Fenox VC makes Vietnam debut, invests in mobile top-up startup OnOnPay

Advertisements

Silicon Valley-headquartered Fenox Venture Capital has made its investment debut in Vietnam by backing Hanoi-based mobile top-up service firm OnOnPay.

OnOnPay’s existing investor Captii Venture also participated in this round, according to an announcement from Fenox.

Fenox VC Southeast Asia Regional Manager Retno Dewati earlier told DEALSTREETASIA that the VC firm would make the first investment in Vietnam this year by investing in a leading company.

“The investment in OnOnPay is a milestone to Fenox as it opens up more avenues of opportunities for us to tap into the potential of large Vietnam market,” said Dewati. “We are seeking to partner with other institutions to back Vietnamese entrepreneurs grow their business globally and we are ready to invest more in this country.”

Founded in 2015 as a mobile wallet operator, OnOnPay secured a six-digit amount in seed funding from Captii Ventures in 2015. The round marked the first ever investment by the Singapore-based venture capital fund in Vietnam.

A year later, OnOnPay landed an $800,000 pre-Series A funding led by Shanghai-headquartered VC firm Gobi Partners through its MAVCAP’s ASEAN SuperSeed Fund vehicle.

In an exclusive interview with the portal, Fenox Venture had said that it will relaunch its India-focused $50-million fund by the end of the current year. The India fund was put on hold in 2016 following the departure of a general partner hired to lead the fund.

Fenox, which raises capital only from corporate limited partners, is also looking at launching special investment funds in China. It has already established an accelerator in cooperation with the Chengdu government to invest $50,000 in each participating startup and provide mentoring for a few months.

In Vietnam, Fenox is also exploring tieups with local corporations to set up a dedicated private fund for the country. “We are targeting to close at least a couple of million dollars dedicated for Vietnamese companies,” Dewati said.

By Quynh Nguyen

Source: Dealstreetasia

Jobless at 30: Welfare crisis looms in Vietnam

Advertisements

Young employees in Vietnam are seeking “retirement” benefits after being laid off by firms looking to save wages and social insurance costs.

The head of the Department of Labour Relations under the Vietnam General Confederation of Labour (VGCL), Mr Ngo Duy Hieu, said at a National Assembly session last week that some companies, including those set up with foreign direct investment (FDI), had ended contracts with workers over 35 because they felt that some of the jobs “no longer” fit the workers’ ages.

One reason for this, he explained, was that some employers did not want to spend more on wages and social security.

The exit of workers aged 30-35 was brought about either through increased work pressure, or summary termination without an explanation, he said.

Ms Hong Hang, 35, used to work for a company in the North Thang Long Industrial Park in Hanoi, but resigned after she was transferred to another unit where she felt the job was not good for her.

Mr Hanh sees a pattern in companies getting rid of their employees in their thirties, either by not renewing short-term contracts or giving unsuitable jobs to those with long-term contracts to pressurise them to quit on their own.

Ms Hanh told the VnExpress newspaper that she was now looking for a job at the Dong Anh job promotion centre in the capital.

A VGCL survey on the reasons for termination of labour contracts by FDI firms found that 40 per cent of employees left their companies due to being forced to work overtime, or failure to meet high targets.

Another 15 per cent said they were told they were physically unfit for the job, while 13 per cent were given no explanation.

However, noting that there were no thorough statistics on employees in their 30s being sacked by firms with foreign direct investment, Deputy Minister of Labour Pham Minh Huan said that major layoffs of employees over 30 were specific to one place or sector.

“Hiring or firing is up to employers and employees to decide together. In a market economy, companies will expand production and recruit new employees when they make profit. But if they face market challenges and have to reduce production, they will lay off employees. It is inevitable,” said Mr Huan.

Regardless of the reason, the layoffs are having a big impact on the country’s welfare system, with the number of people claiming lump-sum social security payments increasing significantly, according to Mr Le Dinh Quang, deputy head of the labour relations department under VGCL.

In recent years, an average of 700,000 people have been submitting claims for lump-sum social security payments every year. That figure was 300,000 in the first five months of this year, with a large number of people from the 35-40 age bracket.

“More than 10,000 people have registered for unemployment benefits in Hanoi and 90 per cent of them are just over 35 years old,” said Mr Quang.

The situation was more pronounced in labour-intensive sectors like textiles and garments, footwear and seafood, he said, with many workers in these sectors resigning because they no longer had the health to perform their duties as well as they did in their 20s.

Firms also tried to persuade workers to leave the job and take the lump-sum health and social security payments to reduce the amount the companies had to contribute in this regard.

Mr Dao Viet Anh, the deputy general director of Vietnam Social Security, said the rise in the number of employees seeking early retirement and withdrawing funds from the social security scheme could lead to an imbalance in the pension fund.

Nevertheless, he said the social security reform plan has proposed to reduce the minimum compulsory time to pay for social security from 20 years to 15 years, with plans for a further reduction to 10 years.

