Vietnam Insider - Page 1381 of 1529

Over 21,000 People Infected With Dengue Fever since the beginning of 2018

Advertisements

Russia’s Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) on Wednesday said over 21,000 people have been infected with the Dengue fever since the beginning of 2018.

The Russian health watchdog added that four people have died from the disease.

“Since the beginning of the year, 21,500 cases of the Dengue fever have been registered in Vietnam.

“During the first six months of 2018 four cases of the disease in Vietnam resulted in deaths,’’ the statement said.

The watchdog pointed out that within last several years some cases of the Dengue fever had been registered in Russia among people, who visited Vietnam, Thailand, Indonesia, India as well as Hong Kong and the Maldives.

In 2016, 145 cases of the Dengue fever were registered in Russia, 196 cases in 2017, while in the first six months of 2018 a total of 113 cases were registered in the country.

The Dengue fever is a viral disease transmitted by mosquitoes found in many areas in the world, including in the countries of Southeast Asia.

Symptoms might include headache, vomiting, skin rash and low blood pressure among others.

It is mostly non-fatal; however complications could lead to the death of a patient.

Source: Independent

Key growth drivers in Vietnam are transport and energy infrastructure: Report

Advertisements

Vietnam’s economy grew 7.1 per cent in the first half of 2018, mainly driven by industry, construction and services – particularly wholesale and retail, transport, banking and finance, education and healthcare. Industry and construction expanded 9.07 per cent, while services rose 6.9 per cent.

While growth slowed to 6.8 per cent in 2Q18 owing to high base effects, high transport and energy infrastructure investments will still remain key growth drivers in the second half of 2018, said UOB economist Manop Udomkerdmongkol in a note. Business Times reports.

Industrial production will likely be boosted by continued opening of new multinational enterprises in export-oriented manufacturing and processing industries. In the first four months of 2018, these industries attracted foreign direct investments (FDI) worth US$4.5 billion, accounting for 55.6 per cent of total FDI.

UOB believes that exports and tourism will benefit from a broad-based global recovery, and private consumption should be supported by rising household income and an expansion in private credit.

But the economy is still vulnerable to economic risks amid rising global protectionism and escalating trade tensions between the US and China – Vietnam’s two largest trading partners.

The strong growth eases pressure on the government to add more stimuli to achieve its annual growth target of 6.7 per cent. Hence, another policy rate cut may not be on the cards, even as other Asian central banks have started to pursue monetary policy normalisation by raising policy rates gradually.

Read the full report here.

Taxes in Vietnam at a glance

Advertisements

Vietnam has seen heated debate over taxes recently. With public expenditure rising more quickly than GDP growth, the Ministry of Finance has come under some pressure to raise tax revenues.

But its proposal last year to raise the value added tax (VAT) from 10 per cent to 12 per cent from 2019 met with strong opposition. In January 2018, the government said it would make this hike a little more gradual, raising it to 11 per cent from 2019 and then to 12 per cent by 2020. Asean Business reports

By May however, the Finance Minister said that it would not raise the VAT after all, keeping it at 10 per cent. This was after the government had proposed a property tax in April.

Here are the key tax rates:

Corporate Tax: 20% standard rate

Vietnam imposes a standard corporate tax rate of 20 per cent on a company’s profits, including the profits of its affiliates and branches. Taxable revenue includes income from the sale of goods, provision of services, leasing or sale of assets, joint venture operations and more.

A company is generally considered to be resident if it is incorporated in Vietnam. Residents are taxed on worldwide income, while non-residents are taxed only on Vietnamese-source income.
Enterprises operating in the oil and gas, and natural resources sectors are levied higher tax rates, ranging from 32 per cent to 50 per cent, depending on particular projects.

Incentives for investment

The government offers preferential corporate income tax rates to encourage investment in specific projects or sectors.

A 10 per cent rate for enterprises in sectors including education and training, occupational training, healthcare, culture, sports, environment, social housing, forestry, agriculture, fishing, salt production and publishing. This is subject to conditions.

