Exploring Vietnam by historical railway

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Ruined by years of fighting and then reborn as the Reunification Express, Vietnam’s historic north-south railway line offers a unique way to see the countryside between Hanoi and Ho Chi Minh City.

“Given the catastrophic damage over a period of three decades, it’s a wonder anything’s working at all, frankly,” admits railway historian Tim Doling.

Sitting in a first-floor restaurant above the busy streets of Ho Chi Minh City, I am at the end of an epic 1600km journey along the train line he is referring to.

“By 1973, all that was left of the south Vietnamese network was something like 47 kilometres of line running out of Saigon, so the whole thing just ground to a halt,” continues the middle-aged British expat, who chronicles the railways of his adopted home.

“Most of the rest of the network was destroyed.”

A slim country which narrows at the centre as if cinched by a belt before bulging at either end, Vietnam appears custom-made for a north-south railway line.

From the hectic capital of Hanoi, close to the border with China, the track hugs the coast of the South China Sea before running slightly inland to leave me in the nation’s largest city, formerly known as Saigon.

A tale of construction and destruction, railways were introduced to this corner of South-East Asia by French colonists in the 1880s, after they envisaged an opportunity to capture the rice market, a project beset by poor planning and financial failures.

Years of fighting against occupying foreign forces during the 20th century, culminating in sustained US bombing and sabotage from local guerrilla soldiers, almost signalled the railway’s demise.

Rebuilding the ruined network quickly became a political priority in the aftermath of the Vietnam War, as a symbol of reconciliation for a nation partitioned during two decades of instability and conflict.

Remarkably, it took less than two years for a rudimentary line to become operational in 1976.

The rebirth of a route originally completed in 1936 resulted in an unofficial renaming, and it is now colloquially dubbed the Reunification Express.

Revered revolutionary leader Ho Chi Minh did not live long enough to see the end to division in his country, but his legacy endures, particularly in Hanoi – where my journey begins.

Affectionately known as “Uncle Ho”, he led the resistance movement against the French during the First Indochina War before proclaiming independence and establishing the Democratic Republic of Vietnam in 1945.

During my visit, red, rectangular posters adorn almost every lamp post to commemorate what would have been his 128th birthday, while seemingly endless lines of schoolchildren queue outside his grey, granite mausoleum, hoping to catch a glimpse of his embalmed corpse which was placed there in 1975, six years after his death.

One of the most scenic sections of the journey. Photo: Gavin White / flickr

I leave Hanoi in the darkness of early evening, boarding an overnight train bound for the imperial city of Hue, some 640km further south. The night is spent in a private air-conditioned compartment, consisting of two bunk beds and a small table by the window, complete with vase of plastic flowers.

Walking unsteadily along a narrow corridor at one side of the carriage as we rattle along the uneven rails, I discover not everyone has it so good. Some passengers squeeze into six-bed segments shared with strangers, while those who have purchased the cheapest tickets have to make do with simple wooden benches.

Following a few bounces on the bunk during the night, sunlight streams through the glass as we chug into our destination. Situated on the banks of the Perfume River, Hue was the capital of Vietnam for almost 150 years.

The UNESCO World Heritage Site is centred on a vast 19th-century citadel, fashioned after Beijing’s Forbidden City and surrounded by a moat and formidable stone walls. It was the seat of the Nguyen Dynasty – the country’s last ruling family – from 1802 to 1945 when the final emperor, Bao Dai, abdicated.

Hue’s citadel is surrounded by a moat and stone walls. Photo: Costante / flickr

Back on board, I discover the mountainous stretch between Hue and the port city of Da Nang is the line’s most scenic.

Standing next to the train door with the window pulled down, I see the partial blur of a railwayman dressed in a smart blue uniform at the side of the tracks signal us on to the winding Hai Van Pass using semaphore.

The train clings to the edge of the cliff, sweeping its way around corners, past secluded coves and deserted beaches while untamed greenery occasionally obscures the misty view of the jagged silhouettes of Da Nang’s skyline on the horizon.

As the altitude drops and we pass through the city, emerald-green rice paddies dotted with the conical hats of agricultural workers gradually take over the landscape, alongside water buffalo and palm trees.

Keen for a quick recharge of my batteries after visiting two cities, I alight for a brief stopover in the beach resort of Nha Trang – notable for the towers of Po Nagar, an eighth-century Cham temple – before completing the route to Ga (meaning station) Saigon.

Po Nagar temple in Nha Trang. Photo: Claudia Schillinger / flickr

The entire journey takes around 30 hours and I am rewarded with a mix of modern skyscrapers, French colonial buildings and more traditional architecture.

At the heart of the city are the red tiles of the Notre Dame cathedral, adjacent to the general post office, designed by Marie-Alfred Foulhoux between 1886 and 1891, though often credited to Gustave Eiffel.

A fusion of gothic, renaissance and French influences, the cavernous, barrel-vaulted hall, is a popular tourist attraction and presided over by a large portrait of the familiar, bearded man whose name the city now bears.

As evening falls, a sunset cruise along the Saigon River provides a different perspective on my new surroundings, before one final stop the following morning takes me around 50km north-west of the city to somewhere considerably more sombre.

Successfully used as hiding spots and supply lines by the Viet Cong during the Vietnam War, a small section of the elaborate Cu Chi tunnels has been preserved to show the harsh conditions endured.

Shuffling tentatively into the darkness, the stifling heat is close to unbearable. Squatting and hunched, my shoulders span almost the entire width of the confined space, while my head is in constant danger of grazing the unforgiving stone ceiling.

Emerging back into the light above ground, I stumble across a colossal pit at the side of a series of narrow jungle paths. The large indentation in the powdery earth is a B52 bomb crater dating back to incessant American air strikes.

Decades of foreign occupation and international interference have left multiple marks on Vietnam’s landscape.

Thankfully, the remarkable railway line running down its spine remains one of them.

