CEOs meet the challenges of an uncertain world

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For our fourth annual Global CEO Outlook survey, we reached out to 1,300 CEOs of large companies across sectors from around the world, including over 30 CEOs from Vietnam, to get their views of a broad range of business drivers, risks, and pain points they and their businesses face. As in prior years, we’ve seen how quickly the world is changing for today’s business leaders and what this means for how they are leading and growing their organisations.

Similar to the observations in 2017, we found Vietnam’s CEOs excited about the future. They saw technology-driven change as a significant opportunity to disrupt their respective sectors. That optimism continues in 2018, with CEOs showing great faith in the economic environment and industry growth prospects.

However, that optimism is tempered by caution and realism, with a clear recognition that, in order to grow their businesses, they need to respond to an ever-expanding spectrum of complex challenges and ‘growing pains’. While the CEOs surveyed still predict that their businesses will grow in the coming year, forecasts are lower than last year and a majority say they need to hit growth targets before they start hiring new people.

It’s not surprising in the current environment to see geopolitical issues rising on the CEO radar. Technology continues to command considerable attention – as an enabler, a disruptor, and, with the threat of cyber attacks, a very significant risk.

There’s also a growing sense of inevitability of a cyber breach, with nearly half of CEOs saying that becoming the victim of an attack is a case of ‘when’ and not ‘if’. In addition, even though a number of CEOs still rely on the value of their experience and intuition when making difficult strategic calls, they are embracing the digital agenda like never before and taking personal ownership of implementing data-driven models and analytics to make decisions for the future of their organisations.

Being a CEO in a period of such profound disruption and opportunity poses immense personal and professional challenges. Given the current geopolitical environment, it’s perhaps not surprising that a number of CEOs in Vietnam are more open to new thinking, learning new skills, and challenging convention than ever before.

Source: VIR

Investment fund VinaCapital reconciles to leading egg firm breakup demand

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VinaCapital and egg firm Ba Huan seem set to part ways acrimoniously after the fund agreed to the company’s demand to stop their partnership.

“VinaCapital has decided to stop investing in Ba Huan JSC and is negotiating with the firm in closing the deal on the basis of the law and mutual interest,” it said in a statement.

VinaCapital’s flagship fund Vietnam Opportunity Fund (VOF), in February, invested $32.5 million in the country’s leading egg firm Ba Huan for an undisclosed minority stake. The firm holds over 30 percent of the pasteurized egg market in Vietnam.

The latest move follows Ba Huan’s letter to Prime Minister Nguyen Xuan Phuc Monday seeking to end the deal it made with VinaCapital, one of the largest investment funds in Vietnam.

It accused the fund of trying to take over its brand and management.

Pham Thi Huan, CEO of Ba Huan JSC, told VnExpress that one of the reasons for this request is the disparity between the English and Vietnamese versions of the deal.

VinaCapital had “added by itself” an internal rate of return of 22 percent a year to the Vietnamese memorandum, three times bank interest rates on deposits, without the approval of Ba Huan JSC, she said.

VinaCapital also set a condition that Ba Huan will have to return to the fund its investment capital with the 22 percent interest, or transfer a stake of at least 51 percent to VOF, should it cannot achieve its business plans within three years, she said.

“These are merely the numbers VinaCapital expects, not something both parties have agreed upon,” Huan said.

The firms have only signed the English version of the contract, which doesn’t include those terms, she said.

Huan added that VinaCapital has also constantly sought veto powers over board decisions.

“The fund wants to have management authority over Ba Huan and take over our brand.”

But in its statement Tuesday VinaCapital said there is no difference between the English and Vietnamese agreements.

Ba Huan JSC, established in 2001, received it in both English and Vietnamese to scrutinize before signing, it said.

It also claimed it does not have any intention to manage or take over Ba Huan JSC, which has never been part of its strategy.

VinaCapital, founded in 2003, has offices in Vietnam, Singapore and Myanmar.

Ba Huan sells 1.7 million eggs and 15,000 chickens every day on average. Its revenues are expected to top $90 million this year – Ha Thanh reported

Ministry proposes timeline for installing cameras in vehicles

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The Transport Ministry has proposed a timeline for pushing transport business service providers to install cameras to monitor their vehicles.

According to Vietnamnet, the ministry recently sent the Government a draft decree aimed at replacing Decree 86/2014 on business conditions for road transport. Article 12 regulating surveillance equipment to monitor the journeys of vehicles includes the additional timeline for installing cameras.

