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Serious flooding, swaying buildings as severe Typhoon Mangkhut hits Hongkong

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Typhoon Mangkhut hurtled towards Hong Kong on Sunday (Sep 16), lashing its coastline and sending skyscrapers swaying, after killing dozens in the Philippines and ripping a swathe of destruction through its agricultural heartland.

The massive storm, considered the world’s biggest this year, has already left large expanses of the Philippines’ Luzon island underwater as its fierce winds ripped trees from the ground and rains unleashed dozens of landslides.

In Hong Kong, weather authorities issued the maximum alert for the storm, which rocked the city with fierce gusts that have reportedly reached 232 kilometers (145 miles) per hour.

As the storm tore past south of Hong Kong, trees were snapped in half and roads blocked, while windows and walls in tower blocks and skyscrapers were smashed.

“We just afraid the window will break in any minute, we keep receiving lots of video from WhatsApp like flooding, flying rubbish bin, some colleagues homes have lost electricity already, we have readied torch and candle by our side,” Ms Phoebe Wong, 47, a field sales supervisor at Procter & Gamble told Channel NewsAsia.

Typhoon Mangkhut hit Hong Kong on Sunday (Sep 16), leaving fallen trees and sign posts on the roads in Prince Edward, Hong Kong. (Photo: Phoebe Wong)

According to AP, at Hong Kong’s Heng Fa Chuen housing estate, large amounts of water were seen to hitting the promenade among the waterfront. Authorities hoisted the highest No 10 tropical cyclone signal at 9.40am (0140 GMT), warning residents to be mindful of safety and to avoid waterfront areas.

Hong Kong residents in fishing villages such as Tai O were assisted by government officers to evacuate, to mitigage damage from flooding in low-lying areas, AP added.

Water levels in Hong Kong’s famous Victoria Harbour and fishing villages could surge by up to four metres, authorities said earlier, and hundreds of residents have been evacuated to storm shelters as the observatory forecast severe flooding for low-lying areas.

Shop windows were taped up and the normally traffic-clogged streets were deserted as the storm drew nearer.

The government has warned people to stay indoors but some were strolling in the park or along the waterfront on Sunday morning.

“I went running this morning. I love fresh air and there’s no one on the streets, no cars. On normal days we can’t see this,” said Hao Chen, 28, who lives in the neighbourhood of Tin Hau, on Hong Kong Island.

Some residents reported their buildings were swaying in the wind and parks were already strewn with broken branches by the early morning.

Resident Antony Kwok in the fishing village of Tai O said flood shields and ladders had been set up to protect those who live in the area’s stilt houses as waters began to rise, in a post on Facebook Live.

Almost all flights in and out of Hong Kong have been cancelled.

Preparations were in high gear on China’s southern coast, including in Yangjiang, which is not often hit by major typhoons and where the city’s 2.4 million people were bracing for a direct hit.

Further down the coast preparations were also underway in Zhanjiang, where some villagers feared for the worst.

“I couldn’t sleep last night, I saw the typhoon on television and how intense it was,” said 55-year-old Chan Yau Lok.

Nearly half a million people had been evacuated from seven cities in Guangdong province, according to AP.

The gambling enclave of Macau closed down casinos for the first time.

Streets in parts of Macau were underwater as a storm surge sent water gushing from the harbour into the city.

The government and casinos are taking extra precautions after Macau was battered by Typhoon Hato last year, which left 12 dead.

Mangkhut is due to make landfall in Guangdong later Sunday.

The national meteorological centre said southern China “will face a severe test caused by wind and rain” and urged officials to prepare for possible disasters.

On Sunday morning, the typhoon packed sustained winds of 155 kph and gusts of up to 190 kph, AP reported.

The Hong Kong Observatory said although Mangkhut had weakened slightly, its extensive, intense rainbands were bringing heavy downfall and frequent squalls.

All high-speed and some normal rail services in Guangdong and Hainan provinces were also halted Sunday, the China Railway Guangzhou Group Co said.

Super Typhoon Mangkhut. (Graphic: AFP/Gal Roma)

The typhoon has been gaining in strength over the South China sea after tearing through the Philippines.

Mangkhut, the Thai name for Southeast Asia’s mangosteen fruit, was expected to skirt 100km south of Hong Kong and veer west towards the coast of China’s Guangdong province, and the gaming center of Macau later in the day.

Source: CNA

Half of Vietnamese youths think technology will create more jobs: survey

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A majority of Vietnamese youths believe that technology will increase the number of jobs in future, a survey by the World Economic Forum has found.
The “ASEAN Youth and the Future of Work” survey done by the WEF together with internet company Sea recently released said while 51.5 percent said technology would increase the number of jobs, 35.3 percent said it would decrease the number.

These figures vary significantly in the six countries surveyed, the survey said.

Singapore and Thailand are the most pessimistic with 53 percent in the former country and 43.6 percent in the latter saying technology would take away jobs.

But on average, 52 percent of Southeast Asian youths were optimistic.

Justin Wood, head of Asia Pacific, and member of the executive committee of the WEF, said: “Globally there is concern that technological change may bring rising inequality and joblessness. But in ASEAN, the sentiment seems to be much more positive.”

The survey also showed that Vietnamese youths are most confident about the impact of technology on their future income, with 72.8 percent saying technology would increase their income, the highest of the countries surveyed.

In terms of preference for work, the survey found that 26.5 percent of ASEAN youths are currently working for themselves.

Most countries surveyed have a rising interest in self-employment. In Vietnam, this figure is currently 19.3 percent, but 24.8 percent want to be self-employed in future.