A 10 per cent rate for a 15-year period may be offered for projects including:

New investment projects in economic zones, high-tech zones and locations with challenging socio-economic conditions

New investment projects engaged in research and technological development, cultivation of high-tech enterprises, investment in key infrastructure projects such as water plants, power plants, bridges, railways, airports, seaports and others

Large scale manufacturing projects, with investment capital of more than 12 trillion Vietnamese dong

A 17 per cent rate for a 10-year period may be offered for projects including:

New investment projects based in areas with difficult socio-economic conditions.

New investment projects engaged in producing high-qualified steel or energy-saving products, manufacturing machinery and equipment for agriculture, forestry, aquaculture, salt production, irrigation equipment and so on.

Other tax exemptions and reductions are offered on certain conditions too, such as a tax holiday of up to four years and a 50 per cent tax reduction for up to nine subsequent years.

Indirect Tax: 10% VAT

Vietnam currently levies a standard value added tax (VAT) of 10 per cent on most common goods and services, and a special sales tax of 5 per cent to 150 per cent on certain types of goods and services.

Reduced rates of 5 per cent and 0 per cent VAT apply to specific categories of goods, such as medical equipment and instruments, fresh foodstuffs and scientific and technical services (5 per cent), and the exports of goods and services (0 per cent).
Withholding Tax

Dividends: No tax is imposed generally on dividends remitted overseas. But if they are paid to an individual, a 5 per cent withholding tax is levied.

Interest: Interest paid to a non-resident is subject to a 5 per cent withholding tax.

Royalties: Royalties paid to a non-resident are subject to a 10 per cent withholding tax.

Personal Tax: 35% top marginal rate

Vietnam’s personal income tax rates follow a progressive schedule that ranges from 5 to 35 per cent, depending on the individual’s yearly income. The top marginal rate of 35 per cent applies to chargeable income above 960 million Vietnamese dong.

Vietnamese residents are taxed on their worldwide income, while non-residents are taxed only on Vietnam-sourced income. An individual is considered resident if he spends 183 days or more within a 12-month period in Vietnam, maintains a residence in Vietnam, or has leased a residence in Vietnam for 183 days or more within a tax year and can prove residence elsewhere.

What’s taxable under the personal income tax regime? All employment income, including employment benefits in both cash and kind. Dividends, interest (except interest on bank deposits, life insurance and government bonds), capital gains from securities trading, and various other types of income such as that from franchising, inheritance and prizes are also taxable.

To get advice on starting a business and taxes in Vietnam, you may contact GBS – a business and legal services firm in Vietnam via email: info@gbs.com.vn. Hotline, Viber, WhatsApp at: +84903189033 or visit the website: https://gbs.com.vn

Survey: Each foreign visitor spends 145 USD daily in Saigon, Vietnam

Advertisements

Average spending of every foreign visitor to Vietnam’s HCMC (Saigon) is US$145 per day.

Vietnam News Agency cited a survey jointly conducted by the municipal Tourism Department and the Statistics Office in 2017 on last few days.

Their accommodation spending was the largest expense (33 percent), followed by food and beverage services (20 percent), shopping (18 percent) and travelling (10 percent),

Overseas visitors who spent 4-7 days in the city accounted for 48 percent of all foreign visitors, while those who stayed 8-14 days made up 40 percent.

Sixty-nine percent of foreign tourists chose more flexible “free and easy” tours, while the remaining 31 percent joined group tours.

Last year, Saigon hosted nearly 6.4 million international arrivals and 24.9 million domestic visitors.

In the first six months of this year, the city welcomed over 3.8 million foreign visitors, up 26.5 percent on-year, according to the department.

Meanwhile, its tourism revenue stood at VND62.6 trillion (US$2.7 billion), up 15.7 percent on-year.

Vietnam plans to receive 16-17 million foreign visitors and 78 million domestic ones, and reap tourism revenues of US$27.5 billion in 2018, according to the Vietnam National Administration of Tourism.

Hanoi cable car proposed to ease cross-river congestion

Advertisements

The cable cars would connect Long Bien Bus Station in Hoan Kiem District with Gia Lam Bus Station in Long Bien across the Red River

The proposal by a French firm to build cable cars over the Red River in Hanoi to ease traffic congestion has been questioned.

The cable cars proposed by the POMA Group, a French ropeway transportation firm, would connect Long Bien Bus Station in Hoan Kiem District with Gia Lam Bus Station in Long Bien across the Red River.

