Waste: key raw material for recycling industry

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The demand for waste as the input material for the recycling industry in Vietnam has increased by 10-20 percent per annum. 

Plastics and paper industries use the most recycled materials.

Waste, if not re-used, will be a threat to the environment. Recycling waste is an important part of production activities of many countries.

To maintain the operation of the recycling industry, some countries, including China, have to import millions of tons of waste a year – Vietnamnews reports

However, in July 2017, China informed WTO (the World Trade Organization) that it will stop importing 24 types of solid waste, including plastics and paper scrap –

Under the plastics industry development strategy by 2020 drafted by the Ministry of Industry and Trade, enhancing waste treatment and scrap recycling is one of the key solutions to develop the plastics industry.

Waste exporting countries, including the US and European countries, don’t know what to do with the amount of 75,000 TEU they cannot ship to China each month.

South East Asian countries, including Vietnam, are expected to become a new destinations for waste materials.

Under the plastics industry development strategy by 2020 drafted by the Ministry of Industry and Trade, enhancing waste treatment and scrap recycling is one of the key solutions to develop the plastics industry.

The Vietnam Paper and Pulp Association (VPPA) has  recommended that enterprises shift to collecting scrap paper and recycle scrap.

Importing waste is an important trade activity that serves domestic production, especially when the supply in Vietnam is short.

A report shows that scrap paper in Vietnam can satisfy 20 percent of material demand of the paper industry, while the remaining must be fed by imports.

Experts estimate that recycling one ton of scrap paper would save 24 plants, 40,000 liters of water, 4,000 kwh of electricity and cut 900 grams of CO2.

More importantly, recycling helps reduce deforestation and pollution.

However, the recycling industry in Vietnam still cannot develop, partially because of problems in the material collection.

The waste collection has been done on a small scale and in a scattered way.

Lee & Man, a paper manufacturer in Hau Giang province, plans to make paper with 90 percent of materials from scrap paper. It has good recycling capability and uses modern technology. However, as the scrap paper supply is not enough, it has to import scrap to maintain production.

The problem now is the lack of industry that supports recycling activities. Most of the machines, equipment and chemicals used in the industry are self-made or low quality imports.

In addition, Vietnam still doesn’t have a perfect legal framework to support recycling enterprises.

HCM City at loss over Uber tax arrears

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HCM City Department of Taxation have said they didn’t know what to do with the VND53.3bn in Uber tax arrears as the company had stopped operations in Vietnam.

The department requested Uber to pay VND66.68bn (USD2.94 million) in tax arrears by December 23 last year, but the company only paid VND13.3bn (USD586,000). Uber filed a lawsuit against the HCM City tax department after the decision to forcibly collect the tax, saying that it had fulfilled its tax obligations under the Double Taxation Avoidance Agreement signed between Vietnam and the Netherlands.

Tran Ngoc Tam, head of the HCM City Department of Taxation, said the court had received this case but recovering the tax arrears would be unlikely. Even if the Department of Taxation won this case, it will still be difficult as Uber doesn’t have Vietnamese bank accounts or representative offices – Dtinews reports

Dang Duy Khanh from the General Department of Taxation said, “When Uber sold its business to Grab, it would have been different if it had been stated that Grab must pay taxes for Uber. We should review the Uber-Grab contracts.”

He went on to say that they should hold Grab responsible.

Deputy Minister of Finance Vu Thi Mai also said that the buyer should take over the taxpaying responsibility in mergers and acquisition cases.

However, Grab announced that they are not involved in the case. Grab representative said, “This is Uber’s responsibility. Grab did not buy Uber’s legal status in Vietnam. We will not comment anymore on this problem. Any questions should be directed to Uber’s Director of Communications in the Asia Pacific.

Q2′ Sabeco Vietnam net profit slips

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Vietnam’s largest brewer Sabeco reported on Monday second-quarter net profit of 1.29 trillion dong ($55.46 million), down 6.37 percent from a year earlier – Reported by Reuters.

The company’s total revenue in the April-June period rose 11.7 percent from previous year to 9.24 trillion dong, Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, said.

Net profit in the first half of the year dropped 4.7 percent from a year-ago period to 2.45 trillion, the company said.

Earlier this month, the brewer said it expected a full-year net profit of 4 trillion dong, down 19 percent from previous year, dented by a rise in material prices and consumption tax.

Sabeco, which sells brands such as Saigon Beer and 333, is more than 50 percent owned by Thai Beverage PCL (ThaiBev).

