Malaysia’s GHL Systems truncates deal size in Vietnam’s MPOS Global

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Kuala Lumpur-based payment solutions provider GHL Systems Bhd has downsized its proposed acquisition of equity interest in Vietnam’s MPOS Global to 6.1 per cent instead of 31.16 per cent planned earlier citing non-fulfillment of certain conditions, it said in a filing on Bursa Malaysia today.

GHL also cited regulatory requirements, MPOS Global’s capital needs and business environment in Vietnam as other reasons for truncating the size of the transaction.

“GHL and MPOS have on 18 June, 2018 executed a share subscription form for GHL to subscribe for 326,797 new ordinary shares of MPOS Global (representing 6.1 per cent of the total paid-up shares of MPOS Global) at the price of $1.53 per MPOS Global share on the same basis as the revised share subscription agreement,” the filing noted.

“The 6.1 per cent equity interest in MPOS had been settled via the $500,000 deposit paid for the proposed acquisition,” said GHL.

The closing date for MPOS Tehcnology JSC has been extended to December 14, 2018. GHL declared the proposed acquisition is now completed with the firm owning 6.1 per cent stake in MPOS Global.

Last November, GHL had agreed to invest more than $3.3 million into MPOS Global, as part of its efforts to strengthen its presence and gain immediate access in Vietnam.

Earlier this month, it raised $21.2 million from UK-based private equity firm Apis Partners by way of 65 million newly issued shares subscription issued at RM1.30 per share. Last year, another PE firm Actis bought a 44.37 per cent stake in GHL for $67.25 million from previous investor Creador and GHL executive vice-chairman Simon Loh.

By Ka Kay Lum

Source: dealstreetasia

Intel has assembly and test center in Vietnam

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(Reuters) – Intel Corp, the world’s biggest chipmaker by revenue and a prominent U.S. manufacturer, could avoid the most severe effects of a new list of Chinese tariffs proposed by U.S. President Donald Trump by shifting its production among its facilities, analysts said Monday.

On Friday, Trump said he planned to push ahead with tariffs on $50 billion worth of Chinese imports. While chips were largely spared from the initial list of targeted goods released in April, U.S. trade officials on Friday released a second tariff list of 284 products worth $16 billion that includes the processor and memory chips at the heart of Intel’s business.

Those tariffs will not go into effect until after a public comment period, and there is a chance that chips could be cut from it before it is made final, analysts said. But Intel shares dropped 3.4 percent to $53.22 on Monday on investor concerns. Late Monday, Trump also announced he might pursue $200 billion more in tariffs on Chinese goods, though it was unclear whether the list would include more chips or computing products that might impact Intel.

Intel could shift its production strategies to avoid much of the blow. Intel produces raw chips at six so-called wafer fabs, with three in the United States, one in Ireland, one in Israel and one in China. From there, chips go to so-called assembly and test facilities.

After that, they are sold to Intel’s customers, large computer brands or contract manufacturers who work on their behalf. Most of those entities are legally based in China because that is where most electronics are built, and that explains why Intel booked $14.8 billion in China revenue in 2017.

But it is Intel’s $12.5 billion revenue from the United States that is at risk. If Intel makes a chip at its U.S. plants in Oregon, Arizona or New Mexico, then sends it to China for low-level assembly work and then brings it back so it can be put into a device manufactured in the United States, the chip would get hit by the tariff.

But Intel also has assembly and test centers in Costa Rica, Malaysia and Vietnam. Chips from non-Chinese wafer fabs sold to American companies that pass through those facilities likely would not be hit.

“My sense is they can probably skip most of the tariffs,” said Dan Hutcheson, CEO of VLSI Research Inc.

Intel does have a factory in Dalian, China where it makes memory chips, which would be directly impacted by the tariff if purchased by U.S. customers directly. While memory chips made up only $3.5 billion of Intel’s $62.7 billion in revenue last year, they are viewed as a key driver of the company’s plan to diversify away from its heavy dependence on CPU chips.