The line which has an investment of VND1.3 trillion (USD59 million), would be five kilometres long, including 1.2 kilometres over the Red River.

Dr. Nguyen Xuan Thuy, former director of the Transport Publishing House under the Ministry of Transport, believed it was unprecedented project.

“Building cable cars in a delta region is a rare case. It is often seen at cities located in high mountainous areas like Switzerland. No country in the world has ever built cable cars between stations”, Thuy said.

The cable cars would have a capacity of 4,000 people per hour, which he claimed was not very effective to deal with traffic jams.

Dr. Pham Sy Liem, vice president of Vietnam Construction Association, said that cable cars take up little space but it is very important to arrange big parking lots at the two sides of the cable cars. How to build such big parking lots to serve a large number of passengers was the question.

Source: Dtinews

Hanoi deserted as temperature soars to 64 degrees

Advertisements

Many streets in Hanoi have been left deserted during noon due to the blazing hot temperatures.

The severe heatwave which is ravaging the northern and central regions over the last few days seemed to peak today, July 4 with temperatures reaching 63.9 degrees on Nguyen Hoang Ton Street in Bac Tu Liem District.

Temperatures reach 63.9 degrees on Nguyen Hoang Ton Street in Bac Tu Liem District at 12pm on July 4

Streets saw few vehicles passing quickly to avoid the heat.

Quiet Bach Mai Street at noon

Pham Van Dong Street

Nguyen Khanh Toan Street also saw few vehicles

De La Thanh Street

No vehicle on Thang Long Bridge

Yen Phu Street

According to the National Centre for Hydro-Meteorological Forecasting, the heatwave will last until July 6 when showers and thunderstorms are forecasted in the north

Source: Dtinews

Vietnam c.bank willing to intervene after dong hits record low

Advertisements

HANOI, July 2 – Vietnam’s central bank is willing to intervene in the foreign exchange market to ensure stability, its governor said on Monday after the dong currency fell to a record low last week.

The dong hit 22,965 to the dollar on Friday, a drop that the central bank attributed to the U.S. currency’s rise on global markets and recent falls on the Vietnamese stock market.

“The State Bank of Vietnam (SBV) … stands ready to intervene in the foreign exchange market,” the central bank quoted governor Le Minh Hung as saying in a statement on its website.

“Currently we have all necessary tools and plans to intervene in the foreign exchange market, ensuring the control of macroeconomic stability,” the statement said.

Vietnam’s foreign reserves have been hitting fresh record highs this year, standing at around $63.5 billion by end-June, up $11 billion from December last year, the statement said.

Foreign direct investment inflows rose 8.4 percent in the first half of 2018, while the Southeast Asian nation posted a trade surplus of $2.7 billion in the six-month period.

The stock market benchmark VN Index fell as low as 932.66 points on Monday, an intra-day level unseen in more than a month. The index has been retreating from a historic high hit in April of 1,211.34, Reuters data showed.

SBV said it will observe the market closely and is ready to sell foreign currency even at lower-than-market levels to ensure market and macroeconomic stability, the bank said in a separate statement on Monday.

The dong recovered slightly on Monday, trading at 22,952 to the dollar, Reuters data showed.

Source: Tuoi Tre News/Reuters

Foreigners watch World Cup in droves on Bui Vien in Ho Chi Minh City

Advertisements

Many foreigners have gathered at night in restaurants and on the sidewalk of a famous hubbub-filled street in Ho Chi Minh City to share their enjoyment and even disappointment during 2018 FIFA World Cup matches.

After 1:00 am on June 29, over music flaring out from restaurants one was able to hear the sound of excitement from the football spectators in Russia and Vietnamese sports commentators as foreigners were watching World Cup games shown live on several dozen screens along downtown Bui Vien Street, which locals colloquially call ‘Westerners’ Street’ due to the ubiquity of foreign nationals here, although not all of them come from Western countries.

Almost all restaurants on Bui Vien were visited by foreigners, with some even placing chairs on the sidewalk.

In a restaurant at the corner of Bui Vien and De Tham Streets, England fans danced with joy at half-time, only to be saddened by Belgium’s goal five minutes into the second half and Marcus Rashford’s missed chance in the 66th minute.

