7-Eleven Aiming for 100 Stores in Three Years

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Brewing mini-mart battle is a signal of the economy’s boom
Stores luring customers with air-conditioning, Wi-Fi

For decades, Vietnamese have shopped, snacked and hung out at the country’s traditional markets: colorful, chaotic mazes of open air stalls where vendors hawk everything from fruits and vegetables, to sandwiches and sodas to the odd clucking chicken. Bloomberg reports

Seven-Eleven is pushing a different model. The Japanese-owned chain in August opened its first outlet in the country, an air-conditioned, Wi-Fi equipped oasis in downtown Ho Chi Minh City. Since then, it’s rolled out about two locations per month, with plans for 100 within the next three years. GS Retail Co., the giant South Korean mini-mart operator, opened its beachhead in January. Meanwhile, local chains have announced new plans to flood the country with thousands of their own stores.

The brewing battle among purveyors of climate-controlled convenience is a measure of how far Vietnam has come since it opened to more trade and investment a decade-and-a-half ago. Factory openings by multinationals like Samsung Electronics Co. have made Vietnam a manufacturing powerhouse and helped lift average annual incomes to $2,385 from about $400 back in 2000. In the first half of 2018 the economy grew 7.1 percent, its fastest pace in a decade.

“I see a domino effect,” said Willy Kruh, a convenience-store watcher who heads KPMG Canada’s global consumer consultancy. “As other retailers see the success of the foreign players that have come in, it’s only going to bring in more retail, more brands, more big players.”

Lured by one of the world’s youngest consumer markets — more than half of Vietnam’s 93 million people are under 35 — foreign investors are pouring money into the country. The Ho Chi Minh Stock Index rose to a record in April, although it’s since given up some gains.

“Growth has been phenomenal,” said Chua Hak Bin, a regional economist at Maybank Kim Eng Research in Singapore, who said he’d recently come back from a marketing trip in Europe, where clients peppered him with questions about Vietnam. “It’s definitely a rock star.”

The last few months have seen a string of record public equity offerings. In November, there was the $709 million raised by shopping mall operator Vincom Retail JSC. That record stood until April, when Techcombank brought in $922 million. A month after that, it was luxury property developer Vinhomes JSC raking in $1.4 billion.

“You now have a young, emerging middle class looking to consume–and as they do, it’ll invite more and more investment,” said Jeffrey Perlman, head of Southeast Asia at Warburg Pincus, the U.S.-based private equity firm which owns stakes in both Vincom Retail and Techcombank.

College student Vo Thi Hoai Ngan fits the target marketing profile. On a recent weekday afternoon in Ho Chi Minh City, she bypassed street vendors selling sugarcane and coconut drinks to buy bottled water at an air-conditioned mini-mart operated by Circle K Stores Inc.

“My classmates and I prefer to come here for a quick meal,” she said. “It offers free Wi-Fi, chairs and tables.”

Circle K, a chain owned by Canada’s Alimentation Couche-Tard Inc., led the way for foreign convenience stores 10 years ago, when it open its first outlet in Ho Chi Minh City, Vietnam’s commercial capital. Tokyo-based FamilyMart UNY Holdings Co. followed in 2009.

But growth didn’t really take off until 2014 when the economy shrugged off its own mini debt-crisis and got inflation under control. That year, McDonald’s Corp. and Domino’s Pizza Inc. opened their first restaurants in the country.

Now a full-scale convenience-store flood is coming. The country’s biggest operator of gas stations, Vietnam National Petroleum Group, plans to add mini-marts at fillings stations across the country and property developer Vingroup JSC says it will add 4,000 mini-grocery stores by 2020.

Throughout Asia, where dense cities often make big box retailing impractical, convenience stores are expanding faster than every other type of business selling food and sundries, according to IGD, a grocery market researcher. In Indonesia, which is a few steps ahead of Vietnam on the development curve, Alfamart and Indomaret have been opening 1,000 mini-marts and convenience stores every year.

“Vietnam is at the start of that journey today,” said Nick Miles, IDG’s head of Asia-Pacific research. “It’s kind of at that point in per-capita income where modern trade starts to accelerate.”

No economist has actually done a formal study of the convenience store as a marker of development. But researchers have shown that consumption evolves in a predictable way as societies get richer. With annual incomes below $2,000, people buy things like bicycles and basic necessities. Between $2,000 and $6,000, where the average Vietnamese person is now, it’s scooters, refrigerators and beer. (Cars, laptops and cosmetics come next.)

Tu Vu, head of 7-Eleven’s Vietnam unit, is betting that new shopping trends will include frequent visits to his convenience stores. So far, Seven System Vietnam JSC has 19 franchise outlets in the country, all in Ho Chi Minh City. Vu says he’ll need hundreds of stores to become profitable, an expansion that will take several years.

“We are experiencing a transition from mom-and-pop stores to modern trade,” Vu said. “This is what Japan went through 40 years ago. People are working more and there are no grandmothers home to cook.”