Over 10 percent of ASEAN youths work for a multinational company and 17 percent would like to work for one in the future, the survey said.

Though 16.5 percent work for a small and medium-sized enterprise (SME), only 7.4 percent want to continue their career at these companies.

“The findings suggest that small and medium-sized enterprises (SMEs) may struggle for talent in future,” Sea Group chief economist Santitarn Sathirathai said, adding it is important to continue to enhance adoption of digital technologies by SMEs to ensure young entrepreneurs have the resources they need to succeed.

The survey also found that Vietnamese youths spend the least time on the internet — five hours and 10 minutes a day. In Thailand, this figure is more than seven hours.

The survey polled 64,000 respondents aged 35 or less from Vietnam, Thailand, Malaysia, Indonesia, Singapore, and the Philippines.

Dat Nguyen report on Vnexpress

HCM City proposes ending fees for secondary students

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The Ho Chi Minh City People’s Committee has proposed to the Ministry of Finance to end tuition fees for secondary schools.

The proposal was earlier sent by the city’s Department of Education and Training and the Department of Finance and municipal government Chairman Nguyen Thanh Phong agreed to use the city’s budget to pay for students’ fees.

Ho Sy Anh, who works at the Institute for Education Research under the HCM City University of Pedagogy, said tuition fees should be abolished as they were a barrier to education.

HCM City is currently collecting tuition fees from secondary schools in line with Decree 86/2015 issued by the government regarding regulations on the collection and use of tuition fees at public schools, as well as policies on reducing, exempting and supporting tuition fees between the academic year 2016-2017 and 2020-2021.

At present, secondary school students in HCM City’s 19 inner-city districts are paying monthly tuition fees of VND100,000 (USD4.38), while those in outlying districts are required to pay VND85,000 (USD3.72) each per month.

Source: Dtinews

How to tell the kid you’re getting divorced

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While some kids may be lucky enough to skate through their parents’ separation relatively unscathed, the majority are going to suffer at least some short term, if not longer term distress.

As an adult, you’ve likely forgotten just how central your family was to your sense of stability and even identity. Children have yet to develop autonomy, independence or a secure sense of self; instead, their entire frame of reference is strongly centred around their family. When that framework is broken, their world can feel as though it has fallen apart. The conversation reports.

Importantly, the suggestions I make here relate to (relatively) amicable separations, where both parents have the best interests of their children in mind. This advice will do little to ameliorate a high conflict separation where one or both warring parents are out to destroy the other.

Under five year-olds

Very young children (under five years) have a limited understanding of relationships. What they will notice is that Dad leaves and doesn’t come back for a long period of time (days feel much longer to a five-year-old), or that they’re suddenly being shunted between two homes. The primary issue here will be separation anxiety.

Explain the situation in the simplest possible terms: “Mummy and Daddy are living in two different houses now. One week you will live with Mummy and the next with Daddy, but you can phone (the other parent) every day, and you will always have teddy (favourite toys) with you at both houses”. Keeping rules and expectations consistent between homes should provide some sense of stability and familiarity.

Primary school aged children are extremely egocentric, and may believe a bad outcome has been caused by them (I didn’t clean my room so now Mum is leaving me). As irrational as this may seem to an adult, this style of thinking is completely normal for a child of this age.

Anticipate this by explaining very clearly your separation has nothing to do with the child and you will always be there for them. Something along the lines of “Mum and Dad can’t live together anymore because some people find it too hard to stay friends when they get older”.

Teenagers

Both primary school and teenage kids can be black and white in their thinking and may cast each parent into a good versus bad role – this can be difficult to overcome and may take time to resolve.

While you should avoid involving children of any age into the specific “whys” behind your divorce, with mature teenagers this might prove difficult if there’s been a highly visible reason (heavy drinking, mental illness, irresponsible financial decisions, known infidelity).

In this case, the best you can do is avoid demonising the other parent and suggest to older children they discuss any concerns they have about that parent’s behaviour with them directly. There’s little point in dodging questions with ineffective platitudes such as “you’ll understand when you’re older”. Keep the details of your conflict private but be upfront in response to questions they have about you, your personal conduct and your plans for the future.

Always remember, if you start bagging the other parent – you are effectively criticising 50% of your child’s DNA, and you are asking them to choose sides between two people they love. This will only serve to cause further damage to your child.

Older teens may have some strong opinions about their living arrangements, and may not be inclined to abide politely by shared-care models or even family court orders. Listen to their concerns (which are very likely centred around access to friends, school/sports activities) and be sensitive and flexible. You and your ex are turning their lives upside-down and they might be quite angry about that, so prepare for a parenting outcome that may not be ideal for you.

Consistency in co-parenting

Regardless of age, try to be consistent in your co-parenting, and take personal responsibility for following through with all of your reassurances and promises.

Avoid introducing further “disrupters” onto the scene. It takes months to years for children to process and feel secure in their new family structure. Introducing a new boy/girlfriend into that mix soon after this upheaval, or engaging in radical lifestyle changes is highly insensitive at best.

Understand that your desire to move on and reinvent yourself might not be appreciated by children who need time to grieve the loss of their family unit, and adapt to your and their new situation.

Vietjet CEO: Realise your dreams

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Nguyen Thi Phuong Thao, Vietnam’s first and only female billionaire according to Forbes, shared her story of how she built the new-age airline to 1,000 local and foreign delegates at the World Economic Forum on ASEAN 2018, helping to inspire and encourage the startup generation. Nhat Ha reports.

