‘Big four’ banks stay firmly in their positions as other big banks arrive

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The prosperity of the stock market in 2017 and the first months of 2018 has helped banks increase accumulated capital.

Techcombank on April 26 announced it had completed the sale of 164 million shares, collecting VND21 trillion worth of capital.

The shares went for a good price, VND128,000, a price level that only one bank has reached to date.

The high price of Techcombank shares was a big surprise. Even Vietcombank and Vietinbank in the ‘big four’ and VP Bank have not joined the ‘VND100,000 per share club’.

Vietcombank shares are trying to regain a VND60,000 per share threshold, while Vietinbank shares are struggling to stay at the VND30,000 per share level.

VP Bank shares still have not bounced back to the VND55,000 per share point and Military Bank shares are traded at VND31,000.

While waiting for technical analysis from securities companies, investors have surmised that Techcombank prices would soar because investors had rushed to collect shares on the eve of the bank’s debut on the bourse, slated for June 4.

Techcombank is considered an odd phenomenon as it has been accumulating profits for eight years and not paying dividends.

Techcombank’s wealth can be seen in the size of its stockholder equity which is three times higher than its charter capital. The rich bank had a capital surplus of more than VND8.2 trillion by the end of the first quarter of 2018 and a large amount of treasury stocks. It has undistributed profit of VND13 trillion.

An analyst said that with the record sale worth VND21 trillion, the capital surplus and high stockholder equity, Techcombank may soon be on an even footing with the four largest banks which are all state owned.

Among the big four, the No 1 position belongs to VietinBank, which has great advantages with VND9 trillion worth of capital surplus after equitization, undistributed profit of up to VND11.6 trillion and funds of VND7.5 trillion. VietinBank has VND37.234 trillion, but stockholder equity is VND66.171 trillion.

The common characteristic of the big four is that the state holds the controlling stake. As the dividend paid every year is low, the retained profit is big.

Vietcombank has a very large amount of undistributed profit of over VND12.2 trillion and funds of VND7.253 trillion. Its charter capital is VND36 trillion and stockholder equity VND56.065 trillion.

BIDV’s figures are lower, but also big: VND34.187 trillion in charter capital and VND50.803 trillion in stockholder equity.

US$1=VND22,000

By Thanh Mai

Source: Viet Nam Net

 

Vietnam promising market for foreign cosmetics manufacturers

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Vietnamese youth, who account for 60 percent of the total population, are a promising market for health and beauty products. The industry has an average growth rate of 30 percent per annum.

A series of South Korean cosmetics brands have arrived in Vietnam in recent years. The Face Shop, Ohui and Laneige have been opening shops in many cities and provinces. Their business has been prospering as South Korean products have high quality and reasonable prices.

Meanwhile, European brands such as Vichy, Lancome and L’Oréal, which have been cementing their positions in the domestic market, have been launching new products and running sale promotions to lure customers.

Dominic OH, director of INTEX, said INTEX plans to organize a cosmetics international exhibition – Mekong Beauty Show – in June. He said Vietnam is an emerging promising market because it has a high 6 percent GDP growth rate and increasing interest in beauty products and services.

Regarding the market scale, a report from Nielsen said Vietnam’s population has nearly reached 100 million, and 60 percent of them are aged below 35. The income per capita has been increasing rapidly recently, reaching $2,385, a rise of $170 compared with 2016.

The market analysis firm cited a report as showing that the cosmetics import/export turnover has soared from $3 billion in 2016 to $6 billion in 2017. At least 95 percent are smuggled products.

The Vietnamese cosmetics market is becoming busier than ever as Vietnam, as a member of FTAs, has slashed the import tariff on many items to 0-5 percent.

The fate of domestically made products

While foreign investors rush to scale up their production and expand distribution networks in Vietnam, domestic manufacturers have seen their market share shrink.

According to Nguyen Van Minh, chair of the Essential Oil, Flavors, Cosmetics Association, of the $6 billion worth of cosmetics import/export turnover in 2017, only 5 percent belonged to domestic companies.

Minh said Vietnam is rich in herbs, the input materials of many organic cosmetics products. However, domestic enterprises can only produce raw materials and cannot create high-end products.

Only a few Vietnamese cosmetics still can exist in the market, such as Thorakao and Miss Sai Gon, but they mostly target the low-cost market segment.

Minh said the association has asked agencies to help set up a R&D center to make organic products and take advantage of Vietnam’s rich herb treasure. However, nothing has happened.

Vietnam enterprises find it difficult to compete with foreign brands because of small production scale, low technology and limited investment capital.

By Chi Nam

Source: Viet Nam Net

Are The Bears Winning the Power Struggle For Vietnam Holding Ltd (VNMHF)?

