Tourism sector aims to stop Chinese zero-dong tours

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Given the boom in the number of Chinese tourists in HCM City, authorities have been urged to take preventive measures against the so-called “zero-dong” tours that cater to these tourists and adversely affect tourism revenue.

Since last year, the number of tourists from China has surpassed those from Japan and the US, according to the city’s Tourism Department.

Around 600,000 Chinese tourists visited last year, 200,000 more compared to the previous year – VNS reports.

In the first five months of the year, the city welcomed 3.2 million foreign arrivals compared to 2.5 million in the same period last year. Of the total, the number of Chinese tourists was 266,200, up 22.5 per cent year-on-year, said Nguyen Viet Anh, head of the Department’s Travel Management Division.

Northeast Asia, including mainland China, Japan, South Korea and Taiwan, is expected to be the priority market for the city’s tourism sector in upcoming years, he said.

The department has targeted tripling the number of Chinese arrivals in two years to around 1.5 million.

However, tourism experts warn that the growing influx of Chinese tourists could affect the quality of tourism services, particularly the continued existence of zero-dong tours.

Popular destinations in the northern province of Quang Ninh, the central coastal provinces of Khanh Hoa and the city of Da Nang are often filled with Chinese tourists on budget tours.

Cheap tour packages are aimed at budget Chinese tourists, with overseas tour agencies taking no fee for air tickets and accommodations, and then pressuring visitors into purchasing products or services when they are on tour, according to Tu Quy Thanh, director of Lien Bang Travelink, which specialises in Chinese-speaking markets.

Some companies in Vietnam, who operate in association with their overseas counterparts, run zero-dong package tours, Thanh said.

Visitors on these budget tours have to follow the agencies’ itinerary of tourist attractions, restaurants and shopping sites where they are often overcharged for products and services, he said.

Most Vietnamese travel agents based in HCM City understand the Chinese market well and have rich experience in tour operation and management.

They refuse to take part in these zero-dong tours, Thanh said.

Nguyen Thi Khanh, deputy chairwoman of the city’s Tourism Association, said members of her association were not offering zero-dong tours.

Travel firms in HCM City are focusing instead on high-spending Chinese tourists.

Taking it in: Chinese tourists in HCM City’s downtown. — VNS Photos San Ha

Increasing tourism spending

Tran Thi Bao Thu, marketing and communications director of Fiditour, said that reaching 1.5 million Chinese tourists by 2020 was achievable, but a more important requirement would be to increase spending per visitor.

Chinese visitors to HCM City, who are mostly are in the 25-50 age group and from large cities, spend a lot on leisure travel and shopping.

“The company is focusing on the mid- and high-end Chinese tourist segment. The annual growth rate of this segment has been 20-25 per cent over the last three years,” she said. “The city should improve tourism infrastructure and develop more tourism products for high-end visitors.”

Tourism authorities should also monitor cheap tour packages to ensure that quality is not being compromised, and impose severe penalties on operators offering zero-dong tours, she added.

Thanh, Director of Lien Bang Travelink said “High-spending Chinese often choose four- to five-star hotels, but the shortage of luxury hotels in the city is a major obstacle during the tourism high season and holidays.”

The city also lacks sophisticated and well-organised cultural and arts shows as well as services and entertainment activities at night, Thanh said.

“The shows and night entertainment are not that appealing,” he said.

Even river tours along the Sai Gon River and Nhieu Loc-Thi Nghe Canal have failed to attract high-end tourists, he added.

Chinese tourists like to buy farm produce and arts and crafts, but find it difficult to purchase them in bulk because there is a lack of freight service at wholesale markets.

“With the rapid increase in Chinese tourists, the city faces a severe shortage of Chinese-speaking tour guides and human resources in tourism,” said Ho Van Tuong, a lecturer at the Sai Gon Tourism Vocational College.

Most tourism vocational schools offer English-language courses, but no schools offer Chinese-language courses.

“There is a huge gap in tourism training,” Tuong said.

Most of the Chinese-speaking tourism workforce, including tour guides, are ethnic Hoa (Vietnamese of Chinese origin) from HCM City and other provinces.

The shortage of Chinese-speaking tour guides also leaves an opening for illegal Chinese tour guides to work in Vietnam. To address the shortage, tourism training schools should offer more Chinese-language courses, Tuong said.

The Department of Tourism should also inform tourism schools of its policy to attract more Chinese tourists so that schools proactively develop their curriculum to suit future needs, he added.

Foreign tourist spending in the city is an average of VND3.3 million (US$145) a day, according to the Department of Tourism.

