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Vietnam intends to increase trade with Azerbaijan

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Vietnam hopes to increase trade with Azerbaijan, as well as volume of bilateral investments, Minister of Industry and Trade of the country Tran Tuan Anh told reporters June 20.

“During the meeting of the Intergovernmental Commission in Baku, we discussed the development of cooperation in a number of areas of mutual interest. This includes both energy and other areas, such as processing industry, IT technologies, education, and transport. In particular, we agreed to accelerate cooperation in the sphere of maritime transport. I am sure that the development of our relations will accelerate in the near future. In particular, it is necessary to increase the trade turnover, as well as to increase the volume of mutual investments, which today is $300 million. This indicator is not bad, but there is a potential to increase it,” he said.

Azerbaijan and Vietnam have signed the protocol of the second meeting of the joint Intergovernmental Commission on economic, trade, scientific and technical cooperation in Baku on June 20.

The document covers cooperation in a number of areas, including trade, investment, energy, agriculture, transport, communications, and high technologies.

According to the data of the State Customs Committee of Azerbaijan, the trade turnover with Vietnam in January-April 2018 amounted to $15.86 million. The export of Azerbaijani products to Vietnam amounted to about $630,000. During the year, the trade turnover between the two countries increased by 65.2 percent.

Source: Trend

‘There are trigger points’: FIFA technology head explains VAR system to Peter Schmeichel

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Russia 2018 is the first large-scale introduction of VAR (Video Assistant Referee) but how does the new system work exactly? RT’s Peter Schmeichel was given a crash course in the cutting-edge technology.

“In general we are talking about four game-changing situations,” explains Johannes Holzmuller, head of FIFA’s Football Technology Innovation to RT’s Schmeichel about when VAR will be employed – RT reports

“These are the trigger points for VAR. It means that only when one of these situations is happening on the pitch then VAR can support the referee on the pitch. If something happens, let’s say a potential red card, the ball goes out of play or even if the ball is still in the game, in the background there are checks happening.

“The entire VAR team – we will have four VARs – they will check immediately; is this a potential red card? In the moment when he is clear that this is obvious and very clear for everyone, then he will inform the referee on the pitch. The VAR then explains exactly what he has seen, what was the clear and obvious error.”

If it isn’t clear, the referee has access to a monitor on the sideline so he can make his own judgement call on the incident.

“If it is factual information – the best example is offside – it is black and white. We have a line, we will see the line and [the referee] will then of course support the VAR”

Given that VAR is still a relatively new introduction to the ruleset of the beautiful game, some grey areas still exist. Can officials, for example, bring back play by a period of two minutes?

“Yes and no,” Holzmuller explains. “In the attacking phase it is defined in the protocol the moment when it starts, the build-up to the goal.

“It’s really up to the referee to decide [when] the build-up to the goal started … and from thereon everything that is not according to the laws of the game can be analyzed.”

Tinder parent company buys anti-Tinder dating app Hinge

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Match Group, a massive online dating conglomerate, acquired Hinge today in a deal that gives the company a 51 percent stake in the app. Hinge initially marketed itself as a more welcoming version of Tinder in which users could only see potential matches who shared a mutual Facebook friend. The company then redesigned its app to get rid of all swiping features and in its place let users build out full profile pages. Hinge users can answer three questions about themselves, connect their accounts to their Instagram, and also upload multiple photos, making the Hinge experience more like a full-fledged online dating site.

In a prepared quote, Mandy Ginsberg, CEO of Match Group, said, “Hinge is highly relevant particularly among urban, educated millennial women looking for relationships.” Acquiring the company essentially turns Match into a dating app behemoth that owns 45 brands, including Tinder, OkCupid, Match, and Plenty of Fish. The only notable dating app not owned by Match is Bumble, which was created by Tinder co-founder Whitney Wolfe Herd. (Match Group recently sued Bumble over alleged patent and trademark violations.)

Bumble specifically targets women, as the app’s entire experience is designed around making women feel empowered online. If Hinge really does have a strong female base of users, it would make sense that Match would want to more directly compete with Bumble for its users. Meanwhile, Facebook announced earlier this year that it’s working on its own dating feature that could rival Match’s user base size.

Source: The Verge

HCMC Police arrest gangsters beating and robbing foreigners in District 2

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The police of District 2, Ho Chi Minh City, arrested and detained the group who robbed a foreign couple just 4 hours after the robbery.

After receiving a report of the foreign couple about a group of robber young men riding motorcycles in An Phu ward, district 2, HCMC, the anti-Criminal Police in District 2 arrested 3 suspects including Nguyen Hoang Minh (commonly known as “Minh Meo”, the gangster head, 1995), Le Hoang Minh Ba (or “Hai Banh”, 1993) and Doan Van Duc (1996), to investigate acts of “robbery” of foreign tourists.

Accordingly, around 2 am on June 14, Thomas B. (1990, Belgian nationality) and Ferrari Manon Fa. A. (1992, French nationality) went to a police station in district 2 to report about the robbery.

According to the two victims, about 10:30 pm of June 13, they visited a beer club on Nguyen Thi Dinh Street, Binh Trung Tay Ward, District 2, HCMC. While they were drinking beer, a young man named Minh came to make friend with them.