“Trade wars in general are going to be bad for the global economy, and semiconductors tend to be global,” said Bernstein analyst Stacy Rasgon.

The assembly and test work that many chipmakers carry out in China makes up only about 10 percent of the value of a chip, with the design and manufacturing making up the bulk of a chip’s value. Jimmy Goodrich, vice president of policy for the Semiconductor Industry Association, said chipmakers could be forced to pay tariffs on their own products simply for doing a small portion of the work in China.

“We should be talking about a policy frame work that supports, not slows down, an industry that, unlike many others, still manufactures here in the U.S.,” Goodrich said.

Death Sought for Japanese Man in Murder of Vietnamese Girl

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TOKYO — Japanese prosecutors have called for the death penalty for Yasumasa Shibuya, a Japanese man who is accused of murdering a 9-year-old Vietnamese girl in Chiba prefecture on March 24 last year.

On the final day of the trial yesterday, prosecutors asserted that Shibuya, 47, committed a “cold-blooded, heinous and cruel” crime, and demanded the highest penalty for him.

However, defence lawyers argued the defendant was innocent and the evidence was not strong enough to charge him.

The Chiba Court announced it will issue a ruling on July 6.

Shibuya is accused of murdering Lê Thị Nhật Linh, a third grader living in Matsudo town.

Linh disappeared shortly after leaving her home on foot for her school on March 24, 2017. Her body was found two days later in Abiko, Chiba. She is thought to have been choked to death, based on marks found on her neck.

Shibuya was arrested on April 14, 2017 on suspicion of dumping Linh’s body. The same day, Japanese police served a new arrest warrant on the man, charging the suspect with murder and abandonment of the victim’s body, after tests results showed that DNA taken from Shibuya matched those of samples found on the victim’s body.

Shibuya was head of the parents’ association at the elementary school in Matsudo where the victim attended. He lives about 300 metres from the victim’s home.

Source: Vietnam Plus

World Cup 2018: England beat Tunisia, Belgium thrash Panama

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Captain Kane scores a double to settle England’s nerves in its opening game of the tournament.

A stoppage-time header from two-goal Harry Kane gave England a 2-1 win over Tunisia in their opening World Cup Group G match.

A 35th-minute Ferjani Sassi penalty had cancelled out Kane’s 11th-minute opener.

After the break, England, who had wasted several good chances in the first half, struggled to break down the deep defending African side.

But from a Kieran Trippier corner, a glancing header from Harry Maguire found Kane at the back post and he nodded home to give England a winning start.

Earlier, a stunning volley from Dries Mertens and a Romelu Lukaku double broke the resistance of a brave Panama side on their World Cup debut as Belgium cruised to a 3-0 win.

Mertens hammered home a superb volley two minutes into the second half, sending the ball arcing over Jaime Penedo after Panama struggled to clear a cross.

Lukaku’s hard work up front was rewarded when he headed home Kevin De Bruyne’s brilliant pass off the outside off his foot to make it 2-0 in the 69th minute and the big striker latched on to an Eden Hazard pass to complete the scoring with a neat finish.

In the first game of the day, Sweden won an opening World Cup game for the first time since 1958 with a narrow 1-0 victory over South Korea.

After dominating the game but missing a string of chances, the Swedes won a 65th-minute penalty when Kim Min-woo brought down Viktor Claesson in the box. Salvadoran referee Joel Aguilar initially waved the Swedes away, before being called to consult the Video Assistant Referee system.

In the second VAR-awarded penalty of the World Cup, Sweden’s 33-year-old captain Andreas Granqvist swept the ball low and left of impressive goalkeeper Cho Hyun-woo.

Source: REUTERS NEWS AGENCY

Vietnam: Why it is a growing choice

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We explore the popularity of the South East Asian market with Taiwanese medical beauty name, Chlitina, following its expansion into the region.

