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Int’l packaging, printing expo to open in Vietnam’s HCMC, Vietnam

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An international packaging and printing industry exhibition, 2018 Vietnam Print Pack Foodtech, kicked off here Wednesday Ho Chi Minh City of Vietnam.

There are over 380 firms from 11 countries and regions to participate the event.

The firms from such countries as Australia, Canada, Germany, Japan, South Korea and Vietnam, are showcasing their latest printing and packaging products, accessories and technologies at 500 booths.

During the four-day expo, a seminar on 2D and 3D printing technologies and their applications in Vietnam will be held, said the Ho Chi Minh City Printing Association

Huntsman to open manufacturing facility in Vietnam

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Huntsman Corporation (The Woodlands, TX, US) announced Aug. 23 that it has opened a multi-purpose facility at the Amata Vietnam Industrial Park, near Ho Chi Minh City, Vietnam.

The site is a greenfield investment for the company and will house Huntsman’s Polyurethanes and Advanced Materials businesses, comprising manufacturing, R&D capabilities, a technical service center, warehouse and distribution space and a commercial office.

Huntsman’s CEO Asia Pacific and president of the Polyurethanes business, Tony Hankins, says, “Vietnam is one of the largest and fastest growing countries in Asia Pacific. For Polyurethanes, we’ve seen double digit growth rates for a sustained period and fully expect this to continue. At the new site, we’ll manufacture formulated systems for the footwear and automotive markets; rigid insulation foam used in construction and cold chain applications; and simulated wood for the furniture market. These products will be consumed primarily in Vietnam, with the balance being exported to Cambodia. The facility will enable Huntsman to collaborate more effectively with Vietnamese customers and will also strengthen our strategy of globalizing downstream bolt-on acquisitions.”

Scott Wright, president of Huntsman’s Advanced Materials business adds, “This is the first manufacturing expansion investment outside China for our business in Asia Pacific and we see many opportunities in Vietnam to support large-scale infrastructure and construction projects in one of the fastest growing economies in the region. The new plant will give us the capability to efficiently supply customers across the ASEAN region with high quality electrical insulation, coatings and adhesive solutions that will ensure these ambitious projects are implemented successfully.”

In addition to this facility, Huntsman has a distribution warehouse located in the inland container depot at Long Binh – Dong Nai Province, and a site in Hanoi which offers technical service and comprises warehouse and distribution space, and a commercial office.

Traders can use Yuan along China border of Vietnam

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Central bank appears to be striving to reduce risks from dollar transactions

Vietnam plans to officially allow the use of the Chinese yuan for trading goods in its northern border towns, the central bank said on Wednesday.

According to a report on Nikkei, the State Bank of Vietnam announced on its website that merchants, residents and related banks and institutions engaged in cross-border trade will be authorized to use the yuan, or the Vietnamese dong, to settle transactions starting on Oct. 12.

The central bank did not provide further details, but many economists see the decision as an attempt to reduce foreign exchange risks from current trading practices.

Trade between Vietnam and China exceeds $100 billion, and most transactions are settled in U.S. dollars. This creates a forex hazard for both sides.

The trade war between the U.S. and China is only exacerbating those concerns. With tensions escalating, the yuan has weakened 6% against the greenback in the last six months, partly because Beijing is seen as intentionally devaluing its currency to make its goods more competitive. Meanwhile, the dong has weakened only 2% in the same period, mostly due to U.S. Federal Reserve rate increases that have pulled money out of emerging markets.

“Vietnamese exporters to China are losing competitiveness” because of the dong’s strength relative to the yuan, said Nguyen Tri Hieu, a Vietnamese economist. “The situation is even widening Vietnam’s trade deficit with China.”

In border towns on Vietnam’s side, the yuan has been widely used — albeit illegally — for years. Tran Long, a Vietnamese trader living a few kilometers from the border crossing in Mong Cai, said he uses yuan to pay for just about everything in the city.

“If the yuan is legalized and freely used in Vietnam, trade with China for Vietnamese companies will be more convenient,” he told the Nikkei Asian Review.