President and CEO of Vietjet Nguyen Thi Phuong Thao, representing Vietnamese entrepreneurs, took the stage at Vietnam Business Summit (VBS), which was held on September 13 in Hanoi as part of the World Economic Forum on ASEAN 2018 (WEF on ASEAN), to address the discussion and share her experience of growing a successful business.

Startups should have big dreams
Themed “Vietnam – Reliable Business Partner: Connectivity and Creativity,” VBS focused discussions on the role of Vietnam in regional and global value chains, as well as introducing policies and business and investment opportunities, particularly in the fields of finance and infrastructure.

At the second session of VBS, which focused on introducing new business opportunities in Vietnam, as a representative of Vietnamese entrepreneurs, Thao took the stage with Citibank Vietnam CCO Natasha Ansell and shared her successful business experiences with the delegates.

“By our endeavours and dreams, Vietjet is one of the companies that is creating active and positive changes in the aviation industry,” Thao said.

She also told Vietnamese startups that it is not the technology that changes the world, but dreams. Technology is only a tool, she said; creativity originates solely from our dreams.

She advised startups, “Dare to dream big and do everything every day to make your dreams come true. Let us bring the spirit of digitalisation and automation of the Fourth Industrial Revolution into our daily lives as well as all operation processes of entrepreneurs.”

To achieve its amazing results, Thao said that Vietjet has promoted the application of technology, while ceaselessly innovating, especially by investing in new and modern

aircraft. “Entrepreneurs and businessmen are not alone in their dreams because your dreams are nurtured in a startup nation, a facilitating government, and the most dynamic ASEAN community,” Thao stressed.

As in his speech at the summit, Vietnamese Prime Minister Nguyen Xuan Phuc emphasised that the Vietnamese business environment has improved dramatically to create many more opportunities for local entrepreneurs and companies to grow competitiveness on par with international counterparts.

Make dream a reality
The billionaire shared the story of Vietjet and why the carrier was ranked 22nd among the top 50 airlines worldwide by Airfinance Journal, an aviation finance magazine. This is the first time the airline has made the coveted list.

According to Thao, Vietjet is the first airline in Vietnam to operate as a new-age carrier that focuses on diversifying aviation services, investing in the latest e-commerce and operation technologies as well as developing a modern aviation service ecology in Vietnam.

Seven years after the first Vietjet flight connecting Ho Chi Minh City to Hanoi took off with 120 passengers, in the first six months of 2018, Vietjet continued to lead the domestic passenger traffic and be the best operating flight growth airline with 59,944 flights, up nearly 22 per cent. The technical reliability was 99.66 per cent with the safety performance of flight and ground operations amongst the top in the region. The on-time performance stood at 83 per cent, becoming the leading airline in Vietnam, surpassing the ‘big man’ Vietnam Airlines.

In the first half of 2018, Vietjet’s accumulated air transport revenue reached VND16.5 trillion ($730 million), an increase of 52.6 per cent. Air transport profit stood at VND1.7 trillion ($75.2 million), an increase of 53.4 per cent over the same period of 2017, completing 56.2 per cent of the 2018 plan. As a result, the company had net sales of VND21.2 trillion ($938 million) and after-tax profit of VND2 trillion ($88.5 million), up 29 and 11 per cent, respectively, against the same period last year.

Thanks to its positive performance in the first months of the year, Vietjet shareholders will be advanced 2018 cash dividend payment at the rate of 20 per cent, in addition to 20 per cent share dividend received recently.

Everyone can fly

As a dynamic, innovative airline Vietjet has quickly won passengers’ hearts to become the favorite airline in Vietnam and the region since its launch in 2007. It is the first airline in Vietnam to operate a carrier model to provide a wide range of services that change the habits of consumption and business sense.

The airline is also changing perceptions about doing business in aviation. It brings the chance to fly to almost every Vietnamese and regional citizen and each flight promises to bring unexpected joy to passengers.

As a result, the new-age carrier brings flying opportunities to a greater number of people and makes it easier for citizens to connect through high-end technologies.

Currently, Vietjet operates 60 A320 and A321 aircraft with more than 385 flights a day, carrying more than 60 million passengers so far, with 94 routes covering destinations in Vietnam as well as international destinations such as Japan, Hong Kong, Singapore, South Korea, Taiwan, China, Thailand, Myanmar, Malaysia, and Cambodia.

Vietjet also plans to expand its network across the Asia-Pacific region and is continuing to expand its regional network. Recently, the airline signed a contract agreement to purchase new, modern aircraft from the world’s leading aircraft manufacturers.

Source: VIR

Zara sees boycott after disrespecting shopper

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In the past few customers have been boycotting Zara in Hanoi, demanding the store to show more respect after officers of the outlet accused a woman with theft and arbitrarily rummaged through her belongings at the public area of the trade centre.

On September 12, the woman called B.H. took the escalator of Vincom Ba Trieu shopping centre. When she passed by the Zara outlet, the store’s security gate started ringing. The shop staff immediately approached her and asked to check her bags, even though she never entered the Zara outlet in the first place.

Zara has officially set foot in Vietnam in September 2016 by opening its first store in Vincom Center Dong Khoi, and the next one in Vincom Ba Trieu one year later.

Zara is owned by Inditex Group, one of the world’s leading fashion retailers headquartered in Spain. However, Zara stores in Vietnam are operated by Inditex’s Indonesian partner Mitra Adiperkasa. In addition to the Zara brand, Mitra Adiperkasa Vietnam also manages Pull & Bear, Stradivarius, and Massimo Dutti in the country.

“I did not even set foot into the shop and the security guard at the escalator saw that, the Zara staffs still demanded that I give them my bags. In the middle of the shopping centre, with the public staring at me like at a common thief, they ransacked my bags,” shared B.H. on her Facebook page.

