Beat the summer heat with millet rice crackers

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Crunchy delight: The seller cracks the round rice paper into two pieces and folds the cracker in the middle creating a type of sandwich. — Photos courtesy of blogger Pitbull Son

It’s easy to recognise a vendor selling banh da ke (millet rice cracker).

He or she will have plastic bags of crispy rice paper crackers on the front of their bicycle and pots of green beans, millet and sugar on the back.

People eagerly wait to munch on this snack during summer – the season of millet. For those growing up in Hanoi, the dessert recreates childhood memories as it has been popular in the city for decades.

Each portion consists of a large, round rice paper cracker, spread with millet paste, sprinkled with mung beans and topped with sugar. The seller cracks the rice paper into two pieces and folds it in the middle to create a type of sandwich.

The dish mixes the crispness of the rice cracker, aroma of millet and the sweetness of sugar and mung bean puree.

Step by step: Each portion consists of a large round rice paper cracker spread with the millet paste, sprinkled with mung bean and topped with sugar.

Consuming cool ingredients, such as millet and green beans, helps reduce body heat, according to food blogger Ngo Thu Huong.

“All ingredients to make millet rice cracker are good for health. A little bit of sugar is added to make it more delicious. Depending on the taste of each person, the sellers can add little or more sugar. The millet that is chosen to make the dish must be small and polished seeds. When cooking the millet, it must be stirred evenly so that it does not become a mash or gets too dry and especially does not burn,” she says, adding that it is easy to make the dish at home.

The cooked millet, which is sparkling yellow and slightly fragrant, is poured into a clean brazier. Mung beans are steamed and pressed into blocks.

To prepare the dish, cooked millet is spread over the surface of a crispy rice cracker. A thin layer of green bean powder and sugar are then added on top of the millet.

Variety: Some sellers give customers an option of enjoying the dish with coconut.

The cake catches the eye of many passers-by with its yellowish crust, which appears thick, sticky and crispy. The crispy and crunchy cakes, gently mixed with the sweetness of sugar and beans, creates a unique yet addictive taste.

Apart from the taste, people also enjoy the aroma and sound of cracking rice paper.

I remember when I was young, the dish was priced at VND2,000. Today, 20 years later, it costs VND10,000-15,000. But even after so many years, its flavour has not changed. The best time to enjoy the millet rice cracker is immediately after it has been prepared as the cracker loses its crispiness after a few minutes.

Many street vendors in Hanoi sell millet rice cracker, so it can be found in almost every corner of the city. They not only sell street food, but also reflect the culture and cuisine of the Hanoians.

Scrummy: The dish contains a harmonious taste of the crispness of the rice cracker, the aroma of millet and the sweetness of sugar and mung bean puree.

The millet pancake is not a luxurious food item, and it gives people a sense of relishing a simple dish in a simple way.

Vendors riding bicycles or carrying baskets with ingredients inside attract not only the local people but also foreigners. Millet rice cracker requires cheap ingredients and is easy-to-make. It is one of the favourite street foods of Hanoians.

By Minh Thu, Source: VNS

Foreign investors continue to be net sellers in stock market

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Analysts have found similarity between foreign investors’ net sales in Vietnam and global capital flow trends.

The total net sales by foreign investors under the order-matching mode since the beginning of February reached VND10.6 trillion, twice as much as the net purchase of VND5.3 trillion in January as reported by SSI Retail Research.

The capital flow through ETF has not been withdrawn, but analysts don’t think the strong inflow earlier this year will be seen again.

A report shows that foreign investors’ capital which flowed to Vietnam through M&A deals in the first four months of the year was $2.26 billion, increasing by 67 percent yearly. The capital helps stabilize the macroeconomy, but it has little impact on the stock market.

On May 22, the stock market witnessed a sharp decrease of shares with large capitalization value on both the Hanoi (HNX) and HCMC (HOSE) bourses. Even shares belonging to top 10 companies with largest capitalization value could not find buyers.

The capitalization value of HOSE lost VND88 trillion, or $3.85 billion, just after one trading session. Meanwhile, foreign investors sold more than bought by 9 million, worth VND600.47 billion.

On May 23, the stock market closed with green lit electronic boards, but foreign investors once again had high net sales of 4.19 million, worth VND675 billion on HOSE.

A similar thing happened on May 24, but the net sales were lower, 4.32 million shares, worth VND147 billion.

SSI reported that the VN Index which once climbed to a high of 1,180 points on March 28 has lost 20 percent just over the last two months.

According to Nguyen Duc Hung Linh, said foreign investors had continuously sold shares, while Vietnam’s stocks are overvalued.

Foreign investors mostly sold shares with high capitalization value such as VIC, VCB, VJC and MSN, so the sale has had a big impact on the VN Index.

Regarding stock valuation, the PE at the end of March was 21 much higher than the 5-year average level of 14.6 and 2016-2017 average level of 15.4. Vietnamese banks were expensive compared with other banks around the world.

Linh said that there is clear evidence of close relations between big net sales by foreign investors since February and what is happening in the global finance market.

Doanh Nhan Sai Gon also quoted sources as reporting that capital outflow can be seen in many countries, including in Asia such as Malaysia and Indonesia.

This has affected the investment viewpoints of investment funds pouring money into Vietnam.

Source: Viet Nam Net

Sharp to buy Toshiba’s PC business for $36m

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Parent Foxconn would help Osaka-based unit re-enter the market

Sharp on Tuesday said it plans to acquire Toshiba’s money-losing personal computer business for an estimated 4 billion yen ($36 million), re-entering a market it withdrew from eight years ago.

