Vietnam’s PM has asked the information minister to oversee final resolution of the imbroglio over an inaccurate map of Vietnam carried by Facebook.
Prime Minister Nguyen Xuan Phuc has also asked Minister of Information and Communication Truong Minh Tuan to make sure steps are taken to prevent such mistakes in the future.
Earlier this month, the social networking giant wrongfully depicted Vietnam’s Hoang Sa (Paracel) and Truong Sa (Spratlys) archipelagoes as part of China.
Facebook’s error came at a time when the international community had backed criticism of China’s recent actions in the disputed South China Sea, which Vietnam calls the East Sea.
The map not only showed the islands as part of China, a live version displayed the name “Sansha” over the South China Sea.
“Sansha” is the name of a city China has illegally and unilaterally established in the disputed waters that includes Vietnam’s Paracel and Spratly Islands, as well as the Scarborough Shoal, which is claimed by the Philippines.
A Facebook representative responded that there was some “confusion” over the map, that it was a technical error without political intention.
Facebook also stated that all its maps were provided by third-party companies like OpenStreetMap and HERE Maps.
Later on, the social media giant removed the two islands from its map of China and issued a press release apologizing for the mistake. It said a patch to fix the error has been deployed globally.
Vietnam has consistently affirmed that it has full legal basis and historical evidence to assert its sovereignty over the Paracel and Spratly Islands.
China seized the Paracel Islands from South Vietnam by force in 1974, and has been illegally occupying a number of reefs in the Spratly Islands since 1988.
After two months postponing the increase in service fees for ATM cash withdrawals as required by the central bank, some commercial banks have now resumed the plan, announcing that a new service fee framework will apply from the middle of this month.
Three big banks Vietinbank, Vietcombank and BIDV will officially increase service fees for ATM cash withdrawals from VNĐ1,100 to VNĐ1,650 for each transaction in their system from July 15.
Earlier, commercial banks had to cease their plans to hike service fees as required by the State Bank of Việt Nam (SBV). The SBV on May 9 directed commercial banks to stop increasing ATM cash withdrawal fees at that time after the public expressed their disagreement over increased fees on ATM transactions and e-banking services at many banks.
According to SBV, it regulates a fee framework for ATM cash withdrawals and commercial banks must follow it to set their own fees. The banks’ recent fee hike doesn’t violate the SBV’s regulation.
The central bank’s Circular 35, which came out in 2012, allowed banks to collect ATM fees from March 2013. The maximum fee of VNĐ3,300 for each transaction has been permitted since 2015 but most banks have kept their fees at either VNĐ1,100 or VNĐ1,650.
However, SBV noted, for any fee adjustments, besides making information transparent, banks should look into the interests of customers to ensure a balance between the two sides.
E-wallets on the rise
As banks have hiked service fees on ATM withdrawals as well as online and mobile banking, e-wallet service providers are applying free services to attract customers.
Nguyễn Ánh Hồng in Hà Nội said that she used e-wallet Vi Viet to pay online for utilities, internet, and her mobile phone bills every month. She even used this app to pay when going out with friends or family. Recently, as numerous banks had moved to adjust service fees, she had used the e-wallet more frequently.
Local media have quoted leaders of some banks confirming that customers are turning towards e-wallets to pay bills, shop, and transfer money. E-wallets also provide some extra services to compete with banks’ internet and mobile banking services. Notably, it is very easy to register new accounts via smartphone.
Bùi Quang Tín, a banking expert, told vietnamnet.vn that the 132 million cards issued by banks did not mean banks can control the market. To date, 25 non-bank institutions had been providing intermediary payment services.
While Vietnamese banks were still busy collecting fees, payment companies were not, because they strove for a long-term business strategy, Tín said, adding that they had calculated thoroughly when accepting losses in the first phase of operation.
If payment companies could attract more users, they would have huge capital to use which could bring bigger benefits than the fees they collect from services.
“The competition in the payment market is getting fierce. If banks don’t change their strategy, they will lose their share in the home market,” Tín warned.
There are now about 20 e-wallet service providers in Việt Nam, including well-known names such as Momo, Ngan Luong, VTC Pay and Payoo. However, there is no official report from the SBV about the number of Vietnamese e-wallet users. Service providers estimate that 10 million e-wallets are in use in Việt Nam, which is a modest figure compared with the great potential of the market, analysts say.
Fuelled by the fear of Grab acquiring their member firms, the taxi associations from the three regions proposed the Ministry of Transport (MoT) to issue solutions to stop business co-operation contracts between Grab and traditional taxi firms.