Source: Indaily

Japan’s Sojitz buys Vietnam industry leader Saigon Paper

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TOKYO — Japanese trading house Sojitz has purchased Vietnam’s Saigon Paper for about 10 billion yen ($91.2 million), inking a deal to tap the fast-growing demand for cardboard and tissue paper in the Southeast Asian country.

Sojitz acquired more than 90% of Vietnam’s largest maker of tissue paper from the company’s founders. Saigon Paper, which sells tissues under the Bless You brand, also produces toilet paper and cardboard components. Yearly sales top $100 million on production capacity of 40,000 tons of residential-use paper as well as 230,000 tons of industrial paper.

Cardboard demand in Vietnam surged more than tenfold over the past decade, benefiting from the rise of online shopping and the move of textile and electronics production to the country from China. Toilet paper demand quintupled in that time as living standards improved amid annual growth in gross domestic product of about 6%.

Saigon Paper’s founders formed the company in 1997, but now see a need for greater efficiency and capital investment. Sojitz will send six managers from Japan to help revamp the company’s finance and accounting systems. The trading house will consider updating the manufacturer’s production facilities as well.

Sojitz and Saigon Paper will work together on recyclable wastepaper collection from industrial parks, logistics facilities and the Ministop convenience stores that the Japanese company helps operate.

The trading house, which has been expanding operations in Vietnam, aims to raise its papermaking sales in the country around 40% to roughly 18 billion yen by 2022.

Source: Nikkei Asia

Kim Jong Un courts China but finds his economic muse in Vietnam

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North Korea sees Hanoi model as way to win US support and South Korean investment

TOKYO — North Korean leader Kim Jong Un’s flurry of diplomacy continued this week with his third visit to China in as many months. But as Kim briefed Chinese leader Xi Jinping on his historic summit with U.S. President Donald Trump and toured Beijing, analysts could not help but hear echoes of a remark he made earlier this year.

Sitting on a bench with South Korean President Moon Jae-in in late April, Kim had said Pyongyang should follow the example of Vietnam’s economic reforms.

In his meeting with Trump on June 12, Kim extracted a U.S. security guarantee without committing to a detailed scheduled for giving up nuclear weapons. North Korea has declared it intends to abandon its “parallel policy” of economic and nuclear development in favor of a focus on growth, and it is expected to seek sanctions relief and other international help using denuclearization as bait.

Chinese patronage is crucial for making this work. Kim’s visit to Beijing included a stop at an agricultural research facility — a move analysts saw as an acknowledgment of the need to build up North Korea’s food supply and farm sector, which are generally exempted from sanctions.

Still, recalling that comment to Moon, experts wonder whether North Korea will continue to rely on China for development guidance. The remark, which was quoted by South Korea’s Maeil Business Newspaper, raises a couple of “why” questions.

The first is, why follow the Vietnamese model?

South Korean President Moon Jae-in, left, and Kim meet on April 27. Kim was quoted as saying that he wants to emulate Vietnam’s economic reforms. © Reuters

Given the frequency of Kim’s meetings with Xi, plus China’s position as the world’s No. 2 economy and North Korea’s guardian, it would seem natural for Pyongyang to adopt the Chinese development model.

After all, even the “Doi Moi” economic reforms Vietnam launched in 1986 were copied from China’s “reform and opening-up policy” adopted in 1978. The basic idea was to achieve economic growth through the introduction of foreign capital and promotion of exports, while maintaining the Communist Party’s grip on power.

China’s growth has outpaced Vietnam’s. The former’s per capita gross domestic product came to $8,123 in 2016, a 29-fold increase over the previous three decades, while the latter’s grew fivefold to $2,171, according to the World Bank.

A closer analysis, though, reveals other major differences that might explain Kim’s preference for Vietnam’s path.

“China is going too far ahead,” said Junya Ishii, a senior analyst at Sumitomo Corporation Global Research, explaining why Kim sees Vietnam as the country to emulate.

Vietnam has gone its own way in actively seeking free trade agreements. Twelve have already come into force, according to the Asian Development Bank. Though that number falls short of the 17 for China — which joined the World Trade Organization six years ahead of Vietnam — Hanoi, unlike Beijing, does not hesitate to negotiate with advanced countries that demand extensive economic liberalization.

Vietnam’s FTA with Japan took effect in 2009. It is also a member of the Trans-Pacific Partnership, initially led by the U.S. before Trump pulled out, and it is promoting talks with the European Union.

Another key difference is Vietnam’s pursuit of “balanced development.”

Population is a factor. China is home to almost 1.4 billion people, versus fewer than 100 million in Vietnam. The result is a huge gap in the availability of inexpensive labor for export industries, not to mention very different prospects for domestic consumption.

Deng Xiaoping, the paramount leader who spearheaded China’s economic reforms, famously issued an instruction to “let some people get rich first.” Based on this, the government focused on developing Shanghai, Shenzhen and other coastal cities with easy access to overseas markets, setting up special economic zones in these areas.

Vietnam, which still deals with the legacy of its past north-south divide, cannot simply follow China’s approach. While Ho Chi Minh City in the south tends to attract foreign capital thanks to its better infrastructure, the government has made a point of luring electronics, steel and petrochemical companies to the center of the country and the north, where Hanoi is situated.

The opening in May of the Lach Huyen International Gateway Port, the first deep-water port in northern Vietnam, is part of the diversification strategy. The result of the strategy is considerably less economic disparity, compared with China.

China’s Gini coefficient — a measure of income inequality, with a higher number indicating greater disparity — came to 0.422 in a World Bank survey of 158 economies. That gave China the 49th-highest coefficient.

Vietnam’s was 0.348, putting it in 101st place.

Creating industrial hubs in specific locations, as China has done, spurs growth but tends to widen the divide between haves and have-nots. Vietnam has forgone the benefits of such hubs and opted for stable growth instead.

