Vu Cat Tuong, a Vietnamese singer is famous among young Vietnamese music fans with hit songs like Don’t You Go, Trace of Rain or Yesterday, will perform at the Asia Song Festival to be held at Busan ASIAD Main Stadium in the Republic of Korea on October 2-3.
The musical event will gather artists from various countries and territories within the region as well as famed K-Pop stars including Wanna One, Red Velvet and Seventeen. Singer Lee Teuk of Korean boyband Super junior will be the MC of the event. VNA reports.
Tuong revealed that she would perform two songs that she had recently composed on the main day of the festival on October 3.
Asia Song Festival has been held annually in the Republic of Korea since 2004. The festival has been aired in many Asian countries and territories like the Republic of Korea, Japan, Taiwan and Hong Kong.
The participating singers are invited by the Korean Ministry of Culture, Sports and Tourism and Chairman of the Korea Foundation for International Culture Exchange.
During previous festivals, Vietnamese singers Noo Phuoc Thinh and Dong Nhi were invited to perform at the event
On Tuesday, Hanoi officials urged residents to ease off eating dog meat, saying the popular dish is tarnishing the city’s image and risks spreading rabies.
Roasted, boiled or steamed, dog meat can be found in markets and food shops across the capital city famed for its tasty street food, and the meat is traditionally eaten with rice wine or beer. But Hanoi People’s Committee has warned residents to lay off canine meat to prevent the spread of rabies and other animal-borne diseases.
It also urged them to stop eating cat meat, often dubbed “little tiger” on Vietnamese menus, which is less popular than dog but still readily available in rural areas.
The practice of killing the animals is often cruel and the city government hopes it can be gradually phased out, it said in a statement, adding that it was a matter of preserving Hanoi’s reputation as a “civilised and modern capital” among foreigners, many of which consider eating the meat of animals commonly kept as pets taboo.
“The trading, killing and use of dog and cat meat has brought on a negative reaction from tourists and expatriates living in Hanoi,” the statement said.
There are about 493,000 dogs and cats in the city, the vast majority of which are kept as domesticated pets, and about 1,000 shops open for selling the animal meat.
Three people have died from rabies in Hanoi since the beginning of this year, and two others were confirmed infected with the disease, according to official figures.
Vietnam’s capital city is renowned globally for its street food, and its culinary staples such as pho noodle soup and pate banh mi sandwiches have reached menus around the world from Paris to Pittsburgh. Hanoi city is also a playground for more adventurous diners who can sample fried frog meat, fertilised duck embryo or hot-pot turtle meat.
Southeast Asia has come a long way. ASEAN has evolved from an agrarian backwater that has been stricken by war and ravaged by colonialism to become a global economic powerhouse. The 10 members that make up ASEAN now have a combined gross domestic product (GDP) of US$2.4 trillion, and is the third fastest growing major Asian economy after China and India.
“Looking back, ASEAN helped transform Southeast Asia from an area of enmity into a region of amity; from a pocket of poverty into a land of opportunities, and; from a zone of instability into an ecosystem of peace, stability, and prosperity,” said Retno Marsudi, Foreign Minister of Indonesia succinctly of ASEAN’s transformation. The Asian Post reports.
While ASEAN as a bloc may still be behind some of the world’s major players such as the United States (US), China and the European Union (EU), the region is quickly catching up. ASEAN has embraced with open arms the Fourth Industrial Revolution by quickly establishing itself as a tech hub with a robust tech start-up scene. ASEAN is already home to a number of unicorns – start-ups valued at US$1 billion and above – such as Grab, Sea and Go-Jek.
With the Fourth Industrial Revolution heralding new technology to the region, mixed feelings arise. On one hand, there is genuine excitement that these new technologies could make the lives of millions of people in the region easier. However, on the other hand, many observers fear that automation and Artificial Intelligence (AI) could cause eventually result in widespread unemployment.
As ASEAN’s global impact increases so does its geopolitical importance and influence. Also due to the region’s strategic location on the map, Southeast Asia has received unprecedented attention from global powers, namely the US and China. Over the past five years, China has been making inroads in the region. The world’s second largest economy has been pouring in billions of dollars in investments for various infrastructure projects in virtually every ASEAN country. Furthermore, China is carving out its own territory in the waters of the South China Sea despite the ruling against them at the Permanent Court of Arbitration. Meanwhile, the US is looking to counter the influence of China by way of its allies in the Quad – Australia, Japan and India.
ASEAN also faces a number of internal challenges too. At the moment, Myanmar is facing a humanitarian crisis with the Rohingya Muslims and democracy is fast eroding in other neighbouring countries such as Thailand and Cambodia.
As the region fast forwards into the 21st century at lightning pace, important and difficult questions about the future of ASEAN are being raised. Will automation lead to mass unemployment? Can ASEAN become the next global hub for technology? What is the future of democracy in the region?
Are you a lazy beach bum looking for the perfect strip of white sand? An adventurer looking for a mountainous trek? Or simply someone that loves urban cities? Vietnam seems to have a place for every personality.
The partygoer:
Ha Long Bay, Castaway Island
Ha Long Bay is the quintessential must-visit place in Vietnam for any and all types of travellers, as it is ideal for a quiet getaway, a romantic holiday or even for someone looking to explore some culture. However, the parties held at Castaway Island, one of the many islands scattered within the bay, are notorious and infamously known to be some of the best in all of Vietnam.
Getting around the bay requires you to book some sort of tour as it is almost impossible to do it yourself. If you’re there looking to party, then look no further than Ha Long Bay Castaway Tour. For over 10 years, they have been offering an all-inclusive two-day or three-day tour of some of the must-see stunning sights of the region. These include activities like sailing around stunning karsts, exploring fishing villages, dining in caves, kayaking, etc. – all the while letting you party your trunks off at the beach in the evening till the wee hours of the morning.
