Vietnam smartphone makers break from Samsung empire

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HANOI – Vietnamese companies, including some that are new to the sector, plan to launch or expand production of smartphones, in a challenge to foreign makers, especially Samsung Electronics, which dominates the market in the country – Reported by Nikkei Asia

Vingroup, the biggest property developer in Vietnam, has announced a plan to produce smartphones starting in 2018, while home electronics maker Asanzo is set to produce 600,000 smartphones in 2018, up 50 times from the previous year.Both peers are using the technology acquired from their experience in original equipment manufacturing to capitalize on the rapidly growing market.

While Samsung has captured nearly half of the smartphone market in Vietnam, local companies will embark on marketing offensives with low-priced models.

Vingroup recently set up VinSmart with a capital of $131 million to break into the smartphone market. The new subsidiary will build a manufacturing plant in an industrial park in Hai Phong, a coastal city in northern Vietnam.

Samsung has created a smartphone production hub in Vietnam by bringing in South Korean, Japanese and other suppliers, some of which have begun providing parts to Vietnamese markers. Technologies needed for smartphone production are being accumulated in Vietnam through such developments as engineers joining local companies.

The smartphone market in Vietnam has been rapidly growing at an annual pace of around 10%, more than doubling sales in 2017 from 2014 to 15 million units. Oppo, which entered the market in 2012, surpassed Apple as the second-largest smartphone supplier in Vietnam in only five years, thanks to such features as advanced selfie functions. Another Chinese maker Xiaomi is striving to expand its market share through a sales tie-up with leading Vietnamese consumer electronics retailer Digiworld.

The company announced a decision last September to manufacture automobiles and is building a plant in the industrial park. The smartphone factory will be set up next to the auto plant.

It will first enter the affordable segment, as it did with its automobile strategy, and later move into products with higher added value, said Nguyen Viet Quang, vice chairman of the group. He suggested that the subsidiary will initially promote inexpensive smartphones.

Vingroup has already tied up with an overseas smartphone maker in a bid to produce low-priced and profitable models. It will in the meantime learn technologies from the partner, according to sources familiar with its strategy.

Asanzo, which primarily produces TVs, will spend 200 billion dong ($8.73 million) to sharply increase its production of smartphones this year. The company entered the smartphone market with two models in 2017 and has since produced a total of only 12,000 units.

In 2018, Asanzo plans to release new models every quarter, hoping to produce more than 600,000 units.

Asanzo is considering releasing inexpensive models, priced at 1 million dong, with simplified functions, said company Chairman Pham Van Tam. Samsung’s handsets are sold in the country in the range of 2.5 million to 25 million dong while price tags for Apple’s iPhone range from 9 million to 30 million dong.

The company chalked up 4.62 trillion dong in sales in 2017, about 90% of which came from TVs. Smartphones contributed to less than 1% of total sales, but the company plans to raise the ratio to 30% in 2020.

Bkav, a leading security software company in Vietnam, put the country’s first domestically made smartphone on the market under the name of Bphone in 2015. As suggested by the name, Bkav had Apple’s iPhone in mind when it released its smartphone as a high-end model priced some 40% lower than iPhones at the time.

While word is circulating that Bkav will introduce a new model this summer, the company has made no announcement yet.

The smartphone market in Vietnam has been rapidly expanding in recent years and an estimated 30 million to 40 million units are in use. In 2017 alone, 15 million smartphones were sold.

Samsung, which produces smartphones in Vietnam, has taken a 46.5% share of the local market, followed by Oppo Electronics of China at 19.4% and Apple at 9.2%.

Vietnamese companies are able to produce smartphones thanks to the presence of Samsung. The South Korean electronics giant began making smartphones in the northern Vietnamese province of Bac Ninh in 2009.

Low-priced smartphones are only a niche market in Vietnam, maintaining a low level of demand, because low-income people tend to buy flip phones.

Even well-known companies struggle in Vietnam, because local consumers are highly selective about their purchases. For example, smartphones offered by Nokia of Finland and Sony of Japan enjoy little popularity in the southeast Asian country.

The future of smartphones produced by Vietnamese companies will depend on whether they can manufacture products having appealing features on top of low prices and attract consumers through social networking services and other marketing strategies.

By ATSUSHI TOMIYAMA

Vietnam manufacturing improves sharply in June

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Manufacturing activity in Vietnam improved to one of the largest extents since the survey began in March 2011. The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, rose to 55.7 in June from 53.9 in May. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity – Reported by Nikkei

Output and new orders were accelerated amid general improvements in client demand. This led to a record rise in employment and purchasing activity. Record rise in staffing levels was also seen as a result.

“The Vietnamese manufacturing sector appears to be motoring midway through 2018,” commented Andrew Harker, Associate Director at IHS Markit which compiles the survey. “The current growth phase has been extremely positive for Vietnamese workers, with firms taking on extra staff at a record pace during June.”

Beer Is Big Business in Vietnam

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In Vietnam, beer is big business.