North Korea, for its part, has an even smaller population of 25 million. The Kim regime, despite Trump’s security assurances, could lose everything if uneven development stokes popular unrest. So Vietnam’s preference for bold international moves and meticulous management of domestic issues may appeal to Kim.

Yet, there is another question: Why did Kim, when he met with Moon, feel the need to declare North Korea’s interest in the Vietnamese model?

A veteran reporter for a major South Korean newspaper offered three reasons: North Korea wants to keep its distance from China; it desires close ties with the U.S.; and it seeks investment from South Korean companies.

Regarding the first reason, the reporter said the distrust that developed between China and North Korea in recent years remains despite the successive summits. North Korea is afraid of being swallowed by China economically.

Pyongyang may be hoping that if it shows it is not comfortable leaning on China, the U.S. will step in with support. Here, too, the Vietnamese example is instructive.

Despite their history of conflict, the U.S. became the biggest export market for Vietnamese textiles, like the garments made at this plant outside Hanoi. © Reuters

Although Vietnam and the U.S. fought a war, the relationship has rapidly warmed up since they normalized ties in 1995. For 15 years running, through 2016, the U.S. was the biggest export market for Vietnamese textiles, electronics and other goods.

Due in part to territorial friction in the South China Sea, Vietnam has deepened its military relationship with the U.S., and has even begun to procure weapons from its former enemy.

As for the business angle, Kim would surely like to see South Korean companies invest in the North like they have in Vietnam.

South Korea, which backed the U.S. in the Vietnam War, long stayed aloof from the Southeast Asian country. No longer. Samsung Electronics has the capacity to produce 240 million mobile phones a year in Vietnam and accounts for a quarter of the country’s total export value.

LG Electronics, Lotte Group and other South Korean businesses have invested in Vietnam as well, making South Korea the biggest source of foreign direct investment on a cumulative basis since 2014, surpassing Japan.

During his meeting with Moon, Kim may have referred to Vietnam to plant a seed for attracting South Korean corporate investment.

There are likely to be many more twists and turns on the road to denuclearizing North Korea. But Kim has shown himself to be a shrewd negotiator, and his remark about Vietnam offers hints at how he will seek to maximize economic concessions.

Source: Nikkei Asia

Vietnam’s first major car maker is called VinFast, will debut in Paris

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When people think about things that are made in Vietnam, cars probably don’t even rank as an afterthought, but a Vietnamese consortium known as Vingroup (aka the largest private enterprise in the country) is trying to change that.

VinFast will be the country’s first high-volume producer of cars, and while we have no idea what kind of vehicles the company will be making, apparently we can expect to find out at the Paris Auto Show later this year.

The move to build cars in Vietnam is a big one, culturally, as the country is mostly known as a haven for motorcycles and scooters due to their low cost of ownership and Vietnam’s crowded streets. A shift to cars, if they’re meant to be sold domestically, could radically alter the way the country gets around.

VinFast already has a good start on things, having broken ground on its factory in Hai Phong in September of 2017. While facts are thin on the ground here, the press release from VinFast’s new PR agency PFPR states that:

“VinFast products will share a number of characteristics and values: Vietnam, Style, Safety, Innovation, and Pioneering. Its cars will meet international standards and customer expectations in terms of premium design, quality, dynamics, in-car features and ownership experience.”

Precisely what that means is kind of nebulous, but the international standards bit is interesting. Will VinFast be able to carve a space for itself outside its home country with vehicle exports from China rapidly expanding?

We’ll have to wait till October to find out.

Source: Cnet

VN banks face new wave of technology

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The fourth industrial revolution, or Industry 4.0, has brought about fundamental changes in various fields on a global scale, including in Vietnam. A new wave of technology is also making significant changes in the financial sector, especially in the distribution channel of products and services.

In order to catch up with the trend of development in Industry 4.0, Vietnamese banks have proactively researched and invested in various advanced technologies in order to develop their products, services, and management.

Most prominent is the practical deployment of digital platforms, such as cloud computing, large data analysis, artificial intelligence, and applications, as well as solutions such as biometric authentication, open API, etc., in order to improve their operational efficiency and enhance customer experiences.

According to Deputy Governor the State Bank of Vietnam (SBV), Nguyen Kim Anh, new digital technologies in association with Industry 4.0 will help to transform the traditional distribution channel of products and services from branches, transaction counters, and physical ATMs to digital channels.

It not only helps to create more interaction with customers, but also provides the ability to change the business model, and business process, product and services structure.

With the strong development of Industry 4.0, domestic banks have more opportunities to access and expand the supply of suitable banking products and services to those who do not have accounts in remote areas at a reasonable cost, contributing to promoting national financial popularisation, Deputy Governor Nguyen Kim Anh added.

Many banks have also adopted technology to assess customer behaviours, revenue forecasts, market demand, and risk alerts. Several banks have initially shifted their operations, sales and services towards digitalisation, such as TPBank with Livebank, VPBank with Timo, VietcomBank with digital banking space, DigitalBank, VietinBank with new generation CoreBank and Enterprise Data Warehouse (EDW), MB with ChatBot, a virtual assistant application on social networks.

However, besides the opportunities the banking sector also faces many new challenges. According to Deputy Director of Banking Strategy Institute, Pham Xuan Hoe, the level of capacity, and the quantity and quality of IT staff is one of the major challenges facing the banking system.

In particular, the SBV will face four challenges including electronic money, cross border payments through 4.0 technology and monetary policy; the control of cash flows, liquidity risk and payment security; the IT infrastructure, card standards, data and information connection standards; and institutional capacity to keep up with the boom of digital finance.

Meanwhile, commercial banks will also face challenges such as the financial capacity for IT investment, the transformation of the traditional business model into digital banking, the quality of human resources and the culture of corporate governance.

According to Deputy Minister of Science and Technology, Pham Dai Duong, besides the advantages, there are many risks and challenges as the development of new technologies, such as blockchain, big data, and AI requires the banking sector to make changes in its management model, product structure; or risks related to network security.

