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.

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.

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

Street Knights: Vietnam’s two-wheeling vigilantes

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Brave individuals around Vietnam called ‘Street Knights’ have taken it upon themselves to help patrol their local communities.

They directly work with their neighbors and accept calls for help, going on to interrupt incidents and directly confront criminals. This has led to high-speed motorbike chases, the real arrests of thousands of offenders, and the gratitude of Vietnam’s citizens.

However, the lifestyle is a dangerous one and fighting criminals has caused serious injuries to many Street Knights, and even death. The vigilante, understandably, has been met by controversy. While the wave of crime-fighting volunteers, who patrol the streets on scooters and motorcycles, are mostly praised… The phenomenon has also raised concerns about whether or not the vigilantes should be encouraged.

Street Knights usually ride scooters or motorcycles to be able to catch up to criminals who are likely to flee on two wheels. They are unpaid, and usually untrained. The issues around Vietnam’s unique breed of vigilantism are typical and rational: they have no real authority to make arrests or uphold the law; they can sometimes hinder the police from examining evidence; they put themselves in danger; and not all of them remain altruistic.

The phrase ‘Street Knight’ originates from Binh Duong Province, wherein the model for vigilante teams was proposed by a group of law students from Ho Chi Minh. While working as interns, the students saw the abundance of petty crime around Binh Duong. The province officially recognized the Street Knight model of civilian volunteers in order to attract more youths to help clean up their communities. Now Thu Dau Mot City in Bunh Duong has crime-prevention clubs managed by the police in more than 90 of its communes. Soon, other provinces followed suit.

Ho Chi Minh (HCM City) has been seeing a rise in well-meaning vigilantism, and the urban center now has many different Street Knight groups that have given rise to famous vigilantes and social media stars who have been officially acknowledged for stopping thousands of thieves. A reporter from Reuters recently spoke to some of these Street Knights from Ho Chi Minh City and Binh Duong Province for a closer look into their lives…

“Whenever there’s a call I show up, even at midnight, when I can barely keep my eyes open.” 47-year-old Nguyen Thanh Hai told Reuters. He has helped the police apprehend roughly 4,000 criminals as a Street Knight. “You don’t think about money when you do this.”

“My little son gets so excited when he sees me on YouTube,” said 31-year-old taxi driver Pham Tan Thanh. “He always asks me when I’m going to go out again.”

“Police have so many jobs, we just can’t blame them. If everyone shares the effort, society will be much better,” said Nguyen Viet Sin, whose father is a policeman. During on

The dangerous lifestyle has put many Street Knights in hospitals or graves. Their willingness to sacrifice their own safety and lives, on behalf of society, have made local heroes out of the vigilantes. They often receive the appreciation and adulation of both regular citizens and government officials, for their heroic acts. The HCM City Police has been known to honor fallen Street Knights as martyrs.

Instead of cracking down on Street Knights, Vietnamese officials recognize them as valuable. HCM City officials have been considering steps to provide the Street Knights with more support, protective equipment, legal training, and combat training. The Binh Duong model which is known for putting clubs under police management has been suggested for wider adoption. Almost every commune in Vietnam currently has a street guard force that cooperates with the police — hence, they are protected by law, provided with more resources, and given more authority. It has been suggested that Street Knights should be given greater opportunity to transition into a system of paid street guard forces.

e fight, an HIV-positive thief rubbed his own blood into a wound inflicted on Sin. It caused him to worry he could have gotten infected… “I wanted to quit, but after I recovered and could still see clips of robberies on social media, I hit the road again. My passion didn’t die.”

“I feel so proud every time I help someone, but it’s also very tiring. I’ve been pepper-sprayed and had my head smashed. It’s very dangerous and the thieves have more weapons now. It’s no fun,” said 44-year-old Mai Truong Xuan Huy. The Vietnamese-American security guard lives in California and spends his summers in Vietnam fighting crime as a ‘Street Knight’. “I can’t help it. It’s in my blood.”