Bui Ta Hoang Vu, direct of the department, said the city is calling for investment in shopping complexes with authentic, made-in-Viet Nam products to encourage tourist spending.

HCM City’s hotel market, especially the luxury segment, expects to attract more investors due to strong growth in tourist arrivals, according to Vu.

With annual growth of 20 per cent in the nummer of tourists, the city needs around 10,000 luxury hotel rooms to serve around 10 million foreign visitors by 2020.

The department said it would work more closely with travel firms and local tour guides to improve management and reduce the number of zero-dong tours in the city.

By San Ha

Banks refuse to buy US dollars from central bank

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A senior official of the State Bank of Vietnam (SBV) on July 4 told Thoi Bao Kinh Te Vietnam that commercial banks had not registered to buy dollars at preferential prices from SBV

On July 2, amid fluctuations of the dollar, SBV stated that it would intervene in the market by selling foreign currencies at low prices if necessary – Vietnamnet reports.

On July 3, SBV’s Stock Exchange quoted VND23,050 per dollar, or VND244 per dollar lower than the previous session and VND264 lower than the ceiling price level.

The price of VND23,050 per dollar was also applied on the next day.

However, no commercial bank had registered to buy dollars by the end of July 4.

The SBV official affirmed that the transactions in the market have been going smoothly, the dollar supply in the market is not short as some people think.

Asked about the central bank’s treatment to Vietnam dong, he said SBV has considered necessary measures to balance the supply and demand and avoid the oversupply of the dong in circulation which will put pressure on the dong/dollar exchange rate and inflation.

The greenback has been appreciating sharply in the international market. As the US FED raised the interest rates, other central banks have also raised their interest rates, affecting the exchange rates of the US dollar with local currencies.

The greenback has been appreciating sharply in the international market. As the US FED raised the interest rates, other central banks have also raised their interest rates, affecting the exchange rates of the US dollar with local currencies. 

In such conditions, the dong/dollar exchange rate cannot stand still.

However, analysts warned that any excessive fluctuation of the dong/dollar exchange rate would have negative impact on the macroeconomic balances.

SBV earlier this year stated that stabilizing the exchange rate to stabilize the macro economy will be the goal for the entire year 2018.

The SBV senior official also said the macroeconomic stability is a great advantage Vietnam of over many other countries. The exchange rate stability will help make Vietnam more attractive to foreign investors and bring confidence to businesses.

Asked about measures to deal with the dong oversupply to avoid pressure on the exchange rate and inflation, the official said SBV will continue strictly controlling the credit growth.

It is expected that with strict control, the outstanding loans in 2018 may grow more slowly than initially planned. The credit growth rate in the first half of 2018 also slowed down compared with the same period last year.

The rumour about foreign investors withdrawing capital from Vietnam spread following the investors’ continued net sale recently. On July 3, the net sale was VND300 billion.

An American citizen has been accused in Vietnam cause of disturbing public order

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A court in southern Vietnam is scheduled to put on trial next week an American citizen of Vietnamese descent accused of disturbing public order after he took part in rare protests, state media reported Friday. The Associated Press reports.

William Nguyen, from Houston, Texas, was arrested on June 10 after participating in protests in the southern commercial hub of Ho Chi Minh City against a proposed law on special economic zones that some fear would be dominated by Chinese investors.

State-run Tuoi Tre newspaper quoted the indictment as saying Nguyen, 35, called on other protesters to overrun police barricades as they marched from a park near the city’s international airport to the city center.

A video from the protests shows Nguyen with blood on his face being dragged by a group of men. He is later shown standing on the bed of a police pickup truck.

The indictment said Nguyen climbed into one of the four police pickups, which were placed to block a road, and urged others to climb over the vehicles to continue their march. The indictment said his actions “seriously violated public order and badly affected security order, social safety and needs to be dealt with seriously.”

Nguyen could be sentenced to seven years in prison if convicted. His trial set for July 20.

Court officials were not available for comment Friday and the U.S Embassy did not immediately respond to request for comments.

The newspaper quoted prosecutors as saying that Nguyen’s prison sentence can be reduced if he shows remorse.

According to the report, Nguyen told investigators he was aware that participating in protests is illegal in Vietnam and he did not do any research on the proposed laws on special economic zones and cybersecurity, but still came to Vietnam to join the protests.

Rallies against the proposed law took place around the country. Six people have been sentenced to up to two and a half years in prison in south-central Binh Thuan province on charges of disturbing order.