The Deputy Minister emphasised that the banking sector is considered one of the active and leading sectors in the application of scientific and technological advances in business management and business.

However, more effort and research are required in order to take full advantage of Industry 4.0. According to member of the Board of the Directors of Vietcombank, Pham Anh Tuan, banks are now able of supporting and serving customers anytime and anywhere, not just through traditional channels such as switchboards and instant messaging, but also via AI using a representative image on mobile devices, virtual-reality applications and three-dimensional holography.

This helps banks to increase interoperability, giving customers the same service experience as is provided by people.

However without in-depth changes, banks may be lagging behind in the race to provide digital experiences to their customers.

Out-dated IT systems with inflexible information structure are hindering the development of the banking sector, he added.

Source: Nhan Dan

Fake degrees in VN causing headaches for employers

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Training establishments confirm that they have discovered five to seven fake bachelor’s degrees a week. All types of degrees can be counterfeited, from driving licenses to foreign language certificates.

Nguyen Van Duong, deputy head of the HCMC Economics University, said there are numerous counterfeited degrees. The school sends documents to employers every week to answer their request to ascertain bachelor’s degrees and discovers five to seven fake degrees.

The school requires graduates to submit foreign language certificates granted by international institutions and always checks the certificates carefully. However, many students still buy fake certificates.

When verifying students’ profiles, an intermediate school (two year training) in Cu Chi district in HCMC discovered tens of fake high-school diplomas and suspected foreign language and informatics certificates.

As the school could not prove the authenticity of the degrees, it had to send dispatches to the training establishments which granted certificates.

HCMC Police recently discovered a gang specializing in counterfeiting degrees on a large scale, seizing many printers, photocopiers, nine boxes of documents, 1,600 stamp samples and 56 counterfeited degrees.

Can Tho University has affirmed that it did not grant a bachelor’s degree in accountancy to NTTD.

Hanoi Industry University affirmed there was no student named NTHT granted a bachelor’s degree No B318973 on July 1, 2013.

Dong Nai University said it did not grant a bachelor’s degree No B127636 to LTTL. HCMC University of Education denied granting a B-level certificate in informatics and English to NTKT in 2017.

Most recently, inspectors of the Ministry of Transport discovered a teacher at a driving training center using a counterfeit driving license.

Many schools update the lists of graduates on their official websites. If employers and agencies cannot find the names of degree holders in the list, the degrees must be counterfeited.

Duong from the HCMC Economics University said the lists of graduates have been made public since 2007. This allows agencies to verify graduates’ profiles easily. If agencies need official answers, the school is ready to give replies in documents.

Pham Thai Son from the HCMC Food Industry University confirmed that the school receives requests to certify degrees every year. The number of counterfeit degrees the school has discovered is not high. In the past, many students submitted counterfeited foreign language certificates.

Since the day the school required certificates granted by international institutions, no fake certificates have been received.

Son said that it is more difficult to cheat agencies and schools now because, with the support of information technology, they can find the truth easily.

Some schools are suspending students using counterfeit certificates for two years.

Source: VNN

Weak Starbucks may allow Trung Nguyen to regain footing

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Vietnamese coffee giant Trung Nguyen may have an opportunity to recover its domestic business as US-based Starbucks has just announced the plan to close 150 stores next year. Maybe some stores in Vietnam will be on Starbuck’s list.
Starbucks may close some stores in Vietnam due to poor performance

The US coffee giant on June 16 officially announced its plan of closing 150 poorly performing company-operated stores next year, about three times as many as it typically closes, according to cnn.com.

According to cnn.com, the company told investors that is expects revenue from its stores to grow by only 1 per cent in the quarter that begins next month, lowering its previous forecast. Its stock slumped by 3.5 per cent in after-hours trading.

“Our recent performance does not reflect the potential of our exceptional brand and is not acceptable,” Starbucks CEO Kevin Johnson said in a statement. “We must move faster to address the more rapidly changing preferences and needs of our customers.”

With the small scale and the low influence in Vietnam, it is forecasted that some stores may be listed among the 150 stores to be closed.

Five years after first entering Vietnam, the number of Starbucks stores is 34, much lower than in other countries, including Thailand (198), Malaysia (190), and Indonesia (147). Starbucks stores in Vietnam also number less than those of other brands, including Trung Nguyen’s 60 stores, The Coffee House’s 80 stores, and Highlands’150 stores.

Furthermore, according to FT Confidential Research’s survey on the most visited coffee chains in Southeast Asia in 2015, Vietnam was the only country where a pretty low proportion of respondents (6 per cent) selected Starbucks, while the US coffee brand led the ranks in other countries.

This data could partly prove that Starbucks’ revenue in Vietnam may not be satisfactory at the time of the survey. Regarding revenue, the representative of Starbucks’ marketing department in Vietnam contacted by VIR refused to comment.

On the topic of closing stores in Vietnam, the representative also said: “We will soon announce official information.”

Paving the way for Trung Nguyen

Starbucks’ unexpectedly weak business operations in Vietnam may pave the way for domestic coffee giant Trung Nguyen to gain back some of the market after its three-year fall-back due to the divorce of chairman Dang Le Nguyen Vu and his wife Le Hoang Diep Thao.

Focusing on high-end coffee products Trung Nguyen Legend and expanding business scale in China may be Trung Nguyen’s direction in the near future.

After five years of retreating from the public, Vu made his first media appearance on June 16 at Trung Nguyen’s latest event to launch the new products of the Trung Nguyen Legend portfolio, including Trung Nguyen Legend Special Edition, Trung Nguyen Legend Classic, and Trung Nguyen Legend Iced Milk Café.

In addition, Trung Nguyen plans to boost the development of the Trung Nguyen Legend Café chain and the E-Coffee grocery chain over the country.

In the context of Starbucks’ unexpected weak performance in Vietnam, Trung Nguyen, with its long years of experience and stable revenue despite the divorce, may be able to regain some of its domestic market share.