At about 1 am on June 13, B and A. got out of the bar and rode on their motorcycle. When approaching the empty ground near Giong Ong To Bridge, An Phu ward, district 2, HCMC, suddenly Minh riding a motorbike followed them. The two tourists did not understand anything and they were hit by Minh in the face then fell down on the road.

Suddenly two more other young men running on a motorbike came and hit the tourists, causing them to run away in panic.

Foreign couple are happy to receive back their property

After that, the gangsters opened the trunk of the motorbike and take away the assets including VND 3.5 million, mobile phones, foreign currency and personal papers.

After the incident, the police had investigated extensively the case and arrested all three men by 6 am of the same day. All the three did not confess until the police asked the two victims to identify them.

After that, the police returned all the lost assets to Ms. A. and Mr. B.

“Minh meo” had just married about 2 weeks. Due to their difficult life as they had no stable jobs, Minh Meo, Hai Banh and Duc decided to commit the robbery. Minh Meo had ever two criminal convictions of “theft of property”; “Hai Banh” also had two convictions of “disturbing public order” and “property robbery”.

Source: Vietnamnet

Vietnam’s Meat Boom

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Vietnamese eat diets are changing, there is little doubt about that. People eat more than before, and they eat much more meat and animal products.

This is hardly surprising, given that the country over the past three decades has transformed from one of Asia’s poorest countries to an “emerging economy” and in the process gone from food shortage to food abundance. But even if taking into account that increasing meat consumption is expected alongside economic growth, increasing affluence, and urbanization, the changes seen in Vietnam have been remarkable.

Vietnam is indeed home to a dramatic transformation toward more meat-intensive eating habits. Not that long ago, common Vietnamese diets consisted mainly of rice and vegetables. Meat was eaten only on special occasions. Now, it is quite common to include meat in every meal of the day. Indeed, the average Vietnamese person eats four times more meat now than she did 30 years ago.

Farming, Pho and Fast Food

We need to look at the whole chain from production to consumption in order to understand what is going on.

To start at the farm, Vietnam’s dramatic increases in agricultural output since the 1986 doi moi economic reforms are well-known. But while coffee and rice have attracted much attention, meat has largely gone under the radar. Vietnam has seen spectacular increases in output in the livestock sector. Indeed, production in the livestock sector has grown faster than production in crops, and now represents one-third of all agricultural output in the country.

Furthermore, much of the meat consumed in Vietnam comes from farmers in other parts of the world, and increasingly so. Alongside new trade agreements, imports of meat from different parts of the world, especially the United States and India, have soared, mostly for chicken and beef. Vietnam is now even importing live cattle from Australia for domestic slaughter.

To continue along the value chain, slaughterhouses are now larger and more efficient. The access to meat has also increased at the retail side, with a large increase in supermarkets and mini-marts, as well as street kitchens, fast food joints, and restaurants.

But none of this matters, of course, unless people actually want to eat more meat.

A Growing Meat Culture

Meat has become an increasingly important part of Vietnamese consumers’ food practices, although in many different ways. Some practices are quite conspicuous, like the boom in high-end steak houses where rich Vietnamese easily spend a worker’s monthly salary on a meal of imported steak while sipping imported red wine. Other are inconspicuous, like the gradual increase of amounts of meat in street food. Take the famous pho as an example: not that long ago it would come with tiny servings of beef (or chicken), if any at all. Now some consumers are complaining that there’s too much meat in the soup. Changing eating habits are also obvious from the fact that while pork remains the by far most popular form of meat, consumption of beef and poultry is increasing at a faster pace.

Steakhouses and pho takes us toward an important part of the meat intensification of Vietnamese diets. Studies show that across countries and cultures, people tend to eat more meat when eating out than when eating at home. In Vietnam, the typical family meal now includes meat, but often only as a small part of an overall meal consisting of rice, vegetables, and sometimes seafood. Over the last decades, however, Vietnamese have been going out to eat much more than before.

Fast food chains like McDonalds and Burger King are part of this new food scene. However, “Eastern” influences are arguably much stronger than “Western.” For example, Japanese and Korean-style BBQ joints are extremely popular, and highly meat intensive.

Meat as Progress

While all of this is going on, however, many Vietnamese are cutting back on meat consumption, usually for health reasons, but a few also for environmental or animal rights concerns. Going vegetarian is indeed trendy among the young, urban middle classes, often to the amazement and disdain of parents and grandparents who remember a time when meat was a luxury.

And this is a crucial point. In a country where even the richest parts of the population clearly remember extreme scarcity, meat is for many a defining part of progress. Thus, while wealthy Vietnamese may be cutting back on meat, many have just recently been able to afford it. Indeed, many of the processes I have outlined as driving forces behind the meat boom are at early stages in the country. Alongside increasing vegetarianism, it is thus highly likely that we will see a further increase in meat consumption in Vietnam.

By Arve Hansen

Vietnam’s ‘vermicelli village’: A delicious Hanoi side trip

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(CNN) — Known as mien in Hanoi, vermicelli takes many forms in Vietnam. You’ll find it in pho, spring rolls, noodle soups and served with grilled meats — but nowhere is it more ubiquitous than in Cu Da village.