Young people fill large, newly built beer halls for drinks after a long day. Foreigners are launching small businesses and making their own beer in the country. Foreign companies from Heineken to Sapporo hope the Vietnamese market will drive their sales growth. At the same time, some investors are looking for the chance to buy Sabeco, Vietnam’s top beer producer.

Beer seems to be popular nationwide, but the government is getting worried. Now government officials are considering ways to restrict advertising for beer.

The Ministry of Health has proposed a measure that would limit ads for beer, which it fears could soon become a threat to public health. The rules would ban roadside signs for beer, ads in films, on shows with children, and on social media.

Vietnam already bans ads for hard alcohol. But in countries that ban ads for beer and drinks known as spirits, drinking is 11 percent lower than in countries that mainly focus on hard alcohol. That information comes from Tran Thi Trang, deputy director of the Ministry of Health’s legislation department.

“Every year, the alcohol companies spend trillions of dong on advertising and marketing,” she was reported as saying. She added that beer manufacturers would not spend so much money if the ads truly failed to bring people to their products. Her comments appeared on the government’s news website.

A man drinks Sabeco’s 333 beer at a restaurant in Hanoi, Vietnam, Dec. 18, 2017.

Excited about beer

It is because of the fact the Vietnamese have developed a new love of beer that the Health Ministry proposed the restrictions on advertising.

In Vietnam, alcohol-related enjoyment is very old – from people who made their own rice wine to the American soldiers who loved 33 Beer, a locally made product, during the Vietnam War.

But today is different, as Vietnamese citizens in peace time have the growing wealth and freedom to drink beer into the early morning. Beer often costs less than a bottle of water.

Policymakers worry that as the drinking culture increases, so will Vietnam’s rates of alcohol-related health problems and drunk driving. The World Health Organization says the country already has a large number of cases of hepatitis B, the main cause of liver cancer.

Industry’s objections

“Beer and alcohol production play an important role in the development of the economy and society, noted Nguyen Van Viet, chairman of the Vietnam Beer, Alcohol, and Beverage Association.

Yet the WHO estimates that damage linked to alcoholic drinks can cost a country anywhere from 1.3-12 percent of gross domestic product (GDP). GDP is a measure of all the goods and services produced in a country over a 12-month period.

Bottles of beer move along a production line at a factory of Saigon Beer Corporation (Sabeco) in Hanoi, Vietnam, June 23, 2017.

Officials aim to balance those costs with the benefits of beer to the economy, investment, and trade. Even Australia credits its beer-related exports whenever officials speak of improved trade with Vietnam, where it has become the biggest supplier of wheat and other products required to make beer.

Regan Leggett is the executive director for thought leadership at Nielsen, which released a report in March on discretionary spending in Vietnam and four other countries. He said beer and treats are not just fun, but represent the way the local economy is growing.

Beer is big business, and some Vietnamese are concerned new restrictions could affect the number of visitors. Trang, however, is not worried.

“If visitors come to Vietnam just because their country controls alcohol use, and Vietnam does not,” then Vietnam needs to rewrite its policies because drinking is an international practice.

Reported by Ha Nguyen

Stocks seen staying negative on investor fears

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The recent volatility of global stocks and the outflow of foreign capital have dampened investors’ confidence in Vietnamese shares in the past few weeks and the troubles are forecast to last into the near future.

The benchmark VN Index on the HCM Stock Exchange gained 0.36 per cent to close at 960.78 points on Friday. VNS reports

The HNX Index on the Hanoi Stock Exchange declined for a fourth straight day, losing 0.83 per cent to end at 106.17 points.

The VN Index and the HNX Index finished the week 2.3 per cent and 5.2 per cent lower than the previous week’s end, respectively.

Trading liquidity on the two local exchanges fell on a weekly basis to some 190.4 million stocks worth VNĐ4.5 trillion (US$197.4 million) being traded in each session last week.

According to analysts, the local market will face further difficulties as investors continue worrying about the rising tensions between China and the US, which could lead to a large-scale trade war between the two largest economies and have negative impacts on global stock markets.

Foreign capital outflow is another concern as foreign investors have kept net-selling Vietnamese shares in response to the appreciation of the US dollar against other currencies after the US Federal Reserves raised interest rates on June 14 and signalled two more hikes will come later in 2018.

The exchange rate between the Vietnam Dong and the dollar has been on rise in the last two weeks, touching a high of VNĐ23,000 per dollar.

Foreign investors last week net-purchased total VND2 trillion worth of Vietnamese stocks, including VNĐ2.2 trillion worth of put-through deals for shares in the media firm Yeah1.

If the net-purchase of Yeah1 was not included, foreign investors posted VNĐ329 billion worth of net selling last week. They net-sold VND594 billion in the previous week.

The risk of a further correction remains high, according to securities firms. The stock market will likely be highly volatile this week.

Sài Gòn-Hà Nội Securities Company said in its weekly report that capital had not returned to the stock market, given the depleting liquidity and high volatility, and it proved investors are cautious and have become less attracted to the stock market.