By Jenna Genio

Source: Motonipas

 

What’s next for green energy in Vietnam – 4 steps to the future

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Now that the United States has retreated from the Paris Climate Accords, and relinquished its leadership role in the fight against climate change, it remains to be seen whether smaller nations will stick to their pledges of greenhouse gas reduction.

Eyes are on countries like Vietnam to see if they keep to their commitments or revert to the pursuit of cheap and dirty coal-powered solutions for their energy needs.

Vietnam, in particular, faces some of the biggest risks. Global warming is a major threat to the country, where rising sea levels are predicted to swallow up nearly half of the Mekong Delta, a crucial area for domestic food production, in coming decades.

Currently, coal-fired plants in Vietnam contribute to thousands of premature deaths and air quality in big cities is getting worse. In 2017, the capital Hanoi enjoyed just 38 days of clean air, with contaminant levels four times those deemed acceptable by the World Health Organization.

Business as usual?

Unlike Obama, the Trump administration seems unlikely to apply any real pressure on other countries to pursue clean energy or combat climate change, and so it will be up to domestic forces to really push for change.

According to the government’s current national plan, electricity generated from coal will rise five-fold between now and 2030, and GHG emissions will increase in lockstep. This is at odds with Vietnam’s pledge to the Paris Climate Accord, which targets 8 percent emissions reduction by 2030, and could rise as high as a 25 percent reduction with international support, such as financing for solar panels and wind turbines.

Energy and environment experts worry that the country’s next national power development plan, which is under revision this year, could hold to those figures or, worse, embrace a more aggressive coal strategy.

The story, however, is not all doom and gloom. Vietnam does have the potential to become a regional clean energy leader, if only the country’s energy development and investment environment can be reshaped. Business involvement in this process will be crucial, as the commercial and industrial sectors consume more than 60 percent of Vietnam’s electricity.

Khanh Nguy Thi, founder of the Vietnamese nonprofit Green Innovation and Development Centre, recently won the 2018 Goldman Environmental Prize for her work convincing state agencies to increase their use of renewable energy. Her efforts were instrumental in halting the construction of two hydropower plants in a national park and securing a 20,000 MW reduction in planned coal expansion.

Government leaders have also demonstrated a desire to utilise Vietnam’s abundant sunlight and over 2,026 miles of coastline in the pursuit of renewable energy.

4 solutions for a sustainable energy sector

Clearly, clean energy opportunities are available, the question is how to encourage more investment. Obstacles persist with the regulatory environment, preventing the country from tapping its potential in this area. Here are four small changes which could bridge the gap between policy and implementation, ensuring the green energy dream becomes a reality:

1. Streamline regulations regarding Power Purchase Agreements (PPA) and support the use of Direct Power Purchase Agreements (DPPA).

Negotiating standard PPAs with EVN, the sole power purchaser, is time-consuming, which cause rising total project costs. The streamlining of such deals would render them more attractive to power producers and cut lengthy approval time, which often leads to execution delays or complete abandonment of projects.

USAID and Vietnam’s Ministry of Industry and Trade are working together to enable private sector electricity buyers and renewable energy providers to enter into DPPA. This would allow industrial energy buyers to purchase electricity directly from independent renewable energy producers.

Such a mechanism would help companies enjoy constant power prices and ultimately save power costs. By signing a long-term DPPA to buy power from a clean energy generator, businesses can have a constant power price, reducing risk and helping firms establish long-term business plans with no surprises down the road.

2. Improve the transparency of electricity rate forecasting.

Electricity prices will have to increase in order for Vietnam’s national utility to finance new energy projects, but the schedule for such increases remains vague. Better transparency of expected price increases will allow buyers and investors to more accurately value fixed-cost renewable energy contracts, which can offer some price protection.

Additionally, improving the quality and sourcing of data on renewable energy can help clarify for investors available locations, infrastructure capabilities and government targets, as well as other information to help reduce risk on investment decisions.

3. Encourage supporting industries.

Supporting industries plays a crucial role in the development and adoption of renewable energy technologies. The government should promote domestic SMEs through capital subsidy and incentives such as tax breaks and preferential loans. A competitive supporting industry will help in reducing the tariff and investment costs for renewable projects, nurturing their development as part of Vietnam’s energy sector.