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Vietnam Holding Ltd (VNMHF) shares have seen the Balance of Power trend lower over the past few sessions, indicating potential price moves are ahead.

The Balance of Power (BOP), indicator was developed by Igor Livshin and it was introduced in the August 2001 issue of Stocks and Commodities Magazine.  Balance of Power (BOP) measures the strength of the bulls versus the bears by assessing the ability of each to push price to extreme levels.  The BOP indicator represents the strength of the buyers (bulls) vs. the sellers (bears), and oscillates between -100 and 100. The calculation of the BOP = (close – open) / (high – low). A directional change of the BOP can be interpreted as a warning signal and will generally be followed by a price change.

Investors often have to decide how aggressive they are going to be in the stock market. Having the mindset of getting rich quick may result in the rapid loss of capital. Of course, there are those who have possibly had luck on their side, but jumping in head first without a plan can be a recipe for disaster. It may be tempting to take a leap with a risky stock. However, high returns in the equity market may come with extensive risk and volatility. Managing that risk in turbulent markets may help keep the average investor above water when things swing the wrong way. Investors may want to assess if they are trading too much or trading the wrong types of stocks. Doing all the research may involve keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when analyzing the markets.

One technical indicator that may assist in measuring the strength of market momentum is the Average Directional Index or ADX. At the time of writing, the 14-day ADX for Vietnam Holding Ltd (VNMHF) is standing at 29.18. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

Vietnam Holding Ltd (VNMHF)’s Williams Percent Range or 14 day Williams %R is sitting at -50.00. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 48.59, the 7-day stands at 46.91, and the 3-day is sitting at 48.34.

Taking a look at another technical level, Vietnam Holding Ltd (VNMHF) presently has a 14-day Commodity Channel Index (CCI) of -35.62. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Presently, the 200-day moving average is at 2.36 and the 50-day is 2.78.

By The Caller

Vietnam’s top conglomerate Vingroup to foray into smartphones

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HANOI (Reuters) – Vietnam’s biggest conglomerate Vingroup JSC is making its first foray into smartphone manufacturing and sales, aiming for success in the Southeast Asian nation where smaller rivals have failed to dent the popularity of Samsung and Apple phones.

Vingroup said on Tuesday it has established VinSmart Co with registered capital of 3 trillion dong ($131.54 million) to produce smartphones and other smart electronics devices. The phones will be sold under the Vsmart brand.

VinSmart will also conduct research on artificial intelligence and will be located in the port city of Haiphong, Vingroup said in a statement, adding that it is already working with advisers on acquiring technologies and production equipment for the new project.

Vietnam, a nation of 93 million, is the largest smartphone production base for Samsung Electronics. Vingroup has operations in the real estate, education, healthcare, tourism and entertainment, retailing, agriculture and automobile manufacturing sectors.

By Khanh Vu

Donald Trump meets Kim Jong Un in Vietnam

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U.S. President Donald Trump and North Korean leader Kim Jong Un met face-to-face Tuesday morning for their highly anticipated summit.
During a bilateral meeting, Trump told Kim: “I know we’ll have tremendous success together and we’ll solve a big problem — a big dilemma — that until this point has been unable to be solved, and working together we’ll get it taken care of.”

According to a report by CNBC, U.S. President Donald Trump and North Korean leader Kim Jong Un met face-to-face Tuesday morning for their highly anticipated summit. After hours of talks, the U.S. president said he was heading toward “a signing” with Kim, but there was no immediate indication of what sort of agreement would be signed.

The summit began with the two men briefly shaking hands and taking a photo side-by-side, then moving to another room, where they sat and made brief statements for the press.

“We’re going to have a great discussion and, I think, tremendous success. It will be tremendously successful. And it’s my honor,” Trump said.

“We will have a terrific relationship — I have no doubt,” the president added.

For his part, the North Korean leader said, “It was not easy to get here. The past worked as fetters on our limbs, and the old prejudices and practices worked as obstacles on our way forward. But we overcame all of them, and we are here today,” according to a translation provided by the White House.

Trump responded: “That’s true.”

Following those comments, the two leaders began what was said to be a one-on-one meeting, with only translators in attendance.

Saul Loeb | AFP | Getty Images

North Korea’s leader Kim Jong Un (L) shakes hands with US President Donald Trump (R) at the start of their historic US-North Korea summit, at the Capella Hotel on Sentosa island in Singapore on June 12, 2018.

They then made a brief appearance together at a balcony exposed to cameras, and then headed into a larger bilateral meeting. With delegation members on opposing sides of the table, Trump delivered another message to Kim.

“Mr. Chairman, it’s a great honor to be with you, and I know we’ll have tremendous success together and we’ll solve a big problem — a big dilemma — that until this point has been unable to be solved, and working together we’ll get it taken care of,” Trump said before reaching for another handshake with his North Korean counterpart.