The wanderer:
Sapa
Sapa is a picturesque little town in the northwest of Vietnam and is the country’s premier trekking base. There are plenty of mountains, valleys and ethnic villages for you to explore and get lost in nature.
Over in Sapa you will find the highest mountain in Indochina, Mount Fansipan, which is a beast to conquer. You can opt to do this yourself, but due to recent deaths, this is not recommended. The best way is by taking a group tour, since everything is arranged for you — food, hiking gear, the route, and awesome local homestays where you can mingle with the tribes people. The best ones span over two days and you can check out the tours offered by Sapa O’Chau, a social enterprise that does responsible treks.
Another must-do trek is Muong Hoa Valley, and the best treks will take you days. Hike your way through terraced rice fields, streams and waterfalls and spend your time meeting the locals and crashing over at their homes. They are extremely welcoming. Expect to sleep on the floor in traditional long tail houses, shower in cold water, wake up to roosters around 03.00 a.m., and of course, lots and lots of homemade happy water (rice wine). A good route to take is from Sapa Town to Ta Van Village through Y Linh Ho and Lao Chai. On the second day you can carry on to Ban Ho through Giang Ta Chai. This three-day, two-night tour offered by Central Backpackers Hostel in Hanoi does just that.
The adventurer seeker:
Phong Nha Ke Bang
What’s more adventurous than going on a five-day expedition underground and exploring the world’s largest cave? Phong Nha Ke Bang in Vietnam houses Hang Son Doong, formed during the Carboniferous/Permian geological periods, putting it at a date between two to five million years old. This cave was founded by a curious local by the name of Ho Khanh in 1991, and inside, the cave has its own climate, forests, rivers, and waterfalls – most of which you can enjoy. The cave is used mostly for scientific exploration since it is virtually untouched by man, so imagine going into a place that has been almost free of human involvement for millions of years. It will be like A Journey to the Center of the Earth by Jules Verne.
Oxalis Adventure Tours, the only company allowed to offer tours to the cave, organised the first tourist expedition inside in 2013, at a cost of USD$3,000. You need to be fit to partake in this, as there is a lot of trekking, rappelling down on ropes, climbing, sleeping under stars in a hammock in the jungle, swimming in underground river caves, etc. The waiting list is also rather long as the government only creates about 500 permits a year.
If this got your adventure senses tingling but you ultimately realise you cannot wait so long, opt to explore Hang En cave, the world’s third largest. Other caves to explore are Tu Lan, Hang Va, and Hang Tien. Oxalis has expeditions to all of these.
Social media butterfly:
Hoi An
Just south of Da Nang lies the magical little town of Hoi An, a perfect candidate of what the Vietnam tourism industry is aiming to show the world.
Once a very popular trading port in the silk route, it is now one of the most touristy cities of Vietnam — but despite the crowd, the enchanting charm of the place remains. There are plenty of historical spots to explore in Hoi An, but that’s not all. Tra Que Organic Vegetable Garden where you can try your hand at farming and fishing, and An Bang/Cua Dai beach is within minutes reach as well, providing plenty of opportunity for you to explore, and take a few Instagram-perfect shots. On the outskirts of the city are specialty villages you can reach by cycling such as Thanh Ha Pottery Village, Kim Bong Carpentry Village, Tra Nhieu Fishing Village, and Duy Vinh Sleeping Mat Village, etc.
In 1999, UNESCO formally recognised Hoi An Ancient Town as a World Heritage Site. The town itself is also beautiful to explore, with charming yellow tea houses and lantern-lit alleyways. On full moon days, it gets extra special as the whole city will be full of lanterns. Hoi An is one of the most picturesque cities you can visit in Vietnam, and one day is enough to snap a month’s worth of pictures. It is guaranteed to get you a couple hundred followers quickly — that is, if you are pro at the hashtag game.
The spoiled beach bum:
Phu Quoc
Phu Quoc is a fantastic island getaway in the south-west of Vietnam. It is the ideal destination for those seeking fancy resorts and clean beaches. The island is surrounded on all sides by gorgeous beaches, some of which are yet to be explored, and in the north, there is the ginormous Phu Quoc National Park — with plenty of mountains, jungle, streams and waterfalls, perfect for hiking, camping and getting in touch with nature.
Phu Quoc refers to an archipelago of 22 islands so you really have a lot of beach to explore. However, it’s hard to access many of these if you do not know what you are doing. In the main island of Phu Quoc, the popular ones are Bai Sao (Star beach) and Bai Dai (Long beach). Along Long beach is where you’ll find most of the high-end resorts, whereas Sao beach is at the opposite side of the island (east coast) and is very quiet from sunset onward. If you want even lesser known beaches that are also easily accessible, try May Rut islet, Mui Ong Doi, Ong Lang, Bai Thom, and Ganh Dau beach. Find one for yourself, spread out a beach blanket and spend the day working on your tan while you dive into a good, nail-biting book.
The workaholic:
Ho Chi Minh City
Last but not least is Ho Chi Minh City, the commercial capital of Vietnam and the most Westernised city. With so many sprawling high rises, office spaces, high-end residential areas, and awesome alley cafes, this city is perfect for the workaholic that loves urban cities, and spending their day working on their laptop. When you are done with work, head out to one of the many rooftop bars dotted around the city and contemplate the amazing opportunity you are taking advantage of. The city never sleeps, just like you.