Beijing, for its part, has been pushing to internationalize its currency as a means of settlement. Last year, China’s Global Times newspaper quoted Beijing’s ambassador to Hanoi, Hong Xiaoyong, as saying that “the use of yuan [in Vietnam] helps to promote stable, balanced and sustainable growth in bilateral economic and trade exchanges.”

Vietnam’s decision to allow the yuan in “some specific areas could be a step toward this currency’s internationalization, as the yuan is playing a more and more important role among the world’s currencies,” Hieu said.

The central bank’s move comes about a week after Tran Quoc Vuong — a permanent member of the Communist Party of Vietnam Central Committee’s Secretariat and a potential candidate for party chief — visited Beijing and met with Chinese President Xi Jinping on Aug. 20.

Vietnam’s brave run ended by Korea Republic

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Vietnam’s inspirational run at Asian Games 2018 finally came to an end on Wednesday as they were beaten 3-1 by Korea Republic in the semi-finals.

It took the South Koreans just seven minutes to break the deadlock at the Pakansari Stadium, when Lee Seung-woo reacted quickest to a loose ball inside the box and sent a left-footed effort arrowing into the top corner.And, two minutes before the half-hour mark, Hwang Ui-jo doubled their advantage when he beat the offside trap to run onto Son Heung-min’s incisive pass and coolly clipped a shot past Bui Tien Dung.

The contest was then effectively over ten minutes into the second half when Lee once again benefitted from a touch of fortune.

Celebration time for Son Heung-min and Korea Republic.

Having made a charge towards the opposition goal, the Hellas Verona starlet then sent a pass in search of Hwang Hee-chan but desperate defending by a Vietnam defender – also named Bui Tien Dung – saw him make the interception.

However, the ball fell kindly back to Lee, who had made a good follow-up run, and he was left with the simple task of poking the ball into the unguarded goal.

To their credits, the Vietnamese refused to give in and actually created a number of good openings, but were just lacking that extra bit of quality to match it with a team like Korea Republic.

But, in the 70th minute, Vietnam did grab a consolation courtesy of a fine effort by substitute Tran Minh Vuong, who lined up a 25-yard freekick before curling away a sublime effort that had Cho Hyun-woo – South Korea’s hero at the 2018 FIFA World Cup – beaten all ends up.

While they may have been defeated, Vietnam certainly gained plenty of admirers along the way and still have a chance to claim the bronze medal when they meet either Japan or United Arab Emirates in Saturday’s third place playoff.

VIETNAM: Bui Tien Dung, Pham Xuan Manh, Do Duy Manh, Tran Dinh Trong, Bui Tien Dung, Vu Van Thanh, Luong Xuan Truong (Tran Minh Vuong 46’), Pham Duc Huy (Nguyen Van Quyet 31’), Nguyen Quang Hai, Phan Van Duc, Nguyen Anh Duc (Nguyen Cong Phuong 76’).

KOREA REPUBLIC: Cho Hyun-woo, Kim Moon-hwan, Cho Yu-min, Kim Min-jae, Kim Jin-ya, Kim Jung-min, Lee Jin-hyun, Hwang Hee-chan, Lee Seung-woo (Hwang Hyun-soo 85’), Son Heung-min (Lee Si-young 72’), Hwang Ui-jo (Na Sang-ho 59’).

Photo credit: Asian Games 2018

Drug smuggling, South African sentenced to death in Vietnam

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For the first few days following his disappearance‚ the family of Tyrone Lee Coetzee searched high and low for him in South Africa‚ declaring him missing.

On Tuesday‚ however‚ news broke that the former Ferndale High School pupil had since been sentenced to death for smuggling cocaine into Vietnam from Brazil. His sister Chantal had taken to Facebook in 2016 to plead for assistance in finding him. “Tyron Lee Coetzee has been missing since the beginning of June (last contact was on 30th May). If anyone has seen him or heard from him more recently‚ or has any information about where he was living or working‚ or his current whereabouts‚ please contact me or my mother‚ Joanne Coetzee or the police urgently‚” she wrote.

