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Typhoon Bebinca quickly heading to mainland

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Typhoon Bebinca is quickly heading towards the mainland of the northern and central provinces on Wednesday morning and will blanket the localities with torrential rains starting around midnight on Wednesday – Vietnamnews reported

The torrential rains, with rainfall of up to 350mm, are predicted to last until late Friday night.

The National Committee for Hydro-meteorological Forecasting said that by 10am on Wednesday, the typhoon was 450km away from the north-eastern province of Quảng Ninh’s Móng Cái City, with the strongest wind speeds near its eye reaching 90km per hour.

It was moving west-southwest at 15km per hour, the centre said.

The centre forecast that the typhoon would make landfall in provinces from Hải Phòng to Nghệ An by 10am on Friday.

Due to the typhoon’s influence, water levels could rise by two to four metres in the Hồng (Red) – Thái Bình river system and waters could swell by three to six metres in rivers from Thanh Hóa to Nghệ An between Thursday and Saturday.

Localities of Lai Châu, Sơn La, Hoà Bình, Yên Bái, Phú Thọ, Quảng Ninh, Lạng Sơn, Cao Bằng, Thanh Hóa and Nghệ An have been put on high alert for flash floods and landslides while urban areas in Hà Nội, Ninh Bình, Phủ Lý, Nam Định, Hà Nam, Hưng Yên, Quảng Ninh and Hải Phòng are forecast to face inundation, the centre said.

A team from the Central Steering Committee for Natural Disaster Prevention and Control, led by Deputy Minister of Industry and Trade Hoàng Quốc Vượng, went to localities of Hòa Bình, Sơn La, Điện Biên and Lai Châu to check their preparedness for the typhoon on Tuesday afternoon.

The inspection, carried out between Tuesday and Friday, aims to make sure that the localities take prompt action to ensure local residents are safe during the typhoon as well as to minimise property damage.

Pho named world’s 20th best food experience

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Vietnamese phở has been named the world’s 20^th best food experience by world travel guide book publisher the Lonely Planet.

Phở on the Hậu River along 500 other dishes was selected as for the book Ultimate Eatlist: The World’s Top 500 Food Experiences…Ranked published on Wednesday.

The list was topped by pintxos in San Sebastian, Spain, followed by curry laksa in Kuala Lumpur and sushi in Tokyo.

Entries were nominated by Lonely Planet writers, bloggers and staffers and whittled down to a final 500 by a panel including chef and TV presenter Adam Liaw and food blogger Leyla Kazim.

Recommendations from world-renowned chefs José Andrés, Elena Arzak and Eric Ripert; television food star Andrew Zimmern; BBC MasterChef judge and chef Monica Galetti; and 15 more of the world’s top chefs and food writers were also included, CNN reported.

Per the book, the ranking is not about the perfect meal at a three-Michelin star restaurant, but how a dish tastes, its cultural significance and the importance of the location where it’s made and eaten.

“When you have a salad Nicoise in New York, you might think, oh this is nice,” Lonely Planet destinations editor Matt Phillips told CNN Travel.

The final list is based on taste, cultural importance and “the special atmosphere of the location.”

Each entry in the Ultimate Eatlist details an experience, the culture behind it and what makes it so special, Lonely Planet says.

Earlier in June, travel site Rough Guides named Việt Nam’s iconic noodle soup, phở, among the world’s 15 best foods that are easy on a globetrotter’s pocket.

A bowl of phở contains flat, soft rice noodles dipped in a fragrant beef or chicken broth flavored with different condiments. It is served with beef or chicken, shallots and chili and lemon to taste.

The soup originated from Hà Nội before it was brought to the south where people added their own influences to the dish.