Source: Straitstimes

Vietnamese wins Mrs Worldwide 2018

Advertisements

A Vietnamese woman has won Mrs Worldwide 2018 for the first time after surpassing 24 other candidates across the world – Vietnam News reports

This is the first time Vietnam participated in such an international beauty pageant for ladies which took place on Sunday, and has surprisingly won the highest prize, local media reported.

Other winners were from South Africa, first runner-up and Russia, the second runner-up.

Linh, 35, also won two subordinate titles of People Choice and Special Queen Award at the contest, the Tien Phong (Vanguard) newspaper reported.

The Vietnamese and 24 others candidates had attended common performances including those of traditional and evening costumes at the final round of the contest.

She chose a white ao dai designed by Kenny Thai for the traditional dress performance, the paper reported.

The costume’s idea was inspired by the image of a swan featuring the purity and luxurious beauty of a woman. The symbol of a white swan also included the metaphor of a faithful love.

Wearing a gown decorated with gems and feather, the Vietnamese looked like a queen on the stage and was selected as one of the top 10 candidates to progress into the last interview round, the paper said.

Linh also impressed with her English speaking skills when answering all the judges’ questions perfectly.

Before being crowned Mrs Worldwide 2018, Linh had won Miss Friendship at the Miss Universe 2008 contest and was a joint holder of the third prize at the Vietnam Top Model 2004.

Linh also used to be the Vietnamese candidate at the Miss Tourism International 2004.

Currently working as an MC for four TV channels in the country, the new beauty queen is the mother of a seven-year-old child and the wife of a businessman.

Changing mind of consumers who buy rhino horn for treatment in Vietnam

Advertisements

To stop rhino poaching, we need to tackle its root cause: consumer demand for rhino horn. Without consumer demand, there will be no incentive for poachers or traffickers.

In the key consumer and trafficking countries for rhino horn – Vietnam and China – high demand and low enforcement of wildlife crime are driving the illegal trade and poaching of rhinos.

Thanks to your donations, we’ve been supporting the work of a Vietnamese organisation, Education for Nature Vietnam (ENV), to employ creative and innovative strategies to reduce consumer demand for rhino horn in the country. ENV’s initiatives are helping to influence attitudes and mobilise Vietnamese citizens to take action and protect rhinos.

Public adverts
Education for Nature Vietnam is delivering wildlife conservation messages to the Vietnamese public through public announcements. These adverts have been aired on 80 national and provincial TV channels, as well as at popular public venues such as movie theatres, gyms, supermarkets, trains and on the internet. ENV are sharing the message that ending wildlife consumption and taking action will save endangered species.

The latest announcement featured famous Vietnamese singer Hong Nhung and one of the country’s top TV MCs, Phan Anh, each urging the public to stop using rhino horn as a status symbol. This advert was not only aired on 62 TV channels but also widely shared by both Hong Nhung and Phan Anh’s fans on social media, reaching audiences far and wide.

Collaborating with Vietnam’s biggest radio channel
Voice of Vietnam reaches all 63 Vietnamese provinces, covering current topics and highlighting public actions and enforcement news. 124 shows were produced by ENV and Voice of Vietnam together, reaching millions of radio listeners across the country.

In celebration of World Rhino Day 2017, the radio show featured Vietnam’s achievements in rhino protection such as jailing kingpin Nguyen Mau Chien; a leader of a major criminal network trafficking many wildlife products from Africa to Vietnam. Chien was behind bars after being implicated in a major seizure of illegal wildlife products in Hanoi, including approximately 36kg of rhino horn.

Media campaigns
The media plays an important role in creating the public perception of the criminal justice system. Education for Nature Vietnam therefore utilises the media to reach the public and has been regularly pushing priority issues to the centre of public attention.

ENV were able to ‘maintain the heat’ on the Nguyen Mau Chien case, continuing to highlight the crime, deterring future criminals and applying pressure to local authorities to strengthen their law enforcement efforts.

Social media campaigns
Social media is a huge part of today’s media landscape, especially in reaching different audiences. In addition to the more traditional news outlets, rhino content is also posted on social media channels each week, with facts, news and imagery.

In September 2017, ENV’s Vietnamese Facebook fan page received interaction from thousands of people through their posts. One of the most popular was a post of still images of a dead rhino in Kruger National Park, South Africa. Many people expressed their feeling for the dead rhino and encouraged the public not to use rhino horn and take action to protect this critically endangered species.

Where your money goes
Your donations have been supporting the vital work of Education for Nature – Vietnam since 2012. With these funds, we have been able to help fund public awareness campaigns, including TV announcements, viral campaigns, public exhibitions and university programmes. Due to concerns about law enforcement in the country, the majority of our support has focused on supporting ENV’s crucial law enforcement and policy work.

More information about Education for Nature Vietnam
Education for Nature Vietnam (ENV) was established in 2000 as Vietnam’s first non-governmental organisations focused on the conservation of nature and the environment. They employ creative and innovative strategies to influence attitudes and mobilise Vietnamese citizens to reduce the demand for rhino horn within the country. In addition to above, Education for Nature Vietnam has been employing other initiatives to reduce consumer demand, strengthen law enforcement and increase public engagement in protecting the world’s rhinos.