By Khanh Vu

Vietnam: 14 people were killed on wedding car crash

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Fourteen members of the same family were killed in a car crash in central Vietnam on Monday (Jul 30) en route to a wedding party, including the groom who died instantly when their van hit a container truck, police said.

Road accidents are the leading cause of death in Vietnam, where traffic laws are loosely obeyed and road infrastructure is patchy.

Local authorities said Monday they were investigating the cause of the deadly crash.

Around 8,200 people died in traffic accidents across Vietnam last year, down from about 8,600 the year before. Most of those killed were on motorbikes.

Vietnam’s densely packed cities like Hanoi and Ho Chi Minh are crowded with motorbikes and cars competing for space with pedestrians and street vendors.

Meanwhile, transport trucks increasingly line newly built highways delivering goods across Vietnam, or into neighbouring countries.

Vietnam Airlines is the fifth carrier to have A350 operations at Melbourne Tullamarine

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Vietnam Airlines has commenced a seasonal upgauge of its Ho Chi Minh City-Melbourne service, with the Airbus A350-900 replacing the Boeing 787-9 on the route until the end of October.

Flight VN781, operated by A350-900 VN-A897, touched down at Melbourne Airport a little after 0830 on Monday, following its eight-hour journey from Ho Chi Minh City.

The aircraft, which features a Skyteam livery, was on the ground for about two hours before operating the reciprocal VN780 back to Ho Chi Minh City.

Vietnam Airlines is the fifth carrier to have A350 operations at Melbourne Tullamarine.

The A350-900, which Vietnam Airlines has configured to carry 305 people across business, premium economy and economy, will be on the route for the next three months. Previously, the airline operated three-class, 274-seat Boeing 787-9s between Melbourne and Ho Chi Minh City.

Vietnam Airlines, which has 12 A350-900s in service and two further airframes due for delivery in the period ahead, said in early July the equipment change was in response to a spike in demand in recent months.

“It is great to see an increase in demand from our Australian travellers and Vietnam Airlines is delighted to announce the upgrade to some of the current fleet to the new Airbus,” Vietnam Airlines general manager for Australia branch office Hung Truong said.

In addition to Melbourne, Vietnam Airlines also flies to Sydney from Ho Chi Minh City and Hanoi.

No airline in Oceania has ordered the A350.

However, the next generation Airbus widebody twin is an increasingly common sight at local airports thanks to services operated by Cathay Pacific (Auckland, Brisbane, Melbourne and Perth), China Airlines (Brisbane, Melbourne and Sydney), Qatar Airways (Adelaide), Singapore Airlines (Brisbane and Melbourne) and Thai Airways (Melbourne).

And Airbus recent brought its A350-1000 to Sydney in February as part of a world tour.

Looking ahead, Malaysia Airlines also plans to operate the A350-900 on one of its two daily Sydney-Kuala Lumpur flights during September and October. Malaysia Airlines normally A330s to serve Sydney from its Kuala Lumpur hub, with the A380 also deployed on the route during peak periods.

The A350 platform is also a contender for Qantas’s Project Sunrise challenge to Airbus and Boeing for an aircraft capable of operating nonstop from Australia’s east coast to London and New York carrying 300 passengers across four cabin classes.

Source:  Australian Aviation

Vietnam will stop issuing new licenses for the import of waste as shipments build up at ports

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Waste imports into Vietnam and other Southeast Asian countries have risen significantly since the Chinese government banned the entry of several types of solid wastes from the beginning of this year, according to Vietnam’s Ministry of Natural Resources and Environment – Reported by Reuters

The authorities need to “prevent waste from entering Vietnam to keep the country from becoming a dumping site, affecting the environment and people’s lives,” the government said in a statement late on Wednesday.

The surge in waste imports has caused congestion at several Vietnam ports, with around 6,000 containers now sitting at entry points that need to be handled, the ministry said in a statement earlier this week. The ministry did not say how much waste Vietnam has imported this year.

Waste-processing is a supplemental source of raw materials for Vietnam’s paper, plastic and steel industries.

“The demand for paper and plastic scraps as materials for production does exist, but this benefits only the processors, not the environment,” according to the government statement.

Malaysia’s government on Tuesday also revoked the import permits of 114 factories that process plastic waste, following local media reports of increased pollution in areas where the factories operated.