“I asked them multiple times to ask the security guard beside the escalator and watch the camera recording to confirm that I did not even enter the shop before checking my bags, but they simply refused. They even asked me to hand over my clutch bag, which is as small as my hand, because apparently these are the rules at Zara. I’m not sure Zara sells anything that would fit into such a small handbag,” she continued, still fuming.

After finding nothing of consequence, the staff did not apologise to her, they said they were helping her prove her innocence, which only served to make B.H. feel more offended and slighted.

According to the Criminal Procedure Code, the authorities can check people or their belongings only when they provide evidence of violations. Thus the Zara staff’s insistence despite B.H.’s repeated outcries that she never entered the store and demands to check security footage constitute a hefty violation of the law.

It has been two days since the incident, but Zara has been quiet on the issue. Does Zara not respect shoppers and feel no need to apologise?

Nguyen Huong report on VIR

Ten years on, Hanoi’s expansion sees mixed results

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Hanoi’s expansion ten years ago benefited many people greatly while others have had a tough time of it.

Though his hometown is just 15 km west of the center of Hanoi, rough roads meant that Mr. Minh Duc had to rent a room in the capital when he started attending university in the early 2000s. When he graduated a few years later, he was still in a position where he had to live away from home, as his new job would have meant a two-hour trip from his hometown. When the Thang Long Highway was opened in 2010, however, he no longer had to rent a room and instead was able to commute from his hometown to his job in just half an hour. After Hanoi expanded its land area in 2008, infrastructure began to improve in many parts of the capital and this helped improve the lives of people like Mr. Duc, and this counts among the most outstanding results in the ten years since the expansion.

A megacity emerges

After merging all of neighboring Ha Tay province, Me Linh district in Vinh Phuc province, and four communes in Luong Son district in Hoa Binh province, modern-day Hanoi is the 17th largest capital in the world with a land area of more than 3,300 sq km.

The expansion was aimed at meeting the demand for rapid urbanization from an increasing population and attract more investment into new or upgraded infrastructure. It also targeted creating a modern and civilized image for the capital during Vietnam’s global integration.

Hanoi’s annual gross regional domestic product (GRDP) growth averaged 7.4 per cent in the 2008-2017 period, and per capita income in 2017 stood at VND86 million ($3,910), a 2.3-fold increase compared to 2008, according to a recent report from the Hanoi’s People’s Committee. The capital was ranked among the world’s Top 10 most dynamic cities in the City Momentum Index from real estate group Jones Lang LaSalle (JLL), which assessed and ranked 134 major cities.

Improved infrastructure has clearly been a key part of this growth. Along with the Thang Long Highway, a range of other major transport projects have been completed that connect Hanoi’s city center with suburban areas, such as National Highway No. 32, Vo Nguyen Giap St., Le Van Luong St., Nhat Tan Bridge, Thanh Tri Bridge, and Vinh Tuy Bridge. The city’s first metro line, Cat Linh – Ha Dong, is to open shortly. These new roads, bridges and urban railways have helped and will help improve traffic capacity and cut congestion and accidents.

Rural infrastructure is also in better shape. Concrete roads have been built in remote, poor communes in the far west of the city. “If our commune was not merged into Hanoi, I’m sure that we would still have dirt roads,” said Mr. Van Giang from Tien Xuan commune in Thach That district.

The old roads were very rough and flooded regularly, so were mostly used for walking, not for motorized traffic. Prior to 2008, it took Mr. Giang’s children hours to get to the school in the commune’s center, which was just 7 km from his home. Moreover, no one went out at night because there was no electricity and, hence, no street lighting.

Two months after the merger, power grids and concrete roads were being built. Motorbikes are now much more common in Mr. Giang’s commune and he can take his kids to school in just 20 minutes. Life is more vibrant, with more businesses opening and more entertainment available on TV and online.

More schools have also been built in these “new” parts of Hanoi, from kindergarten to high school. People also have easier access to medical services from new medical centers. When someone in the commune fell ill before the merger, a day’s travel was needed to get them to the district medical center, according to Mr. Giang, whereas now his commune has its own medical facilities. “We are lucky to live somewhere that merged into Hanoi,” he said. “Our commune is so much more developed than those nearby that are still outside of the capital. Their living standards are the same as they were ten years ago.”

Infrastructure, electricity, schools and medical care were four priorities for local investment in poor areas of expanded Hanoi, to narrow the gap between these areas and elsewhere in the capital.

The face of many other areas in the west of Hanoi also changed with the appearance of new apartment blocks, such as Van Quan, My Dinh, Mo Lao, and The Golden An Khanh.
This made Mr. Duc’s dream of owning his own home come true. When he started working in 2006 he thought he would probably have to live with his parents forever or, perhaps, may be able to afford a house in Hanoi when he was 50 years old.

Just 12 years later, he and his wife own their own two-bedroom apartment at The Golden An Khanh Residential Apartments, located only 500 meters from Thang Long Highway. Everything they need is nearby, and the apartment block has its own supermarket for late night shopping. On weekends, he can relax with his son at the swimming pool or at the playground. “If Hanoi had not expanded and encouraged urbanization in my hometown, I would not have had the opportunity to enjoy such a modern life,” he told VET.

Forgotten land

Not everyone in the new parts of Hanoi, however, have a better life. The capital’s expansion has become a challenge for those who farm the land.
Within a few months of Hanoi expanding, more than 1,000 projects for industrial zones, hospitals, and vocational training centers were approved in the new areas of capital, mostly on the land of some 200,000 farmers.