Ultimate Eatlist is the follow-up to Lonely Planet’s bestselling Ultimate Travelist and is a must-own bucket list for foodies and those who love to travel. — VNS

Lonely Planet’s top 20 food experiences

1. Pintxos in San Sebastián, Spain

2. Curry laksa in Kuala Lumpur, Malaysia

3. Sushi in Tokyo, Japan

4. Beef brisket in Texas, USA

5. Som tum in Bangkok, Thailand

6. Smørrebrød in Copenhagen, Denmark

7. Crayfish in Kaikoura, New Zealand

8. Bibimbap in Seoul, South Korea

9. Pizza margherita in Naples, Italy

10. Dim sum in Hong Kong

11. Ceviche in Peru

12. Pastéis de nata in Lisbon, Portugal

13. Oysters in Freycinet, Australia

14. Cheese experiences in France

15. Jerk chicken in Jamaica

16. Lamb tagine in Marrakech, Morocco

17. Chilli crab in Singapore

18. Moules frites in Brussels, Belgium

19. Peking duck in Beijing

20. Phở on the Hậu River, Việt Nam

Illegal foreign tour guides found in Danang

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According to Dtinews, the Department of Tourism of Danang City have found 23 foreign tour guides in Danang City without work permits in the first half of this year.

The information was given by Nguyen Xuan Binh, the deputy director of the department.

Among those, up to 20 were Chinese and the three were South Korean.

The municipal authorities have fined 20 people VND322 million (USD14,636). Meanwhile, 11 people have their visas cancelled and are also temporarily banned from entering the country.

During the period, the fine of VND197 million (USD8,954) were imposed on other violations in the tourism sector. The department also found 32 people who used fake tour guide certificates.

The Ministry of Public Security set up an interdisciplinary inspection team to supervise compliance with entry, exit, and residency criteria for foreigners in Danang.

The move was made after many foreigners were reported to illegally work as tour guides in the city.

Danang currently has 623 Chinese-speaking tour guides licensed by the Department of Tourism.

Moody’s takes rating actions on 14 banks in Vietnam

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Moody’s Investors Service on Tuesday upgraded the ratings of 14 Vietnamese banks, driven by its upgrade of Vietnam’s sovereign rating to Ba3 from B1 late last week.

According to a report on VNS, under the latest rating actions on Vietnam’s banking industry, Moody’s upgraded the long-term local and foreign-currency deposit and issuer ratings of Vietcombank, BIDV and VietinBank.

Moody’s also upgraded the long-term counterparty risk ratings (CRR) and counterparty risk assessments (CRAs) of VietinBank and BIDV, and affirmed those of Vietcombank.

Besides the large-sized banks, Moody’s also upgraded the long-term foreign-currency deposit ratings of ACB, Military Bank and Techcombank. All other ratings of these three banks were affirmed.

At the same time, Moody’s also upgraded the long-term local and foreign-currency bank deposit and issuer ratings of five banks named An Bình Bank, LienVietPostBank, TPBank, VIB and VP Bank. All other ratings of these five banks were affirmed.

The long-term CRR and CRA of SHB, HDBank and OCB were also upgraded. All other ratings of these three banks were affirmed.

Moody’s has also changed the outlook for the local currency deposit and local and foreign-currency issuer ratings of eight banks — Vietcombank, BIDV, VietinBank, An Bình Bank, LienVietPostBank, TPBank, VIB and VP Bank — from positive to stable.

According to Moody’s, the baseline credit assessments (BCAs) and adjusted BCAs assigned to the 14 banks are unaffected by Tuesday’s rating actions.

The credit ratings, assessments and outlooks assigned to the other two Moody’s-rated banks in Vietnam are unaffected by the upgrade and change in outlook of Vietnam’s sovereign rating. The two unaffected banks are Sacombank and Maritime Bank.

Vietnam’s sovereign credit strength is a key input in Moody’s deposit and issuer ratings for Vietnamese banks, because the country’s credit strength affects Moody’s assessment of the Government’s capacity to provide support to the banks in times of stress.