“It’s fine. England will also enter the next round,” said a 19-year-old British patron named Claudia Ross, giving a strained smile after England lost 0-1 to Belgium in their final group game.

Ross said she loved the atmosphere on Bui Vien, which a hotel staff member recommended to her, and was surprised by the sheer number of screens hung along the road.

Watching football with many others should be more enjoyable than staying alone in a hotel room, she said, adding that she usually joined such gatherings with friends in the U.K.

Billy Smithson, who was in company with two friends wearing jerseys of England’s football squad, said he was strolling along the street when he was attracted by the restaurant’s crowdedness.

“I really like the excitement here. I feel that everyone is football enthusiasts. It’s so great!” he said.

Women watch the England-Belgium match at the 2018 FIFA World Cup in Ho Chi Minh City, Vietnam, June 29, 2018. Photo: Tuoi Tre

An employee at the establishment said it was visited by many customers every World Cup season, and restaurants along Bui Vien installed screens on the façade of their own accord.

The above liveliness was not seen among Japanese nationals watching their home country team play Poland on June 28.

They were seen in small groups drinking glasses of beer while watching the match in restaurants along Le Thanh Ton and Thai Van Lung Streets, where there is a strong Japanese presence, in downtown Ho Chi Minh City.

In an alley that intersects with the latter road and is lined with multiple Japanese-style hotels and restaurants, several Japanese sat on a bench watching the match showed on an outdoor screen.

Foreign patrons watch a 2018 FIFA World Cup match in Ho Chi Minh City, Vietnam, June 29, 2018. Photo: Tuoi Tre

People watch a 2018 FIFA World Cup match in Ho Chi Minh City, Vietnam, June 29, 2018. Photo: Tuoi Tre

A man (foreground) sprawls in a chair while watching a 2018 FIFA World Cup game in Ho Chi Minh City, Vietnam, June 29, 2018. Photo: Tuoi Tre

By Thai Xuan

Source: Tuoi Tre News

Foreign travellers spend more for longer stays HCM City

Advertisements

HCM City authorities are making efforts to ensure foreign visitors extend their stay in the city, and they seem to be paying off.

Last year the city received 6.36 million foreign visitors, up 22.8 per cent from the previous year. Importantly, the visitors are staying longer and spending more.

A survey of the city’s tourism market found that international visitors spent US$145 a day on average last year, equivalent to the amount they had spent in 2016 in Thailand but well below that of Singapore ($254), Beijing ($242) and Taipei ($208).

The corresponding amount for Vietnamese tourists was $69.4.

The survey was done by the city’s tourism department and Statistics Bureau.

HCM City has plenty to offer travellers, and foreigners stayed for 5.21 days on average last year, while locals stayed for 3.6 days.

Some 48 per cent of foreign tourists surveyed said they spent four to seven days in the city, while 40 per cent stayed for eight days.

Last year, tourism authorities stepped up efforts to get foreign visitors stay on for longer, including by organising tourism events.

Bui Vien Street, at the heart of the back-packer area, was turned into a pedestrians-only zone on weekend nights and entertainment activities have been organised here.

The city’s first river bus began last November, connecting Bach Dang Wharf in District 1 with Linh Dong Station in Thu Duc District, and passing through districts 2 and Binh Thanh.

Source: VNS

Hanoi eyes charging third parties for citizen data

Advertisements

The administration of Hanoi is seeking government permission for a pilot scheme where the city will provide third parties with information from its citizen database in exchange for a fee.

The proposal was made by Hanoi chairman Nguyen Duc Chung during a web conference with government leaders on Monday.

Accordingly, the city wants to charge third parties, such as banks or notary offices, for data of citizens in cases where the use of such information can be justified.

Chung estimates that Hanoi will make over VND300 billion (US$13 million) from the sharing of such data.

The chairman also requested government support in the implementation of the plan by reducing paperwork related to the use of IT services in collecting fees from the third parties.

The city wants better coordination between provincial administrations and relevant agencies.

Vietnam’s 2014 Law on Citizen Identification states that the national citizen database is a property of the State and can be shared in certain circumstances.