Malaysian Housing and Local Government Minister Zuraida Kamaruddin said the factories affected will have three months to bring their operations up to speed with international environmental standards before they can reapply for the permits, according to a report by national newswire Bernama.

Vietnamese Prime Minister Nguyen Xuan Phuc said in Wednesday’s government statement that Vietnam will track down the owners of the containers piling up at its ports and launch criminal investigations into any illegal imports or violations of environment law.

Pollution is a political risk for Communist-ruled Vietnam, where nationwide protests have been held to save trees and against a steel firm accused of polluting the sea.

One of Vietnam’s worst environmental disasters happened in 2016, when a steel plant being developed by Taiwan’s Formosa Plastics Corp contaminated coastal waters and unleashed an outpouring of anger throughout the country.

An editorial published on Monday in The People’s Daily, a mouthpiece of China’s Communist Party, said the nation’s ban on solid waste imports will have a “temporary impact” on countries that have waste recycling industries, but that it will eventually lead to better global standards in the long run.

The editorial said China’s ban will help improve the country’s environment and “promote the universal international principle that producers of waste should be responsible for the whole life cycle of that waste.”

By Khanh Vu

Vietnam become the most trading partner of China in the Asean bloc

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Vietnam has for the first time ever become China’s biggest trade partner in the Asean bloc, with two-way trade hitting over US$10 billion for every month of 2018.

In June 2018, China-Vietnam economic turnover hit $11.2 billion, dwarfing the $9.3 billion between China and Malaysia, which has held the title of China’s largest Asean trade partner for several years, said Economic and Commercial Counsellor of the Chinese Embassy in Vietnam Hu Suo Jin during a press conference held yesterday on bilateral economic ties.

In the first half of this year, bilateral trade grew by 28.8 percent compared with the same period last year, higher than the 15.5 percent growth rate achieved between China and Malaysia, the runner-up in the Asean bloc.

Hu Suo Jin stressed that this has been the “historic best period” in economic ties between the two countries, and Vietnam’s trade deficit with China is being worked on by both countries’ agencies.
The Chinese embassy’s trade official also said it has worked with border provinces’ authorities to facilitate the import of Vietnamese agricultural produce into China.“The reported jams at the border gates were not due to a lack of policy mechanisms by the two countries’ authorities, but simply due to overwhelming growth rate of commodity exchange between China and Vietnam,” Jin said.

Charge d’affaires of the Chinese Embassy in Vietnam Yin Haihon also announced that there will be several high-level visits made in the latter half of the year, and pledged that the embassy will do its best to encourage capable Chinese enterprises to invest in Vietnam.

 

Vietnam will be able to take Singapore’s stock market crown?

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The Lion City has long been atop the regional capital markets food chain, but other nations such as Vietnam, Malaysia and Indonesia are starting to compete.

Just three years ago, Vietnam was still a cipher in the global financial system. The South-east Asian nation had only ten US$1 billion (S$1.36 billion) listed companies, while daily trading volume on the stock market came in at around US$100 million.

According to a report by JACQUELINE WOO on SCMP, that picture, however, is vastly different today. It is not quite Wall Street, but the country’s financial centre, Ho Chi Minh, is fast heating up.

Last year, the country’s benchmark Vietnam Index soared to a 10-year high with a 47 per cent gain – taking the crown as Asia’s top performer, and the third best in the world.

The size of the Ho Chi Minh Stock Exchange surged 75.2 per cent over the year to hit US$115.46 billion, going by annual statistics from the World Federation of Exchanges (WFE). The number of listed companies valued at over US$1 billion as well as daily trading volume has tripled.

“Investors have been attracted by Vietnam’s combination of growth and stability,” said Mr Barry Weisblatt, head of research at Viet Capital Securities, adding that a privatisation drive has also helped to spur market activity.

Vietnam’s phenomenal growth – Maybank Kim Eng Research regional economist Chua Hak Bin has dubbed the economy “a rock star”– is but a snapshot of the Association of Southeast Asian Nations’ (Asean) surging capital markets.

Growing in scale and sophistication, markets such as Indonesia and Thailand are challenging the status quo.

A new order

For the past two decades, Singapore has been the undisputed regional champion. Asean companies looking for a listing have viewed the Lion City as the first choice, especially given the republic’s exposure to international investors.

But things are quickly changing, with economies such as Indonesia, Thailand and the Philippines looking to dethrone Singapore from its lofty position.

With a market capitalisation of US$787.28 billion last year, Singapore was the 16th largest equity market in the Asia Pacific.