The upgrade in Vietnam’s sovereign rating to Ba3 from B1 is underpinned by strong trends in growth, underway for the past decade, that are well-supported by a robust external sector and favorable consumption trends. This in turn has supported a stabilization in debt levels. The upgrade also reflects improvements in the health of the banking sector, albeit from relatively weak levels.

Following the upgrade of Vietnam’s sovereign rating, the foreign currency deposit ceiling is raised to B1 from B2, driving the upgrade of the long-term foreign-currency deposit rating of 11 banks.

Moody’s said that the baseline credit assessments (BCAs) of the 14 Vietnamese banks could also be upgraded if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher macro profile for the country.

Moody’s takes rating actions on VIB

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Moody’s has upgraded the long-term local and foreign- currency bank deposit and issuer ratings of Vietnam International Bank (VIB). All other ratings were affirmed.

Moody’s has also changed the outlook for the local currency deposit and local and foreign currency issuer ratings of VIB to stable from positive.

The rating actions follow Moody’s upgrade of Vietnam’s sovereign rating to Ba3 from B1, and change in the outlook for the sovereign’s rating to stable from positive on 10 August 2018. For more information on the sovereign credit rating action, please refer to the Government of Vietnam issuer page on http://www.moodys.com.

The baseline credit assessment (BCA) and adjusted BCA assigned to VIB are unaffected by today’s rating actions.

RATINGS RATIONALE

Today’s rating actions on VIB are driven by Moody’s upgrade of Vietnam’s sovereign rating to Ba3 from B1.

Vietnam’s sovereign credit strength is a key input in Moody’s deposit and issuer ratings for the bank, because the country’s credit strength affects Moody’s assessment of the government’s capacity to provide support to the bank in times of stress.

The upgrade in Vietnam’s sovereign rating to Ba3 is underpinned by strong trends in growth, underway for the past decade, that are well-supported by a robust external sector and favorable consumption trends. This in turn has supported a stabilization in debt levels. The upgrade also reflects improvements in the health of the banking sector, albeit from relatively weak levels.

Following the upgrade of Vietnam’s sovereign rating, the foreign currency deposit ceiling is raised to B1 from B2, driving the upgrade of the long-term foreign-currency deposit rating of VIB.

UPGRADE OF VIETNAM GOVERNMENT’S RATING LED TO A WIDENING OF GOVERNMENT SUPPORT NOTCHING

Moody’s factors in the assumption of a “Moderate” probability of government support in times of need into the ratings of VIB.

Moody’s government support assumption is driven by the relative systemic importance of VIB to the Vietnamese banking system.

In light of the support assumption, the upgrade of the sovereign rating led to a one-notch widening of government support uplift to VIB’s long-term local-currency bank deposit and local and foreign-currency issuer ratings.

WHAT COULD MOVE THE RATINGS UP

The long-term ratings of VIB could be upgraded if both these two conditions are met: (1) the sovereign rating of Vietnam is upgraded, and (2) the bank posts improved stand-alone credit metrics that lead to a higher BCA.

The BCA of VIB could also be upgraded if the macroeconomic and operating conditions in Vietnam improve, leading to a higher Macro Profile for the country.

WHAT COULD MOVE THE RATINGS DOWN

The long-term ratings of VIB could be downgraded if the sovereign rating of Vietnam is downgraded, and/or if the bank’s BCA is downgraded due to a significant deterioration in its financial fundamentals. If all other rating factors are constant, the BCA would come under adverse pressure if the bank reports significantly increased problem loan ratio or significantly reduced capitalization. A material deterioration in funding and liquidity could also be negative for the ratings.

As of June 30, 2018, VIB’s total asset has reached VND127,238 billion, up 3.4% year-to-date. In the first half of the year 2018, the bank’s lending increased by 9.3 to VND87,283 billion; deposits grew 10.2% to VND75,331 billion. In 1H 2018, VIB tripled its pre-tax profit from a year earlier to VND1.151 billion, equivalent to 57% of its 2018 target.

