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
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.”
Vietnam’s strong economic momentum is expected to continue in 2018, aided by the reform drive, higher potential output, the global recovery, and commitment to macroeconomic and financial stability, the International Monetary Fund said Tuesday.
Concluding the Article IV Consultation with Vietnam, the Executive Board of IMF said despite a mild tightening in credit growth targets and a neutral fiscal stance, the economy is set to expand 6.6 percent in 2018.
According to a report by Business Insider, inflation is forecast to rise to just under the 4 percent target, led by higher oil prices and gradual increases in administered prices.
However, the board cautioned that financial buffers are still thin, macroeconomic policy frameworks remain inflexible, complicating the management of shocks. The strong economy provides an opportunity for more ambitious reforms, the IMF observed.
Further, the board called for monetary policy tightening in order to sustain macroeconomic stability.
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. Nikkei reports.
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.
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.
Vietnam has updated national defence legislation providing guidance for a range of related policies, regulations, and initiatives including efforts to modernise the country’s state-run defence industrial base.
The Law on National Defence 2018 will be formally enacted on 1 January 2019 and replaces legislation introduced in 2005. This 2005 law underpinned Vietnam’s 2009 Defence White Paper (DWP 2009) and the 2018 amendment is similarly expected to be followed by a new Defence White Paper in the near future. Janes reports.
Through comments provided by Lieutenant General Nguyen Duy Nguyen, head of the department of the civil self-defence and militia forces of the Vietnam People’s Army’s (VPA’s) general staff, the Vietnam Ministry of National Defence (MND) recently released some details about the new legislation.
Citing comments by Lt Gen Nguyen, the MND said the 2018 defence law amalgamates a number of directives and regulations that were introduced after the 2005 legislation was enacted. The 2018 law also provides requirements for the VPA to respond to what Lt Gen Nguyen said were “new situations” including emerging non-conventional threats such as cyber and information warfare.
He added that in light of these threats the defence law also includes updated policies on science and technology development and defence industrial modernisation. A related priority, said Lt Gen Nguyen, is to position Vietnam to develop Industry 4.0 capabilities – such as artificial intelligence and robotics – in the defence domain.
Other new provisions, he said, outline the roles of the VPA and its associated navy and air force divisions, a plan to reduce the number of businesses owned and operated by the VPA, and the expected role of the VPA in contributing to national development.
Việt Nam jumps two ranks on the Global Innovation Index 2018 (GII) to place 45 out of 126 economies in the GII report published on Wednesday.
With this rise in the rankings, Việt Nam has leapt 14 ranks compared to 2016.
The sub-indices in which the country saw the greatest ranking improvements are in Institutions, going from 87 to 78; Business Sophistication from 73 to 66 and Creative Outputs from 52 to 46. Gross Expenditure on Research and Development by businesses jumped from rank 36 to 13. Collaboration between university and industry also rose from 76 to 59.
According to GII, the core of the annual report consists of a ranking of world economies’ innovation capabilities and results. A higher ranking in the report means better economic development and richer innovation-prone environments.
This year’s theme is ‘Energising the world with Innovation’. It is published by Cornell University, INSEAD and the World Intellectual Property Organization, in partnership with other organisations and institutions.
The GII is computed by taking an average of the scores in two sub-indices, the Innovation Input Index (Institutions, Human Capital and Research, Infrastructure, Market Sophistication and Business Sophistication) and Innovation Output Index (Knowledge and Technology Outputs, and Creative Outputs).
A looming US-China trade war is only a small component in a much larger, more important development: Beijing and Washington’s intensifying geopolitical rivalry, says in an article from CNA
SINGAPORE: Disputes about global trade practices have reached a tipping point.
The Trump administration has just rolled out new tariffs on US$34 billion of Chinese goods, and Beijing has responded, in kind, with retaliatory tariffs. It’s looking more and more like a series of tit-for-tat retaliatory tariffs are going to disrupt global value chains.
But a looming US-China trade war is only a small component in a much larger, more important narrative: Beijing and Washington’s intensifying geopolitical rivalry.
Technological innovation and intellectual property are now at the centre of this competition. The world is witnessing the early stages of a digital arms race — some would even call it a new Cold War.
The inconvenient truth is that policymakers in both Washington and Beijing have linked technological capability directly to matters of national security, and, consequently, companies will need to start preparing to rethink how they do business around the world.
