Dr Phạm Sanh, an expert on urban transport talks about which public agency should manage electric bikes in Việt Nam.
Do you support the Việt Nam Register’s proposal requiring all electric bikes to be registered as motorbikes?
I don’t quite agree with this proposal from the Việt Nam Register. The proposal is rather odd. Under Vietnamese law, only the Ministry of Transport (MoT) has the power to decide if electric bikes must be registered with the Việt Nam Register or not, based on requests from local authorities nationwide. In this case, if any locality found that accidents caused by electric bikes have become nuisances in their locality, they should submit their request/proposal to the transport ministry to require all electric bike riders be registered.
After receiving the request, the MoT will study it carefully and consult with concerned agencies and then come up with a final decision to revise the Road Traffic Law in Việt Nam. However, under current Vietnamese law, electric bikes are subjected to the management of local authorities, not the Việt Nam Register. In this case, even if the MoT wants to enact any legal documents requiring all electric bikes be officially registered with authorities, the ministry has to consult with all local Governments and win their support.
Do you think the proposal is workable?
Whether we say the proposal is workable or not should be based on the two most important factors: safety and management requirement. If it is based on the management requirement, we have to analyse carefully the impacts of such a requirement during the course of administrative management, both positive and negative.
In my opinion, electric bikes should not be registered with the Việt Nam Register. But we should think of how to organise transport. If we consider electric bikes as motor vehicles as proposed by the Việt Nam Register, we have to analyse carefully the capacity of its motor to see whether the motor should be controlled as written in the law or not.
Do you mean that if we want to manage electric bikes we don’t have to manage them as a motor vehicle?
As we all know, riders of these bikes are old people and children under 16 years old. That’s why in my opinion we should focus on the aspect of safety on the road, not on the plate registration. However, in my opinion, we should come up with a rule saying that electric bikes can only run on certain types of roads and be subjected to inspections just like a bicycle.
How do you respond to a claim from the Việt Nam Register that electric bikes are one of the big reasons causing traffic accidents in Việt Nam?
Regarding this issue, in my opinion, the MoT should conduct a deep and thorough study on the negative impacts of electric bikes in traffic. We cannot equate the traffic movement of electric bikes with motor vehicles. If electric bikes are the culprits of many road accidents, in my opinion, we should think of revising our Road Traffic Law and related laws.
What about the management of electric bikes in other countries?
In developed countries, they have encouraged people to use means of transport which are friendly to the environment, including bicycles and electric bikes.
Regarding the issue of Road Registration, it is done by private agencies while the Government only oversees the manufacturing of auto vehicles. For our country, in my opinion, the transport ministry is the right agency to make the decision, not the Việt Nam Register to decide on the management of electric bikes.
Fifteen members of the Việt Nam Automobile Manufacturers’ Association (VAMA) and Vietnam Car Importers’ Association will participate in the 2018 Việt Nam Motor Show in HCM City in October – Reported by Vietnam News
The major names taking part include Audi, Chevrolet, Ford, Jaguar, Honda, Land Rover, Lexus, Maserati, Mercedes-Benz, Mitsubishi Motors, Nissan, Subaru, Toyota, Volkswagen, and Volvo.
There will also be many spare parts manufacturers and service providers.
Toru Kinoshita, chairman of VAMA, said: “The 2018 Việt Nam Motor Show is expected to be a special exhibition. The purpose of this show is to better serve the diverse demand of customers, indicate the vision, the open mindset of and quick adaptation by car manufacturers and authorised importers.”
This year in the small passenger car segment, in addition to popular brands like Toyota and Honda, there will be new small-sized hatchback models of the Volkswagen Polo, Honda Jazz and Toyota Wigo.
The pick-up, crossover, MPV, and SUV segments will be represented by vehicles like the Chevrolet Colorado, Ford Ranger, Honda CR-V and HR-V, Mitsubishi Outlander and Pajero Sport, and Toyota Hilux or Fortuner.
There will also be plenty of luxury vehicles like the Q models of Audi; Mercedes SUV GLC – E – S models; Jaguar F-Pace, Land Rover Discovery, Discovery Sport, Range Rover, Range Rover Sport, Range Rover Evoque, and Range Rover Velar; and Volvo XC90 Inscription, V90 Cross Country, XC60 Inscription; and the seven-seater Lexus RX350L.
In the luxury sedan segment, Mercedes-Benz will display the E-Class, S-Class and Maybach; Lexus will introduce some new models; and Audi will introduce the TT.
For the first time in the history of the motor show, there will be a mobile app with the latest news about the exhibition, visitor support services, brands and car models exhibited.
Users can join games and surveys to get incentives from the organisers.
The Việt Nam Motor Show organised by VAMA has always been the biggest car exhibition since 2002.
The event this year will be held from October 24 to 28 at the Sài Gòn Exhibition and Convention Centre in District 7.
Many people buying tours to Europe and other countries in Asia have been left hanging for over a year by a tour company in HCM City.
On August 17, many people flocked to the headquarters of Golux Company in District 1 to demand their money back. According to the customers, they came to the company several times but the staff had always said that their boss was not at the company
According to Dtinews, the customers already paid for the tours but they have been told that their tours were cancelled “because of various reasons.” Nguyen Van Hung, a customer who bought a tour to Europe said, “We had to pay VND30m (USD1,300) per person in January. The company promised that we would have gone to Europe in May then they delayed it until July then nothing happened.”