According to a report by Nalledi Shange on SowetanLIVE, missing Children South Africa had also reported him missing in June last year‚ the group said on its Twitter page. Coetzee was last seen on his way to Port Elizabeth in May 2016‚ the group said. Reuters quoted the Ho Chi Minh City Law newspaper as saying that the 34-year-old was arrested in June 2016‚ carrying 1.46 kg of cocaine in his luggage. “He confessed to Vietnamese investigators that he had been hired by a Nigerian man to smuggle cocaine into Ho Chi Minh City from Brazil‚ via a transfer in Dubai‚” the newspaper reported‚ adding that Coetzee had been offered $3‚500 (R50‚000) to carry the drugs.

Coetzee’s trial began in May last year but was temporarily suspended after he said he suffered from schizophrenia‚ according to the newspaper.

Minister of International Relations and Cooperation Lindiwe Sisulu said an official from South Africa was in court when Tyrone was handed his sentence on Tuesday.

“The family of the man has been informed of the latest developments and the department is rendering consular support to them‚” Sisulu said in a statement.

“The department will continue to monitor the case and will take the lead from the concerned citizen with regard to the possibility of appealing the sentence.”

Sisulu expressed concern at the number of South Africans who are currently in prison in foreign jails‚ adding that there were around 800 of them.

“The department once again calls on South Africans traveling abroad to familiarize themselves with the legal and cultural practices of the countries they are visiting. South Africans are warned against taking part in any unlawful activities.”

Vietnam aims to develop industrial hubs and modernize transportation network by infrastructure investment

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Often when a country is looking to improve its residents’ lifestyles, they look at modernizing and building new infrastructure. As a resident of your own country, you could agree with the fact that new infrastructure give positive results for your personal life.

According to an article, posted by Chris Price on Techdigest, not to mention when the modernizing deals with the transportation system; that’s always a good way to go. Vietnam’s infrastructure is undergoing ambitious redevelopments and with a big project ahead that will touch on several areas around the country, the final outcome is looking better than ever.

With a focus on the industrial hubs and the coastal areas, Vietnam’s prime minister Nguyễn Xuân Phúc has set his aim on increasing the infrastructure spending budget. The decision is made on the basis of wanting to improve Vietnam’s stance both domestically and internationally. In fact, the Vietnamese government recently announced a budget of $921 million for the project- a large sum that can only have you imagine the level of development that Vietnam will undergo.

Although the project touches upon several different fields, there are a few that will have a bit more follow up. For example, one of the first redevelopments will be the construction of new roads spanning for 250 kilometers, along with a wastewater management system.

Furthermore the project also has a plan for 8 specific areas, all of which are coastal locations. The aim is to attract private investors and the headquarters they would then go to build in these areas; specifically industrial parks and technological hubs. With the presence of private investors and their resulting input, Vietnam would then be able to compete more, and better, with its neighboring South East Asia countries.

Nevertheless, the project is ambitious and imaginative, but also quite pricey. A 2016-2017 report by the World Economic Forum Global Competitiveness Report shows Vietnam as 79th out of 138 countries in terms of infrastructure quality. What’s more is that it also placed 77th for the quality of its ports, and 89th for its roads. And although the project is going to take time before its full competition, there have already been important improvements.

For example, the upgraded railway connection between Ho Chi Minh City and Hanoi, the modernization of the Vietnamese road networks that feature only 20% of its roads paved, and the construction of new electricity plants that go on to serve the largest city’s needs.

Both the rankings and the recent developments show that Vietnam is on its way to bigger and better things. With a steady project as the backbone and a serious budget to work with, the Global Infrastructure Outlook has reported that if Vietnam keeps its current pace, the country will meet 83% of its infrastructure needs by 2040. Will it stop there? Let’s hope not!

JPMorgan lends $50m to LienVietPostBank; SK’s Hyosung to invest $1.2b

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Hanoi-based lender LienVietPostBank has signed a $50 million credit agreement with JPMorgan Chase Bank, N.A while South Korea’s Hyosung Corp is investing $1.2 billion on a polypropylene (PP) plant and a liquefied petroleum gas (LPG) warehouse in Vietnam. Quynh Nguyen reported on DealStreetAsia.