After hearing Kim’s response, Trump added: “We will solve it, we will be successful, and I look forward to working on it with you. It will be done.”

Later in the day, the two men walked out of the meeting together, and Trump addressed the media.

“It’s going great. We had a really fantastic meeting, a lot of progress, really very positive. I think better than anybody could have expected — top of the line, really good,” the president said.

“We’re going right now for a signing,” he added, walking away from the assembled media.

First such meeting in history

It was the first time that sitting leaders of the countries have met, and it came after years of bluster and threats from Pyongyang — and from Trump — that have raised fears of war.

Of note, many analysts have argued that any recent U.S. leader who had wanted to meet with Kim or his father before him could have done so, because North Korea sought the legitimization of such an event.

Trump is giving Kim’s regime that opportunity, but the U.S. team has also said it is resolute in its goal for Tuesday’s summit: North Korea’s total and verifiable denuclearization.

American officials have dangled relief from stringent international sanctions or even economic aid if the hermit regime were to acquiesce. Beyond those benefits, North Korea is understood to want guarantees about the future of its autocratic regime and the security of its borders.

Washington is hoping the bilateral discussions will be the first of many with Kim’s government, eventually leading to the country surrendering its nuclear capabilities. That weapons program has become a threat to neighbors South Korea and Japan — and more recently, even for the U.S. mainland.

For decades, Pyongyang has sought to depict the United States as an imperialist aggressor for its role in the Korean War, while simultaneously blaming Washington for North Korea’s dire economic condition.

The isolated country has long said it’s justified in seeking nuclear weapons in light of an “extreme and direct nuclear threat” from the United States.

Tuesday’s meeting is seen as a diplomatic breakthrough, even if some experts have said the summit is a strategic mistake on Washington’s part, since it allows Kim to appear as an equal to Trump.

What will North Korea demand?

Experts predict little in terms of concrete results from the summit. In the past, Pyongyang has said it may denuclearize only if certain conditions were fulfilled. Those include terminating America’s military presence in South Korea as well as ending the U.S. regional nuclear umbrella, a security arrangement in which Washington promises in-kind retaliation on behalf of close allies if they are attacked with nuclear weapons.

Washington has said its troops in South Korea would not be up for discussion during the Tuesday summit. Such a withdrawal could have major implications for Asia.

Saul Loeb | AFP | Getty Images

President Donald Trump (R) shakes hands with North Korea’s leader Kim Jong Un (L) as they sit down for their historic US-North Korea summit, at the Capella Hotel on Sentosa island in Singapore on June 12, 2018.

A failure to reach any deal poses risks, but so does reaching an agreement.

“The greatest risk is if we get a political agreement at this summit, and the optics look nice, but then it falls apart on the details — maybe not in six months, maybe not in one year, but in five years,” Michael Kovrig, senior advisor at the International Crisis Group, told CNBC on Monday.

“That’s why we need a clear, step-by-step process that goes action-for-action [and] creates a security environment where the North Koreans are actually willing to take steps, and the United States is in a position to monitor and verify those steps.”

Even if the North Koreans come out of the summit saying they are committed to denuclearization, that hardly guarantees anything. The regime has made false commitments before, and monitoring compliance to an agreement would present a challenge.

By Everett Rosenfeld | Nyshka Chandran

Vietnam raises reference exchange rate

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HANOI, June 12 (Xinhua) — Vietnam’s central bank on Tuesday adjusted up its reference exchange rate between Vietnamese dong and U.S. dollar by 8 Vietnamese dong to 22,575 Vietnamese dong per U.S. dollar.

With the current trading band of plus or minus 3 percent, the ceiling exchange rate is 23,252 Vietnamese dong per U.S. dollar, and the floor rate is 21,898 Vietnamese dong per U.S. dollar, said the State Bank of Vietnam.

Meanwhile, listed rates at big commercial banks in Vietnam were adjusted differently. Bank for Investment Development of Vietnam raised both rates by 5 Vietnamese dong, buying the greenback at 22,770 Vietnamese dong per U.S. dollar and selling at 22,840 Vietnamese dong per U.S. dollar.

Vietcombank kept both rates unchanged at 22,765 Vietnamese dong per U.S. dollar for buying and 22,835 Vietnamese dong per U.S. dollar for selling.

Last week, the reference exchange rates saw one up and three downs with total magnitude of 5 Vietnamese dong and 13 Vietnamese dong, respectively.

According to Vietnam’s National Financial Supervisory Commission, the central exchange rate in late 2017 rose around 1.6 percent against early 2017, while the average rate offered by commercial banks decreased 0.2 percent, and on the free market dropped some 1.5 percent.