Source: Save The Rihno

Germany out of World Cup as South Korea stun holders

Advertisements

Defending champions Germany crashed out of the 2018 FIFA World Cup in the group stage after South Korea stunned the European powerhouse with a 2-0 victory in their final Group F contest here on Wednesday.

From Group F, Sweden secured the top spot with six points, while Mexico, which also had six points, finished second due to an inferior goal difference. South Korea ended the group stage in the third spot with three points — same as Germany, who are also going home.

Before the two matches in the group on the day, Mexico had the best chance to enter the knockout stage, as a tie in the match with Sweden would be enough for it to qualify, while both Sweden and Germany fought with each other for second place, needing an outright victory and a big goal difference. South Korea also had a possibility to enter the playoffs as well, however, only if Sweden lost the game to Mexico.

South Korea took care of their own end at the Kazan Arena, with Kim Young-gwon and Son Heung-min scoring in second half stoppage time.

But Sweden made it all moot by beating Mexico 3-0 in Ekaterinburg, reported Yonhap news agency.

South Korea, as expectedly, deployed counter-attacking strategy to foil the German heavyweights. South Korea had only 31 per cent of ball possession in the match, and attempted only 251 passes, a third less than Germany. But those statistics weren’t important as the final score.

Against Germany, South Korea used a defensive lineup. With the absence of their midfield orchestrator and team captain, Ki Sung-yueng, South Korea started with 4-4-2 setup, but there was a twist as usual.

Jang Hyun-soo, who started last two matches as a center back, protected back four as defensive midfielder, hoping his defensive efforts could work in the midfield against German technicians.

Koo Ja-cheol, who is with German Bundesliga side FC Augsburg, played behind Son Heung-min, another South Korean player who is familiar with Germans with his stints at Hamburg and Bayer Leverkusen.

As many would have predicted, Germany, who played with a 4-4-2 formation and made five changes to their starting line-up that defeated Sweden 2-1 in the last match, dominated possession from the midfield and ran the game carefully.

With South Koreans sitting back, German full backs Joshua Kimmich and Jonas Hector made overlapping runs and even penetrated the box. Mesut Ozil and Toni Kroos controlled the midfield with their passing skills and vision.

For South Korea, taking a ball away from Germany and making a quick delivery to Son was their main homework. But it was a somewhat difficult task against the skillful and powerful Germans, and the South Koreans committed some sloppy fouls in the process.

Just in the first half, South Korea made 11 fouls, more than double that of Germany, and received two yellow cards.

South Korea surprised German goalkeeper Manuel Neuer a couple times in the first half, with Jung Woo-young’s free kick and Son’s thunderous strike that slightly flew over the net, but that was about it.

South Korea did hold on to the 0-0 score in the first half, with Germany struggling to land shots on target.

Both teams made substitutions to sway the match in their favour. South Korea put Hwang Hee-chan for Koo, and deployed the Red Bull Salzburg attacker on the right in the 56th minute.

After knowing Sweden won against Mexico, Germany were desperate for goals, taking out midfielder Sami Khedira for striker Mario Gomez in the 58th minute, and Leon Goretzka for Thomas Muller in the 63rd.

With Germans moving forward, South Korea also found open space behind the opponents, and Son, with Moon Seon-min, carried the ball near to the box, but they lacked a delicate final touch.

Germany, on the other side, were struggling with the same problem. Even though they made shots on target, their attempts went straight to goalkeeper Jo Hyeon-woo. They fired 26 shots, but only six were heading to the net.

And South Korea had grit and endurance to fight until the end. All told, they ran 118 km, three more than Germany.

With the Germans keep making mistakes, South Korea waited for fast break and bagged the opening goal in the 93rd following a corner kick situation and with a help of VAR system.

Frustrated Germans even moved forward their goalkeeper Manuel Neuer, and South Korea didn’t miss that opportunity. In the 96th minute, following Ju Se-jong’s long pass, Son tucked the ball into the empty net for their historic win, inflicting a rare historical defeat on the European outfit.

Meanwhile in Ekaterinburg, Sweden were at the top of their game, reported Xinhua news agency.

The decisive match started with a breathtaking tempo, as both sides demonstrated aggressiveness and determination from the very beginning, and Jesus Gallardo was booked by the referee within the first minute.

A floppy back-pass of the Swedes gave Mexico first goal-scoring chance in the 16th minute, but Carlos Vela’s curling shot just missed the goal inches wide of the far post.

Mexico survived a penalty scare as the referee stopped the game to review VAR, then refused to revise his initial judgment.

Sweden pulled ahead in the 50th minute when Viktor Claesson’s shot ended up an unanticipated assist for Ludwig Augustinsson, whose calm half-volley gave Sweden a 1-0 lead.

The Scandinavians were awarded a penalty after Hector Moreno fouled Marcus Bergin in the box. Captain Andreas Granqvist made no mistake from the spot.