But its growth was insipid compared with others in the region. WFE data showed the Singapore Exchange’s (SGX) market capitalisation grew 13.6 per cent from 2016, compared with Hong Kong’s 37.3 per cent.

In Southeast Asia, the Ho Chi Minh Stock Exchange clocked the biggest jump at 75.2 per cent, followed by Indonesia (22.6 per cent), the Philippines (22 per cent), Thailand (15.7 per cent) and Malaysia (14.5 per cent).

The SGX in recent years has been plagued by a shrinking number of IPOs, delistings, and low liquidity levels.

For the first quarter of 2018, the daily average value of the bourse’s securities was S$1.45 billion (US$1 billion), compared with the average daily trading value of US$2 billion in Thailand, Asean’s most liquid market.

Regional bourses have been more successful in attracting new listings, particularly of domestic companies.

Vietnam had the biggest initial public offering (IPO) haul by proceeds in the first six months of this year, with three deals raising a combined US$2.5 billion, according to data compiled by EY. The communist country has more in tow; it has targeted IPOs for a total of 64 state companies this year, including telecoms firm MobiFone, and 18 others in 2019.

Indonesia booked the most deals at 19, with proceeds of US$700 million.

Meanwhile, the SGX attracted seven IPOs in the first half of 2018, with US$400 million raised in proceeds, thanks mainly to the listing of Chinese outlet mall operator Sasseur Reit.

Mr Max Loh, EY’s managing partner for Asean and Singapore, notes it is natural for most listings outside Singapore to come from local names. “There is familiarity with the brand, business and market.

Everything else remaining equal, there is a propensity for companies to list on their home exchanges – unlike before, when their capital markets were less developed and the SGX was the clear choice.”

In fact, Indonesia has already declared its intention to challenge Singapore. It has been trying to draw local companies listed in the Lion City to go public in Jakarta, as well as foreign firms operating in its country.

The Indonesia Stock Exchange (IDX) also wants to increase its offerings, from local exchange-traded funds to derivatives, and replace the SGX as the top dog in Asean by 2020.

Fighting back

But Singapore is not giving up without a fight.

The city state’s stock market still dwarfs other regional exchanges and remains an international financial hub.

Mr Robson Lee, a partner at law firm Gibson Dunn, notes that SGX also has an excellent reputation for its transparency, governance and enforcement of its securities laws and listing rules vis-à-vis the other Asean countries.

“But this would not be an insurmountable threshold for the other Asean stock markets to cross, and to give the SGX a run for its money in time to come. The SGX should not rest on its laurels,” said Mr Lee.

That said, Singapore will, in the short-term, continue to play a key and relevant role even as the landscape shifts.

It is also moving to head off the competition by focusing on technology stocks, which many see as the future of the economy. The SGX recently announced moves to allow a dual-class share structure, used by big tech firms such as Facebook and Alphabet, formerly known as Google.

“Singapore will continue to be the regional hub for some time, especially after allowing the new dual-class shares structure for some types of IPOs,” said Mr Romaine Jackson, Dealogic’s head of South-east Asia.

That could, in turn, attract entrepreneur-led Chinese names and Asean tech unicorns that have yet to list.

“It will be interesting where a name like Go-jek [a ride-sharing start-up comparable to Uber] in Indonesia decides to list in future,” Mr Jackson said.

Long-term, market watchers believe the future could lie in collaboration rather than competition.

On the economic front, Asean is trying to move towards a common market with a free flow of goods, capital and people, so it would make sense for markets to be integrated as well.

Gibson Dunn’s Lee believes a more sustainable move would be to develop a pan-Asean stock market. This means installing a more unified capital market with comparable listing rules and regulations in each country that would allow international investors to trade across the region.

An Asean combined entity would offer investors more than 3,000 listings, firmly placing Asean on the global map.

Of course, such an idea may yet prove just a pipe dream. In 2013, the Asean Trading Link was set up to connect stock markets in Malaysia, Singapore and Thailand, but terminated without much fanfare last year amid lacklustre investor interest. But for average investors in Vietnam, that might not matter much. They may well be happy just raking in handsome gains from an economy with a long runway for growth.

Why Vietnam plans to ban motorbikes by 2030 in Hanoi?

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Authorities in Vietnam are taking major steps to improve the air quality in one of the most polluted cities in Southeast Asia, including an ambitious plan to ban motorbikes by 2030.