Another customer, Huynh Kim Long, said he bought a Singapore-Indonesia-Malaysia tour for five people at the price of VND50m (USD2,100). On August 6, he called the company for confirmation and was told that the trip would start on August 9. But the next day, he received a notification that the trip will be delayed until September.
Nguyen Thanh Nam, who paid VND1bn (USD43,000) for a group trip to the US, said he would sue the company if they failed to realise their promises.
This is not the first time Golux was complained of. Last year, another customer in HCM City paid VND48m (USD2,000) for a group trip to South Korea but the trip was delayed to July 22 then to 23, August 3 and 6. When the customer asked for their money back, the staff said their boss was not at the company.
Golux Company was established in August 2014 with Vo Anh Kiet as their current CEO. The Inspectorate of the Department Tourism fined the company VND45m for lack of business licence for outbound tours.
“The company still hasn’t registered to work in tourism yet,” an inspector said.
Several customers have reported the company to the police for fraud.
Vo Anh Kiet, Golux’s CEO admitted that they delayed many trips and promised to return the money to their customers in October. When being asked why they didn’t have a business licence for outbound tours, Kiet said he was too busy and forgot.
Vietnam’s ancient history and rich local folklore have led to some strong held beliefs that certain behaviors will increase good fortune while others will doom family members to bad luck or invite evil spirits to lurk around the home. Here are nine fascinating Vietnamese superstitions that people still believe given out by Katie Kalmusky on The Culture Trip
The first visitor of the year indicates luck
Tet, or the Vietnamese Lunar New Year, is an incredibly superstitious time for Vietnamese families. Everyone hopes to bring themselves and their loved ones good fortune over the coming year, and one thing that dictates the family’s luck is the first visitor of the year. Some ingenious family members have devised a sneaky plan to ensure the first visitor is a ‘desirable’ one; either a member of the family will step outside and come back in moments after the clock strikes 12, or they will arrange for a fortuitous friend to be the household’s first guest.
Another Tet superstition is that sweeping on the Lunar New Year will effectively wipe out the family’s good luck for the year. Families normally engage in a thorough deep-clean of the home a few days prior to Tet so no one will have the urge to clean up on the most important day of the year and accidentally rid the family of good fortune.
‘Ghost money’ for ancestors
Ghost money refers to imitation bills that are symbolic offerings to deceased ancestors. Ghost money is printed on bamboo paper and can be made to resemble Chinese yen, Vietnamese dong, Thai baht, or even U.S. dollars that are burnt and dedicated to the family’s ancestors. Some believe the ancestors can deposit this money in an afterlife bank, while others view ghost money as payment for the ancestors granting the living family’s wishes.
Pregnancy taboos
Quite a bit of superstition falls around pregnant women in Vietnam. Pregnant women are not supposed to attend weddings as they are seen as ‘bad luck’ for the newly married couple; a pregnant woman should not attend funerals lest her child be a ‘cry-baby’; she should not step over a hammock or her baby will be ‘lazy’; and she must avoid temples and pagodas to avoid angering the spirits residing there. When the baby is born, the new mother and family members must also resist coddling the child as spirits may become jealous and steal the newborn from the family. For this reason, many Vietnamese refrain from complimenting a newborn or lavishing the baby with too much adoration.
A fertilized duck embryo is known as hột vịt lộn in Vietnam and is a popular beer snack that can also be consumed as a means of reversing bad luck. Lộn loosely translates to ‘reverse’, which is where the notion of switching your fortune by eating the egg comes from. However, these powerful eggs should only ever be eaten in odd numbers; if you eat two, then your bad luck will reverse twice, meaning your situation won’t have changed at all and you’ll have chewed into two baby ducks for nothing.
Mirror faux-pas
Vietnamese families also strongly believe in Feng Shui, called phong thuỷ in Vietnamese. This ancient practice involves the meticulous placement of objects, furniture, and even an entire home to optimize the flow of chi, or energy, to facilitate a harmonious environment. In Vietnam, it is strongly discouraged to place a mirror on the opposite side of a doorway because as you enter the home, you can be spooked by your own reflection in the mirror and paranoia can creep into your conscience. Similarly, a mirror placed at the foot of the bed is not a wise move as it will cause nightmares as well as reflecting double the amount of energy onto the bed, creating a chi disaster. However, mirrors are often placed on front doors to scare away a dragon or an evil spirit as they will be frightened by their own reflection and will leave the house alone.
No haircuts before exams
Another interesting superstition is the notion that, according to locals, a badly timed haircut could cause memory loss. This is particularly troublesome for students – if a student gets a haircut right before an important test or exam, they could forget everything they’ve learned. For this reason it may be best to schedule a new haircut after that important exam takes place.
The first customer of the day predicts good business
Many Vietnamese shop owners believe the first customer of the day will indicate how profitable their shop will be for that day. If the first customer is a big spender, the day will be fortuitous, while it can be bad luck if they do not purchase anything. If you’re looking to snag some souvenirs in Vietnam, consider buying your items earlier in the day and save the browsing for later as entering a shop early just to peruse the selection could be a bad omen for the superstitious shop owner.