— by Mai Ngoc Chau, With assistance by Jason Clenfield, Ailing Tan, and Cormac Mullen

Stock markets from Vietnam to Japan hit by trade war contagion

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In the US versus China trade conflict, China isn’t the only loser for equity investors.

Asian markets from Shanghai to Tokyo – and even Ho Chi Minh City – have been the biggest casualties ahead of American tariffs on US$34 billion of Chinese exports and retaliatory measures set to begin Friday. Bloomberg reports.

In total, nine out of the world’s 10 worst-performing stock indexes this week were from the region, with the Hang Seng China Enterprises Index and Shanghai Composite Index sinking 4 per cent or more through Thursday’s close. On the other side of the Pacific, the S&P 500 Index climbed 0.7 per cent.

More than US$2.7 trillion in Asian equity value has evaporated in the past month as Shanghai-listed shares entered a bear market and foreigners fled the region’s stock markets with trade-war worries intensifying. The MSCI Asia Pacific Index has taken its losses to 13 per cent from a January high, closing on Thursday at its lowest level since October.

Some are looking at the bright side, pointing to lower valuations as opportunities to buy shares. And then, who knows, markets may just soon stage a stellar rebound.

“There is a lot of negative sentiment driven by trade that could easily change should the situation not get any worse,” said Kerry Craig, global market strategist at JPMorgan Asset Management in Melbourne. “We’ll find out about that in the next week or so.”

Saigon to develop waterway tourism

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Waterway tourism in Vietnam’s Ho Chi Minh City is expected to receive about 450,000 tourists in 2018 and the figure is projected to increase 15 percent in the following years, Vietnam News Agency reported Saturday.

The city is working with neighboring provinces to create middle-range tourism products along the three rivers of Saigon, Dong Nai and Mekong.

The Ho Chi Minh City metropolitan area, downstream of the Dong Nai-Saigon river system, is surrounded and traversed by nearly 1,000 km of rivers and canals, with huge potential for waterway tourism plans in the future.

Last year, Vietnam launched its first water bus service in Ho Chi Minh City to help reduce traffic congestions and promote tourism on Saigon River.

Here’s why happy couples post less about their relationships on social media

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Once upon a time, you’d solidify your adolescent relationship with a shout-out in an AIM profile. Now that we’re in the era of “Facebook official” and selfie statuses, it’s pretty clear that the comfort we take in being able to definitively label our relationships— something which can often feel so uncertain and be communicated poorly.

Now, it’s becoming increasingly common to frequently post about your relationship (and life). If it’s not online, you don’t have proof that it happened.

If you think of social media as the modern equivalent of a town square, the place where announcements are made and information is posted and communities are bonded over shared experiences, then it only makes sense that you’d be inclined to share the bits and pieces of your life that you perceive to be worthy of documenting. The point is to post the highlight reel. The concept is to share the parts of our lives that those who aren’t immediately close to us otherwise wouldn’t be able to see — and there is nothing wrong with this.

Yet social media has an added layer of nuance, as it is a supplement (if not a projection) of our identity, connectedness, and self-worth. We can piece together an image of ourselves, quantify how loved and seen we are by others, and ultimately begin to gauge and compare where we stand socially.

It should come as no surprise that we end up addicted to the thrill that all the clicks and pixels give us, as those things that social media represents — personhood, connection, inherent worth — are struggles that are very deeply embedded in the human condition.

If you want to know how someone wants the world to see them, look no further than the patterns in their social media feeds. This is never more true (or interesting, to be honest) than when it comes to their most intimate relationships. While it’s normal and even healthy to be proud and public about who you’re dating, there is at the same time a clear connection between how genuinely content you are with your relationship and how often you post about it.

Here a few reasons for this.

You can make yourself feel better about a part of your life simply by thinking that other people see it differently

You can make yourself feel better about a part of your life simply by thinking that other people see it differently | Shutterstock

In other words, if we aren’t getting a “high” from the parts of our lives that we think are supposed to account for our emotional contentment, we seek that feeling elsewhere. Most commonly, this comes from how we think other people perceive the situation to be. (TL;DR: If we can convince ourselves that other people see our relationships happily, we feel happier about them, as we’re subconsciously shifting our point of view.)

When you’re happy with your life (or a relationship) you’re naturally more present for it

When you’re happy with your life (or a relationship) you’re naturally more present for it | Flickr / Jeroen Werkman

It occurs to you less to take photos or check your social media feeds. It’s not that you never do those things, but that your life is making you so happy, so why would you want to be distracted by it?

Any couple that keeps their intimate arguments or struggles offline is always better off | Shutterstock

On the flip side of oversharing is going public with posting the things you’re not so happy about. But no matter what the context, an issue has never been resolved well after someone aired the dirty laundry for all of their Facebook friends (and family) to see.

Their relationship validates them, so they don’t need to seek that feeling externally

Their relationship validates them, so they don’t need to seek that feeling externally | Reuters/Lucy Nicholson

In other words, there seems to be little appeal in constantly writing updates about the relationship. Their joy is in being together, not in posting about being together.

