Vietnam manufacturing sector still expanding

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The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, eased to 53.7 in August from 54.9 in July, marking the slowest pace of improvement in operating conditions in four months.

According to a report on Nikkei, a reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.

There are signs that rates of expansion are now easing, though the conditions of the manufacturing sector remains solid.

“Although seeing a slowdown in growth of output in August, the Vietnamese manufacturing sector appears to be on a sound footing at present thanks to an ability to continue to secure strong inflows of new work,” said Andrew Harker, Associate Director at IHS Markit, which compiles the survey.

But less upbeat confidence levels suggest that “concerns around global trade flows may start to impact Vietnamese firms over the coming months.”

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Using phones while riding, Grab riders to get penalized

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National Traffic Safety Committee (NTSC) of Vietnam has ordered the traffic safety boards of Hanoi and HCMC and GrabTaxi Vietnam Co Ltd to regulate and strictly handle Grab riders using mobile phones when riding.

Specifically, the NTSC has requested the traffic safety boards of Hà Nội and HCMC to direct competent forces to intensify patrols to enforce the law against riders using phones indiscriminately on the road, especially those using phones to contact passengers. VNS reported.

The Grab Company is required to strengthen the propaganda of traffic order and safety for its rider and driver partners.

Besides, Grab-registered riders are asked to absolutely not use phones while riding. The Grab will have to consider terminating the contract with those deliberately violating.

In order to meet the needs of people in terms of saving time and transaction costs, as well as the trend of using smartphones nowadays, Grab ride-hailing apps is attracting a lot of people to use as well as register to work as partners, especially Grab Bike service.

However, after a time of operation, Grab partners reportedly often use phones to contact passengers and locate addresses while riding.

“This is an act of violating the land-road traffic order and safety, endangering the safety of road users,” the NTSC asserted.

Under the current law, riders using a hand-held phone while riding motorbikes have to pay a fine of VNĐ100,000-200,000. They also have their riding licences revoked for one to three months.

Grab is one of the most frequently used online-to-offline commerce mobile platforms in Southeast Asia, operating in 195 cities in the region. It is estimated that more than 5 million people use the combined platform daily.

Shinhan to bolster consumer financing in Vietnam

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Shinhan Financial Group is strengthening its non-banking sector in Vietnam, laying the groundwork to become a comprehensive financial group in the Southeast Asian country.

According to Shinhan Financial Group, Shinhan Card decided to give 216.4 billion won ($195.1 million) in credit to Prudential Vietnam Financial Company (PVFC), its capital subsidiary in the country. Jhoo Dong-Chan reports on Korean Tines.

In a bid to improve the group’s non-banking business there, Shinhan Financial spent 161.4 billion won to acquire PVFC specializing in retail loans from Prudential Group in January.

PVFC was launched in 2006 by the U.K.-based group as the first foreign non-bank financial institution licensed for consumer financing in Vietnam. It was also the country’s fourth-largest consumer finance company by outstanding loan balance.

Shinhan Financial plans to improve PVFC’s financial soundness through the capital offering.

Using the money, Shinhan Card plans to shift high interest loans carrying double-digit rates PVFC borrowed from Prudential Vietnam Assurance Private Limited, another Prudential Group’s subsidiary, into low interest loans with single-digit rates.

“Shinhan Financial Group Chairman Cho Yong-byung aims to strengthen not only the banking sector but also the non-banking sectors in Vietnam to amplify synergy between its subsidiaries there,” said a Shinhan Financial official said.

“PVFC will be a valuable asset in Shinhan’s business network _ it will greatly contribute to the group’s earnings in the country.”

PVFC has seen stable earnings growth for three years, posting 63.7 billion won in 2015, 77.2 billion won in 2016 and 82 billion won last year. Its market share has reached nearly 10 percent.

The move is also believed to be seeking to widen the gap in its fierce competition against other Korean card firms.

Lotte Card was approved by the Vietnamese government to acquire Techcom Finance, another local Vietnamese financial firm specializing in retail loans, in March.

Hana Card also concluded an MOU with the National Payment Corporation of Vietnam (NAPAS) and payment solution provider Alliex to expand its payment settlement services business in the month.

Although facing tough challenges from peer Korean financial firms, Shinhan is still said to be the most influential foreign financial firm in Vietnam.

The group’s banking subsidiary Shinhan Bank established its local corporate body Shinhan Vietnam Bank in 2009, and in the retail finance sector acquired Australian-based banking firm ANZ Vietnam under Cho’s leadership last April.