The protesters fear the three proposed special economic zones where land could be rented for up to 99 years would be dominated by Chinese investors. Lawmakers postponed passage of the law until the next session in October to allow more research.

Mistrust of China runs deep in Vietnam, one of the most outspoken critics of Chinese construction and militarization of artificial islands in the South East Sea’s disputed waters.

Vietnam Logistics and Warehousing Market Analysis and Outlook to 2022

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The “Vietnam Logistics and Warehousing Market Outlook to 2022 – By Service Mix (Freight Forwarding, Warehousing, Cold Chain, Express Delivery, E-commerce Logistics, Third Party Logistics)” report has been added to ResearchAndMarkets.com’s offering

The report provides a comprehensive analysis of logistics and warehousing services in Vietnam. The report focuses on Vietnam freight forwarding market by normal and express delivery, by freight movement (sea freight, road freight, air freight and rail freight), by international and domestic freight forwarding and by flow corridors (Asia Countries, European Countries, American and African Countries); Vietnam warehousing market by number of warehouses, by end users, by international and domestic companies and by business model.

The report further provides insight on Vietnam express delivery market by international and domestic express, by air and ground express and by market structure (B2C, B2B and B2C) along e-commerce logistics business by channel (3PL companies and e-commerce merchants), by speed of delivery (2 day delivery, 1 day delivery, same day delivery, within 2 hours and delivery beyond 2 days), by area of delivery (intercity and intracity) and by payment method (cash on delivery and others). The report provides statistics on Vietnam 3PL market by freight forwarding and warehousing and by international and domestic companies.

Companies Mentioned

  • Bac Ky Logistics Vietnam
  • Damco Vietnam
  • DHL Express Vietnam
  • FedEx Vietnam
  • GHN
  • Kerry Logistics Vietnam
  • Nippon Express Vietnam
  • Noi Bai Cargo Terminal Services
  • PetroVietnam Transport Corporation
  • Sea and Air Freight International
  • Sotrans Vietnam
  • Transimex Saigon Corporation
  • Vietnam Airlines
  • Vinafco
  • Vinalink Logistics

Key Topics Covered:

1. Executive Summary

2. Research Methodology

3. Vietnam Logistics and Warehousing Market Introduction

4. Transport and Logistics Infrastructure in Vietnam Logistics and Warehousing Market

5. Value Chain Analysis for Vietnam Logistics and Warehousing Market

6. Vietnam Logistics and Warehousing Market Size, 2011-2017

7. Vietnam Logistics and Warehousing Market Segmentation, 2011-2017

8. Vietnam Freight Forwarding Market

9. Vietnam Express Logistics Market

10. Vietnam E-Commerce Logistics Market

11. Vietnam 3PL (Third Party Logistics) Market

12. Vietnam Warehousing Market

13. SWOT Analysis for Vietnam Logistics and Warehousing Market

14. Trends in Vietnam Logistics and Warehousing Market

15. Regulatory Framework in Vietnam Logistics and Warehousing Market

16. Recent Industry Activities in Vietnam Logistics and Warehousing Market

17. Company Profiles of Major Players in Vietnam Logistics and Warehousing Market

19. Analyst Recommendations in Vietnam Logistics and Warehousing Market

20. Macroeconomic Factors affecting Vietnam Logistics and Warehousing Market

For more information about this report visit https://www.researchandmarkets.com/research/rkg2nm/vietnam_logistics?w=4

Contacts
ResearchAndMarkets.com
Laura Wood, Senior Manager
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Singapore’s Frasers Property took almost 75% of reality firm Phu An Dien in Vietnam

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SGX-listed Frasers Property has announced that it will buy 75 per cent stake in Ho Chi Minh City-based Phu An Dien Real Estate Joint Stock Company (PAD) for VND799 billion ($34.3 million), according to a disclosure on the Singapore Exchange – According to Deal Street Asia.

The Singapore-based realty major, through its subsidiary Frasers Property Investments (Vietnam), will sign a conditional share purchase agreement with Tran Thai Lands Company Limited to acquire the 45 million shares or 75 per cent stake in PAD.

The price for PAD was arrived at on a willing-buyer, willing-seller basis, based on the estimated net asset value of PAD at completion, taking into account the value of the property, Frasers Property’s announcement said.

PAD will undertake the development of a residential-cum-commercial project in Vietnam. The project will be on a mixed-use development plot in Linh Trung Ward, Thu Duc District, in Ho Chi Minh City.

Frasers Property Vietnam made its foray in the country in 1999 with the development of a 22-storey retail/office building Me Linh Point Tower in District 1, the Central Business District of Ho Chi Minh City.

