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Natural Beauty to announce 2018 Interim results

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Natural Beauty Bio-Technology Limited (“Natural Beauty” or the “Group”; Stock Code: 00157), a leading provider of professional skin-care and spa services in Greater China, announced today its interim results for the six months ended 30 June 2018 (the “Period”).

Financial and Operational Highlights:

Distribution channels

Income principally came from the Group’s distribution network, including spas and concession counters in department stores.
As at 30 June 2018, there were 1,042 spas, 15 concession counters and 1 medical cosmetology center.
A total of 17 new stores were opened and 51 stores were closed during the Period.

Research and Development

To constantly improve the quality of its existing products and develop new products, while collaborating with overseas skin-care companies on technological development.
Successful launch of a well-received new series of NB-1 Bright-Crystal target products generated sales of HK$33.2 million in the first half of the year, accounting for 17.7% of total value of product sales during the Period.
Sales of NB-1 branded products reached HK$101.7 million, accounting for more than 54.4% of total value of product sales.

Financial highlights

Revenue rose by 5.5% year on year to HK$193.7 million on the back of increased product sales.
Overall gross profit margin decreased to 70.8% mainly because the Group offered promotional discounts on its products and services during the Period.
Net profit for the Period was HK$29 million.
Basic earnings per share were 1.45 HK cents.
An interim dividend of 1.45 HK cents per share are recommended. Dividend payout ratio is 100%.

Ms. Yang Shu-Hwa, Interim Chief Executive Officer of the Group said, “Looking ahead, we will continue to develop our core business by accelerating the pace of opening new stores in fast-growing cities and by expanding our market coverage through such new sales channels as pharmacy chains and beauty stores. Also, the Group has started its high-tech skincare business to serve the middle-class and affluent consumers. The business provides solutions to minor skin problems by treating the cases with high-tech skincare devices and products. Following the launch of our first medical cosmetology center, the Group has tapped into a medical aesthetics market by offering professional medical aesthetic solutions. Leveraging our position as a leading skin care brand and spa operator in Greater China, we are moving ahead with the above-mentioned strategies for development so as to enhance our competitiveness and to generate good returns to shareholders.”

About Natural Beauty Bio-Technology Limited

Natural Beauty is a leading provider of beauty and spa services and products in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group engages in research, development, manufacture and sale of skin care, aroma-therapeutic and beauty products, which are marketed under the brand name “NB®”. The products are distributed through a distribution network of over 1,000 NB’s SPAs and concession counters in Greater China.

Media OutReach

Vietnam arrests exiles group member with weapons

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Police in Vietnam have arrested a man accused of being a member of a “terrorist” group and planning attacks in the country, the Ministry of Public Security said on Thursday.

In a statement, it said Le Quoc Binh, 44, was taken into custody early on Wednesday after entering Vietnam from Cambodia bringing a large number of weapons which he intended to carry out terrorist activities. Reporting by Khanh Vu; Editing by Mark Heinrich on Reuters.

It said Binh was a member of Viet Tan, a U.S.-based exiles group that Communist Vietnam regards as a “terrorist” body.

Police seized seven guns and 500 bullets after raiding Binh’s house in the central city of Quy Nhon, it added.

Binh’s family members and lawyer were not immediately available for comment.

Binh’s arrest came days after Vietnam ordered police and military forces in the capital Hanoi to prevent big gatherings or protests during its National Day holiday on Sept. 2.

Last week, a court in the southern commercial hub of Ho Chi Minh City jailed two Vietnamese-Americans accused of loyalty to the now defunct U.S.-backed state of South Vietnam and masterminding a series of bomb plots.

Police said the pair had planned more bomb attacks on public holidays. Vietnamese authorities said the two were acting on behalf of the “Provisional Government of Vietnam”, a California-based exiles organization also listed as a “terrorist” group by Vietnam.

South Vietnam ceased to exist when the Communist North won the Vietnam War in 1975.

Which is the solution to curb CO2 emissions from vehicles in Saigon?

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Air pollution in Saigon (Ho Chi Minh City) of Vietnam caused by vehicles has become even more serious than the level of pollution emitted by industrial zones, environmental experts say.

According to a report on VNS, the amount of carbon dioxide (CO2) emissions in the city is estimated to be 38.5 million tonnes per year, making up about 16 per cent of the country’s total.

Of the amount, CO2 emissions from automotive exhaust account for 45 per cent.

With such alarming figures, the city is seeking ways to urgently reduce CO2 emissions, particularly from automobiles and motorbikes.

In 2010, the city had 4.5 million motorbikes and 420,000 cars, but last year, the figure was 7.5 million motorbikes and 790,000 cars.

By 2020, the number of vehicles is expected tol surge by 30 per cent, with nearly nine million motorbikes and 800,000 cars.

Both cars and motorbikes discharge carbon monoxide (CO), CO2, nitrogen oxide (NOx) and sulphur oxide (SOx) into the atmosphere through exhaust pipes, flue gas stacks, and propeller nozzles.

To minimise pollution, the Ministry of Transport’s Vietnam Register has proposed raising the emission standard for cars to level 2.

Specifically, the department has proposed reducing the CO emissions ratio for vehicles using gasoline from 4.5 (level 1) to 3.5 (level 2), and HC (hydrocarbon concentration) from 1,200 parts per million (ppm) to 800 ppm.

Vehicles using diesel fuel will have to reduce emissions from the current 72 per cent HSU to 60 per cent HSU.

Obstacles

Lâm Đại Vĩnh, director of a private transportation company in HCM City, said that he supported changing the levels, but said it would affect residents and transport companies, especially small and medium-sized firms.

“I would have to renew about 30 per cent of my cars to meet the standards, and it will cost me a lot of money. I don’ have enough financial resources to change vehicles at the same time,” he said. “Most transport companies face the same problem.”