​4. Develop a renewable energy model for industrial parks.

Given the expectation that industrial areas will continue to play a big role in Vietnamese manufacturing and commerce, these parks are an important place to explore renewable solutions. Aggregating demand from tenants in the parks would help scale clean energy and make it more affordable for all.

Green power pioneer

Renewable energy has the capacity to power Vietnam and with the right policies in place, the country can deliver affordable, safe and clean power for continued economic growth.

Vietnamese businesses and the government could chart an unprecedented course for clean energy, and represent a role model for Southeast Asia — if they can address some key barriers. The changes detailed above would help drive the country’s energy transition toward a sustainable, greener future, and demonstrate that the fight against climate change can continue without American leadership.

By Duane Morris

Source: Lexology

Vietnam Internet Crackdown Damages Plans to Become Blockchain Hub

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Vietnam legislators approved a cybersecurity bill on June 12 putting tighter rules on tech companies from the start of 2019. Vietnam has been recognised as a potential hub for blockchain activity but doubts still remain over regulatory uncertainty.

New Cybersecurity Bill Approved

The new bill requires tech companies to hold important personal data locally which means they will need to have a physical presence in the country. It also makes sweeping bans over using the internet in ways that may undermine the state or spread incorrect information.

Lieutenant-general Hoang Phuoc Thuan, director of the ministry’s Cybersecurity Department, had spoken to major tech companies including Facebook in the run-up to the bill being passed.

He told VnExpress:

“They said that this [law] was appropriate and that they will research to modify their companies’ strategies accordingly,” and added, “Providing customers’ data to security authorities is not a violation of privacy.”

The cybersecurity bill was approved by 91% of attending legislators in the National Assembly but had raised concerns by MPs that it would lead to a violation of international commitments. It was also criticized on the basis that it would damage the right to free speech by restricting online content.

Clare Algar, Amnesty’s director of global operations, said:

“With the sweeping powers it grants the government to monitor online activity, this vote means there is now no safe place left in Vietnam for people to speak freely. This law can only work if tech companies cooperate with government demands to hand over private data. These companies must not be party to human rights abuses, and we urge them to use the considerable power they have at their disposal to challenge Viet Nam’s government on this regressive legislation.”

The Asia Internet Coalition (AIC) also said that the new bill is likely to restrict the growth of Vietnam’s digital economy. They highlighted the additional costs of placing data centers within the country.

Vietnam: Potential Blockchain Hub

NewsBTC has previously reported about how Vietnam can become a hub for blockchain services even though virtual currencies are effectively banned there. Nicole Nguyen, head of corporate marketing at Vietnam’s Infinity Blockchain Labs, has argued that the high numbers of unbanked citizens and the low numbers of those who have bank accounts is a problem blockchain can solve.

Infinity Blockchain Labs also hosted a Blockchain Week Conference to discuss ‘Vietnam’s future in the global blockchain ecosystem’ which attracted 2,000 people. It also looked at the use of blockchain in giving legal protection to rural farmers and its use in tracking supply chains.

However, even though the tech leaders are working to create a more positive environment for new technologies, digital currencies are essentially banned. Those found breaking the law by using digital currencies can be fined up to 200 million Dong (about $9,000 US). It appears evident then that the Southeast Asian nation has taken a large leap backwards in terms of internet freedom leading to smaller shuffles backwards for blockchain innovation and crypto acceptance.

By Tim Copeland

Source: newsbtc

Facebook entices content creators with new community-centered video platform

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The new features sound a lot like the YouTube Community tab – The Verge reports.

Facebook announced several new live video features today that will allow creators to make their live streams more like games with polls and quizzes. The features are similar to those that creators on YouTube have had access to for months through the recent addition of the Community tab. These new features could entice established creators to migrate to Facebook’s video platform.

Facebook says these features will reinvent traditional entertainment formats as more “community-centric,” and it noted a trend in more collaborative video consumption that relies on audience participation. YouTube integrated polling and collaboration with audiences when the company announced its Community tab last November. With this feature, creators are able to ask their audiences what they should broadcast next and build anticipation for upcoming video series, for example.

