Vietnam News
A café in HCM City offers customers a very special atmosphere as it is home to up to 40 parrots of 20 different species.
According to an article on Dtinews, the café located on Nguyen Van Huong Street, District 2, has been open since 2014.
Scientists say the secrets to success in online dating are to aim high, keep your message brief, and be patient.
Playing “out of your league” or dating people considered more attractive than you, is a winning strategy, according to a new analysis of internet daters in the US.
Men had greater success when they approached women they believed were more desirable than themselves.
Related: Brunette dating
The new study has been published in the journal, Science Advances.
Internet dating has become the dominant form for those seeking romance – it’s the third most popular means of meeting a long term partner and around half of all 18-34 year olds now use dating apps.
In this new report, scientists used a Google-inspired algorithm to understand the desires of people wanting to match up. They analysed messaging and demographic patterns among heterosexual users in New York, Boston, Chicago and Seattle.
They found that both men and women contact potential partners who are, on average, around 25% more desirable than themselves.
Your “desirability”, they found, is not just about the number of messages that you receive, but who you receive them from.
If your messages come from people who have themselves received lots of messages, that makes make you more desirable, according to the study.
When women approached men, they received a response 50% of the time.
When men aimed at women who were rated as more desirable than themselves, their response rate was 21%.
That might seem low but the authors of the study suggest that online daters were wise to take the risk.
“I think a common complaint when people use online dating websites is they feel like they never get any replies,” said lead author Dr Elizabeth Bruch from the University of Michigan.
“This can be dispiriting. But even though the response rate is low, our analysis shows that 21% of people who engage in this aspirational behaviour do get replies from a mate who is out of their league, so perseverance pays off.”
Generally, most people received a handful of replies at best, but a few people received many more. One woman in the study was bombarded with a new message every half hour, from over 1,500 different people in the month long study.
As the data were wholly anonymised, we can only speculate about what it was about this woman that struck the attention of so many men.
The secret to success – keep it brief
Both men and women tended to write longer messages to a more desirable partner, sometimes up to twice as long, but the study found that this barely makes any difference to the response rate.
Dr Bruch said: “I feel that we can save people a lot of work in not writing longer messages.”
Why does writing a longer message not work?
“We don’t really know. One of the reasons might be that people that are desirable may have so many messages in their inbox, they don’t read most of them. That lovingly crafted message that you spent two hours on may go unopened,” said Dr Bruch in an interview with the BBC.
Co-author Professor Mark Newman, also from the University of Michigan, said: “Playing out of your league is one way to reduce the rate at which you get replies. That does not seem to stop people from doing it, and it seems to be standard behaviour. There is a trade-off between how far up the ladder you want to reach and how low a reply rate you are willing to put up with.”
If you aren’t getting any replies, then be patient. Your potential dates might be judging the market before committing to reply at all.
Although the maths is complicated, research has shown that your chance of picking the best date is highest if you reject outright the first 37%. You should then choose to date the next person that’s better than all the previous ones.
Deal-makers and deal-breakers in dating
Previous studies have shown that your dating profile should be roughly 70% about yourself, with the rest about what you’re looking for in a partner. But the problem with this thinking is that it assumes that people are going to read your profile or your message in the first place.
Dr Bruch said: “Women could afford to be more aspirational than they are. Their reply rates are already high enough that they can afford to take a hit.”
You might also want to think about when you reply. Dr Bruch added: “People’s behaviour at two o’clock in morning looks very different from their behaviour at 8 o’clock in the morning. Which is better depends upon what your goals are.”
Man’s not hot
The study showed that women tended to use more positive words when communicating with more desirable partners, whereas men tended to play it cool, showing a slight decrease in positive words.
Reinforcing a well-known stereotype, women’s view of men’s desirability peaked at around the age of 50, whereas women’s attractiveness to men declined from the age of 18.
The authors stressed that this does not mean following these stereotypes is the key to successful dating. People are able to make choices.
Dr Bruch said: “There can be a lot of variation in terms of who is desirable to whom. There may be groups in which people who would not necessarily score as high by our measures could still have an awesome and fulfilling dating life.”
Of course, making contact with dates online is only the first step in courtship. Most messages ended in failure.
Previous research has shown that when people are able to spend proper time together, their characters become far more important than the superficial information that they receive on a dating app.
“I am fascinated with the rules of dating, this paper is the initial leg of that research effort. Once you get past that first response, it is not clear how desirability continues to matter. There is some evidence that people focus on the most superficial aspects of their potential romantic partners at the earliest stages of the relationship and later on those things don’t matter so much.”
According to a report on BBC
Ex-football star Michael Owen is due to make his presence in Vietnam on August 13-14 to have a fan exchange as part of an event launched by a technology company involving his investment.
According to a report on VOV his primary goal during this trip to Vietnam is to seek for the training of young Vietnamese talents as the 33-year-old British striker is destined to land his investment in football academies in the Southeast Asian nation.
Born in 1979, Michael James Owen once played as a striker for Liverpool, Real Madrid, Newcastle United, Manchester United, Stoke City, as well as for the UK national team.
After ending his football career, Owen has become involved in multiple fields such as working as a football commentator, investment in horse racing, property, and blockchain technology.
Over the past three years, he partnered with a few football academies in China and the Middle East.
On a bright Sunday morning, 10-year-old Doan Nhat Minh joins his friends at an English class to take a walk around Hoan Kiem Lake in downtown Hanoi.
The weekend pedestrian street is bustling with locals and tourists going sight-seeing.
Yet today Minh and his friend do not simply stroll leisurely around the lake. They eagerly seek out foreigners to talk with them, collect their signatures and compete for the award for the pair that speaks with the most foreigners.