Trung Nguyen’s expansion in China will be particularly interesting as on May 24, Trung Nguyen Legend Corporation announced entering an official co-operation with China-based Shanghai Qinzhou Trade Co., Ltd. to distribute G7 instant coffee products in East China, including Shanghai, Hangzhou, Suzhou, and Nanjing, with the revenue target of $1.6 billion. The Chinese coffee market is estimated at $9 billion, according to zing.vn.

In 2016-2017, Trung Nguyen’s revenue in China, including Hong Kong and Taiwan, reached $30 million. It is expected that the revenue in 2018 will hit $100 million.

Source: VIR

Curtain rises on new act of Trung Nguyen divorce

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The long-going divorce drama at Trung Nguyen has just seen the latest dispute erupt over G7 products, drawing in the General Department of Vietnam Customs and other government agencies.

Due to violations of intellectual property rights, Trung Nguyen JSC required the General Department of Vietnam Customs to temporarily halt the export procedures for all G7 products manufactured by Trung Nguyen Instant Coffee JSC’s (Trung Nguyen IC) Bac Giang branch, which is under the management of Le Hoang Diep Thao, the wife of Trung Nguyen’s chairman Dang Le Nguyen Vu.

In addition, Trung Nguyen JSC has also requested the market regulator to stop the domestic sales of G7 products manufactured by Thao.

However, vietnamnet.vn quoted the Department of Market Management as saying that there are insufficient grounds to prove that Trung Nguyen IC’s Bac Giang branch has imitated Trung Nguyen’s G7 brand.

Most recently, Trung Nguyen sent document with the similar argument to General Department of Vietnam Customs. Afterwards, the department has sent a document to the Ministry of Industry and Trade’s (MoIT) Department of Market Management to jointly resolve the issue.

Previously, the dispute between Trung Nguyen Group and Thao, the group’s former deputy general director, had caused a stir again as it has been revealed that the group’s subsidiary—Trung Nguyen Instant Coffee JSC (Trung Nguyen IC)—in mid-2017 sued Thao at the Bac Giang People’s Court for illegally seizing the company’s seals and the Bac Giang branch’s legal documents. Trung Nguyen IC asked Thao to pay a compensation of $75.2 million.

On May 16, Thao rejected Trung Nguyen IC as well as her husband Vu’s accusations. Thao argued that Vu was not Trung Nguyen IC’s legal representative because at the time Vu was the legal representative of Trung Nguyen Group, thus his dual representative positions would have led to a clash of interests and was against the company’s charter.

The dispute exploded in April 2015, when Vu suddenly dismissed Thao from her position as the group’s deputy general director. In a complaint sent to the Binh Duong People’s Court in November 2015, Thao said that in October of the same year Vu organised a management board meeting without her to dismiss her from her positions as the chairman of the board of management and deputy general director.

Thao filed for divorce at the Ho Chi Minh City People’s Court in November 2015. Until now, after nearly three years, the divorce proceedings have yet to end, mainly because of the division of common assets.

Accordingly, in August 2017, the Ho Chi Minh City People’s Court applied urgent interim measures to ensure joint ownership rights over their common assets, which include 93 per cent of Trung Nguyen Group’s tangible and intangible assets, including the subsidiary Trung Nguyen IC.

Source: VIR

Top 50 businesses list shows strength of private sector

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The 2017 list of 50 best performing businesses released by Nhip Cau Dau Tu reflects the return of the enterprises in the fields of banking, real estate, construction and consumer goods. It reflects the performance of the national economy and strength of banking, finance and real estate sectors.

The comeback of commercial banks is foreseeable as banks, after five years of restructuring, have regained strength.

The club of enterprises with billions of dollars of capitalization value has new members, namely VPB of VP Bank and HDB of HCMC Development Bank, while VCB of Vietcombank, MBB of Military Bank and ACB of the Asia Commercial Bank continue to cement their positions there.

According to Thien Viet Securities, Vietcombank, Military Bank and ACB succeeded in the last year because they pursued a business strategy under which risk management is put at the top priority, above the target of making profits.

They are following a ‘financial prudence’ philosophy when designing risk management standards closer to international standards.

Banks’ prosperity has also been attributed to the warming up of the real estate market, while real estate firms have taken full advantage of the favorable conditions to develop their business.

The most outstanding real estate names in top 50 include Vingroup, Dat Xanh Real Estate, Novaland, Phat Dat, Nha Khang Dien and CEO.

The consumer goods manufacturing and pharmacy sectors still have familiar names such as The Gioi Di Dong, Traphaco, Hau Giang Pharmacy, PNJ (jewelry), Masan (consumer goods), Vinamilk (dairy producer) and Sabeco (brewer).

While the first position of the 2016 Top 50 list belonged to a business of the retail industry, the position in 2017 belongs to a representative in the transport industry – Vietjet Air.

With 43 percent market share, and an ROE at a surprisingly high level of 70.3 percent in the last three years, Vietjet Air was the brightest star in the Vietnamese business community in 2017.

The industrial sector has 18 representatives listed in the Top 50. According to Thien Viet Securities, the industry has been growing rapidly thanks to increasingly high demand from infrastructure development. A report showed that loans poured into the sector increased by 22.38 percent last year, higher than the 18.24 percent of the economy.

Nevertheless, as anticipated, no name in the oil and gas sector was found in the Top 50, which reflects difficulties the industry is facing as crude oil prices still hover around $52-55 per barrel.

Source: VNS

Nearly 1 million Vietnamese students show for high school exam

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Students talk after finishing the literature test at Hop Thanh High School in Hanoi’s My Duc District on Monday

More than 900,000 candidates across the country are taking for the National High School Exam on Monday, taking the literature test in the morning and the math test in the afternoon.

According to a report of the Ministry of Education and Training, 26 candidates were suspended during the two-hour literature test for violating exam regulations.