SGX-listed Frasers Property has been actively picking assets overseas. In February, it announced that it will acquire a property portfolio of 22 assets, owned and managed by Alpha Industrial Holding, in Luxembourg. The deal also covered the acquisition of the project and asset management business of Alpha Industrial through the purchase of the entire issued share capital of Alpha Industrial GmbH & Co in Cologne, Germany.

Vietnam’s real estate market has attracted foreign capital to the tune of $5.54 billion, accounting for 27.3 per cent of total foreign direct investment poured into the country in the first half of the year, according to the latest statistics released by the Foreign Investment Agency.

Like many other emerging markets, merger and acquisition (M&A) activity in real estate in Vietnam has been active. In the first quarter of this year, Vietnam’s real estate sector saw M&A reach a total of $200 million, according to JLL estimates.

By Quynh Nguyen

Da Nang’s beaches safe for swimmers: authorities

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Recent test results showed that seawater at Da Nang City’s beaches is still safe, Le Quang Nam, director of the city’s Department of Natural Resources and Environment said on Wednesday, the online newspaper zing.vn reports.

The statement came in response to the itchy rash which many people had experienced after swimming at the city’s beaches early this month.

Some types of starfish and jellyfish were also detected at beaches at that time as related agencies reported.

“These species can cause itchy rash,” Nam said.

Nam said that the city’s coastal water was monitored monthly at ten monitoring stations, including three at the public beaches of My Khe, Non Nuoc and Pham Van Dong.

All monitoring parameters such as pH, total suspended solids (TSS), chemical oxygen demand (COD), oil, ammoniac and coliforms met the standards.

After receiving people’s reports, the department sent seawater samples to Hue University of Sciences, Da Nang University of Science and Education, and Viet Nam Institute of Oceanography in Nha Trang City for analysis.

According to the institute, recently, silicon algae has appeared at Da Nang City’s beaches. However, there is little scientific evidence showing that the algae can cause itchy rash and skin allergies.

Therefore, Nam assumed that starfish and jellyfish might be responsible for the skin trouble.

Source: VNS

How will Vietnam deal with a 10-year crisis cycle?

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Vietnam will have solutions to restrict the effects of any future global economic downturn, according to General Statistics Office’s director Nguyen Bich Lam – Vietnamnet reports.

At a press conference on June 29, Duong Manh Hung from GSO warned that both the world and Vietnam will not break out of the economic recession cycle, which occurs every 10 years. Some analysts predicted that the bottom of the cycle will be in 2019-2020. Vietnam will be in the sphere of influence.

With the high openness of the economy (total import/export turnover equal to nearly 200 percent of GDP), Vietnam is vulnerable to external economic shocks. The US-China and US-EU trade wars, if they escalate, will also affect Vietnam’s economy.

Vietnam’s economy has been growing well, but growth remains unsustainable. The ratio of investment to GDP has decreased in the last three years, which will have impact on development in 2019-2020.

Besides, the influences to economic growth may also come from the fact that Vietnam now cannot attract huge investment projects like Samsung and Formosa.

Vietnam’s economy has been growing well, but growth remains unsustainable. The ratio of investment to GDP has decreased in the last three years, which will have impact on development in 2019-2020. 

Lam said that an economic crisis will be no sooner than 2021.

“In 2018-2019 the global economy is still developing well. Financial institutions still forecast a high global trade growth rate,” Lam said.

As for Vietnam, economic recessions occurred in 1979, 1989, 1999 and 2009. Therefore, the government and observers fear that the next crisis will be next year.

Observers cited the risks of the high openness of the economy, the reliance on the foreign invested economic sector, and cash flow into the real estate market.

However, Phan Minh Ngoc, an economist, commented that the cited reasons are only general and cannot explain why the next crisis will break out in 2019.

Regarding the openness of the economy, Ngoc pointed out that some other economies even have ratios of import/export turnover to GDP higher than Vietnam’s. These include Hong Kong (373 percent of GDP in 2016), Luxembourg (407), Malta (268), and Singapore (318), while Vietnam’s ratio was 185 percent in the same year.

Ngoc doesn’t think that the openness of the economy, calculated based on the ratio of import/export turnover to GDP alone, reflects the vulnerability of the economy.

Agreeing that there are uncertainties in Vietnam’s economy, Ngoc affirmed that there is no convincing evidence for an economic crisis in 2019 at the scale and level seen in the last three decades.