Clause 2 of the article in the draft decree stipulates that monitoring devices must be fitted inside passenger cars, container trucks, semi-trailers, semi-trailer trucks, and cargo transporters with a designed payload of 20 tons or more. The aim is to collect image data on the drivers’ activities and journeys.

The suggested deadlines for various types of vehicles range from July 2022 to July 2025.

According to the Transport Ministry, the regulation follows the recommendations of the Ministry of Justice and the instructions of Truong Hoa Binh, deputy prime minister and chairman of the National Traffic Safety Committee, provided at a recent conference on traffic safety.

A representative of the Ministry of Justice told Phap Luat newspaper that developed countries have compelled vehicle owners to install GPS-enabled cameras to monitor the drivers and their cars. The GPS information is made available on the internet.

The official noted that current regulations have exposed many shortcomings in the operations of transport companies and the competent authorities, such as corruption and tax evasion.

“Installing in-vehicle, GPS-enabled cameras to impose (possible) fines will limit dependence on traffic police, traffic inspectors and other law enforcement,” the official added.

Do Van Bang, director of Minh Thanh Phat Trading and Services Co., Ltd, however, told the newspaper that the installation of cameras is unlikely to tackle bribery. According to him, cameras will be more appropriate for monitoring what drivers do during their journeys.

Bang stressed that the fee for installing and operating black boxes in cars is extremely high. Each camera costs roughly VND2 million (US$86), but the cost of a 3G or 4G internet connection to transmit live images to his company is expected to be up to VND10 million per month.

A traffic expert commented that the compulsory installation of cameras should be weighed carefully due to the high costs involved. Transport businesses would certainly pass on these costs to their customers.

Bui Danh Lien from the Hanoi Transport Association opposed the regulation, explaining that transport companies have already faced great difficulty in recent years, owing to rising fuel costs.

According to the Transport Ministry, the regulation could affect more than 340,000 cargo transport vehicles.

A set of surveillance equipment, capable of recording and transferring image data, costs some VND4.5-5.5 million (US$193-236). In addition, the cost for maintaining servers and data transmission lines is estimated at some VND120,000 (US$5) per car on a monthly basis.

Android Pie: Google adds Digital Wellbeing controls

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Android Pie – Google’s latest version of its mobile operating system – has been released.

The software introduces a new way to track usage of apps on a smartphone or tablet and lets limits be set, including the removal of colour from the screen at a chosen time of the day.

The ninth edition of Android also offers more powerful notifications and promises to extend battery life.
But Google continues to face issues with the distribution of its updates.

According to its own figures, only about 12% of in-use Android devices were running the previous version – Oreo – as of a fortnight ago.

Google says that it has worked with third-party device-makers to make it easier for them to check and deliver the updates than before.

But for now, the new upgrade is only being made available to its own Pixel phones.

Why Pie?

Google always picks a dessert or confectionery-based nickname for its mobile OS, shifting one letter along the alphabet each time.

Past examples have included Jelly Bean, Kit Kat, Lollipop and Marshmallow.

There had been speculation that the next name could be Pistachio Ice Cream, Pop-Tart or Pumpkin Pie.

But the chief of Android’s London engineering team explained that there had been a deliberate decision to keep things simple.

“It hints at the same goals we have with Android in general,” said Andrei Popescu.
“We want to simplify the user interface, we want to make the usage simpler and more intuitive.

“And I think that kind of resonates with a very simple and beautiful name like Pie.”

Will it really make me use my phone less ?

One of the new software’s headline features is its new Digital Wellbeing controls.

These are in part a response to criticism that smart devices can be “addictive” and disruptive to our sleep patterns.

A dashboard provides ways to see how much time the owner has spent using their device, with a breakdown of the hours and minutes dedicated to their most popular apps.

Timers can then be set to limit usage of specific programs.

When the limit nears, users get a warning – and when it is reached the app’s icon becomes greyed out to prevent it from launching. The lockout can, however, be overridden.

Wind Down Mode is intended to act as a further prompt to put down the device at the end of the day.

At a pre-selected time, the screen switches from colour to greyscale – meaning all imagery is seen in shades of grey. In addition, the Do Not Disturb mode is activated, silencing incoming calls and alerts.

Apple is introducing its own Screen Time controls to iOS 12 with a similar goal.