42 people tested positive for AIDS in Phu Tho

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42 people have been tested positive for HIV virus in a commune in Phu Tho Province as the health ministry are investigating into possible AIDS infections allegedly caused by a local doctor.

The figure was announced in a press meeting held late Monday afternoon by Phu Tho Provincial People’s Committee.

According to the committee’s deputy chairman, Ha Ke San, 42 people have been diagnosed as HIV positive so far in Kim Thuong Commune, Tan Son District. San said that this is a high rate in the area but not the only cases in the country as statistics show that at present 61 communes have the same rate of HIV infections.

“Now our first priority is to make sure that all infected people receive proper treatment,” San said.

Deputy director of Phu Tho Provincial Department of Health, Le Quang Tho, said that 490 local people have come for HIV/AIDS testing and 42 people have been found positive.

Addressing the meeting, a representative from the Ministry of Health said that they are still investigating the cause of the infections.

“There have been complaints from infected people that they got the virus from a local doctor who used the same needles for multiple patients but we need further investigations as the HIV virus can be transmitted through various ways,” the ministry’s representative said.

Nguyen Hoang Long, head of the Ministry of Health’s Department for HIV/AIDS Prevention and Control, said that they would carry out a survey on the infection situation in the whole area first and then look into individual cases.

Around one month ago, a 59-year-old woman in Kim Thuong Commune was diagnosed as HIV positive. She was extremely shocked at the news as she only stayed at home farming, while her husband was tested negative for HIV. So she did not know how she could be infected.

The woman said that she used to get injections at the clinic owned by a doctor who was working at Tan Son District General Hospital.

Kim Thuong is a remote area, so when local residents have health problems, they often come to this clinic, instead of coming to hospitals.

Local people suspected that the doctor might have used the same needles with patients, which could be the cause of the woman’s HIV infection.

A report from Phu Tho Health Department said that five people have died from HIV/AIDS in Kim Thuong Commune over the past three years.

According to a report on DTinews

My Time with the Coffee King of Vietnam

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I have been photographing Vietnam for 21 years, and returned last fall to see what had changed. I was especially interested in new wealth as there haven’t been millionaires there until the last few years. I wondered what wealth looked like in a Communist country.

In Saigon I stayed with my friend Phuong Anh Nguyen, who escaped by boat when she was 13, returned to Vietnam at 24, and now runs the hottest bar in Saigon, the Q-Bar. She is also one of the most beautiful women I have ever seen. When I asked Phuong Anh whom I should meet, she immediately suggested Dang Le Nguyen Vu, someone she referred to as the “Coffee King.” She arranged for me to meet him, as she knows everybody. Catherine Karnow, contributing editor at National Geographic Traveler reported in 2012.

The Coffee King’s 12th-floor office is on a street full of “hair salons,” shops that are fronts for service girls. He greeted me in his grand 12th floor office and offered me a perfect espresso, then we sat down to talk. He watched me intently while I spoke; I knew that he was judging me.

I must have impressed him, though, because he invited me to spend three days at his ranch. As the Coffee King never poses for photographs, I felt honored, but nervous, too. I wondered why he was allowing me into his life, and what he would reveal.

A week later I found myself way up in the green misty highlands of Vietnam, listening to him tell me how he was going to change first Vietnam, then the world, through coffee.

The Coffee King owns Vietnam’s most successful coffee company: Trung Nguyen Coffee, which is as ubiquitous as Starbucks. Vietnam is the second biggest exporter of beans in the world, so that makes the Coffee King pretty rich.

The ranch house was in the traditional style of the region – one story, long, and not large – but oddly decorated inside. The living room was filled with imposing busts of revolutionary figures – Napoleon, Che Guevara, Mao Tse Tung. He told me he talks to the busts and gets inspiration for how to change the world.