Shinhan Vietnam Bank is now the largest foreign bank there with assets worth a combined total of $3.3 billion. It also has about 900,000 customers.

Vietnam: Floods kill 13, leave 3 missing

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Flash floods and landslides triggered by incessant rainfall in Vietnam’s northern and central regions over the past few days have killed 13 people and left three missing, the country’s Central Steering Committee for Natural Disaster Prevention and Control said on Monday.

As of Monday morning, floods claimed nine lives and left three people missing in central Thanh Hoa province. Meanwhile, floods and landslides killed one person each of the four northern provinces of Hoa Binh, Yen Bai, Son La and Lang Son, Xinhua reported.

The floods and landslides also destroyed 364 houses, damaged over 6,523 hectares of rice and other crops, killed 512 cattle and 56,367 fowls, and damaged 963 hectares of aquaculture ponds, 620 meters of dykes and 6,174 meters of canals, said the committee.

Natural disasters, mostly typhoons, floods and landslides, killed or left missing 153 people and injured 119 others, and caused property losses of over 7,000 billion Vietnamese dong (304.3 million U.S. dollars) in the first eight months of this year, according to Vietnam’s Ministry of Agriculture and Rural Development.

Sri Lanka gets closer to Vietnam

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Sri Lanka is strengthening relations with Vietnam and the Association of South East Asian Nations with Prime Minister Ranil Wickremesinghe due to address a World Economic Forum regional meeting in Ha Noi shortly, officials said.

According to a report on EconomyNext, the successful completion of bilateral political consultations in February 2018 acted as a catalyst for future enhancement of relations Plantations Industries Minister Navin Dissanayake said addressing diplomats in Colombo at an event to mark the National Day of Vietnam, which falls on September 02.

“The bilateral relations between Sri Lanka and Vietnam are multifaceted and encompass the economy, agriculture, fisheries and education,” Minister Dissanayake said.

Vietnam’s Ambassador to Colombo Pham Thi Bich Ngoc said there was an opportunity to elevate bilateral relations to a higher level and co-operate in regional and international platforms for peace and stability.

Prime Minister Ranil Wickremesinghe had accepted an invitation from Vietnam to address the World Economic Forum – ASEAN which will be held in Ha Noi from 11 to 13 September 2018, the second time in as many months that he is participating in a forum in the country.

“It will be an opportunity to discuss innovative and creative ideas and strengthen regional economic relations with ASEAN,” Minister Dissanayake said .

Sri Lanka had established diplomatic relations with Vietnam in 1970.

Last week Prime Minister Wickremesinghe was in Ha Noi to address a maritime forum, the Indian Ocean Conference 2018.

Vietnam has been integrating with world for several decades since the Đổi Mới (renewal) reforms started in 1984.

“Vietnam today is a highly open and diverse economy,” Ambassador Ngoc said. “Our Gross Domestic Product growth has been sustained at a high rate. The living standards of the people have been significantly improved.”

Vietnam’s economy grew 7.08 percent in the first six months of the year, data from the General Statistics Office of Vietnam reported. In 2017 the economy grew 6.8 percent.

Vietnam is a chosen destination for foreign investment (FDI) and tourism with Sri Lankan visitors also increasing to the country Ambassador Ngoc said.

Up to August 2018, 13.4 billion US dollars of new FDI projects had been signed with Japan accounting for 5.8 billion dollars and Korea 5.8 billion dollars. Existing companies had applied to invest a further 5.5 billion dollars totaling 19.0 billion dollars.

Realized investments up to August 20, was 11.25 billion US dollars, up 9.2 percent from a year earlier.

In 2017, foreign companies applied to invest 29.5 billion US dollars in Vietnam and realized inflows were 17.5 billion US dollars.

Several Sri Lankan firms had already invested in Vietnam, including in apparel.

Minister Dissanayake said Sri Lanka had a stable investment environment and Vietnamese firms could look at sectors like tourism.

In the first 7 months of 2018, Vietnam welcomed 9.08 million tourists, up 25 percent from a year earlier with 1.9 million coming in July alone. Sri Lanka received 2.1 million foreign visitors in the 12-months to December 2017. In 2017 Vietnam received 12.9 million visitors, up 29 percent from a year earlier.