According to a report on VNS, they stop every group of foreign tourists to start conversations and meet a warm response.
Their topics range from favourite foods, colours and weather to impressions of Vietnam.
“I have just attended the class for one week,” Minh said. “I found it interesting with a lot of games and fun. I just want to learn to communicate with foreigners. I love this seeking and chatting game.”
The game is a regular activity of the free English class for children based in Phap Van Pagoda in the southern outskirts of Hanoi, launched by teacher Tran Thi Huong Duyen.
“We organise the extra class activities like this only ever three weeks, as we are lacking volunteers to manage the teams,” Duyen told Viet Nam News.
Duyen said she runs three classes every Sunday morning for three age categories: kids grades 1 – 4, juniors grades 4-8 and teenagers grade 8 through high school.
Duyen said all the teachers of the class work for free, serving students from all over the city.
“We aim to serve pupils who cannot cover the fees at a language centre,” she said. “When I was small, I also wanted to learn English but did not have money to cover the costs. I used to wish for a free class like this.”
Duyen explained she wanted to use the pagoda space to run the class as she wants the children to not only learn English lessons but also develop a consciousness of ethics and justice at a young age.
“The pagoda is a solemn and tranquil place,” she said. “Children can learn more effectively in such an atmosphere.”
Le Ngoc Diem My, 10, has attended the class for one year and said that she was more confident speaking English with foreigners.
“I’m longing for the class during the weekdays,” she said.
Nguyen Thi Thanh Van, My’s mother, said she visited Phap Van Pagoda and by chance discovered the free English class.
“I think it’s a good model for families with meagre income like mine,” she said. “My daughter now can speak English very well and I don’t have to pay anything.”
She said the teachers print out handouts and lure children with many games.
“The classroom is a prayer hall and children’s tables are the tables that monks use to hold their praying books,” she said. “In this way, the pagoda is really an open space for needy people.”
Duyen said the organisers had struggled with many difficulties since launching the class in July last year.
All 25 volunteers have co-ordinated with one another and received supports from the pagoda to run the class.
Children learn from various handouts prepared by the teachers, which are combined with games to turn the class into an easy-going, relaxing and funny learning place.
“Students are not under any pressure in terms of marks or academic records,” she said. “They learn naturally according to their capabilities. They don’t have to be scared of anything like they may be at school.”
Duyen tries to keep each class for a maximum three months and enroll new students so that more and more children can get the knowledge freely.
Volunteers are mostly teaching English at language centres in the city to earn their living.
Duyen herself has joined various charity trips to other localities.
“We teach students in the provinces and bring them the chance to exchange with foreigners,” she said.
Duyen revealed that she wanted to open more charity classes in other areas of the city to meet the increasing demands of needy learners.
“Many students in our class have to travel 20km away from the other side of the city,” she said.
Parent Pham Xuan Quyen is grateful for the class.
“My son has learnt a lot from the class,” he said. “Such a free class should be open in more areas and get support from everyone. I intend to send my smaller son to the class next year, when he is grown up enough.”
Duyen said that since last July the centre has hosted nearly 200 learners.
“They just come and study and don’t have to pay anything,” she said.
“I think Duyen’s project is very humane and she’s implementing it well,” said Pierre Kornig, a retiree from France, who has joined the class as a volunteer. “I like children so I can try my best to help them.”
“Almost all ancient houses that contain sediments of many generations have gradually disappeared from Hanoians’ minds,” lamented painter Nguyen The Son at the recent exhibition “Hanoi Architects and the city”.
The painter is afraid that the gradual disappreance of old architectural blocks or collective houses can affect Hanoi’s vista.
Hanoi has the highest number of old apartment buildings in Vietnam, with more than 1,100. After dozens of years of survival, these collective houses have become dilapidated, over-crowded, and dangerous, undermining the safety of thousands of local residents.
However, the disappearance of these historic constructs that stood witness to the ups-and-downs of the city’s history will bring bitter regret to Hanoians and cultural researchers.
Disappearing old collective houses
For those born in the 1950s and 1960s, the series of the four or five-story collective houses on Kim Lien, Pham Ngoc Thach, Nghia Tan, and Nguyen Quy Duc street are a special sight from their childhood. The old zones have stood there since the mid-twentieth century. Nowadays, skyscrapers are coming to dominate the landscape.
In the old days, the first floor of the collective was the place to open shops, grocery stores or restaurants. But recently, these old zones are gradually replaced by high-rise apartment buildings. The remaining few are degraded and the remaining residences shrink in number.
Surveying more than 70 communal houses in the city, painter Nguyen The Son found that many of them have disappeared, while in some, only the upper parts remain.
“Once back from a trip, I was thrilled to see all the advertisements and billboards on the way home from the airport. The scene signals a change in Hanoi’s traditional culture,” Son said.
Hanoi’s Old Quarter also changed a little, with numerous old constructions of unique architecture from the French colonial period being demolished and replaced by high-rise buildings for business and tourism purposes.
Giving special attention to these old collective houses, Jean Noel Poirier—former French ambassador to Vietnam—said: “I think if those Russian architects ever come back to these complexes, they will feel like this was Mars because the city has changed a lot from their initial designs.” Though understanding that these condominiums will gradually disappear from future urban planning, the diplomat still regards the old collective houses as valuable pieces in Hanoi’s treasure box of history.
Treasure ancient architecture
The disappearance of Hanoi’s ancient cultural architecture is due to the selfish minds who are only interested in building and making a profit for themselves. Economic value is now a priority in many people’s minds.