Heat on Vietnam car barriers rises

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The commerce and industry ministries are escalating demands that the Vietnamese government eliminate non-tariff barriers on cars imported from Thailand, as Thai car shipments to Vietnam have stalled for over six months.

Thailand is pressuring Vietnam to eliminate its non-tariff barriers on completely built-up (CBU) cars exported from Thailand.

Thai exporters suspended their car shipments after Vietnam tightened inspections for all CBUs at seaports earlier this year. CBU cars are required to undergo tests in a Vietnamese laboratory to ensure they meet environmental and emissions standards.

But the laboratory facility is not large enough to process a large volume of cars, which suggests the measure is aimed at blocking car imports.

Import duties for Thai-made products were eliminated under the Asean Free Trade Area. Somchai Harnhiran, the deputy industry minister, said the two ministries are working to prepare information as they monitor Vietnam’s non-tariff barriers, effective from this year.

“Since Vietnam used the non-tariff barrier policy, Thailand’s automotive industry lost roughly 80% of car exports to that country,” he said.

“Both governments will be in talks soon and we are hoping for a good sign from the two countries.”

All 10 Asean countries have agreed on a free-trade agreement with no such barriers.

Recently, the ministry also held a meeting with car makers and auto parts makers to solve the problem.

“The government has prepared countermeasures for some Vietnamese products exported to Thailand, but it cannot disclose more details because that will be plan B if the bilateral negotiation fails,” said Mr Somchai.

He said car makers in Thailand reported that related exports to Vietnam stood at 4,590 units for the first quarter, with the annual target set at 65,000 units.

“Of the total volume, about 2,000 units were from Honda, but many car makers said they will stop efforts to export to Vietnam,” said Mr Somchai.

Auramon Supthaweethum, director-general of the Trade Negotiation Department, said Thailand will push forward negotiations with Vietnam at every meeting session, adding that laboratories must comply with mutual recognition arrangements (MRAs) for the inspections.

Vietnam only has one automotive testing agency, requiring roughly 30 days for vehicles to clear. Thailand, by contrast, has many agencies to test imported CBU cars under the Thailand Automotive Industry and Thai Industrial Standards Institute.

“Once Vietnam agrees on the MRAs, the next step will be to test the cars ourselves before making shipments there,” Mrs Auramon said after meeting with automotive-related agencies.”

“We aim to cut the custom clearance procedure at Vietnamese ports to facilitate Thai exports and reduce duplicate inspections.”

She said Thailand will propose MRA procedures at the Joint Trade Committee meeting scheduled for August.

Vietnam lawmakers approve cyber law, tighten rules on Google, Facebook

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HANOI (Reuters) – Vietnamese lawmakers approved a controversial cybersecurity law on Tuesday, voting amid tight security following weekend protests over other legislation that turned violent in some parts of the communist country.

The law, approved by 91 percent of attending lawmakers, would require Facebook (FB.O), Google (GOOGL.O) and other global technology firms to store locally “important” personal data on users in Vietnam and open offices in the country. The companies have pushed back against the provisions.

The vote took place two days after thousands of demonstrators took to the streets in several cities and provinces to denounce a plan to create new economic zones for foreign investment that has fueled anti-Chinese sentiment in the country.

Security was tight ahead of Tuesday’s vote, with police manning barricades outside the National Assembly in the capital Hanoi.

Some protesters on Sunday had derided the cybersecurity bill, which experts and activists say could cause economic harm and stifle online dissent.

The United States and Canada had urged Vietnam to delay the vote and review the cyber law to ensure it aligned with international standards amid worries it may present serious obstacles to Vietnam’s cybersecurity and digital innovation future.

Canada said some of the localization requirements might increase costs, uncertainty and risks for Canadian businesses and inhibit their global operations.

The Vietnam Digital Communication Association (VCDA) said the requirements could reduce Vietnam’s gross domestic product by 1.7 percent and wipe off 3.1 percent of foreign investment. Trade and foreign investment are key to Vietnam’s economy.

It also raised fears about tougher restrictions on online dissent by requiring social media companies in Vietnam to remove offending content from their platforms within one day of receiving a request from the authorities.

Human Rights Watch said last week the bill targets free expression and access to information, while Amnesty International said the law would allow Vietnamese authorities to force tech firms to hand over data to censor users’ posts.

Vo Trong Viet, head of the defense and security committee which drafted the law, said the requirement to store data inside Vietnam was feasible, crucial to fighting cyber crime and in line with international rules.

“Placing data center in Vietnam increases costs for businesses but is a necessary requirement to meet the cybersecurity need of the country,” he told lawmakers.