“South East Asia is experiencing rapid economic growth. As of the end of December last year, the Asian Development Bank put regional growth rate at 6% for 2017,” explained Shou-Kang KAO, Taiwan and South East General Manager, Chlitina.

In May 2018, Chlitina announced it plans to open 50 beauty salons in Vietnam by 2020 through its franchise.

Driving forces

Chlitina states that the region’s culture and beauty trends are two core reasons to widen its presence in South East Asia, as Shou-Kang shared: “Cultural proximity played a role in our choice of destinations too. Furthermore, women in South East Asian countries usually share the same outlook on beauty and skin care as Chinese women.”

Rapid development

With such an aggressive growth strategy in place, we asked Shou-Kang KAO, Taiwan and South East General Manager at Chlitina why Vietnam, in particular, was selected as a key market for its expansion.

“We have noticed that the Vietnamese economy is growing fast (6.6% in 2017 and forecast likewise at 6.6% for 2018),” stated Shou Kang.

Strengthening ties

The relationship between Chlitina’s domestic base, Taiwan, and the South East Asian area also played an important role in this decision: “Vietnam was identified as a priority, in part because over the past 20 years or so, Taiwan has developed strong ties with this country through the presence on the island of about 200,000 Vietnamese, among which over 100,000 have settled down here after marrying into Taiwanese families.”

By Natasha Spencer

Is it safe to travel to Vietnam?

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Dangers & Annoyances

All in all, Vietnam is an extremely safe country to travel in. Lonely Planet summary:

The police keep a pretty tight grip on social order and there are rarely reports of muggings, robberies or sexual assaults.
Scams and hassles do exist, particularly in Hanoi, HCMC and Nha Trang (and to a lesser degree in Hoi An).
Be extra careful if you’re travelling on two wheels on Vietnam’s anarchic roads; traffic accident rates are woeful and driving standards are pretty appalling.

Undetonated Explosives

For more than three decades, four armies expended untold energy and resources mining, booby-trapping, rocketing, strafing, mortaring and bombarding wide areas of Vietnam. When the fighting stopped, most of this detritus remained exactly where it had landed or been laid; American estimates at the end of the war placed the quantity of unexploded ordnance (UXO) at 150,000 tonnes.

Since 1975 more than 40,000 Vietnamese have been maimed or killed by this leftover ordnance. The central provinces are particularly badly affected, with more than 8000 incidents in Quang Tri alone.

While cities, cultivated areas and well-travelled rural roads and paths are safe for travel, straying from these areas could land you in the middle of danger. Never touch any rockets, artillery shells, mortars, mines or other relics of war you may come across. Such objects can remain lethal for decades. And don’t climb inside bomb craters – you never know what undetonated explosive device is at the bottom.

You can learn more about the issue of landmines from the Nobel Peace Prize–winning International Campaign to Ban Landmines (www.icbl.org), or visit websites of the Mines Advisory Group, which clears landmines and UXO.

Sea Creatures

If you plan to spend your time swimming, snorkelling and scuba-diving, familiarise yourself with the various hazards. The list of dangerous sea creatures includes jellyfish, stonefish, scorpion fish, sea snakes and stingrays. However as most of these creatures avoid humans, the risk is very small.

Government Travel Advice

The following government websites offer travel advisories and information on current hot spots.

● Australian Department of Foreign Affairs (www.smarttraveller.gov.au)

● British Foreign Office(www.gov.uk/foreign-travel-advice)

● Canadian Department of Foreign Affairs (www.dfait-maeci.gc.ca)

● US Department of State(http://travel.state.gov)

Google to invest US$550 million in Chinese e-commerce giant JD.com

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Google will invest US$550 million in Chinese e-commerce powerhouse JD.com, part of the U.S. internet giant’s efforts to expand its presence in fast-growing Asian markets and battle rivals including Amazon.com.

The two companies described the investment announced on Monday as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. This could help JD.com expand beyond its base in China and Southeast Asia and establish a meaningful presence in U.S. and European markets.