Low market sentiment kept investors uninterested in buying stocks even though listed firms have released early earnings forecasts for the second quarter of the year and the macroeconomy has remained stable in the first half.

The General Statistics Office (GSO) last week announced the country’s gross domestic product (GDP) was estimated to grow by 8.08 per cent in the first six months. It was the highest six-month growth rate since 2011.

Vietcombank has estimated its six-month pre-tax profit rose 52.7 per cent year on year to VNĐ7.72 trillion, but its shares fell 1.2 per cent last week with low demand.

Declining liquidity has also damaged expectations for the earnings of securities firms such as Saigon Securities Inc (SSI), VNDirect Securities (VND) and HCM City Securities (HCM). The three stocks dropped between 7.3 per cent and 9.8 per cent last week.

Oil and gas (energy) stocks recorded modest gains despite being supported by the increase of crude prices. The US benchmark West Texas Intermediate (WTI) was up 8 per cent last week and Brent crude gained 5 per cent.

Crude prices are forecast to keep increasing this week following US sanctions on Iran and disrupted supply in Canada, Libya and Venezuela. Crude prices are expected to touch $90 a barrel.

The VN Index may continue to settle in the range of 950-1,000 points this week as it has done in the last eight sessions, SHS said.

Technical indicators signalled high risk that the market would fall further in the coming week as blue-chip stocks continued to weaken, according to FPT Securities Company (FPTS). This may be the reason investors have stood aside rather than buying, and they are expected to remain cautious.

Lotte duty free opens 2nd store in Nha Trang, Vietnam

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South Korea’s Lotte Duty Free said Sunday that it has opened its second store in Vietnam at Nha Trang Cam Ranh International Airport as it strives to expand its presence in the Asian market and better serve Chinese and Russian visitors.

The company, a major player in the duty free business, said its new store started operating Saturday as the new passenger terminal at the airport opened for business. It said Lotte has the right to solely operate the duty free store at the airport till 2028. Korea Times reports.

The airport serves the Nha Trang area in the central part of the Southeast Asian country, with both domestic and international flights being offered to users.

The opening of the latest store comes a year after Lotte launched its duty free operations at Da Nang International Airport.

The Cam Ranh store covers 1,680 square meters and handles cosmetics, perfume, watches, fashion items, liquor and cigarettes.

It said South Korean cosmetic brand Sulwhasoo, as well as many labels favored by Chinese and Russian visitors, such as Dior and Yves Saint Laurent, will be sold at its stalls. Data showed that among international travelers using the airport in 2017, 58.9 percent were Chinese nationals and 27.4 percent Russian.

The region, famous for its sunny climate, attracts 2 million tourists annually.
“The goal is to attract Chinese and Russian travelers, with the store expected to generate some 700 billion won (US$628 million) in sales in the next 10 years,” Lotte said. The company said it wants the Cam Ranh store to turn a profit in the first year.

It added that Lotte will strive to become a beloved duty free store in Vietnam by offering excellent service and a wide range of goods to customers.

The company opened its first overseas store in Indonesia in 2012 and presently operates seven outside South Korea, including its latest branch in Vietnam.

By Yonhap

Vietnam drug bosses killed after two-day police standoff

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Two alleged heroin kingpins in Vietnam were killed in a shootout with police following a dramatic days-long standoff at their tunnel hideout in a mountainous northern border zone near Laos, authorities said on Friday.

Deadly clashes with police are extremely rare in the country, which has some of the toughest drug laws in the world. AFP reported.

Major drug busts are common in the areas close to Laos where tonnes of narcotics stream in through the porous borders every year.

Few were as dramatic as the shootout this week that left two cartel bosses and one of their staff dead. Another three dealers were arrested in the operation that also unearthed a large arms cache.

Around 200 police and armoured trucks barrelled into the area in northern Son La province on Wednesday around where the cartel was hiding out in manmade tunnels that were manned by armed guards.

Police and guards exchanged fire in a two-day standoff in the small village close to the Laos border.

“We killed three men in the attacks, two of them the ring leaders,” a Son La police source told AFP, declining to be named.

“Another three men were arrested alive while police confiscated four guns and rifles, three grenades and hundreds of bullets,” the report said.

The bosses, Nguyen Thanh Tuan and Nguyen Van Thuan, were believed to have moved nearly a tonne of heroin in their years running the drug ring.

Police were first tipped off about the cartel in a 2015 bust of 120 kilogrammes of heroin hidden inside gas canisters in the area, according to the Cong An Nhan Dan newspaper, the mouthpiece of the Vietnam’s Public Security Ministry.

Security was tight in the area on Friday as police hunted some members of the cartel believed to have gone into hiding.

Earlier this year police made a record seizure of USD3 million worth of heroin hidden inside tea packets smuggled in from Laos.

The heroin was being transported through Vietnam to a third country, though officials did not say where.

Vietnam is a key transit point in the “Golden Triangle” drug trade, a region that cuts across parts of Laos, Thailand and Myanmar.