By Mai Nguyen

Vietnamese man earns master’s degree at 85

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An octogenarian in central Vietnam has earned a master of business administration degree after surmounting obstacles associated with aging, illness, and family.

Le Phuoc Thiet, 85, received his master’s degree on Sunday to the rapturous ovation resounding through a hall of over 500 people, including his fellow postgraduates, none of whom were older than him and many at the age of his grandchildren.

Vo Thanh Hai, president of the institution awarding the degree, private-run Duy Tan University in the central city of Da Nang, praised Thiet’s achievement as exemplary for efforts to acquire knowledge at an advanced age.

After leaving Vietnam for the U.S. in 1975, Thiet failed to continue pursuing an education since he had to grind away to earn money for his wife and seven children.

It was not until 1995, when the children were all married, that he attended California State University at 62 and obtained a graduate degree in economics seven years later.

In 2013, Thiet and his wife returned to their hometown in the central province of Quang Nam in order to facilitate the latter’s treatment of dementia, while the children decided to settle in the U.S.

Two years later, at the age of 82, he enrolled in a master’s degree program at Duy Tan University, citing the purpose of preventing the decrease of memory. His wife passed away shortly after his enrollment.

Thiet finished the MBA program with a remarkable result, after overcoming the pain from his wife’s death and frequent illness.

He diligently read books and took physical exercises to improve his memory and logical thinking and keep pace with classmates.

It was the industriousness that enabled Thiet, who is proficient in English, to far surpass other students and pass exams with flying colors, said Vo Thanh Hai, the Vietnamese university’s vice-president.

“He would invariably be the first person to get to the class, rain or shine. He even braved the stormy weather traveling over 30 kilometers on the bus to go to school, against dissuasion from his family.”

Source: Tuoitrenews

Myanmar and Vietnam militaries launch MyTel mobile carrier

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Holding companies push 4G and fiber-optic advantage with Myanmar’s fourth operator

Commercial fronts for the militaries of Myanmar and Vietnam formally kicked off a mobile carrier joint venture on June 9 at the launch ceremony of Myanmar National Tele and Communications, or MyTel. Nikkei reported

The event in Yangon was presided over by Myanmar’s commander in chief, Senior Gen. Min Aung Hlaing, with Gen. Sein Win, the defense minister, and 50 other senior officers present.

The ceremony was attended by Luan Thuy Duong, Vietnam’s ambassador in Myanmar, and Major General Nguyen Manh Hung, the group’s Soviet-trained top executive.

Viettel refused to comment on the relationship between the militaries of the two countries.

MyTel is 49% owned by Viettel, a Vietnamese enterprise wholly owned and operated by the defense ministry. Of MyTel’s other shares, 28% are owned by Star High, a subsidiary of Myanmar Economic Corporation (MEC), a conglomerate belonging to Myanmar’s military. The remaining 23% are owned by Myanmar National Telecom Holding, a consortium of 11 local companies.

Min Aung Hlaing was afforded a VIP reception when he visited Vietnam in March 2017 and met President Tran Dai Quang, who told him that Myanmar has always been important to Vietnam’s foreign policy.

MyTel plans to invest $1 billion more developing its 2G and 4G network, which already provides 80% national coverage. The system includes 30,000km of fiber-optic cable, which is about half the total nationwide. The 4G services have already been rolled out in 300 townships.

“We will give a quality service at an affordable price,” Zaw Min Oo, MyTel’s chief external officer, told the Nikkei Asian Review. “We will provide everything our customers need.”

Mytel offers services in the Shan language, targeting some 6 million people close to Myanmar’s borders with China, Laos, and Thailand. It also offers free roaming on Viettel networks for subscribers travelling between Cambodia, Laos, Myanmar, and Vietnam.

MyTel was granted a license in January 2017, and prior to the official launch provided a limited service in the capital, Nay Pyi Taw.

MyTel is Myanmar’s fourth mobile operator. The biggest player with a 42% market share is Myanma Post and Telecommunications (MPT), which partnered in 2014 with Japan’s KDDI and Sumitomo. Norway’s Telenor and Qatar’s Ooredoo have 35% and 23% market shares respectively.

Although there is not much price differential, and all providers offer affordable packages, users are already buying MyTel sim cards. “Even though they already have MPT, Telenor or Ooredoo SIM cards, my customers believe that MyTel internet data is faster,” said one shopowner in Yangon.

“My family is in Myitkyina in the north,” Gwan Sai, a user, told Nikkei. “They told me MyTel internet is very fast in that area.”

MEC, founded in 1997, is one of the two major conglomerates used as economic vehicles by the military in Myanmar. The other, Union of Myanmar Economic Holdings (UMEH), was set up in 1990 and enjoys a large range of business concessions. Both MEC and UMEH became public companies in 2016, and were listed among the country’s top five taxpayers in 2015 and 2016.