But one physiologist said adults and children alike must be educated about the benefits of the new facilities to ensure they are widely adopted.

“These are good measures, but there are still going to be a lot of people who don’t think they have a problem,” said Dr Nerina Ramlakhan, author of Fast Asleep, Wide Awake.

“So, there will still need to be a lot done to educate people about the pitfalls of becoming unhealthily dependent on the use of their phones and apps.”

How have notifications been improved?

Pie adds images to the alerts – showing both a small picture of the person who contacted the recipient, when relevant, as well as previews of any photos or other media they may have shared.

In addition, the operating system will now allow users to reply to received messages via the notifications themselves using a Smart Reply facility.

This will attempt to predict and offer the desired response, allowing the owner to send it without having type it in themselves.

How has Google boosted battery life?

The tech firm has taken a two-pronged approach to the common complaint that devices run out of power too quickly.

Firstly, it has attempted to take advantage of a common feature of modern mobile processors to minimise battery use when the display is turned off.

Many CPU (central processing unit) chips now feature “big-little” architecture, whereby some processor cores prioritise speed while others focus on being more power-efficient.

Android Pie now schedules many of its background processes to run on the more efficient “little” cores in order to consume less power.

The second approach involves trying to prevent what Google describes as “bad battery days”.

To do this, the system studies an owner’s behaviour in order to anticipate when they will want to use certain apps.

By doing this, it can stop unlikely-to-be-opened apps using the CPU and battery to carry out tasks that could be deferred until later when the device is recharging.

Huawei already offers something similar in some of its phones using its own machine learning techniques.

What else is new?

The other biggest innovation is Slices, which brings parts of an app’s user interface to the fore without requiring the owner to open the program.

For example, entering a taxi app’s name into the search bar might bring up information about how far away the service’s nearest car is and how long it would take to get the user home.

However, this facility is not set to go live until later this year.

Other innovations that will be offered at launch include:

  • App Actions – an anticipatory function that tries to determine what task the user will want their phone to do next – such as to call a specific contact, show selected notes or play a favourite album. The device then presents a couple of these suggestions near the top of its screen so they can be achieved with a single tap
  • a screen brightness facility that studies how a user adjusts their display based on their surroundings, and then tries to make the changes automatically on their behalf
  • new gesture controls to make it easier to switch between apps

According to a report on BBC

Vietnam’s software industry after two decades of development

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Vietnam’s software firms are developing steadily with stable revenue growth rate of 50 percent per annum.

One of the most important goals set in the Party Politburo’s Directive No 58 released in 2000 was developing IT, especially software, into an important key industry

Vietnam’s software firms only began learning ‘how to walk’ two decades ago, when China and India had already become the world’s software export centers. However, they just needed a short time to be added to the list of leading software exporters.

In 2000, FPT took the first steps to export software. But in 2014-2017, the largest Vietnamese IT group was recognized by IAOP (International Association of Outsourcing Professionals) as one of top 100 outsourcing service providers – The Global Outsourcing 100.

Gartner, when assessing the IT outsourcing services provided by the countries in Asia Pacific, put Vietnam among six leading destinations in technology transfer.

Regarding revenue, Vietnam’s software firms have gained steady growth of 50 percent per annum with revenue in 2017 increasing to VND58.5 trillion ($2.7 billion), or six times compared with 2007.

At Industry 4.0 Summit, an important event of the technology circle held recently, a series of Vietnamese products and software solutions utilizing 4.0 technologies were introduced.

A robotic arm developed by FPT caught special attention from visitors and scientists thanks to its capability of simulating human’s hands via an internet connection.

The robot arm is the result of FPT’s experiment connecting IoT’s MindSphere and AWS platforms and different devices that FPT is considering using for smarthomes.

FPT said that it plans to market the first version of solutions to support smarthomes.

FPT has also taken an important step in its path to become one of the world’s leading companies on providing digital transformation when taking over Intellinet, an US-based technology consultancy firm.

The combination of Intellinet’s strength in consultancy and FPT’s technology and business capabilities will provide more comprehensive and higher value-added technology services, especially digital conversion services.

With opportunities from the 4.0 industry revolution, Vietnam will be able to upgrade its position in the global software industry, but it needs more large-scale professional software corporations.

According to Bill Ruh from GE, the software industry will become the most valuable industry, and large-scale professional software corporations will have the best opportunities for development.