Helmets prevent children’s brains from growing
One of the most mind-boggling sights on the packed Vietnamese city streets is the amount of small children riding motorbikes without a helmet. The government mandated helmets for motorbike drivers and passengers on all Vietnamese roads in 2007, but strangely, you’ll rarely see a helmet-clad child clinging to their parent while cruising along the busy roads. This could be because of the pervasive belief that a helmet will hinder the child’s brain development by preventing their brain from growing.
Parents have also cited their child’s ever-changing helmet size as reasons they do not wear one at all, but either way this is one superstition that deserves to be shelved ASAP.
Hoi An-based Frenchman Réhahn’s patient approach has won him the trust of tribal elders, who have handed over rare artefacts and garments for display and preservation at his gallery in the town. Here is an amazing story of him published on South China Morning Post by GRAEME GREEN
“I’ve always been an avid traveller,” says French photographer Réhahn Croquevielle. “Wherever I go, I spend hours listening to people talk about their life, their story, their culture. Then, of course, great interaction is the key for a great portrait.”
This unhurried approach has worked for Réhahn, who prefers to go by only his given name. Focusing on portraits, the 39-year-old has produced three books – two about Vietnam, the country he has called home for seven years, and another drawing upon a decade spent behind a camera. He has close to 480,000 followers on Facebook.
In many places, traditional cultures are fading […] I often meet young people who don’t care at all about their traditions [ …] As a photographer, I have the opportunity to record and document their changing or disappearing traditions
Réhahn
“In Cuba, I will smoke a cigar with the subject before shooting,” he says, from his home in Hoi An, on Vietnam’s central coast. “In a remote village of Vietnam, I’ll drink tea or eat fruit with the chief. I often spend hours or even days chatting with people I meet and photograph.”
Hailing from Bayeux, in Normandy, Réhahn first visited the Southeast Asian nation in 2007, with French NGO Enfants du Vietnam, having sponsored several children through the organisation.
“It was a personal choice, not a professional one,” Réhahn says of his move to the country. “I love the lifestyle and the optimism of the people here. The sun shines all year and the minimum temperature is 20 degrees [Celsius], which is the summer in Normandy.”
Since making Vietnam his base, the photographer has been on a quest to take portraits of members of the country’s 54 officially recognised tribal groups, succeeding with 49 so far. “I’m waiting for permission because some of them are in sensitive areas, near the border with Laos or China,” Réhahn says. “It can take up to three years to get permission.”
Réhahn: “An Phuoc is a seven-year-old girl from the Cham community. She is known in her village as the ‘girl with the cat’s eyes’. Her incredible blue eyes, which look like two azure marbles, make her notably different from others in her community. At first, the family was not keen on me taking pictures, but by putting aside the camera and getting to know each other, we created a bond and now we visit each other regularly.”
The photographer is particularly interested, he says, in creating a record of traditional costumes and clothing. Last year, he established the Precious Heritage Art Gallery Museum in Hoi An. As well as his photography, the free-to-enter cultural space displays tribal artefacts, including traditional apparel.
“In many places, traditional cultures are fading,” Réhahn says. “Around 10 of the 49 groups in Vietnam that I’ve met can’t even make their traditional costumes any more, and many villages don’t even have one. Elders are worried to see their culture disappearing, but I often meet young people who don’t care at all about their traditions. They use a phone and Facebook from a very young age.
“The life is better but it comes at a price … As a photographer, I have the opportunity to record and document their changing or disappearing traditions.”
One of the most beautiful moments was when a chief came to visit the museum and brought me the last tree-bark costume of their village […] That piece, for me, is like a treasure
Réhahn
Many of the tribes Réhahn has met are animist and have – to outsiders’ eyes, at least – unusual beliefs.
“The M’nong, for example, who live in the Central Highlands, marry elephants and think that the elephant is a part of their family,” he says. “Unfortunately, elephants are slowly disappearing. There are fewer than 50 now in Vietnam, compared with 500 in 1980. Only the people who own elephants still remember the tradition and still interact with elephants. I’m actually writing a book about this subject with a Vietnamese ethnologist.”
Réhahn’s patient style of working means he often spends days or weeks with the tribes that he is photographing, or strikes up relationships and makes repeat visits. “I’ve spent lot of time with the Co Tu ethnic group, who live three hours from my home,” he says. “They maintain a very strong sense of tradition and have given many gifts to the museum I’ve built in Hoi An.
“One of the most beautiful moments was when a chief came to visit the museum and brought me the last tree-bark costume of their village. A hundred years ago, when the French were living in Vietnam, they met tribes wearing that kind of costume. Then cotton replaced it and now modern clothes.
“That piece, for me, is like a treasure.”
“I met A Dip, who is 76 years old, in 2017. He belongs to the To Dra ethnic group, which is, according to experts, a subgroup of the Xo Dang group, even though their traditions and dialect are different. He is the only artisan in the village who still makes traditional bamboo baskets, and the last one to play the traditional instruments of the To Dra people.”
Income from the sale of his photographic prints, Réhahn says, is being channelled into a new museum, for the Co Tu ethnic group, in rural Tay Giang district, close to the Laotian border. The facility is expected to be completed next month.