There was also an immense autographed photo of him with General Giap — one of the world’s greatest living generals (he’s 100 as I write this) — who is responsible for winning Vietnam’s independence from both France and the U.S. I myself have spent much time with General Giap, and my photographs of the general are considered his official portraits. Later I realized this was why the Coffee King had allowed me into his world.

But we didn’t spend time inside surrounded by busts; we sat at an old scratched wooden table in the Chinese style pavilion outside. For such a rich man, his furniture was very simple, a reflection of a culture of austerity that dates back to Ho Chi Minh.

Also known as “The Chairman,” Mr. Vu’s life revolves around coffee. (Photo: Catherine Karnow

For two days and two nights, the Coffee King smoked cigar after cigar and, in an operatic sing-song voice, spoke sadly about his love for the Vietnamese people and his deep despair for their future.

He pointed to his head and asked, “Why do you think I have no hair?”

“It is from stress. I do not sleep,” he said. “The people are too passive; they just do what they are told. The Vietnamese people are our greatest resource, and yet we are failing to show the world who we are and what we are capable of! We have no identity!”

The key to change, he said, was in the Vietnamese people — if they would only “wake up.”

I wondered whether he was voicing his frustration with the government, which censors freedom of expression, but he was quiet on this point. Indeed, in Vietnam, as others had told me, it is not what you do, it is what you say, that can anger the government.

Then, with eyes narrowed, gesturing with his Cohiba, he declared that everyone should embody the “coffee spirit.” But he was vague on the particulars; I wondered if he had a plan.

On my last night, I pressed the Coffee King for more. I wanted to know exactly how he was going to change Vietnam, and then the world, with this coffee spirit. In his flowing white tunic and matching pants, he resembled a prophet. He leaned forward and told me his vision. “My coffee shops,” he said, “will be gathering places where people, especially young people, will exchange ideas, where they will express themselves in all ways, through conversation, performance, art, workshops, lectures. Exciting and influential people will come and teach, and the people of Vietnam will wake up, be enlightened, and be inspired to think creatively and bring change to their country!”

As we sat at the old table on the pavilion, a light rain pattering on the roof, his Arabian horses stamping about in a nearby barn, I saw a man whose vision was clear because his love for his people was unwavering. I was seeing not only an individual with an intention so strong he would stop at nothing, I was also seeing the Vietnamese spirit, that indomitable force that keeps them focused on the goal no matter what the cost.

25 Inspiring Photos to Make You Visit Vietnam at Least Once in Your Lifetime

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The truth is, Vietnam deserves a fairer look into its beauty than just a trip to Ha Long Bay, a bowl of noodle soup and a cup of coffee. The landscapes are majestic, the history and culture are fascinatingly rich, and the people are amazingly friendly. Whether you are a gourmand, a history addict, a mountain hiker, a trek lover or a leisure traveler, the country certainly has immense options for experience seekers—take a look at 25 stunning photos on The Culture Trip to get a dose of inspiration before traveling to Vietnam.

Lan Ha Bay, a hidden gem and alternative to Ha Long bay | Kenznguyen / Pixabay

Rice terraces in Mu Cang Chai | © Nguyen Anh Tuan/Flickr

Sunset in Phu Quoc Island | © Lenny K Photography/Flickr

Hoi An Ancient Town | © Khánh Hmoong/Flickr

Morning in Bac Son Valley, north of Vietnam | © Hoang Giang Hai/Flickr

Vietnam’s mountain view | tpsdave / Pixabay

Hoan Kiem Lake in central Hanoi | © Khánh Hmoong/Flickr

Sunset in Co Thach Beach, home to a majestic landscape with colourful rocks covered in moss | © Lê Anh Khoa/Flickr