New ways to profit from video content will arrive on Facebook soon as well. The company will allow more creators to add commercial breaks and monthly subscriptions. It will also introduce a new way of finding paid partnerships with a feature known as Brand Collabs Manager.

The company announced several creators who are launching live game shows on Facebook, including BuzzFeed’s “Outside Your Bubble,” “Confetti” from Insider, and Fresno’s “What’s in The Box.” These will all be live interactive game shows that will air regularly on Facebook Watch.

In a report from TechCrunch, Facebook dodged questions about whether the new features were inspired by the success of HQ Trivia, a live mobile game show that has been holding on to audiences of at least 1 million people per game in recent months.

Philippines, China, Vietnam should draft rules on common fishing

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MANILA – The Philippines, Vietnam and China should set rules on common fishing in Scarborough Shoal, Acting Chief Justice Antonio Carpio said Wednesday. Reported by ABS-CBN News

“You cannot just overfish there because you have to have sustainable fishing. We must have rules and we should go to the tribunal, ask that China and Vietnam sit down with us to draft the rules there,” he told ANC’s Headstart.

The arbitral tribunal, in its 2012 decision, ruled that the lagoon and territorial sea around the shoal was the “common fishing ground” for the three countries, he said.

With Filipinos barred from the lagoon, Carpio said Manila should ask the tribunal to order Beijing to allow its fishermen in and also file a diplomatic protest on this.

“Our fishermen are not allowed to go inside the lagoon and I understand Chinese fishermen are allowed to enter the lagoon. There’s discrimination. We should protest that and ask tribunal to order China to allow Filipino fishermen,” he said.

Filipino fishermen earlier complained that Chinese coast guard personnel would seize their catch, often worth thousands of pesos, in exchange for a few pieces of bottled water, packs of cigarettes, and instant noodles.

President Rodrigo Duterte said the exchange was a form of “barter” and it was unfortunate that the Chinese and Filipinos had a problem in determining the value of the catch and the items they gave in return.

Chinese Ambassador to the Philippines Zhao Jianhua said the coast guard personnel involved in the incident will be disciplined “in accordance with our own regulations.”

 

Vietnam to identify first casino taking part in locals gambling trial

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Vietnam has identified the first casino that will be allowed to accept local residents on its gaming floor.

Last week, the Hanoi Times reported that Vietnam’s Ministry of Planning and Investment had recommended that the in-development Bai Dai Integrated Resort Project on Phu Quoc island be granted authority to participate in a three-year pilot program that lifts the longstanding ban on locals gambling in casinos.

According to a report by calvinayre.com, last December, Vietnam’s government approved Decree 03/2017/ND-CP, which calls for two casinos to participate in the three-year locals trial. The Phu Quoc resort and another in-development project in Quang Ninh province were previously tipped as being the only venues that would be allowed to participate in the trial.

While the pilot project was supposed to commence last December, neither of the casinos fingered as the likely candidates have opened to the public yet. The Hanoi Times report indicated that the pilot program won’t officially start until the first casino is awarded its gaming license.

There are numerous gaming-hopeful resort projects in the works in Vietnam but the government has to date issued only one of these projects a casino license. Currently, the only operational resort casino in the country is the Grand Ho Tram Strip, which has been unsuccessfully lobbying to take part in the locals trial run.

Vietnam’s conditions for the locals trial include a number of fiscal hurdles, including a daily casino entry fee of VND1m (US$44) or a monthly pass for VND25m. Would-be casino gamblers also have to demonstrate a monthly income of at least VND10m. Casinos will have to keep detailed records on locals’ comings and goings to ensure accurate data for the government to deduce the results of its trial.

Last week also saw Vietnam approve new sports betting regulations, which will widen the variety of sports on which local bettors can wager. However, like the casino trial, the legislation is ahead of the reality on the ground, as the government has yet to approve any betting operators to participate in the five-year betting pilot program.

By Steven Stradbrooke
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