The area is awash with drugs including synthetics, much of it pumped out of Myanmar’s Shan state.

This week, Myanmar, Thailand and Laos marked the International Day against Drug Abuse by torching huge stockpiles of narcotics.

Record seizures and arrests of low-level smugglers have become routine. But the capture or killing of cartel bosses remains rare across Southeast Asia.

The United Nations and others called for regional governments to stamp out corruption to stem the flow of drugs, with local police accused of turning a blind eye – or even profitting from – the illegal trade.

Vietnam’s no-nonsense drug laws are some of the most severe in the world.

Anyone possessing or smuggling 600 grammes of heroin or more than 2.5 kilogrammes of methamphetamines could face death.

Jollibee opens 500 stores, bullish in Vietnam

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Jollibee Foods Corporation, the largest Asian food service company, is planning to invest P12 billion this year for the opening of 500 new stores and expansion of its commissaries in order to sustain its strong growth trajectory.

“We expect revenues and profit to continue to at least sustain historical growth rates in 2018 and in the years ahead,” said Jollibee President Ernesto Tanmantiong during the firm’s annual stockholders’ meeting. Philippine News reported

Last year, JFC profits rose 15 percent to P7.09 billion as system-wide sales hiked 15.2 percent to P171.77 billion while first quarter 2018 earnings surged 17.3 percent to P1.8 billion with system-wide sales jumping 19.3 percent to P45.98 billion.

Tanmantiong noted that, “Jollibee is planning to open 500 new stores worldwide.

Of the P12 billion capex, P7 billion will be used for new stores and renovations while P5 billion will be for commissary investments.”

The firm continues to invest in manufacturing plants and its facility in Canlubang, Laguna will increase capacity by 75 percent so it can serve at least 1,000 stores.

Jollibee Chairman Tony Tancaktiong said 250 to 300 of the new stores will be opened in the Philippines while the balance will be opened by its various brands overseas.

For the stores outside the Philippines, the biggest number will be in China and Vietnam.

“Vietnam is growing fast and it has a young population and both Jollibee Vietnam and Highlands Coffee are growing very well,” said Tancaktiong.

He added that “we have an aggressive expansion of Highlands Coffee in Vietnam. Highlands Coffee is already the number one chain in Vietnam and we expect PH to follow.

“We are very excited with Vietnam because it will be a large consumer country because of the population and there is a lot more room to grow,” said Tancaktiong.

UN Tourism ranks Vietnam 7th on their list of emerging markets with 25% growth rate

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Vietnam has been endowed with a vast tourist infrastructure.

Vietnam has received more than 7 million foreign tourists, an average of more than one million 300 thousand per month, and is moving towards the goal of hosting 15 to 17 million in the year. Devdiscourse.com reported

The visits in these first six months exceeded by 27.2 percent the same period of 2017, a sign of the impressive growth rate of the so-called industry without chimneys in the Indochinese nation. According to the General Statistics Office, there were important increases in the markets of the five continents: Asia, 32.7 percent; Europe, 11 percent; United States, 13.5 percent, Oceania, 10 percent; and Africa, 22.2 percent, as per Prensa Latina.

Vietnam has been endowed with a vast tourist infrastructure that in terms of accommodation translates into the existence of more than half a million rooms, distributed mostly in 116 hotels Five Stars, 259 Four Stars and 488 Three Stars. In recent years the country has won several international tourist awards and titles under an intense and intelligent promotion program.

The National Tourism Administration recently announced that from September 25 to October 7, it will carry out new and important actions of this type in France, Spain, Italy, and Germany. As of July 1, in addition, hikers from these four countries and those from the United Kingdom will be exempt from visa.

Last year Vietnam received a record number of 13 million foreign tourists and the aspiration in this is to go from 15 million and approaching 17 million. According to the United Nations Tourism Organization, this beautiful country ranks seventh in the list of emerging markets with an average annual growth rate of 25 percent.

Vietnam expects textile industry to growth at high rate

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The textile and apparel industry has been forecast to have one of the country’s highest growth rates over the next 12 years.

Speaking at the 4th Vietnam Textile Summit 2018 held in Hanoi on Wednesday, Dr Tran Du Lich said he believed the future would be bright. Vietnam News/ANN reported

“Garment and textile is a key economic sector in terms of employment creation and contribution to exports. It creates 20 per cent of jobs in Vietnamese industry,” said Lich.

This sector has the second highest export turnover and occupies the fifth position in the world. Last year saw goods worth more than USD31 billion, exported, representing 10.23 per cent year-on-year increase.

The rapid growth rate was expected to continue this year with an estimated turnover of USD33 billion.

In addition to maintaining traditional markets such as the US, Europe, Japan and South Korea, Vietnamese garment and textile firms have been expanding to new areas such as China, Russia and Cambodia.

It also promotes the development of the cotton fibre industry; petrochemical industry and other textile supporting industries as well as trading, services, and fashion industry.

“The textile industry contributes to the success of FDI attraction policy. FDI accounts for about 60 per cent of apparel and textile export turnover,” he said adding that in the economy industrialisation strategy, the industry played an important role in the economic structure of Vietnam.

