First 8 months of 2018: Total assets of Vietnam insurers reach over $15 billion

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Total assets of Vietnamese insurance companies in the first eight months of the year surged sharply by 35.16 per cent year-on-year to nearly VNĐ365.52 trillion (US$15.55 billion), a report from the Ministry of Finance (MoF) showed.

During the period, the companies re-invested more than VNĐ289 trillion into the economy, marking a rise of 27.63 per cent year-on-year.

Total insurance premiums in the period reached nearly VNĐ80.84 trillion, up 38.81 per cent.

The MoF said that it would finalise a project on restructuring the insurance and securities market in the 2017-20 period in the remaining months of the year.

MoF will also co-operate with international institutions to research and revise the Law on Insurance besides finalising a draft decree on micro-insurance to submit to the Government for approval.

The insurance sector targets to gain total revenue of VNĐ129.24 trillion this year, up 22.38 per cent from 2017. It also plans to re-invest VNĐ305.49 trillion into the economy and increase its total assets to VNĐ370.81 trillion.

According to experts, Việt Nam’s insurance market has high potential as the number of participants remains low while incomes and awareness among local people are rising.

The insurance industry is also expected to benefit from the country’s projected GDP growth of more than 6 per cent annually over the next three years.

Vietnam’s Ho Tram Strip: First Ramada Worldwide is coming

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Vietnam is set to welcome its first Ramada Worldwide by Wyndham with a scheduled late-2019 opening in the up-and-coming Ho Tram – TTG Asia reported.

Owned and developed by Ho Tram Project Company, Ramada by Wyndham Ho Tram Strip will occupy 5.3ha of seafront land within the Ho Tram Strip – Vietnam’s first integrated beach resort destination which covers 164ha and a 2.2km beachfront site.

The hotel will feature 198-key hotel will feature seven two-bedroom penthouses and 36 three-bedroom villas, two outdoor pools, a spa, a gym, two restaurants, a pool bar and meeting rooms.

Guests will also be able to access the facilities of the surrounding Ho Tram Strip, including a convention centre, a casino, a shopping precinct, multiple restaurants and bars, and The Bluffs, an 18-hole links-style championship golf course designed by Greg Norman. A new water park is also under construction as well as an amphitheatre seating up to 2,000 people.

The property will be located than two hours from Ho Chi Minh City and Tan Son Nhat International Airport, and 60km from the upcoming Long Thanh International Airport.

Ready To Buy A Car From Vietnam’s VinFast?

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If Vietnam’s first automaker, Vinfast, is serious about contending in the global auto market, it’s initial car designs don’t indicate that it is very serious about making a splash with design.

According to a report by David Kiley on Forbes, the company intends to show two vehicles at next month’s Paris Motor Show, a sedan and crossover. Both vehicles were designed by Italian design house Pininfarina, which worked with VinFast.

The wrinkle in VinFast’s process was that it showed some 20 sketches from four Italian design houses and let the Vietnamese public vote on their favorites. The poll attracted some 62,000 people.

VinFast will show this sedan at The Paris Auto Show | @ VINFAST

The four-door sedan is a very workmanlike job, and mimics many design points scene in today’s cars from Ford, Hyundai, Opel, Volkswagen, and more–the broken crease in the sheet-metal running from tail-light to headlight, a blacked-out B-pillar, a side scoop that involves both front and back doors. It could literally be any car in the world, as generic a looking sedan as you’ll find anywhere.

Media OutReach to Expand Online Distribution Network in Vietnam with Vietnam Insider

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Media OutReach – September 10, 2018 – Vietnam Insider, a fast-growing online media  with deep finance, enterprise, tech, travel, life and other industry verticals in Vietnam has entered into an exclusive online content partnership with Media OutReach, Asia Pacific’s first global full-service newswire.

This partnership further expands Media OutReach’s extensive distribution network in Vietnam as the English edition of Vietnam Insider attracts more than 200,000 monthly page view, and we are able to help both Vietnamese PR professionals and global communicators to better reach the Vietnamese audience, says Ms Jennifer Kok, Founder and Managing Director for Media OutReach.