They don’t have anything to prove

They don’t have anything to prove | shutterstock

They are not using one another to prove to the world that they are happy and lovable and worthy and attractive. They’re together because they want to be, not because their deep-seated issues want them to be.

Research shows that people who use social media less are generally happier overall

Research shows that people who use social media less are generally happier overall | Shutterstock

People who go without Facebook for a week report being significantly happier. Depression is linked to excessive social media use, because of social comparison theory. Heavy social media use is also commonly associated with a lack of mental health. On and on it goes. The point is that the nature of the beast isn’t so great for us, mentally or emotionally. So it’s no surprise that it would also bleed into our interpersonal relationships.

Read the original article on Bustle.

16 things to know before you visit Vietnam for the first time

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I couldn’t recommend Vietnam any more as a destination.

You could do a few days or a few weeks there and enjoy yourself just as much.

Less touristy than other parts of south-east Asia but gradually becoming more westernised, its culture, history and the way of life combine to create a fascinating clash of east and west.

The food, scenery and buzz there also make it a serious place to visit.

Here are some things that I learned while visiting Vietnam.

Choose your destinations wisely

Whatever you’re into, Vietnam likely has it. Figure out what you want to hit before you get there to make the most of your time. During our two week trip, we visited Ho Chi Minh and Hanoi for the history and to experience city life, Da Lat for a quiet mountainside getaway and Hoi An for the old town and to hit the beach.

Looking back, I could have stayed longer in Ho Chi Minh as there’s so much to do there, while a few nights in Da Lat, Hoi An and Hanoi were just enough for me.

Try as much of the food as you can, especially street food

You might not like some of it (or even most of it) but keep trying new things anyway. You didn’t travel thousands of miles to eat the stuff you have at home all the time and there will be things you’ll enjoy.

Oh, and the street food is grand to eat.

Everything is so cheap

Like, so cheap. Depending on where you go, you could feed yourself well for a couple of euro every day. We ate and drank like kings for two weeks and spent less than we would have in a few days somewhere in Europe.

It’s not just food either – the cost of living is quite low so you’ll find that everything from hotel stays to days out are very reasonable.

It’s a stunning place

If you’re planning on travelling to Vietnam, you’ll probably know this already but I wasn’t prepared for just how incredible the sights would be.The city streets feel like Where’s Wally pictures that you could look at forever and the beaches and mountains are breathtaking.

You can’t put toilet paper down the toilet

Instead of wiping with paper when you use the loo, you’ll be spraying yourself down there with a shower head/ hose attached to the toilet, drying off with paper and then putting the paper in the bin. Don’t be the dick who puts paper down the toilet – it’ll flood.

There isn’t a huge drinking culture

Apart from the backpacker area of Ho Chi Minh, you’re unlikely to find a thriving bar scene in Vietnam like you would in neighbouring countries like Thailand.

Do your research on airlines 

You’ll find that flights don’t always take off when they’re supposed to, so if you’re flying somewhere internally or elsewhere in Asia, check out reviews of different airlines and give yourself plenty of time for layovers.

We took a number of internal flights with VietJet over the two weeks and most were delayed.

But is worth flying within the country if you can

If you’re not on a shoestring, flying place-to-place is the way to go. It’s actually pretty reasonable and convenient (aside from the delays) and will help you make more of your time there than if you were going by bus.

Don’t pet the dogs

The doctor who gives you your travel injections will tell you this and you won’t think it’ll be an issue but you’ll get there and meet SO many cute doggos.

There are dogs everywhere on the streets there and they are precious angels but you’ll have to resist petting them as there’s a risk of rabies.

Tipping is not necessary

Vietnamese people are incredibly kind and welcoming but there’s no expectation on you to leave a tip. It is always appreciated though so if you’ve a bit of change at the end of a meal or a taxi journey, may as well leave it with them.

The locals will want a chat

Vietnam isn’t a touristy as other parts of south-east Asia so you might find that you’re a bit of a novelty. Many young children learn English at school and so families may send their little ones over to say hello and practice their vocab.

There’s Wifi pretty much everywhere

Smartphone culture is big in Vietnam and even the most basic restaurants we ate at offered free internet access to customers.

But ATMs could be hard to come by

They’re not on every street like they are in Ireland so you plan what cash you’ll need in advance.

Have a go on a motorbike or scooter

When we arrived in Ho Chi Minh, the traffic was what we noticed first – thousands of bikes with multiple people on each weaving along through the city’s streets and breaking every possible traffic law you could think of.

It’s alarming but if you can get a lift with someone or have a go yourself, do it. It’s great craic and the fastest way to get around.

There are loads of Irish there

My friend Kate was living in Ho Chi Minh and working in an international school. Her housemates and wider friend group were mostly made up of other Irish people teaching and living out there.

You’ll hear more Shayne Ward there than you ever have before

Yes, the guy from X Factor and Corrie. His music was everywhere in bars, restaurants and shops. Westlife and Shayne Filan are also inexplicably popular in Vietnam.