JD.com’s U.S.-listed shares rose 2.5 percent to US$44.68 in morning trading on the Nasdaq.

Company officials said the agreement initially would not involve any major new Google initiatives in China, where the company’s main services are blocked over its refusal to censor search results in line with local laws.

JD.com’s investors include Chinese social media powerhouse Tencent Holdings Ltd, the arch-rival of Chinese e-commerce leader Alibaba Group Holding Ltd, and Walmart Inc.

“Given Walmart also has a close relationship with JD, I see (the investment) as further tightening of the Google/Walmart alliance, which seems focused on building a third force in ecommerce beyond Amazon and Alibaba,” said Atlantic Equities analyst James Cordwell.

Google is stepping up its investments across Asia, where a rapidly growing middle class and a lack of infrastructure in retail, finance and other areas have made it a battleground for U.S. and Chinese internet giants. Google recently took a stake in Indonesian ride-hailing firm Go-Jek, and sources have told Reuters that it may also invest in Indian e-commerce upstart Flipkart.

Google declined to comment on the rumoured Flipkart deal. The JD.com investment is being made by the operating unit of Google rather than one of parent company Alphabet’s investment vehicles.

Google will get 27.1 million newly issued JD.com Class A ordinary shares as part of the deal. This will give them less than a 1 percent stake in JD, a spokesman for JD said.

For JD.com, the Google deal shows its determination to build a set of global alliances as it seeks to counter Alibaba, which has been more focused on forging domestic retail tie-ups. Japan’s SoftBank Group Corp, which is making big internet investments around the globe, is a major investor in Alibaba.

“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said Jianwen Liao, JD.com’s chief strategy officer, in a statement.

Company officials said the deal would marry Google’s market reach and strength in analytics with JD.com’s expertise in logistics and inventory management.

The investment may give Google access to more consumer data, which can be used to boost usage of Google Shopping, said Morningstar analyst Ali Mogharabi.

Source: Reuters

Head of VW’s Audi arrested in Germany over diesel scandal

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FRANKFURT (Reuters) – Volkswagen (VOWG_p.DE) was holding crisis talks on Monday to find a stand-in boss for its Audi brand, a source familiar with the discussions said, after German authorities arrested Audi CEO Rupert Stadler as part of a probe into emissions test cheating.

Stadler is the most senior company official to be detained so far since Volkswagen (VW) admitted in September 2015 to using illegal software to rig U.S. emissions tests on diesel engines.

Munich prosecutors, who widened their probe into Audi earlier this month, said Stadler was being held due to fears he might hinder their investigation into the scandal, plunging VW into a leadership crisis.

“We need to find a solution for Audi’s leadership for the time when he is not here,” the source familiar with the talks said about Stadler’s position. “We will comment on this later.”

VW and Audi directors were discussing the leadership crisis in separate meetings on Monday, with one source saying Dutchman Bram Schot was the front runner to become interim Audi chief.

Germany’s Sueddeutsche Zeitung newspaper said VW’s supervisory board had already picked Schot for the job and only needed the formal approval of Audi’s directors. VW denied any such appointment had been made.

VW has set aside around $30 billion to cover fines, vehicle refits and lawsuits since its “dieselgate” scandal broke, and has announced plans to spend billions more on a shift to electric vehicles as it seeks to rebuild its reputation.

Whereas group CEO Martin Winterkorn resigned in the days after the cheating was disclosed, Stadler has remained in post and was this year promoted by new VW boss Herbert Diess in an overhaul aimed at speeding up the group’s reforms.

“His arrest is another low point in VW’s diesel saga,” said Evercore ISI analysts, who have criticized the group for a slow pace of reform. “Almost three years after the diesel scandal broke, it takes police to take action against the Audi CEO.”

The United States filed criminal charges against Winterkorn in May, but he is unlikely to face U.S. authorities because Germany does not extradite its nationals to countries outside the European Union.

The Munich prosecutors said the move against Stadler was not made at the behest of U.S. authorities. The 55-year-old was arrested at his home in Ingolstadt in the early hours on Monday, they said.