Information from the database can be accessed by government bodies within their authority and duty, while every citizen is entitled to unrestricted access to their own data.

Third parties that want to get their hands on the information must have a justifiable reason and seek permission from the management authority of the database, the law dictates.

The use of citizens’ data, in any circumstance, must not undermine state secrets, personal secrets, family secrets and the private life of citizens, according to a government decree clarifying the legislation.

Vietnam is poised to officially launch its online database of citizens by early 2019 after years of preparation for a switch from physical documents.

The upcoming digitalized database will provide the same amount of information stored in residence books, birth certificates or national ID cards while only requiring a person to provide three simple details – their full name, personal identification number and place of residence.

According to the Ministry of Public Security, information on Vietnam’s nearly 93 million citizens will be stored at two data centers located in Hanoi and Ho Chi Minh City.

A high-speed data transmission network will be developed to connect all 63 provinces and municipalities of Vietnam, each with their own set of technical equipment to operate and access the online database.

By Tuan Son

Source: Tuoi Tre News

Hedge Fund Veteran Gives Up on Chinese Stocks, increasing investments in Vietnam

Advertisements

Kingsmead’s exit from China proves prescient as rout deepens
Foo’s Kingsmead is increasing investments in Vietnam, Thailand

According to a report by Bloomberg, John Foo, who has managed long-only and hedge funds in Asia for 20 years, has sold out of Chinese stocks for the first time in his career as a money manager.

Foo’s Kingsmead Asset Management ended all bullish and bearish bets on China stocks about two months ago, as trade tensions and domestic credit tightening intensified, he said in an interview. Singapore-based Kingsmead manages about $60 million in an Asia-focused hedge fund and also oversees client money in separate accounts.

“There are indeed cheap Chinese stocks, but there are many uncertainties,” Foo said.

Foo’s decision to exit Chinese stocks has proven prescient as a $2 trillion rout deepened in the past week on concern a trade dispute with the U.S. will damage an economy already struggling with the effects of a deleveraging drive. China’s benchmark stock gauge on Tuesday approached levels last seen during a bout of panic selling in January 2016.

China stocks, mainly those listed in Hong Kong and the U.S., previously accounted for 40 percent of the fund’s net exposure, a gauge of risk measuring the difference between bullish and bearish bets.

It will take the yuan weakening beyond 7.5 to the dollar, “some meaningful deleveraging” and a 30 percent drop in valuations to entice him back, said Foo, who previously managed money at Frontpoint Partners. The yuan touched an 11-month low Tuesday after suffering its biggest decline in 14 years last quarter, and the Shanghai Composite Index closed little changed after falling as much as 1.9 percent.

Kingsmead joins firms such as FengHe Fund Management and Pinpoint Asset Management in cutting allocations to China stocks.

Read more: Trade war has hedge funds diving for cover in China

Kingsmead’s hedge fund has fallen 7 percent this year because it doesn’t hedge currency risks, Foo said, and most Asian currencies have weakened against the dollar. The Asia fund gained 22 percent last year, compared with a 20 percent return for similar strategies tracked by Eurekahedge Pte.

Among the stocks Foo sold were auto-dealers, which are likely to suffer when China slaps a retaliatory 25 percent on U.S.-made vehicles. Tighter credit in China as the government tackles ballooning household debt could also erode auto-dealers earnings growth, he said.

He has also sold Chinese financial stocks and export-related companies, he said, declining to name them.

With China out of favor, Kingsmead is increasing investments in Vietnam, such as Dat Xanh Group, the country’s largest real-estate broker, and Hoa Phat Group, the nation’s biggest listed steelmaker, which are benefiting from rising property and infrastructure demand.

Foo says a prolonged trade war will give companies more incentive to move factories to Southeast Asia.

“The beauty of these stocks is they all have single-digit price-earnings with over 20 percent growth in the next two years or more,” he said.

Kingsmead also likes Thai companies investing in the growing Mekong River region spanning Cambodia, Laos, Myanmar and Vietnam, which is less vulnerable to the trade spat, Foo said.