​Switched at birth: Vietnamese couple discovers six-year-old son isn’t their own

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Two couples in Hanoi were shocked to discover that a hospital mix-up six years ago led to them raising a son that isn’t their own

Phung Giang Son, from the capital’s Ba Vi District, said his biological son was born around the same time as another couple’s child at Ba Vi General Hospital in November 2012.

The 28-year-old said the infant he received from a nurse was wearing a different diaper than what he had put on his child.

“At the time I had a hunch that I was given a wrong son. When I spoke to the hospital staff they insisted that it was the wrong diaper, not the wrong baby,” Son told Tuoi Tre (Youth) newspaper.

But after raising the child for six years, Son and his wife began to notice several differences between the baby’s appearance and their own.

The couple, for example, has white skin and are overweight – characteristics shared by their second-born. Their first son, however, is quite thin and has dark skin.

Eventually Son’s doubts became so serious that he decided to have two separate paternity tests done, with samples taken from both him and his wife.

The results of both tests were the same: the child they’ve raised since birth is not theirs.

“My family was stunned and hurt,” Son said.

Further DNA testing eventually revealed that the six-year-old child is actually the offspring of a woman named H., who also gave birth to a boy at the same clinic as Son’s wife.

The revelation was a heavy hit to both families.

Now, H. is unsure of how to come with the prospect that she could be separated from the child she has spent over a half a decade caring for, a representative from the Ba Vi General Hospital said in an interview with Tuoi Tre on Wednesday.

“I hope Son’s family gives her more time. She’s also suffering from mental anguish,” the representative said.

Son and his wife have spent the last two months waiting to take their real son home, but he still remains in H.’s care.

“We want our son back, but that wish hasn’t been realized.”

They have seen the boy ten times since the DNA test results were revealed, but H. has insisted that they can only visit if they make the journey to her hometown.

Son said he and his wife still love the son they’ve raised “because we’ve brought him up for six years. But when we know we have another child, we as parents want to take him back,” he underlined.

On July 10, the Ministry of Health ordered that those responsible for the mix-up be strictly punished and that Ba Vi General Hospital develop a resolution to the problem.

The institution has since disciplined two midwives.

The last known incident of a hospital mixing up children in Vietnam occurred in 2013 in the southern Vietnamese province of Binh Phuoc Province.

By Thai Xuan

Source: Tuoi Tre News

​Vietnam’s first private airport receives test flight

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Vietnam’s first-ever private run airport saw its first test flight successfully launched on Wednesday morning, representing a step closer to the planned full operation in early December of the terminal, located in the northern coastal region.

A Super King Air 350 produced by the U.S.’s Beechcraft landed at the Van Don International Airport, which has been under construction since March 2016, in Quang Ninh Province.

The twin-propeller plane, piloted by Charles John Fogarty, touched down on the airport about half an hour after departing the Cat Bi International Airport in the neighboring city of Hai Phong.

The ferry flight was part of a five-day test to check whether the air traffic control system and runways at the facility meet safety standards.

The rehearsal only hires experienced, licensed pilots and foreign aircraft, a leader from state-owned Vietnam Air Traffic Management Corporation told Tuoi Tre (Youth) newspaper on Tuesday.

Under-construction facilities are seen at the Van Don International Airport in Quang Ninh Province, Vietnam. Photo: Tuoi Tre

The 325-hectare Van Don terminal will be run by Sun Group – a Vietnamese corporation in real estate, infrastructure and resorts – which is investing around VND7,700 billion (US$331 million) into the project.

With nine runways that are 3.6 kilometers long and 45 meters wide, the airport can receive cargo or passenger aircraft like Boeing 777, Boeing 787 Dreamliner and Boeing 747 jet airliners.

By 2020, it is expected to handle 2.5 million passengers annually and 1,250 ones during peak times.

By Thai Xuan

Source: Tuoi Tre News

 

Hollywood director Jordan Vogt-Roberts says Vancouver gangsters beat him up in Vietnam

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The director of Kong: Skull Island suffered serious head injuries in an attack in a Saigon bar last September.

In an article published this week by GQ, Jordan Vogt-Roberts says two of the men involved in the attack are men from Vancouver.

The GQ article, written by Max Marshall, started out about why Vogt-Roberts, fresh off the highly successful release of the Kong action flick, moved to Vietnam.

Then it becomes so much more.

The attack, it would seem, is a classic bar-room absurdity: one guy appears to have had a little more success chatting up a girl. Or at least, that’s the theory presented by Marshall and Vogt-Roberts.

The article details how the pair went about investigating who it was that attacked Vogt-Roberts. The approach is “Hardy Boys,” Marshall writes.

The story they weave together features names very familiar to those who have been reading about Vancouver’s drug wars over the past two decades.