“The arrest warrant was made because of a risk that evidence might be suppressed,” Stephan Necknig, a spokesman for the Munich prosecutor’s office, told Reuters Television.

“During a search last week there were signs that the accused may tamper with evidence. To influence other suspects or witnesses, or people who could provide information to the investigating authorities,” he added.

Audi and VW said Stadler was presumed innocent unless proved otherwise. Stadler himself was not immediately available for comment.

At 1409 GMT, VW shares were down 3 percent at 156.08 euros, one of the biggest falls by a European blue-chip stock .FTEU3.

UNDER FIRE

Stadler has been under fire since Audi admitted in November 2015 – two months after parent VW – that it also installed illegal “defeat device” software to cheat U.S. emissions tests.

Munich prosecutors are investigating whether Stadler acted swiftly enough to stop deliveries of manipulated Audi models in Europe once emissions problems had emerged, a person familiar with the matter has told Reuters.

Stadler has held onto his post mainly thanks to the backing of members of VW’s controlling Porsche-Piech families. Before becoming Audi CEO in 2007, Stadler worked as chief of staff to VW’s former chairman Ferdinand Piech.

Earlier this month, Munich prosecutors widened their probe at Audi to include Stadler and another member of Audi’s top management, investigating them for suspected fraud and false advertising.

Stadler’s arrest will raise tensions on VW’s supervisory board, putting at risk a fragile truce between management, labor representatives and board members from the carmaker’s home region of Lower Saxony.

Most of VW’s emissions problems have been in the United States, where a total of nine people have been charged and two former VW executives have pleaded guilty and been sentenced to prison terms.

But investigations are continuing elsewhere. Last week, German prosecutors fined VW 1 billion euros ($1.2 billion) over the scandal.

($1 = 0.8608 euros)

By Edward Taylor, Jan Schwartz

Vinataxi and Savico Taxi to merge to compete with Grab

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Backed by ComfortDelGro Corporation Limited from Singapore, the merger between Vinataxi and Savico Taxi may help them overcome the competition with Grab and other ride-hailing applications.

Most recently, the representative of Vietnam Taxi Company (Vinataxi) has announced the plan to merge with ComfortDelgro Savico Taxi—the taxi brand that had to suspend operations in March due to heavy competition.

Vinataxi currently holds the third largest market share in the taxi sector in Ho Chi Minh City. Despite the firm claiming that its taxi business has not been much affected by Grab’s presence, its 2017 profit was only 10 per cent of the annual target. Notably, last year Vinataxi reported VND48.7 billion ($2.13 million) in revenue and VND1.2 billion ($52,553) in after-tax profit, equalling 49.8 and 9.87 per cent of the yearly targets.

The representative of Vinataxi expects that the merger with Savico Taxi will help increase revenue and profit from taxi business by six times compared to 2017.

Vinataxi was established in October 1992 by Tecobest Investment Ltd. (Hong Kong ) and Tracodi. In 2003, the Hong Kong partner transferred its holding to ComfortDelGro Corporation Limited from Singapore, one of the world’s largest land transport firms.

Once Vinataxi merges with Savico, ComfortDelGro Corporation Limited will be a common backer to both.

However, there are concerns that Vinataxi’s optimism is misplaced as Savico might not give it the expected boost, especially after it had to suspend operations due to competition.

Savico reported bleak business results prior to the suspension. Notably, according to Savico’s 2017 financial report, the taxi joint venture had total assets of VND92 billion ($4.038 million), however, its after-tax profit was VND235 million ($10,316) only. Previously, in 2016, its pre-tax profit was VND4.1 billion ($180,000), equaling 53 per cent of its plan for the whole year.

According to Savico, the purpose of ComfortDelgro Savico Taxi’s decision was to look for other business opportunities as well as safeguard the capital that Savico and ComfortDelgro contributed to the joint venture.