The liquor and beer industry contributed VND50 trillion to the national economy in 2017, but the total damages to society might be up to 1.3-3.3 percent of GDP, equal to VND65 trillion.
According to Vietnamnet, The World Health Organization (WHO) has sent a letter to Prime Minister Nguyen Xuan Phuc and Minister of Health Nguyen Thi Kim Tien, about a draft of a law on preventing the damaging effects of alcohol and beer for consideration by the National Assembly in October
WHO has recommended three policies, on liquor & beer pricing, restricting the availability of liquor and beer, and controlling ads for the products.
Experts are still divided on how tight the control over alcohol and beer should be. Some of them emphasize that the industry is a big taxpayer.
The reports of the General Statistics Office (GSO) show steady year-on-year increase in tax amounts collected from the industry.
The liquor and beer industry contributed VND50 trillion to the national economy in 2017, but the total damages to society might be up to 1.3-3.3 percent of GDP, equal to VND65 trillion.
In 2014, the enterprises in the industry paid VND23.57 trillion to the state budget. The figure rose to VND28.878 trillion in 2015. By the end of 2017, they had paid nearly VND50 trillion.
Heineken Vietnam ranked seventh in the list of 1,000 biggest corporate income tax payers in 2017.
The list, released by the General Department of Taxation (GDT), comprises alcohol and brewery enterprises, such as Sabeco, which holds the largest domestic market share, and Habeco.
Heineken Vietnam reported that the total amount of money that member companies contributed to the national economy had reached VND42.3 trillion, or 0.88 percent of GDP.
The 2017 combined financial reports showed that the corporate income tax Sabeco paid was VND1.14 trillion, while Habeco paid VND199 billion.
Nguyen Van Viet, chair of the Vietnam Beer-Alcohol-Beverage Association (VBA), has asked state agencies to carefully consider new policies, warning that if the new regulations cause difficulties for domestic producers, they will pave the way for foreign products to conquer the market.
VBA affirmed that Vietnamese alcohol and beer consumption is at a medium level.
Regarding beer consumption, each Vietnamese consumes 40.8 liters a year, according to a report released by a Japanese university in 2016.
With the figure, Vietnam is behind South Korea and Japan. Meanwhile, the Czech Republic, which has topped the list of drinkers for 24 years, has consumption level of 143.3 liters per head per annum.
WHO reported that Vietnamese consumed an average of 8.3 liters of pure alcohol in 2015, a very high level in the region.
The store, named eDiGi, is the first authorised store to meet the standards of both Apple Premium Reseller (APR) and Apple Service Provider (ASP) in Viet Na
APR is a higher level than Apple Authorised Reseller (AAR), represented in Viet Nam by stores like FutureWorld and iCenter. Currently, only FPT’s F.Studio is at APR level.
Besides selling Apple products, eDiGi store will also be an authorised warranty centre. Users of genuine Apple products and some models purchased from other countries can also come here for warranty support.
According to statistics, the number of authorised Apple resellers in Viet Nam is only 15. Singapore has 527 and Thailand 480. FPT Retail and Mobile World currently account for 80 per cent of genuine Apple product sales in Viet Nam, with the rest coming from network operators and small retailers.
The eDiGi will be located near HCM City Central Post Office, District 1
Residents in Vietnam’s capital have been told to stop eating dog meat because it hurts the city’s image and improper slaughtering of the animals could spread rabies.
For many Vietnamese, dog meat is a delicacy that is thought to increase stamina.
Hanoi Vice Mayor Nguyen Van Suu said in a message on the city’s website that slaughtering and consuming dog and cat meat are disturbing to foreigners and “negatively impact the image of a civilised and modern capital.”
Nguyen instructed local governments to raise awareness of the risk of rabies when raising dog and cat meat.
Around 493,000 dogs and cats are in the Vietnam’s capital city.
Some 87.5 per cent are kept as pets and the rest used for “other purposes’’ namely for their meat, according to city statistics.
Dog and cat meat is considered a delicacy by some Vietnamese, although others have shunned the practice as house pets become increasingly popular among the growing middle class.
“Slaughtering, using dog and cat meat has created objections among tourists and international visitors living in Hanoi, affecting the image of a civilized capital,’’ said a directive issued by Nguyen.
Three people died this year from rabies, possibly transmitted via meat, the official said.
“People need to abandon the habit of using dog and cat meat,’’ the document said.
Ha Noi FC have been crowned champions of V.League 1 with five games to spare after claiming an unassailable 16-point lead following Sunday’s 2-0 triumph over Song Lam Nghe An.
Following a goalless first half at the Hang Day Stadium, Hoang Vu Samson opened the scoring for the hosts in the 61st minute before adding a second in the third minute of injury-time to put the result beyond doubt.
The win means that there is now no way second-placed Sanna Khanh Hoa BVN can catch Ha Noi despite them also winning on Sunday, as they beat Nam Dinh 2-1.
By wrapping up the title, Ha Noi are also guaranteed a return to continental football following a year’s absence and should be entering the AFC Champions League at the second preliminary round of qualifying, with a spot in the AFC Cup their consolation should they fail to qualify for Asia’s premier club competition.
Goals from Lam Ti Phong and Nguyen Hoang Quoc Chi put Sanna Khanh Hoa firmly in control of proceedings, although they did have to endure a nervy finish to the contest as Pham Van Quy pulled one back for the hosts just after the hour mark.
Elsewhere, Rimario Gordon hit a hat-trick to help FLC Thanh Hoa beat Hoang Anh Gia Lai 3-0, SHB Da Nang recorded a 2-1 win over XSKT Can Tho, while Nguyen Van Ngo and Dominique Da Sylva were both on target in the second half as Sai Gon beat Becamex Binh Duong 2-0.