Up to August exports from Vietnam grew 14.5 percent to 155.4 billion US dollars and imports grew 11.5 percent to 152.6 billion US dollars. In 2017 exports grew 21 percent to 213 billion US dollars. Vietnam has a population of 93.7 million people.

Bears rescued from life of torture at Vietnam bile farm

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Five Asian black bears have been rescued from a bile farm in southern Vietnam after 21 years in captivity and given a new home in a sanctuary more than a thousand miles away.

Named LeBon, Kim, Mai, Star and Mekong, they were among up to 800 bears that are kept on Vietnamese farms for their bile. According to Animals Asia, the charity that oversaw the rescue, the process used to extract the bile is both gruesome and painful, involving either a “free drip” method in which the bear, kept in a tiny cage, has a hole cut in its gall bladder, or the insertion of a permanent catheter. The Times reports.

The practice has been banned in Vietnam since 2005 but farmers are allowed to keep the animals

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UNIQLO to be launched in Vietnam in fall 2019

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Launching in Vietnam next year will mark further growth for the brand of UNIQLO in Southeast Asia.

Japanese apparel retailer UNIQLO has just announces its launch in Vietnam on August 30, with plans to open its first store in Ho Chi Minh City during the fall of 2019. UNIQLO will begin recruiting local talent as it prepares to open its store in one of the region’s most exciting, high-growth economies.

“Our entry into Vietnam is an exciting milestone for everyone at UNIQLO. Southeast Asia has been an important driver of growth for us, and we are pleased and optimistic about this opportunity to be a part of such an exciting economy and retail market,” said Tadashi Yanai, chairman, president, and CEO of Fast Retailing Co., Ltd., the parent company of UNIQLO. “We look forward to introducing UNIQLO and our high-quality, affordable LifeWear apparel line in Vietnam, and to making a positive contribution to the economy and communities where we operate.”

LifeWear is UNIQLO’s commitment to creating perfect clothing that meets the needs of everyone’s daily lifestyles. High-quality, functional, affordable, and constantly evolving, LifeWear is available in a variety of colors and styles for people of all ages.

The first UNIQLO store will be located in Ho Chi Minh City, and the company will focus on establishing its presence and brand in this region before considering other areas. UNIQLO will introduce its UNIQLO Manager Candidate (UMC) programme in Vietnam soon, as part of its market preparations.

More details regarding UNIQLO’s first store in Vietnam will be announced at a later date.

UNIQLO is a brand of Fast Retailing Co., Ltd., a leading global Japanese retail holding company that designs, manufactures, and sells clothing under seven main brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princesse tam.tam, Theory, and UNIQLO.

With global sales of approximately JPY1.8619 trillion ($16.87 billion) for the 2017 fiscal year ending on August 31, 2017, Fast Retailing is one of the world’s largest apparel retail companies, and UNIQLO is Japan’s leading specialty retailer with around 2,000 stores in 20 markets worldwide.

Nguyen Huong report on VIR

Vietnam’s football coach opens up opportunities for South Korean businesses

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The national team’s success in football-crazy Vietnam is proving beneficial for South Korean firms in the country.
“Even in the first meeting, clients first say, ‘Thank you,’ which makes business a lot easier,” says Chung Jae-woo, who’s with the Pohang Iron and Steel Company (POSCO) Vietnam.

Chung said getting new clients is a lot easier now thanks to the rising popularity of the Vietnamese men’s football team’s South Korean coach, Park Hang-seo.

Park’s popularity has soared after the nation’s football team defied expectations and predictions by sport analysts to reach the Asian Games semifinal on Wednesday.

This has prompted many South Korean businesses in Vietnam to deploy new marketing tactics, the Korea Times reported Thursday.

After Vietnam beat Syria 1-0 in quarterfinal on Monday, thousands of people took to the streets of Hanoi to celebrate the win. Park Hang-seo, unsurprisingly, took the spotlight and was feted as a national hero for having guided the team to victory.

“I’m so pumped up, I kept crying all night long,” football fan Nguyen Hoang Ha posted on Facebook. “Thank you Mr. Park Hang-seo.”

“Park Hang-seo is Vietnam’s football wizard. He changed players and predicted the game so sharply,” said another Facebook post by Nguyen Son.

The public’s love for Park has served to deepen the Vietnam-South Korea bond and opened up new marketing venues for businesses.