With the issuance of Directive 58, which mentioned the development of software IPs, the Quang Trung Software Park (QTSC) opened, followed by a series of other IPs in Hanoi, Da Nang and Can Tho.

According to a report on Vietnamnet

HCMC taxman aims to collect taxes from 14,000 online account holders

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The HCMC Tax Department has invited some 14,000 social network account holders, especially those developing applications on Google and Facebook, to work with their tax offices on their tax obligation. The move follows recent revelations of significant tax evasion among holders of these accounts.

Many individuals have so far earned large sums of money from their game applications on online platforms. However, they have yet to properly declare their income with local authorities.

Nguyen Nam Binh, deputy head of the HCMC Tax Department, told Lao Dong newspaper that the agency had recently requested a local developer to pay a whopping VND4.1 billion, as the individual had reportedly received a total of VND41 billion from Google, YouTube and Facebook over the past two years, without making declarations.

The 20-year-old app developer, whose name was not disclosed by tax authorities, had created a popular online game, where YouTube and Facebook had run in-app ads on his game platform, paying him hefty advertising fees.

Binh also revealed that another game designer with temporary residence in HCMC had earned some VND30 billion from Google, Facebook and YouTube but had yet to make any tax declarations or payments.

However, the individual has now left the temporary residence, so the municipal tax authority has asked its peers in the south-central coastal province of Quang Nam, where the tax evader is registered as a permanent resident, to take over the case.

Having worked with local banks, the department detected that Google, Facebook and YouTube have paid large sums of money to local residents, particularly game developers.

Therefore, the department has asked some 14,000 social network account holders to declare their taxes, possibly worth up to tens of billions of Vietnamese dong.

Under the prevailing regulations, earnings from Facebook, Google and YouTube are considered income from business activities, and anyone with an income exceeding VND100 million is subject to a 5% value added tax and a 2% personal income tax.

According to a report on SGT

 

AirAsia to unveil fifth route to Phu Quoc, Vietnam – Visa free for 30 days

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AirAsia Bhd has unveiled its fifth route into Vietnam yesterday, as the low-cost carrier launched its direct flight from Kuala Lumpur to Phu Quoc, Vietnam.

The four weekly flights will commence on November 2. Phu Quoc marks AirAsia’s 59th unique route, apart from its existing destinations in Vietnam namely, Ho Chi Minh City, Da Nang, Hanoi and Nha Trang from Malaysia. Ganeshwaran Kana reported on the Star News.

Speaking after the launching ceremony, AirAsia head of commercial Spencer Lee said that the launch of the direct flight services to Phu Quoc reflects AirAsia’s continued efforts to strengthen the airline’s connectivity within the Asean region.

He also said that AirAsia will be offering a special introductory all-in-fares for the new route starting from RM90. The special fare will be available for booking from August 8 to 19 for the travel period from November 2 this year to March 29, 2019.

“We are delighted to be the first airline to launch direct services from Kuala Lumpur to one of Asean’s best-kept secrets, Phu Quoc. As a truly Asean airline, we are committed to enable more people to visit more places in this region.

“Our guests can connect seamlessly to Phu Quoc via Kuala Lumpur from 20 cities in 10 countries, including China, India, Australia, Indonesia, Japan, South Korea, the Philippines, Thailand, Singapore and Malaysia. Travelers from any country can also visit Phu Quoc visa-free for up to 30 days, making this paradise more accessible,” he said.

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Taseco Air Services JSC – Core business segment NP increased

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• Benefiting from the fast growing aviation and tourism market
• Airport retail segment: a great business with high return on capital
• Carterings and hotel segment to be the earnings growth drivers from 2019
onwards

1H18 earnings was just reported by Taseco Air Services JSC (HoSE: AST). Below is news on the earnings release and a comment by our analyst, Mr. Tung Do. If you have any questions on the earnings release or would like to have a call with our analyst on it then please let me know. I have attached our previously issued report of May 2018 on AST for your reference.

Taseco Air Services JSC (HoSE: AST) has announced 1H18 business result. Net revenue was posted at VND417.3bn, up 39% YoY. In particular, sales activities accounted for 56.5%, the rest came from service delivery. According to Taseco Airs, revenue has seen a high growth YoY due to the fact that its business locations at Da Nang International Airport have operated steadily (business locations of Taseco Da Nang opened in May 2017, so 1H17 only have the business results of January).