Notably, these taxi associations asked MoT to cancel business co-operation contracts between Grabtaxi and its traditional taxi firm partners before the new decree, which will replace the existing Decree No.86/2014/ND-CP, is issued.
Besides, these taxi associations required MoT to manage Grab’s operations as if it was a traditional taxi firm.
Furthermore, these taxi associations also proposed MoT to decrease business conditions (including lowering fares and lower the frequency of periodic health checks for the taxi drivers) so that they can increase their competitive capacity.
These proposals were made after traditional taxi associations grew worried that if the authorities do not bring Grab’s activities under stricter management, it will continue to dominate the Vietnamese taxi market.
This is not the first time that taxi associations object against Grab. Notably, in March, before Uber left Vietnam, taxi associations requested temporary policies to hamper Uber and Grab while local authorities build a new decree on business and conditions for transportation business by automobile.
The taxi associations of Hanoi, Ho Chi Minh City, and Danang submitted documents to Prime Minister Nguyen Xuan Phuc to protest the government’s decision to extend the pilot programmes on using technology applications to connect and manage transport activities until the new decree replacing the existing Decree No.86/2014/ND-CP comes into effect.
According to the three taxi associations, local authorities’ extending the pilot ride-hailing service programme (which came into effect in January 2018) instead of tightening the operations of Uber and Grab would disturb the Vietnamese transport market and make it difficult for traditional taxi firms to maintain operations.
Along with taxi associations’ protests, traditional taxi firms have merged with each other to fight Grab.
Most recently, taxi operator Mai Linh Group will merge Mai Linh Central JSC and Mai Linh Northern JSC in an effort to streamline its cumbersome operations and concentrate resources to compete with Grab.
Besides, the representative of Vietnam Taxi Company (Vinataxi) announced the plan to merge with ComfortDelgro Savico Taxi—the taxi brand that had to suspend operations in March due to heavy competition.
Backed by ComfortDelGro Corporation Limited from Singapore, the merger between Vinataxi and Savico Taxi may help them overcome the competition with Grab and other ride-hailing applications.
As startup enterprises are commonly suffering losses, with examples of firms running in the red for an entire decade, Tiki may have a long three years ahead.
Repeated losses
After seven years, Tiki has accumulated nearly VND600 billion ($26.43 million) in losses, including VND308 billion $13.56 million) in 2016 and VND284 billion ($12.5 billion) in 2017.
Its revenue in 2016 reached VND62.4 billion ($2.74 million), up six times against 2015. However, the e-commerce platform took losses of nearly VND179 billion ($7.9 million) in the same year due to overly high sales expenses. Accordingly, sales expenses in 2016 were over VND222.5 billion ($9.8 million), tripling against 2015.
In fact, Tiki JSC only reported revenue from services, as well as e-commerce trading recorded by its subsidiary Tiki Trading. In 2016, the subsidiary’s revenue hit VND817 billion ($36 million) with the gross margin of 9 per cent. Despite this, Tiki Trading suffered a loss of VND41 billion ($1.8 million) as sales expenses exceeded the business’ profit.
Dry spell may not be over
Suffering losses to succeed later is quite common for startups, while startups reporting profit from the get-go are really rare. Investors pouring money into the firms commonly expect returns in 5-10 years.
Tiki CEO Tran Ngoc Thai Son also stated that the losses are part of the firm’s long-term development plan. Tiki is expanding its scale of operations by investing in infrastructure, warehouses, human resources, and technology.
Maybe due to the firm belief in their development potential, Tiki and other e-commerce platforms receive high valuationes. In 2016, Tiki was appraised at VND1 trillion ($44 million) despite only being in business for six years. At the time, VNG Group poured VND383 billion ($17.02 million) to acquire 38 per cent in Tiki for VND104,000 ($4.57) per share. Thanks to this, Tiki recorded a surplus of nearly VND340 billion ($15 million) in late 2016.
Different from other firms, the value assessment standards for startups like Tiki revolve not around profit, but market share, revenue, per customer purchase value, and the rate of returning customers.
According to Financial Times, Tiki has annualised gross merchandise value—an indicator by which ecommerce sites measure their sales—of about $240 million, and delivers across Vietnam.
Due to the satisfying revenue despite the losses, Tiki has even received foreign investment. In the middle of January 2018, Chinese-based JD.com poured VND1 trillion ($44 million) into the e-commerce platform.
In the world, many of the contemporary giants look back on a difficult first decade. These include US-based Tesla Motors and sandwich chain Charleys Philly Steaks. For seven-year-old Tiki, three more years of losses is well within the realm of possibilities.
Retail chains specializing in products for mothers and children now have to compete with private shops and vendors, whose low cost is a great advantage.