Mexico defender Edson Alvarez scored an own goal in the 74th minute to help Sweden seal the victory and top position on the group standings on a superior goal difference.

Sweden will next take on the runners-up of Group E and Mexico will play the Group E winners.

Source: News Head

Facebook and Google in Vietnam: Privacy or Growth?

Advertisements

According to Bloomberg, Vietnam’s new cybersecurity law could force Alphabet Inc.’s Google and Facebook Inc. to choose between access to one of Asia’s fastest-growing digital economies and protecting their users’ privacy.

The law, which goes into effect Jan. 1 after the National Assembly passed it this month, requires foreign internet companies to store data within the country and open local offices. If requested, they’ll also be required to hand over to the government the data of users suspected of anti-state activity — including spreading news that may impede Hanoi or hurt the economy.

The law mirrors efforts globally to safeguard domestic users’ information and open up access to data that governments say they need to combat threats — what China refers to as its cyber-sovereignty. It also reflects a growing wariness about the influence of internet and social media giants that handle and parse information on and for billions around the world.

“If they comply with this law, they violate their own terms of service to protect the privacy of their users,” said Tim Bajarin, president of Creative Strategies Inc. “Officials could also censor content at will given the way the law is written.”

Vietnam’s move to assert greater control over what its people do online underscores the dilemma for tech companies that rely on countries wary of social media for growth. Apple Inc. agreed to build a data center and blocked a swath of apps in China to comply with local laws. Indonesia has threatened to bar social-media providers unless they comply with stringent demands to filter content deemed obscene.

Vietnam Relies on Once-Banned Facebook to Kick-Start Businesses

Vietnam’s youthful growing middle-class is a lure for digital companies. The country has averaged economic growth of 6.3 percent between 2005 and 2017 and multiplied its per capita income six-fold from 2000, according to government data. But the new law could now dent the nation’s growing digital economy by increasing startup costs and trigger an exodus of entrepreneurs to other markets, said Eddie Thai, a Ho Chi Minh City-based partner with 500 Startups, which started a $10 million fund in Vietnam two years ago.

Unlike China, Vietnam doesn’t block websites such as Facebook and Twitter. But the government has stepped up arrests of activists since 2016. Last year, officials announced they were deploying a 10,000-member cyber-warfare unit to combat what the government sees as a growing threat of “wrongful views.” President Tran Dai Quang, a former head of the public security ministry, says the regulations are needed to maintain social order and prevent “plots of hostile and reactionary forces,” according to a post on the government’s website.

Facebook and Google declined to comment on whether they will comply with the law. But Hoang Phuoc Thuan, director of the Vietnamese Ministry of Public Security’s Cybersecurity Department, told local media neither company had objected to the legislation.

“The devil is in the details,” said Jeff Paine, managing director of the Asia Internet Coalition, which represents companies such as Facebook, Google and Apple. “How does it get implemented? We will continue to engage with the government.”

Silicon Valley companies that comply with the law however could indirectly be complicit in the government’s crackdown on activists, said Phil Robertson, Asia deputy director for Human Rights Watch. The organization says there are more than 120 activists imprisoned in Vietnam. Furthermore, setting up offices in Vietnam “will open them up to so much liability risk related to their own employees,” he said.

It’s unclear what the government will do if the foreign internet companies refuse to obey. Government officials, who aggressively seek foreign investment and support a robust digital economy, have indicated they won’t block services, said Vu Tu Thanh, senior Vietnam representative of the U.S.-Asean Business Council, whose members include Google and Facebook. The government, though, has previously pressured Vietnamese companies to suspend advertising on YouTube and other sites showing anti-government videos.

Mary Tarnowka, the U.S. Consul General in Ho Chi Minh City, has criticized the new law, saying its passage “further narrows freedom of expression online, imposing burdensome restrictions on U.S. and other foreign firms.”

By John Boudreau With assistance by Xuan Quynh Nguyen, and Nguyen Dieu Tu Uyen

Data costs in Vietnam need further cuts to increase usage

Advertisements

Statistics show that Vietnamese consumers use only about 1.9GB of cellular data on average each month, much lower than the regional countries of Laos, Cambodia, Thailand and Singapore where the amounts come in between 4.7GB and 8.5GB.

It is somewhat paradoxical as Vietnam is one of the countries with the best 3G and 4G coverage, at 95% of the population.

The reason is that most mobile subscribers are accustomed to using public Wi-Fi regardless of its drawbacks such as unstable quality, limited range and risks of personal information theft, although they agree that 3G and 4G services have far more advantages over public Wi-Fi such as higher speeds, nationwide coverage, protection of personal information and convenience on the go.

The largest obstacle to more widespread use is the high cost. Most mobile users in Vietnam say that the costs of data packages are higher than their average income. Some are even worried that they might incur more charges if their usage exceeds the limit and then have to rely on public Wi-Fi.

In order for Vietnamese mobile users to phase out the habit of using unsecured public Wi-Fi, greater efforts are needed from mobile service providers. Aware of this situation, domestic carriers have already taken action to gradually remove the barriers of data costs so as to attract more customers.