By Bei Hu

Bitcoin and other Cryptocurrencies: Time to Regulate

Advertisements

In the financial space, anything unregulated and unregistered would cause doubts and uneasiness. In the case of cryptocurrencies, such as bitcoin, financial regulators all over the world have started to find ways to oversee the blockchain, or the record of all cryptocurrency transactions, as well as to address the irregularities presented by these virtual currencies that mostly bypass financial firms, exchanges, and regulated banks. The most popular of all cryptocurrencies, bitcoin, chiefly operates outside of the conventions of a financial system; and this worries regulators as it has the potential to be linked to money laundering, tax evasion, fraud, and terrorist funding.

According to a report by Hogan Injury, in November of last year, a businessman from Brooklyn was charged in a case with promoting currencies, which are backed by investments in diamonds and real estate that, according to the US prosecutors, do not exist. The Securities and Exchange Commission also filed charges.

Earlier this year, more than half a billion dollars in cryptocurrencies from a Japanese exchange called ‘Coincheck’ had been stolen by hackers. Experts say that more of such attacks can be expected in the future, as all of the hackers in the world may now be targeting cryptocurrencies.

For investors and owners of cryptocurrencies, this is worrisome. Here’s what the US regulators are currently doing to address doubts on cryptocurrencies:

Securities and Exchange Commission

SEC is a federal agency responsible for protecting investors and keeping order in markets. In a statement released in March, the SEC argued that under US security laws, digital assets such as coins and tokens offered and sold in initial coin offerings (ICOs) fall under the definition of “security.” The statement may mean that trade digital currencies would be required to be registered with the SEC, just like all of the national securities exchanges such as the New York Stock Exchange.

Internal Revenue Service

For tax purposes, the IRS states that bitcoin must be considered as property; therefore a capital gain or loss must be recorded, or be accessed through the blockchain as if it were an exchange that involves property. If it is used as payment, it should be treated as currency, and the bitcoin price must be converted to its fair market value checked on an exchange.

Department of Treasury

The department is taking the lead and is bringing federal agencies together to coordinate regulation on cryptocurrencies. It has formed a virtual currency working group, which includes the Federal government and the Securities and Exchange Commission, which will be watching bitcoin and other cryptocurrencies closely.

State Laws

Cryptocurrencies started out as “stateless” entities, but the cynicism towards them eventually drew a realization that regulation is necessary. In introducing cryptocurrency regulations, California and New York, which are home to a large number of crypto businesses, are taking the lead. Other states are quickly catching up. The National Conference of Commissioners on Uniform State Laws had voted in favor of providing a model act for the regulation of cryptocurrency businesses at the state level.

There had been measures in regulating cryptocurrency, and we can expect more developments in the future. Reports on irregularities, scams, and fraud surrounding cryptocurrency are indeed alarming, which is why it is important to remain vigilant and cautious in all of your investment activities; and be on the lookout for bitcoin news and other updates on cryptocurrencies.

Notes: None of the content on Hoganinjury.com is legal advice nor is it a replacement for advice from a certified lawyer. Please consult a legal professional for further information.

Feature image source: Pexels.com

Startups see blockchain opportunities in ad industry

Advertisements

Only one percent of companies around the world are starting to research the application of blockchain in online advertising, but the potential is great, including in Vietnam.

According to Zenith, in 2018, the global ad market had revenue of $579 billion, of which online ads brought $269 billion. The revenue from online ads is expected to reach $350-400 billion by 2022.

The potential of the online ad industry is great, but according to Bigbom’s CEO Nguyen Van Vung, there are four problems that the world online ad industry is facing.

First, the rampant invalid clicks. The situation is so serious that many companies have developed a tool to discover invalid clicks and report them to Google.

Second, the statistical frauds. No one can say for sure if Facebook and Google’s reports are 100 percent exact, because no one can penetrate into their systems for examination.

Third, the money repudiation. The repudiation ratio in Vietnam is very high. Fourth, the incorrect implementation of contracts. Each side implements in its own way.

WFA (the World Federation of Advertisers), which includes big brands such as McDonald’s, Visa and Unilever, predicted that the online ad industry would lose $50 billion a year from now to 2025 because of fraud.

Facebook users do not have the right to use the content created by them. Only the owners of Facebook, Instagram and Youtube have the proprietorship.