THREE EMERGING TRENDS
Three key trends are emerging from the Sino-American technology war.
First, there will be an increase in export controls, export licensing and sanctions — aimed at individuals, companies and entire industries. This will cause non-compliant, black-listed parties to be excluded from business ecosystems and strategic partnerships.
There will be extensive collateral damage throughout supply chains when companies violate any of these rules. There will also be an increase in blocked mergers, acquisitions and licensing deals in the tech sector. This will be disruptive to existing value chains.
Second, global businesses will need to localise operations. Unilateral policy measures and non-tariff barriers focused on “national security” will push enterprises to accelerate the localisation of operations.
This transformation is already underway as businesses leverage automation, robotics, 3D printing and artificial intelligence (AI) to meet consumer demands in specialised and rapidly evolving local markets. Data localisation laws regulations will also influence new operational decisions — especially in emerging markets.
President Donald Trump’s announcement of China tariffs brings the world’s two largest economies to the brink of all-out trade war. (File photo: AFP/NICHOLAS KAMM)
Third, new innovation clusters will emerge – dynamic innovation and production ecosystems will emerge and will be ring-fenced to protect key stakeholders.
Only entities that have been vetted to meet specific requirements, increasingly regulatory, will be allowed to play in these sandboxes.
In Asia, so-called smart-city locations like Singapore – which, among other things, boasts good governance attributes — will become increasingly attractive as new innovation clusters.
BLOCKING TRADE IN STRATEGIC GOODS
The ZTE debacle provides a microcosm of the kind of business environment facing multinational businesses. ZTE’s violation of US sanctions resulted in massive monetary penalties, a temporary revocation of its US operating licenses and the denial of access to US technology.
There was extensive collateral damage to ZTE’s extended business ecosystems. Qualcomm, Google, Acacia Communications and host of small first and second tier suppliers were adversely impacted by ZTE’s US technology ban.
The US Commerce Department is currently looking into expanding the list of “strategic trade” items.
“Strategically sensitive” parts, components and technology require businesses to methodically screen buyers and down-stream end-users, as well as trace the movement of thousands of parts, components and widgets throughout value chains. Achieving this kind of supply chain traceability is costly and complicated.
As export licensing requirements and punitive measures increase for US technology, global companies will be confronted to exposure to penalties and catastrophic stoppages of business.
Data is considered a “strategic good.” Sending a simple email, text message or data transmission can be classified as an illegal export, particularly if sent to a denied party or an entity on a sanctions list.
This means that companies working in research and development communities — for example, in partnerships with academic institutions, start-ups and open source networks — could violate export controls by sharing information with specially designated foreign nationals.
Data privacy is another hot button. Ant Financial, of the Alibaba e-commerce group, was recently blocked from buying MoneyGram, the American remittances company, on the grounds that the private data of millions of US citizens would be compromised in the hands of a Chinese company.
This rationale will lead the Committee on Foreign Investment in the US (CFIUS) to block an increasing number of acquisitions, mergers and license agreements between Chinese and US firms. CFIUS recently blocked Chinese telecom behemoth Huawei from selling equipment to AT&T the US telephone company.
Beyond simple privacy concerns, the National Security Agency, the FBI and other US intelligence agencies have proclaimed that high-tech equipment made by Chinese firms would pose a cyber security and espionage risks to the US government and American consumers.
This puts Beijing’s “Made in China 2025” plan, which is funnelling hundreds of billions in subsidies to high tech firms, directly in Washington’s firing line. Vulnerable sectors include robotics, AI, autonomous vehicles, aerospace and 5G networks technology.
TREND TOWARDS LOCALISED PRODUCTION
Even as increased tariffs are causing companies to think about moving manufacturing and sourcing operations to new locations, the need to manage non-tariff measures regarding technology controls will leapfrog tariff planning.
Regulatory delays, licensing mishaps and mismanagement of buyer-seller relationships, all from an export controls perspective, are more damaging to global businesses than tariffs.
In a trade war with the US, China has other weapons beside tariffs to cause damage including hitting Boeing which sells a quarter of its planes in China AFP/Daniel SLIM
By shortening supply chains and moving production activities within key markets — many of which are in the growing megacities of Asia — companies are seeking to achieve greater proximity, access and coordination with localised contractors, sub-contractors and strategic partners. This makes regulatory risk management easier and lowers operational costs.