He said that authorities should help transport companies, especially SMEs, by remitting some taxes and fees when the companies upgrade their cars to meet new emission standards.

Besides the increased cost of upgrading their vehicles, the quality of domestic fuel is also an obstacle to raising emission standards.

Most of the local fuel used for vehicles does not meet the European emission standard of 4, which can damage vehicles that have been upgraded.

To meet the standards for better vehicles, the authorities should import fuel that will lower the costs of local companies, Vĩnh said.

Dr Phạm Xuân Mai, former head of the Traffic Engineering Department at HCM City Polytechnic University, said: “I estimate the cost for enterprises to buy vehicles that meet Euro emission standards 4 or more will increase at least 30 per cent. In developed countries, they have support policies to encourage people to purchase vehicles meeting new standards.”

Cars and trucks with expired registrations are also a significant contribution to air pollution in Ho Chi Minh City

The law stipulates that vehicles that transport goods cannot be used for more than 25 years after the date of manufacture. The time limit for buses is 20 years.

At the end of a vehicle’s legal life, car owners are supposed to go to their local registration offices where the paperwork can be revoked and the car destroyed.

Officials rely on a car owner’s goodwill to turn their cars in.

Most car owners do not want their cars destroyed and do not want to buy new ones. Besides, the fines for breaking the law are low, only VNĐ4-6 million (US$187-$280), according to a decree issued in 2013.

Many vehicles on the road are old and do not meet registration requirements, according to officials.

Experts have said that limiting the use of personal vehicles in the city is another way to protect the environment.

Solutions

Economist Lương Hoài Nam said the city should improve the public bus system as it steps up efforts to restrict the use of personal vehicles. The first subway line of the metro will not be available for another few years.

Worsening traffic congestion has been caused by poor management, short-term planning, and overloading of vehicles on most roads in the city, especially during rush hour, he added.

Nam said the city should improve road infrastructure and better manage urban planning, especially land use.

To do it effectively, the city should conduct research on consumer demand for travel, improve co-operation among agencies, and develop a master plan for traffic with a clear roadmap, he suggested.

Bùi Xuân Cường, director of the city’s Department of Transport, said the department was drawing up a plan that would include several solutions, such as a special consumption tariff and higher fees on personal vehicles, as well as an environmental fee to mitigate air and noise pollution caused by personal vehicles.

The department also plans to limit the number of newly licensed vehicles through an annual quota, and require each citizen who wants to buy a new motorbike or car to bid for vehicle ownership.

The number of personal vehicles has increased over the years.

In 2013, the city had 6.4 million personal vehicles, of which 5.87 million were motorbikes, accounting for 91.7 per cent of the total number of vehicles. The rest were automobiles.

By November 2014, the number of personal vehicles in the city had increased to 6.95 million, including 580,000 automobiles and 6.37 million motorbikes.

In 2016, the number of passenger trips on city public buses for the entire year was only 567 million, a drop of 1.39 per cent over the previous year, according to the Department of Transport.

As of the first quarter of last year, the city had nearly eight million vehicles, of which motorbikes accounted for 92 per cent of the total number. The number of motorbikes rose by 5.4 per cent compared to the same period last year.

By 2020, the number of vehicles in the city is expected to be around 10 million, including 800,000 cars. Most families in Ho Chi Minh City own at least one motorbike.

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Hẻm Hào Sĩ Phường: Exploring Saigon’s 100-Year-Old Alley

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In Saigon, most tourists spend their time navigating the wide boulevards and streets crisscrossing District 1. Few make it outside the city center and even less into the maze of alleyways that slice endlessly between homes, shops and restaurants.

There’s a certain irony to this; those who’ve come to find Saigon often miss it altogether. To explore the heart and soul of the city, it’s best to get lost in the alleys. Hẻm Hào Sĩ Phường in District 5 is the perfect place to start.

Life unfolds

Saigon’s alleys provide the opportunity to witness life unfold. There’s a definite authenticity that permeates through these narrow, dimly lit, passageways that’s unlike anything beyond the concrete walls. Mr. Hoạt has spent the majority of his life living on Hẻm Hào Sĩ Phường. It’s a place where he’s able to live a quiet, tranquil life away from the buzz of motorbikes and the frenetic pace of the city’s main streets.

If you take the time to explore this side of Saigon, you’ll come across children running freely, roosters fighting, or elderly men clipping their nails. Any and all parts of life exist here.

HAO SY PHUONG ALLEY-DISTRICT 5-SAIGON-VIETNAM

Chinese influence

The area around Hẻm Hào Sĩ Phường is Saigon’s Chinatown. The community is a mix of Vietnamese, Chinese and Chinese-Vietnamese. Everywhere you look, there’s influence from Vietnam’s neighbors to the north. In the alleyways, Chinese characters hang over restaurants serving dumplings, soup and pork. Buddhist prayer houses are visible through the open fronts of many of the homes.

A community

There’s little privacy down many of Saigon’s narrow alleyways. Hẻm Hào Sĩ Phường is no different. Neighbors hang clothes between each others homes. During the day, most doors remain open. Tiny coffee shops sit below and between apartments. It’s a place where everyone knows everyone else, and most families go back generations.

Time stands still

Saigon as a whole is changing more rapidly than most cities on earth. Every day, new glass structures break through the asphalt and shoot skyward. Almost everywhere you walk, the feeling of change hangs thickly in the air. However, down Hẻm Hào Sĩ Phường and many of the city’s alleyways, time seems to stand still. 100-year-old buildings stand proudly, tin roofs still roll through the Saigon heat, and signs of change are hard to find.

By Sam Roth, The Culture Trip

Instant noodle business rebounds after a slump

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Vietnam’s instant noodle market is once again positioning itself as a fertile ground for both local and foreign producers, as instant noodle sales recovered in 2017 after two consecutive years of decline.