Vogt-Roberts’ alleged assailants are well-known to Canadian police. One, Kenny Cuong Manh Nguyen, was released on parole in 2012. He was imprisoned for the 1999 drugs-related murder of a member of a rival gang.

Kenny Cuong Manh Nguyen is a convicted killer for a 1999 gang hit in Vancouver. He fled to Vietnam in 2015 while out on parole and was arrested in India in June as part of a ketamine ring.

Nguyen has been involved with the UN gang and was an associate of deceased gangster Gurmit Dhak.

The Parole Board of Canada granted him leave to visit Vietnam in 2015. He later called his parole officer and said he was never coming back.

Nguyen was arrested last month in India; police there allege he was involved in smuggling the drug ketamine.

They say the other attacker is another Vancouver man by the name of Billy Tran.

“He’s kind of a quiet guy, but he’s not someone to cross,” a source tells Marshall.

Anyway, it’s quite the tale and worth reading in full, over at GQ.

By Patrick Johnson

Source: Theprovince

Report: Robot workers will lead to surge in slavery in Vietnam and SE Asia

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Robots will slash millions of jobs and create an upswing in trafficking and slavery across south-east Asia, research claims.

In a report launched on Thursday, supply-chain analyst firm Verisk Maplecroft predicts that the rise in robot manufacturing will have a knock-on effect that results not only in lost livelihoods but in a spike in slavery and labour abuses in brand supply chains. An article by Annie Kelly on theguardian.com mentioned.

Earlier this year, the UN International Labour Organization predicted that 56% of workers in south Asia’s key manufacturing hubs in Vietnam, Thailand, Cambodia, Indonesia and Philippines could lose their jobs over the next two decades due to automation.

“There has been a lot of discussion about the impact of robot automation on jobs but less on the resulting human rights abuses that are likely to follow,” said Dr Alex Channer, analyst at Verisk Maplecroft.

“We know that in a couple of decades, robot manufacturing will replace many low-skill jobs. Displaced workers without the skills or capacity to adapt will have to compete for a rapidly diminishing supply of low-paid work in potentially exploitative conditions. This will lead to increased risks of slavery and trafficking across a region already vulnerable to these kind of abuses.”

Automation is already revolutionising manufacturing and lowering labour costs for industries across the world. The International Federation of Robotics estimates that next year another 250,000 industrial robots will come on to the market, with the capability to help produce cars, electronics and new machinery.

Robots are already in production that will replace workers in farming while analysts at Citibank estimate that automation technology could help footwear brands reduce labour costs by 50% and cut material costs by 20%, as well as expand product ranges and speed up lead times.

This year the world’s first “ sewbot ” factory in the US will begin production, with robots sewing garments without human operators. It is thought that each sewbot machine could potentially do the work of 10 people.

Yet, Channer said it would be a mistake for brands not to recognize the consequences of the changes.

“Businesses may argue that they are not responsible for the knock-on effects of the rise of automation, but robots will never completely replace workers. People will still have to find work just further down supply chains, where abuses are more likely to occur and regulation and worker rights can be more easily ignored.”

Manufacturing hubs in south-east Asia are seen to be particularly at risk from potential labour abuses rising from the onset of automation manufacturing because of the high dependence on low-skilled jobs and existing high levels of labour violations.

Thailand’s fishing industry is heavily linked to slavery and labour abuses and the electronics sector in Malaysia, which accounts for nearly 35% of the country’s export economy, has faced international scrutiny for its treatment of migrant workers.

In 2014 a report by supply chain watchdog Verité found that nearly one third of workers in Malaysia’s electronics sector were in forced labour, and called for reforms from foreign companies operating there.

“In an environment like south-east Asia where workers are already vulnerable to labour abuses, increased competition for remaining jobs will see workers having to accept jobs at lower wages, pay more in recruitment fees and be forced to work in more dangerous and exploitative workplaces.”

Sectors identified by Verisk Maplecroft as being particularly at risk included agriculture, fishing, manufacturing, retail and electronics.

Of the five countries deemed most likely to be affected by job losses, the report predicts that Vietnam will suffer worst, with 36 million people estimated to be replaced with robots.

Women will also be disproportionately affected in the garment, textile and footwear industry. In Vietnam and Cambodia, 85% of jobs in this sector are potentially at risk, with more than 75% of these held by women.

Verisk Maplecroft say that both businesses and governments need to work urgently to mitigate the potentially catastrophic consequences of automation on the 156 million people whose jobs are likely to be under threat in the coming decades.