By THUREIN HLA HTWAY, Nikkei staff writer

Lawmakers urge caution on Vietnam cyber security bill

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It goes against international commitments and could open the door to abuse of power, MPs say.

Several legislators on Monday expressed grave reservations and urged serious consideration of the proposed cyber security law before taking a decision tomorrow morning on passing it. VNExpress reported

Nguyen Thi Kim Thuy, member of the legislative National Assembly Committee for Social Affairs, said some provisions of the bill go against commitments Vietnam made when joining the World Trade Organization (WTO) and the EU-Vietnam free trade agreement (FTA).

The bill requires firms like Google and Facebook to open representative offices in Vietnam, but both WTO and EU-Vietnam FTA rules say that cross-border telecommunications services are unlimited to WTO member markets.

And while there are certain exceptions to the rule, there is nothing that requires foreign companies to have a representative office in member countries, she said.

Besides, the Trans-Pacific Partnership Agreement (TPP 12) that Vietnam signed in February last year does not allow signatories to dictate if a company is allowed to conduct business based on where its IT infrastructure is located.

“National security is very important and therefore, the National Assembly has already issued the law on national security and law on cyber-information security and it can be said that these two laws have worked like two very strong locks. And if the law on cyber security comes into life, it is just like adding one more lock,” said Thuy.

The law on cyber information security does not cover operations of foreign digital media firms in Vietnam. It mainly regulates the use of internet by Vietnamese nationals.

Some provisions of the bill under discussion aim to give the government greater control over foreign digital giants as well as local users posting anti-government propaganda or information that ignites violence and disturbs public security, or defamatory and slanderous content.

The bill, proposed by the Ministry of Public Security, also wants the digital tech giants to store local users’ information in Vietnam and provide such information to the ministry on request.

The NA Standing Committee has explained that the above requirement is to protect national sovereignty over electronics data and deal with cyber-incidents and behaviors that violate national security and social order.

It will also support state agencies to investigate, verify and handle violations and prevent information against the Party and the state being posted on the internet, the committee said.

Initially, the bill had a provision requiring foreign companies to install servers in Vietnam, but arguments about integration and the need for an open environment pushed the ministry to scrap it in January.

Legislator Nguyen Lan Hieu said the cyber security law was new not only for Vietnam, but also many other countries in the world.

Since several of its provisions remain controversial, he urged the parliament to “give the bill careful consideration before passing it.”

Hieu also questioned a provision which says “the bill will prevent and handle cyber information with anti-state propaganda contents, inciting riots, disturbing security and social order, and humiliating, slandering, violating economic management order.”

He argued that there was a thin line between what is wrong and what is right for many things that happen in everyday life, so “who is going to decide whether a (piece of) cyber information is violating or not?”

He noted that in Indonesia, a judge decides whether a piece of information is toxic or not.

Nguyen Huu Cau, director of the police department in Nghe An Province, told Hieu that so far, agencies in charge of verifying information have consulted other concerned agencies for clarification.

“If the information has to do with culture, we reach out to the culture ministry, for example,” he said.

Another controversial provision of the draft law is the examination of internal networks of agencies and organizations by units under the public security ministry in case the former violate regulations or when the ministry orders such examinations.

Legislator Ta Van Ha said this provision should be reconsidered because it can trigger abuse of power and undermine the operations of agencies and organizations.

However, at the end of Monday meeting, Lieutenant General Vo Trong Viet, chairman of the NA’s National Security and Defense Committee, urged three times that the draft law is kept unchanged.

by Vu Hoang

Market to remain firm despite adjustments

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Vietnamese stocks are forecast to experience volatility and adjustments in some trading sessions next week but the rising momentum will continue to be the mainstream trend in the short term, analysts said.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HOSE) increased 0.22 per cent to close at 1,039.01 points. Last week witnessed the strongest growth of the VN-Index during the last two months with the index recording weekly gains of 4.7 per cent.

On the Hà Nội Stock Exchange (HNX), the HNX-Index edged up 0.73 per cent to end at 119.86 points on Friday.

The northern market index fell a total 3.6 per cent in the week.

An average of 223.3 million shares worth VNĐ6.2 trillion (US$272 million) were traded per session on the two exchanges, down 6.2 per cent in volume and 1.5 per cent in value compared to the previous week.

According to Bảo Việt Securities Company (BVSC), after two consecutive rising weeks, the VN-Index is forecast to face challenges next week.

“Key information likely to affect the stock market next week includes the results of the US Federal Reserve (Fed)’s meeting, restructuring of two ETF portfolios (June 15th) and information about first-quarter business outlooks of enterprises,” it said.