About 13 kilometers south of Hanoi, this ancient village is known for its prolific vermicelli production and beautifully preserved architecture.

Grinding arrowroot to create flour, pasta makers produce hundreds of tons of vermicelli each year to keep up with national demand.

“Of course people want to modernize the production process, but (almost) everything is still made by hand in Cu Da village,” Quỳnh Anh Nguyen, a photographer based in Hanoi, tells CNN Travel.

“I think that’s special in the 21st century.”

Vermicelli noodle paradise

In Cu Da, white and yellow vermicelli noodles dangle everywhere, covering rooftops and walls — pretty much any surface that noodles can be hung from.

The unusual scene dates back about 60 or 70 years, when residents first started hand-making noodles for their own consumption.

But the noodles’ high quality attracted interest from all over Vietnam, and vermicelli soon became the village’s calling card.

“Producing good quality vermicelli is a must,” Cong Minh Dinh, head of the village farmers’ union, tells CNN Travel.

“Through years of experience, there have been many changes and developments. For example, vermicelli used to be coated in copper pans and molded in small tins.

“Nowadays, we use much bigger buckets and barrels for higher productivity. We also use automated machines that transmit heat instead of using direct fire (like we used to).”

There’s more to Vietnam’s diverse noodle scene than pho. You’ll be seeing red when you tuck into a bowl of bun rieu, a crab-based vermicelli soup.

Despite a few adjustments, the process is still highly labor-intensive.

First, pasta makers grind arrowroot into a flour, then mix it with water to create a paste. The paste is then smeared into a thin pancake on a bamboo tray, steamed, then dried in the sun.

Once dry, the paste is then cut into thin noodles and dried again. It’s then packaged and distributed across Vietnam.

Ancient architecture

Come for the vermicelli but stay for the architecture.

Throughout the late 19th and early 20th centuries, the village benefited from a thriving economy, thanks to its position on a bustling trade route along the Nhue River. This relative prosperity enabled residents to build and maintain beautiful homes, gates and temples.

“I really love this place, because you can find so many well preserved buildings,” says Nguyen. “You can see a mix of Asian, Chinese, Vietnamese and even French colonial-style architecture all in one village.”

We hit the streets with a tour that’s educating visitors about Hanoi’s best street food, from bun ca (fish noodle soup) to iced coffee.

The ornate Cu Da Temple, for example, is a national heritage site that showcases precious stones and colorful motifs of dragons, unicorns and phoenixes.

Also notable are the countless French-style villas — many of which were built as community centers where residents would gather to make decisions.

Lining the peaceful river, the photogenic two-story buildings feature pastel tones, pretty balconies, eaved rooftops and intricate stone carvings.

“By visiting our village, I think people can learn a lot about preserving valuable cultural assets and traditional beauties that our ancestors left behind,” adds Dinh.

Getting there: Hire a taxi from Hanoi to make the one-hour journey to Cu Da village.

By Dan Tham and Kate Springer

TPBank earns US$97mn by issuing private shares

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Tiên Phong Commercial Joint Stock Bank (TPBank, stock code TPB) has completed the private sale of 87.63 million shares to more than 20 investors, earning nearly VNĐ2.2 trillion (US$96.5 million).

In a filing to Ho Chi Minh Stock Exchange on June 18, the bank said 100 per cent of its shares were sold to 21 investors at the price of VNĐ25,000 ($1.10) per share, which was lower than its trading price of VNĐ27,000-VNĐ28,000 per share on the bourse.

Seven institutions bought nearly 59 million shares, or 67.3 per cent of the total offer, while 14 individuals purchased the remaining shares.

Finnish PYN Elite Fund Management, which manages assets worth 450 million euros (over VNĐ12 trillion), spent nearly VNĐ840 billion to acquire more than 33.5 million shares of TPBank. After the transaction, PYN Elite Fund owns 4.99 per cent of the bank’s charter capital.

Singapore’s SBI Ven Holdings Pte. Ltd also bought more than four million shares to maintain its ownership of 4.61 per cent at the bank. This fund has two representatives in TPBank’s management board.

A group of four companies (VG Co. Ltd, JB Co. Ltd, SP Co. Ltd and FD Co. Ltd), chaired by Nguyễn Thị Thu Nguyệt (who is also a member of TPBank’s supervisory board), purchased 13.3 million shares.

Saigon Securities Inc acquired eight million shares, equivalent to 1.19 per cent of TPBank’s charter capital.

In a related development, TPBank completed the conversion of more than 29.2 million preferred stocks that the International Finance Corporation (IFC) had bought for over VNĐ400 billion in August 2016. With these shares, IFC’s stake in TPBank stands at 4.35 per cent.

After the offering, total outstanding shares of TPBank increased from 584.2 million shares to 671.84 million shares, equivalent to a charter capital of VNĐ6.72 trillion.

Source: VNS

Viettel signs up 1m subscribers in Myanmar in first 10 days

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Mytel, the Viettel-owned mobile operator in Myanmar, has signed up more than a million subscribers in just 10 days since it officially began operations.

There are several reasons for this achievement, including the fact the company had set up the most extensive telecom infrastructure in Myanmar even before starting operations.