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Vietnam estate brokerage set to list on Ho Chi Minh bourse

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HO CHI MINH CITY — CenLand, the biggest real estate brokerage in northern Vietnam, plans to list 50 million shares on the Ho Chi Minh bourse in the third quarter, to raise more funds to expand its secondary sales business.

At the offer price between 50,000 and 60,000 dong apiece, CenLand will be the first real estate brokerage, specializing in brokerage services only, listed on the Ho Chi Minh bourse. It will be valued at around $100 million.

CenLand is set to expand into secondary sales segment, which currently contributes 10% of company turnover, against the primary sales business, which accounts for more than 80%. The company aims to be the leading retailer in the real estate market. It is also working on other fundraising methods to build up strong capital resources to buy parts of or whole real estate projects from developers, then sell on to buyers, as well as for other related trading activities.

CenLand, founded in 2002 as a subsidiary of CenGroup, is one of the top five real estate brokerages in the country. Its sales network consists of more than 1,200 people, 20 direct trading offices and 400 partners countrywide. It has links with some 700 real estate exchange offices across the country, and operates online sales systems including Project Supermarket and the nghemoigioi.vn website, the largest e-commerce platform for real estate trading activities in Vietnam.

CenLand’s partners include local developers Vingroup, FLC Group, SunGroup, Khang Dien House, Sovico, Trung Thuy Group and foreign investors such as Gamuda, Hyundai, and CapitaLand.\

Last year, CenLand made more than 11,000 brokerage transactions, accounting for around 40% of the real estate brokerage market in Hanoi and 20% nationwide, according to the company. In 2017 CenLand posted $48 million in revenue and $10 million in net profit, a year-on-year growth of 84% and 87%, respectively. In 2018 CenLand aims to increase revenues by 50% and net profit by 26%, on the back of forecast sales of more than 16,000 units in 71 projects, mainly in Hanoi, the capital.

Riverside buildings in Ho Chi Minh City. Vietnam’s property market, after earlier setbacks, continues to grow. © Reuters

The secondary sales segment in Vietnam, worth around $20 billion, is covered by small groups, and lacks a broad-scale big player, CenLand General Director Nguyen Tho Tuyen told investors at the roadshow earlier in July.

Vietnam’s real estate market continues to grow, but the brokerage business remains relatively undeveloped. CenLand expects to grow stronger in the secondary brokerage market, and to develop and utilize digital sales channels more, said Andy Ho, investment company VinaCapital’s managing director.

In April VinaCapital’s fund invested $10 million in CenLand, following Dragon Capital’s investment of $11 million. VinaCapital and Dragon Capital own 12% and 13% of CenLand, respectively. CenGroup is the biggest shareholder in CenLand, holding a 51.14% stake.

CenLand launched its first overseas office in 2017 in South Korea, one of the biggest potential sources of foreign investors for Vietnam’s real estate market. The company plans to open new offices in Singapore and Hong Kong, after launching an office in Japan in the next few months.

Source: Nikkei

Frasers Property unit to take 75% stake in Vietnam property development firm

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Multinational property company, Frasers Property, said on Thursday that it will be spending 799 billion dong (S$47.3 million) for a majority stake in Phu An Dien Real Estate Joint Stock Company (PAD), which will undertake the development of a residential-cum-commercial project in Vietnam.

The project will be on a mixed-use development plot in Linh Trung Ward, Thu Duc District, in Ho Chi Minh City. Business Times reported.

Frasers Property is entering into the deal via its subsidiary, Frasers Property Investments (Vietnam) 2 Pte Ltd, which has signed a conditional share purchase agreement with Tran Thai Lands Company Limited to acquire the 45 million shares, or 75 per cent stake, in PAD.

The price for PAD was arrived at on a willing-buyer, willing-seller basis, based on the estimated net asset value of PAD at completion, taking into account the value of the property, Frasers Property’s announcement said.

It added that the proposed acquisition is not expected to have a material effect on the net tangible assets per share or earnings per share of the group for the current financial year.

Concert tour by international artists in Vietnam

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A concert tour by international artists working in contemporary sound art and performance will kick off on July 13 in Luong Son district in the northern province of Hoa Binh Province of Vietnam.

Entitled Vietnam Harsh Macro Tour 2018, the tour is a part of an art project by veteran contemporary performance artist Dao Anh Khanh. The overall project, called Gam Troi Valley, will be inaugurated next year. VNS reported.