By ANNA O’ROURKE, HER

VTV trying to recoup World Cup TV rights by hiking advertising prices

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Maybe due to not charging viewers, Vietnam Television (VTV) is trying to recover its capital spent on buying the 2018 World Cup’s TV rights by raising advertisement prices. A 30-second slot during the finals now goes for VND800 million ($35,242).

On June 28, VTV’s Television Advertising and Services Centre (TVAd) announced adjusting some advertising slots during the finals and the closing ceremony of the 2018 World Cup.

Accordingly, the price of a 10-second advertising slot increased from VND250 million ($11,013) to VND400 million ($17,621), a 15-second slot went from VND300 million ($13,215) to VND480 million ($21,145), a 20-second slot rose from VND375 million ($16,519) to VND600 million ($26,431), and a 30-second slot rose from VND500 million ($22,026) to VND800 million ($35,242).

In addition, advertising prices during football commentary programmes also fetch a decent price, even more than during the 2014 World Cup. The sums include VND375 million ($16,519) for a 10-second slot, VND450 million ($19,823) for a 15-second slot, VND562.5 million ($24,779) for a 20-second slot, and VND750 million ($33,039) for a 30-second slot.

Regarding the 2018 World Cup closing ceremony, prices are similar to football commentary programmes, but a 30-second slot will go for VND10 million ($440) less.

VTV’s price hike could be an attempt to recoup its expenses on buying the broadcasting rights. The exact price of the deal has not been revealed, but zing.vn stated that it is about $14-15 million, and Vingroup contributed $5 million.

In addition to recovering the capital via advertising, broatcasters in many countries have been charging viewers since the 2002 World Cup.

To watch the 2014 World Cup, Singaporean viewers paid S$112 ($82.08) per person to enjoy all 64 matches of the football league, while viewers in Hong Kong paid HK$380 ($48.03) each to enjoy the league.

As digital advertising steadily replaces television advertising as the dominant form of advertising due to its higher popularity and more reasonable prices, this could be VTV’s last World Cup that viewers can enjoy for free.

According to the survey of IPG Mediabrands, in 2017 spending on digital advertising reached $207 billion, equaling 41 per cent of the total value of the global advertising market, and spending on television advertising hit $178 billion, equalling 35 per cent of the total value.

Source: VIR

Chinese investors to take over PetroVietnam’s power plant

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The list of thermal power plants in Vietnam having investment capital from China will be extended once Chinese investors are approved to take over Long Phu III thermal power plant located in the Mekong Delta province of Soc Trang.

The Ministry of Industry and Trade (MoIT) is collecting opinions from the local authorities on transferring Long Phu III thermal power plant from PetroVietnam to interested Chinese investors.

According to MoIT, after the prime minister approved transferring the above thermal power plant from PetroVietnam to other partners, two Chinese investors expressed interest in taking over the project.

The first one is China Southern Power Grid Co., Ltd. (CSG). It is the investor of the $1.75 billion Vinh Tan 1 thermal power project.

The second one is a joint venture of five Chinese firms, including Zhejiang Energy International Limited and WIN Energy Joint Stock Company.

According to MoIT’s opinion, both Chinese investors promised using modern equipment in the plant, while simultaneously ensuring that the construction will meet the schedule. However, the implementation model offered by the joint venture has more advantages.

Notably, if the project is implemented under the BOT model as proposed by CSG, MoIT is concerned that the construction will not meet the schedule, and as a result, the government would need to go into expenses to pay associated guarantees.

Meanwhile, under the independent power producer (IPP) construction model proposed by the Chinese joint venture, the government would not have to provide any guarantee for the project.

The proposal to transfer the project to other investor is to decrease the pressure on PetroVietnam to arrange investment capital to develop thermal power plants. At present, PetroVietnam is assigned to develop four thermal power plants, including Thai Binh II, Long Phu I, Song Hau I, and Long Phu III, as well as seven gas-to-power projects.

Previously, in March 2015 Tata Power Group from India proposed investing in Long Phu III thermal power plant under the BOT model. However, no more information has been published since then. The Long Phu III plant was expected to cost roughly $2 billion, with a capacity of 2,000MW.

Most recently, MoIT proposed the prime minister to assign Geleximco-HUI, a joint venture between Geleximco and Hong Kong United Co., Ltd., to develop Quynh Lap 1 plant, replacing the existing investor, state-run Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin).

The proposal was submitted as MoIT was worried about Vinacomin’s capacity to arrange investment capital. According to statistics from MoIT, as of September 2017, Vinacomin was bearing debts of VND78 trillion ($3.4 billion), with a debt-to-equity (D/E) ratio of 2.5.

To date, the $1.75 billion Vinh Tan 1 thermal power project is the largest Chinese-invested project in Vietnam. According to the latest report of the management board of the project, the first unit will come into commercial operation this month, five months earlier than initially scheduled.