It has laid 30,000km of fibre-optic cable, or 50 per cent of the country’s total cable infrastructure, covering 80 per cent of the population.

It is the only mobile network to provide 4G services nation-wide covering 300 out of 330 towns while the next biggest competitor only covers 185.

Mytel has set up a nation-wide distribution system with 50 stores and 50,000 sales agents, 70 per cent of them in rural and remote areas.

The company is also offering very attractive promotions to mark its inauguration.

Nguyễn Thanh Nam, Viettel’s deputy general director and Mytel’s general director, said while Myanmar has experienced rapid economic growth, mobile phone penetration in the country has remained low, creating huge opportunities for the telecom sector, especially Viettel.

“We are targeting two to three million customers in Myanmar in 2018.”

Mytel began operations on June 9.

Myanmar is Viettel’s 10th foreign market and its largest in terms of population (53 million). Myanmar is also Viettel’s market with the highest economic growth rate, which was 7 per cent last year.

But it is also a very competitive market: telecom services are already used by 90 per cent of the population, calling and data tariffs are cheap, and there is fierce competition from international networks like Norway’s Telenor, the 13th world’s biggest, and Qatar’s Ooredoo, the leading network in the Middle East.

As of Mytel’s opening, Viettel Group’s registered foreign investment is over US$2 billion.

Source: VNS

Noise is part of life of Hanoians

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The tumultuous noise from vehicles’ horns, the ear-splitting sounds from loudspeakers at TV shops, and music from clarinets and drums during funeral processions all are unpleasant sounds Hanoians have to listen to every day.

Lang, Tran Duy Hung, Truong Chinh, Pham Hung and Hoang Quoc Viet streets have the highest level of noise pollution because of the traffic volume in rush hours. Terrible noise is emitted from vehicle engines and the horns of trucks.

Ignoring the non-honking signs, drivers still beep at others all the time.

Hoang Thi Thu, who lives on Le Duc Tho street and drives a motorbike every day to go to the office and bring kids to schools, complained she always feels stressed because of many kinds of sounds, dust and traffic jams.

Nguyen Van Vu, 70, in Dich Vong Hau residential quarter in Cau Giay district said he is most afraid of the noise produced by the machines working on a construction site near his house.

“Bulldozers, excavators and drilling machines work day and night. We usually suffer from insomnia,” Vu said.

Scientists pointed out that if noise exceeds the permitted level, people’s productivity will decrease. More dangerously, the noise intensity of 90 dBA or above will adversely affect blood pressure, the stomach, and cause fatigue, insomnia, impairment of hearing and neurodegeneration.

Hanoians are also ‘tortured’ by the noise from other sources, from the music at draft beer shops on pavements to the cassettes that beggars turn on to catch people’s attention.

Sometimes a funeral and a wedding are organized on the same day and in the same residential quarter. As a result, local residents have to listen to both sad and happy music.

“One won’t be jailed if he causes noise by playing music or singing too loudly during his birthday party. Therefore, people ignore all advice and requests to turn down the volume,” a man complained.

A research study conducted by the Institute for Occupational Health and Environment of 12 roads and major traffic routes in Hanoi found that the noise intensity in the daytime in is 77.8-78.1 dBA, or 7.8-8.1dBA higher than the permitted level. The figures were 65.3 – 75.7 dBA and 10 – 20 dBA, respectively at night.

Reducing noise and ensuring safe lives for people is a must for civilized cities. To do this, environmentalists have called on necessary measures to reduce the number of personal vehicles, develop public transport, tighten advertisement activities, develop more greenery, and impose heavy sanctions on violators.

Source: Vietnamnet

Hanoi suffers dwindling bus use

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The number of passengers on public buses in Hanoi has decreased by 93 million over the past five years.

The Hanoi People’s Council worked with Hanoi Transport and Services Corporation (Transerco) on June 19 to discuss the problem.

Le Anh Quan, a supervisor from Hanoi’s People’s Council, said the public buses were facing tough competition from other services and lack of road for fast transportation.

Even though the authorities have opened more bus routes and provided more subsidies, the number of passengers decreased. In 2012, Transerco served 414 million passengers with 53 routes. But in 2017, it served 321 million passengers with 74 routes. Travel times are also slower than before.

Another supervisor, Nguyen Thanh Binh, said Transerco must carry out more research to find their targeted passengers and improve services.

Transerco General Director Nguyen Hoang Trung agreed with the assessment and added that they lost many passengers after privatising several subsidiaries since 2013. New routes are mostly opened in the suburbs with longer trips and higher ticket prices so have failed to attract passengers.

Moreover, the infrastructure is a major factor. Transerco has opened bus routes on every possible road in the past 10 years. However, they still need to open 10 more routes this year and more in the following years according to a proscriptive city plan and 2018 Bus Development Plan, but this is largely impossible given there are no more roads that require more services.

Transerco asked for more bus lanes and enforcement to help improve the speed of services.

Source: Dtinews

Moody’s Assigns Counterparty Risk Ratings to 16 Vietnamese Banks

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Moody’s Investors Service has today assigned Counterparty Risk Ratings (CRRs) to 16 rated banks in Vietnam.