In addition, the operating locations at the end of 2017 at Noi Bai International Airport also led to stable business. The number of passengers traveling by air in 1H18 grew by over 20%, the demand for shopping services of customers also increased. At the same time, the company concentrated on restructuring its products and selling new products.

Excluding expenses, AST posted a net profit of VND76.8bn, slightly down YoY, due to the company had to record the accumulated losses from the consolidation of business results of the associate company – VinaCS Joint Stock Company (VinaCS) is VND9bn.

On the other hand, in 2017, Taseco Airs received additional profit from investment cooperation in financial income of nearly VND16bn from Taseco Oceanview Da Nang Co., Ltd. – Subsidiary of Taseco Airs.

Looking at the core business segment, the company’s net profit increased 38%.

In 1H18, total assets increased 11% compared to the beginning of the period, reaching VND696bn. Short-term assets accounted for 48%, mainly cash and cash equivalents was VND228bn. Long-term assets are concentrated in fixed assets.

PAT as of June was VND104bn, besides the unregulated shareholder profit of VND5bn.

Related news on NHD.vn

ANALYST COMMENT:

EBT from core business (exclude one-off profit last year and loss from JV this year) up 39% YoY, better than my expectation of 26%. The loss from JV is worse than expected (-VND 9Bn in 1H2018 vs my forecasted loss of VND 4 bn for 2018). However, in the end, I think the net effect is still positive given the superior growth in core business. I will revise the valuation for AST for such changes and inform you afterwards.

COMPANY DESCRIPTION:

Taseco Air Services Joint Stock Company provides airport support services. The Company offers short stay accommodation, tourism, pick-up and see-off, food and beverage, advertising, massage, foreign exchange, catering, and hotel services. Taseco Air Services serves customers in Vietnam.

By Marc Djandji, CFA
Head of Institutional Sales, 
Rong Viet S­­ecurities Corporation (VDSC)

Investors pour money into co-working spaces

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Co-working spaces in Vietnam only account for 0.5 percent of the office-for-lease market, but are becoming more popular.

To date, there are 19 co-working spaces in Hanoi and 15 in HCMC, managed by 23 businesses.

“We will begin seeking opportunities in HCMC in 2019,” said Tran Xuan Kien, chair of CoGo.

CoGo is a newcomer in the co-working space market which is managed by the founders of the Tran Anh home appliance retail chain.

It is expected that by the end of 2018, CoGo would have five co-working spaces in Hanoi with total floor area of 12,000 square meters

According to CBRE Vietnam, by the end of April 2018, Vietnam had had 34 co-working spaces in Hanoi and HCMC, managed by 23 businesses, including five foreign invested. The figures show the attractiveness of the market, which has been witnessing steady 55 percent growth rate in the last five years.

Toong, Up, CirCo and Dreamplex are the best known Vietnamese spaces, while the best known foreign invested names are Regus (the UK), Hive (Hong Kong) CEO Suite (South Korea) and Klouds (Singapore).

In both Hanoi and HCMC, most co-working spaces are located in central business districts. In Hanoi, investors now tend to choose positions in the emerging districts of Dong Da and Cau Giay. In HCMC, districts 1, 2, 3, 4, Binh Thanh and Phu Nhuan are the favorite areas for co-working space developers.

The co-working space model first appeared in Vietnam four years ago with sky-high growth rate of 300 percent per annum. However, many developers had to leave the market later.

According to Kien, at that time, investors developed co-working spaces just to explore the market. Each space covered a small area of 500-700 square meters, while offices were old buildings. The investors did not have resources for long term investment, because the co-working space model could not bring profit in the first two to three years of operation.

Under international practice, a co-working space needs to cover a minimum area of 2,000 square meters to create an ‘open community’ and it should be located in A-class office buildings.

An analyst commented that the first-generation co-working space developers made a wrong decision when considering themselves as ‘incubators’. They hoped they could attract startups and set very low rents.

The second-generation co-working space developers have not followed the same way. They have set offices in larger, more luxurious locations with flexible designs to meet the rental needs of a diverse range of customers.

According to CBRE, 91 percent of co-working space users in Vietnam belong to the Y generation, higher than the 67 percent in the rest of the world.

According to a report on Vietnamnet

UOB to launche subsidiary in Vietnam

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United Overseas Bank (UOB) has incorporated its fully owned subsidiary in Vietnam, making it the first Singapore bank to open a foreign-owned subsidiary bank in the country.