VI Group has announced it has pumped capital into Kids Plaza. The group, which is managing $400 million worth of assets, has become the minority shareholder of the retail chain, but declined to give detailed information about its ownership ratio.
Analysts commented that the investment in Kids Plaza will lead to cutthroat competition among the three big players in the market. The Kids Plaza chain has the lowest number of shops among the three.
Prior to that, Bibomart received investment from ACA Investments belonging to Sumitomo Group. Meanwhile, Con Cung, the leading retail chain, got support from Daiwa-SSIAM II co-managed by Daiwa and SSIAM.
Trinh Lan Phuong, chair of Bibomart, once said the mother-and-kid product market value had exceeded $7 billion, triple the figure predicted by FTA, a market analysis firm.
With millions of babies born every year and the increasingly high income of parents, the mother-and-kid market has had a two-digit growth rate in the last few years.
While the products available in the market are mostly imports, distribution is being undertaken mostly by domestic companies. The number of distribution chains bearing foreign brands in Vietnam remains modest.
“At this moment, I cannot see any foreign owned chains which are big enough to change the face of the market,” said Luu Anh Tien, founder of Con Cung JSC, which owns Con Cung and ToyCity retail chains.
This is the largest chain of its kind, with 318 shops across the country, including 288 Con Cung shops and 30 Toy City shops. Tien said 130 shops were opened in 2017, a part of the plan to open more than 1,000 shops by 2020.
Bibomart was established in 2006, but only since 2014 has the retail chain begun its expansion. To date, it has 140 shops, mostly in Hanoi and HCMC.
Meanwhile, Kids Plaza has 74 shops in seven cities, two-thirds of which are in Hanoi. Having relatively high revenue of VND390 billion in 2016, the profit made by Kids Plaza was VND500 million only.
However, BiboMart, Con Cung and Kids Plaza are not the only influences in Vietnam’s market. They have many other rivals such as e-commerce floors, social networks and private-run shops.
An analyst said Vietnamese mothers are buying more items via social networks. The retail cost via the channel is low, partially because sellers don’t pay tax. This allows sellers to sell products at more competitive prices.
Women are travelling alone more than ever, as a result of more flexible working patterns, greater spending power and an increasingly accessible world out there to explore. There is plenty of inspiration for the intrepid female traveller, from iconic films such as Eat, Pray, Love and Wild, to the thousands of images flooding Instagram of women taking on the world’s most epic travel destinations, often alone.
Image source: cdn-images-1.medium.com
Globally, solo travel is on the rise, with tour companies and hotels reporting increasing numbers of solo bookings year on year, and Vietnam is no exception. In 2017, Airbnb reported that bookings for single guests in Ho Chi Minh City jumped by 146 percent from the previous year. There are also numerous tours designed with solo women in mind, from wellness retreats to adventure tours. Wild Woman Expeditions and Adventure Woman operate tours exclusively for women, run by women. This can be a great way to experience Vietnam and meet some like-minded travellers, within the security of an organised group.
Wild Women Expeditions has been offering women-only adventures around the world for almost three decades, before female solo travel became trendy. The company offers a northern Vietnam hiking adventure, which is one of its most popular tours according to the company’s founder, Jennifer Haddow. She said, “We saw the need for women to create community around shared travel experiences and an empowering space for women to try on new roles in group travel, where they could feel totally free to be themselves and to stretch out onto their edge. For many women, it can be liberating to be in a group of all women, to bond and support each other in outdoor adventure challenges.”
What are the Risks?
As in many Southeast Asian countries, there is petty crime in Vietnam—particularly in the main cities—but violent crime towards foreigners remains relatively rare. However, females travelling alone can face additional challenges, mostly around physical safety, including the threat of sexual aggression and the potential for cultural misunderstandings around gender and sexuality. Dealing with unwanted attention is a nuisance, but the most significant concern for most solo female travellers is situations that could lead to rape. Luckily, violent crime rates are relatively low in Vietnam, as are reports of sexual assaults, although they do happen. Female travellers should take the usual precautions around walking alone late at night and when travelling on overnight trains or buses. The website SafeAround particularly advises caution on the overnight train to/from Lao Cai.
Despite this, there is no reason why women should live in fear of solo travel, especially with an increasingly accommodating travel industry and a shift in attitude globally. Women should take risks and travel alone, but travellers have to accept that they may come across different, culturally-specific attitudes towards females and that they will probably need to adapt accordingly. In Vietnam, this means adhering to a more respectful dress code in temples or in rural areas.