What’s more, Réhahn has given back to the communities he has photographed through the years, helping with repairs to houses, purchasing livestock and supporting the education of several children. Many of his subjects he now calls friends. He even gave a rowing boat to “Madam Xong”, who featured on the cover of his first book.
“As an artist who sells his photographs, I have a responsibility and a role to play,” Réhahn says. “I think it shows tribal people the interest that people around the world can have in their culture, and it gives them a sense of pride. These people are often poor and I want to use my galleries to help them.
“I have a special relationship with many of my subjects. They became like a family and we meet every year. For me, specialising in travel portraits, I wouldn’t be here today without these people. It’s totally normal to give them something back.”
“After waiting three years for permission, meeting the Ro Mam was definitely my most intense and unbeatable experience. There are now only 12 traditional costumes left, and I was honoured to receive one – along with a pipe and a basket – to showcase their culture. The remaining 11 costumes are kept as treasures by the Ro Mam because no one makes them any more.”“Lahu is said to mean ‘as powerful as a tiger’ and members of this tribe were known to be very skilled tiger hunters. The Lahu have no written language and most of them do not speak Vietnamese. Legend has it that a group of scholars once wrote the ancient language on rice cakes, but it disappeared when they became hungry and ate them.”“The Dao have a number of subgroups, each with its own traditional costume and features – like the colour of headscarf and the way of tying them – to distinguish one from another. The women use indigo to dye their costumes and the batik technique to create beautiful patterns. The intricate embroidery and beading give a sense of how much patience the process requires.”“The Giay constitute one of the smallest ethnic groups in Vietnam. They emigrated from China and settled in the northern regions of Vietnam about 200 years ago. The Giay’s original costume was particularly subdued, being uniformly black, but it is now practically impossible to find. There have been many changes in the past 40 years, and colour – particularly blue, which is highly appreciated in the tribe’s culture – has made its way into very modern-looking costumes.”“I travelled to meet the Brau in May 2016. It took me two days to get to their village, which was one of the poorest I’ve seen. Traditionally, the Brau wear heavy earrings that stretch their ears, creating long, hanging ear lobes. Depending on the level of income, they use ivory or wood for the earrings. According to Brau tradition, when youngsters reach puberty, they have the four front teeth of their upper jaw filed to be even. It’s considered a coming of age ritual. No one in the village makes the Brau’s traditional costume any longer.”“In July 2016, I was privileged to meet the smallest ethnic group in Vietnam. With virtually no information available online, it took me two days to find them. I was lucky enough to meet the chief, who was initially reluctant to part with a costume. But when I told him about representing his group in my collection, he helped me. I was surprised to discover that the O Du have only five complete original costumes left.”
Despite accounting for some 65 percent of Vietnam’s market share, foreign animal feed producers are continuously expanding production to further dominate the country’s fertile market.
Vietnam’s animal feed market has attracted many foreign feed companies, such as Thailand’s C.P, the US’s Cargill, South Korea’s CJ, Holland’s De Heus, Singapore’s Haid and Malaysia’s Emivest, thanks to its two-digit growth in the past two decades.
The Vietnamese livestock industry currently needs about 16 million tons of animal feed worth some US$6 billion yearly. By 2020, the demand will increase to 25 million tons, valued at US$10.5 billion. Despite the rising domestic production, Vietnam still has to spend US$3 billion for importing animal feed and raw materials for production yearly.
With an annual growth rate of 10-15 percent, the feed industry remains attractive to foreign investors. With the rising number of foreign investors in the sector, Vietnam is today the leading country in ASEAN and the 10th in the world in animal feed production.
Reports from the Ministry of Agriculture and Rural Development showed that the country has 239 feed plants, of which 61 are foreign-invested firms. Though Vietnamese animal feed producers outnumber foreign peers, they holds a market share of just some 35 percent while the remaining 65 percent belongs to foreign producers.
Despite the domination, many foreign feed plants are planning to further expand production in Vietnam to catch up rising demands.
According to Montri Suwanposri, general director of C.P. Vietnam, the company has 10 animal feed and seafood production plants with total output of 4.2 million tons per year in Vietnam. C.P is expected to continue expanding production in this field in the time to come.
Other foreign feed producers such as CJ, De Heus and Haid have also planned to increase output of their existing plants next times.
Efforts to regain market share
Industry insiders said that animal feed production requires high technology and huge investment, in which local producers are often weaker than FDI companies.
Le Ba Lich, chairman of the Animal Husbandry Association of Vietnam, also admitted that foreign firms have stronger financial capacity, experience, modern production line and especially appropriate distribution strategies to expand their market.
Besides, Dong Van Hoa, deputy director of Thanh Binh Company, said that to attract customers, FDI firms have also provided a full package solution for its partners and customers that supplies feed and one or all of its support products and services such as livestock breeds, farming equipment, technical advisory services, processing and consumption.
Farmers thus prefer products of foreign companies as the companies’ completed production and consumption chains have helped them cut costs and have a stable consumption.
Hoa suggested that domestic firms must join hands with each other to provide completed supply chains from the farm to the table if they want to survive.
Recently, some domestic large companies such as Masan, Hoa Phat, Hung Vuong and Vingroup have also made big investments in the feed industry to provide completed supply chains with the expectation of regaining local market share.