Source: VIR

First Vinfast cars to debut at Paris Motor Show

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What is left for competitors if Vinfast starts selling cars at cost price?

Recently, images of the first two models of Vinfast’s sedan and SUV designed by Pininfarina through a $5 million contract sharing intellectual property rights from BMW are now exhibited at the Paris Motor Show at the end of last week.

With the logo V in front and the word Vinfast in the back, the IDG Sedan 02 design which won the public vote in the sedan line-up with 22,400 votes (36.2 per cent).

The vote for SUVs was won by IDG SUV 02, with 13,853 votes (22.4 per cent). However, according to information leaked on social media, IDV SUV 03 will also be introduced at Paris Motor Show. The commercial versions of these cars will be sold in 2019.

At Vingroup’s annual general shareholders’ meeting (AGM) taking place on May 31, Vuong stated that the domestic market is the priority of Vinfast. Although Vietnam is a competitive market, he believes Vinfast’s chances of success are high.

Vuong confirmed that Vinfast cars will beat competition in quality due to the highly automated manufacturing. There are 1,200 robots working in the welding factory of Vinfast.

Moreover, the selling price will be very different from market standards as profit will not be a priority for Vinfast as instead the firm will focus on capturing the market.

In the long term, however, Vinfast will export its cars. Russia and the surrounding countries will be the priority market at first because of the large population and the significant knowledge the leaders of Vingroup hold about this market.

“In the long term, Vinfast will be the mainstay business line for Vingroup. Vinfast will not only manufacture automobiles, but also set foot in the heavy industry through cutting-edge technology to manufacture so many things. This is the new target of Vingroup,” Vuong said the AGM.

With the total investment of VND35 trillion ($1.54 billion), the 335-hectare mega automotive factory project in Cat Hai (Haiphong city) is expected to place Vietnam on the global map of automobile manufacturing with the annual capacity of 250,000 electric motorbike and 250,000 cars in the first phase.

Source: VIR

Three killed, 19 injured in coach accident in Kon Tum Province

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Doctors at Kon Tum General Hospital treat victims of the traffic accident that occurred in Lo Xo Pass in the Central Highlands Province of Kon Tum.—VNA/VNS Photo Cao Nguyên

KON TUM — Money from the road maintenance fund will be used to ensure traffic safety on Lo Xo mountain pass on Ho Chi Minh Road, said the Ministry of Transport following an accident that killed three and seriously injured 19 others in the Central Highlands province of Kon Tum.

The accident happened when a coach carrying 44 people bound for the southern province of Binh Phuoc fell off the road into a 20m deep abyss early Saturday morning. The dead included two 10-year-old children.

The injured victims are being treated at Kon Tum hospital.

According to Kon Tum’s traffic safety committee, the bus was operated by a company in the northern province of Hai Duong. It lost control and plunged into the abyss at about 2:15 am. By 6 am, rescue forces got all the victims out of the vehicle and took them to a local clinic for first aid.

Investigation into the accident’s cause is underway.

Chairman of the National Traffic Safety Committee – Deputy Prime Minister Trương Hòa Bình has conveyed his sympathy to the victims and their families and sent a team led by the committee’s Vice Chairman Khuất Việt Hùng to the site.

Deputy Minister of Transport Lê Đình Thọ yesterday inspected 27 kilometres of the Lo Xo pass.

Accidents often occur on the section of Ho Chi Minh Road – a key connection of the Central Highlands region with Da Nang City.

“We will spend the road maintenance funds to work on comprehensive solutions for traffic safety on the pass first,” Thọ said, adding that first solutions included installing more bars to slow speed, signals and traffic barriers.

Turning points on the pass would be widened, he said, noting that there should be more rest stops for drivers.

The 27km Lo Xo Pass runs through Kon Tum Province. On March 1, a serious accident occurred, killing one person and injuring dozens of others. — VNS

Plastic disposable cups prohibited in some countries, but not Vietnam

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France, the US, Canada and Scotland have said no to plastic disposable cups, but they are still used widely in Vietnam despite warnings about the existence of carcinogens.