Media OutReach, she said, already has a strong local distribution in Vietnam reaching journalists from newspapers, magazines, online media, B2B and B2C trade publications, newswires and broadcast, including bloggers where they use Media OutReach’s content to craft stories for the Vietnamese audiences. “Our service is constantly refined based on the feedback from clients and as a newswire that is founded in this region, we have insights that allow us to understand the media and clients better. And because we own the distribution channels, we can work on strengthening our distribution and also offer customized services to suit what the clients need.”, said Ms. Jennifer Kok.

“Our focus is on building a service that is beneficial to our clients so we are  honored to be selected from among the competition as an exclusive content partner for Vietnam Insider. We are confident that our clients’ corporate news across the Asia Pacific region offers an interesting genre of news to the readers of Vietnam Insider. In the digital age where web visibility helps to drive brand presence, enhance SEO ranking and optimize social media outreach, partnering with a reputable media partner like Vietnam Insider helps us to stay on track to build visibility of their news and provides quality news content for our partner”, added the Founder of Media OutReach.

“The Vietnam Insider is pleased to partner with Media OutReach to give our readers greater and faster access to high-quality international news centered on business, trade and investment. This is how we strive to constantly enhance our service for our valued readers,” said  Mr. Duong Ngoc Dung, the Founder of Vietnam Insider.

This exclusive partnership between Media OutReach and Vietnam Insider is another step forward in expansion of both parties as Media OutReach continues to build a comprehensive distribution portfolio in Vietnam, and supports Vietnam Insider to build a wider audience across Asia Pacific and globally.

Follow Vietnam Insider on Facebook at  https://fb.com/vietnaminsider.vn  and on Twister at https://twitter.com/insidervietnam

Contract renewal for South Korean coach yet been discussed

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The Vietnam Football Federation (VFF) have not yet discussed renewing the contract for South Korean Coach Park Hang Seo who has trained the recently successful Vietnamese U23 football squad, Dtinews reported.

The information was given by a representative from the VFF in an interview with Sports and Culture Newspaper

The VFF claimed it was not an appropriate time to discuss Park’s contract as it already runs until 2020. Besides receiving a monthly salary of USD22,000, Park has also got many advertising contracts for companies and a bonus of billions of VND after U23s’ impressive results at ASIAD 18.

The achievements are just for U23 and U23+3 football squads, but not the national team, he said, adding that VFF hoped that coach could help Vietnam to make breakthroughs at the upcoming AFF Suzuki Cup 2018 and Asian Cup 2019.

When signing the contract with VFF in October 2017, Park himself set a goal to bring the Vietnamese national football team to be listed among FIFA’s top 100. He also said he believed the team could win the AFF Suzuki Cup.

The coach will return to Vietnam soon from South Korea to scout player form for the AFF Suzuki Cup 2018 slated to take place later this year.

The VFF representative said that the federation would consider renewing the contract with Park after VFF Suzuki Cup 2018.

Typhoon and super typhoon expected in East Sea this week

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According to VOV, The National Centre for Hydro-meteorological Forecasting (NCHMF) on September 10 announced that a tropical low-pressure is forming in the eastern territorial waters of Taiwan (China).

The centre said that at 7am on September 10, the core of the tropical depression was positioned about 200 km southeast of Taiwan at 21.8 degrees north, 122.4 degrees east, with strongest winds reaching 40-50km per hour.Over the next 24 hours, the tropical low pressure system will move west at a speed of 10-15km per hour and is likely to strengthen over warm waters.

At 7 am on September 11, the centre of the system will be located at 21.7 degrees north, 119.5 degrees east, about 140 km southwest of Taiwan, withwinds of 40-50km per hour.

Due to the impact of the tropical depression, there will be thundershowers and rough conditions in the East Sea area on September 11.