Industry 4.0 and digital innovation is already driving the trend towards localisation. Global firms are responding to demand-driven, highly customised local markets by leveraging new digital technology.
3D printing, e-commerce platforms and new collaborative networks are leading to new business models that favour more agile local supply chains. These new value networks are increasingly replacing traditional offshore global supply chains.
Other non-tariff barriers around technology controls will accelerate the trend towards localised production. In Asia, an increase in data localisation laws are forcing global firms to deal with the fragmentation of data flows and supply chains — Vietnam, Indonesia, Malaysia, Brunei, China, the Philippines and Thailand all have some form of data localisation laws that are in place or are under consideration.
NEW TECH CLUSTERS
An increase in both American and Chinese tech regulations — such as Beijing’s recent blockage of chip sales by Micron, the American firm — will lead to the emergence of specialised technology clusters around the world.
These clusters will be essential for attracting all the right elements needed in a productive and innovative technology ecosystem, as well as keeping out the wrong, non-compliant elements.
The Singapore Smart-City model provides a compelling example.
The city-state’s policymakers have succeeded in establishing benchmarks in all the key areas: World-class infrastructure and logistics, strong rule of law that seeks to emphasise transparency and good-governance standards, an emphasis on human capital development and skills, open markets and participation multilateral free trade agreements.
These attributes will result in fully ring-fenced business ecosystems, where only firms that have been vetted for, for example, US technology licensing and controls, will participate.
Excluded entities, many of which could be Chinese firms, will seek to form their own clusters, most likely in China. Other firms wishing to escape the long shadow of American sanctions and technology controls may choose to migrate their activities to a Chinese dominated technology cluster.
The effects of a US-China geopolitical rivalry will be far-reaching. Tariffs will disrupt and re-organise global value chains, but companies need to prepare for the much more pervasive effects of a Sino-US tech war.
By Alex Carpi
*Alex Capri is Visiting Senior Fellow with the Department of Analytics & Operations at NUS Business School. The opinions expressed are those of the writer and do not represent the views and opinions of NUS.
Problems about coastal land management were discussed at the Danang People’s Council meeting on July 10.
Deputy Phung Phu Phong said tourism projects were destroying the coastal forests which would badly affect the city’s storm prevention ability. Public accesses to the beaches has also blocked and had stirred anger among the residents. Lax management also leads to violations. Many projects have operated differently from their registered intention.
Phong suggested strict punishments to violators and the recovery of land that have been used for wrong purposes or not in accordance with the city urban planning.
Deputy Truong Minh Hai said they should review the project appraisal and land leasing processes. The city authorities should compile the violations to submit to the government solutions to help firms and improve the administrative system.
Nguyen Ngoc Tuan, chairman of Danang People’s Committee, said they were reviewing the coastal projects, especially the stagnant projects as lax management might lead to unbalanced eco-system and more severe climate change.
The city is also recalling 11 projects and turning them into public parks and beaches.
Statistics from Danang People’s Council show that there are 37 hotel and resort projects along Hoang Sa and Vo Nguyen streets. 19 projects have been completed and gone into operation, five others are under construction and 13 projects are behind schedule and haven’t started yet on Vo Nguyen Giap and Truong Sa streets.
Vietnam stocks slumped 2% to an eight-month closing trough White Singapore shares snapped two straight sessions of gains on Wednesday with financials leading the decline.
Broader investor sentiment was low as US threats of tariffs on an additional US$200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war. Reuters reported.
Vietnam shares extended losses into a third session with financial services provider Vietcombank closing 3.6% lower.
Singapore’s FTSE Straits Times Index closed 0.8% lower, with Oversea-Chinese Banking Corp and DBS Group Holdings shedding 2% and 1.1%, respectively.
“If overall regional and China-centric trade flows decline, the Singapore economy will likely take a hit due to its dependence on trade and manufacturing activities,” OCBC Bank said in a note.
Thai shares snapped three consecutive sessions of gains and closed 0.4% lower. PTT Public Co fell 0.5% and Airports of Thailand dropped 1.2%.
Philippine shares rose 1.4% to a one-week closing high with industrials at the helm.