“These old collective houses should be kept and gradually turned into sight-seeing destinations or museums,” said painter Nguyen The Son. He believes that it is important to respect and preserve the old architecture by developing and renovating them into attractive hubs for the younger generation.
On the other hand, architect Tran Huy Anh said that the city has never witnessed such a huge volume of construction works. The growth of the trading centers and high-rise business buildings is a major issue that requires intervention of not just individuals but society as a whole.
According to a report on HanoiTimes
Danang may not be the first place you think of when you think of Vietnam. However, the InterContinental Danang Sun Peninsula Resort is reason enough to go. A destination property, here they have everything – from the most exquisite natural wonders to crashing cerulean waves and biscuit-coloured cliffs to the hotel’s private gondola, a world-class spa, an on-site nightclub, a Michelin-starred restaurant, library, cooking school and so much more.
The consideration to design is unparalleled. Architect Bill Bensley lived on site for two years while finalising this resort. And his commitment shows. Each room and space is a riotous display of colours, textures and artefacts. Bill travelled the world finding books, cushions, local treasures and so much more, and has placed these authentic items from his world adventures throughout.
The property is large, with a total of 200 rooms, including 16 penthouses and villas. And the room sizes are more than generous. The Club Peninsula suites all have ample terraces, making it alluring to practically never leave your enclave, while the fridge and minibar are actually housed outside, alongside your private day-bed, sofa and chairs. It’s fun and pampering.
The hotel’s latest addition, the three bedroom Bai Bac Bay Villa, has to be one of the most opulent rooms in all of Vietnam. Secluded from the majority of other rooms, it features sweeping and unobstructed views of the private bay. Inside, the design feels a little like a Pollock painting, with its vast array of bright, unapologetic colours, and at 500sqm, one could practically. It also features three separate private pools, the central one being large enough to genuinely swim. There’s a well-equipped and very modern kitchen – no expense has been spared – as well as a dining room, making it so the expression ‘there’s really no reason to leave’ rings true.
Of course many of the suites come equipped with their own pools – it’s just perfection to wile away an afternoon this way. There’s also a pool near the beach, a favourite for young kids and families. The adults-only infinity pool, the Long Pool, which offers peace and respite as well as sweeping views of the resort and surrounding peninsula. This part of Vietnam is lush and verdant, it’s alluring at every corner you look. Of course, there’s also 700-metres of private beach, dotted with sunloungers and attentive staff members. There’s also an on duty lifeguard on the beach, which may comfort some less advanced swimmers, as the water can be a little chalky at time.
Having been to many, the spa is, I think, my favourite anywhere in the world. Each of the Harnn Heritage Spa villas are individual treatment spaces that have a square footage rivalling my entire flat in London. Overlooking a private lagoon the views are outrageously beautiful and instil peace and serenity from the moment you enter. Having won practically every spa award in Asia, it is an unparalleled concept. Combining traditional Asian techniques and naturopathy, many of the treatments are infused with local herbs and botanicals. And everything here is designed around a philosophy of rebalancing. They’re also highly personalised and before you begin, you participate in a mixology consultation where you complete a details questionnaire around scents and your preferences so the therapist can create an bespoke oil for you.
There is also an on-site mani/pedi studio by Bastien Gonzalez. The French podiatrist with an A-list clientele has developed a signature method where none of his nail treatments use water – as he believes that ultimately dries out the skin and the nail-bed, and instead he introduces minuscule drills tipped with diamond dust, followed by a polishing technique he learned from his grandmother that uses a chamois-leather cloth and a pearl buffing cream. To finish, the therapists recommend instead of polish, simply enjoying the nail’s natural shine.
There are lots of idiocracies and quirks to this property, much of which takes its lead from Bill Bensley’s eclectic design. There’s a cable car called the Nam Tram that cuts through the resort and is staffed with an attendant 24-hours a day. The resort is divided into levels, a bit like a wedding cake and each section has a name, the highest being Heaven Level. This is also how to navigate the stops on the train. There’s also an eccentric nightclub at the property, a maze of rooms and bars. There’s also a vast conference centre, the APEC Economic Leaders’ Meeting was held here in 2017, as well as a number of private meeting spaces, each named after a different Hollywood icon. And note, as is to be expected of a hotel of this calibre, this is a spot for the well-heeled. Around the pool and restaurants you’ll find an incredibly chic mix of predominately South Korean, Japanese and Singaporean travellers – expect Goyard bags and Chanel shades.
As a generalisation, food in Asia is hard to beat – the freshness of the ingredients, the fragrance of the dishes, the blend of unexpected flavours. There’s a magic to it. And that can certainly be said of the four restaurants here at the hotel. Citron is the hotel’s main restaurant, serving breakfast, lunch and dinner from its sunnily designed space. Food is casual, authentic and the portions are generous. They also often host decadent buffet meals where the menu ranges from Western to Italian to Asian. The outside booths at Citron sit at about 100 metres above the beach – try to sit at one of these if you can.
The Long Bar is playful and inviting – with huge day-beds to lounge and eat on and rustic swinging chairs throughout. Like the rest of the hotel, the colourscape is loud and riotous – sunny yellows and jailbird black and white strips lead the aesthetic. The cocktails are fruity and fun, just what you want when in repose. The signature drink is fresh orange juice combined with Southern Comfort and a splash of Champagne.
The Barefoot Cafe does all-day food and snacks – casual seafood, sandwiches and scrummy desserts. On certain evenings they light welcoming candles and host a barbecue buffet – this is not to be missed. It’s fuss-free and delightful.