The system is expected to track west-southwest at a speed of 15-20 km and is likely to strengthen into a typhoon over the next 48 hours.

In addition, there is a super typhoon (international name Mangkhut) in the northwestern waters of the Pacific Ocean, which will track to the north of the East Sea over the next 4-5 days.

What can Vietnam gain as one of China’s top 10 travel markets?

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Vietnam was among the 10 countries and territories that received the most Chinese travelers in the first six months of 2018, according to Chinese media. However, the travelers have caused concerns in Vietnam.

The South China Morning Post on August 27 reported that traveling abroad has become easier than ever for Chinese citizens thanks to a looser visa policy, the opening of more direct flights to Chinese cities, and high income.

According to a Chinese tourism research institute, the 10 countries and territories which received the most Chinese travelers in H1 included Hong Kong, Macau, Thailand, Japan, Vietnam, South Korea, Singapore, Malaysia, Taiwan and the US. Thanh Lich report on VNN

CTA (China Tourism Academy), an agency belonging to the Chinese Ministry of Culture and Tourism, confirmed that most Chinese travelers choose destinations in Asia for their outbound tours, including Hong Kong, Macau, Thailand, Japan, Vietnam, Singapore and Malaysia.

The statistics released by Vietnamese agencies also show similar data. Hoang Nhan Chinh, chief secretariat of the Tourism Advisory Council, confirmed that the number of Chinese travelers to Vietnam in recent years has soared rapidly.

In 2015, Vietnam received 1.7 million Chinese travelers, while in 2017, or just two years later, it received 4 million, a 2.5-fold increase. Chinese account for 30 percent of total travelers to Vietnam.

The high proportion, in the eyes of many experts, is worrying because this shows a heavy reliance on the Chinese market. Any sudden increase or decrease in the number of travelers from the market will have a big impact on Vietnam.

The number of Chinese travelers to Vietnam is high, but the benefit they bring is not. Each Chinese traveler spends an average of $600 in Vietnam, much lower than travelers from North America ($1,500) and Europe ($1,300).

Chinese travelers mostly come to Vietnam under zero-dong tours, or tours with very low fees, and enter Vietnam through Mong Cai and Lang Son border gates. Local tourism does not receive benefits from travelers.

In late May 2018, management agencies discovered that 200,000 yuan, or VND700 million, were transferred abroad through POS and did not go through any commercial bank or intermediary payment units in Vietnam.

Meanwhile, the high number of Chinese travelers has put pressure on infrastructure and social security.

Pham Trung Luong, former Deputy head of the Research Institute for Tourism Development, commented that Vietnam should attract travelers from high-spending markets (over $1,000 per traveler) such as Europe, North America, Australia, New Zealand, and Russia.

GNN: a prime example of COD payment risk

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Domestic express mail service firm GNN Express’ stopping operations due to its billion-VND debt to vendor clients may serve as an incentive for online businesses to approach alternative payment methods to replace cash on delivery.

With the VND5.5 billion ($243,362) debt, GNN Express JSC in early September announced to temporarily halt operations as well as made a commitment to pay its debts to all online shopkeepers using its services.

The announcement has sent online shopkeepers into panic because GNN owes dozens of millions of VND to each shopkeeper. The debtors include clients of 3-4 years.

According to its Facebook fanpage, GNN has dozens of shopkeeper clients across the country. To pay wages for its staff, GNN has used the money paid as COD as a temporary solution and since the middle of July, has been regularly asking clients for an extension to pay the collected COD payments.

In its latest document on solutions to repay the company’s debts, Hoang Mai Nam, chairman of GNN Express’ management board, stated that the current crisis is entirely the fault of his brother, Hoang Ngoc, the firm’s general director.

“GNN’s shareholders are considering suing Hoang Ngoc at the Hanoi Economic Court,” the document stated.

Apart from offering Hoang Ngoc’s head on a silver plate, GNN has decided to set up a team to find a solution to repay clients as soon as possible.