Last month, Viettel, for instance, decided to raise the data limit for its Mimax plan while keeping the price unchanged, helping to reduce Viettel’s data costs to less than VND10,000 per GB, compared to the VND20,000-40,000 it had been previously.

Other carriers also followed suit with Vinaphone updating its Mimax 100 plan from 2.4GB for VND100,000 a month to 12GB for VND120,000.

These moves are expected to help mobile users change their mentality of restricting mobile data usage and form a habit of using mobile data more frequently and comfortably on their mobile devices.

With the current trend, Vietnamese mobile subscribers can anticipate having more mobile data with better quality and more affordable prices.

Source: Nhandan

Vietnam’s HCM City reports 3rd H1N1 fatality

Advertisements

HO CHI MINH CITY, June 26 – A 46-year-old man from Vietnam’s Ho Chi Minh City has died, becoming the third fatality of flu virus H1N1 in the city so far this year, local media reported on Tuesday.

Cho Ray Hospital in the city is now treating seven H1N1 patients, of whom three are in need of respirators, online newspaper VietNamNet reported. Among the seven patients, one is from southern Ninh Thuan province.

Early this month, Tu Du Hospital in Ho Chi Minh City spotted 28 suspected and confirmed cases of H1N1 infection, including 16 confirmed ones.

Vietnam experienced an H1N1 pandemic in 2009, with over 9,000 cases of people contracting the disease and nearly 20 deaths within four months of the year, according to the Health Ministry.

In a tropical country like Vietnam, the bird flu circulates the entire year round, usually reaching several peaks in the rainy season. The H1N1 virus causes pernicious respiratory infection.

Source: Xinhua

WHO backs Vietnam’s new tax proposal on sugary drinks

Advertisements

World Health Organization (WHO) experts have expressed strong support for a new tax on sugary drinks proposed by the Ministry of Finance.

The proposal, which will go into effect in 2019 if passed, will impose a 10 percent special consumption tax on different type of beverages, including sweetened drinks.

While the tax aims to prompt a shift from unhealthy consumption habits, it has been criticized by business representatives and experts who say the industry is already taxed heavily.

The tax proposal comes in the wake of Vietnam being put on high alert over its consumption of sugary drinks, which has skyrocketed over the last 15 years.

The WHO noted that a fourth of Vietnam’s population was already obese or overweight.

Guilermo Paraje, a WHO consultant, said the 10 percent special consumption tax will increase the average price of sweetened drinks in the Vietnamese market by 5 percent, and provide a VND4 trillion ($173.9 million) boost to the state budget.

He further suggested three tax proposals that would increase the tax contribution to VND12 trillion – one liter of sweetened beverages will be taxed VND3,500; VND35 per gram of sugar in every 100 milliliters of a drink; or a 40 percent tax on factory price. All three options will increase average soda prices by 20 percent.

“People will substitute sugary drinks with water or other products, leading to alternative jobs. The industry has also experienced industrialization so there are not many job opportunities in this sector,” Paraje said.

Dr. Jun Nakagawa, WHO representative in Vietnam, said excessive consumption of sugar was the leading cause of overweight and obesity, which are linked to many health risks such as diabetes, heart disease and gout.

Vietnam has added sugary drinks to the list of items to be placed under stricter control and tax regulations, along with cigarettes and alcohol.

The government has banned the sale of soft drinks in all school canteens across Vietnam.

Truong Tuyet Mai, deputy director of the National Institute of Nutrition, said that Vietnamese people are forecast to consume over 5 billion liters of sweetened drinks in 2018, nine times more than in 2000, and the figure is estimated to reach 11 billion by 2025.

The new 10 percent special consumption tax would also accrue to other beverages, including carbonated or non-carbonated soft drinks, juices, flavored water, energy drinks, instant tea, pre-packed coffee and flavored milk.

By Retail News Asia

Vietnam’s Bamboo Airways commits to 20 Boeing aircraft

Advertisements

Boeing Co (BA.N) said on Monday entered into an agreement to sell 20 of its widebody long-haul aircraft to Vietnamese startup Bamboo Airways in a $5.6 billion deal at current list prices – Reuters reports.

As part of the deal, which is yet to be finalized, FLC Group-owned FLC.HM Bamboo Airways has made a deposit in mid-June to reserve the 787-9 Dreamliners, whose delivery is likely to begin from April 2020, through 2021, Boeing said.

Bamboo Airways plans to begin commercial operations next year out of Hanoi.

FLC Group has also signed an initial agreement with Airbus SE (AIR.PA) in March for up to 24 A321neo aircraft.

Reporting by Arunima Banerjee in Bengaluru

VinFast to partner with global auto part suppliers

Advertisements

Vietnam’s VinFast Manufacturing and Trading Company (VinFast), a member of Vingroup, recently organized a workshop in Frankfurt, Germany, with the participation of automobile part suppliers.

Vietnam News Agency reported, the event brought together more than 300 prestigious suppliers from around the world and proved the attractiveness of VinFast’s large-scale automobile production project, affirming the company’s commitment to roll out auto lines of international standards.