The hotel is incredibly proud of La Maison 1888, its fine-dining Michelin-starred restaurant my Pierre Gagnaire. The French chef built his reputation in Paris at his eponymous restaurant, which currently boasts three Michelin stars. The Danang restaurant is beautifully designed, so that each perfectly set white-clothed table feels intimate and has a sense of drama. Gagnaire describes himself as a chef who cooks from his heart and that rings apparent in his menu and the presentation of this world-class cuisine. The menu changes often and you certainly won’t leave hungry.
For those staying within an elevated room category, there is also a club lounge, which flanks Citron restaurant. Here those with access can enjoy complimentary tea and coffee throughout the day, continental breakfast, afternoon tea and a selection of evening cocktails and canapés.
A hotel in a class of its own, at the InterContinental Danang Sun Peninsula Resort you have sun, sand and endless things to try and occupy yourself with. And everything will be designed and delivered with the care of this truly hospitable hotel staff. As here, the answer to the question jump is, how high?
By Bridget Arsenault, Forbes
Titled “The Push of the Decade,” the first session of Vietnam M&A Forum 2018 explores the new driving force to boost the Vietnamese M&A market.
In the session, KPMG Vietnam provided an overview of the past 10 years in the Vietnamese M&A market. Deputy Prime Minister Vuong Dinh Hue shared his thoughts on the outlook of doing M&A, as well as the Vietnamese government’s efforts to push the economy forward in a sustainable manner.
The speech by Warrick Cleine, chairman and CEO of KPMG, pointed out challenges in the M&A market. He raised the question of what the government and the business community need to do to improve the M&A market in the new era.
Indeed, the Vietnamese M&A market is full of potential targets. According to Tran Vinh Tuyen, Deputy Chairman of the Ho Chi Minh City People’s Committee, M&A activities remain robust in Ho Chi Minh City with around 30 deals in the recent time. Also, another 39 companies will be equitised by 2020, especially in the fields of commerce and logistics. The city is looking to select reliable partners with high-technology, which will maximise the benefits for both businesses and the government.
Le Song Lai, deputy CEO of State Capital Investment Corporation, said that around 140 companies will be equitised by 2020, including big corporations like Vinamilk and FPT. If the equitisation process is successful, SCIC is expected to collect VND100 trillion ($4.3 billion) for the government, which will ultimately contribute to the improvement of the legal framework and the growth of the M&A market.
Vuong Dinh Hue – Deputy Prime Minister
Vietnam focuses on restructuring five areas of finance-banking, public sector, public investment, budgetary revenue, and public administrative units. For banking and finance, the government continues its efforts to resolve bad debts, which reduced from 10.8 per cent at the beginning of 2016 to 6.9 per cent in the first six months of 2018. The government is also boosting M&A activities among commercial banks and credit institutions.
In 2017, the number of equitised companies has increased 6.5-times against 2016. The government has collected VND2.5 trillion ($107.5 million) in 2016-2017, which is double the figure of the previous period. The government will continue to speed up the equitisation and divestment process. On top of that, the government is committed to complete the legal framework, strengthening institutional reform as well as improving macroeconomic fundamentals with a view to facilitate M&A activities.
Nguyen Chi Dung – Minister of Planning and Investment
Vietnam is preparing to review 30 years of FDI attraction. The conference is scheduled to take place on October 4 in Hanoi with a view to summarise and evaluate the achievements after 30 years of FDI attraction as well as create a new FDI attraction strategy. Following the conference, the government will put forward solutions for sustainable and selective FDI attraction. The question is whether M&A will continue to grow in Vietnam and what should be done to drive the M&A market forward.
Indeed, M&A is shifting capital from low-efficiency sectors to more profitable fields. Investors assess and evaluate the growth of the economy, market potential, as well as relevant policies to strike deals. It is apparent that M&A deals are on the rise in Vietnam thanks to the high economic growth. M&A also offers a flexible approach for investors to expand in the market.
Warrick Cleine – Chairman and CEO, KPMG in Vietnam and Cambodia
The Vietnamese M&A market has enjoyed a compound annual growth rate of 17 per cent between 2007 and 2017. The number and value of M&A deals are on the uptrend. The largest M&A deal was the $4.9 billion deal between ThaiBev and Sabeco in 2017.
The main source of investment in the next three years is expected to come from Japan, South Korea, China, Thailand, Singapore, and Hong Kong. In particular, Chinese investors are expected to be more active due to the proposed Regional Comprehensive Economic Partnership (RCEP).
Vietnam has the highest economic growth rate in Southeast Asia, which is opening up opportunities for investors. The most promising sectors for M&A include food and beverage, pharmaceuticals, life sciences, and real estate.
However, there are some challenges during the due diligence process in Vietnam, including the quality of historical information, responsiveness, preparedness, willingness to share information, legal issues, tax issues or exposures as well as limited information flows.
Seck Yee Chung – Partner, Baker & McKenzie
Foreign investors are looking at the government’s efforts and commitments to opening the economy, improving the business environment, and attracting foreign direct investment. They hope to see harmony in the legal framework, learn about regulatory changes as well as the possibility of raising the foreign ownership limit further in the future.
The changes are indeed taking place and many M&A deals are in the making. New economic models are emerging in the Industry 4.0, including e-commerce and digital transactions. Hence, the government should have measures in place to support these new business models.
Dominic Scriven – Executive chairman, Dragon Capital Group
In the past 10 years, Vietnam has witnessed significant changes in the M&A market. Moving forward, M&A will develop in line with demand. Particularly, investors will become more selective with a focus on internal forces. Investors look at the target companies, their competitiveness, scale, strategy, and successive leadership. However, there is a lack of potential targets for M&A.