In 2016, Hanoi had the second worst air pollution in the region, only beaten by Saraburi, in Thailand’s industrial heartland. And in 2017, only 38 days had air quality that was considered good by the World Health Organization. JAZEERA reported

The city, home to 7.7 million people, is famous for the thousands of motorbikes that descend on its streets every day.

These bikes, together with coal-fired power plants, heavy industry, a surge in construction projects and the seasonal agricultural burning, are largely blamed for the pollution.

The pollution peaks from December to February, during the drier months of the year. This is also the time when winds draw dirty air from southern China across the region. Studies have shown that the pollution largely originates from the vast cities of Chengdu and Chongqing.

To combat the air quality problem, Hanoi city council took the drastic measure earlier this month of banning motorcycles by 2030, hoping to boost public transport.

It has also planted more than 80 percent of a target of a million trees, is pushing people to switch to cleaner-burning heaters from the polluting honeycomb charcoal stoves and trying to encourage people to replace petrol with cleaner biofuel.

It is hoped that these changes will bring a definite and visible improvement to the quality of the air in Vietnam’s capital, and therefore an improvement in the quality of the life of the locals.

 

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Cam Ranh: a guide to Vietnam’s peaceful, less developed tropical resort

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This idyllic area is emerging as one of Vietnam’s top beach resorts. Just like the food, Jeffrey Simpson finds it perfectly to his taste. Check out his review on inews.co.uk :

Hoa Le is leading a Vietnamese cookery lesson when he pauses to emphasise two things every visitor to the South-east Asian country should do.

“The first thing – try the food,” Le, the 28-year-old restaurant manager of The Anam resort on the Cam Ranh peninsula says. “The second thing is, you try to cross the street. Because in Vietnam we have lots of motorbikes and it’s an adventure.”

Thankfully, the bustle associated with the country’s densely populated cities seems a world away from this peaceful stretch of tropical coastline in central Vietnam.

So I’ll get my fill of frenetic activity later – for now I’m focusing on the food as Le takes me step-by-step through the preparation of several typical dishes, including spring rolls, lemongrass chicken and, of course, the national dish – pho, noodle soup.

Le explains that Vietnamese cooking is about achieving a “ying-yang” quality. “We make every meal balanced – not too sweet, not too salty, not too spicy. Everything is combined and you feel better.”

But there are regional variations. “The people in the north enjoy their food a little bit lighter than in the centre and the south,” Le says. “The people in the south like sweet and they put more sugar in. And in the centre we like spicy.”

While Vietnam has been increasingly open to tourism since economic reforms in the mid-1980s and dissolution of the Soviet Union in the early 1990s – with a notable surge this decade – Cam Ranh has remained largely less travelled and less developed. Choosing between lounging at one of the Anam’s pools or the beach is one of the most difficult dilemmas facing visitors to Cam Ranh

Choosing between lounging at one of the Anam’s pools or the beach is one of the most difficult dilemmas facing visitors to Cam Ranh

But the area, where the US established an air and naval base during the Vietnam War, has been slowly opening to visitors; with its turquoise shores and more than 300 days of sunshine a year, it’s an idyllic sanctuary far removed from the era of military combat. These days it can feel like you have the place to yourself.

When I emerge from my hotel suite at 8am the next day, the sun has already muscled its way into the sky and is burning strongly. I wander through clusters of palm trees to The Anam’s 300 metres of powdery-sand beachfront and enjoy the gentle surf without a person in sight.

The Anam opened last spring as one of only a handful of boutique resorts. Several sprawling hotels under construction in the distance suggest this solitary swim might not be possible in a few years.

Visitors often have the beach to themselves first thing in the morning at Cam Ranh

Later that afternoon I stroll up the beach – aptly called Bai Dai, or Long Beach – and encounter nobody. A few translucent man o’ wars as big as my head lie stranded in the sand while small crabs scurry across my path.

After about 20 minutes, I arrive at a cluster of rudimentary bamboo beach huts where women are grilling seafood on small barbecues, makeshift shops are selling inflatable beach toys and vendors are hawking drinks out of portable coolers.

A teenager floats on his stomach in the shallow water as a puppy scampers around on his back trying to stay dry. Some children are digging a hole big enough for them to hide in. Ask a local… “There are a lot of beautiful mountains in the area. My friend just opened a motocross business and they do a lot of tours up in the mountains – the scenery is incredible.” TOM LOWTON bar manager

Unlike the resort’s foreign holidaymaker crowd, here it’s all smiling Vietnamese families and teenage couples frolicking in the waves or sitting around on the sand.