Specifically, Masan has bought Proconco, Anco, Green Feed to become the second largest livestock feed supply in the country and became the largest Vietnamese corporation in feed production. Meanwhile, Hoa Phat Group has so far also put into operation a feed with the capacity of 200,000 tons per year.
According to Tran Van Quang, head of the Dong Nai Department of Animal Husbandry and Veterinary, Masan and Hoa Phat have feed plants in Dong Nai while Hung Vuong and Vingroup are also likely to invest in the country’s largest livestock province in the time to come.
Investors successfully bought 5-year government bonds at a 3.45 interest rate at a bid organized on July 11 at the Hanoi Stock Exchange (HNX).
Also at the trading session, the 10-year and 15-year bonds had interest rates of 4.43 percent and 4.73 percent, respectively.
The interest rates showed an upward trend if compared with the 2.97 percent, 4.15 percent and 4.5 percent for 5-year, 10-year and 15-year bonds, respectively, fixed at the bid two months before, on May 2.
According to HNX, from the beginning of the year to July 2018, the State Treasury mobilized VND80.901 trillion worth of capital through bond bidding, just fulfilling 40 percent of the yearly plan and decreasing by 70 percent compared with the same period last year.
The disbursement still has been going slowly, but the State Treasury wants to issue a high amounts of bonds, mostly to ‘neutralize’ the short-term bonds issued previously with high interest rates.
The government’s debts in domestic bonds now have longer mature terms and lower interest rates.
However, analysts warn that cash flow is moving unreasonably, with latent risks for implementation of monetary policies.
The major buyers of government bonds are commercial banks. In principle, they only pour money into bonds if their liquidity is abundant and their capital mobilization cost is low enough to bring profits.
A question has been raised about why commercial banks are still attending bond auctions when the bond interest rates are lower than their capital mobilization costs.
The main reason is that banks now have too much money. As the disbursement for public investment has been going slowly, the State Treasury has to deposit undisbursed money at banks.
A report shows that by the end of 2017, the total deposited amount had reached VND293.5 trillion, including the VND165.082 trillion at Vietcombank as shown in the bank’s audited finance report.
As of the end of the first quarter of 2018, the deposits at the bank had fallen by VND40 trillion, but had grown immoderately at others.
The cash is ‘moving around’ but it doesn’t flow to production and business.
Experts warn that banks are bearing risks. They use the capital mobilized through short-term deposits (6-12 months) to buy long-term 10- or 15-year bonds.
The banking sector now has to arrange capital for the national economy, while the budget’s expenditure on development and investment is shrinking.
However, banks’ capabilities are limited. Meanwhile, bad debts still have not been fully settled. Banks have begun tightening credit. Four state owned banks have been instructed to reduce the credit growth rate by one percent this year compared with 2017.
The Ministry of Finance’s proposal to cut a number of investment conditions on segments like casino, lottery, and betting, if approved, will stimulate investors implementing registered projects.
Notably, the ministry proposed amending and supplementing 16 decrees in a number of fields, including insurance, securities, price appraisal, customs, accounting, auditing, lottery, electronic games for foreigners, casino, betting business, credit rating services, and voluntary retirement fund management services.
Regarding lottery, electronic games for foreigners, and casino alone, the ministry proposed to cut eight conditions and simplify two. In detail, there would be four less conditions applied to lottery business and one condition would be simplified. Electronic games for foreigners would have three less conditions, while casinos would be subject to one less condition, with an additional condition simplified.
In addition, horse and dog racing would see two conditions removed and four simplified.
In last December, the government issued Decree No.03/2017/ND-CP, allowing local people to gamble at the country’s casinos during a three-year trial.
Besides, the country gave sports betting a nod. In May, it approved new gambling regulations that now cover a variety of sports and would see new players enter the industry. The law is expected to take effect from January 1 next year and would provide the framework for a five-year pilot programme that allows locals to place bets on international soccer games, as well as horse- and dog-racing.
At present, numerous foreign investors expressed interest in developing racecourse projects, however, not a single one has been kicked off so far.
One of these projects is G.O.Max I&D’s $1.5 billion racecourse project located in Vinh Phuc province.
According to the plan, this horse racing course would have an area of 200 hectares, with three races held per week. The company also plans to build 70 betting points outside the course in 54 cities and provinces nationwide, as well building an online betting system and horse rearing and training areas.
Furthermore, the project would include a 72-hole golf course, a sports and entertainment area, a horse riding and polo club, and residences and villas, with a total area of 750 hectares.
G.O. Max I&D from South Korea has committed to develop the project as soon possible. However, since it signed an MoU with the Vinh Phuc People’s Committee for the project in early 2017, construction has yet to begin.
In another case, in late July, Chairman of the Bac Ninh People’s Committee Nguyen Tu Quynh issued an ultimatum, asking Golden Horse Investment Co., Ltd to implement the $500 million Golden Horse project immediately, otherwise the province will withdraw it.
According to Quynh, Bac Ninh province offered to help the investor to complete administrative procedures and promised to accompany the investor during the construction process. However, the project is still in limbo, impacting the province’s socioeconomic development plan.
Vietnamese shares advanced on Monday morning, driven by energy and agriculture stocks.
The benchmark VN-Index on the HCM Stock Exchange gained 0.39 per cent to close at 972.70 points.