Plastic disposable cups are made of Polystyrene (PS), a kind of cheap lightweight plastic.

A US report showed that when subjected to low or high temperatures, PS can release styrene, an extremely toxic substance. It is an element that can cause cancer, affect DNA , cause neonatal disturbances and nervous system disorders, and change blood concentration.

Even a small volume can have negative consequences on health.

Plastics products usually contain a BPA that is carcinogenic, which can affect brain development and can cause hepatitis, endocrine disorders and infertility.

France is the only country which prohibits the use of disposable plastic items, with the ban expected to take effect from 2020.

To fight against pollution caused by plastic waste, the Scottish government has prohibited disposable coffee cups at office buildings of the country’s government agencies.

Demand for plastic disposable cups in summer is five times higher than usual because of high demand for sugarcane juice and bubble tea.

Meanwhile, plastic disposable cups are still used on a large scale in Vietnam, especially in summer. Reporters have found that demand for plastic disposable cups in summer is five times higher than usual because of high demand for sugarcane juice and bubble tea.

Nguyen Thu, the owner of a sweetened porridge shop on Nguyen Van Huyen street in Cau Giay district, said glasses are used for the customers who enjoy porridge right at the shop, while plastic disposable cups are used for take-away porridge.

“In winter, I can sell 20-30 glasses of sweetened porridge a day, while the figure is 100 in summer and 60 percent of the orders are take-aways,” she said, adding that she buys 2,000 plastic disposable cups each time and orders cups once every 20 days.

Tuan, the owner of a sugarcane juice shop at Phung Khoang Market, said he only uses plastic disposable cups because of their convenience.

“I don’t have much water to clean glasses here. So, it would be better to use disposable cups,” he explained. “I can save money and time with the cups. They are dirt cheap.”

Bau, the owner of a disposable cup at Dong Xuan Market, the biggest wholesale market in the north, said that these cups sell very well in summer, because of the increased demand for drinks.

“About 5,000-10,000 cups are sold every day,” she said, adding that 50 cups cost VND10,000-20,000. The cups are also sold online.

By Mai Chi, Vietnamnet

VCSC: KEB Hana Bank is potential strategic investor of BIDV

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Korea’s KEB Hana Bank has been confirmed as the potential strategic investor of Bank for Investment and Development of Vietnam (BIDV) by Viet Capital Securities Company (VCSC).

In a report on BIDV, which is one of big four state-run commercial banks, VCSC said the prospect of finding strategic investors of BIDV after eight years was gradually clear, adding that the transaction, if successful, will be an important factor to bring BIDV closer to Basel II standards as required by the central bank. VNS mentioned.

Earlier, Business Korea reported that KEB Hana Bank had decided to expand its business in Vietnam by acquiring a stake in BIDV. KEB Hana Bank is going forward with the acquisition and is reportedly close to signing a deal.

The deal will proceed in a way that BIDV will raise new capital through a capital increase to improve its financial structure, and Hana Bank will purchase the new shares. According to a source, the only remaining process is the approval of State Bank of Vietnam while the work is being finalized.

BIDV started as Vietnamese Construction Bank in 1957. Until 1994, it was operated mainly by the Government. Since 1995, the bank has been actively offering financing, credit, financial and non-financial services as a commercial bank. It has played the role of an agency for the management of funds with domestic and foreign financial institutions.

Earlier this year, KEB Hana Bank chairman Kim Jung Tai met Deputy Prime Minister Vuong Dinh Hue. Tai emphasized the need for co-operation between Hana Bank and BIDV and said the two banks would create good business opportunities if they continued to maintain a partnership in financial technology and mobile payment, among others, in Vietnam.

The Festival of Killing Inner Insects in Vietnam

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Tết Đoan Ngọ, Mid-year Festival, the Fesitval of killing inner insects, or Parasite-Killing Festival, is one of the biggest annual festivals. It falls on the 5^th day of May in lunar calendar and has been around for a long time, probably thousands of years.