“Despite Philippine’s trade exposure to China and US being relatively high, given that a majority of the country’s growth is fuelled by domestic consumption, it is less susceptible to trade fluctuations as compared to other ASEAN countries,” OCBC Bank added.
SM Investments climbed 4.2%, while Ayala Land gained 2.1%.
Malaysian shares erased early losses to close marginally higher.
Earlier in the day, the central bank kept its key interest rate at 3.25% at its first policy meeting under the newly appointed central bank governor.
Indonesian shares closed 0.2% higher with Astra International being the biggest boost.
A corner of the downtown area in HCM City. HCM City plans to cease the construction of high-rise apartment buildings in the downtown area. – VNA/VNS Photo
HCM CITY — HCM City plans to cease the construction of high-rise apartment buildings in the downtown area while focusing on building apartment complexes along major public transport routes in Districts 2, 9 and Thủ Đức – Viet Nam News reports.
In the draft housing development programme of the city for the period of 2016-2025, the city would stop high-rise buildings in District 1 and 3. In other districts such as 4, 5, 6, 8, 10, 11, Tân Bình, Tân Phú, Phú Nhuận, Gò Vấp and Bình Thạnh, the city would focus on upgrading and completing on-going projects and renovating old apartment buildings, which were built before 1975.
In districts 2, 7, 9, 12, Thủ Đức and Bình Tân, the city would give priority in developing apartment buildings and complexes along the public transport routes. Social apartment buildings would be in the list of development.
In suburban districts of Củ Chi, Hóc Môn, Bình Chánh, Nhà Bè and Cần Giờ, the city would prioritize the development of housing projects in townships and rural residential areas connecting with the main roads.
The city would focus on creating a land fund for social housing projects for low-income earners in the period of 2021-2025. It would also launch favourable policies to form new residential areas in order to gradually reduce the population in the inner city.
In the period 2016-2020, the city will strive to build 20,000 social houses, including 10,000 apartments for low-income people and 10,000 apartments for resettled people. There would be 35,000 accommodations for workers and 6,750 for students.
From now to 2020, the city will organize bidding for investors, prioritising the implementation of high-rise buildings along major public roads located in six urban districts.
At the same time, the city will encourage the development of low-cost commercial housing and rental housing as a way of curbing the illegal construction of houses in suburban areas.
The city would issue bonds to mobilize capital for social housing development, especially social housing for rent.
Director of the Department of Construction Trần Trọng Tuấn stressed that the development of housing must align with the development of technical infrastructure, social infrastructure and create land funds for public transport and parks.
He said the department will coordinate with the city’s Labour Federation and the Department of Labor, Invalids and Social Affairs to review the housing needs of workers in industrial zones.
Based on the review, the city will plan to build rental accommodations for workers
Vietnamese police discovered a large number of durians immersed in suspected chemicals of unknown origin at a local business last week.
During an unexpected inspection on July 6, authorities in Dong Nai Province, a neighbor of Ho Chi Minh City, found several workers painting a yellow paste onto the stems of durians at a fruit storage facility owned by Nguyen Thanh Tam, a local trader.
The color was used to give durians an appearance of freshness.
The painted fruits were then soaked in a bucket of what police officers thought as chemicals, before they were dried on shelves and expected to be labeled and packaged for sale.
Police seized nearly 14 tonnes of supposedly adulterated durians contained in over 800 boxes.
They also found 20 bottles of chemicals, around 30 kilograms of labels printed in different languages, and more than ten bags of yellow powder.
Local authorities are examining the samples to determine whether the durians had been contaminated with any noxious substances at the facility.
Technology has revolutionized just about every industry and Vietnam’s motorbike taxis are no different. Here’s how xe ôm (motorbike taxi) drivers have adapted to this ever-changing market, shifting from local customers to a city-wide network of riders.
Traditional xe ôm culture
The motorbike taxi has been a mainstay in Vietnamese communities for decades. In urban areas there was at least one on almost every street corner. They waited for regular customers to find them, and often napped during the hotter midday hours. They were essentially setting up shop, and drivers typically staked claim to valuable, high-traffic areas where potential customers could easily find them, like schools, banks and hospitals.
While some customers called their favorite drivers, most people simply walked to where they knew they would find a driver waiting. It was low-tech, but it worked well enough for many years. For drivers, however, this meant that most of their day was spent waiting, hoping one of the people who happened by would need a ride. It was an inefficient use of time – like fishing with a single line instead of a net – but now they have the biggest net of all: the Internet.