However, he said the government policies played an important role to help businesses develop. Vietnam’s vocational training policies in the industry had not been effective and would need further support.

In addition, the government should encourage enterprises to mobilise capital on the stock market. The application of the Decree No 111/ND-CP on supporting industries should be promoted and be included in research budgets, application of new technologies and reduction of corporate income tax.

The government should also encourage the linking of value chains by supporting small and medium enterprises under the Law on the promotion of small-and-medium sized enterprises (SMEs).

Tran Thanh Hai, Deputy Head of the Department of Export and Import under the Ministry of Industry and Trade said new Free Trade Agreements (FTAs) which Vietnam signed or negotiated would benefit the country’s garment and textile sector.

“In the 2018-22 period, the export tax of some products would be reduced to zero, creating new opportunities for the country to increase export added value and promoting the economic growth,” Hai said.

On the other hand, the competitive labour costs and preferential policies would continue to help Vietnam become one of ideal destinations for investors in the sector.

However, Vietnam should continue to compete to maintain competitiveness with countries such as Bangladesh, Sri Lanka, Myanmar and Cambodia.

Sharing the ideas, Ven Tran, director of Vietnam Office of Weave Services Limited said Vietnam had experienced strong growth in textile manufacturing thanks to three key advantages as trade barriers are gradually removed.

In addition, Vietnam ranked second lowest in the regions, after Bangladesh. Its global position made it an ideal choice for investors who want to leave China.

However, there were still three main challenges to sustain this strong growth including low productivity, environmental regulation and long lead time, he said.

Long lead time means retailers and manufacturers fail to meet customers’ expectation and managing raw materials is key to speeding up productivity. Material accounts for a half of total lead time and it can even be 70 per cent when it comes to overseas supply.

He suggested the solutions were to set up a common language with supply methods while factoring in risk.

The event co-organized by ECV International and Vietnam Cotton and Spinning Association (VCOSA) aimed to better understand the market, as well as mitigate risks and identify new opportunities. Meanwhile, the summit can also act as a platform for exchanges, communication and mutual assistance.

10 Delicious Local Vietnamese Desserts You Need to Try

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Vietnamese cuisine is a favourite around the globe – from hearty bowls of Pho to flavourful Banh Mis – but the unique dessert recipes remain slightly under wraps. Check out seven scrumptious desserts you can find here in tropical Ho Chi Minh City, plus a few bonus desserts that are must-tries!

Sticky rice balls in ginger syrup – Chè Trôi Nước

Sweet and flavourful Che Troi Nuoc. | © Moon Le/Shutterstock

This gooey, sweet dessert is served hot and usually topped with white sesame seeds. The chewy, glutinous rice ball is stuffed with mung bean paste and cooked in a fragrant ginger syrup. Chè Trôi Nước roughly translates to “fulfilment” and this dessert is often eaten on a child’s first birthday and other traditional holidays such as Tet, the Vietnamese New Year.

Sweet potato, taro, and cassava soup – Chè Bà Ba

This dessert is native to southern Vietnam and is a favourite for its famed combination of flavours. Sweet potato, taro and cassava (two other root vegetables) simmer in a coconut milk broth with tapioca pearls. This creamy dessert is eaten on both hot and cool days and can be made even more delicious by topping it off with crushed peanuts.

Mung bean pastry – Bánh Dau Xanh

Vietnamese mung bean paste cakes, also known as Moon cake. | © Cao Phuong/Shutterstock

Mung bean pastries are specialty Vietnamese desserts. Bánh Dau Xanh is made of mung beans, sugar, oil, and fat. The texture of the beans can be a little odd for foreigners to get behind, but taking a bite of a mung bean pastry while after sipping a cup of tea you’ll be hooked. These pastries are not overly sweet and are a must-try for any traveller who enjoys sampling traditional foods.

Sweet corn pudding – Chè Bắp

This typical Vietnamese pudding consists of sweet corn, glutinous rice, and rich coconut milk topped with sesame seeds. The flavours of the sweet corn and coconut milk combined with the chewy texture of glutinous rice make for a unique dessert experience. It’s best to try this dessert during the harvest season from March to September, when the local corn is fresh and sweet.

Black sesame soup – Xi Ma

Xi Ma, Vietnamese black sesame soup | © Le Do/Shutterstock

The saying “don’t judge a book by its cover” definitely applies to this dessert. From first glance it doesn’t look like something you’d be eager to ingest; it is a thick, black syrup usually sold by street vendors. It gets its colour from the main ingredient – black sesame seeds – and is not overly sweet. It has a rich, toasted sesame taste and is normally eaten as a mid-afternoon snack in Hoi An. Portions are small, served hot, and contain the herb pennywort, which is said to have strong healing properties. Don’t shy away from Xi Ma – buy a small cup and enjoy the unique flavour.