Instant noodles consumption in Vietnam totalled at 5.06 billion packages last year, up 3 per cent against 2016 and ranking fifth in the world, trailing China, Indonesia, Japan, and India, according to the World Instant Noodles Association (WINA).

According to a report on VIR, Vietnam’s instant noodle market reached its peak between 2012 and 2014, with 5.2 billion packets sold. However, producers reported a slump in sales in the following three years.

Ho Chi Minh City-based Colusa-Miliket Foodstuff JSC, the owner of the Miliket brand, saw sales slip to their lowest point in 2016, at VND459 billion ($20.3 million). Meanwhile, Acecook Vietnam’s sales declined from VND13 trillion ($575 million) in 2013 to VND8 trillion ($354 million) in 2016.

Junichi Kajiwara, president of Acecook’s subsidiary in Vietnam, pointed out three reasons for the slump. Producers have yet to diversify their products to meet customer demands. There are misunderstandings about instant noodle among consumers. Last but not least, some producers are resorting to unhealthy competitive practices.

However, Kajiwara said, “Despite the intensifying competition in the food processing market, Acecook maintains a positive growth rate at 7 per cent annually.”

He noted that Acecook aims to increase its growth rate to 10-15 per cent per year. In the next five years, it will raise the per capita instant noodle consumption in Vietnam from 52 packs to 60 packs servings.

Masan Consumer, which produces the popular Omachi brand, also saw a recovery in its instant noodle sales up 16. 3 per cent in the second half of 2017, against the fall of 18.7 per cent in the first half of last year.

In the first half of 2018, the net revenue of Masan Consumer’s convenience food businesses including instant noodles and instant congee was up by 37 per cent to VND1.99 trillion ($88 million). Masan Consumer expects convenience food sales to reach approximately VND4.5 trillion ($199.1 million) in the 2018 financial year.

Local vs. imported noodles

Instant noodles have seen a recovery, but with slow increase. In reality, local instant noodle producers were engaged in a fierce war with increasing competition to launch new products, with added competition from imported noodles which are appealing to youthful tastes and trusted by homemakers.

According to economist Dinh The Hien, instant noodle is part of the fast-moving consumer goods (FMCG) market, in which the success of manufacturers depends on a large degree on good marketing strategies, financial potential, and selling prices. Both local and imported noodles have their own advantages.

Products are imported from Thailand, South Korea, and Japan, but Vietnamese people have a particular fondness for Thai products, including Thai food. In general, Thai instant noodle products suit Vietnamese people’s taste and are trusted by Vietnamese people due to their food safety hygiene, according to Hien.

Meanwhile, instant noodle products from South Korea and Japan are successfully penetrating the Vietnamese market thanks to good marketing strategies, namely telecommunications via music and movies.

“Despite the selling price of imported instant noodle being double or even triple of local products, the imports are favoured by the youth who want new experiences. Meanwhile, homemakers select imported instant noodle because they trust the quality of these products,” Hien said.

The biggest advantage of local products is their low cost, which appeals to almost all Vietnamese people. The higher production capacity leads to a lower selling price.

Hien said that local producers already have stable output and a large local consumption market as well as export markets, generally in Asia. They will run production lines at full capacity to ensure a lower cost for their products.

The cup noodle trend

In 2017, many Vietnamese consumers, especially in first-tier cities such as Ho Chi Minh City and Hanoi, began to favour cup noodle. The trend towards single households and the rising demand for convenience were the key drivers for the good performance of instant noodle cups, according to London-based market research firm Euromonitor International.

Moreover, the rapid development of convenience stores, which also offer free hot water and seats for consumers in their outlets, was another main factor supporting the growing preference for cup noodles.

To meet the rising trend, Acecook has developed a cup version of Hao Hao, an instant noodle brand that is highly popular in Vietnam, utilising a production facility known for advanced hygiene management and production efficiency.

Acecook sold the cup version for VND8,000 ($0.35) apiece in cities on a trial basis, to pave the way for nationwide sales starting in September 2016. The company maintains operations in Vietnam profitable thanks to its advanced plant in Ho Chi Minh City, which is capable of producing 420 cups per minute, or 40 per cent more than comparable production facilities in Japan.

According to Masan Consumer, its Omachi Cup brand is expected to contribute 10-12 per cent of Omachi’s revenue during the 2018 financial year. Sell-out growth was robust at 31 per cent during the first half of this year, while distributor inventory was lower at VND138 billion ($6.11 million) as of the end of June 2018.

Similarly, Nissin Foods also launched cup noodles in Vietnam in 2016 with a focus on supermarkets and convenience store chains. To scale up its operations in the country, the Japanese instant noodle giant has built a factory covering 60,000 square metres in the southern province of Binh Duong.

The throne of the market

After seeing the potential of the instant noodle industry, a number of local firms have also jumped into the sector to reap the benefits. At the peak of the instant noodle market in 2014, KIDO Group made its debut with the Dai Gia Dinh brand.

As a newcomer on the market, KIDO did not compete directly with other brands but focused on high-end products. It was confident of its success, owing to the company’s wide network with 300 distributors and 200,000 retail stores. However, since mid-2017, KIDO’s instant noodle products have almost disappeared from the market.

Explaining the failure of KIDO, Hien said that KIDO has advantages in the confectionary manufacturing sector. However, when it joined in the instant noodle sector, it had no good marketing strategies. In addition, it had not built a stable output, which is an important factor ensuring low costs for its instant noodle products.

Colusa-Miliket Foodstuff, once the king of Vietnamese noodles, ruling over about 90 per cent of the domestic market in the 1990s, is struggling to keep its head above the water amid the competition. The company now focuses on niche markets in rural areas for low-income people as well as distributing its products to hotpot restaurants.