Weather in most of the provinces and cities remained pleasant and smooth traffic helped the students reach the exam hall in time. However, some mountainous provinces witnessed heavy rain, which caused landslides, flash floods and traffic congestion on some roads. This prevented some students from Lai Chau and Ha Giang from reaching exam halls.

Localities have also taken some initiatives to help the candidates reach exam venues on time and to ensure smooth conduct of the exam.

The high school exam will conclude on Wednesday. The marks will be used to determine admission to universities, colleges and vocational schools. Entrance exams in the country were scrapped in 2015.

Candidates will take five tests: math, literature, foreign language, natural science (including physics, chemistry, biology) and social science (including history, geography and citizen education). Except for the literature test, all of the other tests are in the multiple-choice format.

According to Mai Van Trinh, head of the Quality Management Department under the Ministry of Education and Training, to create favourable conditions for candidates, the ministry this year has assigned each locality to chair the high school exam under its instructions. The ministry too has adopted several measures to ensure quality and confidentiality.

Supervisors are not allowed to be present at the classes they have taught. Each exam room has two supervisors — one from a university or college and the other from the provincial department of education and training. The ministry has also strengthened inspection at exam venues.

Regarding the prevention of cheating via high-tech devices during the exam, Trinh said the ministry had collaborated with the Ministry of Information and Communications and the Ministry of Public Security to inform supervisors on how to detect the devices.

He emphasised that supervisors should fulfil their duties during the exam. Any violation by candidates and supervisors would be handled in accordance with the ministry’s regulations, he said. — VNS

Source: Vietnamnet

Go-Jek prepares to launch ride-hailing services in Vietnam and Thailand

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It looks like Indonesian ride-hailing firm Go-Jek will finally initiate its long-awaited expansion in Southeast Asia over the next month.

The company announced today that it’ll launch businesses in Vietnam and Thailand under the names of Go-Viet and Get, respectively, using a model that sees local founders run each business independently with backing from local partners and the Go-Jek mothership.

TechCrunch understands that the Thai and Vietnamese entities will go live for customers from August. The plan is to initially launch motorbike and car-based services. Later, it may introduce services-on-demand as it done with significant success in Indonesia.

Go-Jek didn’t provide a timeline for launches in its announcement today, but a source with knowledge of the plans told TechCrunch that Go-Viet is likely to be up and running by August with Get in Thailand set to follow a month later. The Philippines launch will come next, but the timeframe is currently unspecific and simply “before the end of 2018.”

That just leaves Singapore, which is a more complicated market since it doesn’t support Go-Jek core motorbike on-demand service and it has been flooded by new entrants following Uber’s exit.

As TechCrunch previously reported, Go-Jek has held partnership talks with Comfort Del Gro, Singapore’s largest taxi operator which formerly had an agreement with Uber. However, it looks like any potential deal will take time and Go-Jek is prioritizing other markets initially.

Interesting, our source confirmed that the apps — Go-Jek, Get and Go-Viet — will not be interoperable. On one side that gives the local teams the flexibility and autonomy to introduce services and customize their offerings to suit the local market, but it will mean that consumers traveling between countries will need to download different apps.

Back in May the company formally announced plans to enter four new markets via a $500 million budget. Consumers may have been expecting a quick launch, particularly since Uber’s exit from Southeast Asia, but the process takes significant time. Now that Go-Jek has installed local teams — led by Nguyen Vu Duc in Vietnam and former head of Line Man Thailand Pinya Nittayakasetwa for Get — it is readying the operations side of the service to launch for consumers.

Grab, Go-Jek’s key rival, raised $2.5 billion over the last year and it is currently raising a new round that values its business at over $10 billion. The first investor confirmed for the new raise is Toyota, which has pledged $1 billion in what is the largest investment from an automotive company into a ride-hailing provider.

Go-Jek hasnt raised as much as Grab, but it is still well capitalized. The company raised $1.4 billion from a bevy of backers that include Tencent, JD.com and Meituan from China as well as global names like Google and Allianz.

Philippine wants to rival Vietnam for foreign investments – How can?

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The Philippines should focus on “rapidly growing” its manufacturing sector to attract foreign investors just like Vietnam, an adviser to the American Chamber of Commerce of the Philippines said Monday.

Data from Bangko Sentral ng Pilipinas showed that the country’s foreign direct investments reached a record of $10 billion in 2017, lower compared to Vietnam’s $14 billion. ABS – CBN news reported.

Lower minimum wage and subsidized electricity for manufacturing drew foreign investors to Vietnam, AmCham senior adviser John Forbes told ANC.

Nike, for example, employs 390,000 Vietnamese while Samsung manufactures almost half of its phones in Vietnam. The investment consulting firms is one of the important strategy of Vietnam to approach foreign investor as well. Forbes said. GBS – a Global Business Services Company (https://gbs.com.vn) in Vietnam approached and supported nearly 500 foreign invested companies getting the enterprise registration certificate and investment license in Vietnam annually.

“Vietnam has been doing things the Philippines has not been able to do but the Philippines has its own specialties in manufacturing and they should be focused on those and growing them rapidly as possible,” Forbes said.

Hanoi buses strive to serve more passengers

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The number of passengers riding buses in Hanoi has risen since late 2016, the municipal Department of Transport said, but the system still faces major challenges as it seeks to attract more riders.

According to a report by VNS, at a press conference this week, Director of the Department of Transport Vu Van Vien said that in 2017, Hanoi’s public buses transported 441 million passengers, up 1.9 percent over the previous year.

In the first half of 2018, there were 221 million passengers riding buses, increasing 5 percent compared to the same period last year.

“In general, the city bus services, including normal and subsidised ones, have grown,” he said.

Bus routes have expanded, including rapid transit buses and city tours which connect the 30 districts and communes.

Responding to the report issued early this month by Hanoi Transportation Service Corporation (Transerco) showing a sharp decline in the number of public bus riders in the city, Vien said the study only covered subsidised buses.