Besides, the firm also admitted to mistakes in the delivery process as well as repeatedly apologized to its clients. “We hope that the clients find it in their hearts to sympathise with our financial troubles and will help us overcome the crisis,” Nam said.

As a potential lesson of GNN’s crisis, online shopkeepers might be convinced to look for alternative payment solutions to COD, which is currently the main payment solution of a large number of Vietnamese customers.

As running businesses via online websites and social network platforms is becoming a trend, card or QR payment could be good choices, as they reduce the risk of the middleman defaulting, as just happened for GNN.

Van Anh report on VIR

Uber dispute ends as firm pays back taxes, fines

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A taxman of Ho Chi Minh City has confirmed that ride hailing firm Uber has paid all its outstanding dues.

According to a report by Le Chi on Vnexpress, Deputy director of the HCMC Tax Department, Mr. Nguyen Nam Binh said that the Netherlands-based ride hailing firm has paid VND53 billion ($2.3 million) in back taxes and fines.

In September 2017, the department asked the Vietnamese branch of Uber International to pay VND66.68 billion ($2.91 million) in back taxes and fines.

Uber did not agree with this demand and only paid VND 13.3 billion. The company complained to the Ministry of Finance that it should not be subject to certain taxes under Vietnam’s agreement on double taxation avoidance with the Netherlands.

However, the Ministry of Finance issued an official reply, which rejected Uber’s argument. In response, the company filed two lawsuits against the Ho Chi Minh City Tax Department.

On August 17, Uber withdrew its lawsuit over HCMC’s demand for $2.3 million in back taxes and fines.

Uber officially left Vietnam on April 8 this year after selling its Southeast Asian business to bigger regional rival Grab.

Of the VND66.68 billion that Uber paid, VND10.3 billion is tax fines, VND51.48 billion is back taxes, and VND4.9 billion is late payment fees.

 

 

Gender equality: the competitive edge of business

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Babeth Ngoc Han Lefur, country director of Oxfam in Vietnam, offers an insight into how far Vietnam has gone in promoting equality between men and women.

Vietnam has one of the most progressive gender equality laws in Asia. As regional business leaders convene in Hanoi on September 11-13, 2018 for the World Economic Forum on ASEAN, they have an opportunity to learn from Vietnam’s successes and shortcomings in promoting equality between men and women.

Vietnam was among the first countries to ratify the UN’s Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) on women’s rights in 1982, and the Vietnamese women’s labour force participation of over 73 per cent is one of the highest in the region. And yet Vietnamese women are mostly found in unskilled and untrained labour-intensive sectors.

They earn 33 per cent less on average than their male counterparts in all fields, with the biggest difference of 43 per cent found in agriculture and foreign companies. In the government, only one out of 20 ministers, and 89 out of 1048 department directors are female.

Globally, more men than women own land, shares, and other capital assets, men are paid more for filling the same roles as women, and men are concentrated in higher paid jobs.

The unpaid care work that hugely contributes to the world’s economic prosperity is unrecognised and unrewarded, keeping women subordinate and restrained in their choices.

In the social enterprise sector, Southeast Asia is leading the way on pay parity and leadership opportunities for women compared to all other regions, and yet women in Asia earn a fraction of men’s wages and are more likely to be paid below the minimum wage.

There is compelling evidence that women in leadership in companies drive profits and give businesses a competitive edge. On a national level, greater gender equality in the workforce provides enormous macroeconomic opportunities.

The McKinsey Global Institute asserted in 2015 that if women participated equally in the global economy, they could generate additional GDP worth $28 trillion by 2025. This amount is roughly equivalent to the size of the Chinese and US economies combined.