Fabrice Carrasco, strategic initiatives regional director of Kantar Worldpanel Asia, an international company dealing in consumer knowledge and insights based on continuous consumer panels, told VIR that the competition to win market share is getting fiercer. All producers are making efforts to diversify their portfolio to meet all types of consumer demands, from diversifying flavours, ways of eating, and packaging types to the price tier. In particular, those who are already very strong in the economy price tier – under VND3,000 ($0.13) per pack – such as Kokomi, 3 Mien, and Gau Do brands now push mainstream products in a price range of VND3,000-5,000 ($0.13-$0.22). The move aims to leverage the upward trading trend and aid the fight against Hao Hao.

“On the other hand, the premium segment of VND5,000-10,000 ($0.22-$0.44) per pack is getting much more complex and exciting. There are 34 active brands in premium compared to 16 brands in economy and 19 in mainstream. Meanwhile, the super-premium range including the cup or bowl format and international products with prices over VND10,000 ($0.44) are emerging and getting consumers,” he added.

Locals spend billions on realty abroad

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Vietnamese buyers spent $3 billion on homes in the US between April 2016 and March 2017, showing the interest of Vietnamese people in this segment, but also raising the question of how such large amounts of money could be transferred abroad.

According to the US National Association of Realtors (NAR), this recently-released number propelled Vietnam into the top 10 of countries with buyers in US real estate during this one-year period. Bich Ngoc reported on VIR

According to Pham Do Chung Thuy, vice president and country treasurer of Bangkok Bank, the Vietnamese government has not outright banned transferring money abroad to buy homes, while detailed guidelines on how to transfer have not been released either.

“This is one of the challenges for buyers and bankers when they are involved in any case of money being transferred to buy property abroad,” Thuy said. According to her, a deal to buy property abroad is seen as an investment abroad and thus regulated by the Law on Investment, under which companies and individuals are permitted to set up an investment abroad. Bangkok Bank and other banks are using this law to support buyers.

Despite the foreseen risks of buying homes abroad, many Vietnamese people are still paying millions of dollars to buy homes in their dream countries such as the US and UK. For them, it frequently carries the purpose of a residence in addition to the purpose of an additional investment or having an accommodation for their children when they move abroad for education.

Lieu Nguyen, NAR president’s liaison to Vietnam, commented that there are ample business opportunities both with Vietnam and Vietnamese homebuyers in the US.

“Many Vietnamese people are currently investing in the San Francisco Bay area, southern California or Texas, because there are large Vietnamese communities in these locations,” said Nguyen.

Not only the US, but also properties in the region, including Thailand, are attracting rich Vietnamese homebuyers. This has prompted many foreign developers to take roadshows to Vietnam to introduce their projects to local buyers.

Just last week, Thailand-based Sansiri expanded its business to the Vietnamese market by announcing an exclusive strategic partnership with Denzell to sell their properties in Thailand to Vietnamese home-buyers.

Via Denzell, Sansiri will allow Vietnam-based clients to invest in international real estate and to easily gain access to Sansiri’s prominent projects in the most attractive destinations of Thailand such as Hua Hin, Phuket, Pattaya, Chiang Mai, and Bangkok.

According to Apichart Chutrakul, CEO of Sansiri, Vietnam is one of the most attractive overseas markets for international business. “With the rise of interest in Thai properties in the Asia Pacific region and the partnership with Denzell Vietnam, we want to build up and provide a good portfolio of projects to Vietnamese buyers,” Chutrakul said.

“The demand for homes in Vietnam is increasing, because the country now boasts the fastest-growing ultra-rich population in the world. Recent government efforts to equitise many state-owned enterprises, rapidly growing private equity investments, a 7.38 per cent year-on-year increase in GDP in the first quarter of 2018, and the presence of a range of large-scale companies like Samsung and Warburg Pincus also do their part to increase the demand,” he added.

According to Kingston Lai, CEO of Denzell Vietnam, Thailand is now considered a better option to invest due to fewer taxes, average prices starting from VND3 billion ($132,743), and great rental yields at 6 per cent per annum in Bangkok’s city centre and at 7-8 per cent per annum in holiday resort areas.

Sherri Anne Choo, a representative of Berkeley Group, told VIR on a recent trip to introduce London properties to Vietnamese home-buyers that the company is seeing stronger interest from Vietnam, especially from parents who wish to send their children to London for education and are looking to invest in properties at the same time.

“This is the main customer group for us. In Ho Chi Minh City, we are observing younger investors looking for properties with the goal of investment in capital growth and rental yields, and London offers a stable asset,” Choo said.

“We have brought along projects that have been successful for us so far due to their excellent location, especially their proximity to schools, good transport links, and safe neighbourhoods with convenient amenities that also present an investment opportunity. These are the most important factors for our Vietnamese clients,” Choo added.

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Chinese scramble to collect tea leaves, competing with local producers

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Tea producers complain that it has become difficult to collect raw materials because Chinese businesses have flocked to cultivation areas to collect tea leaves directly from farmers.

“Vietnam’s tea industry is now upset,” said Nguyen Thi Anh Hong, secretary general of the Vietnam Tea Association, at a recent annual meeting of the PPP Working Group under the Sustainable Development of Agriculture Vietnam (PSAV).

Vietnam has 130,000 hectares of tea growing areas, located in 34 cities and provinces nationwide. One hectare of ordinary tea can bring income of VND20 million and one hectare of high-yield tea VND60-90 million.

Hong said the exchange rate fluctuations do not have big impact on the tea industry, but it is becoming more difficult for tea companies to sell tea.

Also according to Hong, more Chinese businessmen from companies registered under Vietnamese names have appeared in material growing areas to collect tea and offer offer high purchase prices.