Vinh Tan 1 is expected to provide more than 7.2 billion KWh per year, increasing the southern region’s electricity supply and helping reduce the region’s dependence on hydropower—especially during the dry season or droughts.

Source: VIR

Vietnam’s real estate attracting more Japanese investors

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Japan is the leading investor in Vietnam with USD6.47bn and real estate is a popular sector for investment in recent years.

Statistics from the Foreign Investment Agency show that FDI investments in Vietnam’s real estate sector reached USD5.54bn in the first half of the year, accounting for 27.3% of the total registered investment. The real estate market was the second most attractive sector, behind manufacturing and processing.

The smart city project in Hai Boi and Vinh Ngoc of Dong Anh District will be developed by four Vietnamese developers and a Japanese partner, Sumitomo Corporation, with a total investment of USD4.14bn. According to the Foreign Investment Agency, this was the biggest project in the first half of 2018.

Nomura Real Estate also bought 24% stake in Sun Wah Tower in HCM City’s District 1. The price has not been disclosed but this is Nomura’s first investment in the Grade A office sector in the Asia-Pacific. Nomura is also co-operating with Phu My Hung Corporation to develop Phu My Hung Midtown in District 7.

Japanese investors have collaborated with local real estate moguls since 2014 in many residential projects in HCM City and hotel and resort projects in Danang and Phu Quoc. Mikazuki Group announced the plan to invest USD100m into a tourism project in Danang and in late June, Hinokiya Group signed contracts with local investors to introduce Japanese-styled houses in Vietnam.

According to the real estate service firm, JLL Vietnam, the local real estate sector started attracting attention from foreign investors from 2014 to 2016, most of them are from Japan, South Korea and Singapore.

Big cities like Hanoi and HCM City have large populations and stable economic growth which has led to an increasing middle class and the need for better infrastructure and urban areas.

Shinichi Sakaki, deputy general director of the City Bureau, at Japan’s Ministry of Land, Infrastructure, Transport and Tourism, said they had a supportive policy to encourage overseas real estate investments. Japan also has experience in developing huge satellite urban areas and wants to export techniques.

Japanese firms have also participated in Vietnam’s real estate sector via transferring land evaluation techniques and boosting the financial sector. According to the Japanese newspaper, Nikkei, real estate prices are soaring in Vietnam along with the urbanisation rate, however, it lacks a standard guide since prices determined by the government do not reflect the market.

Japanese firms will have more opportunities in Vietnam while Japan can help Vietnam with land evaluation techniques.

Source:  Dtinews

Vietnam cashew industry: the more exports, the bigger losses

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Vietnam is still the Number 1 cashew exporter in the world with 65 percent of market share, but cashew companies are facing problems such as lack of raw materials.

Dang Hoang Giang, deputy chair of the Vietnam Cashew Industry (Vinacas), said by the end of May, Vietnam had exported 141,000 tons of cashew nuts, worth $1.396 billion, an increase of 21.4 percent in quantity and 25.35 percent in value.

It is expected that total export turnover would reach $3.7 billion in 2018, an increase of $80 million over 2017. With the figure, Vietnam will still be the biggest processor and exporter in the world for the 13th consecutive year.

However, the profits Vietnam make are unsatisfactory. In the global value chain, farmers and processors pocket 30-35 percent of profits, while the remaining belongs to foreign roasters and traders.

Vinacas’ report released at a recent conference shows that 80 percent of small and micro enterprises in the industry have suspended production because of losses and lack of materials.

Vinacas and big exporters said that the demand for cashew nuts from international roasters and traders in 2018 increased by 5 percent compared with 2017.

However, in the first five months of 2018, the processing output in Vietnam rose by 25 percent over the same period last year, which led to an oversupply. As a result, processing workshops had to sell products at low prices to recover capital and pay debts.

The production boom and high output not only forced enterprises to sell products at a loss, but led to a short supply of materials for production.

Vietnam is a big exporter, but it has to import materials for domestic production. According to Vinacas’ deputy chair Ta Quang Huyen, in the first five months of 2018, Vietnam imported 283,000 tons of raw materials and collected 370,000 tons from domestic sources.

Meanwhile, 152,000 tons of cashew nuts were exported in the first five months. If noting that 4.3 kilograms of materials yield 1 kilogram of cashew nut, enterprises have processed all the materials in stock. Plants have run out materials since the end of May.

Nguyen Duy Tuan, general director of Lafooco, complained that enterprises have been suffering from price decreases since September 2017.

In Long An province, only 12of 33 enterprises are still operational. In the cashew metropolis of Binh Phuoc, 80 percent of small and micro enterprises have suspended production.

Vinacas predicted that Vietnam can export 370,000-380,000 tons of cashew nuts this year, which means that it would have to import 1 million tons of materials from now to the end of the year.

Source: VNN

Hanoians flock to guesthouses to avoid the heat

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Many guesthouses in Hanoi have already closed at around 9 pm in the past week since they are full as people seek shelter from the heat wave.