The southern market index inched up total 0.04 per cent last week.
The HNX Index on the Ha Noi Stock Exchange rose 0.33 per cent to end at 108.38 points.
The northern market index was up total 2.66 per cent in the previous week.
More than 108 million shares were traded on the two bourses, worth VND2.09 trillion (nearly US$93 million).
Energy firms and agriculture companies were the driving factors for the stock market in the first trading session of the week.
The agriculture sector was pushed by the growth of Hoang Anh Gia Lai (HAG) and its sub-unit HAGL Agrico (HNG), which gained 2.8 per cent and 4.2 per cent, respectively.
HAGL Agrico has announced it would increase its investment for banana farms to VND976 billion from the current VND780 billion on expectations that banana products would help boost the firm’s earnings.
Energy firms such as PetroVietnam Gas (GAS), PetroVietnam Coating Corp (PVB) and PetroVietnam Drilling and Well Services (PVD) advanced after oil prices made strong gains in the last two sessions of last week.
Brent crude rose 1.5 per cent to close last week’s trading at $71.83 a barrel.
Other sectors that saw share prices rise included information and technology, real estate, banking and retail.
After two consecutive years of decline, Vietnam’s instant noodle consumption started recovering in 2017 with the total sale of 5.06 billion packets, up 3 per cent compared to 2016 and 5.4 per cent compared to 2015.
According to statistics published by the World Instant Noodle Association (WINA), Vietnam is currently ranked fifth in the world in terms of instant noodle consumption, following China, Indonesia, Japan, and India.
According to WINA, around 100 billion instant noodle packets are sold annually worldwide. Global sales saw a growth rate of 40 per cent from $44 billion in 2013 to $61 billion in 2017, as revealed by Euromonitor’s statistics.
In Vietnam, the wide range of products available to customers thanks to the growing number of both foreign and local firms joining the market is one of the reasons behind the increase in consumption.
At present, there are approximately 50 enterprises producing instant noodles in Vietnam. Seventy per cent of the revenue is made by Vina Acecook, Masan Consumer, and Asia Foods, the three largest instant noodle producers.
Notably, Vina Acecook ranks first with 43 per cent of the market share in general and 50 per cent of the market share in the urban areas in particular.
While Vina Acecook’s products are dominating the urban market, the products of Masan Consumer and Asia Food are in the lead in rural areas, with the total market shares of 60 per cent.
Regarding the high-end instant noodle segment, imported products are overwhelming the local products with the average selling price of VND23,700-35,000.
Recently, the increase in instant noodle consumption increased the revenue of manufacturers.
Notably, Acecook Vietnam reported that its revenue in the first half of 2018 saw an increase of 8 per cent on-year, thanks to favourable market conditions.
Similarly, Colusa-Miliket Foodstuff also reported an increase of 10 per cent on-year in revenue during the six-month period, reaching VND281 billion ($12.13 million).
Vietnam is the most exciting frontier market in Southeast Asia, a nation of 93 million people whose lives are being transformed by its economic doi moi programme.
Vietnam endured decades of civil war and foreign occupations by colonial France, the Imperial Japanese Army, the US and even Deng Xiaoping’s China Vietnam is also the gateway to the Mekong Delta and offers the lowest cost, educated, technology work force for Japanese, South Korean, Taiwanese, German, Chinese and US investors due to its pro-business foreign investment programme. Vietnam is also a classic expanding consumer economy with youthful demographics, accelerating urbanisation rates and a rise in per capita disposal income.
Vietnam’s stock market VN Index has fallen by 22 per cent since it peaked in April. It now trades at 14.6 times estimated 2018 earnings, down from a multiple of 20 at its early April peak. In most emerging markets, such a valuation hit is a symptom of systemic financial crisis, as proven by recent events in Turkey, Argentina, Brazil and Pakistan. However, this is not the case in Vietnam. Earnings growth of 15 per cent is powered by largely domestic spending, not just export growth. The ruling Communist Party is committed to the privatisation of state assets. Vietnam now has lower wages for factory workers than China, making it a magnet for foreign direct investment by both Asian and US multinationals.
The Vietnamese government has lifted restrictions on foreign investment and chipmakers. Samsung and Intel have made multi-billion-dollar investments in next-gen manufacturing plants. Vietnam’s economic trajectory is reminiscent of China’s opening under the late Paramount Leader Deng Xiao Ping (“to get rich is glorious, it does not matter whether a cat is white or black as long as it catches mice”). In the last decade, GDP growth has averaged 6 per cent per annum while per capita income has tripled. The Vietnamese dong has been stable against the currencies of its main trading partners. True, King Dollar, rising US dollar interest rates and a Washington-China trade war could hit the Vietnamese stock market this autumn but we are now near the point where the risk-reward calculus is skewed in favour of the bulls, not the bears.
The Philippine stock market initially surged after the election of President Rodrigo Duterte, who benefitted from the macro reforms, increase in the tax rate, public spending deficit and reduction in sovereign credit risk engineered by former president Benigno Aquino. Yet the Philippine stock market, sovereign debt and the peso have not escaped the brutal selloff in Asian emerging markets due to trade tensions, a strong US dollar and monetary tightening by the Federal Reserve.