The inflow of foreign capital was a strong supporter of the market’s upward trend last week.

Foreigners were net purchasers for the first time in nearly two consecutive months of maintaining net selling.

They posted a net buy value of more than VNĐ122.8 billion on both exchanges.

Hoàng Thạch Lân, head of individual client analysis at Việt Dragon told tinnhanhchungkhoan.vn that the significant improvement in trading volume of foreigners in the past two weeks has created a solid foundation, at least psychologically, for investors to become more confident in the market.

However, the movements of foreign traders will be hardly predictable, as it will much depend on the Fed’s moves, he added.

According to Vũ Minh Đức, head of market analysis at Việt Capital Securities JSC (VCSC), in May, foreigners were increasingly accelerating net selling.

This period of time also witnessed the wave of capital withdrawal of foreign investors from emerging markets to shift towards the US market due to the increasing attractiveness of the US dollar.

“However during the current time, while observing the volatility of foreign-run exchange traded funds (ETFs), we do not see the trend of strong capital withdrawals,” Đức said.

This showed that most foreign capital flows were still being kept in the Vietnamese market to wait for the coming IPO wave, or beyond, for the prospect of the market being upgraded to emerging market status from its current frontier market, he added.

“Thus, although the Fed may continue to raise interest rates in this June meeting, the Vietnamese stock market is still attractive enough to compete with the strength of the dollar,” Đức said.

Technically, according to him, the market had found its bottom and will maintain an upward trend with the new target of reaching 1,080 points.

Sharing the same idea, Nguyễn Thế Minh, head of analysis at Yuanta Securities Vietnam Co, said cash flow had spread among large-cap stock groups last week and the pressure of adjustment due to profit-taking remained low.

“Although the market will see adjustments during some coming trading sessions, I still believe that it will continue to maintain its uptrend momentum next week,” Minh said.

Buyback scheme

Buyback schemes of large-cap business owners and their related shareholders have helped boost stock prices.

Among local stocks that have seen prices rise after business leaders and their relatives registered to purchase shares back was Vietnam Prosperity Joint Stock Commercial Bank (VPBank).

After debuting on the southern exchange in mid-August last year at VNĐ39,000 ($1.73) per share, VPBank (VPB) rose 77.7 per cent in eight months to the highest value of VNĐ69,300 per share on April 9. VPBank erased that growth to close May 28 at VNĐ38,800 per share – its post-listing record low.

VPBank shares had jumped 33.5 per cent since its record low to end Friday at VNĐ51,800 per share after the bank chairman’s wife announced on May 29 she would buy five million shares and the bank itself last week planned nearly VNĐ2.5 trillion on purchasing back 73.2 million bonus shares.

Chairman Nguyễn Đức Tài of Mobile World Investment Corporation (MWG) on May 29 registered to buy 100,000 shares after the company shares had experienced strong volatility for two months, ending May 28 at VNĐ102,300 per share.

This was also the first time Mobile World’s chairman registered his share buyback since the firm’s listing on the HCM Stock Exchange in July 2014. It has boosted MWG nearly 18.3 per cent to end Friday at VNĐ121,000 per share.

Budget carrier Vietjet (VJC) on April 2 reached its record high of VNĐ226,890 per share but then slipped to VNĐ147,000 per share on May 30. The firm’s managing director Lưu Đức Khánh registered to purchase 500,000 shares and VJC shares have gained 22 per cent to end Friday at VNĐ172,000 per share.

Source: VNS

 

Controversial draft law on special zones postponed

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The vote to approve the controversial draft Law on Special Administrative and Economic Units will be postponed until the sixth National Assembly session, to commence in October, instead of the on-going fifth.

According to a special announcement released early on Saturday morning from the Government Office, the postponement aims to provide the Government with more time to study and complete debates on the draft law.

The Law on Special Administrative and Economic Units of Van Don, Bac Van Phong and Phu Quoc had been built carefully and elaborately to institutionalise Party resolutions and materialise the 2013 Constitution to create a legal basis for the construction of three special economic zones, said the announcement.

The draft law was submitted to the month-long fourth National Assembly last October and November for comments.

After receiving enthusiastic and considered opinions of NA deputies, scientists, economists, experts, voters and people throughout the country during the current fifth NA meetings, the Government agreed with the NA Standing Committee to re-consider and postpone the adoption of the draft law until the next meeting.

The move is hoped to meet the requirements and aspirations of NA deputies, voters and people to successfully build three special zones, firmly maintaining national security and sovereignty.

Regarding the duration of land leases, the Government will consider and submit to the National Assembly for adoption regulations as prescribed in the Land Law. There will be no regulations on a special land lease of up to 99 years in special economic zones.