While domestic companies can pay VND20,000 for one kilogram of tea leaves, Chinese pay VND30,000.

Eighty percent of tea output is exported to many markets.

Chu Xuan Ai, director of the Tan Binh Technology & Trade Development, said his company exports products to Russia, where Vietnam’s tea is more expensive than China’s and is preferable. Some Chinese traders label their products as Vietnamese products to sell at higher prices in Russia.

Exports on the decrease

Reports showed that in July 2018, Vietnam exported 10,000 tons of tea products worth $18 million, raising the total export amount in the first seven months of the year to 67,000 tons, worth $109 million, a decrease of 12.9 percent in quantity and 9.3 percent in value compared with the same period last year.

Vietnam’s major markets in the first half of the year were Pakistan, which imported $29.9 million (32.8 percent of total exports), Taiwan $12.6 million (13.8 percent), Russia $11.1 million (12.1 percent).

Vietnam’s tea also went to China ($7.2 million), Indonesia ($4.4 million) and the US ($3.8 million).

The first half of the year witnessed the resurgence of Pakistan, the biggest export market for Vietnam. The exports in June 2018 rose sharply by 62.8 percent over May and 62.5 percent over June 2017.

As such, the exports to the market in the first half of the year increased by 1,300 tons, or 10.9 percent compared with the same period last year.

The Philippines is the emerging market for Vietnam. Its imports in the first half increased by 8.4 times and import value by 21.7 times in the first half, though the country is not among Vietnam’s 10 major markets.

Thanh Nam report on VNN

In the month of the ghost, pets ‘come back to life’

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In a Hanoi pagoda, people visit their dead pets with incense and trays of food favored by their erstwhile companions.
Do Uyen placed a fruit plate on an altar and lit an incense stick.

“Are you sad? Rest here and play with your friends,” she whispered.

The Hanoi resident is one of thousands of residents who have chosen the Te Dong Vat Nga pagoda as the final resting place for their pets. As of now, the pagoda is home to around 5,000 deceased pets.

Uyen is also among the pet owners who visit the pagoda on the 15th day of the seventh lunar month to pray for their dead pets.

The Te Dong Vat Nga pagoda was founded by Nguyen Bao Sinh, a poet residing in Hanoi. He had thought of a pet graveyard for a long time, but the idea only manifested into reality in 2000.

The seventh lunar month (August in solar calendar), also called the “month of the ghost” in Vietnam, is when people remember and pay tribute to those who have passed. Now, this extends to the pets they loved.

Sinh attributes the establishment of the pagoda to an early love and compassion for animals. “When I was young, I would bury even a dead butterfly,” he said.

The pagoda is meant to meet a spiritual need, he said.

“In the past, when we are too poor, no one buried a dead dog… But as our country develops, people have greater religious needs. Te Dong Vat Nga, according to Buddhist philosophy, means that people and animals are equal.”

Sinh said the month of the ghosts was the most crowded time of the year for the pagoda, attracting around 1,000 visitors.

This year, the praying ceremony is being held from 4 p.m. to 6 p.m to accommodate more people than usual. The pagoda prepares various offerings including corn, sweet potatoes, yams, and cereals. Most people bring the favorite food of their pets.

Ha Anh, 30, has two cats buried in this pagoda. She has brought some sausages, flowers and snacks. These are the foods her cats liked. With the incense aroma permeating the quiet ambience, the quiet ambience filled with incense aroma, Anh played the song “River flows in you” on her speaker.

“On rainy days, I used to sit by the window holding the cats in my lap, talking to them, listening to music together…. That feeling is still intact, as if it was just yesterday,” she said.

Each of the 5,000 plus pets who are interred here has a carefully constructed grave with an an incense bowl, a gravestone with inscriptions of the years of birth and death, and pictures of the pet.

There are two crematoriums in the pagoda where about 10 employees provide the final rite for cats and dogs.

Le Quang Huan, 56, a resident of the capital city’s Dong Da District, lost his pet last February. He visits the dog’s grave on the first and the 15th day of every lunar month. “Today, I have brought some fruit and candies that he liked the most,” he said.

Van, 43, a resident or Thanh Xuan District, became emotional as she mentioned her three pets. “I have three ‘friends’ here. One dog died in March 2018.

“I was passing by this area once and heard about the pagoda, so I have them here. Today, when I see their pictures, I am moved,” she said, eyes welling up with tears.

Vu Van report on Vnexpress

Feasibility report ready for Vietnam’s $58 billion high-speed railroad

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Vietnam’s north-south high-speed railway is expected to cost $58 billion, according to a feasibility report released at a meeting Tuesday.
The 1,545-kilometer route from Hanoi to Ho Chi Minh City will have double standard-gauge tracks of 1.435-m width and 23 stations, according to a consultancy consortium comprising Vietnamese firms TEDI, TRICC and TEDIS.

It will adopt the distributed traction technology used by Japanese high-speed trains.

Sixty percent of the tracks will be on viaducts, 10 percent underground and 30 percent on the surface, completely protected by fencing and without a single crossing.

Two sections – from Hanoi to the central city of Vinh and from the central city of Nha Trang to HCMC – will be built first in 2020-2030 at a cost of $24 billion, and commercial operations are likely to begin in 2032.

All sections are expected to be completed and operational by 2040-2045. Transport time from Hanoi to HCMC will be eight hours, while the current train takes 24 hours.

The speed of the trains on the route would determine the attractiveness of the project, the report said, explaining that if it runs at 200 kilometers an hour, it would only account for 2.7 percent of the transportation share on the Hanoi – Nha Trang section.

But if it increases to 350 kilometers, the share could reach 14 percent and the railroad could compete with airlines, it said.

The proposal is for trains to run at 160-200 km speed after the first section is complete, and 350 km when the entire project is finished.