Second-quarter GDP has slowed by 0.3 per cent in the Philippines, a bad omen for the future. The Philippines is also expensive at 17.4 times earnings, a valuation multiple that can easily derate if economic growth disappoints again. Of course, if the growth slowdown is protracted, the Manila central bank could cut policy rates, a scenario that will mean a softer peso. This could mean the Philippine stock market index corrects to 7,000. Value exists in Vietnam but not in the Philippines.
Turkey’s financial turmoil has left emerging markets at their cheapest valuation level since early 2016, when a botched Chinese yuan mini-devaluation triggered contagion across the asset class. The MSCI emerging markets index now trades at 10.8 times forward earnings. Macro risks like a strong US dollar, a hawkish Federal Reserve and political shocks will continue to pressure specific markets like Brazil, Russia and Argentina, the indiscriminate sell off in the asset class has created opportunities in specific countries where the fundamental outlook and the risk reward ratio has moved in the investors favour. Take Mexico, for instance. President López Obrador wants a negotiated Nafta deal with the US since 80 per cent of its exports are headed north of the Rio Grande.
Russia is also extremely cheap at only six times earnings and a dividend yield of 6.8 per cent, though the Russian rouble fell on contagion risk from the Turkish currency crisis due to fears of fresh Congressional sanctions to punish the Kremlin for election cyber espionage and the Sergei Skripal poisoning case in Britain. Yet Russian equities will remain hostage to political risks and a bull market in Moscow is impossible without stability in the rouble.
Financial stocks in India, notably its leading private bank ICICI or Taiwan’s semiconductor/memory shares offer both inexpensive valuations and earnings growth potential. Turkey, Argentina, Venezuela and Nigeria, unfortunately, remain emerging markets where investment risks are far too high, making them no go for now.
The number of local homeowners listing their properties on Airbnb has been surging, but they do not file and pay tax, thus unnerving traditional hotel operators over unfair competition.
A hotel staff member (R) is seen seeking customers at a tourism fair in HCMC
Hotels have now proposed that authorities take measures to place the service under tighter controls, in line with prevailing regulations, to ensure fairness among hospitality enterprises.
Airbnb, the world’s leading short-term home rental service, provided thousands of available rooms for rent two years ago in major cities, such as HCMC and Hanoi. Many experts and traditional hotel owners, particularly small-scale hotels, have expressed their concern that Airbnb hosts will soon become their rivals, due to the proliferation of this rental service.
The Vietnam Hotel Survey 2018 report, which was issued in July, reveals that the number of room listings on Airbnb in the two cities has exceeded 16,000, equivalent to that of two-to-three-star hotel rooms in HCMC, the country’s largest city by population. In particular, data from the HCMC Department of Tourism shows that the city currently has 341 two-to-four-star hotels, consisting of 16,912 rooms.
As noted by a small-scale hotel owner in downtown HCMC, he has begun paying close attention to Airbnb, and following-up on its rapidly lengthening listings, as Airbnb renters are sharing customers with traditional hospitality operators, such as himself. Meanwhile, Airbnb hosts neither pay tax nor comply with hotel business regulations, resulting in unfair competition, said the hotel owner.
Also, a hospitality expert, Tao Van Nghe, said that it is hard to curtail the proliferation of home rental services like Airbnb, which presently affect many one-to-three-star hotels in the country. To cope with the rapid growth of home-sharing services, he supported the idea of maintaining control over them. For instance, tax agencies can consider levying a lump sum tax on Airbnb hosts, while tourism departments can manage them based upon criteria, such as evaluating the quality of rental residences, Nghe added.
Vietnam has yet to adopt a law managing home-sharing services, such as Airbnb, while countries such as Singapore, Thailand, and Japan already have specific regulations on these rentals, said Vo Anh Tai, deputy general director of Saigontourist Holding Company.
In particular, Thailand does not allow leasing residences through Airbnb with lengths of stay of less than one month. Renters violating this rule are subject to large fines. As for Japan, visitors leasing short-term lodgings must be approved by local authorities, adding that all residential buildings in Tokyo are no longer permitted to operate Airbnb services.
Tens of millions of salaried workers and employers in factories and industrial zones across the country are awaiting the wage recommendation from the National Wage Council.
At the meeting held by the council to discuss the minimum wage hike for 2019, the Vietnam General Confederation of Labor (VGCL) proposed a hike of at least 8% for the minimum wage while the Vietnam Chamber of Commerce and Industry (VCCI) suggested keeping the status quo. Each side has its own reasons.
According to a new report released by the VGCL, the current minimum wage can meet only 93% of the minimum living standard. Meanwhile, as per Resolution 27-NQ-TW issued recently, only two years remain for the wage hike so that by 2020 the region-based minimum wage must meet the minimum living standard. However, the resolution also states the principle of wage reform that the State will not interfere in the wage policy of enterprises and will encourage wage negotiation between employers and employees. It should be noted that the minimum wage is one of the strongest interventions in the manpower management of enterprises.