Mango sweet cakes – Bánh Xoai

This slightly deceptive sweet treat has nothing to do with mangoes; it gets its nickname from its mango-esque shape. This delectable street food can be regularly found in markets and near street food vendors. Bánh Xoai is made of a glutinous rice shell that is filled with a sweet mixture of peanuts and sesame seeds. It’s as delicious as it sounds!

The three-colour dessert – Chè Ba Mau

Che ba mau, a favored dessert in Vietnam. | © richchy/Shutterstock

This popular dessert gets its name from its classic layers of yellow mung bean paste, red beans, and green pandan jelly that are topped with a layer of ice and a generous pouring of rich coconut cream. It’s served in a tall glass with a long spoon to mix the layers together, quickly turning it into to a multi-coloured masterpiece. It is the perfect treat on a hot and humid summer’s day in Vietnam. You can find Chè Ba Mau easily near major street food markets in the big cities.

Vietnamese doughnut – Banh Tieu

Banh Tieu, the delicious Vietnamese rice doughnut. | © Tang Trung Kien/Shutterstock

Ah, the delicious and addictive Vietnamese hollow doughnut. Banh tieu is the dessert you never knew you were missing in your life. The crispy, fried dough is perfectly sweet and covered in white sesame seeds, adding a crunchy texture and perfect balance of sweet and savoury. Banh tieu is the ultimate monsoon season treat – what could be better than kicking back with a hot cup of tea and some of these little doughnuts while listening to the rhythm of the rain falling outside? Spoiler alert: nothing. Vendors normally sell these in large metal saucers, so if you see them, buy a bag – you will not regret it!

Banana with sago pearls in coconut milk – Chè Chuối

Class Vietnamese dessert Che Chuoi | © Yongxi/Shutterstock

This is one of the best desserts in the country. Sweet banana, rich coconut milk, sago pearls, sesame seeds, and crushed peanuts comprise this warm, heavenly treat. Much of the sweetness is owed to chuối sứ, a small banana native to Southeast Asia that is sweeter and more flavourful than its full-sized counterparts. Enjoying a small bowl of savoury Chè Chuối is a must for any traveller sporting a serious sweet tooth!

Iced coconut coffee at Cộng Cà Phê

Established in 2007, Cộng Cà Phê is a Vietnamese coffee chain that describes itself as a “hipster cafe and lounge”. These cafes have unique interiors full of plants, paintings, rustic tables and – of course – delicious coffee. One of their menu staples is traditional, strong Vietnamese espresso poured over a generous serving of iced coconut cream. Mixing the espresso into the iced coconut cream turns it into an iced coconut latte, which is definitely more of a dessert than a casual coffee. It’s sweet and cold, the perfect treat on a hot, humid day. Cộng Cà Phê is located throughout the country (more so in large cities), so you’ll have no trouble finding one to enjoy this rich, delightful iced coffee.

By Katie Kalmusky, The Culture Trip

Global Trade Risks Cloud Vietnam’s Outlook as GDP Grows 6.8%

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Export-reliant economy faces trade wars, rising U.S. rates
Inflation accelerates to 4.7 percent in June, government says

Vietnam’s economy posted steady growth in the second quarter with the help of solid foreign investment and exports, but risks are mounting with the prospect of a global trade war. Bloomberg reported

Highlights of GDP report

  • Gross domestic product rose 6.8 percent in the second quarter from a year earlier, compared with a revised 7.5 percent in the previous three months, the General Statistics Office said in Hanoi on Friday
  • The economy expanded 7.1 percent in the six months through June compared with a year earlier

Export-reliant Vietnam is trying to sustain its stellar economic performance in the face of global trade protectionist moves and rising U.S. interest rates. Prime Minister Nguyen Xuan Phuc requested ministries in May to increase their monitoring of international markets and to take suitable and timely action to minimize any negative effects.

Growth eased in the second quarter from the prior three months due to reduced mining and public investments, Nguyen Bich Lam, head of the General Statistics Office, told reporters in Hanoi on Friday.

“Medium term prospects of Vietnam’s economy are good, but the global context is uncertain,” Victoria Kwakwa, the World Bank’s vice president for East Asia and Pacific, said earlier this week. “The uncertainty in the global context is an area of risk” for Vietnam, being an export-driven and open economy, she said.

Fitch Ratings, which upgraded Vietnam’s credit score to BB in May, expects some slowdown in the economy in the rest of the year, amid a pick-up in trade risks and a possible easing in China’s growth.

Vietnam is one of a handful of economies in Asia, including China, India and the Philippines, which are still growing more than 6 percent a year.

Other Details

  • Exports increased 16 percent in the first six months from a year ago
  • Industrial production rose 12.3 percent in June from a year earlier
  • Consumer prices rose 4.7 percent in June from year earlier. The government aims to cap average price gains at 4 percent this year

By Nguyen Dieu Tu Uyen, with assistance by Michelle Jamrisko

Russian Power in Asia’s Wheat Market Includes Vietnam

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Russia boosts sales to Vietnam; is now nation’s No. 1 supplier
World’s top shipper grabbed more market share in recent years

To see how far Russia has expanded its grip on the global wheat market, just look at Vietnam.