According to a report on Straitstimes, UOB had been operating under a branch licence since July 18, 1995 before incorporating the new subsidiary, United Overseas Bank (Vietnam).

To mark the launch of the subsidiary, UOB held a gala dinner in Ho Chi Minh City for more than 300 guests, including representatives from the State Bank of Vietnam and the Ministry of Planning and Investment, and Singapore’s Ambassador to Vietnam.

Mr Wee Ee Cheong, deputy chairman and chief executive officer of UOB, said: “The opening of our local subsidiary marks a new milestone for UOB in Vietnam. Over the last 20 years, we have been steadfast in our commitment to support Vietnam’s economic growth as we connect our clients to investment opportunities in the country.”

He added: “Vietnam continues to be one of the fastest-growing economies in South-east Asia and is a strategically important market for many businesses.

“Our investment into the local subsidiary will deepen our presence in Vietnam and ensure that we are well equipped to support our regional clients as well as Vietnamese consumers and companies in meeting their financial needs for the long term.”

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Hanoi struggles to revive lakes, rivers

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The expansion of administrative boundaries and rapid urbanization have put pressure on the network of rivers and lakes in Hanoi.

According to a report from Vietnamnet, Hanoi leads the country in the number of rivers and lakes with 122 lakes in the inner city and 185 in the suburbs, and 13 rivers.

The rivers and lakes play an important role in the urban drainage system to prevent flooding. Moreover, the lakes, together with surrounding architectural space, create a special character for Hanoi.

But the lakes and rivers are seriously polluted. In 2010, Hanoi authorities had to launch a campaign to rescue lakes because the pollution was serious. Nearly 50 large corporations committed to donate VND900 billion to rescue 45 lakes on the occasion of the 1,000th anniversary of Thang Long – Hanoi’s establishment.

The improvement of Thach Ban 1 and Thach Ban 2, the first project of the campaign, was fulfilled six months later.

The municipal authorities have approved a plan on reviving four rivers – Day, Nhue, To Lich and Tich, under which from now to 2020, waste water will be driven to the concentrated waste water treatment system before running to rivers and lakes.

As tests all showed that the ammonium, coliform and phosphate content in Kim Nguu, To Lich, Set, Nhue and Lu rivers’ water exceeded permitted levels, in 2013, Hanoi put the Yen So waste water treatment plant into operation. 

During that period, all the lakes in the inner city and with historical value will be treated.

As tests all showed that the ammonium, coliform and phosphate content in Kim Nguu, To Lich, Set, Nhue and Lu rivers’ water exceeded permitted levels, in 2013, Hanoi put the Yen So waste water treatment plant into operation.

The 200,000 cubic meter per day plant collects and treats wastewater of Set and Kim Nguu rivers. Later, in late 2016, Hanoi started the construction of the 270,000 cubic meter per day Yen Xa waste water treatment plant in Thanh Tri district).

Hanoi has also spent another trillions of dong on a lot of waste water collection and treatment projects in Ha Dong and Son Tay, 45,000 and 20,000 cubic meters per day, respectively, and the 84,000 cubic meter Phu Do treatment system.

Since September 2016, Hanoi has been gathering its strength to treat the lakes’ polluted water with Redoxy-3C. The solution has brought good results, praised as a breakthrough in environment improvement.

To date, Hanoi has fulfilled the treatment of 87 lakes in the inner city and 44 in the suburbs, and has dredged sludge in 8 lakes.

The local residents in the areas have applauded the city-initiated program on improving lakes’ environment. However, some of them have expressed concern that the lakes may get polluted again as the sources of pollutants still exist.

A cultural researcher commented that Hanoi can protect its beauty only if can protect lakes, rivers and other intangible values.

Good foreign language skills bring more job opportunities: survey

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Candidates with good foreign language skills can find jobs with incomes 30-50 percent higher than those with no foreign language skills, according to Huynh Diep Tram Anh from the Van Hien University.

The average pay businesses offer to workers with good English skills is VND10 million or higher – Vietnamnet reported

Lack of foreign language skills, professional knowledge, and soft skills are the major complaints from employers.

Anh and co-workers conducted a survey by interviewing 152 human resources division heads and deputy heads at enterprises. The team had direct interviews with 82 enterprises’ representatives and 70 interviews through emailed questionnaires.

The interviewed businesses operate in many different fields, but especially in service, trade and education. Most of them said they prioritized recruiting workers who have finished university or junior college.