At present, the scale of the Vietnamese M&A market is comparable to that of Malaysia and Indonesia, despite having a higher population than Malaysia and lower than Indonesia. The growth of M&A should be stronger.
According to a report on VIR
Asia’s original fast-growing ‘tiger’ economies in the 1970s and 1980s were Hong Kong, Singapore, Taiwan and South Korea. The baton then passed to a new generation of fast growers: Thailand, Indonesia, Malaysia and, more recently, India. Asia’s latest ‘tiger’ however, is Vietnam with the latest data showing its economy roaring in 2018 as it emerges as one of the world’s fastest growing economies, QNB noted in its weekly ‘economic commentary’.
According to a report on The Peninsula Qatar, a range of indicators show Vietnam’s booming economy. GDP growth raced ahead by 7.1 percent y/y in the first six months of 2018; the economy’s fastest growth since 2011. The manufacturing sector is leading the charge with output up 13.1 percent y/y in the first half of the year. Construction is also playing a strong supporting role with output in that sector up 7.9 percent y/y over the same period.
According to QNB analysts, the counterpart to Vietnam’s manufacturing boom are surging exports. Monthly trade statistics can be highly volatile but the latest data show goods exports up over 20 percent y/y in the first half of the year, following growth of over 17 percent in 2017 as a whole.
Manufacturing and export success has been driven by Vietnam’s ability to attract large foreign direct investment (FDI) inflows into sectors such as clothing, footwear and, above all, electronics. It is now estimated for example that one in 10 smartphones worldwide are now made in Vietnam. Latest data show FDI inflows also booming. These were worth an estimated $13bn in H1 2018 with a 11 percent y/y growth. To put these FDI inflows in context, Vietnam’s GDP in 2017 was worth around $220bn according to the latest data from the International Monetary Fund (IMF).
Vietnam’s economic success is noteworthy as it comes at a time when many developing economies are struggling to match the success of Asia’s earlier ‘tigers’ and sustain rapid economic growth through manufacturing and export booms. India’s export sector for example has laboured in recent years despite a vibrant economy in other respects. By contrast, Vietnam has seen trade soar to nearly 100 percent of GDP; up from around 60 percent in 2005 and 75 percent as recently as 2014.
The foundation of Vietnam’s success is obvious: favourable demographics and low wage rates. Political stability also helps as does the country’s geographical location. Vietnam is also close to major global supply chains, particularly in electronics, which have emerged over the last decade or so.
But these factors are far from specific to Vietnam and so only explain a portion of its success. Recent research from the Brookings Institute think tank in the US highlights that it has been the ability to build on these solid foundations through good policies is what really sets Vietnam apart.
Three factors in particular have been critical. First, while many in the West are questioning the benefits of free trade, Vietnam has zealously pursued trade liberalisation on both a multilateral and bilateral basis. Vietnam, for example, has recently concluded a free trade agreement with the European Union which eliminates nearly all tariffs between the two. Trade agreements have dramatically lowered the external tariffs its exports face, helping integrate Vietnam into the global economy and further accelerating FDI investments.
Second, Vietnam’s investments in human capital i.e. education have been impressive, helping the country maximise its demographic potential. A stand out is that the OECD’s latest Programme for International Student Assessment (PISA), which tests high school students in maths, science and other subjects, ranked Vietnam an impressive 8th out of 72 participating countries; ahead of many leading OECD economies.
Third, investments in human capital have been supported by progress in improving the country’s business climate. Vietnam has steadily moved up in both the World Economic Forum’s competitiveness index and also the World Bank’s ease of doing business survey. Investments in physical infrastructure such as power generation, roads and bridges and container port capacity have been vital in supporting Vietnam’s rich human capital.
Impressive as Vietnam’s recent economic achievements have been, the country cannot afford to rest on its laurels. The very nature of its success brings with it vulnerabilities and future challenges. As already highlighted, FDI has been largely concentrated in the textiles and electronics sectors. The jobs created by these investments tend to be relatively low-skill and low-wage with little value added. This leaves Vietnam exposed to the cross-fire of a US-China trade war (along with Asian other economies enmeshed in the electronics global supply chain such as Taiwan and South Korea) in the short term. Longer-term, Vietnam’s competitive advantage will necessarily fade as the country climbs the development ladder and wage rates and living standards improve.
New drivers of economic development will need to found to ensure that Asia’s newest ‘tiger’ economy does not risk extinction in a few years. There are clear reasons for optimism however. Vietnam’s high PISA scores suggest that the country should be able to move up the global value chain more easily than most emerging markets. Prospects for rapid growth in the service sector are also fair with tourism a prime candidate to help drive economic growth over the longer-term. In fact, with the latest data showing tourist arrivals up nearly 25 percent y/y in June, this growth engine is already helping the country power ahead.
Idemitsu Kosan and Teikoku Oil signed the agreement with the Vietnamese state-owned oil and gas giant, PetroVietnam, on July 31. They will help develop and sell the gas located in the Sao Vang-Dai Nguyet project.
Zachary Keck, the former managing editor of The National Interest reports, two Japanese firms have signed an agreement to help Vietnam develop and sell gas located in the East Sea of Vietnam.
Idemitsu Kosan and Teikoku Oil signed the agreement with the Vietnamese state-owned oil and gas giant, PetroVietnam, on July 31. They will help develop and sell the gas located in the Sao Vang-Dai Nguyet project.
“The development of the project is significant since exploration and production activities have slowed down in recent years because of tensions in the South China Sea, the ongoing corruption crackdown and persistently low crude oil prices,” a PetroVietnam official told Reuters of the agreement.