Along with land in planned areas being taken over by authorities for development, land nearby these areas was also much sought after, creating a price fever in the local real estate market. Ms. Thanh Hien remembers the many advertisements for land along the 2 km stretch from National Highway No. 23 to her hometown in Tien Phong commune, Me Linh district, at the end of 2008. “Every day, cars of well-dressed people arrived to look at the location,” she said. “Everyone talked about new buildings and urban projects, and land prices increased rapidly.”
Like her neighbors, Ms. Hien’s farming parents sold their land, believing that their lives would be changed as they would have money in their pocket and new job opportunities from new urbanization projects.

A decade on, their lives have indeed changed, but not for the better. The money from selling their land has gone but the promised development and jobs never eventuated. Some farmers tried to breed cattle on the fallow land, but most young people headed to the city to find work, according to Ms. Hien.

The same happened in other new districts in Hanoi following the expansion, such as Ba Vi, Hoai Duc, Thach That, and Thanh Oai, where it was expected that residents from the center of Hanoi would come to live.

Most projects fell by the wayside because the rush to buy land resulted in an oversupply, according to real estate analysts. With better living conditions found in the center of Hanoi, people simply didn’t want to move in numbers that would make a difference.

Le Diem report on Vneconomictimes

Will China use Vietnamese origin to export woodwork to US?

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The massive arrival of Chinese enterprises to Vietnam to set up woodwork processing workshops has raised concern that China may exploit Vietnamese origin to export products to the US and avoid high taxes.

Thanh Nien quoted Tran Viet Tien, director of Lavanto Home Décor, as saying that if China counterfeits Vietnamese origin to export products to the US, this will badly affect Vietnam’s exports to the US and the Vietnam brand. The US is a big export market for Vietnam.

China is a big woodwork supplier to the US market. The US decision to raise tax on woodwork imports from China will lead to higher prices of woodwork products and lower purchasing demand.

The high growth rate in woodwork exports from Vietnam to the US will bring adverse effects in the long term because the US may set up technical and tariff barriers to restrict imports.

The US is a big export market for Vietnam and any changes will be ‘dangerous’ for Vietnam.

An analyst said if China wants to counterfeit Vietnamese origin, it may set up processing workshops in northern provinces in Vietnam to take full advantage of the cheap labor force here.

Meanwhile, Nguyen Chien Thang, chair of Scansia Pacific in Dong Nai province, thinks that it would be more difficult to counterfeit the Vietnamese origin for woodwork, because the products are cumbersome and require high transportation fees.

However, he said small Chinese enterprises may come to Vietnam and open workshops under Vietnamese names. If so, the domestic woodwork industry will be affected.

In principle, according to the Ministry of Industry and Trade, the US imposition of high taxes on Chinese woodwork products will bring great opportunities to Vietnam.

Thang said the number of US clients showing interest in Vietnam’s woodwork products has begun to increase. It is understandable: they want to find alternative suppliers.

However, Thang doesn’t think it will be easy for Vietnamese manufacturers to exploit the US market, because the number of US companies investing in Vietnam is relatively high.

In order to increase exports to the US, analysts said, Vietnam need control material imports. Vietnam has to import 20-30 percent of materials it needs in 2018 and following years.

In 2017, Vietnam imported $363 million worth of materials from China, an increase of 27 percent over the year before. The use of Chinese materials means that Vietnam’s products will bear high tax.

Meanwhile, the other big material suppliers for Vietnam tend to tighten their wood exports.

Steel manufacturers have also voiced concern about the possibility of Chinese enterprises counterfeiting Vietnamese origin to export products to the US.

According to a report on Vietnamnet

The Sense Market in HCM City to be shutdown

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The Sense Market under the 23/9 Park in HCM City is going to be shut down as the authorities plan to reorganise the park.

Even though the market was only opened in March last year, the one-hectare site could face problems. The decision was issued by the HCM City People’s Committee. The Department of Natural Resources and Environment was asked to stop extending contracts and all traders must move out by April 30, 2019.

The market has nearly 100 restaurants which offer cuisines from many countries including Vietnam, Laos, Japan, India and Cambodia. There are also more than 400 clothes and footwear stores. The market receives about 5,000 visitors per day.

Many traders have spent hundreds of millions of VND into their stores and haven’t been able to recoup the money yet. Traders, whose contracts expired, already moved out while others are worried about their fate.

Pham Tuyet Nga, a clothes shop owner, said she had poured in VND1bn (USD42,000) and would be in debts if the market was shut down. She hopes the authorities will extend the deadline until the traders recover their money.

Nguyen Binh Phuong, director of Cuu Long Company, the market’s investor, said, “This area was dirty and abandoned. When we were approved by the authorities, we spent VND200bn (USD8.5m) to upgrade and turn this area into a unique destination for both locals and tourists. It also provides jobs for 500 traders who used to work on pavements.”

Nguyen Thi Tranh, director of Saigon Co.op Investment Development JSC, the market’s operator, said the decision was regrettable since this was Vietnam’s first underground market.

They suggested developing underground businesses and services to ensure the green space above.

According to a report on Dtinews

Foreigners hunt for high-end apartments in HCM City

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At several real estate projects in HCM City, especially in districts 2 and 7, the number of apartments sold to foreigners has reached the mandated ceiling.

Nguyen Duc Tai, a real estate broker, said two South Koreans wanted him to find apartments in district 2 for them, but it was difficult because of the ceiling limit.

Under current regulations, the number of apartments sold to foreigners in a project must not be higher than 30 percent of the total.

“The two South Koreans later had to lease apartments for 1-2 years and wait for opportunities to buy an apartment,” he said.