In 2012, with 53 bus routes, Transerco served 414 million passengers while in 2017, with 74 bus routes, they only transported 321 million passengers, a decline of 93 million passengers. Moreover, transit time has also lengthened due to the rising traffic influx and road infrastructure.

Despite the declines in subsidised bus ridership, the total number of bus passengers has ticked up since late 2016.

Another 10 enterprises operate public buses without any price subsidies, which offer longer journeys. When both services are considered, the number of public bus riders has actually risen.

Nguyen Thanh Binh from the Hanoi People’s Council said that the decline in passengers on price subsidised buses could be tackled if the service providers paid more attention to reducing transit, including shortening the distance from passengers’ homes to bus stops. If travelling by bus takes much longer than other alternatives, it won’t be able to compete, he said.

Nguyen Nguyen Quan, head of the Urban Department under the Hanoi People’s Council, said the public bus system currently meets only 13 percent of people’s transportation demands, while the city is set aims to meet 20 to 22 percent by 2020. In less than two years, it will be almost impossible for public buses to reach the target.

Therefore, the Hanoi Department of Transport is tasked with developing better solutions to tackle the issue as well as set more realistic and detailed goals.

Transerco, with its eight sub-agencies and three joint-stock companies, is in charge of operating many inner-city bus routes, accounting for 81.5 percent of the city’s subsidised bus routes. According to Nguyen Cong Nhat, the corporation’s deputy director, the number of public bus riders reached its peak of 414.8 million in 2012 and started falling afterwards.

To improve services and attract riders, Transerco has launched new bus routes to increase connections within the city and to outlying areas since 2016. However, the lack of small buses which can access narrow streets is another challenge for the public bus system.

Quan recommended the corporation to improve supporting services from renewing vehicles to developing smartphone-based bus-tracking applications. The city’s authorities will also tighten management and create favourable conditions to improve the public bus system.

Nhat said that besides new vehicles, it is critical for social infrastructure to be improved. To reverse the passenger loss, buses need to win the speed game against private vehicles.

Without breakthroughs in infrastructure, such as specialised lanes for buses the rising number of bus routes will still fail to attract more passengers, he said.

In the past two years, Transerco replaced 320 old buses with new, modern ones. Fourteen new bus routes with three routes serving narrow streets are planned to open this year.

Mini-buses with a capacity of 20 to 24 passengers can access small, high-density streets, helping transport passengers from those areas to the main bus routes.

The corporation said meeting passenger demand in underexploited routes will help raise the number of public bus riders and ease traffic congestion.

Hoi An: Exploring Vietnam’s Yellow City

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Just south of Da Nang lies the magical little yellow town of Hoi An. It is a coastal town that lies on the mouth of the Thu Bon River. Despite having beautiful beaches and unique countryside villages, it is the unique Ancient Town that will make you fall in love with Hoi An.

Hoi An was once an active and very important Southeast Asian trading port from the 15th through the 19th centuries. During that time, the town was bustling with foreign traders, most of whom were Japanese, Chinese, and Dutch. They took part in all sorts of trades such as silk, china, pottery, and spices.

Throughout the following centuries, trade may have declined, but the city has preserved its culture through its architecture, traditions, memories, and people’s smiles. Now, Hoi An has become a favorite tourist destination among those that travel to Vietnam.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Walking through the narrow streets, you will find rows and rows of shop houses, typically two-story establishments with homes on the top floor and shops on the ground floor, as well as Chinese-tiled roofs and colorful lanterns hanging from rusty ceilings. You will see men on rickshaws peddling with curious tourists along the alleyways and little local ladies in their traditional ao ba ba, or “street pajamas,” and non la, a “Vietnamese conical hat,” selling bright-colored vegetables, little trinkets, or local delights in baskets skillfully balanced on their shoulders on a bamboo pole.

Vu Pham Van | © Culture Trip

It all blends so perfectly well together that the Hoi An Ancient Town somewhat resembles an outdoor art gallery that is extremely photogenic and effortlessly alluring.

Vu Pham Van | © Culture Trip

A striking detail is that many of the buildings in the town are bathed in a distinctive golden-yellow hue. It is like the city is always wrapped in sunshine. There are three reasons as to why this could be. People in this region of the world believe that yellow is a symbol of royalty and superiority, and thus, they paint significant architectural monuments in various shades of yellow. Also, yellow symbolizes luck, pride, and prosperity to the Vietnamese.

Vu Pham Van | © Culture Trip

The final reason is a little more practical: yellow absorbs less heat and thus, it is better suited to Vietnam’s hot and humid tropical weather.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

The Hoi An sunrise is particularly charming—the sunlight illuminates the yellow walls, and the whole city begins to wake up from its slumber. You will hear the sounds of brooms sweeping houses and streets, birds chirping excitedly, bells on bicycles ringing, vendors setting up their stalls for the day, and the laughter of school children as they greet their friends during breakfast.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Grabbing a banh mi, or “baguette sandwich,” as breakfast, and a Vietnamese coffee on the sidewalk, both adding up to a little over a dollar, will fill you up for the rest of your walk.

Vu Pham Van | © Culture Trip

Hoi An has nearly 1,000 ancient houses for you to explore, and of these, 844 are included in the UNESCO World Heritage list. Many of these have been turned into museums, shops, cafes, or artists’ workshops. The city is full of artists, craftsmen, tailors, and shoemakers, to name but a few talents. Tailor shops are everywhere and outnumber all other businesses here two to one. A common travel bucket list item you can get ticked off here is getting an item tailored to your tastes and shape. It will be a great memory to take back home.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Because of Hoi An’s protected status, there are very strict building regulations in place, meaning it has retained the traditional wooden architecture of the past. The original street plans, including canals, bridges, and old houses with green moss growing over their yellow walls cannot be broken down. Hoi An even escaped the war almost completely unscathed. As you wander through the alleyways you will feel as if you have gone back in time.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Among the ancient houses, there are many you can visit that are not stores. These are the Phung Hung Old House, Duc An Old House, Museum of Sa Huynh Culture, and Quang Thang Ancient House, to name a few. Some of these still have families living on the upper floor, but they are kind enough to open their doors for you to explore the ground sections, which have been turned into displays of old artifacts, books, and art.