There’s a sign fashioned out of a surfboard in front of one place, fittingly called The Shack, and I wander in for a beer that’s served with ice cubes because the bartender has just restocked the fridge and the bottles are warm – but so is the welcome I receive from Tom Lowton, who runs the place, so I don’t mind.

“I originally came here to learn how to scuba dive,” Lowton, a 25-year-old from Hexham, near Newcastle, tells me. “I had just finished school and was out here on a gap year and I pretty much fell in love with the place.”

He stuck around for about six years working at dive centres before taking over at The Shack, where he also organises diving and snorkelling excursions among the coral reefs and underwater caves in the clear waters around Nha Trang and Cam Ranh.

But there’s more to do around here than just be a beach bum. I head 30 minutes up the coast to the booming resort city of Nha Trang, where you can try that crossing-the-street thing as hundreds of incessantly honking motorbikes, cars and trucks almost impossibly miss pedestrians and each other while careening around. I set out on what is, at times, a white-knuckle ride on a Vespa through the cacophony for a tour of some artists’ studios.

One stop is at the gallery of Mai Loc, whose monochrome photographs of scenes of daily life in the country have won him awards. As a child he’d had to work as a coffee smuggler and gold miner to help his mother. He was a cyclo-taxi driver in 1995 when he met a Norwegian couple who later gave him a camera as a gift.

While taking tourists on sightseeing tours into the countryside, he taught himself how to take photos and has since made a successful career of it, something he hadn’t thought possible as a child.

“It is very important for tourists that they should read and learn about the history and culture of Vietnam,” Loc, 51, says. “It’s not just bar, beach and bed.”

On the last night night of my trip I revisit Nha Trang, where I sip drinks while enjoying the panoramic view of the coastline from the open-air 43rd floor of the Skylight nightclub amid throbbing music and an international clientele.

Just like the country’s cuisine, my visit to Cam Ranh has had a ying-yang quality to it.

The Anam resort has three swimming pools and a spa on its well-manicured site on Long Beach in Cam Ranh

When to go

The best time to visit the central coast of Vietnam is between February and August, when the weather is warm and almost every day has sunshine. There’s a risk of typhoons from August to November.

How to get there

Vietnam Airlines (vietnamairlines.com ) operates the UK’s only nonstop scheduled services to Vietnam, with daily Dreamliner flights from Heathrow to Hanoi or Ho Chi Minh City. Return fares start at £464. Internal return fares between Hanoi/Ho Chi Minh City and Cam Ranh Nha Trang airport start at £37.

Where to stay

The Anam has 117 villas, 96 rooms and suites, three swimming pools and a spa on a well-manicured site. Double rooms from £147 per night (theanam.com). Most people combine a trip with a stopover in Ho Chi Minh City, where The Reverie Saigon is a top option. Rooms start from £258 B&B (thereveriesaigon.com).

Where to eat

The Anam has several restaurants with different themes, but all are excellent. The Indochine and Lang Viet overlook swimming pools and the beachfront and serve classic Vietnamese dishes such as pho and stewed pork belly. The Colonial is the property’s fine-dining restaurant that focuses on classic French cuisine with wine pairings. The Shack serves a variety of Vietnamese and Western dishes on Long Beach (shackvietnam.com).

What to see

Tours of Nha Trang and its attractions, including the Art Tour, can be booked via Nha Trang Vespa Tours (nhatrangvespatour.com). Scuba and snorkelling tours can be booked via The Shack (shackvietnam.com).

More information

Until June 2021, British passport-holders can visit Vietnam visa-free for up to 15 days (vietnamtourism.com)

Vietnam: Half a million computers infected with BrowserSpy

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Antivirus Software of Bkav has discovered a dangerous kind of spyware called BrowserSpy, which is believed to be spying on over 560,000 computers in Vietnam, and the number is rising, said a source from Bkav Corporation on July 26.

According to a report by Van Ly on Saigon Times, BrowserSpy can spy on users, seeing much of the information on their computers or laptops, which enables it to steal personal data, bank account details and email and Facebook passwords. Bkav suggested users remove the viruses and change their Gmail, email and Facebook passwords, and especially their bank account login details.

Hackers create fake software as a shell in which they hide BrowserSpy. Users download it without considering whether it might be dangerous for their computers or laptops. After activation, BrowserSpy adds a plug-in for the purpose of tracking and spying on users.