Tai, who has been a broker for five years, said foreigners prefer high-end apartments in Thao Dien Ward, Districts 2 and 7. South Korean expats favor the projects in district 7, where a South Korean community has taken shape.

In general, South Korean choose high-end projects with fewer than 500 apartments, because they don’t like the projects with a high density of people.

However, Tai said, in many cases, room for foreigners has run out not because they have been sold to speculators, not to many foreigners.

“Many speculators make fat profits when selling apartments to foreigners at the beginning of every year, when foreigners come to Vietnam to start their work”.

The representative of a large real estate firm in HCM City confirmed that 100 apartments at the firm’s project in district 7 have been sold to expats from Hong Kong.

He said the demand from Hong Kong people is high.

“The real estate price in Vietnam is much more ‘reasonable’ than in Hong Kong. That is why houses and apartments in Vietnam are favored by Hong Kong people,” he explained.

Savills Vietnam also commented that Vietnam is an ideal destination for buyers from Taiwan, Hong Kong and South Korea, because the price here is much lower than in their home markets.

According to Nguyen Khanh Duy from Savills, a high-end apartment in the central area of the city can be bought at VND115.3 million per square meter, or approximately $5,000. In Hong Kong, buyers would have to pay four times higher for similar products.

Foreigners like to buy houses in Vietnam also because the ROI (return on investment) is attractive. Since the high-end apartment supply is not plentiful, the market segment has high liquidity.

According to a report on Vietnamnet

Vietnamese Golden Ball Award 2018 officially kicked off

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The Vietnamese Golden Ball Award 2018 officially kicked off yesterday in HCM City.

This year’s award includes categories such as Man’s Golden, Silver and Bronze Ball, Woman’s Golden, Silver and Bronze Ball, Man’s Golden, Silver and Bronze Futsal, Best Foreign Player, Best Male

Player (under 21), Best Female Player (under 21), and Favourite Player, voted by fans.

Voters for the award include football experts, teams’s head coaches, coaches and captains of V-League, women, futsal clubs and reputed sports journalists all around the nation.

The winner will be announced in the end of this year.

Vietnamese Golden Ball Award, also referred to as Vietnamese Footballer of the Year, is an annual award for the best performances of Vietnamese footballers over the previous year.

It was first started 1995 by Sài Gòn Giải Phóng Newspaper and was also recognised by Việt Nam Football Federation (VFF) to belong to national award system.

The first winner was striker Le Huynh Duc. The current holder of the award, as selected in 2017, is Quang Nam Province’s midfielder Đinh Thanh Trung

According to a report on VNS

WEF ASEAN 2018 – the most successful regional meeting of WEF

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The World Economic Forum (WEF) on ASEAN 2018 (WEF ASEAN 2018) in Vietnam is the most successful regional meeting of the WEF, stated WEF Founder and Executive Chairman Prof. Klaus Schwab.

The WEF leader made the remark at a meeting with Prime Minister Nguyen Xuan Phuc in Hanoi on September 13.

Assessing the outcomes of the event, Klaus Schwab said that the WEF ASEAN 2018 was not only successful in terms of content but also organisation work, with 90,000 people around the world following its activities thanks to Industry 4.0 technologies in addition to thousands of others present at the site.

During the 60 discussions, interactions have been made effectively between startups and researchers, he said, adding that the success of the organisation work was also reflected through the rational arrangement of activities, plus good logistics work and ensured security.

According to the WEF leader, by September 13 noon, about 7.800 news items and articles on the WEF ASEAN 2018 had been published on global official websites, including 3,000 articles on Vietnamese leaders.

In addition, around 6.7 million people followed the event via Facebook and Twister, with 13,000 comments. On LinkedIn alone, nearly 33,500 people followed and commented on the WEF ASEAN 2018.

The number of news items and articles on the WEF event in Vietnam was four times higher than those of WEF meetings in several other regional countries.

The WEF Executive Chairman thanked the Vietnamese Party and Government for their attention, support and effective cooperation with the WEF to together create this success.

For his part, PM Phuc also thanked Prof. Klaus Schwab and the WEF Organising Committee for cooperating with and supporting Vietnam in successfully hosting the event.

This has opened up a new chapter in the collaboration between the WEF and Vietnam, he stressed.

According to a report on VNA

Vietnam asks Facebook to open local office ahead of controversial cyber law

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Vietnam has asked Facebook (FB.O) to open a local office as the Communist-ruled country increases pressure on global technology firms to abide by a controversial cyber security law.

Critics of the law, which takes effect on Jan. 1, 2019, say it gives Hanoi more power to crack down on dissent because it would require Facebook, Google (GOOGL.O) and other global technology firms to store locally personal data on users in Vietnam and open offices in the country.

“Acting information minister Nguyen Manh Hung suggested Facebook, given its successful business in Vietnam, should reserve revenue to invest in research and development and soon open an office in Vietnam,” the official government website said late on Thursday.

A spokeswoman for Facebook said she had no comment.

Despite sweeping economic reforms and growing openness to social change, the ruling Communist Party tolerates little dissent and exercises strict control over media in Vietnam.

Global tech firms have pushed back against the provisions for locally-stored data, but they have not taken the same tough stance on the parts of the law which bolster the government’s ability to crackdown on online political activism.

Company officials have, however, privately expressed concerns that local data centers and offices could make it easier for the authorities to seize customer data and expose local employees to the threat of arrest.

Simon Milner, Facebook’s vice-president of public policy for Asia Pacific, met on Thursday with Vietnam’s Prime Minister Nguyen Xuan Phuc on the sidelines of a World Economic Forum meeting in Hanoi.