The banks affected are: 1) An Binh Commercial Joint Stock Bank (ABB), 2) Asia Commercial Bank (ACB), 3) Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), 4) JSC Bank for Foreign Trade of Vietnam (Vietcombank), 5) Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), 6) Lien Viet Post Joint Stock Commercial Bank (Lien Viet), 7) Military Commercial Joint Stock Bank (Military Bank), 8) Orient Commercial Joint Stock Bank (OCB), 9) Saigon – Hanoi Commercial Joint Stock Bank (SHB), 10) Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank), 11) Tien Phong Commercial Joint Stock Bank (TPBank), 12) Vietnam International Bank (VIB), 13) Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank), 14) Vietnam Maritime Commercial Joint Stock Bank (MSB), 15) Vietnam Prosperity Joint Stock Commercial Bank (VP Bank), and 16) Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

Moody’s Counterparty Risk Ratings are opinions of the ability of entities to honour the uncollateralized portion of non-debt counterparty financial liabilities (CRR liabilities) and also reflect the expected financial losses in the event such liabilities are not honoured. CRR liabilities typically relate to transactions with unrelated parties.

Examples of CRR liabilities include the uncollateralized portion of payables arising from derivatives transactions and the uncollateralized portion of liabilities under sale and repurchase agreements. CRRs are not applicable to funding commitments or other obligations associated with covered bonds, letters of credit, guarantees, servicer and trustee obligations, and other similar obligations that arise from a bank performing its essential operating functions.

RATINGS RATIONALE
The CRRs assigned to the 16 rated Vietnamese banks are in line with the Counterparty Risk Assessments (CRA) already assigned.

Because Moody’s considers Vietnam not to have an operational resolution regime, in assigning CRRs to the Vietnamese banks subject to this rating action, the rating agency applies its basic Loss Given Failure (LGF) approach. Moody’s basic LGF analysis positions CRRs in line with the banks’ CRAs, one notch above their adjusted BCAs, prior to government support.

Furthermore, the CRRs also incorporate between zero and one notch of uplift due to Moody’s assessment of government support for the 16 banks in times of need, based on the banks’ systemic importance to Vietnam. The uplifts are in line with that applied to the CRAs.

OUTLOOK
CRRs do not carry outlooks.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

ABB – WHAT COULD CHANGE THE RATING UP
Substantial improvements in asset quality and core capital metrics will be positive for the BCA. If the sovereign rating of Vietnam is upgraded, Moody’s will consider upgrading the long-term ratings of the bank by possibly incorporating some government support uplift in the ratings.

ABB – WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded, if the bank’s asset quality deteriorates such that credit losses almost fully deplete its loss absorbing buffers. A significant deterioration in its liquidity metrics could also be negative for the ratings.

A large appetite for credit growth — in particular, if the growth is at levels materially higher than the system average — could translate into downward rating actions, or a change in the ratings outlook.

ACB – WHAT COULD CHANGE THE RATING UP
Moody’s will consider upgrading the long-term ratings of ACB if (1) Vietnam’s sovereign rating is upgraded and (2) the bank posts improved standalone credit metrics that lead to a higher BCA.

Moody’s could upgrade ACB’s BCA if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country.

ACB – WHAT COULD CHANGE THE RATING DOWN
Moody’s could downgrade ACB’s BCA and ratings if (1) the bank demonstrates a material deterioration in its capital adequacy, or (2) the operating environment deteriorates significantly, against the backdrop of a loosening in the bank’s underwriting practices, thereby exposing it to asset-quality risks.

HDBANK – WHAT COULD CHANGE THE RATING UP
Moody’s will consider raising HDBank’s BCA if the bank’s problem loan ratio falls below 4% and its ratio of tangible common equity to adjusted risk-weighted assets, or the TCE ratio, exceeds 10%.

An upgrade of the Macro Profile of Vietnam’s banking system, which is currently Weak, would also prove to be positive for HDBank’s BCA.

The long-term ratings could be upgraded if the bank’s BCA is raised or Vietnam’s sovereign rating is upgraded.

HDBANK – WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if HDBank’s (1) problem loan ratio rises above 10%, or (2) TCE ratio drops significantly. The ratings are also sensitive to a significant weakening in the bank’s liquidity profile.

The ratings could be downgraded if the government’s rating is lowered or if Vietnam’s Macro Profile is revised downward.

VIETCOMBANK – WHAT COULD CHANGE THE RATING UP
Vietcombank’s long-term ratings could be upgraded if Vietnam’s sovereign rating is upgraded.

VIETCOMBANK – WHAT COULD CHANGE THE RATING DOWN
Downward pressure on the BCA could develop as a result of (1) a sharp deterioration in the bank’s asset quality, and (2) credit growth that significantly lowers its capital levels.

Weaker links with the government, such as a material decrease in the State Bank of Vietnam’s ownership stake in the bank, could place downward pressure on the ratings.

BIDV – WHAT COULD CHANGE THE RATING UP
If the B1 rating on the Vietnam government is upgraded, Moody’s will likely upgrade the long-term ratings of BIDV, by incorporating additional notches of government support uplift.

The following factors could result in an upward revision of BIDV’s BCA: (1) material improvements in asset quality and core capital levels, and (2) significantly lower credit risk concentration to individual borrowers and industry groups.