The workers with foreign language capability accounted for one third of total workers, while 95 percent of businesses wanted to increase the number of workers with foreign language skills.

Asked about the employers’ satisfaction about foreign language skills, 12 businesses (7 percent) said ‘very good’, 32 businesses (21 percent) said ‘good’, 31.5 percent said fairly good, 26.3 percent said ‘average’ and 20 percent said ‘bad’.

The survey found that workers in business fields have varying levels of foreign language skills, which is explained by the specific requirements of the fields.

A survey of newly graduated workers found that only 5 percent of them have self-confidence in their English and 27 percent admitted their English is very poor.

A survey of newly graduated workers found that only 5 percent of them have self-confidence in their English and 27 percent admitted their English is very poor.

International institutions warned that bad foreign language skills will hinder Vietnamese workers from integrating more deeply into the global labor market.

According to ILO, among ASEAN countries, Vietnamese workers’ English skills are worse than those in Singapore, Malaysia, Philippines and Brunei.

Nguoi Lao Dong quoted a human resource consultant as saying that foreign companies would prefer candidates with good foreign language skills, because they believe that ‘understand first, learn later’ is the way to produce qualified workers.

He said that in the context of global integration, foreign language skill is an important factor that employers consider when recruiting workers. Those who can speak 2-3 foreign languages will be preferable.

In principle, employers believe that workers who know at least two foreign languages have good critical thinking skills, which means high capability to adapt to new and unexpected circumstances.

The Ministry of Education and Training has offered a lot of English teaching programs. However, the improvement in skills remains very modest.

Vietnam’s publishing industry faces new challenges with Amazon entry

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In the digital and artificial intelligence era, orthodox publishing groups no longer play the key role in the world’s publishing industry. The role has been transferred to Facebook, Google, Amazon and Apple – Vietnamnet reported

They have become big publishers and are extremely dynamic when launching attractive services, according to Claudia Kaiser, deputy chair of the Frankfurt International Book Association, who spoke at a recent working session with the Vietnam Publishers Association (VPA).

VPA’s deputy chair Le Hoang also said the 4.0 industry revolution will be associated with cutthroat competition. With the support of Amazon – Kindle, writers can introduce their work and launch themselves. A report shows that 31 percent of e-books in the world are self-published and sold by Amazon on Kindle.

The royalties paid by Amazon to authors could be twice as much as the pay by traditional publication houses. Therefore, copyright has become a big challenge between authors and traditional publishers.

The day when Amazon arrives in Vietnam and competes with Vietnamese publishers is near, which will be a big threat to Vietnamese publishers. In addition, the 4.0 industry revolution will also empower the role of e-books in comparison with printed books.

According to Hoang, the day when Amazon arrives in Vietnam and competes with Vietnamese publishers is near, which will be a big threat to Vietnamese publishers. In addition, the 4.0 industry revolution will also empower the role of e-books in comparison with printed books.

Four years ago, e-books quickly became a growing trend but are less popular now. However, analysts all predict that e-books will return in the near future.

Publishers have begun thinking of the transition to adapt to the new age. This is the establishment of ‘on demand printing’.

In Vietnam, an underdeveloped publication market, the challenges are not as severe as seen in developed countries. Large book houses are still full of visitors, so publishers are ignoring the warnings about e-books.

Analysts said the 4.0 industry revolution also brings great opportunities. The market will expand with a higher number of literate people.

They noted there is a growing tendency for publication houses and readers to have direct interaction without any intermediate distributors. This can be implemented thanks to great achievements in technology.

In Vietnam, some book firms are trying to catch up. Anbooks, for example, since its establishment in 2016, has been connecting authors and readers with Social Books, a technology solution. The solution allows readers to talk, write and share comments with many subjects related to the books.

In other words, readers can connect with people who read the same books as well as with authors, producers and distributors.

LGBT groups banned from organizing around the world, says report

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Just 56 percent of the world’s countries allow LGBT groups to organize without the threat of arrest or state harassment.

The LGBT rights group OutRight Action International analyzed 194 countries and found that only 109 allow gay, lesbian, bisexual or transgender groups to register legally, which it believed further marginalizing gay organizations from mainstream society. Hugo Greenhalgh reported on Reuters.

In 55 countries, including Russia and Lebanon, gay organizations exist, but state authorization is denied. Others, such as Malaysia, ban LGBT groups outright.