To produce high-quality cars that meet international standards, VinFast has paid great attention to seeking capable partners supplying spare parts and components.

At the workshop, the company talked about the potential of the car market in Vietnam, the objectives and visions of VinFast as well as the scale and progress of the project.

The event bring together more than 300 prestigious suppliers around the world. — Photo Vingroup

Vietnam nowaday is emerging as one of the most potential consumer markets in the world, although the car ownership rate of the Vietnamese people is quite low, only 23 vehicles per 1,000 people, while the equivalent in Thailand is 204 vehicles per 1,000 people, and the minimum in developed countries is 400 vehicles per 1,000 people.

However, with rising incomes, estimated at more than US$3,000 per head by 2021, combined with increasingly improved infrastructure and attractive demographic characteristics, it will be the premise for the Vietnamese automobile market’s purchasing power, which is expected to grow strongly in future.

But the country does not have a Vietnamese car brand, and the domestic automobile industry still stands at the import and assembly stage.

Based on research findings and after waiting for the appropriate time, Vingroup decided to invest in the project of producing automobiles and electric motorbikes with an aim to build a Vietnamese automobile brand meeting international standards. It also plans to contribute to the development of a leading auto industry in Vietnam.

As a Vietnamese automotive brand with international vision, VinFast has set a large production target, with an expected capacity of 250,000 cars in the first phase and 500,000 cars in the next phase, becoming the leading car manufacturer in Southeast Asia.

The product portfolio of the company is also extremely rich, including gasoline types (sedan, SUV, hatchback), small electric vehicles and electric buses. VinFast has partnered with many prestigious corporations all over the world, including BMW, Magna Steyr, AVL, EDAG, Pininfarina, ItalDesign, Bosch and Siemens. It has built a team of experienced leaders from the world’s leading companies in automobile production.

VinFast is a leading company in Vietnam with the cooperation of partners in the supporting industry. The company has allocated 70ha of land to Phase 1 of the project in the northern city of HaiPhong city of Vietnam for part supplies and supports maximum efforts in infrastructure and implementation procedures.

According to VinFast, these are the parameters that prove the company will have a large demand for components and spare parts and establish long-term international partnerships.

“VinFast is not only important for Vingroup, but also for Vietnam, so we are working hard together with our partners for the successful implementation of this project,” said James DeLuca, general director of VinFast.

“We also recognize the indispensable role played by suppliers in this unique project and believe that the essential foundation for the two sides to go further is based on the relationship and cooperation. Therefore, we hope to further strengthen the relationship between the two parties and hopefully after the seminar in Germany, the suppliers will become part of the VinFast family,” he added.

At the workshop, international suppliers expressed great interest in the Vietnamese automobile market, particularly in the VinFast project, and appreciated the scale of production as well as the historical mission of the project.

According to industry representatives, with the vision of large-scale production and international standards, VinFast will have many potential customers. Some suppliers have expressed their desire for a long-term cooperation with VinFast through setting up of component factories in the project complex in Hai Phong city, Vietnam

UN to pick Vietnam as training site for peacekeeping forces

Advertisements

Vietnam is among four countries in Southeast Asia selected to be the training sites for United Nations (UN) peacekeeping forces, with the first training course to be held there at the end of this year, Vietnam News Agency reported.

The decision was announced by the United Nations’ Field Support Department yesterday following its inspection of training sites for the UN peacekeeping forces in Asean member countries.

The other three countries are Cambodia, Indonesia and Thailand.

Representatives of Asean countries welcomed the UN’s decision to open peacekeeping training courses in Southeast Asia and congratulated Vietnam on being the first country in the region to host the course.

All training facilities for peacekeeping forces in Vietnam will meet the international standards.

The selection of Vietnam as the first training place among Asean nations demonstrates the UN’s high evaluation of Vietnam’s commitments and contributions to UN peacekeeping activities.

Vietnam is preparing to send a second-level field hospital to South Sudan.

To date, the country has sent 20 officers to work at the UN Multidimensional Integrated Stabilisation Mission in the Central African Republic and the UN Mission in South Sudan, including a female officer, after nearly four years of joining the UN peacekeeping operations.

Five sectors of opportunity in Vietnam

Advertisements

Poised to become a developed nation by 2020, Vietnam is an open economy with trading flow of US$340 billion. The country’s foreign direct investment (FDI) sector accounts for approximately 22 per cent of its economy. PwC highlights five emerging sectors in the country with the greatest potential for growth and investment.

1. Business process outsourcing (BPO)
Information and communications technology (ICT) is a booming sector in Vietnam. In 2016, its revenue was estimated at US$59.9 billion. Within the ICT sector, business process outsourcing (BPO) is an industry that is poised for growth due to the country’s growing pool of skilled talent.

40,000 IT graduates enter the job market every year

96.8 per cent literacy rate for the working population (15-60 years)

English is encouraged as a working language

Tips on getting started
Set up, partner or acquire

Take advantage of government incentives available. For example, a preferential 10 per cent corporate income tax rate for 15 years is available for new investment projects which regularly employ more than 1,000 employees, and perform certain IT activities (including service of BPO). Partnering or acquiring local operations hungry for growth is another possibility.