Dang Thi Hoai from Hoang Mai District said they were saving up money to buy an apartment. They had planned on buying an air-conditioner but if they can bear the heat for the next month, they would have enough to move into a new apartment.

Hoai and her husband’s workplaces have air-conditioners and their children’ school also have air conditioning. However, it’s another matter when they go home.

“Last night, we went to the guest house nearby since 8 pm to rent a room for VND250,000 (USD11),” Hoai said.

When returning the room in the morning, she left a VND100,000 (USD4) deposit to reserve the room. Hoai said the prices were a bit high but they could deal with it for a few days or else they wouldn’t be able to sleep.

Tran Van Thai, the receptionist of a guest house on Dai Tu Street said he’d call it a good day if the 36-room guest house was half-full but they had always been full in the past week. All rooms are taken or booked since 9 pm. Guest houses often open 24/7 for walk-in guests. This time, their guests are usually families wanting to sleep overnight.

Thai said, “Either their houses don’t have air-conditioners or the air-conditioner was broken and the repairman failed to arrive.”

Duong Van Nga, a guest house owner on Dinh Cong Street, said all 20 rooms were taken since 8 pm last night. By noon the next day, two-thirds of the rooms were booked. A single costs VND130,000 (USD5.65) per night and a twin room costs VND180,000 while a dorm room costs VND250,000. Nga said two people often rented a single room while a twin room could accommodate three people to save cost.

Guest houses on Dinh Cong, Truong Dinh and Lang streets are also always full.

Source: Dtinews

Limited liability corporation registration in Vietnam

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A limited-liability company is a legal entity established by its members through capital contributions to the company. Liability of members is restricted to the extent of their capital contributions.

Investment Capital Requirements

There is no minimum capital requirements for foreign investors intending to establish a LLC in Vietnam. Investors can be corporations or individuals. LLCs may be established by a single investor (single-member LLCs) or multiple investors (multiple member LLCs). Multiple member LLCs consist of at least two (2) stockholders, up to a maximum of 50 members. The regulations for single-member and multiple-member LLCs are mostly similar.

Depending on the ownership structure, LLCs established by foreign investors may take the form of either:

A 100% foreign-owned enterprise (where all members are foreign investors); or
A foreign-invested joint-venture enterprise between foreign investors and at least one domestic investor.
All charter capital has to be fully paid up within 90 days of establishing the LLC.

Management

The management structure of a LLC comprises of the members’ council, the chairman of the members’ council, the director or general director and a controller. A board of supervisors is also required where the LLC has more than 11 members. The Members’ Council is the highest decision- making body of the LLC and comprises of all capital contributing members.

Accounting/ Auditing requirements

Preparation of financial statements is mandatory for each company, and the balance sheet and profit and loss account of the company have to be filed with the Ministry of Finance, the local tax authorities, Department of Statistics and other local authorities subject to requirements by the law within ninety days from the end of the financial year.

All foreign-invested business entities must have their annual financial statements audited by an independent auditor operating in Vietnam. Banks, non-banking credit institutions and foreign banks’ branches are required to rotate audit firms after five consecutive years.

In addition, foreign invested enterprises and organizations incorporated and operating in Vietnam reporting in a foreign currency are also required to prepare an additional set of financial statements translated into VND to be submitted to the authorities. These translated financial statements must also be audited.

Advisor

GBS  – one of the best business law firms in Vietnam with a network South East Asia, Middle East, Japan, HongKong, Malta and Poland – offers simple direct advice to start your operations in Vietnam. They provide the help you need to understand your options, obtain your business license and complete the registration of your own company.

Email: info@gbs.com.vn or SMS | iMessage | WhatsApp | Viber | Hotline: +84903189033

For more information on GBS’s services, visit the website: https://gbs.com.vn 

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Vietnamese social media users switch to Minds after cyber crackdown

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Tens of thousands of Vietnamese social media users are flocking to self-professed free speech platform Minds to avoid tough internet controls in a new cybersecurity law, activists and the company told the Agence France-Presse (AFP).

The draconian law requires internet companies to scrub critical content and hand over user data if Vietnam’s Communist government demands it.

The bill, which comes into effect January 1, sparked outcry from activists who say it is a chokehold on free speech in a country where there is no independent press and where Facebook is a crucial lifeline for bloggers.

The world’s leading social media site has 53 million users in Vietnam, a country of 93 million.

Many activists are now turning to Minds, a US-based open-source platform, fearing Facebook could be complying with the new rules.

“We want to keep our independent voice and we also want to make a point to Facebook that we’re not going to accept any censorship,” Tran Vi, editor of the activist site The Vietnamese which is blocked in Vietnam, told AFP from Taiwan.

Some activists say they migrated to Minds after content removal and abuse from pro-government netizens on Facebook.

Two editors’ Facebook accounts were temporarily blocked and The Vietnamese Facebook page can no longer use the “instant article” tool to post stories.

Nguyen Chi Tuyen, an activist better known by his online handle Anh Chi, says he has moved to Minds as a secure alternative, though he will continue using Facebook and Twitter.