A community-based HIV testing pilot set up in Vietnam in 2016 by the World Health Organization (WHO) and the Viet Nam Authority for HIV/AIDS Control is empowering communities and changing lives.
On Tuesday nights, Dang Quoc Phong and his friends get together at a café in Can Tho, Vietnam. They’re not just there to drink coffee and catch up – some are getting tested for HIV. “Guys like coming here because they feel more comfortable, and it’s convenient to be able to pass by after work or classes,” says Phong, a peer leader among men who have sex with men.
A few blocks away, on Wednesday mornings, female sex workers Le Thi Phung and Duong Ho Hue Tam welcome other FSW to their house to drink tea, talk and, if they want, test for HIV.
Duong Ho Hue Tam does an HIV test for a female sex worker in Can Tho, Vietnam.
Free HIV testing has been available in hospitals and clinics across Vietnam for some time, but getting those at highest risk of infection to come to a facility has proven difficult.
Data from 2016 revealed that just 36% of people who inject drugs, 41% of men who have sex with men, and 43% of female sex workers had ever tested for HIV. But as Vietnam focuses on reaching the global target of 90% of people living with HIV knowing their status by 2020, getting people the health services they need, where and when they need them, and without financial hardship is now a priority.
To help with this goal, the Vietnam Authority for HIV/AIDS Control partnered with the World Health Organization (WHO) in 2016/17 to pilot community-based HIV testing in two provinces. This makes Vietnam one of the first countries to adopt WHO recommendations targeting those not testing in traditional facilities.
In the pilot, people from the men who have sex with me, female sex workers and people who inject drug communities were trained to use HIV test kits and to counsel their peers to take a test. Last year, 2520 people at risk of HIV in Thai Nguyen and Can Tho provinces were supported by a peer to get tested. Among those, 140 people were found to be HIV-positive and 94% (131/140) started antiretroviral therapy.
The community-led approach has enabled more people with HIV to be diagnosed and start lifesaving treatment. This is important both for their health and for preventing others from becoming infected, as treatment reduces the amount of virus in a person’s body, dramatically cutting the risk that they will pass it on.
In 2017, peer testing identified 60% of all new HIV cases in Thai Nguyen and 30% of new cases in Can Tho. Nearly 70% of those who took an HIV test in the pilot were first-time testers, suggesting that this community-based approach is achieving its goal of “reaching the unreached”.
As a result of the pilot success, partner testing is now also being implemented – where partners of people who test positive are encouraged to also get tested. Of the 68 partners tested, 27 (40%) were also confirmed to be HIV-positive and 93% (25/27) started treatment.
“The peer leaders in Thai Nguyen and Can Tho are helping people within their communities to find out their HIV status and get started on treatment when necessary. They’re also helping gather evidence for the development of national guidelines on community-based HIV testing,” said Dr Kidong Park, WHO Representative in Vietnam. “This innovative approach is essential to ensuring the people who really need access to HIV testing get it.”
WHO has worked closely with the government to support provincial AIDS centres in training, monitoring and supporting peer educators so that they can provide high-quality services. Financial support from the local government has been mobilized to ensure peer educators receive an allowance to cover their costs. This is essential to the sustainability of community-based HIV testing, ensuring it can continue after the pilot is completed.
Vietnam is aiming to end transmission of HIV, in line with global goals. While there is still a long way to go, the commitment of peer leaders like Phong, Phung and Tam is changing lives, and showing how enabling communities to take the lead can make a difference.
New analysis of 71 countries just released by The McKinsey Global Institute (MGI) at World Economic Forum 2018 on Asian has identified key pro-growth policies and highlights standout role of companies in driving outperformance.
Emerging economies have accounted for almost two-thirds of the world’s GDP growth and more than half of new consumption over the past 15 years yet, as individual countries, their economic performance varies substantially. A new McKinsey Global Institute (MGI) report, Out-performers: High-growth emerging economies and the companies that propel them, identifies the emerging economies which have achieved a track record of stronger and more consistent growth than their peers and examines key factors determining their outperformance.
Of the 71 major emerging economies the report analyzes, 18 economies—about one in four—are classified as “out-performers”:
• Seven achieved more than 3.5 percent per capita GDP growth over 50 years, between 1965 and 2016. They are China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, and Thailand.
• Eleven others grew at a faster pace for a shorter period—5 percent annually in the 20 years from 1996 to 2016. They are Azerbaijan, Belarus, Cambodia, Ethiopia, India, Kazakhstan, Laos, Myanmar, Turkmenistan, Uzbekistan, and Vietnam.
While these economies and individual policies differ, outperformers tend to have two fundamental elements in common, the report finds. The first is a pro-growth policy agenda that creates a virtuous cycle of productivity, income, and demand and which encourages savings, ensures stability, and fosters competition and innovation. The second is the outsized—and underappreciated—role of large companies in driving productivity and growth. The 18 outperformers identified in the report have almost twice as many large firms (defined as publicly listed ones with annual revenue over $500 million) as other developing countries, adjusted for the size of the economies.
“Development economists have studied and written a lot about policies that have driven growth in emerging economies, and of course good policy is a must,” said Jonathan Woetzel, a director of the McKinsey Global Institute who is also a McKinsey & Company senior partner in Shanghai, the report’s lead author. “But one of the insights of our research is that highly competitive businesses have also played a critical role in propelling GDP growth—a role that is too often overlooked.”
Jonathan WOETZEL
“Decoding the combination of productivity-enhancing policies and the competitive dynamics in these outperforming emerging economies provides lessons for all countries, emerging economies and advanced economies alike, at a time when productivity growth globally has waned,” said James Manyika, chairman of the McKinsey Global Institute and a McKinsey senior partner in San Francisco.