Extend business services to support manufacturing activities

Vietnam is an emerging regional manufacturing hub and is ranked second in Asean in the sector, notably electronics. Major electronic groups the likes of Samsung, Intel, Panasonic and Microsoft are located there – an opportunity for companies in Vietnam to raise the value of their manufacturing operations to support services such as IT, logistics and e-commerce.

Potential hubs for BPO

Da Nang, Hanoi and Ho Chi Minh City are ideal locations for BPO operations. All three cities also offer special high-tech parks: Cau Giay Concentrated IT Park (Hanoi), Quang Trung Software City (Ho Chi Minh City) and Da Nang Hi-Tech Park (Da Nang). These parks house technology infrastructure (e.g. fibre optic internet), human resource training centres and many software and IT firms.

2. Solar and wind energy
Vietnam’s major sources of electricity generation are coal, hydropower and gas turbines. But there are issues in sustaining these sources, and the government plans to nearly triple renewable energy’s share of total electricity production by 2030. The country has favourable geography and climate to harness solar and wind energy.

67 per cent of land suitable (220,000 sq km) for solar photovoltaic system

Several coastal and mountainous regions for wind turbines

2,000 to 2,500 hours of sunshine annually – one of the highest in the world

5.5ms to 7.3ms average wind speed per year, suitable for modern wind turbines

Tips on getting started
Choose an appropriate investment method

Foreign investors may choose to either set up a 100 per cent foreign-invested company, enter into a joint venture, or a public private partnership in the form of build-operate-transfer projects (BOT). While BOT is most common in this sector, renewable energies may require a different approach due to the highly technical capabilities needed. Partnering with local players is an effective way for foreign companies to penetrate this industry by offering technology, expertise and capital.

Location

Vietnam’s southern region is suitable for solar projects due to its higher solar irradiation levels and relatively flat terrain. The coastal areas in the south central region and the mountainous regions of central Vietnam see higher average wind speeds – a more feasible option for wind projects.

3. Luxury hotels
Vietnam’s tourism revenue reached US$9.3 billion in 2016 and is forecast to double by 2027. Within tourism, the upscale and luxury hotel industry – those rated four stars and above – are relatively untapped and have the greatest potential for investment.

Tips on getting started
Joint ventures and partnerships

The high-end hotel market is mainly dominated by international brands, such as InterContinental Group and AccorHotels. Joint ventures with local developers are the typical mode of entry for foreign investors. Under such agreements, the local firms employ an international operator (e.g. Hilton Group) to manage their assets and land banks.

Tourist hotspots

Hanoi and Ho Chi Minh City are the main hotel markets as they see the highest number of tourist arrivals. There is plenty of capacity for more – both cities have lower numbers of new hotel rooms compared to neighbouring Bali, Jakarta and Manila despite seeing comparable tourist arrival numbers last year.

4. Modern agribusiness and food
Although Vietnam’s stature as a global agricultural exporter has increased, the quality of the sector’s growth in terms of productivity and value add overall remains low. Agriculture accounts for 20 per cent of exports – a large agriculture base with modernisation potential.

Tips on getting started
Bridge the gaps

The current gaps in Vietnam’s agribusiness industry – low yield, labour intensiveness and reliance on relatively inefficient, traditional techniques represent opportunities for companies to capture the market by introducing inputs or processes that can facilitate efficient agriculture.

Forge partnerships

Partnering with local companies is another way to make headway into the market by bringing expertise and new technology to the table.

Introduce higher value added products into the market

There are opportunities in the sector for the production and distribution of premium agriculture and food products. Japanese company Kushima AoiFarm has begun production of Japanese sweet potatoes in Vietnam. With the aid of production technology from Japan, the first-year output is projected to be 1,250 tons.

5. Retail banking
Vietnam’s banking and financial services sector is relatively undeveloped but boasts potential. Within this sector, there is room for growth in retail banking, in particular payment cards and wealth management services. With a mobile penetration rate of 49 per cent in 2016, the country has a good base to make the transition to a cashless society.

Tips on getting started
Invest in domestic retail banks

The government is increasing the limits of foreign ownership in Vietnamese banks. Additionally, consumer finance also provides good opportunities, having been the fastest growing sector over the last few years.

Supply and develop IT systems to support e-payments and digital banking

Banks will need to invest more in their IT systems to support the growth of e-payment as their IT infrastructures are not expanding as fast as the e-payment market.

Invest in FinTech

Foreign investors have been investing in Vietnam’s FinTech companies as they are positioned to capitalise on digital payment growth. In 2016, the sector raised a total of US$129 million, accounting for 63 per cent of all start-up deals in the country.

Argentina beats Nigeria in closing minutes at FIFA World Cup 2018

Advertisements

ST. PETERSBURG, Russia — Lionel Messi and Argentina finally came alive at the World Cup.