BIDV – WHAT COULD CHANGE THE RATING DOWN
BIDV’s BCA and, consequently, its ratings could be downgraded if (1) the operating environment weakens significantly or underwriting practices become loose, resulting in a considerable deterioration in the bank’s asset quality; (2) there is a significant deterioration in capitalization; or (3) we assess that government support for BIDV has weakened.

LIEN VIET – WHAT COULD CHANGE THE RATING UP
Lien Viet’s long-term ratings could be upgraded if Vietnam’s sovereign rating is upgraded.
The bank’s BCA and long-term ratings could be upgraded if its adjusted problem loan ratio declines to below 4% and its TCE ratio exceeds 10%.
Loan diversification away from real estate and construction loans would also be positive for the bank’s BCA.

LIEN VIET – WHAT COULD CHANGE THE RATING DOWN
Lien Viet’s long-term ratings could be downgraded if the bank’s adjusted problem loan ratio rises above 7% of its gross loans or if its return on tangible assets drops below 0.7%.

The ratings are also sensitive to a significant weakening in the bank’s funding or liquidity profile.

MILITARY BANK – WHAT COULD CHANGE THE RATING UP
Moody’s will consider upgrading Military Bank’s long-term ratings if (1) Vietnam’s sovereign rating is upgraded, and (2) the bank posts improved standalone credit metrics that lead to a higher BCA.

Moody’s could upgrade Military Bank’s BCA if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country.

MILITARY BANK – WHAT COULD CHANGE THE RATING DOWN
Moody’s could downgrade Military Bank’s BCA and ratings if (1) the bank demonstrates a material deterioration in its capital adequacy, or (2) the operating environment deteriorates significantly, against the backdrop of a loosening in the bank’s underwriting practices, thereby exposing it to asset-quality risks.

OCB – WHAT COULD CHANGE THE RATING UP
Moody’s will consider upgrading the BCA if the bank’s adjusted problem loan ratio falls below 4% and its TCE ratio exceeds 10%. Loan diversification away from real estate and construction loans, which Moody’s considers as high risk in Vietnam, would also be positive for the BCA. In addition, an improvement in Vietnam’s Weak Macro Profile would be BCA positive.

The B2 long-term ratings could be upgraded if both the following conditions are met: the bank’s BCA is upgraded and Vietnam’s sovereign rating is upgraded.

OCB – WHAT COULD CHANGE THE RATING DOWN
OCB’s long-term ratings could be downgraded if its adjusted problem loan ratio rises above 10% of gross loans, or if its TCE ratio drops significantly below 7%. The ratings are also sensitive to a significant weakening in the bank’s liquidity.

SHB – WHAT COULD CHANGE THE RATING UP
Moody’s will consider raising SHB’s BCA if its financial results demonstrate sustained improvement in asset quality and loss-absorbing buffers, including loan-loss reserves and capital buffers. A reform program that drives sustainable recapitalization, greater transparency and more effective risk management could also have positive rating implications for SHB.

Moreover, Moody’s could upgrade the BCA if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country.

SHB – WHAT COULD CHANGE THE RATING DOWN
The bank’s BCA could be downgraded as a result of a material deterioration in its asset quality and capital adequacy levels.
The long-term ratings could be downgraded if there are signs that necessary government support may not be forthcoming to restore economic solvency.

SACOMBANK – WHAT COULD CHANGE THE RATING UP
The ratings could be upgraded if the bank materially improves its solvency profile, by successfully repossessing and disposing of collateral, including writing off large parts of its problem assets. Sustainable improvements in the bank’s liquidity profile will also be positive for the rating. Furthermore, a substantial core capital increase will be positive for the ratings.

However, Moody’s see a low probability of the bank being recapitalized.

SACOMBANK – WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the bank achieves only limited success in cleaning its balance sheet through collateral disposals in the next 12-18 months, or if its liquidity profile deteriorates below its currently weak level.

TPBANK – WHAT COULD CHANGE THE RATING UP
Moody’s will consider upgrading the BCA if both conditions are met: the adjusted problem loans ratio decreases to below 4%, and TCE ratio exceeds 10%. A material reduction in the market funds ratio will also be positive for the BCA.

The B2 long-term ratings could be upgraded if both conditions are met: BCA is upgraded and Vietnam’s government ratings is upgraded.

TPBANK – WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the problem loans ratio — as adjusted by Moody’s — increases in excess of 10% of gross loans, or if the TCE ratio drops significantly. The ratings are also sensitive to a significant weakening in the liquidity profile.

The rating could be downgraded if the government rating is lowered, or if the Macro Profile on Vietnam is revised downwards.

VIB – WHAT COULD CHANGE THE RATING UP
Significant improvements in asset quality, coupled with a stable TCE ratio, would be positive for the BCA and credit ratings. Credit ratings could also be upgraded if the sovereign rating is upgraded.

VIB – WHAT COULD CHANGE THE RATING DOWN
The ratings could be downgraded if the bank’s asset quality deteriorates to such an extent that potential credit losses almost fully deplete its loss-absorbing buffers. A significant deterioration in capital and liquidity metrics will also be negative for the rating.