Extending the winning formula of outperformers to all emerging economies could add $11 trillion to the global economy by 2030, a 10 percent boost equivalent to the size of China, according to the report. Out of this, $8 trillion would be the direct contribution from non-outperformers today, assuming they were able to achieve the same productivity growth rates as outperforming countries. With this productivity boost from them, emerging economies could continue to contribute more than two-thirds of global growth by 2030.
Lifting one billion people out of poverty
The 18 outperforming economies identified in the report have lifted about one billion people out of extreme poverty since 1990, helping to meet an emblematic United Nations Sustainable Development Goal. In the 71 countries overall, the number of people living in extreme poverty fell from 1.7 billion to 580 million between 1990 and 2013. The 18 outperformers accounted for almost 95 percent of that change. They were led by China (approximately 730 million lifted out of extreme poverty), India (170 million), and Indonesia (80 million).
Rising prosperity in these countries has also enabled the emergence of a new wave of middle and affluent classes with enough money to save and consume. Outperformers accounted for almost half of the growth in household spending of all emerging economies in the past 20 years.
“Long-term outperformers in particular have managed to achieve stable growth despite the Asian financial crisis of 1997, the global financial crisis of 2008, and other macroeconomic shocks and, together with policies enhancing inclusive growth, that has enabled their middle classes to flourish and expand considerably,” said Anu Madgavkar, a partner at the McKinsey Global Institute based in Mumbai.
Two major factors driving outperformance
The report highlights two major factors driving outperformance. First, outperforming economies tend to develop a pro-growth agenda across public and private sectors aimed at boosting productivity, income, and demand. Steps to boost capital accumulation, including (sometimes) forced savings, are a common feature, as are deep connections to the global economy through cross-border flows of goods, services, finance, and people. Governments in these countries have tended to invest in building competence, are agile and open to experimentation, and willing to adapt global practices to the local contexts. Critically, competition policies they implement create an impetus for productivity growth, increased investment, and the rise of competitive firms.
Second is the standout role of large companies in driving GDP-per capita growth. From 1995 to 2016, large firms’ revenue relative to GDP in outperforming developing economies almost tripled—from the equivalent of 22 percent of GDP to as much as 64 percent. That is more than double the level in other developing economies. The contribution of value added by these outperformer firms to GDP was also twice the share of their peers, and grew from 11 percent in 1995 to 27 percent in 2016. Large firms have scale to invest more in R&D, drive global expansion, train employees, and pay higher wages. This can create a spillover effect, especially to smaller firms connected to the ecosystem of large firms. At the same time, the rise of competitive large firms is dependent on strong small and medium enterprises to supply them.
Large companies in outperforming economies have tended to thrive in a highly-competitive domestic environment marked by contested leadership. Staying at the top is hard, the research finds: the top quintile of firms in terms of economic profit are more likely than not to be displaced by challengers, and they stand a better chance of falling further down the rankings than do companies in high-income economies.
Many firms from the outperforming economies are growing faster and providing higher shareholder returns than their peers in advanced economies. Companies ranked in the top quartile in terms of total return to shareholders delivered average returns of 23 percent from 2014 to 2016, compared with 15 percent for high performers in advanced economies.
They outperform their high-income peers in other ways too: A survey in the report showed that top firms in outperforming economies devote more attention to innovation, deriving 56 percent of their revenue from new products and services, eight percentage points more than their peers in advanced economies. They take decisions faster, and invest almost twice as much as comparable businesses in advanced economies, measured as a ratio of capital spending to depreciation. They are also more likely to prioritize growth outside their home markets—and in doing so, have become powerful global competitors.
“The role of contested leadership among these companies is very revealing and helps explain why they are emerging as formidable rivals to incumbents in advanced economies, said Jeongmin Seong, a senior MGI fellow based in Shanghai.
Looking to the next wave of out-performers
Looking forward, the report finds that the next wave of global growth can be led by a new set of emerging market outperformers that can on the one hand successfully drive pro-growth agenda while growing large productive firms and, on the other hand, adapt to changing global contexts. Manufacturing seems to be peaking earlier than it used to in developing countries, for example, automation is on the rise and cross-border trade flows have lost some of their dynamism since the 2008 financial crisis. New anchor economies might emerge and create opportunities. For example, as China moves away from some labor-intensive manufacturing and toward more R&D-intensive manufacturing, it is creating opportunities for India, Vietnam and other emerging economies, especially for goods produced in low-income countries from Indonesia to Uzbekistan. Overall, the share of goods trade among emerging markets, both south-south and China-south, have risen from 8 percent in 1995 to 20 percent in 2016.
The report concludes with an in-depth look at individual regions and identifies a number of countries including Bangladesh, the Philippines, Rwanda, and Sri Lanka, that could feature in a future wave of out-performers if they continue to put in place the economic fundamentals and maintain recent rapid growth.
About the McKinsey Global Institute
The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. The partners of McKinsey & Company fund MGI’s research; it is never commissioned by any business, government, or other institution. The Lauder Institute at the University of Pennsylvania ranked MGI the Number 1 private sector think tank in the world in its 2017 Global Go To Think Tank Index. Visit: http://www.mckinsey.com/mgi for further information about MGI and to download all reports.
Christopher Axe knew what to do as soon as he saw homeless Vietnamese people. He’d been there before.
The Hanoi Railway Station is one of the hotspots in the capital city for the homeless. They gather there once the city has gone to sleep, taking refuge for the night.
On a Thursday night at around 10pm, groups of homeless people had replaced the crowds of passengers when Axe arrived at the station along with 20 or so volunteers.