Ride-hailing apps
In November 2014, Grab forever changed the world of motorbike taxis in Vietnam by connecting riders to a network of drivers with their GrabBike service. The advantages were evident right away: drivers would be available to customers over a much larger area, meaning much less downtime. Customers had price estimates, route maps and the names of their drivers should anything inappropriate happen.
“The price is better with Grab,” said Ms.Lương, a regular customer who lives in Ho Chi Minh City. “For a xe ôm, sometimes I pay double for the same trip. And I think it is much safer to use Grab, especially for women, because you have their name and can report the driver.”
GrabBike has grown at an astounding rate in Vietnam, from 100 drivers when it started to over 50,000 now – but some traditional xe ôm drivers are fighting back against the tide of change.
As the popularity of ride-hailing apps like Grab and Uber (now shut down) grew, traditional xe ôm drivers found themselves being squeezed out of the market. Their profession had been unattractive for many people because of the long hours and unstable income, but now thousands of new drivers are using these new ride-hailing apps to make a bit of extra income outside their normal jobs – and these new drivers don’t even need to know the layout of their area, because the map tells them where to go, making one of the main advantages that came from years of xe ôm driving obsolete almost overnight. Unfortunately, some groups of traditional xe ôm drivers resorted to violence to stake their claim to certain locations, even attacking people wearing Grab uniforms. Several drivers who work for ride-hailing apps have been hospitalized, and brawls regularly make the news.
Growing pains
Violence and reticence to change aren’t the only problems. Drivers – both traditional and digital – say that because of the low fares and high commissions charged by ride-hailing apps, it’s difficult to make a liveable wage from driving a motorbike taxi.
“I drive Grab nights and weekends,” said Mr.Hiệu, who works in Ho Chi Minh City. “It’s good for a second job, but I don’t think I will do it full-time. There are many drivers, so a lot of time is waiting for customers. And in the day, when traffic is very bad, you go very slow and don’t make a lot of money.”
Some traditional drivers who made the switch to work with a ride-hailing app have said they now make a small fraction of what they used to earn. Drivers in Hanoi and Ho Chi Minh City recently protested when Grab and Uber tried to raise the commission percentage. But despite the growing pains, it’s clear that ride-hailing apps are here to stay in Vietnam.
There are still traditional xe ôm drivers, especially in touristy areas, but ride-hailing apps now dominate. As of April 2018, Uber ceased operations in Southeast Asia, leaving Grab as the only widely used choice for both drivers and customers – which is why they have 95% market share for 3rd party ride-hailing apps in the region. But not for long, though, as Indonesia-based Go-Jek has confirmed they are looking at expanding into Vietnam in the near future. This competition threatens to lower the incomes of drivers, but it will also allow them to have a choice of employer. With so much flux in the Vietnamese ride-hailing market, it remains to be seen how companies will adapt to retain experienced drivers. For riders, however, it has never been easier to travel in Vietnam.
European firms continue to be optimistic about the business environment in Viet Nam and expect that the EU-Viet Nam Free Trade Agreement will soon come into effect – Dtinews reports.
The information was released in the European Chamber of Commerce in Viet Nam (EuroCham Viet Nam)’s latest Business Climate Index (BCI) in the second quarter of 2018.
The BCI score in the first quarter reached 78 points, one point higher than the previous one.
However, the percentage of respondents rating the business situation as excellent dropped by nearly 10%, with an increase of 7% in respondents describing the situation as good. Negative responses were at almost the same level as in the fourth quarter of 2017.
More respondents showed their confidence of a stable and continuously improving macroeconomic scenario in Viet Nam with a 9% increase, while those expecting no change in the next quarter increased by nearly 10%.
Only 1% supposed that inflation will threaten their operation.
The number of businesses expecting to maintain the current size of their workforce remained at 40%, while 12% will significantly increase their workforce. Responses indicating intention to reduce headcount a little bit accounted for 5% compared to 10% in the previous quarter.
Meanwhile, 45% of the respondents said they intend to maintain their level of investment, a 9% rise.
EuroCham Co-Chairman Nicolas Audier said that the BCI survey results for the first quarter of 2018 manifested optimistic prospects from European businesses for Viet Nam, however, lower than in 2016.