“Football is the culture and life of Vietnamese,” said Lee Joo-hyun from the Korea Trade-Investment Promotion Agency’s (KOTRA) Vietnam office. He also noted that companies are looking to use the team’s success as well as that of their coach’s rising popularity as a marketing tool.

Car maker Hyundai Motors is not overlooking this golden marketing opportunity. It plans to boost the brand’s image even further by “sponsoring Park,” an unnamed Hyundai Motors official said.

“This is an opportunity that can’t be missed,” the official added.

In March, conglomerate Samsung Electronics also appointed Park Hang-seo as the brand ambassador for the firm’s Vietnamese branch.

On Wednesday, despite great efforts, Vietnam lost against South Korea 3-1 in the semifinal for the 2018 Asian Games in Indonesia.

But Vietnam still has a chance to bring home the bronze medal as it faces off the United Arab Emirates on Saturday afternoon.

The Asian Games is the world’s second biggest multiple sports event, after the Olympics. This year’s edition, held in Jakarta and Palembang in Indonesia, has drawn 16,000 competitors and officials from 45 nations.

Watch how Vietnamese football fans react to the semifinal’s result.

Phan Anh report on Vnexpress

New expressway cuts Hanoi-Ha Long travel time by half

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The renowned Ha Long Bay is just an hour and a half away from the capital city starting Saturday.

The Ha Long-Hai Phong Expressway, which opened Saturday after three years of construction, will also reduce travel time between Ha Long and the northern port city of Hai Phong from two hours to 30 minutes.

Prime Minister Nguyen Xuan Phuc, who attended the expressway’s opening ceremony, said the new expressway will promote connectivity in the Hanoi-Hai Phong-Ha Long triangle and open up opportunities for socio-economic development in the area.

Built at a cost of VND13 trillion ($556 million), the 24.6-kilometer (15.3-mile) Ha Long-Hai Phong Expressway connects National Highway 18 in Ha Long’s Dai Yen Ward with the Hanoi-Hai Phong Expressway in Hai Phong’s Hai An District.

While most of the road was constructed using the state budget, the Hai Phong end of the expressway, including a VND7.27-trillion bridge across the Bach Dang River, was built using the build-operate-transfer (BOT) model. The four lane, 5.4-km long bridge, with a 3.5-km span above the river, is 25 meters wide. It is designed with three H-shaped towers representing Hanoi, Hai Phong and Ha Long.

Phuc said the Bach Dang Bridge was a proud breakthrough for Vietnam, being the first cable-stayed bridge made in the country.

Work on the Ha Long-Hai Phong Expressway began in September 2015 and was scheduled for completion last March, but was delayed twice. With its completion, the Ha Long-Hanoi commute has been reduced by 50 km to 130 km, and the Ha Long-Hai Phong route has been cut down from 75 km to just 25 km.

The expressway is among a series of infrastructure projects aimed at boosting the tourism industry.

Others include an international airport in Quang Ninh’s Van Don District and a new expressway between Ha Long and the proposed special economic zone in Van Don, both of which are scheduled for completion later this year.

Quang Ninh welcomed 7.5 million travelers in the first half of 2018, including 2.46 million foreigners, up 14 percent from a year ago. Tourism revenues for the period rose 31 percent year-on-year to VND12.8 trillion ($546.7 million).

The Ha Long-Hai Phong Expressway, which opened Saturday after three years of construction, will also reduce travel time between Ha Long and the northern port city of Hai Phong from two hours to 30 minutes.

Prime Minister Nguyen Xuan Phuc, who attended the expressway’s opening ceremony, said the new expressway will promote connectivity in the Hanoi-Hai Phong-Ha Long triangle and open up opportunities for socio-economic development in the area.

Built at a cost of VND13 trillion ($556 million), the 24.6-kilometer (15.3-mile) Ha Long-Hai Phong Expressway connects National Highway 18 in Ha Long’s Dai Yen Ward with the Hanoi-Hai Phong Expressway in Hai Phong’s Hai An District.

While most of the road was constructed using the state budget, the Hai Phong end of the expressway, including a VND7.27-trillion bridge across the Bach Dang River, was built using the build-operate-transfer (BOT) model. The four lane, 5.4-km long bridge, with a 3.5-km span above the river, is 25 meters wide. It is designed with three H-shaped towers representing Hanoi, Hai Phong and Ha Long.

Phuc said the Bach Dang Bridge was a proud breakthrough for Vietnam, being the first cable-stayed bridge made in the country.