The Sao Vang-Dai Nguyet project will develop gas located in Blocks 05-1b & 05-1c in the East Sea. A map by Greg Poling, the director of the Asia Maritime Transparency Initiative at the Center for Strategic and International Studies, showed that “most (and probably all) of the block[s]” are within China’s so-called nine-dashed line.
The blocks are also near projects being carried out by Spanish energy firm Repsol and Russia’s Rosneft.
Vietnam is believed to have between 3.3 billion and 4.4 billion ton of crude oil and gas reserves in the waters surrounding it. PetroVietnam produces between 22 million and 33 million tons of oil equivalents annually from the blocks, according to The Japan Times.
The same source notes that from the years 1986 to 2009, PetroVietnam accounted for 20 percent of Vietnam’s GDP and 30 percent of the government’s revenues.
If the Sao Vang-Dai Nguyet project goes through, it will be a much-needed bit of good news for PetroVietnam, which has fallen on tough times as of late. In the first seven months of this year, for instance, Vietnam’s crude oil production was down 11.3 percent from a year earlier.
The plan now is for the Sao Vang-Dai Nguyet project to start producing commercial gas by the third quarter of 2020. Idemitsu Kosan will own 43 percent of the project followed by Reikoku Oil, which will hold around 37 percent. The remaining 20 percent will go to PetroVietnam.
Having Japanese firms with economic interests in the South China Sea could be another reason for the Japanese government to increase its involvement in the disputed waters.
Last month, news reports said that Tokyo was planning to send one of its massive helicopter destroyers on tour through the East Sea and the Indian Ocean later this year.
The Kaga, which is the second of Japan’s Izumo-class helicopter destroyers, will leave Japan in September for a two-month tour that will include stops in Indonesia, India, and Sri Lanka, according to a Reuters report.
The lead ship in the Izumo-class made a similar trip last year.
Creation of a company in Vietnam is slightly different to what an entrepreneur from another country might be used to. While the opportunities for companies based in Vietnam are compelling, the company registration process is more complex and bureaucratic than the USA, Australia and Singapore, for example.
Fortunately, the days of needing 4-5 months to register a company have passed, as has the insistence on local partners. Steady improvements are being made to processing times too. Nonetheless, there is some work to prepare for the formation of a foreign-owned startup in Vietnam. This article provides an overview.
A registered company is key for your startup to enter into contracts, employ staff and collect revenues in Vietnam. A foreign-owned Limited Liability Company (LLC) is the most common company structure for foreign-owned startups in Vietnam.
For this type of company, you’ll go through a two stage process. You’ll need approval from the Department of Planning and Investment (typically in the form of an Investment Registration Certificate, IRC) for your project in Vietnam, and then an Enterprise Registration Certificate (ERC) for the creation of your company. The official timelines are about 45 days for the completion of these stages but preparation is key.
Delays are often encountered where the required preparation has not been completed. There are four key considerations:
1) Clarify your Business Lines and Scope
Vietnam’s accession to the WTO required that the nation opened its economy to foreign investment in a wide range of business lines. The majority of tech startups will target ‘software development’ or ‘consulting’ business lines. Applications for these business lines are relatively straight-forward.
However, some business lines remain restricted to foreigners in Vietnam (for example, real estate and finance). Some of these other fields remain subject to case-by-case review or conditional approvals (eg. trading), caps on foreign ownership (eg. tourism) or require licenses and sub-licenses (eg. F&B).
2) Check your Capital and Proposed Scale
Vietnam requires you to prove you’re serious about your business. While there isn’t a strict law on what represents the minimum capital, approval from the Department of Planning and Investment will only be issued with proof of sufficient capital for your nominated business line. This capital must be deposited soon after creating the company.
3) Get a Company Address
Physical proof of your company’s planned location in Vietnam is key to your application. This can present a chicken-and-egg argument, as you will need to be incorporated before you can sign a lease, and you can’t incorporate until you have a signed lease. An MOU with your intended address may suffice, but there are other practical solutions to this issue.
4) Confirm your Ownership & Management Structure
You will need to nominate the owners of the business and verify their credentials. Note that the supporting documents required for a foreign owner that is a company are different to those documents required if the foreign owner is an individual. You might be tempted to form a Vietnamese-owned company to avoid some of these hassles, but remember that this incurs some risks and will complicate the payment of any dividends to foreigners.
The management structure underneath this may vary depending on how many owners your company will have. You may also need to think about a Controller and Chairman at this stage.
Get Expert Guidance
Of course, there are many other options when it comes to company formation, including other company structures (such as a Joint Stock Company) and activity codes (including ECommerce). Contact GBS for further information on the establishment of a company in Vietnam.
GBS – one of the best business law firms in Vietnam with a network South East Asia, Middle East, Japan, HongKong, Malta and Poland – offers simple direct advice to start your operations in Vietnam. They provide the help you need to understand your options, obtain your business license and complete the registration of your own company.
Email: info@gbs.com.vn or SMS | iMessage | WhatsApp | Viber | Hotline: +84903189033
For more information on GBS’s services, visit the website: https://gbs.com.vn
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A fire in Vincom Landmark 81, a super-tall skyscraper in Ho Chi Minh City, Vietnam — was reported today afternoon at about 3:3- p.m. No one was injured, fire officials said.
According to Fire Department Chief of Binh Thanh District, a caller reported that smoke was coming from level 64 of the building. Zing News a local Vietnamese media reports.
Fire Department Of Binh Thanh district responded to the alarm, they sent 8 fire engines with 42 fire police officers, firefighters and discovered that smoke was coming from the high level of the building.