They carried with them bags full of neatly organized hot, nutritious meals and other necessities.
Knowing their “delivery” guys had arrived, the homeless people, elders and children included, rose and stood in line to receive food, drinks, clothes, footwear, and even toothbrushes and toilet paper.
No one pushed anyone or cut the line because everyone knew that Christopher and his team were well organized and would arrive there every Thursday at this hour.
“I have been here for almost a month, if it wasn’t for this meal, I would have gone to sleep with a roaring belly many nights, ” said Bui Thi Thu Hang.
The fifty-year-old woman had come from the northern province of Hoa Binh to Hanoi, to try and make a living by wandering around the train station and seeing if any opportunity came up.
She is one of hundreds of beneficiaries of Help Hanoi’s Homeless (HHH), a charity founded by Axe which has been distributing 100 donation bags once every week at three locations in Hanoi.
At first Axe personally made the meals to ensure enough vegetables and protein were included, and to make sure they were hygienic. After learning about his work, some restaurants decided to chip in, reducing his workload.
Christopher Axe, once homeless himself, is now an English teacher and aspiring writer. His experience has allowed him to provide genuinely useful assistance to the homeless in Hanoi for a year. Photo courtesy of HelpHanoihomless.
Christopher Axe knew what to do as soon as he saw homeless Vietnamese people. He’d been there before.
The Hanoi Railway Station is one of the hotspots in the capital city for the homeless. They gather there once the city has gone to sleep, taking refuge for the night.
On a Thursday night at around 10pm, groups of homeless people had replaced the crowds of passengers when Axe arrived at the station along with 20 or so volunteers.
They carried with them bags full of neatly organized hot, nutritious meals and other necessities.
Knowing their “delivery” guys had arrived, the homeless people, elders and children included, rose and stood in line to receive food, drinks, clothes, footwear, and even toothbrushes and toilet paper.
No one pushed anyone or cut the line because everyone knew that Christopher and his team were well organized and would arrive there every Thursday at this hour.
“I have been here for almost a month, if it wasn’t for this meal, I would have gone to sleep with a roaring belly many nights, ” said Bui Thi Thu Hang.
The fifty-year-old woman had come from the northern province of Hoa Binh to Hanoi, to try and make a living by wandering around the train station and seeing if any opportunity came up.
She is one of hundreds of beneficiaries of Help Hanoi’s Homeless (HHH), a charity founded by Axe which has been distributing 100 donation bags once every week at three locations in Hanoi.
At first Axe personally made the meals to ensure enough vegetables and protein were included, and to make sure they were hygienic. After learning about his work, some restaurants decided to chip in, reducing his workload.
The English teacher’s commitment to help the homeless has seen him come up with a map that highlights 35 locations in Hanoi where the homeless usually converge so that philanthropies know where to help out.
To fund his project, Axe has contacted different organizations and established a network of “rescue boxes” to be placed in various streets, which contain instant noodles and sausages.
At the Hanoi Railway Station, the distribution of food and other items finished at 1am. Axe returned home to continue writing his novel and prepare English lesson plans for the following day. He teaches at a center in Ngo Quyen Street, Hanoi.
He lives in the comfort of a fully furnished home, but never forgets the nights spent sleeping next to trash bins.
Even to his students, he imparts the values of appreciating life and helping others in need.
This is how he introduces himself to his students: “I was a homeless man.”
Uber tapped seasoned marketing executive Rebecca Messina as its first-ever global chief marketing officer this week.
Business Insider caught up with Messina, who said that while Uber already offers reliability, it needs to add more meaning and humanity in the lives of both consumers and drivers.
It’s critical for Uber to quickly articulate a consistent brand vision around the world, said Messina.
She also acknowledged that because Uber came up so much faster, its product may have gotten ahead of its brand.
Messina added that her previous experience has prepped her to build Uber’s brand the right way and turn it into a 21st century icon.
According to an interview by Tanya Dua on Business Insider, after a string of corporate disasters dented its brand last year, the ride-hailing company seems intent on winning back hearts as it prepares for an IPO next year. Perhaps with that in mind, it just appointed Rebecca Messina as its first-ever global chief marketing officer this week.
The seasoned marketing executive was most recently the global marketing chief at liquor brand Beam Suntory, spending 22 years at Coca-Cola in a variety of roles including senior VP of marketing and innovation for venturing and emerging brands prior to that.
Business Insider caught up with the incoming Uber marketing chief to talk about her vision for Uber. Here’s an edited version of the conversation.
Tanya Dua: It’s an interesting time at Uber. You are gearing up for an IPO, and still recovering from last year’s corporate setbacks. Why is it time for the company to get a CMO?
Rebecca Messina: The first is the change in the CEO. We now have someone who really sees the landscape holistically and understands the work that needs to be done. They’ve already made tremendous strides in terms of the evolution in engagement with drivers and with consumers, and built an incredible product that we all need in our life. Now, it’s the perfect opportunity to create a brand that also lives in our heart.
That’s really the role of a CMO, right? I like to call myself, really almost like the ‘chief meaning officer,’ in that how do I really help bring meaning into this great brand around the world and what it stands for. It’s been recognized that in Uber’s trajectory, what got the brand here won’t get the brand where it wants to go. So I think there was no time better than now. And I think Dara saw that and made it first about rebuilding trust. With trust built, we can build meaning on top of that. Trust is the first fundamental.
Dua: Speaking of consumer trust, Uber recently embarked on a massive marketing blitzkrieg. Do you think that has helped? Is it working?