“Social networks use your data to build their ad systems and make money on the data. Vietnam’s big content firms such as Orion and Cat Tien Sa produce good content and join YouTube, attracting users. But can they do business on the network of users? The answer is no,” said Nguyen Minh Thao, CEO of Umbala.

All these problems would be settled by blockchain.

The number of companies using blockchain in advertisement and marketing is modest, just one percent. Vung from Bigbom, which is developing technology apps for advertisement and marketing industry on the basis of blockchain, said that opportunities are available for all.

To date, there is no blockchain platform that can settle the problems in the ad industry. Blockchain is growing but not developing in depth. However, Vung said a specific blockchain app for the ad industry will be available in three to five years.

Of four problems the ad industry is facing, Bigbom decided to deal with the third – the repudiation and late payment. It has built up Bigbom Eco, an ecosystem for platform, product and services related to digital advertisements. Advertisers, ad platforms, ad agencies or publishers could join the system.

By Mai Thanh

Source: Vietnamnet

More Vietnamese startups jump into ride-hailing app market

Advertisements

Uber’s departure from the Vietnamese market has created a space for Vietnam’s apps to develop. Vato, Aber, 123xe and the newcomer Fastgo are among them.

To date, Vietnam has 8-10 apps to compete with Grab, while Go-Jek from Indonesia has joined the market and MVL from Singapore plans to debut in July.

Huynh Le Phu Phong, CEO of Aber, said the riding app is still full of potential. Just several days after debut, Aber received many clients.

Two days after launching its app, FastGo got 1,500 drivers.

Both FastGo and Aber follow specific policies to retain users and drivers. FastGo, for example, has committed not to collect fees based on revenue, but to collect no more than VND30,000 a day from drivers. It has also committed to maintain a VND7,900 per kilometer fee and not to raise fees in rush hours.

Le Phu Phong from Aber said to retain drivers, Aber has promised not to collect fees from them if the monthly revenue is less than VND500,000.

Phong believes that the advantage of the startup is the low operation cost. Aber created its own map on iPad.

Meanwhile, Xelo pursues a special pricing policy under which drivers set up prices for services. As such, in order to get clients, drivers need to offer good prices and the prices must not be 30 percent higher in bad weather.

VATO received a huge investment from Phuong Trang Transport JSC. Two weeks after launching Vato, the ride hailing app which has spent VND2.2 trillion has attracted tens of thousands of people registering to use the service each day, while at least 5,000 drivers have joined the network. However, after a period of operation, VATO had to re-build its business strategy as the number of drivers and clients was beyond expectations.

An analyst commented that with limited financial capability, made-in-Vietnam apps cannot run big sale promotion programs as Uber and Grab did in the past to compete with rivals.

Who will be the winner?

Vietnam is a potential market for investors, which explains why big foreign players still plan to jump into the market though Uber has left.

Analysts noted that Grab has big advantages with a large amount of clients and drivers who joined Grab staff after leaving Uber.

However, Vietnamese investors are optimistic about their future. Xelo’s founder Nguyen Truong Giang said that if Vietnamese apps receive investments and have good development strategies, competing with Grab will not be an impossible mission.

By Thanh Mai

Source: Vietnamnet

ANALYSIS: Bamboo who? Vietnam startup’s ever-shifting strategy

Advertisements

Vietnamese start-up Bamboo Airways’ commitment to 20 Boeing 787-9s represents a startling growth in ambition, but the prospective carrier’s strategy is far from clear.

Bamboo Airways is nothing if not ambitious. First announced by local property conglomerate FLC Group in early 2017, Bamboo Airways would initially serve Vietnam leisure destinations. Congested airports such as Ho Chi Minh City’s Tan Son Nhat and Hanoi’s Noi Bai would be avoided. flightglobal.com‘s analysis

Early plans called for Bamboo to fly international passengers direct to secondary cities, addressing the clear market opportunity of flying North Asian tourists to Vietnam.

“With new flights connecting provinces with tourism potential, Bamboo Airways will not create additional pressure on overloaded airports, and will help fully exploit under-used infrastructure,” said general manager Dang Tat Thang.