Obviously, all workers want to see their salaries increase. However, a hike in the minimum wage does not mean beneficial for all workers. According to the author’s calculation based on statistics of the survey on household living standards in 2016, the zero weighted rate of workers with salaries lower than or equal to the lowest minimum wage, at VND2.76 million per month for workers in Region IV, is about 20%. With more detailed calculation, the rate would be higher, as the minimum wage is based on individual regions with different living standards. However, it can somewhat tell the division in the interests of workers when the minimum wage is adjusted. The actual income of workers with salaries higher than the minimum wages may even be reduced, as they have to pay more for social insurance, which is mainly based on the minimum wage.
It’s not easy for the 20% of workers with salaries lower than the lowest minimum wage to earn more income, as even for enterprises, violations of minimum wage regulations still occur and are not yet handled properly. To cut costs when the salary fund swells, many enterprises will lay off workers, and those with salaries near the minimum wage level will be the most vulnerable. Then they will have to join the informal labor sector, with no labor contracts or social insurance. According to figures released by the General Statistics Office last year, the number of workers in this sector was nearly 18 million. Who are the people to protect their interests?
To enterprises, the impact of the minimum wage hike depends on many factors. A study by the Institute for Economic and Policy Research in 2017 shows that the minimum wage hike has a negative impact on profit, especially for private enterprises. Therefore, continuous minimum wage hikes may reduce the capital accumulation and growth of the private sector. The minimum wage hike also has an adverse impact on enterprises complying with labor regulations rather than on non-complying enterprises, and their growth as well.
It’s understandable that the minimum wage regulation causes heavy division among many stakeholders, including lawmakers, the trade union, enterprises, academics and policy lobbyists. In the world, 169 out of 187 countries, or up to 90% of the members of the International Labor Organization (ILO), have the regulation for minimum wages, but they are still engaged in endless debates about its effectiveness. In Vietnam, the minimum wage still cannot meet the minimum living standard of workers despite its fast hikes. In the 2010-2011 period, when inflation was high, the region-based minimum wage could meet only 47% of the minimum living standard of workers. In 2015, the level rose to 80% thanks to the fast pace of minimum wage hikes. According to the report of the VGCL, the current level is at 93%.
The minimum wage reflects the humanity of the State and is an instrument for rectifying defects of the labor market and ensure the minimum living standard for workers. However, incorrect determination of the minimum wage may lead to unemployment, especially for low skilled workers, and erode the competitiveness of enterprises. Therefore, the story of the minimum wage may probably has no ending. However, it should be noted that the ultimate goal of the minimum wage is to provide an appropriate and more complete social welfare system for workers.
In line with this spirit, apart from the minimum wage, the State can provide other forms of support, such as social housing, schools or hospitals near industrial zones. These efforts can not only help reduce the living cost for workers but also minimize their anxieties, so they can focus on their work and thus indirectly increase their productivity. In addition, they can help maintain security at industrial zones. According to the report of the VGCL, there were 131 strikes across the country in the first six months of this year, most of which (103) at foreign-invested enterprises and low-income industries like textile, garments and footwear.
Intensive minimum wage debates may make people forget that the life of workers is also affected by many other things, those which can be done right away without debate.
The Vietnam Innovation Network, launched Sunday by the Prime Minister, aims to connect Vietnamese scientists across the world.
“The new network will enable Vietnamese experts working in technologically advanced countries to assist their home country in preparing for the Fourth Industrial Revolution,” Prime Minister Nguyen Xuan Phuc said at the launch.
The network has been joined by over 100 Vietnamese scientists and tech experts living overseas as well as hundreds of their peers in Vietnam.
Pham Minh Chinh, head of the Central Organizing Commission of the Communist Party of Vietnam and member of the Party Secretariat, expressed high regard for the network and its role in Vietnam’s push for “comprehensive development.”
Deputy Prime Minister Vu Duc Dam called for Vietnamese intellectuals overseas to express their love for their country through actions to help Vietnam develop and not miss opportunities brought forth by Industry 4.0.
Several Vietnamese scientists working overseas spoke at the launch and proposed ways for Vietnam to take advantage of advanced technologies, adopt new market approaches and attract venture capitalists from around the world.
Dr. Bui Hai Hung, a researcher at Google’s AI company DeepMind in the U.S., said that while there were many top AI experts of Vietnamese origin working across the world, Vietnam has yet to put itself on the map in this area.
He urged Vietnam to establish an AI Center, develop IT infrastructure and invest in training programs for cloud computing.
Associate Professor Ho Anh Van, who works in Japan, also affirmed that there are many Vietnamese teaching or researching in top Japanese universities, as well as experts working for top tech firms in the country.
This network would enable all Vietnamese to work and cooperate to help transfer technology back to their home country, he added.
To prepare for the Fourth Industrial Revolution, Prime Minister Phuc has approved a long-term strategy on scientific and technological development and innovation with vision, including Industry 4.0, until 2035, Minister of Science and Technology Chu Ngoc Anh said at the event.
Over the past two years, Vietnam’s ranking in the Global Innovation Index has jumped 14 places to 45th among 126 countries and economies, with many businesses focusing on investing in research and development, he noted.
However, Anh stressed that to develop further, Vietnam needs the assistance of Vietnamese scientists and experts living overseas.
The new innovation network was an important step in connecting them with the country, he added.
The launch of the Vietnam Innovation Network was the first event in a five-day program that also includes talks between scientists and the government and relevant ministries as well as visits to hi-tech parks in Hanoi and Ho Chi Minh City.