“This is a way of hindering and trying to stop any kind of progress or push for equality that LGBT groups want to do,” Maria Sjödin, deputy executive director of OutRight, told the Thomson Reuters Foundation.

“I truly believe that change in society happens because people organize and push for it. That is how greater equality for LGBT people has been achieved.”

The survey found that in 30 countries, including Afghanistan, Turkmenistan and Somalia, it was impossible to find any officially registered LGBT organizations at alorl.

Denying citizens the right to organize is a “way for governments to make it so hard that I guess they hope that people will just give up,” Sjödin added.

Governments employ both religious and moral reasons for curtailing civil society organizations, the report noted, with groups banned for being against the “national interest”.

In countries such as Nigeria, homosexuality is illegal, making the process of applying even more problematic.

“Without the registration there are lots of things you cannot do,” said Jean Chong, co-founder of Sayoni, an LGBT rights organization based in Singapore.

“It is impossible to get an office space and you cannot ask for donations publicly as you are not a legal entity.”

Registration is formally possible in Singapore, but the report noted that attempts by civil society groups to apply for authorisation are frequently blocked.

Budding gay activists instead register under more generic umbrella titles, such as women’s or human rights groups, Chong said. But the consequences for countries that outlaw civil society groups altogether could be harsh, she added.

“We are talking about suicide, depression and substance abuse – and violence. It’s always there, but just not seen and not in the public eye,” she said.

“When groups cannot register they cannot effectively raise funds, so it limits their ability to do things like research and collect data and do substantive advocacy around these issues.”

Ex-leader of VNCB sentenced to 20 years in prison

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Pham Cong Danh, ex-Chairman of the Board of Directors of the Vietnam Construction Bank (VNCB), has been given a 20-year prison term for “deliberately violating State regulations on economic management, causing severe consequences” at the bank.

The People’s Court of Ho Chi Minh City announced the verdict on August 6.

Given his 30-year prison term announced in the first phase of the case, Danh (who is also Chairman of the Board of Members and General Director of Thien Thanh Group) will have to serve 30 years in prison (the highest level for a fixed prison sentence).

The 45 other defendants received from two years of suspended sentence to 30 years of imprisonment for the same charge.

While Tram Be (former Vice Chairman of Saigon Thuong Tin Commercial JSB, also known as Sacombank) will have to spend four years in prison, Phan Huy Khang (former General Director of Sacombank) will be imprisoned for three years. Phan Thanh Mai (former General Director of VNCB) received a 10-year prison term (the total sentence including the first-phase penalty is 30 years).

In the second phase, they are accused of causing economic losses of more than 6.1 trillion VND (261 million USD) to VNCB. The first phase involved losses of 9 trillion VND (385.2 million USD).

The trial opened in January 2018, however on February 7, the court decided to return the dossier of the case and request further investigation. The first-instance trial was resumed on July 24.

The judging council said although Pham Cong Danh and his accomplices lacked financial capacity, he still received the Trust Bank, which he later renamed the VNCB, from Hua Thi Phan – former senior advisor of the management board of Trust Bank, and her accessories.

To maintain the bank’s liquidity, look after clients and raise charter capital, Danh and his accessories committed a series of wrongdoings, causing losses of over 15 trillion VND (642 million USD) to VNCB.

In the second phase of the case, Danh used 29 companies established in his or other people’s names to borrow money from Sacombank, TPBank, and BIDV. Following that, he deposited VNCB money in these banks as guarantees for the 29 companies’ loans, causing over 6.1 trillion VND in losses to VNCB when these companies were unable to pay off debts.

The court did not support the viewpoint of recovering the over 6.1 trillion VND from Sacombank, TPBank, and BIDV, saying that it is the evidence of the case and not the money VNCB deposited at these banks to guarantee the 29 companies’ loans. The court said this matches the central bank’s verification that Sacombank, TPBank, and BIDV did not suffer from losses in this case.

It decided that the over 6.1 trillion VND must be recovered from many sources that Danh used for after borrowing the money, including over 2.3 trillion VND from VNCB, now the Construction Bank.

It added that the Construction Bank will have to return 4.5 trillion VND to Pham Cong Danh as he previously used this money to raise VNCB’s charter capital but was rejected by the central bank.

Because over 2.3 trillion VND will be recovered from the Construction Bank as the evidence, this bank only has to return over 2.1 trillion VND to Danh. However, this sum will be kept to ensure Danh’s observance of the verdict, the judging council said.

Source: Dtinews

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