Otherwise, attitudes towards women feel relatively modern. Vietnam is a long way off having a feminist movement on the scale of what is happening in America and Europe, but a fledgling #metoo debate surfaced in April after rape allegations at Tuoi Tre News came to light. As in many Asian countries, Vietnamese culture is rooted in Confucianism, which advocates patriarchy and tends to support gender inequality. Furthermore, an ActionAid survey in 2016 revealed that there was a lack of understanding in Vietnam about what constitutes sexual harassment.
What’s Out There for Solo Female Travellers?
In Vietnam, there are lots of options for lone female travellers, whether it’s soaking up the sun on the beach or being immersed in Vietnam’s history and heritage. Vietnam has a solid and well-trodden tourist trail and solo travel is not uncommon—travellers who stick to the main destinations are likely to meet lots of other tourists
For travellers who veer off the tourist trail into more rural areas, people are likely to be curious and may stare or try to strike up conversation. For women, this can feel uncomfortable, particularly if they are alone and the attention feels sexually motivated, but in Vietnam it tends to be simply curiosity. Most Vietnamese people are friendly and helpful; it pays to be cautious of scams but on most occasions it is possible to be polite and understanding despite potential cultural or language barriers.
Image source: static.mytour.vn
In addition to adventure tours, there are a number of companies offering female wellness retreats, including Chicks Club, which organises customised weekend getaways and female-only retreats within Vietnam and across Southeast Asia, mostly focused on yoga, meditation and being active. There are also plenty of hotels across the country offering spa and yoga packages, including the Six Senses resort on the beautiful island of Con Dao.
Volunteering while in Vietnam can provide female travellers with a focal point during their trip, offering a more structured environment with opportunities to meet other travellers and to give something back to the community.Giving Way lists a wide range of year-round volunteer opportunities with social enterprises and non-profits such as Coins for Change, which is run by women for the purpose of promoting equal rights and social justice for women and children in Vietnam.
For backpackers, it’s usually easy to find female-only dormitories in hostels across the key tourist spots, such as Memory Hostel in Danang or Vintage Hostel in Ho Chi Minh City. There are also smaller-scale tours that are perfect for the solo female traveller, such as XO Tours, which offers tourists all-female guided motorbike tours in Hoi An and Ho Chi Minh City.
Why Travel Alone as a Woman?
Despite the potential pitfalls, solo female travel can be incredibly rewarding. Many people fall in love with the spiritual experience of solitude, the absolute freedom of making plans on a whim and the sense of triumph at conquering the challenges as a woman on her own. This type of travel can open doors to a deeper engagement with a country and offer more opportunities for interaction with locals and other travellers.
There are a multitude of ways to approach solo travel in Vietnam and there are very few barriers-to-entry for women. Kristen, the author of The Blonde Abroad, a female-centred travel and lifestyle blog, summarised, “Vietnam is a wonderful country for solo female travelers as there are plenty of areas where women can explore, indulge and relax throughout the region.” With the steady rise in solo female travel globally, as well as the number of companies now catering to this market, it’s a great time to explore this multifaceted country.
Hanoi’s air quality has reached level of “good” for the first week of July. Photo: Ashley Pham
According to a report from Vietnamnet, the first week of July witnessed an improvement in Hanoi’s air quality, according to the city’s Environment Protection Authority under the Department of Natural Resources and Environment.
The air quality measured at monitoring stations around the city reached levels of ‘good’ and ‘average’. Significantly, the number of days with ‘good’ air quality rose in comparison with the previous week.
Mai Trong Thai, the authority head, told Ha Noi Moi (New Hanoi) newspaper that the measured air quality index (AQI) fluctuated between 40 to 94 points which were equivalent to ‘average’ and ‘good’ levels. There was no day with air quality dropping to ‘bad’ level.
Urban air monitoring stations of Trung Yen in Cau Giay district, Kim Lien in Dong Da district, My Dinh in Nam Tu Liem district and Tan Mai in Hoang Mai district showed increases in good air quality days, accounting for 100 percent, 71.4 percent, 71.4 percent, 57.1 percent and 42.9 percent respectively.
No monitoring indicator exceeds the Vietnamese standard.
At urban traffic site air monitoring stations on Hang Dau street, Hoan Kiem and Thanh Cong areas, the AQI remained at the average level. Hoan Kiem air monitoring station, however, acknowledged one day with AQI at a good level on July 5.
Meanwhile, the records by two air monitoring stations in Minh Khai ward, Hai Ba Trung district and on Pham Van Dong street in Bac Tu Liem district showed that during last week, air quality stayed at the average level under the pressure of high traffic.