In order for government and business leaders to do better, they must begin by addressing three key barriers to economic equality:

Agree that the idea that ‘our economic model is gender-neutral’ is a myth. Instead, the policy environment needs to revalue and redistribute care work to end the double burden that many women face.
Women’s economic empowerment is a practical selling point for companies and businesses, but is not enough to demonstrate a commitment to change corporate culture—the entrenched structures that undermine women’s access to resources, assets, and leadership positions.
The biggest barrier to change is often the deeply-held social norms, beliefs, and behaviours within companies and organisations’ own practices. Policies are important, but are valueless if not applied consistently.
Pragmatically or even intuitively, Asian business leaders understand that economic equality can only be achieved by ending gender inequalities, but the how is evasive. A useful framework for companies’ diagnosis, planning, and interventions, called the Rao-Kelleher framework, considers organisational strategy in four dimensions: individual attitudes, access to resources, cultural norms, and formal laws/policies. These dimensions relate to and build on each other.

Change in formal rules and policies is necessary to put accountability mechanisms in place within the organisation’s mission and mandate, ensuring that gender equality is a priority in business decisions, as well as policies for work-family balance and to fight sexual harassment.

Along with this, staff need access to resources, space, and time to advance equality, with more women in leadership positions, training and capacity building opportunities for achieving gender equality goals. This is built on leaders’ and employees’ knowledge and commitment to gender equality and capacity for dialogue.

Finally, change in informal norms and practices is a long-term process involving power sharing, the acceptance of women’s leadership, work-family balance, and inclusive organisational cultures that prioritise learning and prevent harassment and discrimination.

In Vietnam, the legal environment provides a good foundation for companies to develop comprehensive gender policies within their organisations as well as in business operations. The bigger and more complex task is to enhance gender diversity thinking and culture at the workplace, such as discouraging gender stereotyping, penalising gender discrimination, and promoting values and behaviours of equality and diversity.

Businesses that genuinely strive for inclusion tackle the solution with a comprehensive inside/outside strategy, including good policies, a business culture that values women’s leadership, and contributions to shared prosperity in society.

Businesses’ competitive edge does not come only from the maximisation of profits: it lies in gender diversity and environmental sustainability that drive business growth.

On the occasion of the World Economic Forum on ASEAN, Oxfam launches a discussion paper entitled ‘The Future of business: Shaping inclusive growth in Southeast Asia’ that presents a spectrum of responsible business models that can help to deliver more sustainable and inclusive economic development, zooming on gender equalities at work. The paper will be released on September 11.

Babeth Ngoc Han Lefur report on VIR

September 10: VN-Index up 0.15%

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Ups and downs on both HSX and HNX.

Positives on the stock market on September 10 included the VN-Index gaining slightly and foreigners continuing to net buy.

The VN-Index ended the day on HSX at 970.34 points, up 1.44 points (0.15 per cent), while the VN30-Index closed at 943.31 points, down 2.28 points (0.24 per cent).

On HNX, the HNX-Index finished at 110.69 points, down 1.01 points (0.91 per cent), the HNX30-Index 199.03 points, down 2.07 points (1.03 per cent), and the UPCoM-Index 51.04 points, up 0.04 points (0.07 per cent).

Liquidity on HSX was VND2.9 trillion ($124.5 million) and on HNX was VND545.88 billion ($23.47 million).

Food and beverage stocks to gain ground included TAC, TLG, VNM and VCF, by 3, 0.4, 0.4 and 0.3 per cent, as BBC lost 5.1 per cent and KDC 1.1 per cent. BHN closed at its opening price.

Gainers in banking included STB, BVH, TCB and BID, by 4, 1.2, 1 and 0.3 per cent, as EIB, TPB and VCI closed at their opening price. MSN lost 3.7 per cent, VPB 2.4 per cent, CTG 1.1 per cent, MBB 0.9 per cent and SSI 0.6 per cent.

In energy, PLX gained 2.5 per cent, PVD 0.7 per cent and GAS 0.4 per cent. PVT lost 1.1 per cent and NT2 0.4 per cent as PPC and PGD closed at their opening price.

The Top 5 shares bought by foreign investors were VCB, GEX, SSI, VNM and DXG.

HPG was the largest net sold share on HSX, followed by NVL, MSN, DIG and CTI.

HAD was the largest net sold share on HNX, followed by TIG, VGC, PCG and CEO.