Messina: My sense as a consumer is that we all live in the Uber landscape, right? It’s such an important part of our lives. I think it’s certainly taking the right steps, but I don’t think it’s enough. I absolutely think it’s helping. Dara has integrity in that he means what he says, and I think that’s genuinely felt by consumers and hopefully drivers at large.
Dua: What else do you plan to do to win audience trust back? What are some of the biggest branding challenges that you see for the brand that still need to be overcome?
Messina: There are a number of stakeholders. And my first job, I feel, is to really put my arms around the inside, around all the marketers inside the company, because I think they really have a pulse on all of Uber’s markets around the world. [They know] what’s going on with their consumers and their drivers, and both play an incredibly important role in building trust back with the brand. But we don’t have the luxury of doing that sequentially. We’ll have to quickly ensure that we’re also engaging through our brand experiences with our drivers and consumers.
It’s about employees’ belief and trust in the brand, and engagement of our marketing community and then understanding how we really continue the trust journey with consumers and the drivers everywhere. So I think it’s multifaceted. And we will probably never be done. I don’t know if you’re ever done on a trust journey. Trust is like a relationship. It can get eroded quickly and it can get built back slowly. And I think that’s something we have to recognize — that we will be on this journey for a long time.
Dua: What is your marketing strategy moving forward? What is your biggest priority?
Messina: Certainly, first and foremost, priority number one is about engaging with our 700 marketers around the world, learning from these folks and recognizing the great work that’s already been done. But then obviously standing up and also formalizing the marketing function. There’s a lot of marketers, and we need to organize how we’re going to do our work and how we’re going to engage the other functions in the company and really take that forward.
The second priority is obviously getting really clear on this brand, and that’s not fast work. We have 75 million riders around the world who engage with this brand, and it’s critically important that we are quickly able to articulate a consistent brand vision around the world, a consistent brand meaning, a consistent set of brand values and live those through the actions that we take. It’ll be the first thing I get at with that marketing community and everyone else at Uber.
Dua: Can you give me a sense of how you plan to spend as well? Do you see doing a lot more TV, or do you see yourself branch out more?
Messina: I’ve always come from the camp of where you tell your stories needs to depend on what story you’re telling. And so, until we’re super clear on what the brand is going to stand for, I think it’ll be hard to answer that. But it’s going to be multifaceted for sure. Every one of those mediums has a role. Dara’s message was so worthy of television, and needed to be told with that high awareness and high reach. But not every story needs to be told that way, some need to be told more intimately and more one-on-one. We have to figure out the stories we want to tell and where they’re best told.
Dua: As someone coming in from the outside with a fresh pair of eyes, what are some things that you think have worked for Uber as far as marketing is concerned so far that you plan to continue with? And what are some things you really want to overhaul or, or bring in and establish?
Messina: The experience tends to be consistent. Not every car is consistent of course, but the reliability is there. Those are things that are core and help build the brand. I can count on it. That’s really important. It’s reliable. I’d love to continue to push further on making it a little more personal, kind of taking a step forward and just getting a little more intimate, a little more one-on-one and personal with its consumers. I can see opportunity there.
As an observer, as a rider currently, I can see that it’s got reliability, but it might need a little more personality. There’s human interaction every time the rider gets into a car, every single time there’s a conversation waiting to happen. Its about humanity. We do 15 million rides per day globally. That’s a moment for human connection. And that is so powerful and that’s something that makes Uber so incredibly unique. There is something in there that we need to unlock, around humanity and personalization.
Dua: So you’ve obviously had a ton of experience at legacy companies like Coca-Cola and Beam Suntory. A lot of those legacy companies themselves are struggling to adapt today, but there’s a benefit to having had a foundation there. How do you think your time there has prepared you for this role?
Messina: I have the benefit of having been at Coke for some of the best years of their trajectory, in terms of really becoming a global business. And because I got to see it from so many vantage points, from the headquarters, from my time overseas, I saw that growth trajectory and what that looks like. But there’s certain steps, some brand-building fundamentals, that you can’t skip. Uber’s come up so much faster — it’s exponential — that maybe the product got ahead of the brand.
And I think I’ll be able to bring that healthy tension of let’s ensure that the brand and the product are singing the same song and one lives up to the other, instead of one getting in front of the other. And that’s one thing that you learn from a legacy company that built a brand the old way, that there are just certain steps. Consumers have to fall in love with brands and they have to do it step by step, just like we do with people.
Dua: And what are some things that you hope to learn from a startup environment like Uber, that you think you probably haven’t experienced yet?
Messina: I’m humbled that I have this opportunity to join an organization of people that grew up native to this new environment. I’m excited to learn about doing things a little bit in reverse to the way I learned at Coke. Mistakes that we made at Coke were righted in a much longer timeframe, but today we have realtime feedback. Today, we have an ability to do things and adjust and optimize constantly. That is a privilege.
I had once only dreamed of all these ways of measuring my marketing activities that I now have today. I’m walking into a company that does it every single day, naturally. And that is, that’s a wonderful situation to be in. I certainly think I may bring some things that I hope can help advance the organization, but I certainly think I have equal parts to learn.
Dua: What do you think makes for a successful brand and business today? It’s obviously not how the Cokes of the world built themselves.
Messina: The things that make a brand today are some of the things that have always made a brand. It sits on something that is fundamentally a human need or a human desire — and not always a desire that is known. It was smart folks who came before me who realized that there was an opportunity to provide the service that Uber provides, but it sits on something needed. And then, from there it absolutely has to play and speak to consumers hearts’ and consumers’ minds. And I certainly think that we’re on the brink here of becoming one of the greatest icons in the 21st century.