JPMorgan Chase lends $50 million to LienVietPostBank

Hanoi-based lender LienVietPostBank has signed a $50 million credit agreement with JPMorgan Chase Bank, N.A., Singaporean branch to supplement foreign currency capital, according to an official announcement.

The loan contributes to enhance the position of LienVietPostBank in domestic and international financial markets and supplement medium and long-term foreign currency to the bank, said Pham Doan Son, CEO of LienVietPostBank.

As of June 30, total assets of LienVietPostBank reached VND175.8 trillion ($7.5 billion), up 7.62 per cent compared with the beginning of the year.

LienVietPostBank has the largest network among joint-stock commercial banks, with 200 branches and over 1,000 transaction offices, nationwide.

SK’s Hyosung Corp pumps $1.2b investment in Vietnam

South Korea’s Hyosung Corp is investing $1.2 billion on a polypropylene (PP) plant and a liquefied petroleum gas (LPG) warehouse in Vietnam, according to an announcement.

The construction, with total investment capital of $1.2 billion, is the largest project ever licensed in Ba Ria-Vung Tau Province.

The first phase involves the construction of the PP plant, which will have an annual output of 55,000 tonnes of ethylene, 600,000 tonnes of propylene, 600,000 tonnes of polypropylene in the forms of Homo and Co, 20,000 tonnes of hydrogen, as well as other by-products such as steam, inert gas and light hydrocarbons.

In the second phase, Hyosung will build a 240,000-tonne-per-year LPG underground warehouse.

Hyosung Corporation is a Korea-based company mainly engaged in the production and sale of heavy industrial equipment and raw materials for industry.

Why McCain is loved in Vietnam?

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Retired Colonel John Fer, who was imprisoned with the late Sen. John McCain during the Vietnam War, shares why McCain’s experience in Vietnam shaped his perspective of working with other politicians and countries.

A wall separated prisoners of war Joe Crecca and John McCain.

According to a report on CNN, the two fighter pilots, captured by the North Vietnamese military in the late 1960s, were in solitary confinement in Hoa Lo Prison where American servicemen were imprisoned and tortured during the Vietnam War.

Crecca said his and McCain’s cells were next to one another. They communicated by tapping on the wall.

“There’s a wall between us, but there’s an emotional bond between us that can’t be broken. It’s like steel,” Crecca, now 77, told CNN affiliate KCPQ-TV. He was captured 11 months before McCain.

McCain, who died Saturday at age 81, spent 5 1/2 years as a prisoner of war at Hoa Lo, known to most Americans as the “Hanoi Hilton.”

His Skyhawk jet was shot down over North Vietnam in 1967. He parachuted into a lake near Hanoi, breaking both arms and a leg, and was captured by communist soldiers. In captivity, McCain was tortured and beaten, an experience that left him with lifelong injuries, including severely restricted movement of his arms.

Like other American POWs, McCain and Crecca used a complex communication system known as tap code — tapping out messages on the wall of their cells — to communicate with each other.

“We would pass humorous things through the wall,” Crecca told KCPQ. “You knew you succeeded when you could hear the guy on the other side laughing.”

Crecca said McCain kept his spirits up, even through torture and the risk of “those communists re-breaking his arms.”

During his time as a POW, McCain refused a preferential release offer, made because his father was an admiral. He turned down the offer until his comrades could also go home.

“He clearly was a man of extreme courage and of loyalty to the United States of America,” Crecca said. “To his family, to his God, and to his country.”

Decades later when McCain ran for president in 2008, Crecca and his wife, Joan, were there to support him during a fundraising trip in Seattle, Washington.

“He remembered the time when we were tapping through the wall to each other. And of all things, what he says to Joan is ‘Joe was a great resister,'” Crecca said, surprised by his fellow veteran’s remarks. “He endured much more than I did.”

McCain rarely talked about what he went through in Vietnam, according to an October 2017 YouTube video commemorating the 50th anniversary of his capture.

McCain returned to visit Hoa Lo in April 2000. A photo from the visit is on display at the prison, which has been transformed into a museum.

“I put the Vietnam War behind me a long time ago,” McCain said at the time. “But I harbor no anger nor rancor. I’m a better man for my experience, and I’m grateful for having the opportunity of serving.”