Bloomberg reports, for the first time, Russia is the top supplier of wheat to Vietnam, the seventh-biggest market in Asia. Exports jumped 13-fold in the 10 months through April, compared with the previous season, according to UkrAgroConsult.

The increase followed Vietnam scrapping an import tax on Russian grain and a poor Australian harvest, but also shows how competitive prices are helping Russia offload its record crop around the world.

Wheat Takeover
Russia is now the biggest wheat supplier to Vietnam

Bigger harvests and relatively cheap production costs have helped Russia grab export-market share from major suppliers such as the U.S., European Union and Australia in recent years. The Black Sea country, which is expected to remain the world’s biggest shipper next season even with a smaller crop, now sells grain to more than 130 nations around the world.

“In terms of the Black Sea stealing market share from Australia, this is happening without question and has been the case for a number of years now,” said Tom Basnett, general manager at commodity consultant Market Check in Sydney. “Vietnam, much like our other traditional buyers, have become more accustomed to using cheaper Black Sea-origin wheat.”

Trade Boost
Vietnam bought 1.7 million metric tons in the July-April period after canceling an import tax as part of a trade accord that took effect in late 2016, Kiev-based UkrAgroConsult said. That’s up from 124,000 tons in the entire previous season. Scrapping the levy has been the main driver of Russia seizing almost half of Vietnam’s market, UkrAgroConsult analyst Marina Sych said.

Russia may have also benefited from declining output in Australia, which is a key shipper of wheat to Asia, Market Check’s Basnett said. Australia’s wheat exports slumped by a third in the 2017-18 season after drought hurt crops, according to the USDA.

Vietnam has traditionally been one of Australia’s top five export destinations, typically accounting for about 10 percent of its wheat sales, Basnett said.

By Anatoly Medetsky

Woori Bank to open 6 new branches in Vietnam this year

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South Korea’s Woori Bank Co. won the Vietnamese financial authorities’ approval to open six additional branches in the Southeast Asian country, moving a step closer to its goal to operate more than 20 branches in the country by 2020.

Pulsenews reported, the Korean leading bank said Wednesday that its local subsidiary Woori Bank Vietnam will open six new branches in Vietnam after it gained licenses for the business from the State Bank of Vietnam. This is the first time a foreign banking unit has obtained multiple licenses to open branches at the same time in Vietnam, according to the company.

The new branches will open this year in Thai Nguyen, Hai Phong and Ha Nam in the north of Vietnam, as well as in Ho Chi Minh, Nhon Trach (Dong Nai) and Binh Duong in the south. These cities are popular business bases for Korean companies that have made inroads into the country.

Woori Bank Vietnam, which is currently running three branches in the country, aims to expand the business base in major cities of Vietnam by running a total of nine outlets by the end of this year and more than 20 by 2020.

Woori Bank opened its first outpost in Hanoi in 1997 and incorporated Woori Bank Vietnam as an independent local subsidiary in January 2017 to bolster its local financial services in the Southeast Asian country.

Its current three branches are located in Hanoi, Ho Chi Minh and Bac Ninh providing various financial services for Korean companies and their local partners. It is also reinforcing its retail banking services by providing mortgage-backed loan service and issuing credit cards. It has also introduced its mobile banking service Global Wibee Bank to lure young clients.

By Lee Seung-yoon and Lee Ha-yeon

Vietnam real estate outlook sparks foreign investor rush

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‘In Vietnam, the rapid advancement of the middle and affluent classes is promoting the next wave of demand.’

Ranked high for development prospects in the Asia-Pacific region, Vietnamese real estate is attracting increased investment interest.

Big names in the global real estate industry are choosing Vietnam as their next investment destination because it shows great potential for future development, a recent report says.

Tokyo-based Nomura Real Estate made a notable transaction in January when it bought a 24 percent stake in Ho Chi Minh City’s Sun Wah Tower.

The Asia Pacific Investment Quarterly report for the first quarter of 2018 says that the purchase of a stake in the grade A building in HCMC’s District 1 shows that the city’s office market continues to record healthy demand and high occupancy.

The report, prepared by global real estate service provider Savills, says that apart from office spaces, the hospitality sector in Vietnam is also seen as an attractive investment option for foreign investors.

Japan’s Mikazuki Hotel in January announced plans to invest $100 million in a project in the central Da Nang city.

The development will include a five-star hotel, a waterpark and a food-and-beverage complex on an area of 11.5 hectares.

Another real estate segment that has been attracting developers is the mixed-use projects with residential components in major cities.

Singapore-headquartered real estate firm, CapitaLand, acquired in March a 0.9-hectare prime location in Hanoi’s Tay Ho District which has 380 residential units and over 21,000 square meters of office space.

This latest deal expands the company’s portfolio to 12 residential developments, one integrated development and 21 serviced residences across six cities in Vietnam, the Savills report said.