“It’s more anonymous and a secretive platform,” he said of Minds.

About 100,000 new active users have registered in Vietnam in less than a week, many posting on politics and current affairs, Minds founder and CEO Bill Ottman told AFP.

“This new cybersecurity law is scaring a lot of people for good reason,” he said from Connecticut.

“It’s certainly scary to think that you could not only be censored but have your private conversations given to a government that you don’t know what they’re going to use that for.”

The surge of new users from Vietnam now accounts for nearly 10% of Minds total user base of about 1.1 million.

Users are not required to register with personal data and all chats are encrypted.

Vietnam’s government last year announced a 10,000-strong cybersecurity army tasked with monitoring incendiary material online.

It says the new law is aimed at protecting internet users in Vietnam and tightening online security – not attacking free speech.

Facebook told AFP it is reviewing the law and says it considers government requests to take down information in line with its Community Standards — and pushes back when possible.

By AFP

Source: Rappler

Foreign investors dominate Vietnam’s e-commerce market

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Vu Viet Ngoan, head of Economic Advisory Team of the Prime Minister, said that out of 20 e-commerce businesses operating in Vietnam last year, as many as 17 were foreign invested ones, which mainly received the investment capital from China.

Among Top 10 e-commerce businesses with the largest traffic in Vietnam, seven are foreign invested firms, of which Lazada and Shopee are wholly owned by China’s Alibaba and Singapore’s SEA Ltd, respectively.After receiving US$54 million Series C investment made by Chinese internet giant JD.com and South Korea’s STIC Investments, 40% of Tiki’s stake now belongs to the foreign investors, while Japanese investors are also holding 30% stake in FPT’s Sendo. Hanoi Times reports

According to Ngoan, Vietnamese start-ups in e-commerce, after a period of establishment, have to sell because of the fear for failure to compete.

Industry insiders said despite the fast growth of e-commerce, Vietnam is not an easy market to crack open, with many players running losses and some being forced to withdraw.
Many local shopping sites like Beyeu, Deca, and Lingo had to close after shouldering big losses after only a few years.

Big investment to gain market share

Having the ingredients for a thriving e-commerce economy thanks to a young population, rising disposable incomes, and growing internet and mobile adoption, the Vietnamese e-commerce market is expected to maintain an annual growth rate of 25% to reach US$10 billion in the next four years, according to the Ministry of Industry and Trade’s E-commerce Department.

However, the Vietnamese e-commerce market is still in an early stage of development, so it poses quite a few challenges to players such as high cash-on-delivery rates and lack of customer trust and logistics infrastructure. Meanwhile, e-commerce companies are spending aggressively to gain market share, intensifying the competition.

According to industry insiders, companies need to allocate enormous expenses for their e-commerce business from sales and marketing to warehousing and logistics, so it can easily eat up profits. Also, many platforms suffered losses from special discount offers and promotion campaigns to snag new customers.

E-commerce giants like Amazon and Alibaba only started generating profit after 10 years of operations. It is obvious that e-commerce companies in Vietnam will continue to incur losses in the coming time. Though the future is not rosy in all regards, it does not deter e-commerce companies from continuing their spending spree for new investment.

Meanwhile, Shopee is pumping money into promoting its platform with plenty of discounts, free nationwide shipping service, training for sellers, and other promotions. Thanks to its monetization efforts, Shopee has seen solid growth since its local debut in 2016.

On the other hand, Lazada is investing in the growth of its first mile, last mile, and fulfillment capabilities to keep up with the growth of e-commerce in Vietnam. In addition to developing automated sorting centers to speed up delivery, the company also cut commissions by 50% to lure in more online retailers.

Online retail makes up only 1% of the total retail market in Vietnam, compared with the 14% in the US and China. There is still a long way to go for the Vietnamese e-commerce market to reach its peak, so foreign companies like Alibaba, JD.com, and Sea have invested in the country early to get ahead of the curve.

Vietnam’s leading groups, including FPT, Vingroup, and Mobile World, have also jumped on the bandwagon with e-commerce marketplaces like Sendo.vn, 123mua.vn, Adayroi, and vuivui.com. Further, the shift from brick-and-mortar to omni channel retailing also prompted retailers such as AEON and Lotte to open online marketplaces.

by Anh Hong

Shanghai Chongyang Investment Management: Stocks Are Near Bottom

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The rout in Chinese stocks may be nearing an end as the central bank turns to more accommodative monetary tools, according to Shanghai Chongyang Investment Management, whose flagship hedge fund has returned 356 per cent since its launch in September 2008.

“While asset prices will face a ceiling given China’s tough regulation, risk prevention and deleveraging, a more flexible policy stance will put a floor under risk asset prices,” said president Wang Qing. “The market clearly is in its bottom range after earlier corrections.”

Bloomberg News reported, Chongyang is adding shares of thermal power and electrical equipment firms, consumer and financial companies as well as stocks with high dividend yields and strong cash flows, Wang wrote in emailed answers to questions.