VIETINBANK – WHAT COULD CHANGE THE RATING UP
Material improvements in asset quality and the TCE ratio will be positive for the bank’s BCA. The long-term ratings of VietinBank could be upgraded if the sovereign rating is upgraded.

VIETINBANK – WHAT COULD CHANGE THE RATING DOWN
The BCA of the bank could be downgraded if there is a material deterioration in its financial metrics, such as a weakening of its asset quality or TCE ratio. The bank’s long-term ratings will come under downward pressure if there is a multi-notch downgrade of the BCA, or if the assumptions for government support are lowered.

MSB – WHAT COULD CHANGE THE RATING UP
A material reduction in problem assets, including the bank’s Vietnam Asset Management Company balance, could lead to upward rating pressure. Improved profitability will also be positive for the rating.

MSB – WHAT COULD CHANGE THE RATING DOWN
The rating could be downgraded or the outlook revised to stable or negative if there is a further deterioration in asset quality and a material depletion of the bank’s capital buffers in the medium term.

VP BANK – WHAT COULD CHANGE THE RATING UP
The long-term ratings could be upgraded if Vietnam’s sovereign rating is upgraded.
Moody’s will also consider raising VP Bank’s BCA and long-term ratings if its financial results demonstrate sustained improvements in asset quality and loss-absorbing buffers, including loan-loss reserves and capital buffers.

Moreover, Moody’s could upgrade the BCA of the bank if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile for the country.

VP BANK – WHAT COULD CHANGE THE RATING DOWN
VP Bank’s long-term ratings could be downgraded if the bank pursues an overly aggressive expansion strategy that leads to a loosening of underwriting practices, which then pose asset-quality risks, or a material decline in capitalization.

TECHCOMBANK – WHAT COULD CHANGE THE RATING UP
Moody’s will consider upgrading the bank’s ratings if both conditions are met: (1) the sovereign rating of Vietnam is upgraded, and (2) the bank posts improved stand-alone credit metrics that lead to a higher BCA. Moreover, the BCA of the bank could be upgraded if the macroeconomic and operating conditions for banks in Vietnam improve, leading to a higher Macro Profile.

TECHCOMBANK – WHAT COULD CHANGE THE RATING DOWN
The BCA and credit ratings could be downgraded in case of a material deterioration in the bank’s solvency and/or liquidity metrics.

Source: Biznews

S Korean’s cinema chain CJ CGV plans IPO for Vietnamese unit

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South Korea’s largest multiplex cinema chain CJ CGV aims to list its Vietnamese arm CGV Vietnam on the Korean Stock Exchange to raise fresh capital to strengthen its leading position in the Southeast Asia market, Korea’s Pulse News reported.

South Korea’s largest multiplex cinema chain CJ CGV, which wholly owns CGV Vietnam Holdings, was said to send a preliminary application for initial public offering (IPO) to the Korean Exchange.

That would make CJ CGV the fourth Korean company to float its foreign affiliate on the stock market, after LS Cable & System Asia, Hwaseung Enterprise, and Doosan Bobcat, the portal added.

Founded in June 2004, CGV Vietnam is now the largest cinema operator in Vietnam with a 45.3 per cent market share in the first quarter.

Recently, Vietnam-based media company Phuong Nam Cultural JSC proposed to sell 12.5 per cent stake in CGV Vietnam to real estate developer Black Diamond Investment JSC.

After the transaction, which is scheduled for July 5, the ownership of Phuong Nam in the cinema operator will reduce from 20 per cent to 7.5 per cent.

CJ CGV is a unit under CJ Group – one of the largest diversified economy groups of South Korea which is present in 21 countries around the world. Its Vietnamese arm posted a net profit of 8.3 billion won ($7.55 million) on a consolidated basis last year. It owns 337 screens in 55 cinemas across the country.

By Quynh Nguyen

Source: dealstreetasia

The new brands in the cooking oil market of VN

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Vietnamese companies are dominating the cooking oil market despite the presence of big foreign brands.

The cooking oil consumption level in Vietnam is less than 10 kilograms per head per annum, lower than the WHO recommended level of 13.5 kilograms. However, the figure is expected to rise to 16.2-17.4 kilograms by 2020 and to 18.6-19.9 kilograms by 2025.

According to Nielsen, Vietnam’s cooking oil market is valued at VND30 trillion and is growing, thus attracting investors.

Kido, established as a sweets manufacturer, sold its sweets production division and joined the cooking oil market. It quickly became a new influence in the market following a series of M&A deals.

Most recently, Kido took over Golden Hope Nha Be, a joint venture between Vocarimex and Sime Darby Plantation from Malaysia. Prior to that, Kido acquired the controlling stake at Vocarimex and Tuong An Vegetable Oil.

However, though the market is promising, it is not easy to make money.

Opening a $130 million soybean oil plant in 2011, Bunge, a group from the US, still had not made any profit when it faced an import tariff cut to zero percent. After four years, it had to sell 45 percent of shares to Wilmar from Singapore in July 2016.

Acecook, a well-known instant noodle brand, stopped working in the cooking oil manufacturing sector.