EARLY 2018 COMES…AND GOES…

A media report in early 2017 quoted FLC Group chairman Trinh Van Quyet as saying that the carrier would lease seven Airbus aircraft and start services in early 2018.

The early 2018 service start never happened, but in March 2018 a memorandum of understanding was signed with Airbus for 24 A321neos. This despite the carrier’s lack of approval to start services. Should all go well, it said it would even go for an additional 24 A321LRs.

In April, FLC revealed that it was recruiting for 92 pilots, 250 cabin crew, 90 technical staff, and nearly 100 administrative employees. It said that it wants to operate 40 routes by 2023, consisting of 24 domestic and 16 international destinations.

In the first two years of operation, the carrier said that it planned to operate between eight and 10 domestic routes. Internationally, China, Hong Kong, Japan, Singapore, South Korea, Taiwan and Thailand were identified as targets.

LATE 2018 START?

FLC added that it expected to start services at the end of 2018. Curiously, it said that it would only submit its official application for an air operator’s certificate in July. Why this hadn’t been done to ensure a launch in early 2018 wasn’t clear.

But, just in case anyone doubted its ambitions, Bamboo committed to 20 787-9s at the end of June. Apparently, it has even paid deposits to Boeing. The deal was announced in a Washington DC ceremony attended by no less than Vietnam’s deputy prime minister, Vuong Dinh Hue.

During all this there was little mention of the 2017 strategy of flying leisure passengers to secondary Vietnamese cities. The new plan, which presumably complements the 2017 leisure destination plan, calls for operating 787-9s from Ho Chi Minh City and Hanoi – Dang’s “overloaded airports” – to Europe and that holy grail of Vietnamese airlines, the USA.

Conventional airline thought would suggest that the 787s would provide feed in Hanoi and Ho Chi Minh City for the carrier’s fleet of A321neos, but again this would contradict the 2017 idea of avoiding big, congested hubs.

While the 787s are only due for delivery from 2020-2021, Bamboo apparently feels this is too late, and hopes to push this to 2019. The aircraft will have four classes: first, business, premium economy and economy.

During the June ceremony, incidentally, FLC chairman Trinh told FlightGlobal that the carrier continues to make progress toward a local AOC, and that he expected it soon. Just two months earlier, however, the carrier had said that the AOC application would only be made in July.

ORIGINAL THINKING: THE HANOI-HO CHI MINH CITY ROUTE

Anyway, Trinh added that Bamboo would launch sales in October 2018, with flights to begin in the fourth quarter. The airline’s headquarters will be in the coastal city of Qui Nhon, which it plans to link with Hanoi in Bamboo’s inaugural route. It also plans to begin flights between Hanoi and Ho Chi Minh City. This is one of Asia’s most competitive routes and in sharp contradiction to the 2017 plan to avoid hubs.

Irrespective of its strategy, several obstacles remain in Bamboo’s path: it is not a given that Vietnam will achieve FAA category 1 status, although there appears to be progress in this area. Despite apparently high-ranking connections, FLC also has yet to receive its local AOC. Other parties, including AirAsia and local MRO firm Aerostar, have tried for years to launch airlines, but to no avail.

Even if Bamboo gets off the ground, getting up to scale and becoming profitable competing against the likes of VietJet is far from easy.

POTENTIAL A380 CUSTOMER?

The carrier’s website adds little clarity. While it states that it hopes for a late 2018 launch, it acknowledges the regulatory challenges.

Aviation enthusiasts, however, will enjoy the site’s casual use of pictures. On one page is an artist’s depiction of a pure white A380 taking off. The caption reads “Bamboo Airways will take off at the end of 2018.” Another page has a 747-400 landing at dusk. The caption reads “No one knows when Bamboo Airways can take off.”

The two pages could well have been posted at different times, but this is not clear.

The site also makes much of the carrier’s plans to avoid Vietnam’s big hubs – although recently it seems company leadership has changed tack on this.

For the time being, Flight Fleets Analyzer shows that Bamboo Airways has LOIs to order for 24 A321s and 20 787-9s. Airbus and Boeing will, of course, hope these are firmed up. The upstart unit of FLC Group has made headlines, but it remains to be seen if Bamboo’s strategy, or lack of one, will deliver a success story.

By GREG WALDRON