Phuc said Facebook should be responsible for the security, safety and protection of its 60 million user accounts in Vietnam, the government website quoted the prime minister as saying at the meeting.

Gil Kaplan, Under Secretary for International Trade at the U.S. Department of Commerce, said on Monday he would raise the cyber security issue in his meetings this week with Vietnamese government officials, including the Prime Minister.

In July, seventeen U.S. lawmakers urged the chief executives of Facebook and Google to resist changes stipulated by the new law.

Last week, acting information minister Hung said Vietnam should promote home-grown social networks in order to compete with Google and Facebook and capture more of the social network market share in Vietnam, state media reported.

According to a report on Reuters

VDSC Weekly Market Recap: VRE, YEG, ACB

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The VNIndex has made a significant comeback, increasing nearly 12%, from its July 12th low of 884.75 points. We are now at 8bps away from the 1,000 threshold. For the week, the VNIndex increased 2.32% on relatively strong liquidity to close at 991.34 points.

Foreign activity improved compared to the previous week, as their trading activity increased to 17.2% of total trading compared to only 11% last week. They turned net buyers for the week (worth USD44.6mn).

Vietnam has emerged as China’s third most popular tourist destination, after Thailand and Japan which received 9.8 million and 7.4 million tourists respectively in 2017. Last year, Vietnam welcomed four million Chinese tourists, accounting for 30% of the total arrivals.

As many as 10 airlines operating on 30 routes bring Chinese tourists to Vietnam, with up to 500, mainly chartered, flights per week. In the first half of 2018, 2.5 million Chinese tourists visited Vietnam, representing a 36 per cent year-on-year increase. Top beneficiaries of this trend should be ACV, AST, and VJC.

On a somewhat related note, Vietnamese Deputy Prime Minister, Mr. Vuong Dinh Hue recently instructed the State Bank of Vietnam, the Ministry of Finance and relevant government agencies to crack down on the use of Chinese electronic wallet services, such as WeChat Pay and AliPay by Chinese tourists. The government is concerned that the use of such payment methods, through which the transactions, conducted between Chinese bank accounts of Chinese tourists and business owners, can circumvent Vietnam’s banking system and national regulations, leading to loss of tax revenues and other potential problems.

Uncertainty around the US-China trade continues as the US administration sends mixed signals about holding trade talks. Chinese officials said they have grown wary of the Trump administration’s unpredictable decision-making process and may be hesitant to accept without a clear sign U.S. negotiators have authority to speak for the president.

In his latest tweet, President Trump seems to indicate that he has the Chinese exactly where he wants them, but so far, there is no word on potential high-level talks.

Oil has rallied since the lows of August as concerns over global supplies outweighed growing fears of EM contagion and uncertainties around the effect of Trump’s trade war with China on energy consumption. World spare capacity, including those of OPEC and Russia, is likely to be lower than what the market has historically needed to avoid price volatility. This all could likely support prices for the time being which could make its way into inflation prices in Vietnam.

The World Economic Forum on ASEAN was held this week in Hanoi. At a session on digital markets and global opportunities one of the speakers said that Vietnam’s e-commerce sector is growing at a rate of 35% a year and predicted to be worth USD10 billion by 2020. While the foundations are in place, with communication infrastructure covering almost 90 percent of the country, internet users still only make up around 55% of Vietnam’s population. Once internet penetration is achieved across the region, the next step is for owners of SMEs to learn how to move their business from offline to online. Top beneficiary of this trend should be YEG.

The Hanoi Stock Exchange (HNX) announced it will hold an auction for the shares of Military Commercial Joint Stock Bank (MBB) owned by Vietcombank (VCB). Specifically, 53.4 million shares of MBB will be offered on HNX. The starting price is 19,641 VND/share. At that amount Vietcombank is estimated to earn about VND1,050 billion. MBB shares have fallen 0.66% to VND22,650 today.

Analyst Pinboard

Currencies and contagion

Sharp weakness in many emerging market currencies in the past few months has brought back the old fear of contagion to smaller equity markets globally.
Collateral damages to these countries’ stock markets are substantial, not just because of the percentage loss they have suffered, but to the negative sentiment it sends to investors.
Emerging and Frontier equity markets have done very poorly, in USD terms, in 2018. This is normal.
The MSCI World is up 3% ytd while the MSCI Emerging Market and the MSCI Frontier Market are down 10% and 16% respectively.
Contrarians will be glad to say that this is the time to buy some of these currencies and/ or markets.
We did not mention the Venezuelan Bolivar, which has gone to around 3000 per USD at the beginning of the year to 0.25 million now!

Yeah1 Group Corporation (HoSE: YEG) – New business needs time to be proven feasible

In 1H18, YEG almost doubled its revenue and tripled its NPAT YoY, fulfilling 42% of revenue and 54% of profit according to the 2018 plan.
Regarding Media Commerce, YEG has recently made a joint venture with AKS Japan to introduce SGO48 – a “sister” group of AKB48, the famous Japanese idol girl group.
By doing this, YEG aims to become an artist management company.
On the other hand, the digital media market lately saw the entering of Facebook – the social network giant who is aggressively looking to compete with Google in digital advertising. As such, YEG will benefit from the competition as it has more place to spend its huge advertisement inventory as well as enjoy a higher CPM (cost per 1000 impressions).
Digital advertising is still a new market in Vietnam and has a lot of growing potential.