The market penetration cost is high as enterprises have to spend big money on marketing and advertisements to obtain market share, while the profit margin is small and the risk is high.

The Ministry of Industry and Trade (MOIT) once helped Vietnamese enterprises avoid direct confrontation with foreign companies by raising the import tariff.

However, the safeguard duties against imports terminated in May 2017. This has paved the way for imports to flood Vietnam, putting pressure on domestic companies.

Tran Le Nguyen from Kido said there is cutthroat competition between Vietnamese and foreign brands.

Musim Mas from Singapore, one of the world’s largest vegetable oil manufacturers, set its plant in Vietnam with investment capital of $71.5 million and designed capacity of 1,500 tons per day. Through ICOF Vietnam, the distributor, Musim Mas brings high-end products to the domestic market.

Vietnamese firms have also made heavy investments to improve capacity. Vocarimex has been developing material areas to ease reliance on input material imports. It has shifted to make peanut oil and sesame oil and joined forces with catfish businesses to produce fish oil.

For Kido, by cooperating with Felda Global Ventures (FGV), a palm oil grower and manufacturer, and Indo-Trans Logistics (ITL), it would have both a stable material supply and reasonable transportation costs.

By Kim Chi

Source: Viet Nam Net

Korean companies keen on Vietnamese beauty market

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Photo: SeongJoon Cho/Bloomberg via Getty Images

Many Korean beauty brands are looking to expand their operations to tap into the fast-growing Vietnamese market.

Dominic OH, general director of Korea International Exhibition Centre, said that, Vietnam is becoming an attractive destination for Korean beauty companies. “In 2017, around 100 Korean companies visited Vietnam to explore the market.

This year, a delegation of 150 Korean companies continues to showcase products and services in the Mekong Beauty Show from June 14 to 16 in Ho Chi Minh City,” he noted.

According to OH, the Korean beauty industry continues to be among the most important drivers of the beauty event as they are looking for potential distributors and retailers to penetrate the lucrative market.

Nguyen Van Minh, vice chairman of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association, said that Vietnam is an emerging market for beauty and personal care products with an annual growth rate of 30 per cent in the past few years.

According to International Monetary Fund, the four countries of the Mekong River system will achieve a combined GDP of $441 billion in 2020. Vietnamese consumers spent $6 billion on beauty products in 2017.

“Vietnam is also leading the growth in the region. It is the fastest growing market for consumer goods in Southeast Asia. Thus, several beauty companies are looking for opportunities to extend their presence in Vietnam, including those from Korea,” he said.

Korean beauty companies have also taken the spotlight at Mekong Beauty Show 2018 with more than 400 brands. In the exhibition, Korean companies also present a wide range of Organic K-beauty products and beauty trends for Vietnamese consumers.

Mekong Beauty Show 2018 also hosted other exhibitors from Europe, Thailand, Malaysia, Singapore, Indonesia, China, Taiwan, Vietnam, Cambodia, Laos, Myanmar, and many other countries to present Vietnamese industry professionals with new technology and innovation..

More than 150 buyers from Vietnam, Cambodia, Laos, and Myanmar have visited the show to source products and seek for new partnerships, opening up new opportunities for the market.

Source: VIR

Vietnam police arrest six Taiwanese for allegedly swindling $300,000

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The Taiwanese men are seen in Quang Nam Province, Vietnam. Photo: Tuoi Tre News

Vietnamese authorities are detaining six Taiwanese suspects in connection with a scam that yielded them nearly US$300,000, police in the central province of Quang Nam said on Tuesday.

The foreigners were Chung Shao Teng, Chang Seng Ping, Chang Chia Pin, Bian Zong Xun, Chang Fu Lung and Lo Yu Hsuan.

Six Vietnamese are also being held for their involvement in the racketeering.

The Taiwanese and Vietnamese nationals were accused of defrauding to illegally appropriate property and failing to report the crime to authorities, the police said without elaborating how the charges were divided amongst the captured.

In early June, a woman in Quang Nam known as H.T.P. told the local police that she had been deceived by a group of men into giving them over VND1.9 billion ($84,000), according to the case file.

The woman received a phone call from a man who at the time identified himself as Hai, claiming to be a Ho Chi Minh City-based official of the General Department of Public Security, a section of the Ministry of Public Security.

Having told P. the exact number and issue date of her ID card, Hai said her two bank accounts were implicated in an international drugs trafficking ring under investigation.

He demanded her to disclose the probe to no one else and transfer all her bank savings, more than VND1.9 billion ($84,000), to a person named D.V.Q. in Ho Chi Minh City for safekeeping since her account information had been stolen.

She did just what was asked by Hai, who subsequently also required her to burn all documents related in the transaction.

The twelve suspects were arrested following the cooperation between the police in Quang Nam and the southern metropolis.

The putative fraudsters sought for personal information of Vietnamese people on the Internet, and made telephone calls by a communication service known as Voice over Internet Protocol, according to police records.

Their major trick was pretending to be officials from law enforcement agencies who are dealing with criminal cases so that they can dupe the victim into sending bank savings to them.

Between early May and mid-June, multiple Vietnamese people fell prey to the above the scam of the group, who received nearly VND7 billion ($308,000) from the scheme, police added.

By Thai Xuan