Accordingly, the spyware can secretly steal personal information and, more dangerously, downloads other malware to control users’ computers and carry out an advanced persistent threat attack.

Vu Ngoc Son, deputy head of the anti-malware department of Bkav, remarked that users would find it hard to recognize which computer was infected with BrowserSpy as there are no unusual signs on display.

“Users can install antivirus software on their computers,” Son said, adding that users should not download any software with unclear origins.

HCM City tightens regulations over pavement usage

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The Department of Transport in HCM City has issued new draft regulations on the using of pavements which states that pavements less than 1.5 metre-wide and narrower will be reserved for pedestrians.

The draft regulations have been submitted to the HCM City People’s Committee to replace Decision 74 issued in 2008.

The new regulations will enlarge the pedestrian-only pavements from one to 1.5 metres wide. Pavements that are 1.5 to 3 metres wide can be also be used as event venues, rubbish, material transfer points for construction sites or for businesses.

Pavements that are 3 to 5 metres wide can be used as parking lots for motorbikes. Pavements that are larger than five metres can be used for businesses as well as parking areas.

Those want to use the pavements as transfer points, parking or business areas must pay fees to the city. It will take seven days to get a 12-month license.

According to the Department of Transport, many terms in the Decision 74 can still be applied. However, inspections have revealed many shortcomings in pavement management and usage in various districts and communes.

For example, the decision doesn’t specify the roles of related agencies in pavement management such as the Department of Planning and Investment, the Department of Construction and the city Traffic Safety Committee. The new draft regulations aim to improve upon the shortcomings for better pavement usage.

Source: Dtinews

E-commerce market: big players incur big losses

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The total accumulative loss of the four biggest players in the e-commerce market has reached VND4.5 trillion.

E-commerce, which has witnessed a boom in the last five years, saw a high growth rate of 25 percent in 2017, according to the Vietnam E-commerce Association (Vecom).

Analysts believe it will be maintained in the 2018-2020 period.

Meanwhile, Statista estimates that the total revenue of the e-commerce sector would reach $4 billion by 2020.

In such a fledgling and fast-growing market, all the big players have been seeing losses as they are spending a lot scrambling for market share.

Joining the market in 2012, Lazada is the biggest spender. The finance report of Recess, the legal entity that owns Lazada, showed a loss of VND977 billion in 2015 and VND1.019 trillion in 2016.

The loss was even higher than its revenue, VND600 billion in 2015 and VND907 billion in 2016. The high expenses on sales and management were the major reasons behind the loss.

By the end of 2016, the accumulative loss of the e-commerce website had reached VND2.743 trillion, while its charter capital was VND15 billion only. Its working capital is mostly from loans.

In early 2018, Alibaba stated it will pour $2 billion into Lazada. Prior to that, it spent $2 billion to acquire 83 percent of Lazada’s shares in 2017.

Shopee has also found its name in the list of biggest losers. In 2016, when it joined the market, Shopee took a loss of VND160 billion. But the figure soared to VND600 billion in 2017.

By the end of 2017, Shopee’s total assets had reached VND730 billion, or 10 times higher than earlier that year.

If compared with these two e-commerce websites, backed by large corporations, Tiki and Sendo are smaller.

After seven years of operation, Tiki has incurred a loss totaling VND600 billion. While Tiki got high revenue of VND62.4 billion in 2016, which was six times higher than 2015, it still took a loss of VND179 billion in the year because of the high sale costs.

Like other e-commerce players, Tiki doesn’t need to worry about the loss. In early 2018, JD.com committed to pour more money into the website. The commitment was made just two months after the Chinese group invested $44 million in Tiki in November 2017.

Sendo spends less money that the other three. It reported a modest loss of VND60 billion in 2015 and VND136 billion in 2016. By the end of 2016, Sendo’s total loss had climbed to VND230 billion.

Chi Mai report on VNN

Foreign banks gear up to expand networks in Vietnam

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In the last two years, Vietnam saw many foreign finance institutions leaving Vietnam or scaling down their investment.

But the situation is different this year. Foreign banks tend to expand their operation in Vietnam by opening more branches and transaction offices over the country.

The move shows that foreign banks have big ambitions in the Vietnamese market and want to compete with Vietnamese banks in the retail banking sector.

Public Bank got the nod from the State Bank of Vietnam (SBV) to open three more branches and two more transaction offices. When the plan is fulfilled, the bank will have 18 branches and offices in major cities of Vietnam.