We have an opportunity to make this brand meaningful at both levels — hearts and minds. We have a very rare opportunity to engage the two sides of the marketplace, when a lot of legacy brands have only had a one-sided marketplace. This is where the whole idea of a consumer and a driver coming together is so incredibly powerful. But the job to be done ultimately is still the same. We have to talk to both, we have to bring meaning to both. We have to stand for something we have to do with consistency, and that is key. That has never changed. Great brands are consistent.
This is where the World Economic Forum (WEF) hopes to make a difference. This Swiss non-profit foundation is best known for its annual summit in Davos where business leaders, politicians, academicians and just about anyone of global influence congregate to solve some of the world’s most complex problems.
By bringing the summit to Southeast Asia, WEF on ASEAN looks to find answers to such difficult questions. Carrying the theme of “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution” WEF on ASEAN 2018 in Hanoi, Vietnam will be attended by 900 political, business, academic and civil society leaders. Notable heads of state that will be attending include Myanmar’s State Councillor Aung San Suu Kyi, Singapore Prime Minister Lee Hsien-Loong, Malaysia’s newly elected Prime Minister Dr Mahathir Mohamad, Indonesian President Joko Widodo, controversial Cambodian leader Hun Sen, the leader of Lao Thongloun Sisoulith and others.
These heads of state will discuss their ideas and opinions in a discussion titled “ASEAN Priorities in the Age of the Fourth Industrial Revolution”. Other discussions lined up include Trade in Trouble: Navigating Geo-Economic Tensions and Asia’s Economic Outlook featuring Indonesia’s Minister of Finance Mulyani Indrawati and Santiprabhob Veerathai, Governor of the Bank of Thailand. Also slated to happen at the forum are special one on one sessions with Dr Mahathir Mohamad, Aung San Suu Kyi and Hu Chunhua, Vice-Premier of the People’s Republic of China, respectively.
The forum will also pay special attention to entrepreneurs and their role in shaping the future of the region with 80 Southeast Asian start-ups selected to participate. These start-ups come from across the region and represent a wide variety of sectors, from financial services, logistics and e-commerce to agriculture, media and healthcare.
“We expect the start-ups to make an important contribution to shaping the debates at the meeting about the impact and course of new technologies and disruptive business models,” said Justin Head of Asia Pacific and Member of the Executive Committee at WEF.
Vietnamese startups do not get the financial support they need from the government at the discovery and validation stages.
The lack of institutional support is one of major factors behind the failure of many startups to take off and thrive, experts say.
“80-90 percent of startups fail in the early stages because they don’t have enough funding to move on to the expansion stage,” said Phan Hoang Lan, head of the Financial Planning Division under the Ministry of Science and Technology’s Market Development Department.
According to a report by Dat Nguyen on Vnexpress, funding for startups mostly comes from venture capital funds, businesses and angel investors, not from the government, experts said at a recent conference.
There are three periods in the development of a startup – discovery, validation and expansion, said Lan.
It is in the first two periods that startups need funding the most, Lan said, adding that they end up raising money from family and friends or spending their own.
This situation is very different from other countries like Singapore, where the government offers a variety of grants that can support up to 70 percent of a company’s costs, according to Tech in Asia.
The U.S. News and World ranks Singapore as the 8th best country for starting a business in its 2018 Best Countries Rankings.
Vietnam was ranked 52nd, behind other countries in Asia like Japan (2nd), South Korea (12th), Malaysia (34th), Thailand (38th) and the Philippines (45th).
Since 2015, the government has only been investing in startups in the middle stage of their development, not in the earlier ones, said Lan, who is also the head researcher of the Vietnam-Finland Innovation Partnership Program (IPP2), which seeks to improve local support mechanisms for new innovative companies.
“Government funding for startups should start in the early period. The government needs to be willing to accept failures in their investments, which could also bring a lot of benefits,” she said.
IPP2 research shows that early government funding will reduce the “crowding out effects,” which is when the government’s involvement in a sector substantially affects private companies by reducing their investment spending.
When a business has overcome the difficult period, it will no longer be dependent on the government’s capital and can source investment from other private companies.
Echoing Lan, Nguyen Tri Hieu, an economist with over 30 years of experience working in the U.S. and Vietnam, said startups in Vietnam mostly receive funding from family and friends in their earlier stages, not from the government.
In the U.S., startups can find financial support from the Small Business Administration (SBA), which has an annual budget approved by Congress to enable their establishment, Hieu told VnExpress International.
“But this is not the case in Vietnam, where they get very limited government budget support in some cities and provinces like Hanoi, Ho Chi Minh City, Da Nang and Can Tho,” he said.
Jouko Ahvenainen, CEO of digital finance firm Grow VC Group, affirmed the vital role of the government in supporting startups.
The government needs to build an ecosystem to help local and international investors connect with entrepreneurs and help them expand internationally, he said.
There should be good database of local startups so that investors can make their choices with greater ease, he added.
The number of startups in Vietnam has seen an increasing trend in recent years, reaching 92 last year, a 45 percent increase over 2016, according to the Topica Founder Institute (TFI), which has an annual program that trains and connects startups with potential investors.
These startups raised $291 million last year, up 42 percent from 2016, TFI said.
Startups in Southeast Asia attracted $7.86 billion in total last year, a threefold plus increase over 2016, Tech in Asia data shows.
Vietnam accounted for only 0.7 percent of that figure, lower than Thailand (2.2 percent), Malaysia (3.1) and Indonesia (22).
Without government support, some potential economic development will be weakened, said economist Hieu.
About 90 percent of Vietnamese businesses are of small and medium scale, but they create jobs for a majority of the labor force, he said.
“The future of the economy depends on the success of startups.”