Work on the Ha Long-Hai Phong Expressway began in September 2015 and was scheduled for completion last March, but was delayed twice. With its completion, the Ha Long-Hanoi commute has been reduced by 50 km to 130 km, and the Ha Long-Hai Phong route has been cut down from 75 km to just 25 km.

The expressway is among a series of infrastructure projects aimed at boosting the tourism industry.

Others include an international airport in Quang Ninh’s Van Don District and a new expressway between Ha Long and the proposed special economic zone in Van Don, both of which are scheduled for completion later this year.

Quang Ninh welcomed 7.5 million travelers in the first half of 2018, including 2.46 million foreigners, up 14 percent from a year ago. Tourism revenues for the period rose 31 percent year-on-year to VND12.8 trillion ($546.7 million).

Source: Vnexpress

ASIAD 2018: Vietnam stands at 17th place in medal tally

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The Vietnamese delegation pocketed a total of 4 gold, 16 silver and 18 bronze medals, finishing 17th in the tally of the 2018 Asian Games (ASIAD) in Indonesia by 9.30pm on September 1.
Vietnam bagged one silver medal in the women’s sepak takraw on September 1, the last official competition day of the continental sporting event.

The same day, Vietnam missed the bronze medal in the men’s football after losing to the United Arab Emirates (UAE).

The game went straight to a penalty shootout after the normal time ended with a 1-1 draw. Vietnam suffered a 3-4 defeat on the penalty round.

The Vietnamese delegation consists of 523 people, including 352 athletes. The four golds of Vietnam were in pencak silat (men’s tanding 70-75 kg and 90-95 kg), women’s long jump and women’s lightweight quadruple sculls categories.

The Asian Games is the world’s second biggest multiple sports event after the Olympics. This year’s edition, held in Jakarta and Palembang of Indonesia, has drawn 16,000 competitors and officials from 45 countries and territories.

At the last ASIAD in 2014, Vietnam won one gold, 10 silver and 25 bronze medals, ranking 21st in the overall medal tally.

Source: VNA

Thousands of fans welcome the Viet Nam team home

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Despite the rain, thousands of Vietnamese fans welcomed the Việt Nam sports delegation home from the Asian Games (ASIAD) 2018 in Indonesia, including the Việt Nam Olympic football team. The athletes landed at Nội Bài International Airport in Sóc Sơn District, Hà Nội this afternoon.

This year’s ASIAD saw the successful participation of Việt Nam, bringing home four gold medals, 16 silvers and 18 bronzes, ranking 17th in the medal tally.

Fans head to Nội Bài International Airport to welcome the Việt Nam team. – Photo laodong.vn

The Việt Nam Olympic team were praised for reaching the bronze-medal football match for the first time ever. Although the team lost to the United Arab Emirates (UAE) 3-4 in a penalty shootout, their performance was celebrated by fans and the boys returned to a hero’s welcome.

Việt Nam’s journey to the competition’s top four teams gives hope for the team to advance further at the continental level.

A fan supporting defender Đoàn Văn Hậu. – VNA/VNS Photo

Earlier, at ASIAD 2014, Việt Nam’s football squad were knocked out in the round of 16 after losing to UAE 1-3, while the Việt Nam delegation won just one gold medal, 10 silvers and 25 bronzes to rank 21st in the overall medal tally.

A Việt Nam Airlines flight is showered with water to greet the Việt Nam team.– VNA/VNS Photo

After departing Nội Bài International Airport, the Việt Nam team moved to Hà Nội-based Mỹ Đình National Stadium to take part in a ceremony honouring the athletes for their achievements in Indonesia.

Fans driving to Nội Bài International Airport to welcome the Việt Nam team. – VNA/VNS Photo

The ceremony will take place from 5pm to 7pm today.

A Vietnamese fan with his loudspeakers. – Photo danviet.vn

Vietnamese fans will have the opportunity to see the outstanding athletes and players of the Việt Nam Olympic team and enjoy art and cultural activities.

Fans prepare to celebrate.– VNA/VNS Photo

The celebration aims to encourage athletes and trainers participating in ASIAD and is also a cultural and sports event of great significance to mark the country’s National Day (September 2).

Source: VNS

 

You are in Saigon? There will be fireworks show near you tonight

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There will be a fireworks show on tonight over the Saigon River in Ho Chi Minh City to mark National Day, September 2.

Fireworks will be organised at the Saigon River area in District 2 and Dam Sen Park in District 11 from 9 pm to 9:15 pm on September 2.