The highest AQI tracked in these areas were 94 and 78 respectively, with the highest daily concentrations of fine particulate matter (PM2.5) of 44.7µg/m3 and 40.29µg/m3 respectively, below the Vietnamese air standard of 50µg/m3.
According to experts, rain over the next few days will also help to improve air quality in Hanoi after a week-long hot spell.
Vietnam is a country that wakes up early. The parks and sidewalks fill up quickly with people doing their morning stretches and strolling around to loosen their legs. But before the real work can get going, people need fuel. Here are the favorite breakfasts in Vietnam listed by Culture Trip.
Bánh mì
The bánh mì is the Vietnamese breakfast sandwich. It’s cheap, hearty, tasty and portable. For people in a hurry to get to work or school, the bánh mì is the perfect breakfast on the go. The story of how this humble sandwich became the breakfast of choice for millions is a surprisingly interesting one as well. Read all about it here.
Every day in Vietnam you see kids tromping off to school, swinging their xôi breakfast in little plastic bags. It’s a glutinous rice base with any number of toppings, including fried onions, mung beans, quail eggs and sliced sausage.
There’s dozens of varieties of bún in Vietnam. They’re any dish made with rice vermicelli noodles. Add in some grilled fatty pork, fried spring rolls, herbs, pickled veggies and dipping sauces, and you’ve got a delicious meal.
These are a kind of Vietnamese pancake, made by steaming fermented rice batter over a cloth to make thin, wavy sheets. Once you add in the minced shallots, ground pork, mushrooms and some fish sauce, you have a healthy and filling breakfast.
When people around the world think of Vietnamese cuisine, phở is the first dish that comes to mind. It’s an indispensable part of waking up for many people in Vietnam, and like most of the dishes on this list, phở is a good choice any time of the day.
Here’s one of our favorite Vietnamese dishes. We could eat bò kho every single day and be perfectly happy. Is it the healthiest? Probably not – but bò kho is just too delicious. We love dipping bread into the broth until we’ve sopped up every last drop.
This is likely the most customizable dish on this list. It’s a bed of broken rice – the cheapest kind – topped with any number of things, including fish, pork, meat balls, morning glory, pickled veggies and so much more. The options change with every restaurant. Broken rice used to be undesirable, but now many people prefer it.
Be careful with the fingers when you’re eating this dish, because it comes sizzling on black iron. It looks more Germanic than Vietnamese, but it’s the breakfast of choice for many protein-hungry people here. It’s beefsteak, eggs, sausage, veggies and a baguette – definitely not the breakfast of centenarians.
Bún bò Huế
We already covered one bún dish, but bún bò Huế is unique enough to warrant another spot on this list. It comes from Huế in central Vietnam, the old imperial capital and home to some of the spiciest food in the country. This dish might be a bit too much on a hot day in Ho Chi Minh City, but it’s the perfect way to warm up in the colder regions.
And finally, yet another bowl of noodles. Hu tieu is popular through much of Southeast Asia, especially in Cambodia. The noodles are doused in a sticky mixture of oyster sauce, soy sauce and sugar. The broth is flavored with pork bones, dried squid, sugar and fish sauce. The dish is served with meats and greens as well, dependent on availability and the tastes of the cook.
Starbucks is piloting strawless lids for Nitro beverages in markets such as China, Japan, Singapore, Thailand and Vietnam. (Photos: Starbucks)
SEATTLE: By 2020, consumers will no longer be able to get single-use plastic straws at all Starbucks stores globally – CNA reports.
This would apply to its more than 28,000 company operated and licensed stores, the coffee giant announced on Monday (Jul 9).
Starbucks said it will make available strawless lids or straws made of other materials instead.
“Starbucks has designed, developed and manufactured a strawless lid, which will become the standard for all iced coffee, tea and espresso beverages,” the company said in a news release.
“The lid is currently available in more than 8,000 stores in the United States and Canada for select beverages including Starbucks Draft Nitro and Cold Foam.”
In Asia, the lid is being piloted for Nitro beverages in markets such as China, Japan, Singapore, Thailand and Vietnam.
For customers who prefer to have or need a straw, Starbucks said straws made of paper or compostable plastic will be available upon request – for their Frappuccino blended beverages.
Starbucks is among several major companies that have announced measures to cut plastic waste. Swedish furniture giant IKEA recently announced that it will stop selling single-use plastic products at all its stores globally by 2020.
McDonald’s also said last month that it would replace plastic straws with paper ones in the United Kingdom and Ireland from September.
Starbucks said the new strawless lids will first be implemented in Seattle and Vancouver in the third quarter of this year. Phased rollouts within the US and Canada will then follow.