Prior to that, some other foreign banks took similar moves. Woori Bank Vietnam, for example, got approval for its plan to open five more branches and one transaction office.

In mid-May 2018, Shinhan Bank Vietnam officially opened four branches and transaction offices in Hanoi and HCM City, raising the total number of transaction points to 30. Shinhan with the largest network of any foreign bank in Vietnam.

Other foreign banks have poured more capital into their branches in Vietnam. NongHuyp Bank Hanoi branch and Bank of China HCM City branch have got the nod from the State Bank’s Governor to increase their capital.

The former has been allowed to raise capital by 2.28 times, from $35 million to $80 million, while the latter from $80 million to $100 million.

Meanwhile, some foreign banks which have representative offices in Vietnam have decided to extend their operation in Vietnam. DBS, JCB International in Hanoi both asked for extension of operation for five years.

Thoi bao Ngan hang reported that the leaders of Exim Thailand in May had a meeting with the representative of the State Bank, expressing its willingness to enter the Vietnamese market by setting up a representative office here.

However, some other banks still cannot make decision on whether to enter Vietnam. Krungsri, a large bank from Thailand, has postponed its plan to make investment in Vietnam after two years of surveying the market. The bank thinks the M&A cost may be higher than estimated, while there exist disadvantages in licensing and in the business environment.

Most foreign banks had a prosperous year in 2017 with business results better than Vietnamese banks with the same scale in capital and total assets.

[Mai Anh] report on VNN

Vietnam property preferred by foreign investors in M&A

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Vietnam has become one of the most favored destinations for foreign property investors in the development of mergers and acquisitions (M&As), said real estate services provider Savills Vietnam in a statement on July 27.

In the first half of this year, Vietnam’s economy expanded 7.08% year-on-year, marking the highest first-half growth since 2011. Thanh Tho reported on Saigon Times.

The local real estate sector continued receiving robust interest from foreign investors, ranking first in the contribution to foreign direct investment (FDI) registration, with US$4.97 billion, according to Savills Vietnam.

The consultancy firm said that the smart city project in Hanoi City accounted for the majority of this funding.

Covering 271.82 hectares, this mega project is jointly funded by four local companies and Japan’s Sumitomo Corporation. The first phase is planned to start in the third quarter of this year and will be developed by a Sumitomo-BRG Group joint venture.

Once completed, the smart city is expected to be one of the most advanced smart cities in Southeast Asia, with a modern transport system.

Savills Vietnam said the property market in HCMC also witnessed strong interest from major players during this quarter.

Frasers Property entered into a conditional share purchase agreement to acquire 75% of the shares issued by Phu An Khang Real Estate, which owns a mixed-use development plot in District 2, for some US$18 million in April.

In early June, Malaysia’s Berjaya Land Berhad announced their proposed disposal of the Vietnam Financial Center project to Vinhomes and its affiliates for roughly US$39 million, following Vinhomes’ capital contribution of nearly US$88 million to the project back in March.

Upon completion of the transaction, Vinhomes and its affiliate will fully own the 6.6-hectare project in District 10 for mixed-used development. In addition, they have also injected some US$522 million as capital contribution, giving them a 99.2% stake in the 925-hectare Vietnam International University Town project, and are in the process of acquiring the remaining 0.8% stake from Berjaya.

Meanwhile, the residential sector was still the focus of local players. Xuan Mai Corporation successfully acquired Eco-Green Saigon, a 14-hectare project in District 7.

Nam Long Group continued their cooperation with Japanese investors, Hankyu Hanshin Properties Corporation and Nishi Nippon Railroad, to develop Akari City, an 8.8-hectare residential project in Binh Tan District.

Besides this, Nam Long also kicked off their key project, Waterpoint Township, in the neighboring province of Long An in June. Covering 355 hectares, Waterpoint consists of townhouses, villas, high-rise apartments, a mixed-use complex, a hospital, and education and sports facilities.

The second quarter of 2018 also recorded the notable initial public offering of Vinhomes JSC, the residential property development arm of Vingroup, drawing strong interest from domestic and foreign investors, including GIC, who acquired a 5.74% stake as Vinhomes’ cornerstone investor.

Aside from the positive outlook for the residential sector, Savills expected outstanding M&A performance from both the industrial real estate and office sectors. The industrial sector is fuelled by growing FDI being poured into manufacturing, improved infrastructure and a competitive outlook compared with other countries in the region.

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