Tam Coc Rice Valley in Ninh Binh | © Hoang Giang Hai/Flickr

H’Mong King Palace in Dong Van stone plateau | © Khánh Hmoong/Flickr

Fishing boats in Phan Thiet, a coastal port city in southeast Vietnam | ©

Life on the railway line in central Hanoi | © Esin Üstün/Flickr

Sunset in Mekong delta | © Jos Dielis/Flickr

Street food market in Ho Chi Minh City | © William Cho / Flickr

A cluster of electric wires in Ho Chi Minh City | © Soreen D/Flickr

The Imperial City of Hue | © Chris Hoare/Flickr

Never pho – get this | © DeaShoot/Flickr

The Cao Dai’s followers | © Jean-Pierre Dalbéra/Flickr

Bai Dinh Temple in Ninh Binh | © Jean-Paul Navarro/Flickr

Boat rides around Tam Coc rice terraces | © Tuan Mai

Old grocery shop in Hanoi | © Khánh Hmoong/Flickr

Foreign fast food giants defy losses in Vietnam

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Fast food giants are still betting big on the Vietnamese market, despite ongoing losses and sluggish performance.

In the red

In Vietnam, Lotteria and KFC are considered the leading fast food brands. However, the financial statement of Lotteria showed that the fast food chain recorded after-tax losses were VND118 billion ($5.22 million) and VND135 billion ($6 million) in 2015 and 2016 respectively. By the end of 2016, Lotteria’s accumulated losses were more than VND413 billion ($18.27 million), while its charter capital reached only VND433 billion ($19.16 million), as reported by local media.

In the meantime, Lotteria’s competitor, KFC also reported losses with a low profit margin at around 15 per cent in 2016. This was even lower in the previous year, at only 10 per cent. As a result, KFC lost VND25 billion ($1.1 million) in 2015 and made a profit of VND15 billion ($664,000) in 2016.

The Fast Food in Vietnam report by Euromonitor International reveals that many international fast food brands in Vietnam have declined in 2017, including Burger King, Popeyes, Subway, and Carl’s Jr. Lotteria and KFC, despite maintaining their leading positions in 2017, only recorded very low-value sales growth.

When VIR contacted Vietnam Lotteria Co., Ltd., marketing manager Truong Ham Liem did not deny these above-mentioned losses. He said that Lotteria’s market development plan focuses on the expansion of outlets. Lotteria invested heavily into developing and advertising its chain of outlets between 2014 and 2016.

“It is only when Lotteria achieves its intended scale that the company will consider profitability,” Liem said, adding that the Vietnamese market is growing rapidly, so Lotteria continues to invest in the market to achieve the company’s original goals despite the losses.

“The scale of Vietnam’s fast food market has yet to hit the profitable point, so the chain is committed to ongoing investment,” Liem said. “In 2017, Lotteria continued to increase the number of its outlets, which will lead to revenue growth and shrinking losses. The fast food chain is expected to generate profits this year.”

According to Sean T. Ngo, CEO of VF Franchise Consulting, there are many reasons for ongoing losses among foreign fast food chains, despite having been present in Vietnam for years. It is a combination of increasing competition for both local and foreign companies, high rental costs, and limited supply of affordable premises.

Other reasons include a supply chain that needs significant improvement and depth in terms of the number of qualified suppliers in Vietnam, fast-rising labour costs as evidenced by nearly annual increases in minimum wages throughout the country, and generally lower disposable incomes as compared to many regional neighbours.

“The good news is that many of these areas are improving over the medium to long term,” Ngo said.

Indeed, Vietnam’s fast food market’s size has almost doubled in the last five years, from VND11.84 trillion ($524 million) in 2012 to VND20.22 trillion ($894.7 million) in 2017, at a compound annual growth rate of 11.3 per cent. Moving forward, the market is expected to hit VND24.99 trillion ($1.11 billion) by 2020, according to Euromonitor.

New growth

Over the last 10 years, fast food brands have sprung up across Vietnam. It is very easy to find a fast food store with modern furniture, glass doors, and cool air conditioning. The density of fast food outlets is increasing, not only in the commercial centres and big cities, but also in other provinces. Fast food companies have proactively conducted franchising to open more and more new stores in lucrative sites.