DHL eCommerce goes green in Vietnam and Malaysia

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Rolls out fleet of electric motorbikes as part of Deutsche Post DHL Group’s commitment to Zero Emissions by 2050
By the year 2050, DPDHL will operate 70% of its own first and last mile services with clean pick-up and delivery solutions

SINGAPORE – Media OutReach – 29 August 2018 – DHL eCommerce, a division of the world’s leading logistics company, Deutsche Post DHL Group (DPDHL), has rolled out a fleet of electric vehicles in Vietnam and Malaysia as part of its domestic delivery network and in line with the Group’s commitment to Zero Emissions by 2050. As part of the commitment to reduce all logistics-related emissions to nett zero by the year 2050, DPDHL announced that it will operate 70% of its own first and last mile services with clean pick-up and delivery solutions.

“In parallel with the continued growth in e-commerce, we expect a strong demand for deliveries and we recognize the need for sustainable delivery solutions. As part of DPDHL’s commitment to Zero Emissions by 2050, our fleet of electric vehicles will provide greener deliveries and we are committed to steadily and consciously increasing our fleet of electric vehicles in our domestic delivery network.” said Kiattichai Pitpreecha, Managing Director, Southeast Asia, DHL eCommerce.

The first fleet of electric vehicles are already in use and the plan is to increase the fleet gradually by sunsetting older vehicles and prioritizing ‘green and clean’ approaches. Delivery hubs in Puchong and Cheras in Malaysia and Ho Chi Minh and Hanoi in Vietnam will be retrofitted with electric charging points with fast charging capabilities.

DHL eCommerce provides nationwide domestic delivery with fully-owned operations in Vietnam and Malaysia to enable e-commerce businesses to deliver to their consumers. The domestic delivery network also includes DHL ServicePoints for drop-off and pick-up with convenient locations to provide greater convenience for sellers and consumers while optimizing delivery for greater efficiency.

“Consumers are becoming more environmentally conscious and are placing greater value on sustainable options when they shop. We are super pleased to be rolling out our electric fleet inVietnam and Malaysia to support our customers — it is great for us, great for our customers and great for the country.” added Kiattichai Pitpreecha, Managing Director, Southeast Asia, DHL eCommerce

In March 2017, DPDHL announced that it will reduce all logistics-related emissions to zero by the year 2050. The Group aims to become the market leader in green logistics and plans to expand its portfolio of green products and services to help customers achieve their own climate protection targets.

DHL — The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 360,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 60 billion euros in 2017.

Chu Thi Binh fully repaid by Eximbank

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Eximbank has paid client Chu Thi Binh the remaining VND152 billion ($6.7 million) out of a total of VND245 billion ($10.8 million) embezzled from her saving books.

According to a report by Nguyen Huong on VIR, Eximbank has just announced finishing the compensation of Chu Thi Binh, repaying her the VND245 billion ($10.8 million) that she previously deposited at the bank. Two months ago, the bank returned VND93 billion ($4.1 million) to Binh. In this last round of compensation last week, the bank paid VND152 billion ($6.7 million).

The representative of Eximbank said that the incident was very complicated and is beyond the capabilities of the bank to resolve on its own, especially while defendant Le Nguyen Hung is still wanted. Eximbank has been collaborating with the investigation agency to clarify responsibility behind this incident.

Additionally, Eximbank has proactively met and negotiated with the client to find a reasonable solution.

“I highly appreciate the efforts and goodwill of Eximbank during the negotiations. The two sides negotiated with the legitimate interests of each party at heart,” Binh said.

She also committed to continue using the financial services of Eximbank, saying all of the compensated money will be deposited at the bank, according to vnexpress.net.

Earlier in 2013, Binh deposited a total of VND301 billion ($13.3 million) in three saving books. In February 2017, she contacted the bank to withdraw the money when the books reached their maturity, but Eximbank said her deposits were no longer in the system.

She asked to check all saving books and realised that VND245 billion ($10.8 million) had been withdrawn while she was holding the books.