At the meeting, Deputy Minister of Transport Nguyen Ngoc Dong said this feasibility report would be considered by authorities before being scrutinized by a European consultancy.

“The transport ministry will invite bids to select that consultancy.”

Efficiency unclear

Experts at the meeting said the consultants need to make the projects’ financials clear.

It should be divided into smaller sections to improve efficiency instead of the three large sections proposed now, Dr Nguyen Ngoc Long, deputy chairman of the Vietnam Bridge and Road Association, said.

“Whatever option is selected, the infrastructure must allow a speed of 350 kilometers an hour.”

Vu Hoai Nam, head of the urban railway faculty at the National University of Civil Engineering, said the feasibility report does not have a risk analysis.

“If there is no detailed analysis of the ability to recover the investment, clearance and exchange rate fluctuations, the risk will be high.”

The railroad would impact the passenger shares of airlines, putting pressure on the economy, and that should be taken into account, he added.

Revived

The north-south high-speed railroad was recently revived after being rejected by the National Assembly in 2010 due to its $56-billion price tag, which was half of Vietnam’s GDP then.

If approved by the government now, it will be submitted to the house again next year.

Experts said it might be more favorably viewed by the NA as well as the public due to Vietnam’s better financial position and greater demand for advanced infrastructure.

The existing 3,000-kilometer railroad network has not received any major investment since it was built 140 years ago, and does not have the capacity for high speeds.

Investment in railways currently accounts for only one percent of the transportation sector’s total budget.

The NA approved a plan earlier this month to upgrade it at a cost of $300 million.

Doan Loan, Dat Nguyen report on Vnexpress

Bad debts landscape at small banks

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There has been great variations in small-scale banks’ bad debts performance in the first half of the year, with some showing great improvements, while others struggle to cope.

According to VIR, the total bad debt volume of Ho Chi Minh City-based NamA Bank fell to VND391 billion ($17.3 million) by the end of June 2018, taking a 44.7 per cent plunge compared to the VND708 billion ($31.3 million) earlier this year, according to the bank’s financial statement.

Similarly, its bad debt ratio slid to 0.95 per cent from 1.95 per cent early this year.

Falling bad debts led to a sharp rise in the bank’s first half pre-tax profit, which touched VND335 billion ($14.8 million), three times as much as in the corresponding period of 2017.

NamA Bank is also the first bank reaching its full-year profit target, which was set at VND320 billion ($14.2 million).

By the end of June 2018, the total bad debts volume at BacA Bank amounted to VND436 billion ($19.3 million), making up 0.73 per cent of the bank’s total outstanding loan balance.

Its provisioning costs in the first six months shed 15 per cent on-year to VND210 billion ($9.3 million), leading to a 47 per cent jump in the bank’s total consolidated pre-tax profit which surpassed VND434 billion ($19.2 million), equal 47 per cent of the full-year target.

Also during the period, privately-held Kien Long Bank succeeded in tackling nearly VND150 billion of bad debts it had earlier sold to state-owned Vietnam Asset Management Company (VAMC). The bank had then posted VND121 billion ($5.4 million) in pre-tax profit, fulfilling 30 per cent of the year’s plan.

Apart from banks that saw positive developments in their bad debts, several other banks reported a worsening situation.

Bad debt volumes at VietBank rose sharply from VND387 billion ($17.1 million) early this year to VND547 billion ($24.2 million) by the end of June 2018. Its bad debt ratio rose from 1.35 to 1.73 per cent during the period.

A typical case of sharply rising bad debts among banks of modest size was Saigon Bank whose bad debts ratio surpassed 6 per cent at the end of June 2018, while the limit set by the state is 3 per cent.

Similarly, PG Bank saw a 12.9 per cent jump in its bad debts volume in the first half, which touched VND780 billion ($34.5 million) as of June 30, 2018.

Its bad debt ratio then inched up from 3.23 per cent earlier this year to 3.75 per cent by the end of the second quarter. PG Bank is in the process of merging with Ho Chi Minh City’s major commercial lender HD Bank in a deal which is expected to be wrapped up this year.

Since its establishment in October 2013 to the end of 2017, VAMC, dubbed as Vietnam’s bad debt bank, succeeded in recouping about VND81.5 trillion ($3.6 billion) of bad debts out of the VND307.9 trillion ($13.6 billion) total principal bad debt volume.

During the period, VAMC bought 26,221 debts of 16,269 customers of credit institutions.

to a 47 per cent jump in the bank’s total consolidated pre-tax profit which surpassed VND434 billion ($19.2 million), equal 47 per cent of the full-year target.

Apart from banks that saw positive developments in their bad debts, several other banks reported a worsening situation.

Why a village in New Zealand is trying to ban all cats

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A small village on the southern coast of New Zealand is planning to implement a radical plan to protect its native wildlife: ban all domestic cats.

Under the initiative, proposed by Environment Southland, cat owners in Omaui will have to neuter, microchip and register their moggies with local authorities.

After their pet dies, cat lovers in the community will then not be allowed to get any more.

It sounds extreme, but it may be something more communities should be considering: after all, cats are responsible for the death of billions of birds and mammals each year – and, according to some, it is all our fault.

Dr Peter Marra, the head of the Smithsonian Migratory Bird Centre, has authored journals and books on the issue.

Contrary to preconceptions about him, he insists he is not anti-cat or against cat ownership.

“Cats make wonderful pets – they’re spectacular pets! But they shouldn’t be allowed to roam outside – it’s a really obvious solution,” he told the BBC.

“We would never let dogs do that. It’s about time we treat cats like dogs.”

In Omaui, officials say the measure is justified because cameras have shown roaming cats preying on birds, insects and reptiles in the area.