A global rollout of the strawless lid will begin in Europe, starting with select stores in France and the Netherlands.
The custom lids will also be introduced in the UK, just as the market expands its £0.05 (US$0.07) paper cup charge to 950 stores.
Vietnam suffered losses of VND868 billion (USD39 million) caused by natural disasters in the first half of this year, according to the Central Steering Committee for Natural Disaster Prevention and Control – Dtinews reports.
The committee on July 9 held a meeting to review natural disaster prevention and control in the first six months of this year.
The committee reported that between January and June, the country faced 14 kinds of natural disasters. Floods which happened in the northern mountainous region in June, leaving 23 dead and 10 others missing, alone accounted for up to VND500 million in losses.
At the meeting, Lai Chau Province People’s Committee deputy chairman Le Trong Quang said that it was important to provide people in areas which often face natural disasters with skills to live with unfavourable weather conditions.
Besides the systems for storm and flood prevention and control at different levels, he mentioned the necessity to establish task forces to warn the public of possible risks of natural disasters. This is aimed to deal with the on-site urgent problems when the rescue force can’t come timely, Quang added.
The National Centre for Hydro-meteorology Forecasting said that Vietnam would see eight to 10 storms this year, including four or five would affect the mainland directly.
Minister of Agriculture and Rural Development said that more complicated natural disasters showed more serious consequences of climate change facing Vietnam.
According to the Ministry of Agriculture and Rural Development, Vietnam was one of the five countries most likely to be severely affected by climate change, with 21 types of natural disasters, especially storms, tropical depression, floods, flash floods, landslides, droughts, saline intrusion, and river bank and coastal erosion.
Around 400 people are killed or go missing in the country due to natural disasters annually. Natural disasters account for losses of 1%-1.5% GDP a year for the country.
Alarmeow, a wake-up call application created by a group of young Vietnamese is now available at the iOS App Store.
Nguyen Tran Tung, 27, of HCM City and his friends worked on the app for six months.
The app is ranked 16st in the lifestyle category among the most-downloaded mobile apps by users worldwide, receiving many “five star” ratings. It is offered in Vietnamese and English.
Users can download the app for free via the iOS app store.
Alarmeow is designed as a super-clever alarm clock to get you out of bed on time, and is suited for people who have trouble staying awake in the morning.
By default, the app’s alarm only stops ringing when users have played mini games such as finding a way out of a labyrinth or fast memory or by shaking the phone.
“This helps users stay awake by the time they try to disable the alarm,” Tung said.
After finishing the game, motivational quotes and inspirational sayings welcome the new day on the phone screen.
In addition, the app also provides notifications reminding users to go to bed from 10pm to midnight.
Tung said he is developing a new app for learning English, and is looking for investments and cooperation from young people who share his passion for making products for the community.
Vietnam International Bank (UPCoM: VIB) announced its 1H 2018 unaudited financial statements with positive business results showed in key indicators such as profit before tax, deposits, lending and NPL.
Specifically, VIB’s 1H profit before tax reached VND1,151 billion, up 216% year-on-year since the net revenue increased by 56% year-on-year to VND2,701 billion, while operating expense was VND1,316 billion, up 16%. Moreover, thanks to continuous improvement of credit quality, the bank’s credit loss provision was maintained at a low level of VND234 billion.
Lending and deposits reached VND91,700 billion and VND83,168 billion, up 8.94% and 7.1% year-to-date, respectively. VIB managed well other financial adequacy ratios such as ratio of short-term deposits used for long-term loans at 40.7% (compared with permitted maximum limit of 45% by SBV), loan-to-deposit ratio at 75.7% (vs. permitted maximum limit of 80%) and the bank’s NPL ratio at 2.3%. CAR was maintained at 12.5% with equity of VND9,669 billion. The cost-to-income ratio (CIR) decreased from 65% to 49% in 1H 2018.
The most important contribution to VIB’s growth and profitability came from retail banking business, which gained year on year 100% growth of 1H 2018 revenue. As accumulated personal lending is growing rapidly, the bank currently ranked among biggest retail banks in the market.
VIB continued to be the No.1 bank in terms of auto loan disbursement in 1H 2018, reaching over 30% market share. VIB is the market leader as well in terms of growth rate of mortgage lending, up 78% in 1H 2018 year-on-year, focusing strongly on mortgage loans with land deed, and loans for home repair. Specially, the bancassurance business model helped VIB’s annual premium equivalent (APE) grow by 151% year-on-year, ranked among top 3 biggest banks in terms of market share on selling life insurance.