It is alleged that Le Nguyen Hung, former deputy director of Eximbank’s branch in Ho Chi Minh City falsified documents to withdraw money from her saving books.

In March 2018, Eximbank offered VND14.8 billion ($650,000) as advance compensation, but Binh declined, asking the bank to repay her in full. The two sides did not reach a consensus until two months ago, when the client agreed to receive the first payment of VND93 billion ($4.1 million) in compensation.

HCM City: various entertainment activities scheduled for public holiday

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Entertainment and recreational establishments in Ho Chi Minh City have prepared a host of activities to serve demand during the occasion of the Nation Day (September 2), also a public holiday in Vietnam.

Dam Sen Cultural Park in District 11 will organise a programme, which features art performances and musical concerts from September 1 to 3, VNA reported.

Highlights of the programme include an 8-metre Vietnamese map made of 500 conical hats, and a kite flying show with two giant kites carrying 73 national flags as a symbol of the 73rd anniversary of National Day.

Meanwhile, Suoi Tien Cultural Park in District 9 will treat visitors to more than 150 entertainment activities and art performances.

Musical theatre show “Tien Nga”, an adaptation from Nguyen Dinh Chieu’s poem directed by local renowned artist Thanh Loc, will be on stage at the IDECAF drama theatre in District 1 on September 1 and 2, while the play “Vuon Nho Dang” (bitter grapevine) will be premiered at the Hoang Thai Thanh Drama Theatre in District 10.

Fireworks will light up the sky of Ho Chi Minh City on September 2 evening for Nation Day celebration. They will be set off from 9pm to 9:15pm near the Saigon River tunnel in District 2, and at Dam Sen Park in District 11

Hanoi flag-makers contract football fever

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Some workshops in Hanoi’s outlying district of Thuong Tin have been busy making national flags and banners to meet demand for Independence Day on September 2, as well as for Vietnamese football fans as U23 team qualified for the ASIAD semi-finals, Dtinews reported.

Nguyen Quang Phuc’s workshop can produce some thousands of products per day. His family has had 20-years of experience in banner-making.

He has hired 15-20 people for the work, but these days, they can’t meet the rising demand.

Besides Independence Day and football fans, Phuc’s workshops also provides products for the new school year which will start early next month.

A laser cutting machine used for making products

Vietnam is one of top three global adventure travel destination

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Readers of leading global travel website TripAdvisor have ranked Vietnam third among 10 top adventure destinations in the world.

Reporting this, the U.K.’s Daily Star has listed three of the most popular activities in Vietnam: a half-day Hanoi Food Tour; a full day Mekong Delta bike tour from Ho Chi Minh City; and an evening Hoi An Food Tour by bike.

Costa Rica topped the TripAdvisor list, followed by New Zealand. Vietnam is the only Asian country to make it into the list, which includes Ireland, Scotland, Australia, Portugal, Mexico, the U.S. and Iceland.

The U.S. News earlier this month named Vietnam as one of 30 best solo travel destinations alongside neighbors Singapore and Thailand.

Earlier this year, TripAdvisor readers ranked Vietnam as one of the 10 best places to go in the world.

According to a report on TripAdvisor

The foreign ‘big guys’ behind Vietnam’s online markets

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The owners of Shopee, Lazada and Tiki, the best known e-commerce websites in Vietnam, all are foreigners.

Jack Ma, president of Chinese Alibaba Group, once compared Vietnam’s e-commerce to a gold mine. The billionaire has become one of the first ‘miners’.

In April 2016, Alibaba spent $1 billion to acquire 51 percent of shares of Lazada, which is considered Southeast Asia’s Amazon. In June 2017, Alibaba poured $1 billion more into the website, raising its ownership ratio to 83 percent in the startup valued at $3.15 billion.

Another big e-commerce group from China, JD.com, also joined the Vietnamese market in late 2017 when injecting money into Vietnam’s Tiki, becoming one of the biggest investors.

JD did not reveal the amount of money it has poured into Tiki. However, at an event, the representative of Tiki said Tiki had received $50 million to scale up its business.

Shopee is another e-commerce firm, with a part of its capital from China. Shopee is a subsidiary of SEA, headquartered in Singapore, the first technology firm in Southeast Asia that had an IPO on NYSE, raising $884 million worth of funds.

