, Kim Sơn District, Ninh Bình Province, about 100km south of Hà Nội.

In the eyes of people in his hometown, the late President was a tough person.

Cao Hoàng Đảng, 63, President Quang’s childhood friend, said although the State leader was born into a poor family, he never complained about it.

“His father died early so their family life was harder than others’. After school, he would rush to the fields to work,” Đảng said.

Later on, Quang gained success in his studies and career, holding high-ranking positions, but he was still a simple person that local residents had known for a long time, Đảng said.

Vũ Xuân Sinh, principle of the Kim Sơn B High School in Kim Sơn District, said the late President had paid great attention to encouraging local students.

“In 2014, when he was the Minister of Public Security, he came to visit the school and found out our school facilities were degraded. He then donated funds himself and asked many other philanthropists to donate to the upgrading of the school,” Sinh said.

Lê Tiến Toàn, a teacher at the Kim Sơn B High School, said he was touched by how his old student treated him.

Toàn recently had a heart attack and had to be hospitalised in Hà Nội’s Bạch Mai Hospital. Worried about his health when the procedure was complicated, his daughter contacted the President and asked for help.

“Quang helped me a lot with the procedures and even gave me some gift. He was such a loving person and I am so proud to have a student like him,” Toàn said.

“Simple” and “down-to-earth” were also the words that many people who knew the leader would use to describe him. Dương Dũng, Vietnam News Agency reporter, said that President Quang was an open, friendly and caring person, contradicting Dũng’s initial expectations for how a head of state would behave.

“He would always find time to talk to us in between activities and sometimes even joked and called us his comrades,” Dũng said.

But President Quang was also a tough and confident person when it came to State activities, according to Trần Việt Thái, Deputy Director of the Institute for Foreign Policy and Strategic Studies under the Diplomatic Academy of Việt Nam.

“He paid a lot of attention to the country’s foreign affairs, and he was a leader with a strategic vision and a confident and decisive manner,” Thái said.

Late President Quang made a good impression on international friends when he successfully hosted many diplomatic activities last year when Việt Nam hosted the Asia Pacific Economic Forum (APEC) 2017, Thái said.

“I was mostly impressed with his manner and stamina when hosting foreign heads of states from the United States, Russia and China. He was so confident yet flexible when receiving US President Donald Trump and the General Secretary of the Communist Party of China (CPC) Central Committee and President of China Xi Jinping,” he said.

Thái also recalled how hard President Quang worked during the 2017 event, when he had to travel back and forth continuously from the capital to Đà Nẵng.

“He always put great efforts in the things he did and worked tirelessly until the last minute. He directly chaired and organised many important diplomatic activities during this event and greatly contributed to the success of the summit,” Thái said.

“He was also loved and respected by so many people working in the diplomatic sector for his down-to-earth and caring character,” Thái said.

Vietnamese Ambassador to Cambodia Vũ Quang Minh also shared his memories of the late President on his Facebook page.

Minh said that in a working session with a Vietnamese delegation from the Ministry of Defense, Cambodia Prime Minister Hun Sen said that President Quang was one of the soldiers who volunteered to come and fight with his Cambodian comrades in 1979 to push the Khmer Rouge from Phnom Penh.

And President Quang was also remembered by the Cambodia Prime Minister for having help cut his hair five times, according to Ambassador Vũ Quang Minh.

The President graduated from the People’s Police University and the School of Foreign Languages under the Ministry of Home Affairs, now the Ministry of Public Security.

He served as Deputy Minister of Public Security from 2006 to August 2011, and Minister from August 2011 to March 2016.

He assumed office as the country’s President on April 2, 2016.

President Quang will be buried in his home village in northern Ninh Bình Province after a State funeral in Hà Nội.

Source: VNS

HCM City: multi-million dollar port in danger of closure

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Since June 2017, the Saigon Premier Container Terminal (SCPT) in Nha Be district has not received any large-tonnage container vessel. The thirst for goods is causing the multi-million dollar port to incur big losses.

The Soai Rap passage has suffered from sedimentation and the water depth cannot reach – 9.5 meters to receive large vessels.

Doan Hong Tam, deputy general director on July 24, confirmed that as the port has needed container goods for one year, SCPT is facing big difficulties.

In the entire 2017, the port only received small vessels with the cargo capacity of 34,000 cars, while the number of cars arrived in the first six months of 2018 was equal to 20 percent of the same period last year.

SPCT is developed by the joint venture between Dubai Ports World (DP World) and Tan Thuan Industry Development capitalized at $410 million ($250 million in the first phase). It became operational in 2010 with the capacity of 1.5 million TEU per annum.

When programming the development of ports in Hiep Phuoc area, HCMC and ministries had to spend VND300-400 billion to dredge the Soai Rap passage every year to ensure the water depth of – 9.5 meters for large vessels to dock at the Hiep Phuoc port area.

“Because of the passage sedimentation, we cannot receive container goods, but can only receive import cars, carried in small-tonnage vessels,” Tam said.

Besides SPCT, the Hiep Phuoc area also accommodates other ports, namely Tan Cang Hiep Phuoc, Saigon-Hiep Phuoc and specialized ports for the Hiep Phuoc Industrial Zone.

The situation became serious when NYK’s Castor Leader, which was carrying cars, was caught in a shoal for six hours on the way to SPCT.

Since March 2018, the cargo vessel going in/out of the ports in Hiep Phuoc area with the draft of over 7.5 meters have to shift to the Saigon-Vung Tau passage (Long Tau River) which is narrow.

Also according to SPCT, shipping lines earlier this year requested SPCT to provide information about the current situation and the plan to dredge Soai Rap passage.

However, SPCT cannot give an answer because it is the state’s responsibility to dredge passages, not port owners.

The operation of SPCT depends on the maintenance and dredging of Soai Rap, work which depends on planning by state agencies.

Sources said that the annual passage dredging is carried out with money from the state budget. To speed up the work, HCMC local authorities proposed to advance VND300 billion from the local budget in previous years and VND400 billion this year to carry out the dredging soon so as to save the ports in Hiep Phuoc area.

Kim Chi report on VNN

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