VIB is one of banks with highest productivity in Vietnam’s banking industry as the bank’s profit per employee was more than VND230 million in 1H 2018.
The bank expected that 2018 profit before tax would be over VND2,500 billion, 25% higher than the target agreed by its shareholders.
In 1H 2018, VIB achieved many international awards and recognition of communities in CSR activities
In 1H 2018, VIB achieved many international awards and recognition of communities in corporate social responsibility (CSR) activities. With the target of being pioneer in developing digital banking, VIB has invested for MyVIB mobile banking application, website, call center, self-service features, and gained 2 awards, including “Digital bank of the year 2017” and “Best retail mobile banking experience 2017” by The Asset. On June 4, 2018, the IFC of the World Bank Group awarded VIB the “2017 Best Trade-Operations Bank Partner in East-Asia Pacific” under the Global Trade Finance Program (GTFP). VIB is the only bank among IFC’s issuing bank partners in East Asia and the Pacific to achieve the award in 2017.
In addition to its achievements in the banking sector, VIB has continued to carry out different CSR activities in promoting education and healthcare. In June 2018, about 100 disadvantaged children born with cleft lips, cleft palates in Northern Vietnam were given free surgeries under the medical charity mission by VIB and Operation Smile Vietnam (OSV). In 2017, VIB also coordinated with OSV to provide medical consultations and free surgeries for nearly 200 children with cleft lips, cleft palates and phonetics training for nearly 400 families of patients across the country.
Office rentals in downtown Ho Chi Minh City have been rising steadily over the last three months, a new report by CBRE Vietnam says.
Grade A office rent has seen a 7 percent increase in the second quarter over the first quarter and 17 percent increase over the same period last year, the report said.
A similar increase, of 7.3 percent over last year, has also been seen in Grade B office rentals.
The report attributes the rice in prices to high demand and limited supply.
In the last one year, office vacancies in new buildings have been rapidly filled, with vacancy rates for both Grade A and B offices at below 5 percent, the report says.
In the second quarter of 2018, the HCMC market has not received new office space supply. Total Grade A office supply remained unchanged at 382,763 square meters, while Grade B office space rose slightly by 968 square meters to 814,330 square meters.
Dang Phuong Hang, managing director of CBRE Vietnam, predicted that Grade A office rents would continue to increase through 2019 or early 2020, with supply remaining limited. Office vacancies will become increasingly scarce, she said.
Sophie Dao, partner of GBS, a legal and business services firm in Saigon mentioned that, based on her experience with small size and mid-size foreign investors, virtual offices and co-working space still be preferred options in Vietnam.
Dramatic footage has emerged today showing the moment cops raided brothels in Vietnam and found dozens of young escorts huddled together as they desperately tried to hide their faces.
Police stormed into the Fortune Hotel in Ho Chi Minh City just before midnight on June 9 and caught the women waiting for customers.
The women fled into small rooms and used their handbags to cover their faces as police checked the buildings.
Cops then ran up to a hidden roof top terrace and discovered a further 30 waitresses “dressed provocatively” playing on their phones.
They were asked to go downstairs for administrative checks.
About an hour later, the same interdisciplinary inspection team made a second raid without warning at Fortune 2 Hotel, which is also on the same street.
The escorts were found waiting for customers. Photo: Viral Press
Police stormed three venues in June Photo: Viral Press
Some of the escorts fled to other rooms. Photo: Viral Press
Officials said that more than 80 waitresses were not officially employed under labour contracts. Photo: Viral Press
They said there were a number of seductively dressed waitresses who were found singing karaoke with foreign guests.
Officials said that more than 80 waitresses were not officially employed under labour contracts and most of their earnings come from tips from guests.
The fortune II hotel in Ho Chi Minh City was raided just before midnight Photo: Viral Press
Ho Chi Minh City Police said in a statement: “These two hotels have made a number of violations such as operating karaoke service without a license, utilising a number of waitresses per room more than permitted by laws, employing employees without contracts, and using a sexually oriented business method.”
Police later raided a third entertainment venue, the Fyou Karaoke Bar, where staff showed an ”uncooperative manner and argued loudly”.
They added: “The bar was penalised for various violations such as operating beyond stipulated business hours, infringing music copyrights, having no labor safety certificate, and having no internal rules and regulations regarding employment.”
Frantic scenes ensued after officers stormed the buildings Photo: Viral Press
Grant Thornton Vietnam just released the results of the Vietnam Hotel Survey 2018.
Kenneth Atkinson, Executive Chairman of Grant Thornton Vietnam said, the report this year marks the 15 consecutive year Grant Thornton conducting the only comprehensive research on high-end hotels and resorts in Vietnam.