According to Dtinews, the event, subsidised by the private sector, will be televised on HCM City Television.

Fireworks will light up the sky of Saigon

To ensure the safety, the Department of Transport will restrict vehicles on some routes around the Saigon River area.

Motorbikes are not allowed to use part of Vo Van Kiet Street which runs from Ky Con Street to Saigon River Tunnel and the section of Mai Chi Tho Street from Saigon River Tunnel to Nguyen Co Thach from 8 pm on September 2 to 4 am of the following day.

From 8 pm to 9:30 pm on September 2, all means of transport are banned from Nguyen Tat Thanh, Ton Duc Thang, Hai Trieu, Ham Nghi and some other streets which are near Saigon River Tunnel.

Heavyweight stocks dent market

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Shares declined on Friday on both national stock exchanges before the National Independence Day Holiday, led by heavyweight stocks.

The VN-Index on the Ho Chi Minh Stock Exchange started to slide in the early afternoon session after surpassing the 1,000-point mark in the morning. It closed down 0.85 per cent at 989.54 points.

Ending Friday, the southern benchmark index gained 0.25 per cent for the week

On the Hà Nội Stock Exchange, the HNX-Index gave up 0.7 per cent to end Friday at 112.79 points, but it increased over 1 per cent against the previous week.

Liquidity decreased slightly from Thursday’s levels, with a total of 228.6 million shares worth VNĐ5.45 trillion (US$233 million) traded on the two markets.

Losses of Vinhomes (VHM) and other shares in the VN30 (tracking the top 30 largest shares by market value and liquidity on the Ho Chi Minh Stock Exchange) weighed on the whole market.

Vinhomes rose strongly in the morning trade but unexpectedly lost 3.2 per cent in the afternoon.

Other losers included big companies in the banking-finance, energy and retail sectors, such as Vietcombank (VCB), BIDV (BID), Vietinbank (CTG), Military bank (MBB) Saigon Securities Inc (SSI), PV Gas (GAS), Mobile World Group (MWG), Vincom Retail (VRE) and Phú Nhuận Jewelry JSC (PNJ) with losses of between 1.5 per cent and 2.4 per cent each.

On the other end of the spectrum, gains of some blue chips cushioned the market, especially Bình Minh Plastics (BMP), up 3.7 per cent; Petrovietnam Fertiliser & Chemicals Corporation (DPM), up 2.6 per cent; Vietnam Prosperity Bank (VPB), up 1.6 per cent; and insurer Bảo Việt Holdings (BVH), up 1 per cent.

“After today’s decline, the VN-Index is expected to continue the ebb and flow after the market reopens after the holiday,” said Khiếu Trọng Huy, a stock analyst at Bảo Việt Securities Co.

“Possibility of rising trade tensions between the United States and China after September 6 will pose risks to the Vietnamese market,” Huy wrote in a daily market report yesterday.

Shares in most major markets in Asia underperformed on Friday following a report that US President Donald Trump was planning to step up a trade war with Beijing.

Foreign traders concluded Friday as net buyers with net buy value of VNĐ4 billion. However, their buys focused on the Hà Nội exchange with net value of VNĐ31 billion. They were net sellers in HCM City, responsible for net sell value of VNĐ27 billion.

The stock market will close on Monday and re-open on Tuesday.

Source: VNS

Big foreign investments forecast for Vietnam in 2018

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Free trade agreements, high economic growth and low labor costs will continuously help Vietnam lure big FDI in the remaining months of the year after reporting a whopping US$22.94 billion in the first seven months of the year.

Many investors from various countries, especially Japan, Korea and Singapore, have so far also expected to increase their investments in Vietnam.

A recent study of Hong Kong and Shanghai Banking Corporation Limited (HSBC) showed that overall investment into ASEAN in the future is expected to rise amongst Singapore-based companies ,with Vietnam to be a key beneficiary.

According to the study, which sought the insights of 1,036 Singapore-based companies into their interest in overseas expansion, Vietnam’s growing consumer market and overall investment climate are driving the expansion plans of Singaporean investors, who were Vietnam’s third largest investor in the first seven months of 2018 with US$2.73 billion.

Asia Briefing, a subsidiary of Dezan Shira & Associates, which provides business intelligence, due diligence, and legal, tax and advisory services throughout Vietnam and the Asian region, also forecast that Vietnam will continue to remain a priority for investors in 2018.