These acquisitions show that Vietnam continues to draw investment interest, and Ho Chi Minh City stands out on investors’ lists, securing top positions for investment and development prospects in Asia Pacific, it added.

Demand wave

“In Vietnam, the rapid advancement of the middle and affluent classes is promoting the next wave of demand,” said Simon Smith, head of Research and Consultancy at Savills Hong Kong.

Demand for premium property will continue to rise as the number of middle class citizens is expected to reach 44 million by 2020 and 95 million by 2030, estimates market research firm Nielsen.

Foreign investors are also showing interest in Vietnamese real estate because the country has been seeing a record-high number of international tourists, the Savills report said.

In the first five months this year, 6.7 million tourists came to the country, an increase of 27.6 percent compared to the same time last year. Average growth in the number of international tourists visiting Vietnam reached 30 percent in the last three years.

Another reason for the increased presence of foreign investors is the result of the modifications to Vietnam’s housing law, said Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment.

The barriers in Vietnam’s pre-2014 legal framework had made foreign investors doubt their chance to succeed in the country’s real estate market, Vo told VnExpress International.

But Vietnam has shown more openness with the 2014 housing law, which allows foreign investors to own property up to 50 years with the possibility to renew for another 50 years.

The law also allows foreign business to own properties in the country after obtaining permission from local authorities.

Positive changes in the legal framework have helped, too.

“It took time for international investors to believe that Vietnam is actually unlocking the door of opportunities for them,” Vo said.

He also said that the presence of international investors in the country will be a challenge for local real estate investors, as most of them don’t have the ability to compete with foreign firms with higher budgets.

“But this will also be a great opportunity for them to increase their capabilities,” the former deputy minister said.

Source: Vnexpress

PG Bank skips 2017 dividend

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PG Bank had to set aside a provision of VND383 billion ($17 million) in 2017 so its profit was not enough to pay dividends. Will the merger with HDBank improve the business activities of PG Bank?

According to PG Bank’s report on its general shareholders’ meeting, the total assets of the bank in 2017 were nearly VND29.3 trillion ($1.3 billion), up 18 per cent on-year, while total deposits were approximately VND25.3 trillion ($1.12 billion), up 20 per cent, and the outstanding balance of the entire bank was VND21.42 trillion ($0.95 billion), up 22 per cent.

In 2017, PG Bank gained VND80 billion ($3.5 million) in pre-tax profit, equivalent to 54 per cent of the plan set forth. At the annual general shareholders’ meeting yesterday, PG Bank’s chairman Bui Ngoc Bao said that the reason for the low profit was unsatisfactory deposits and lending, and the increase of provisions.

The total bad debts of PG Bank were VND691 billion ($30.44), increasing by VND258 billion ($11.37 million) against 2016, equalling 3.23 per cent compared to the 2.47 per cent of 2016.

The report shows that the bank reached most of all business targets in 2017, but profit was little as provisions were set at VND383 billion ($17 million). PG Bank intends not to pay dividend in 2017.

In 2018, PG Bank set the target of nearly VND30 trillion ($1.3 billion) in total deposits, up 19 per cent on-year, and VND24 trillion ($1.06 billion) in outstanding lending, up 12 per cent.

In the end of 2018, the total assets of the bank are expected to rise by 17 per cent to VND34.2 trillion ($1.5 billion) throughout the year. Pre-tax profit is expected to hit VND183 billion ($8.6 million), a 2.3-fold increase against 2017’s performance, because the bank intends to set aside provisions of VND33 billion ($1.45 million), while it set aside VND460 billion ($20.26 million) in 2017.

PG Bank and HDBank are collaborating to complete the merger in this August. PG Bank maintains its leadership until the merger is finalised in the next several months.

“The final target of the leaders is to merge and develop PG Bank into a large-scale bank and bring benefits to all shareholders. The merged entity will keep all jobs, employees, as well as develop the bank,” Bao stated at the annual general shareholders’ meeting yesterday.

As PG Bank has been in the red for a while now, it remains questionable whether HDBank could improve its situation. Also, should shareholders expect dividend at the next AGM?

Earlier, on April 19, Vietnam National Petroleum Group (Petrolimex), the parent company of PG Bank, signed a strategic co-operation agreement with HDBank. Their plan outlined the estimated swap ratio of PG Bank and HDBank shares at 1:0.621, meaning one share of PG Bank will be converted into 0.621 shares of HDBank.

Additionally, HDBank plans to pay a bonus equivalent to 20 per cent of the total shares for shareholders. If the merger plan is approved, Petrolimex will also get an additional 20 per cent of the bonus shares based on the total number of swapped shares after the merger. Moreover, the merger will also create a surplus estimated at VND5 trillion ($220.3 million), which will benefit all shareholders, including Petrolimex.

HDBank holds great experience in the management and administration of mergers and acquisitions activities. By this merger, the charter capital of the two banks is estimated at VND15.345 trillion ($676 million).

PG Bank and HDBank expect to become an outstanding financial and credit organisation, and its network of individual customers and small- and medium-sized enterprises will expand drastically.

Source: VIR

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