We may take a deeper look into its given name. As being said, Tết Đoan Ngọ is how it is called, with Đoan: “start” or “beginning”, and “Ngọ”: “noon” that lasts around 11:00 AM till 1:00 PM. Hence, the festival is usually celebrated with the purpose of warding away illness as well as evil spirits.

Unlike China where Duanwu – Mid Year Festival named by Chinese – is known as a festival to commemorate Qu Yuan (340-278 BC), an ancient Chinese patriotic poet, Vietnamese Tết Đoan Ngọ turns up in its own way. Once upon a time, peasants were eager to their prosperous harvest, then came a dense swarm of insects that severely laid siege to all of their yields. On spur of moment, a mysterious old man showed up, guided the villagers to offer bánh tro (made of glutinous rice flour dipped in lye), and fruits in front of their houses, then went for a warm up. As a surprise, the insects died with all of the sudden. This story has been told every single year through generations. Then 5^th of May in lunar calendar was chosen to be a big sort of commemoration and celebration, which got its name as “Tết Giết Sâu Bọ” – “The festival of killing insects” accordingly.

Photo via farm8.static.flickr.com | Banh tro

Vietnamese people hold the event not only just for the story of “killing insects” mentioned above but also for remaining their good health. This time of the year is a shift between two seasons (from Spring to Summer) that is believed to lead to the outcome of some epidemic diseases and illnesses. Then people tend to have foods and drinks like sticky rice wine – com ruou (fermented rice bathed in wine), bánh tro (made of glutinous rice flour dipped in lye) and fruits of sour taste to purge all diseases from their bodies. Above all, to most of our families, the festival is such a good opportunity for a big reunion.

By Oanh Nguyen, Mazevietnam

Expats active in food and beverage startups in Vietnam

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An American sells roast meat, others sell high-end chocolate, and a Singaporean sells frog porridge. They all can see great potentials in the 90 million people market.

According to a report by Vietnamnet, many foreign investment funds have poured money into the F&B (food & beverage0 sector as well.

Lion City Restaurant in Saigon, for example, is run by Singaporean owner Harry Ang, who has been living in Vietnam for 17 years. The workers at the restaurant said the boss, who was trained as an architect, knows how to communicate well with customers.

Ang says the country has high potential for restaurant chains, especially in Saigon, which is considered a ‘small ASEAN’ and the ‘crossroads’ of different cuisines.

He said the opportunities are great as more Vietnamese have demand for quality food bearing local characteristics in a modern space and with quality service.

The opportunities are great as more Vietnamese have demand for quality food bearing local characteristics in a modern space and with quality service.

Meanwhile, Tim Scott and Mark Gustafson from the US run a grilled pork rib restaurant and sell craft beer.

Their Ut Ut and BigCraft restaurants have been prospering as they attract young customers. The fifth restaurant of the chain will open in June and the number of shops is expected to increase to 10 by the end of the year.

Vincent Mourou-Rochebois, a French-American, said some people called him and Samuel Maruta, of France, ‘crazy men’ when they decided to make Marou chocolate. The people said Vietnamese like milk and tea, not chocolate.

However, they bet on chocolate because they could see the great potential and the country’s large cocoa growing area. They believed the most important thing was to have good raw materials.

In 2011, they moved ahead with the plan to make bean-to-bar chocolate, the first of its kind in Vietnam. Four years later, they launched the high-end chocolate brand Marou and put Vietnam on the world’s chocolate map.

An analyst said that Vietnam, like many other markets, is now being exposed to many food trends from all over the globe.

Many foreign investment funds have invested in the F&B sector and foreign brands are seeking franchise contracts in Vietnam.

Mekong Capital, for example, in 2008, poured VND2.6 billion into Golden Gate. In 2016, the Mekong Enterprise Fund III invested $6.9 million, or VND150 billion, into the company which owns the Wrap & Roll chain.

US$1=VND22,000