On UPCoM, foreign investors bought 386,500 shares worth VND39.22 million ($1,685).

They net bought on HSX by VND130.79 billion ($5.62 million) and on HNX by VND27.24 billion ($1.17 million).

Huyen Thanh report on Vneconomictimes

LG Chem forges battery partnership with Vietnam’s Vinfast

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LG Chem, a top battery maker in South Korea, has forged a strategic partnership with Vinfast, a Vietnamese company for the supply of batteries for electric vehicles and smartphones.

A memorandum of understanding was signed last week between LC Chem and VinFast Trading & Production, a unit of Vietnam’s biggest private conglomerate, Vingroup JSC, which is building a factory in the northern port city of Hai Phong to produce electric motorcycles, electric vehicles and gasoline cars.

The deal reflects LG Chem’s strategy to expand sales in Southeast Asia when its battery business in China was still down the doldrums. Beijing has excluded electric vehicles equipped with South Korean batteries from a list of eco-friendly cars eligible for subsidies.

The partnership will provide batteries for VinFast’s scooters, electric cars and buses, smartphones and other products in the future, the state-run Vietnam News Agency reported, adding that in the short term, the cooperation would focus on producing batteries for VinFast’s e-scooters.

Vietnam News Agency said that, LG Chem would provide technologies for battery production and personnel training.

VinFast has signed contracts with Siemens Vietnam, a unit of Siemens AG, for the supply of technology and components to manufacture electric buses by the end of 2019. In June, General Motors agreed to transfer its Vietnamese operation to VinFast, which will also exclusively distribute GM’s Chevrolet cars in Vietnam.

Welcome Marc, Our New Contributing Writer, Advisor

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The respected Contributing Writer, Advisor joins the Vietnam Insider to help us tell important stories about enterprise, finance, stock market and other essential topics.

The Vietnam Insider’s readership keeps growing, and now so is our contributors. Marc joins the Vietnam Insider team this week as our new Contributing Writer, Advisor.

We’re excited to have him on board. Mr. Marc Djandji, M.Sc., CFA has been Director of Institutional Client development at Viet Dragon Securities Corporation since July 2018 and serves as its Member of Management Board and served as its Director of Brokerage for Foreign & Institutional Clients Division since January 2016 until July 2018.

Mr. Djandji was the Head of Institutional Sales and Brokerage and Foreign Individuals at VPBank Securities Company Limited, Research Division from July 2014 to January 2016. Prior to this, he served as Senior Vice President at Indochina Capital Advisors Limited. He served as the Head of Research and Equity Analyst at Viet Capital Securities Joint Stock Company, Research Division, where he drove the overall research strategy. Prior to that, he headed the research department at Mekong Securities. Mr. Djandji was the Founder at Horizon Capital Group. He served as the Head of Research at Horizon Securities Corporation, Research Division.

He co-founded ASEAN Strategy Group, an independent boutique investment bank focusing on corporate finance advisory for small to mid-market companies in Southeast Asia. He also headed the research department at Saigon Securities. He has a wealth of experience and insight on Vietnam’s capital markets having been Head of Research since 2004. In addition to having covered multiple sectors such as consumer goods, infrastructure, agri-food and real estate, Mr. Djandji designed new research products, implemented work processes and trained his equity analysts. He served as a Private Equity Analyst in a Montreal-based investment firm. Mr. Djandji is a Chartered Financial Analyst. He holds an M.Sc. in Finance from HEC Montreal.

He’s written for dozens of magazines, edited books and developed several multimedia features about enterprise, finance, stock market development and related topics.

You’ll start seeing stories written or edited by Marc on the Vietnam Insider very soon.

Follow Marc on LinkedIn. He can be reached at marc.djandji@vdsc.com.vn

About Vietnam Insider

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Hanoi, Vietnam to improve residents’ height

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Vietnam’s Hanoi capital will spend over 363 billion Vietnamese dong (some 15.8 million U.S. dollars) in the 2018-2025 period implementing nutrition and sport programs to increase its residents height, according to the municipal Health Department on Monday, September 10, 2018.