Earlier on Thursday, on the sidelines of the NA’s fifth session, Prime Minister Nguyen Xuan Phuc affirmed to media that all opinions on the land lease period detailed in the draft law would be considered, and reasonable adjustments will be made to meet people’s aspirations.

Recently, the regulation regarding land lease of 99 years in the draft Law on Special Administrative and Economic Units of Van Don, Bac Van Phong and Phu Quoc (in Quang Ninh, Nha Trang and Khanh Hoa provinces, respectively) has been a hot topic among the public.

Source: VNA

Sadness at Vietnam noodle shop where Bourdain dined with Obama

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The owner of a Hanoi noodle shop where Anthony Bourdain slurped down ‘bun cha‘ with former US president Barack Obama expressed her shock and sorrow Saturday over the death of the globetrotting American celebrity chef.

Bun Cha Huong Lien restaurant in the Vietnamese capital’s leafy Old Quarter soared to fame after the 2016 sit-down between Obama and Bourdain for his CNN show.

The pair shared a simple meal of pork noodles and fried spring rolls — each dish worth around $3 — and photos of the casual dinner quickly went viral.

Bourdain died by suicide while in France filming an episode of his Emmy-winning CNN food and travel programme “Parts Unknown”, the network said Friday. He was 61.

“I was surprised and sad when I heard about (Bourdain’s) death,” Nguyen Thi Nga, co-owner of Bun Cha Huong Lien restaurant told AFP.

“(Bourdain) was a nice, friendly and folksy person… He praised our bun cha dish and its fish-sauce broth. He loved Vietnamese food,” Nga said.

Obama posted a tribute on Twitter to Bourdain on Friday, sharing a picture of the pair drinking beer during the meal which took place during his state visit to Hanoi.

Bourdain came to Vietnam several times throughout his life, making several TV programmes about his fascination with the country’s food.

Inside the restaurant, as hungry customers poured in for lunch on Saturday, diners gave extra attention to the glass box in which the table and chairs used by Bourdain and Obama are preserved.

“I came here to share the grief of the loss of such a talented chef… he was a such a special person because he had such a great passion for Vietnamese food,” customer Nguyen Quan told AFP.

Source: AFP

 

Vietnam’s beer market has potential, but not for all

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Vietnam remains one of the few beer markets in the world which is still maintaining high growth. However, not all breweries have succeeded in the market.

Despite big difficulties because of new policies, a luxury tax and fierce competition, the brewing industry can obtain an annual 5 percent growth rate, according to Vietnam Association of Liquor, Beer and Beverage (VBA) chair Nguyen Van Viet.

“While consumption in other markets has levelled off, the Vietnamese market remains full of potential,” Viet said at a recent workshop on beverages.

Euromonitor also commented that Vietnam is a market with great potential thanks to street food culture and rapid urbanization, predicting that beer consumption in Vietnam would peak in 2016-2021.

The market is so attractive that Thaibev accepted to pay $5 billion to acquire Sabeco, which holds the largest market share.

Vietnam is a market with great potential thanks to street food culture and rapid urbanization, predicting that beer consumption in Vietnam would peak in 2016-2021.

In 2008, Vietnam ranked eighth in Asia in beer consumption. Eight years later, it ranked third, below Japan and China.

However, Vietnam has become a ‘battlefield’ for brewers.

Vietnam saw ‘beer clubs’ mushrooming in 2015-2016, and now many of them are shutting down. Of big brewers, only Heineken and Sabeco have been prospering, while others have made unsatisfactory profits. Sapporo has reported sales increases, but its expenses for marketing and ads are very high.

Four years after squeezing into the beer market, Masan, a big consumer goods manufacturer, marketed Su Tu Trang (White Lion) product. However, the product is rarely seen at sales agents or on supermarket shelves.

Prior to that, a series of big players failed. These include Laser brand of Tan Hiep Phat Group.

The product advertised as ‘the bottled fresh beer present in Vietnam for the first time’ had a selling price higher than Tiger beer and nearly the same as Heineken. Only one year after launching the product and spending $3 million on advertisements, Tan Hiep Phat had to stop production.

Foster’s, after 10 years of trying to seek a foothold in the market (1997-2007), was transferred to APB. The value of the deal was $105 million, according to some sources.

Sabmiller once joined forces with Vinamilk to build a 100 million liter per annum brewery in Binh Duong province. However, its product remains unfamiliar to Vietnamese. Meanwhile, Vinamilk left the joint venture after two years of operation.

According to VBA, 4 billion liters of beer were consumed in 2017, with 45 liters of beer per capita a year.

Under the beverage industry’s development strategy, Vietnam would produce 4.1 billion liters of beer by 2020 and 5.5 billion liters by 2035.

Source: Vietnamnet
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