The People’s Bank of China cut banks’ reserve requirement ratio last month as stocks tumbled amid concern over a trade dispute with the US, a weakening economy and a depreciating yuan. The Shanghai Composite Index has fallen 22 per cent from its January high to be one of the worst performing gauges worldwide. Chongyang manages about 20 billion yuan of mostly long-only A-share funds.

Among Wang’s other key points:

  • Foreign investors are likely to add shares as valuations are near a historical trough, while further downside in risk assets is normally limited when there’s adequate money supply, according to Wang
  • Some blue chips with relatively smaller market cap are under- or reasonably valued
  • ChiNext and small caps with high valuations may drop further amid the tight credit environment; unicorn listings and issuance of Chinese depositary receipts will lead to industry consolidations with less competitive firms being phased out
  • The yuan may continue to weaken against the dollar in the near term but depreciation will be modest, Wang says
— with assistance by Amanda Wang

Canada can be a strong partner in economic development of Vietnam

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Eric Miller is President of Rideau Potomac Strategy Group and a Fellow at the Canadian Global Affairs Institute.

In the fullness of time, the Quebec G7 Summit will likely be seen as the end point for the U.S.-led world order.

While President Trump’s tweets dominated the news coverage, the Trudeau government was already looking ahead, using the summit to put Canada’s trade diversification agenda into high gear.

As part of this process, it invited Prime Minister Nguyen Xuan Phuc of Vietnam to participate in an “Expanded G7.” Mr. Phuc’s visit came at a time of substantially deepening trade and political relations between our countries and built on Prime Minister Trudeau’s visit to Vietnam last November.

When many Canadians think of Vietnam, images of its 10,000-day war and the refugee crisis that followed come to mind. While the legacies of these events live on, today’s Vietnam, with a median age of 30.4 years, has a significant share of its population of 96 million that has known only peace.

And now the country is getting increasingly prosperous.

In recent decades, Vietnam has steadily integrated into the global economy, established a world-class manufacturing base and pursued increasingly market-oriented policies at home.

In 2018, Vietnam signed the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which liberalized trade with Canada, Japan and a host of other countries.

CPTPP will accelerate Vietnam’s journey toward middle-income status while speeding up the outflow of global manufacturing from China to Vietnam. Output in sectors from furniture to footwear is already surging.

The transformation of Vietnam’s economy is in evidence on the streets of its cities and in its statistics. Since 2008, economic growth has never fallen below 5 per cent. It has been above 6 per cent for the last three years, and the Asian Development Bank is projecting that it will top 7 per cent in 2018.

In 2017, PricewaterhouseCoopers LLP reported that Vietnam is positioned to be the world’s fastest-growing economy between now and 2050, averaging 5.1 per cent annual growth. This trajectory would make Vietnam the world’s 20th largest economy.

Yet success is not guaranteed. The Vietnamese government is pursuing perhaps an even more important agenda for future prosperity: domestic economic reform. Key priorities include improving the ease of doing business, making the regulatory process more efficient and transparent, and streamlining the delivery of public services.

While the policy-making process is deliberative and often slow, real change is happening on the ground.

Usefully, the government benchmarks progress through tools such as the “Provincial Competitiveness Index,” which ranks the quality of economic governance for each of Vietnam’s 63 provinces and municipalities. Increasingly, promotion of leaders is based on whether they deliver results around this agenda.

Vietnam’s transformation offers tremendous opportunities. It is already Canada’s largest trading partner in Southeast Asia; exports to the country doubled in 2017.

With forthcoming preferential access under CPTPP, Canada is ideally positioned to provide Vietnam’s government with the tools of transformation while supplying the needs and wants of a growing middle class.

On a recent visit to Hanoi, my hotel offered a special promotion where one could sample “Canadian World-Class (Seafood) Specialities.” With abundant supplies and a reputation for quality, Canada has the required ingredients to effectively take on the United States and Australia as a preferred supplier of imported food.

Education is another area of opportunity. Vietnam is the fastest growing source of foreign students in Canada. The number of Vietnamese studying at Canadian universities and colleges has tripled to 15,000 over the past three years – and there is substantial room to grow.

One key advantage that Canada has in growing its trade linkages is a sizable Vietnamese diaspora, numbering 240,000. Many Vietnamese-Canadians are doing business with their country of origin. At a recent meeting in Hanoi, I met the head of an important Vietnamese investment fund, who, as it turns out, grew up in Toronto.

Canada-Vietnam relations are pragmatic but also strategic. Both are middle powers striving to preserve stability and a rules-based order in an increasingly uncertain world. In an age of trade conflict, it is fundamental that the like-minded work together.

Wayne Gretzky famously said that the path to success is to “skate where the puck is going, not where it has been.” With NAFTA in doubt and CPTPP coming online, a key place where the puck is going is to Vietnam. Let’s now lace up our skates, chase the puck and put it in the net. Canadians and Vietnamese alike will benefit.

By ERIC MILLER

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