Under the programs, by 2025, at least 50 percent of communes and wards in the capital city will have outdoor sport facilities for people to do morning exercise and practice sports free of charge. Meanwhile, grade students in the city will benefit from better nutrition programs and more advanced sport facilities and clubs. Xinhua reports.

The average height of men aged 18 years or more in Hanoi is expected to increase to 167.5 cm by 2025 and 169 cm by 2030, and that of women is expected to rise to 156.5 cm by 2025, and 158 cm by 2030.

Vietnamese Prime Minister Nguyen Xuan Phuc has recently approved the Vietnam Health Program to improve the well-being, stature, longevity and life quality of Vietnamese people in the 2018-2030 period.

Vietnamese men are 163.7 cm tall on average, 13.1 cm shorter than the World Health Organization standard, while Vietnamese women are 153 cm tall, 10.7 cm below the standard, according to Vietnam’s National Institute of Nutrition.

Which mobile brands of Vietnam is the best choice?

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Followed by Campaign Asia-Pacific, Chris Elkin, former MD, Aleph-Labs: Mobile enthusiasm and internet connectivity in Vietnam has exploded to be amongst the highest in the world. There’s now far more mobile phones in Vietnam than there are people. I believe each of these mobile-friendly brands have the following three traits that help them win, long-term.

  1. Inside-out, they understand what their brand really stands for. (Their difference.)
  2. They relentlessly innovate their product, service and brand around what their customers really want.
  3. They fundamentally remain consistent in delivering their brand promise again and again.

Facebook, YouTube and messenger apps, such as FB Messenger and local Zalo, lead the pack in social media popularity, with Instagram and Twitter quite far behind. ‘Online’ is now the leading ‘first introduction’ channel to a product or service that customers subsequently purchased in Vietnam. Now far ahead of TV. There’s no silver bullet to success.

Brands need to be committed to building long-term relationships with their customers, continually innovating to find new ways of adding value to their customers often beyond their core product or service offering, designing customer delight as their top priority. Local brand, Mobile World (Thegioididong) is a great example.

With nearly 50% of Vietnam’s internet population claiming to have purchased a product or service online last year, this brand has rapidly expanded offering online delivery of mobile phones, groceries, cosmetics and electronics, ‘putting customer satisfaction first’ at the center of their brand building.

Ian Paynton, MD, We Create Content: Facebook is still the platform in Vietnam, which was the 7th largest in the world for number of users in 2017—third in Asia to Indonesia and the Philippines. 71% of Vietnam’s users watch videos daily, and as Vietnam still has a huge ‘Cash On Delivery’ culture, many users will place orders on the platform too—especially from small and medium businesses. It’s a platform used for absolutely everything in Vietnam and doesn’t seem to budging just yet.

Sumit Ramchandani, head of Southeast Asia, Lion & Lion: In Vietnam, we’ve observed that there is an apparent snob appeal regarding brands of country origin, which we see play an important role in influencing brand love. For companies like Apple and Google, they have an advantage coming from the United States.

As Facebook and Instagram continue to gain traction and popularity with more than a quarter of the Vietnamese population active on both platforms, we see most brands taking this opportunity to invest heavily in those platforms. However, there are other interesting local platforms in Vietnam such as the leading messaging app Zalo, and its associated brand Zing, which comprises a number of services such as the Zing Me social network and the Zing MP3 music app. Zing MP3 is highly popular amongst teens but brands tend to stay away from this platform due to the questionable legality of its streaming service.

Chandler Nguyen, VP of media planning, Essence: Based on the audience media consumptions, Facebook and Zalo are the two main platforms in Vietnam. There are other smaller messaging apps too. “Bitis Hunter” social media campaign was quite good. “Hunter” was the new shoe that they wanted to launch. “Omo Matic” social media campaign was really good as well with a clear concept, using digital first, video first, mobile first approach.

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