Messi scored an exquisite 14th-minute goal to give the two-time champions the lead in a must-win game against Nigeria on Tuesday, but it wasn’t until Marcos Rojo’s 86th-minute strike that Argentina was assured of a place in the round of 16 with a 2-1 victory.

Victor Moses scored from the penalty spot in the 51st minute for Nigeria, putting Argentina in danger of being eliminated without winning a match in Russia.

It took an unlikely goal by Rojo — a center back — to save Argentina with a cushioned volley into the corner.

The win gave the Argentines second place in Group D and allowed the soccer-mad nation to forget about the 3-0 loss to Croatia last week that sparked days of soul-searching within the squad and back home.

Argentina will play France in the last 16 in Kazan on Saturday, keeping alive Messi’s quest for a first world title. He might have retired from international soccer for a second time — and for good this time — if it wasn’t for Rojo’s goal.

Messi’s teammates poured off the bench to celebrate with him after the final whistle, forming a circle around him. Messi exchanged a long hug with teammate Javier Mascherano, who clinched him tightly.

While Gonzalo Higuain cried nearby, Messi clinched his fist as he turned toward the Argentina fans.
Messi’s name adorned the back of most of the Argentina jerseys that dominated St. Petersburg ahead of the game, and received the biggest roar when the teams were read out.

He kicked the ball out of play with his first touch, was tackled with his next, but then he started to put on a show.

Messi’s 65th international goal owed as much to Ever Banega’s long, driven pass over the defense as the forward’s exquisite control on his left thigh, another touch with his left foot, and then a cool right-footed finish into the corner. As Messi fell to his knees and pointed his fingers upward in celebration before being mobbed by teammates, Argentina great Diego Maradona — sitting in a corporate box inside the stadium — placed him arms on opposite shoulders and looked to the sky.

Messi, who later hit the post off a free kick, and the recalled Banega ran the game in the first half for Argentina. The team’s biggest problems arose whenever Mascherano lost possession in front of his own defense.

And it was Mascherano who gave away the penalty with a pull on Leon Balogun at a 49th-minute corner. Moses converted — and marked the goal with a somersault — to put Nigeria back in control of the race for second place in the group.

Argentina was facing finishing a World Cup without a win for the first time since 1934, but instead they are headed to the knockout stage.

GROUP DYNAMICS

Nigeria was four minutes away from advancing to the knockout round of a World Cup for the fourth time. As it finished, the African nation ended up third in the group — a point behind Argentina.

Argentina has four days to prepare for its last 16 match against France. It is the first game of the knockout stage.

KEY TO SUCCESS

Messi delivered his best performance of the tournament, with his goal allowing Argentina to take early control of the game.

Yet the standout player might have been Banega, who was recalled to midfield after being on the bench for the first two games and impressed with his work rate and range of passing.

By 

Local game firms at risk of being shut down

Advertisements

The closure of game firms has increased as the number of gamers has fallen. Many gamers have shifted to play free games or international games.

Nguyen Ngoc Bao, director of VTC Mobile, said the suspension of payments via scratch cards have caused problems to both network operators and digital content service providers.

At the time when telcos began cutting payment channels, the revenue of digital service providers dropped by 80 percent. Now the revenue is 50 percent lower.

Currently, gamers can only make payments with game cards or via banks. However, the coverage of the two payment methods is not as large as mobile scratch cards.

Scratch cards are considered an essential service. As every family has several mobile phone subscribers, it is convenient to buy and make payments via scratch card.

Meanwhile, not all families have gamers, and it is more difficult to find places to buy game cards than places to buy scratch cards. As the demand for game cards is not as large, there are not many game card sale agents.

Scratch cards are considered an essential service. As every family has several mobile phone subscribers, it is convenient to buy and make payments via scratch card. 

“Some games are at risk of being shut down as they have lost a big amount of gamers,” Bao explained. Other gamers are no longer interested because there are fewer gamers and fewer competitors.

All the three largest telcos, VinaPhone, MobiFone and Viettel, said the revenue from scratch card sales in April dropped by 80 percent after they suspended payments via scratch cards for services not provided by them, including digital content service.

The decision on suspending the payments via scratch cards was released after a gambling game case was discovered by the Phu Tho Police. It appears that the case has affected the game industry.

Minister of Information and Communication Truong Minh Tuan said the ministry will find a solution which allows payments via scratch cards for legal services, including pay-TV services, and prevent payment for illegal services.

At a conference held on May 22, Le Quang Tu Do, Deputy Director of the Department of Radio and Television and Electronic Information, said MIC, together with the State Bank and relevant ministries, have gathered to discuss solutions to the problem and ease difficulties for game firms.

However, while waiting for new solutions to be found, game firms still have to observe current regulations.

Decree 25 stipulates that telecommunication scratch cards are used to make payments for telecommunication services. There is no provision saying that tscratch cards can be used to pay for non-telecom services. If the scratch cards are upgraded into multi-functional cards, the current regulations will need amendments.

By Thanh Lich, Vietnamnet

Exit mobile version