Opportunities not only exist in the traditional sectors such as garments, footwear, and electronics but also in renewable energy projects, high-tech agriculture, and other high-tech industries, according to Asia Briefing.

“Investors will continue to find the traditional export-oriented sectors such as electronics, garments, and footwear to be attractive. In addition to the export-oriented sectors, the domestic market also provides an opportunity for investors. With growing urbanization and rising incomes, industries such as education, real estate, retail, food & beverages, e-commerce, and FMCG will continue to grow in 2018,” said Asia Briefing. “The aforementioned industries will continue to be a priority for the government in the short term.”

High prospects ahead

The signing of the Europe-Vietnam Free Trade Agreement (EVFTA) due this year is one of key factors helping Vietnam attract foreign investors, especially in the textile, garment and footwear industries.

According to Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang, the EVFTA will continue to create great attraction to foreign investors in Vietnam’s garment and textile industry.

The EVFTA is the driving force to help Vietnam emerge as one of the top spots in the world for investors in the garment and textile industry, Giang said, adding the industry lured US$2.8 billion of FDI capital in the first half of this year, bringing the total FDI in the sector to nearly US$17.5 billion.

Foreign investors are flocking to Vietnam’s textile and industry as the EVFTA will offer ample opportunities for Vietnamese textile and garment products to ship to the European market thanks to tariff preferences.

According to EU-MUTRAP team leader Claudio Dordi, only ‘EVFTA originating’ products will benefit from preferential tariffs for a maximum of seven years after entry into force. Investors from other countries thus wish to relocate sufficient stages of textile and garment manufacturing to Vietnam to benefit from market access offered by the EVFTA.

Nguyen Thi Tuyet Mai, VITAS’s secretary general, said that traditionally, China, Taiwan (China) and South Korea lead the way as far as textile and garment projects implemented in Vietnam. However, Mai forecasts, South Korea is likely to pull ahead in the competition as besides the bilateral FTA with Vietnam, the country has also inked a cooperation agreement with the EU. When choosing Vietnam as a destination for investment, Korean investors will further enjoy the benefit.

The same trend will be also forecast for the footwear industry when more foreign investors will set up production bases in Vietnam to capitalize on huge export potentials from the EVFTA.

According to Lee Young Man, president of the Korean Footwear Association in Vietnam, investment flows from Korean footwear enterprises to Vietnam are expected to increase strongly once the EVFTA is signed.

Source: Hanoitimes

VinaCapital launches fund to foster regional tech startups

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Investment fund VinaCapital launched its $100 million venture capital arm on August 30, aspiring to build billion-dollar startups that can expand outside Vietnam.

The new fund, called VinaCapital Ventures, will invest between $2 million and $10 million per startup—starting with Logivan, a truck-hailing network, and FastGo, a ride-hailing application.

VinaCapital Ventures said it will work with local engineers, scientists, and innovators who have developed technologies that solve industry pain points and problems that are substantial enough to compel customers to adopt new technologies. Disruptive technologies that have the potential to create entirely new markets are another focus.

According to Khanh Tran, partner at VinaCapital Ventures, the fund will help startups develop into strong technology companies in Vietnam and assist them in building a regional presence. Specifically, the venture investor will offer capital, network, and mentorship.

“Thanks to our international network, we are also open to co-invest with other global investors,” said Tran. He cited Logivan as an example: VinaCapital Ventures collaborated with Ethos Partners and Insigna, both from Singapore, to pour $1.75 million into the truck hailing network.

It is noteworthy that investments from VinaCapital Ventures have an unlimited holding time, as the fund operates as a holding company. This is the main difference from VinaCapital’s first ventures fund called DFJ VinaCapital, which is required to exit a company within a certain time frame.

The ten-year-old DFJ VinaCapital previously invested in digital media firms Yeah1 Group, Chicilon Media, and Vietnam Online Network.

According to VinaCapital co-founder and CEO Don Lam, the new fund’s flexibility of divestments and longer investment horizon allow the investor to collaborate with startups more closely.

Earlier in August, VinaCapital announced its partnership with Zone Startups, an international programme run by Ryerson Futures to accelerate the growth of early-stage technology firms. Vietnam is the next destination for Zone Startups, after eight successful programmes in Canada and India.

Other local partners in the Zone Startups Vietnam project include UniBrand, TalentNet, and TTG Holdings.

Source: VIR

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