Fortunately sprinklers had held the flames in check preventing them from spreading. That allowed the local team to quickly extinguish the fire.
The management of the building also confirmed that, flames caused by welding while some workers doing their job, but they get it under control right after that.
Landmark 81 is a super-tall skyscraper in Ho Chi Minh City, Vietnam, that was designed by the British design, engineering and consulting firm Atkins. The investor and primary developer for the project is Vingroup, a Vietnamese corporation that is also the country’s largest real-estate company. Landmark 81 is the tallest building in Vietnam, the tallest completed building in Southeast Asia as of July, 2018 and the 14th tallest building in the world.
The 461.5 metres (1,514 ft) tall, 81-storey building is built on the western banks of the Saigon River in the city’s Binh Thanh District, located just north of Ho Chi Minh City’s historic center and to the immediate south of Saigon Bridge. The tower is at the heart of the $1.5 billion high-end mixed-use urban area called Vinhomes Central Park, and was scheduled to be inaugurated in July 2018. The development comprises hotel and conference facilities, luxury apartments, high-end retail spaces, restaurants, bars, and a multi-story observation deck at the tower’s crown.
A seminar on developing real estate in Vietnam, named ‘Vision and Prospect’, was held in Ho Chi Minh City today by the Vietnam Economic Times, featuring the participation of 300 leaders and enterprises.
At the event, Assoc. Prof. Dr. Vu Dinh Hoe, Deputy Editor-in-Chief of Vietnam Economic Times, said that real estate is a big asset of each country. The real estate market accounts for 40% of material wealth, 30% of the total activities of the economy in meeting the demand of living, and is a great asset of each organisation, household and individual, he added.
Real estate is also an effective investment channel for mobilising abundant financial resources in the nation and abroad, stimulating the related industries, increasing revenues for the budget and solving employment, while increasing the contribution of the finance, construction and building materials markets.
According to a report by the Foreign Investment Agency (FIA), the proportion of capital poured into the real estate sector ranked second, accounting for more than 27% of the total foreign direct investment (FDI) in Vietnam.
It is estimated that, in the next 10 years, the new home demand will reach 5.1 million low and middle-priced departments. The pace of urbanisation not only increases the demand for housing but also stimulates demand for real estate for tourism and convalescence. It is necessary to provide urgent solutions to the pressure of population density in urban areas.
The seminar focused on two topics: New Context and Vision of Vietnam Real Estate Development; and Smart Real Estate Development: International Experiences and Practical in Vietnam. The impacts of 4.0 generation to Vietnam real estate also mentioned at the event.
Around 200 drug users escaped from a rehab centre in Vietnam on Saturday (Aug 11), police said, the latest breakout attempt from the country’s controversial treatment facilities.
Some addicts are forced by law to spend up to two years in Vietnam’s rehab centres, while others are admitted by family or check themselves in. AFP reports.
Most detainees undergo cold-turkey treatment in the notoriously overcrowded centres or are subjected to solitary confinement for breaking rules.
Several breakouts have occurred in recent years and the most recent started on Saturday morning in the southern province of Tien Giang, a police officer said on condition of anonymity, adding that about half the escapees had already been captured.
“There are around 100 addicts still on the run and the police are still looking for them,” the officer said.
A disagreement with staff escalated into an assault, with patients wielding knives and bricks and encouraging others to break down the door, state-controlled website VnExpress reported.
Images circulating on social media showed dozens of men, many shirtless, wandering on a highway near the rehab centre.
“They passed my area holding canes and shouted like protesters. When we saw them, me and people around were scared and worried,” local resident Le Hai Trieu said.
Residents pitched in to help local authorities capture the men.
Another state media outlet said that more than 650 people are registered at the Tien Giang facility, but it did not provide figures on the number of voluntary admissions.
There are more than 220,000 registered drug addicts in Vietnam, according to official statistics released last year, with heroin and methamphetamine the most popular narcotics.
While Vietnam is experimenting with more community-based treatment options in response to criticism over the centres, they remain the most-used form of recovery.
The centres are widely supported as a viable treatment option although addiction specialists say they don’t work and relapse rates are high.
Early last year 100 people escaped from a centre in southern Long An province because they were upset about spending the annual Tet new year holiday away from their homes.
The second week of the month has been a rather subdued week with not much volatility compared to prior weeks past. The market has traded in a tighter range from -0.36% (Tuesday) to the high of 0.99% (Wednesday).
This week closed out at 968.47, +0.52% for the day and +0.93% WoW. The VN Index has been creeping higher almost daily and is 7.89 points above the 50dma (960.58). We can see the shorter trend line turning back to a rising trend, which is an encouraging sign, which looks like the shorter term bottom has passed. Now the question is whether this short term rebound will translate into a mid-term recovery. As the midterm 100dma trend line 1024.96 this week continues to decrease versus 1034.36 last week so we are not out of the woods just yet. However, additional glimmering hope is the longer term 200dma is at 1008.83 and has also slightly increased from last week’s 1005.38. The bulls look like are giving the upper hand to the bears.
Liquidity this week slightly fell by around -9% WoW at a daily average of VND3.42trn (USD147mn). We had VND17.1tn (USD735mn) liquidity for the week. The week’s liquidity was far below the YTD average of VND4.9trn (USD210mn). The stock to focus on this week was HAG as its stock price has been on a recent tear on market speculation that it will be merged into unlisted Thaco (automotive industry giant). The share price has risen about 50% since its bottom of mid July. The market believes that that part of the acquisition is based on large land lots in Cambodia and Laos owned by HAG, which are in trouble.