EuroCham expected that in the upcoming time, the Vietnamese Government will accelerate forces in improving the business environment, especially legal changes which allows Viet Nam to complete its commitments in the EVFTA.
Vietnam’s manufacturing and energy industries could benefit massively from 5G technology.
5G has the potential to generate over US$3 billion in Vietnam says president of Ericsson for the region Denis Brunetti.
Speaking at a press conference on the acceleration of 5G technology and the digitisation of industry held in Hanoi last week, Brunetti said that 5G will be in place in Vietnam in one or two years with the manufacturing, energy and utilities sectors holding the largest potential for 5G.
“We are confident that the pioneers of the 5G path will have a competitive advantage in the global marketplace as their multidisciplinary digital transition is accelerating,” he said. “5G’s most profitable industries are those that can take advantage of high-speed, low latency, and extreme 5G reliability to increase efficiency, improve quality and safety, or create innovative products or services.
“2018 is also the year 5G will launch the market and launch large-scale mobile IoT introduced. These technologies promise new possibilities that have a major impact on human life, and transform industry.
“This change will only take place when authorities and industry leaders strive to reach agreement on the appropriate spectrum, standards and technologies,” he added.
Brunetti also spoke about the fourth industrial revolution, claiming that it will bring about much change for the region’s manufacturing industry.
He said: “The concept of ‘Industrial Revolution 4.0’ will change the way Vietnam manufactures and designs products. Based on the power of large data, high computing power, artificial intelligence and analysis, Industry 4.0 brings the mission of digitizing the entire manufacturing industry.”
He did however stress that the country needed to speed up operations in order to take full advantage.
5G has been promised as the generation that will bring IoT devices and other data-heavy technologies to the forefront of many industries.
The technology offers massive improvements to wearables, smart homes and machine to machine (M2M), placing itself as a remedy for industrial connectivity woes, rather than solely to the consumer.
This comes after Chinese phone-maker and infrastructure business Huawei outlined its plans for 5G in Vietnam earlier this year.
Speaking at the 4G/5G International Conference 2018 in Hanoi in April, Dr. Mohamed Madkour, vice president of Huawei Global Wireless Network Marketing, said: “Huawei is committed to working together with government and telecom operators in this market to drive digital transformation and move towards a 5G future.
“We aim to create an open, collaborative, win-win industry ecosystem to have in-depth conversations, discuss the latest trends and share opinions together.”
Madkour went on to discuss the time it will take to bring about established 5G networks, saying that operators in Vietnam should start investing in building capabilities now, ready for future 5G services.
Madkour also highlighted how the next generation of wireless internet will enrich not only businesses and economic growth, but improve the lives of Vietnam’s population.
The Government has agreed with the Ministry of Culture, Sports and Tourism (MCST)’s proposal to organise the 31st Southeast Asian Games (SEA Games 31) and the 11th ASEAN Para Games (Para Games 11) in Vietnam in 2021.
At a meeting in the capital on July 9, the Cabinet assigned Hanoi as the site city, which successfully hosted SEA Games 22 in 2003, the Asian Indoor Games in 2009, and several other big international sports events.
The ministry’s proposal was made after the SEA Games Federation (SEAGF) informed Vietnam that it would hand over the right to host SEA Games 31 to the country.
The federation said Cambodia, scheduled to host SEA Games 31, proposed postponing the hosting until the next Games in 2023 as it is not ready for the task.
Concluding the meeting, Prime Minister Nguyen Xuan Phuc lauded the substantial determination of the culture, sports and tourism sector, as well as of Hanoi and the relevant ministries and agencies.
Hosting the events is both the responsibility and honour of Vietnam as a constructive member of the Association of Southeast Asian Nations (ASEAN), he said, adding that this is also a chance to promote the Vietnamese land and people.
The leader asked Hanoi to continue to complete infrastructure, set forth a detailed plan on the organisation of the events, and mobilise the participation of different economic sectors in these efforts.
The sports sector should make preparations to reach the highest results at the tournament, he said.
According to the MCST, SEA Games 31 is scheduled to last for about 17 days and Para Games 11, around 11 days, from October to December 2021. About 11,000 athletes and coaches are expected to participate in SEA Games 31, with some 2,100 to join Para Games 11.