“So your cat can live out its natural life at Omaui happily doing what it’s doing. But then when it dies, you wouldn’t be able to replace it,” bio-security operations manager Ali Meade explained.

Under the plan, anyone not complying would receive a notice, before officials would remove the pets – but only as an “absolute last resort”.

The initiative is part of the regional council’s proposed regional pest management plan, which was opened for consultation on Tuesday.

John Collins, chairman of the Omaui Landcare Charitable Trust, championed the ban to protect “high-value” nature reserves there.

‘We’re not cat haters, but we want our environment to be wildlife-rich,” he said, the Otago Daily Times reports.

How big a problem are cats?

The debate about cat populations and local eco-systems is not unique to Omaui.

Conservation scientists have long warned about the impact of feral and outdoor cats on the global eco system – and they’ve been ranked among the 100 worst non-native invasive species in the world.

Dr Marra believes cat-owners need to take more responsibility for their animals — Source: TIM ROMANO/SMITHSONIAN CONSERVATION BIOLOGY INSTIT

Dr Marra says 63 species extinctions around the world are now linked to the booming cat populations. The problem is exacerbated in areas with very sensitive eco-systems, like New Zealand.

“It sounds extreme,” he says. “But the situation has got out of control.”

He believes cat-lovers around the world need to embrace a “different mind-set” toward the animals. He believes they should be adopted where possible, then neutered and exercised at home using toys, or in a controlled environment – for example, on a leash.

“This predicament is not the fault of cats – its humans’ fault,” he insists.

Because of their popularity on social media and in memes, the global pet population shows no sign of abating.

“They are just cute – everything about them, which makes this whole thing more difficult.”

Accurate estimates are hard to ascertain, but in the US there are about 86 million pet cats – roughly one in every three households.

Unquantifiable amounts live stray or feral, meaning huge casualties in the environment.

It is estimated that as many as four billion birds and 22 billion mammals are killed by cats in the US every year.

Even in the UK, populations are on the decline, and experts blame cats. The Mammal Society says that about 55 million birds are falling casualty each year.

‘Natural-born killers’

It’s not the first time cats have been painted as a menace in New Zealand – a country boasting a feline in almost half its households.

They’re a hot issue in Australia too, where feral and outdoor cats are blamed for millions of native species’ deaths every night.

The nation has been funding grassroots culling initiatives since 2015, boasts the world’s largest cat-proof fence and has even considered introducing a national curfew for domestic cats.

Councils and state governments have been taking the cat problem into their own hands – forcing cats to stay indoors at night, implementing household quotas and mandatory identification and neutering.

Nevertheless, initiatives against felines remain controversial. Last year animal rights groups laid particular scorn at one Queensland local council who were offering $10 bounties for feral cat scalps.

PETA Australia paid for billboards to warn of the risks after the local bounties were announced — Photo: PETA

In Omaui, residents told local media they were “shocked” and “hoodwinked” by the proposed ban and have vowed to resist it.

Nico Jarvis, a local resident who says her three cats help combat rodents in her house, compared the proposal to a “police state”.

”It’s not even regulating people’s ability to have a cat. It’s saying you can’t have a cat,” she told the Otago Daily Times.

Paw Justice, a New Zealand-based non-profit that focuses on animal abuse, posted about the plan on Facebook, questioning the evidence behind it.

Cat-lovers on the group’s Facebook page reacted angrily to the news and pointing out that poisons, cars and humans also damage native species.

Local residents have until the end of October to register their submissions to Environment Southland’s plan.

Source: BBC

Yuan payment allowed in Vietnam, China border areas

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Chinese yuan will be allowed for payment in the border areas between Vietnam and China.

According to VNS, the announcement was part of Circular No 19/2018/TT-NHNN, which will take effect from October 12 this year.

Besides the yuan, traders and residents in the border areas of Vietnam and China, can also use Vietnamese đồng or fully convertible currencies, such as the US dollar, Euro or Yen, for payment of goods and services.

In addition to individuals, some other organisations will be subject to the new regulation. They include commercial banks and branches of foreign banks licensed to conduct foreign exchange transactions in Vietnam; branches of banks located in border areas and border-gate economic zones of Vietnam and China; organisations trading in duty-free goods; organisations providing services in isolated areas at international border gates; organisations engaged in bonded warehouses in border regions; the Vietnam-China Border Gate Economic Zone; and other organisations and individuals conducting payment activities in Vietnam-China border trade.

Payment can be made through banks or in cash in đồng or yuan, according to the circular.

Economic and trade co-operation between China and Vietnam has become increasingly close in recent years, and there is huge demand and an increasing trend toward yuan settlement in Vietnam.

Vietnam has overtaken Malaysia to become the largest trade partner of China in the Association of Southeast Asian Nations (ASEAN). Total trade revenues between Vietnam and China were estimated at US$66 billion in the first half of 2018, with the average monthly trade turnover between the two countries having exceeded $10 billion for the first time in history.

Zero-dong tours cause headaches for local authorities

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Zero-dong tours have been launched in many localities, creating challenges for state management agencies.

Commenting about the zero-dong tour boom, the Da Nang City Tourism Department said this is a form of competition in price among travel firms, mostly applied to the Chinese and South Korean markets.

The increase in the numbers of Chinese and South Korean travelers has helped generate more jobs, bring higher income, polish the city’s image, stimulate real estate demand, and encourage investments in hotels and restaurants.

The department affirmed that offering low-cost tours is a growing tendency among travel firms, which not only happens in Vietnam, but also in other regional countries.

According to UNWTO, 135 million Chinese traveled abroad, an increase of 6 percent over 2015 and spent $261 billion, up 12 percent. This explains why many countries, especially Southeast Asia, want to attract Chinese travelers.

Ngo Quang Vinh from the department commented that low-cost tours is a ‘phenomenon of the market economy’ which can be seen in many cities/provinces such as Quang Ninh, Da Nang and Nha Trang.