Foreigners continue to be net sellers this week. Buying VND4.1tn (USD177mn) about 19.09% of the entire market value VND21.6 (USD927mn) including put throughs, while selling is VND4.8tn (USD927mn) about 22.58% of the total market value leading to a net selling of VND-754.8bn (USD32.4mn). The top foreign bought stocks were HPG at VND21.24bn (USD911k), while top sold stock was HAG at VND-20.89bn (USD896.5k).
As a continuation to last week’s earnings update, as earnings seasons reaches a close now 51 out of our 53 companies under our coverage have released their 2Q (accumulatively 1H) business results. So far our results indicate that 23 stocks were in line, 13’s were better than, and 13’s were worse than our forecast. 2 stocks were muted due to analyst coverage change. These results are closely in line with our overall expectation of our coverage result. You can find more details in our Coverage List attached.
Vietcombank will sell all of its remaining 1.48 million Orient Commercial Bank (OCB) shares at an auction on September 6. According to Vietcombank, at a starting price of VNĐ18,876 (80 US cents) per share, the bank is estimated to earn nearly VNĐ27.9 billion (US$1.19 million) if the auction succeeds. The shares are bonus shares that Vietcombank received from OCB before its first auction to sell 13.2 million OCB shares held in December last year.
Business conditions related to the establishment and operation of joint stock commercial banks and non-bank credit institutions in Việt Nam will be eased under a draft circular from the State Bank of Việt Nam (SBV). The draft revisions are part of SBV’s plans to remove or simplify 257 business conditions under its management, which will require SBV to revise eight decrees and 10 circulars. According to SBV, the revisions are aimed to simplify business conditions and administrative procedures in the banking industry according to the Prime Minister’s instructions.
By Marc Djandji, CFA
Head of Institutional Sales
Rong Viet Securities Corporation (VDSC)
Ho Chi Minh City’s Thu Thiem peninsula wows developers but expelled residents feel wronged
Ho Chi Minh City’s Thu Thiem peninsula is the kind of place that makes real estate people spout clichés about the “wow factor” or “location, location, location”.
A lobe of largely undeveloped land, it hugs the Saigon river opposite District One, the downtown of this tropical metropolis of nearly 10m people. It commands in-your-face views of high-rises, including Landmark 81, south-east Asia’s tallest completed building. Luxury homes are going on sale, at prices that rival Bangkok, for what planners say will be a new financial and residential hub — Ho Chi Minh City’s answer to Shanghai’s Pudong. John Reed reported on Financial Times.
Vietnam’s economy grew 6.8 per cent in the second quarter, slightly faster than China’s. A world-class riverside district for Saigon, as most residents still call the city, would be a fitting showcase for an ambitious nation on the move. A new tunnel runs under the river and a six-lane highway bisects the peninsula.
But climb up Saigon’s high-rises — or view Thu Thiem on Google Earth — and you will see that much of it remains open land. Nearly 15,000 households were paid by the government to move out, in a noisy, still-unfinished process that provoked protests, and cost more than $1bn.
A few dozen households are holding out for better compensation deals. A handful of freestanding houses still stand amid rubbish tips and building rubble, on loamy land frequented by drug addicts. The atmosphere is not so much megacity as Mad Max.
“The government is a thief,” claims Nguyen Thi Giap, 83, who lives with her 91-year-old husband Huynh Van Luc in a two-storey house. Their wedding picture is on the wall. “I will move if the government pays the appropriate compensation cost.” Like other households, they say their house was omitted from a master plan to redevelop Thu Thiem in the 1990s.
The city recently said it had lost that plan, provoking snorts of derisive anger from residents who say they were wronged. “Of all the protesters, the government is most afraid of me,” declares Pham Thi Linh, who lives on rain-soaked land nearby with several cats. At the height of anti-relocation protests earlier this decade, she mounted her motorcycle with a hand-printed multi-lingual banner to protest the eviction at consulates.
Vietnam is often compared to China, whose Communist party also melded Marxist-Leninist hierarchy with the Confucian work ethic to build a formidable development model. But in fact, Vietnam is a messier, and arguably freer, place and Thu Thiem is testimony to this. “In China, the government can do everything; in India they can’t do anything,” says Huynh The Du, a lecturer at Saigon’s Fulbright University. “In Vietnam it’s somewhere in between: sometimes the government can’t do things because of the resistance of the people.”
Thu Thiem has always been a puzzle for planners. Vietnam’s French colonisers left it undeveloped as it was softer ground than the sturdy plateau where they built District One. It occupied the public imagination as a lawless place, frequented by bandits, prostitutes and lepers. Mapmakers often left the peninsula as empty space, as if no one lived there. In fact, thousands of people did, amid waterways more like the Mekong delta than the rest of Saigon.
“You can see why people would have drooled over it since the beginning of time,” says Erik Harms, a Yale professor who authored a book on urban development in Saigon.
Ngo Viet Nam Son, an architect who worked on Pudong’s development, thinks city planners erred by drawing up blueprints for Thu Thiem in isolation. He thinks there should be a bridge, not a tunnel, leading directly to the city centre.
“If we made good connections to Thu Thiem, the city would be able to make more money to compensate people at the market price,” he says. “The problem is, they didn’t make these connections.”
Developers are more forgiving, and point to a flurry of Hong Kong, South Korean, and Vietnamese-funded projects coming on the market that they say will transform the area. “Saigon has very little master planning and they are very laissez faire in an urban context,” says Troy Griffiths, deputy director of Savills Vietnam. “And you know what? It works OK.”
john.reed@ft.com