Vu Pham Van | © Culture Trip

You need a ticket to get into these homes, and this package ticket can be bought at every entrance to the Ancient Town. With each ticket, you are able to visit five places among the 21 sightseeing houses. It will cost you a small fee of 120,000 VND (5.27 USD).

Vu Pham Van | © Culture Trip

Take your time wandering around aimlessly without a destination in mind. This way, you will come across unique alleyways and cafes that you can stop by for a refreshing cup of ca phe sua da, or “Vietnamese iced coffee.” Take a coin with you, and assign directions to each side. Flip it every time you come across a fork in the road. If you get lost, do not worry, most locals here speak a fair amount of English to be able to point you in the right direction. They are very welcoming so do not be afraid to approach them.

Vu Pham Van | © Culture Trip

Vu Pham Van | © Culture Trip

Hoi An will undoubtedly leave an imprint in your memory, with its gentle demeanor and poetic charm. It will be one of those places you will return to in the future that remains exactly the same as you remember it. It’s a place like no other in this world.

Vu Pham Van | © Culture Trip

By Piumi Rajapaksha

World gathers in Vietnam to tackle climate change challenges

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One of the most significant global gatherings of the year on the environment, the assembly follows a record $4.1 billion replenishment by governments of the GEF’s trust fund.

Da Nang (Vietnam): World leaders and officials from over 100 nations, including India, top heads of UN agencies and multilateral financial institutions, scientists and activists gathered in this Vietnamese city on Sunday for the Global Environment Facility’s (GEF) Assembly to tackle global climate change challenges.

One of the most significant global gatherings of the year on the environment, the assembly, which will see high-level plenary sessions June 27-28, follows a record $4.1 billion replenishment by governments of the GEF’s trust fund and is testament to its growing influence in bringing about sustainable development around the world.

India, among the world’s most vulnerable countries to climate change, is both a donor and a recipient of GEF, an international partnership of 183 countries.

GEF CEO and Chairperson Naoko Ishii called the assembly, held every four years, “a unique opportunity to help make a safer, more secure and more liveable planet”.

“Business as usual will guarantee disaster; incremental change will not suffice. The only solution is transformational change. We need to transform food, urban and energy systems and move to a circular economy.

“We need to act swiftly and at scale — and that’s just what the GEF intends to do,” she said in a statement.

The plenary sessions, to be opened by Vietnamese Prime Minister Nguyen Xuan Phuc address on June 27, will cover the state of the global environment, the ambition needed to help transform the systems that support how we live, how we eat, how we move and how we produce and consume, and how the implementation of GEF-7 (the new four-year investment cycle) can contribute to the necessary systems change.

Heads of island nations vulnerable to rising sea levels caused by melting ice, like the Marshall Islands President Hilda Heine and Guyana President David Granger, will speak at plenary sessions as will former Chilean President Michelle Bachelet and former Costa Rican President Jose Maria Figueres.

Nearly 30 countries last month jointly pledged $4.1 billion to the GEF for its GEF-7 to better protect the future of the planet and human well-being.

India is among the largest recipients of climate change assistance.

GEF supports the World Bank and the United Nations Development Programme to undertake capacity-building in a wide range of areas in India, including climate change adaptation, sustainable land and ecosystem management, biodiversity conservation and rural livelihoods.

India is one the biggest emitters of greenhouse gases after the US and China.

According to the UN Environment, with a population of 1.3 billion, growing at 1.2 per cent per year, India is a heavy hitter in the world of global emissions.

The energy sector accounts for some 71 per cent of India’s emissions, a fact the government is committed to changing through an aggressive roll out of energy efficiency programmes, including a plan to be the world’s first country to use light-emitting diodes, or LEDs, for all its lighting needs.

The UN Environment and partners are backing India’s green ambitions through Creating and Sustaining Markets for Energy Efficiency, a GEF-supported project to boost the uptake of efficient lighting and other technologies.

Last November, the GEF announced $454 million funding to boost India’s efforts for energy-efficiency projects run by state-owned Energy Efficiency Services Ltd (EESL).

The GEF also supports the Indian government to create sustainable cities.

Bhopal city in Madhya Pradesh is an example where the GEF, together with the United Nations Industrial Development Organisation, invested in cleaning up and removing a 40-year-old toxic dumpsite, and with the World Bank, providing es solutions for sustainable transport.

“Countries like India, China and Brazil have hundreds of cities. If the knowledge of this global partnership can be adapted, disseminated and used by national and local governments, then a lot of influence will move from 20 cities to hundred of cities in the world,” World Bank Group Senior Director Ede Jorge said in a video message.

GEF’s Sustainable Cities Programme is investing $151.6 million in grants and $2.4 billion in co-financing over five years, initially engaging 28 cities in 11 developing countries.

Apart from three high-level plenary sessions in the GEF Assembly, there will be roundtable discussions, among others, on food, land use and restoration, sustainable cities, the blue economy, partnerships for implementing the 2030 agenda, marine plastics and sustainable landscapes in the Amazon and Congo basins.

The assembly will also see the participation of business leaders such as Unilever CEO Paul Polman and Olam International Co-Founder and Group CEO Sunny Verghese.

Among the participants are Johan RockstrAm, Executive Director, Stockholm Resilience Centre; Andrew Steer, President and CEO, World Resources Intitute; Shenggen Fan, Director General, International Food Policy Research Institute; Rosa Lemos de SAi, CEO, Funbio; and Carter Roberts, President, WWF-US.

GEF, established on the eve of the 1992 Rio Earth Summit to help tackle planet’s most pressing environmental problems, has provided $17.9 billion in grants and mobilised an additional $93.2 billion in financing for more than 4,500 projects in 170 countries.

Source: EconomicTimes

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