Currently, Lotteria and KFC have the largest number of stores in Vietnam. Lotteria opened in Vietnam in 1998 and leads the fast food industry with 222 stores nationwide now. It had 140 stores by late 2012, which rose to 207 in 2015, meaning Lotteria increased the number of its locations by 150 per cent between 2013 and 2015, and over 20 stores were launched each year.

Meanwhile, KFC, the world’s most popular chicken restaurant chain, has been present in Vietnam since 1997, when Vietnamese customers were still unfamiliar with the concept of fast food. KFC suffered losses for seven consecutive years. The increase in the number of stores was very slow, reaching 17 stores after seven years. KFC then adjusted its strategy, and the number of stores rose to 100 in 2011.

During the most exciting phase for fast food, 2012-2015, the number of KFC outlets rose to 140 across 18 cities and provinces. The number remains unchanged now.

Another brand developing well in Vietnam is the Philippines’ Jollibee, which has taken part in the Vietnamese market since 1996 and marked the milestone of 100 stores in 2017. Jollibee Food Corporation (JFC) has recently gained a controlling stake in SuperFoods Group, which owns and operates Highlands Coffee and PHO24.

Ernesto Tanmantiong, JFC’s president, is upbeat about the outlook in Vietnam. “Vietnam is growing fast and has a young population, and both Jollibee and Highlands Coffee are growing very well. We are very excited about Vietnam, because it will be a large consumer country due to its population, and there is a lot more room to grow,” Tanmantiong said.

Meanwhile, McDonald’s, which began operations in Vietnam in 2014, has launched only 17 outlets so far. Explaining this modest figure, Nguyen Huy Thinh, CEO of McDonald’s Vietnam, told VIR that the McDonald’s strategy is to ensure good performance in every outlet.

“The speed of opening will become faster and the target of 100 stores within 10 years is possible,” he said, noting that the business results of McDonald’s are very positive, with annual growth rates of 30-40 per cent.

According to Euromonitor, Lotteria maintained the leadership position on the market in 2017 with 17.9 per cent of market share, followed by KFC (11.4 per cent), Jollibee (8.3 per cent), and McDonald (1.7 per cent).

Moving forward

Fast food brands are urged to switch their development strategies to reverse the slump. Ngo noted that some fast food chains are already making profits, while others are still struggling and a few have clearly failed and exited the market.

Fast food chains that are open to localisation of menu items and sourcing while maintaining their quality and service standards are more likely to succeed than those that have to import nearly every raw material into the country, thereby facing higher costs.

“Some chains are also realising that smaller footprints are critical to success as they cost less and, if the location is chosen correctly, can generate more returns and thus revenue for the company. KFC and Lotteria are slowly, but surely heading in the right direction and towards better profitability, as branding power and economies of scale become ever more important in an increasingly competitive market,” he said.

Ha Noi authorities to revoke licences of long-delayed projects: Chairman

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Authorities in the capital plan to get tough on slow construction projects.

Hà Nội People’s Committee Chairman Nguyễn Đức Chung recently said 47 construction projects running behind schedule will be discontinued and have their licences revoked.

He was speaking at a hearing on the delayed progress and legal violations plaguing projects implemented with Government capital, held by the city People’s Council yesterday.

Nguyễn Thị Bích Ngọc, chairwoman of Hà Nội People’s Council, said land is one of the most important resources for the development of the city.

The council’s inspection of eight municipal departments and 30 localities found vast tracts of land idle where construction is supposed to be happening, “affecting people’s lives and production activities,” Ngọc said.

From the beginning of the year to August 10, the city authorities have approved and granted land for 1,023 projects using Government’s capital to the tune of VNĐ846.2 trillion (US$36.1 million).