Khanh from Hanoi and Nikola H. Mounoud from Montreux, Switzerland will co-perform. Mounoud will use a computer and an analog mixer to shape and transform feedback such as electric oscillation in real time in order to create unique, highly dynamic and rich music that incorporates aspects from contemporary, noise, jazz, classic and techno music.

Khanh will improvise a unique dance performance to the music by Mounoud.

“I was invited to Vietnam by painter, choreographer and performer Khanh to build a permanent sound installation in his Gam Troi Valley, which is located in Hoa Binh province, 50km west of Hanoi city,” said artist Mounoud. “We will perform at Gam Troi Valley as a rehearsal, as the valley is still in the building process.”

Mounoud is sound artist, musician, noisician, performer, composer and improviser. His first permanent sound installation based on the “final gesture” from live performances took place at Dao Anh Khanh’s Studio in Hanoi in July 2016.

Since 2006, he has toured and performed live music as much as possible around the world.

With very physical and strong performances, Shayne Bowden from Australia uses both electronics effects and voice amplifiers to create powerful, harsh noise live sets.

Kazehito Seki from Tokyo is an artist using voice amplification – he uses only microphones to amplify his voice, no other effects. Seki has built a reputation since 2006, with projects and performances in Oslo, New York, Fukushima and around Europe.

Two other Swiss artists, FU and Clemydia & Generateurs, will also perform. They all use electronic effects and synthesisers to craft their music.

Khanh is well-known as one of the leading performance artists in Việt Nam. He has held exhibitions in some 15 countries throughout the world, including the US, the UK, France, Switzerland, Spain and China.

He introduced the public to his Gam Troi Valley project in the northern province of Hoa Binh in 2013, which will be the largest of his career. The project will feature large-scale sculptures and installations gathering international artists.

Vietnam Harsh Macro Tour 2018 will continue at DeN Bar, No 49 Yen Phu village on July 14; and at Hanoi Goethe Institute, 56-58 Nguyen Thai Hoc street on July 15.

The tour will also be held without artists Khanh and Bowden at Then Cafe in the central province of Thua Thien – Hue on July 19 and Seoul Art Pub in HCM City on July 21

Stock Turmoil hits Eight-Year High of Angst Rises in Vietnam

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Anyone investing in Vietnam’s stock market these days must have solid nerves.

After slumping 26 percent from its April record, the nation’s VN Index has seen its volatility surge to levels not witnessed in more than eight years. The gauge, which was Asia Pacific’s best performer just months ago, has now erased all of its 2018 gains, sinking more than any other regional benchmark from its peak. Nguyen Kieu Giang reported on Bloomberg.

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Sentiment quickly reversed as Federal Reserve tightening triggered a surge in the U.S. dollar — and a plunge in Vietnam’s dong. Foreigners began to flee the Southeast Asian nation’s shares, and outflows only worsened with growing concern over the consequences of trade frictions between the U.S. and China.

“Volatility is here to stay, it’s normal at this stage,” said Bernard Lapointe, the head of research at Viet Dragon Securities JSC in Ho Chi Minh City. “Buyers and sellers are arguing where we are going, taking profit. People have been burned in equities and will not come back that soon.”

After six straight years of gains surpassing 6 percent, the VN Index entered bear territory in May. While it staged a 12 percent rebound in early June, the advance didn’t last, and the volatility increased. It was little changed on Thursday, trading at its lowest level since November, while most regional benchmarks rose. Since April’s high, Vietnam’s stock market has lost $25.4 billion in value as international investors spent three-fourths of their days withdrawing money from it in the past three months.

The plunge took the gauge’s valuation to 14.3 times estimated earnings for the next year, the lowest since September and closer to its three-year average multiple of 14.6, data compiled by Bloomberg show. For Bill Stoops, chief investment officer of Dragon Capital Group Ltd., shares are looking cheap with earnings growth poised to hold up at about 26 percent this year, he said.

“Fundamentals are still very positive,” he said from Ho Chi Minh City. “The macro economy seems very stable: low inflation, high foreign reserves while FDI is still pouring in,” he said, referring to foreigner’s direct investments, which represent about a fifth of Vietnam’s gross domestic product.

Economists forecast a 6.8 percent expansion in 2018 and 6.7 percent in 2019, according to the median projection compiled by Bloomberg. The nation has grown at an annual rate of 5 percent or more every single year but one since at least 1990.

But that doesn’t shelter the market from violent twists and turns. Viet Dragon’s Lapointe expects the turmoil to continue.

“Markets should get used to a new, hostile normal,” he said. “It is a bit like inflation: when its shows up, it’s hard to get rid of it. Volatility will stay higher than 12 months ago due various uncertainties.”

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