The majority of Chinese travelers to Quang Ninh over the last few years were under zero-dong tours.

In high season, which lasts from October to April, the Mong Cai international border gate in Quang Ninh province receives 10,000 Chinese travelers each day.

Pham Ngoc Thuy, director of the Quang Ninh provincial Tourism Department, also said China is one of the most important markets for Quang Ninh’s tourism, creating thousands of jobs and bringing revenue of VND2.4 trillion in 2017 alone.

However, analysts warned that zero-dong tours and Chinese travelers bring problems rather than benefits and called for a ban on zero-dong tours in Vietnam.

Failure to collect tax and a dollar drain are the most visible consequences.

Nguyen Van Hung, director of Ky Nghi Da Nang, said the money paid by Chinese travelers at the shops in Vietnamese territory returns to China via online payment services with Alipay and WeChat.

In May 2018, appropriate agencies discovered a transaction of VND200 million via POS at a shop in which the money did not go through the Vietnamese banking system, but went directly to China.

The Da Nang Tourism Department admitted that there are many shops that sell low-quality products at exorbitant prices, thus spoiling the city’s image.

The same thing is happening in Quang Ninh. On April 27, Ha Long City authorities suspended a shop specializing in selling medicinal herbs to Chinese travelers because the shop overcharged travelers by VND80 million.

In the first six months of 2018, Da Nang agencies discovered 20 Chinese and three Koreans illegally working as tour guides, imposing a total fine of VND322.5 million,

According to report on Vietnamnet

This new tour lets you explore Vietnam just like Anthony Bourdain did

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Anthony Bourdain spent countless weeks on the road every year exploring different cultures and inviting viewers of his TV shows to join him on his culinary adventures around the world. However, the late author and celebrity chef, who died of suicide earlier this summer, credited Vietnam as the place that really changed his life.

Now, one travel company is making it easy to explore the country Bourdain loved so much just as he did with a brand new 14-day tour that hits nine cities and retraces the globe-trotting chef’s footsteps there.

The itinerary for A Tribute to Anthony Bourdain: Taste of Vietnam was curated by the Vietnam-based tour company Exotic Voyages, and takes travelers on a 14-day, 13-night excursion around the Southeast Asian country visiting a number of the eateries featured in various episodes Bourdain filmed there, among many other activities. The tour is also led by Diep Nguyen, who worked with Bourdain on the 2016 Parts Unknown episode through North Vietnam.

The tour is jam-packed and guaranteed to give you a great taste of the country’s rich culture, kicking off in Ho Chi Minh City with a clay pot rice dinner at a Bourdain favorite, Com Nieu restaurant, which can be seen in episode 10 of No Reservations’ fifth season. Then, after catching a show at the Opera House, it’s off to the Ben Tre province, and a cruise along the Chet Say River. Some other highlights include a stop at the Japanese Thanh Toan Bridge, a visit to Hoi An’s Central Market, and a scooter tour through Phung Hung Street in Hanoi. The Hanoi stop also includes a jaunt to the small restaurant where Bourdain famously dined with President Barack Obama (the chairs and table they sat at are now preserved in a glass case).

As with any trip befitting of Bourdain, there will also be plenty of opportunities to enjoy Vietnam’s many delicious street foods.

The tour is all-inclusive, which means all meals, accommodations, and transportation are covered (except for airfare to and from Ho Chi Minh). That also means that it’s pretty pricey, with rates starting at $3,755 per person. Still, for any Bourdain super-fan out there looking to see Vietnam like the man himself, you really can’t do much better.

If you’re interested, read up on all the details and secure a reservation at ExoticVoyages.com

By JOE MCGAULEY, Thrillist

Two Vietnamese named among Southeast Asia’s top 30 tech founders

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Two founders of Vietnamese tech companies were listed in the Southeast Asia’s top 30 tech founders this year by technology and start-up platform techinasia.com.

They are Tran Ngoc Thai Son, founder of e-commerce platform Tiki, and Le Hong Minh, CEO of VNG Group.

According to a report on VNS, Southeast Asia is home to many smart and inspirational founders who have started companies that have fetched millions or even billions of dollars in funding.

In the past two years, funding raised by the region’s start-ups rose threefold, soaring from 2.52 billion USD in 2016 to 7.86 billion USD in 2017.

Southeast Asia’s top 30 tech founders list features entrepreneurs who run a start-up and they are ranked based on their personal track record and their firms’ public data (funding, revenue and valuation), using data from the past two years.

They are placed into three groups based on their company’s size: the up-and-comers, established entrepreneurs and industry giants.

Singapore is home to the top 20 founders while Indonesia has four.

Vietnam, Thailand and Malaysia each have two in the list.

Le Hong Minh, VNG CEO, an established entrepreneur, turned his interest in gaming into a sprawling business. He helped make VNG into one of Vietnam’s largest internet companies, focusing on online gaming and content, social networking and e-commerce.

VNG has been expanding rapidly since its establishment in 2017. It reported a record 186.3 million USD in revenue and 41 million USD in net profit last year, up 41 percent and 70 percent year-on-year, respectively.

Tran Ngoc Thai Son, founder of Tiki, an e-commerce platform that sells more than 300,000 products in 12 categories, is among the outstanding up-and-comers.

Two years after foundation in 2012, Tiki raised funding from CyberAgent Ventures and became the only e-commerce company to receive capital from Japanese Sumitomo Corporation. It also has drawn interest of Chinese e-retailer JD.com, which joined its series C funding round in 2017.

It claims to have the lowest return rate among all Vietnam-based ecommerce companies, and that it has grown in triple-digit rates six years in a row.

Tiki is planning to raise a series D funding round to finance the development of new services and mobile applications.