Continue with last year’s momentum, Vietnam is rapidly growing as a top tourism destination among SEA countries. The country is the 6th fastest growing country in the world as a tourist destination, and the fastest in Asia, according to a report by UNWTO.
Total arrival rose by 19%, from 72 million in 2016 to 86 million in 2017, of which international arrivals increased 29%, and domestic arrivals increased 18%.
The hotel industry, following the increase in number of guest, is receiving massive amount of investments. According to the Ministry of Culture, Sport and Tourism, in 2017 there were 79 new upscale (3-5 star) hotels brought into operation, 10 of which are 5 star, with a total of 101,400 rooms, an increase of 10% over last year. AirBnB, an emerging player in the hospitality scene, is also growing in number of listing, with over 16,000 listing in and around two key cities, Hanoi and HCMC.
Average Room Rate
The analysis of upscale hotels was performed by Star Ranking and Region. By Star Ranking, Room Rate for 4-Star hotels continues to increase, though only slightly by 1%, reaching USD75.2 in 2017. 5-Star hotels have their rates recovered from last year’s decline, reaching USD107.6, an increase of 4.2%.
RevPAR
RevPAR for hotels continues to increase, but with different paces for each star ranking, 7.6% for 4-Star hotels while 5-Star’s is higher, at 10.2%.
Occupancy Rate
Overall, occupancy rate improved by c.5% for both star rankings (4.8% for 4-Star and 5% for 5-Star). However, on the regional scale, the change in occupancy rate was not the same for all three areas. Central region saw the most significant rise in occupancy rate of 7.5%, followed by the North of Vietnam (6.4%) and the Southern region (2.2%).
Profitability
2017 witness a continued improvement of the upscale hotels sector’s profitability. EBITDA increased by 1.7%. This increase was attributed to the drop in Undistributed Operating expenses by 1.8%, while other expenses remained roughly the same.
Regarding guest components, FIT/Leisure travelers and Tour groups accounted for the highest proportions of guests staying at upscale hotels, together they accounted for more than 60% of total guest. The third biggest portion – the Corporate/Business travelers was observed with a slight increase of 0.5% in 2017.
The structure of reservation channels in 2017 remained unchanged from 2016. Tour operators/Travel Agency is the major channel of reservation for 4-Star and 5-Star hotels at c.33%, while there was a slight drop of 1.6% in Direct Bookings and a marginal increase in OTAs increased and Corporate.
On a Star Ranking basis, proportion of guest at 4-Star hotels who booked their rooms via Travel agents and Tour Operators rose to 43.1%, while 5-Star hotels only have 22.7% of its sales via this channel.
2017 saw an increase in the number of hotels who have decided that digital technology is vital to their business to help combat growing competition and to set them apart from those older hotels or those with an older mind sets. Vast majority of the hotels considers Integration of digital technologies into the Hotels services a factor that will change Vietnam hotel market.
Hotels that consider the Integration of digital technologies into the hotels services is a factor that will change Vietnam hotel market.
In 2017, all participant hotels have integrated one or more digital technology into their operation. While digital marketing and using of data mining and analysis have become basic, being used at almost all the 4-5 Star hotels, the trend of applying mobile application for guests personalization and online check in/check out is becoming more and more popular, and increasing quickly, with more than 50% of 5 Star hotels, and 30-40% of the 4 Stars. It is predicted that these digital technologies will soon taking over the industry.
100% of the proceeds raised from sales of the Hotel Survey 2018 by Grant Thornton Vietnam will be donated to Newborns Vietnam.
Copies of Grant Thornton Vietnam’s Hotel Survey 2018 can be ordered by visiting Grant Thornton Vietnam’s website, http://www.grantthornton.com.vn, or by contacting its office in Vietnam. 100% of the proceeds raised from sales of the Hotel Survey 2018 will be donated to Newborns Vietnam, a United Kingdom registered charity in Vietnam, dedicated to reducing neonatal mortality in South East Asia, with a specific focus on Danang, Vietnam.
About Grant Thornton Vietnam
Grant Thornton Vietnam is a member firm within Grant Thornton International Ltd (Grant Thornton International), which was established in 1993 with offices in Ho Chi Minh City and Hanoi and has enjoyed growth and success since its establishment. The firm has 13 Partners and over 230 professionals in two offices, in Hanoi and Ho Chi Minh City, providing quality services in assurance, consulting and development services, corporate finance and tax services, designed to help clients in various industries achieve their business objectives. We operate with the highest standards of professional integrity with solid principles. Our dedication, teamwork and commitment result in a world-class professional service to our clients in Vietnam.