One of the biggest shareholders of SEA is Tencent, the conglomerate with the total capitalization value exceeding $500 billion, or higher than that of the giant Facebook.

As such, three Chinese technology giants in Vietnam compete with players from South Korea and Japan. With M&A deals, they have quickly penetrated the Vietnamese market but do not have to spend time building brands.

The real goal of the conglomerates is the entire vast Southeast Asia market with 640 million people and GDP of $2.6 trillion.

The presence of foreign giants has raised the concern that Vietnam may lose the online retail market to foreign hands.

Vu Vinh Phu, an expert in trade, warned that Vietnam’s e-commerce market, like the traditional retail market, is being controlled by foreigners.

Phu warned that the presence of Chinese e-commerce firms in Vietnam will clear the way for Chinese products to flood Vietnam which will badly affect domestic production.

Pham Van Trong, an e-commerce expert, also admitted that the appearance of foreign big players, especially Chinese, has really put pressure on Vietnam’s e-commerce market.

However, Tran Trong Tuyen, secretary general of the Vietnam E-commerce Association (Vecom), said there was no need to be too worried about foreign players.

Tuyen said Vietnamese e-commerce floors are also backed by large groups. Adayroi, for example, is backed by Vingroup, while Sendo by FPT. Both Vingroup and FPT are powerful corporations which are suitable matches to foreign giants.

According to a report on Vietnamnet

The best-known transfer pricing cases in Vietnam

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Nearly 38 percent of foreign invested enterprises (FIEs) reported losses in 2017, a significant decrease from the 50 percent seen in previous years. However, transfer pricing by FIEs remains a headache for management agencies.

Do Thien Anh Tuan of Fulbright University said that enterprises that most regularly report losses operate in manufacturing, garment & footwear, household-use production, and retail and beverage sectors.

Meanwhile, the HCM City Taxation Agency noted that the FIEs in retailing and beverage industries always top the list of reported unprofitable enterprises.

Another report showed that 90 percent of textile & garment FIEs in the city reported losses, while Vietnamese enterprises in the same field reported profit, though FIEs are believed to have bigger advantages.

Coca-Cola Vietnam, Pepsi Vietnam

Coca-Cola continuously reported losses from 1992, when it began operation in Vietnam, until 2012, though its output increased steadily by 25 percent per annum.

By December 2012, its accumulative loss had reached VND3.768 trillion, much higher than the initial investment capital of VND2.95 trillion.

However, instead of scaling down production, Coca-Cola in 2014 poured $210 million more into its company in Vietnam.

The move raised suspicion that Coca-Cola conducted transfer pricing, but the evidence was weak.

From 2013, Coca-Cola Vietnam began reporting profits and paying corporate income tax.

Pepsi Vietnam has a similar story. It has been reporting losses in the last 20 years.

Adidas

Adidas’ subsidiary in Vietnam was set up in 2009.

In late 2012, local newspapers published stories, alleging that the footwear company conducted transfer pricing to avoid tax.

Adidas registered its business in Vietnam as a wholesaler, but it was found having expense items like a retailer. Adidas Vietnam is not a manufacturer, but it has to pay royalties (6 percent) to Adidas AG and international marketing fee (4 percent of net revenue).

In addition, it also has to pay 8.25 percent of transaction value in commission to Adidas International Trading B.V.

The existence of many kinds of intermediary costs increases the import costs of Adidas products and helps it avoid corporate income tax.

Metro Vietnam

During its 12 years of operation, in 2002-2013, Metro Vietnam six times changed business license and raised its investment capital from $120 million to $301 million in May 2013.

However, at the same time, it reported losses with the accumulative loss of VND1.657 trillion and it only made a profit of VND173 billion in 2010.

GDT, after the inspection, decided that Metro’s loss must be lower than declared and that the distributor had to pay VND500 billion in tax arrears.

Keangnam

Tax officials discovered many unreasonable expense items and decided to collect tax arrears of VND95.2 billion after adjusting the profit in 2007-2011.

According to a report on Vietnamnet