Tile Market – Competition and Competition

Domestic manufacturers are facing two major difficulties: Smuggled or tax-loophole tiles from China and Product differentiation and marketing to customers
China has been going through booming decades of development and industrial transfers. Its economy is now entering a new ‘normal state’.
That is to say, China’s tile market is facing oversupply, putting pressure for companies to export.
Differentiation between products is another issue. Most of tile products are distributed by retail channels with various patterns and designs. Tile manufacturers are going to face difficulties due to the oversupply and unclear demand from the construction market in the near term.

Asia Commercial Bank (HNX: ACB) – Not Jack of All Trades

ACB has high quality assets, strong capital adequacy and liquidity
Expanding sources of incomes while decreasing provision expenses will boosts earnings growth
ACB has focused on retail banking, with Future Bank project
After more than five years of solving its legacy issues, ACB almost finished its restructuring plan. For the longer term, ACB will focus on the ‘Future Bank’ project. The pillars which the bank will focus on include:

o Investment in technology, branding, and human resources

o Digitalization: Launching new ACB app, aiming to improve efficiency rather than to increase income

o Focus on Big data to capture more clients.

By restructuring its loan book toward high interest rate loans, ACB’s NIM will be kept at current level.
ACB paid a 15% stock dividend for 2017 in 2Q 2018. For 2018, the bank will pay a 30% stock dividend.

The Highest Trade Surplus in the History of Vietnam

In the first eight months of 2018, the trade surplus reached USD 4.7billion, never seen in the history of Vietnam.
In August, Vietnam’s trade surplus reached USD 2.2 Billion, as opposed to GSO’s forecast of minus USD 100 Million. While export revenue stood at USD 23.5 Billion, import only rose USD 1.6 Billion.
There are at least three reasons explaining this: (1) Vietnam has been benefiting from tech giants, specifically Samsung, (2) Vietnam’s agriculture exporters are having a good year as production of key goods and (3) Domestic manufacturing is quietly replacing imported goods.
Obviously, a possible stronger current account will reinforce Vietnam’s resistance to external risks.
We expect that the Dong depreciation is limited to 3% this year. Now, it is 2.6% YTD!

URC Vietnam is recognized as one of the best companies to work for by HR Asia

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URC Vietnam, a subsidiary of URC Group Philippines has been recognized as one of the best companies to work for in Vietnam by HR Asia at the “Best Companies to Work for in Asia 2018 – Vietnam Chapter”.

“Best Companies To Work For In Asia Awards” is one of the most prestigious HR awards by HR Asia Magazine – the most authoritative publication for HR professionals in Asia. This award has been organized for several years and covers 12 markets across the region this year. “Best Companies To Work For In Asia Awards” handpicks and recognizes world class corporations with high levels of employee engagement and excellent workplace cultures. This is the first time Vietnam witnessed the crowning of the best corporations to work for in Vietnam.

To be qualified as best companies to work for, nominees of the award had to meet all the requirements from HR Asia, such as successfully completing the HR Asia Employee Input Survey™ (EIS) and HR Asia Workplace and Employee Engagement Survey™ (WEES) which surveyed the company’s employee turnover rate, employee growth rate and workplace accident rate, etc.

This stringent judging process of HR Asia confirmed URC Vietnam as one of the best companies to work for in Vietnam. In the Surveys, URC Vietnam earned high scores for its talent recruitment policies, healthy corporation culture and career development opportunities extended for employees both within URC Vietnam and across the Group.

A Filipino company that has been operating in Vietnam for over 15 years, URC Vietnam has a robust management and organization structure with more than 1,600 employees in various functions manned by well-trained staff. Strong HR systems have built a culture of engagement and created a “one team” spirit. URC Vietnam provides a working environment where employees are enabled to be at their best. They have freedom in their work; they can propose ideas to the management team and get the chance to execute these ideas.

URC Vietnam installed a competencies-based HR model based on URC Group’s global approach. The company provides relevant soft skills training for its senior people and professional training for each individual aligned with the company’s overall strategy and business requirements. These training sessions enable employees to enhance their capabilities and help them reach their highest potential for taking on top management positions within URC Vietnam as well as expand their career opportunities within the URC Group’s 12 affiliates. For example, Vietnamese talents are currently leading URC Group’s global Center of Excellence for beverages.

“It is a great honor for URC Vietnam to be recognized as one of the best companies to work for in Vietnam by a reputation award in Asia. This award is a recognition and testament for our efforts to provide a professional working environment which nurtures the development of every employee. We believe that high-quality human resources will enable the company to successfully implement our strategies and fulfil our future business goals. Having people with integrity, passion, enthusiasm, and courage, URC Vietnam will be able to continue providing more and more “Made in Vietnam” products at the highest quality standard to not only the domestic market but also export to international markets such as Japan and Korea,” said Laurent Levan, President and CEO of URC Vietnam.

About URC Vietnam

URC Vietnam is a subsidiary of URC Group Philippines and started its operations in Vietnam since 2003. URC is a listed company in the Philippines Stock Exchange and is the biggest subsidiary of JG Summit Holdings, one of the largest and most diversified Filipino conglomerates in transportation, retail, real estate, banking,… which ranks among Nikkei Asia Review’s Top 300 Asian most powerful and valuable companies.

URC Vietnam has built five factories in Binh Duong, Quang Ngai, Ha Noi and is now one of the leading Food and Beverage companies with well-known brands such as C2 and Rong Do for beverages, Cream-O and Magic for biscuits, Dynamite for candies and Jack & Jill Puff Corn for snacks.

The Company has a strong management and organization structure with its current employment of more than1,600 employees comprised of various sections manned by competent and well-trained staff. URC Vietnam is committed to Vietnam’s development in the long run. Our business goal goes beyond producing and selling quality products as we also direct our efforts to create sustainability programs for our targeted communities where we operate in.