Of these, Hà Nội Department of Environment and Natural Resources reported only 161 projects are behind schedule and possibly violating land law, while the People’s Council inspection showed the number might be as many as 383, mostly in the outlying districts of Hoài Đức, Mê Linh and Nam Từ Liêm.

People’s Council delegations at the hearing pointed out several projects that have been on hold for more than a decade, and asked for immediate measures to address this waste of land resources.

Nguyễn Trọng Đông, director of the municipal environment and resources department, said that in 2013, the new land law was adopted, causing many already approved projects to undergo modifications and experience delays in land clearance.

In 2012-15, a period when the real estate scene was lukewarm, land developers were not “proactive in co-operating with local authorities to resolve their problems, leading to additional delays,” Đông said.

Chairman Chung said while the cause for these issues was mostly to do with the contractors’ limited capabilities, the municipal finance and planning departments are responsible for vetting these contractors before granting them projects.

Nguyễn Mạnh Quyền, director of the municipal planning and investment department, said the department will review each delayed project and help investors overcome bottlenecks.

The department will name and shame investors who failed to follow through their commitments and decline future investment applications.

According to Chung, Hà Nội is building a database and management software, one that will compile all projects under the management of different departments in the city, to exercise better control of projects using Government capital.

Source: VNS

Minimum wage to increase 5.3%

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An increase in the minimum wage moved a step closer yesterday after the National Wage Council agreed to increase basic salaries.

The committee confirmed they will look at a rise of more than 5 per cent compared to last year.

The raise is equal to an increase of VNĐ160,000-200,000 (US$6.8-8.6) each month per labourer.

It is believed to be the lowest increase of the regional minimum wage so far.

The increase will be submitted to the Government for final approval.

The increase of the regional minimum wage was 7.3 per cent in 2017, equal to an increase of VNĐ180,000-250,000($7.7-10.7) and 6.5 per cent in 2018, equal to an increase of VNĐ180,000-230,000 ($7.7-9.9).

The decision was made after the third meeting of the council held in northern Hải Phòng City yesterday and chaired by Deputy Minister of Labour, Invalids and Social Affairs cum President of the National Wage Council Doãn Mậu Diệp.

Representatives from the Việt Nam Chamber of Commerce and Industry (VCCI), on behalf of employers and the Việt Nam General Confederation of Labour (VGCL), on behalf of employees, were also at the meeting.

They decided the monthly minimum wage for four different regions in Việt Nam to be Region I: VNĐ4.18 million (US$180); Region II: VNĐ3.71 million ($160); Region III: VNĐ3.25 million ($140) and Region IV:VNĐ 2.92 million ($126).

Region I covers urban Hà Nội and HCM City, II covers rural Hà Nội and HCM City along with urban Cần Thơ, Đà Nẵng and Hải Phòng cities, III applies to provincial cities and the districts of Bắc Ninh, Bắc Giang, Hải Dương and Vĩnh Phúc provinces and Regional IV takes care of the remaining localities.

Diệp said the increase was selected at 5.3 per cent after many discussions and was thought to be reasonable.

“It is the level that could cover a price slippage of 4 per cent each year and still ensure a small actual pay rise for labourers,” he said.

Additionally, the level was also affordable for employers to pay, he added.

Mai Đức Chính, vice president of VGCL, also said the increase was acceptable.

Chính said the 2018 regional minimum wage actually met about 92-94 per cent of the minimum living standards.

However, if fully calculated, it was necessary to increase the regional minimum wage by 7 per cent each year to both offset inflation and ensure a steady actual pay rise for the labourers, he said.

The increase for 2019 was only 5.3 per cent, it meant the pressure of adjusting the regional minimum wage for 2020 would not be small, he said.

Source: VNS

42 people tested positive for AIDS in Phu Tho

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42 people have been tested positive for HIV virus in a commune in Phu Tho Province as the health ministry are investigating into possible AIDS infections allegedly caused by a local doctor.