The Osaka-based electronics maker hopes to build on the expertise of parent Hon Hai Precision Industry, the Taiwanese contract manufacturer also known as Foxconn.

Toshiba, for its part, wants to shed unprofitable operations as part of its restructuring efforts.

Under a contract the two companies are expected to sign this week, Sharp would purchase a roughly 80% stake in Toshiba Client Solutions, a wholly owned Toshiba subsidiary, by Oct. 1. Toshiba would keep a stake of about 20%.

Known for releasing the world’s first mass-market laptop in 1985, Toshiba grabbed a world-leading market share for a time with its Dynabook line. But in recent years, competitors like China’s Lenovo Group have taken the lead, while smartphones and tablets have eaten into the PC market overall, depressing sales.

Sales for Toshiba’s PC business declined 13% on the year to 167.3 billion yen in fiscal 2017, with its operating loss growing to 9.6 billion yen from the previous year’s 500 million yen. The conglomerate has been pushing ahead with restructuring, and recently sold its cash cow memory chip arm in order to help rebuild its finances.

Sharp pulled out of its PC business, which included the Mebius line, in 2010 as competition intensified and earnings deteriorated. But the company has changed course since moving under the umbrella of Foxconn in 2016. Foxconn has experience with efficiently producing PCs in large volumes for American companies such as Dell, as well as a network for procuring parts at low cost. Sharp believes these factors could help it lift the Toshiba PC business back into the black.

Sharp President Tai Jeng-wu, a cost-cutter sent by Foxconn, has described information technology equipment as the most fertile field for cooperation between the parent and the subsidiary. Developing the market using Toshiba’s brand was judged to be faster and more efficient than trying to revive the Mebius label.

Sharp would also benefit from producing its own computers, since it has strength in small and midsize liquid-crystal displays.

Under Foxconn, Sharp has ramped up efforts to expand its multifunction printer business in the U.S. and Europe, such as by purchasing local distributors. Sharp expects synergies from this business and Toshiba PCs, which are widely used at European and American corporations.

Source: Nikkei Asian Review

Change needed to save the oceans from plastic

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While many Vietnamese people do not think that single-use plastic items like cups, straws or bags could harm the planet, the consequences of plastic pollution of the world’s oceans are all too real. However, a global change in mindset is now taking its first steps in Vietnam.

When I heard about how a rare green turtle had died from eating plastic bags, mistaking them for jellyfish – its favourite food – I suddenly became acutely aware of my lifestyle choices.

Looking down at my work desk, I see a bunch of beautiful red roses that will never wither as they are made entirely of plastic, and some empty plastic containers that used to hold individually-wrapped sweets. Reflecting honestly for a moment, I realised these are only small examples of a wider disposable plastic habit that I should be ashamed of, being someone who hopes to contribute to a better environment.

Earlier, I picked up a bubble tea served in a tall plastic cup, sealed with a plastic cover, pierced with a plastic straw, and carried in a plastic bag – all just so I could escape the heat, transporting it the 100 metres to my office in central Hanoi.

Looking more closely at my afternoon treat, I come to understand that, like the chewy tapioca pearls bobbing in my cup, I am only a speck in the mass consumption of plastic in Vietnam, where the creamy, sweet, flavoured tea is a widespread attraction for thirsty drinkers all over the country.

A bubble tea wave
Since the turn of the millennium, the Taiwanese bubble tea phenomenon has altered drinking habits and come to be considered the “king of beverages”, with studies showing there is still room for the ready-to-drink tea to grow further in the market. According to London-based researcher Euromonitor International, the Vietnamese milk tea market is valued at $282 million and has an annual growth rate of around 20 per cent.

Euromonitor data ranks Vietnam the world’s fifth-biggest consumer of bubble tea, with over 1.3 million litres sold in 2017 – more than in Taiwan, the home of bubble tea, and only just behind Indonesia, which boasts a population nearly three times the size.

Due to climbing profits, every four days on average in Vietnam currently see the establishment of a new milk tea shop. Searches on the top food and beverage application Foody show there are more than 5,000 places selling bubble tea in the three biggest cities of Hanoi, Danang, and Ho Chi Minh City. The application also calculates that the remaining 60 cities and provinces have somewhere between dozens and hundreds of bubble tea shops. These are only the sweet spots listed on the app, with the reality being an even greater figure.

According to a local bubble tea shop proprietor at Trich Sai street in Hanoi, the transparency of the plastic cup creates a more beautiful serving, as customers can see its individual layers of fresh fruit or custard pudding added to provide a richer taste.

As an on-the-go drink, the straw is necessary to stir the drink’s components. “Imagine buying an iced takeaway beverage without a straw. With the ice melting, the drink becomes diluted and sediment will settle,” he explains.

At the same time, he told VIR that sellers seal the cups for takeaway customers to prevent spillage, and so a straw is also necessary to pierce through the film.

Raising awareness
Nguyen Thu Hang, who works in a local media company, always uses a straw to keep her lipstick intact and to avoid getting a ‘milk moustache’ when she has her favourite creamy tea.

Like Hang, a mother of two sons, Nguyen Phuong Mai told VIR she felt safer letting her kids use a straw with their milk boxes, as she fears they would get dirty at some point during the transportation process.

While both Hang and Mai do not think the use of small disposable straws can do damage to the environment, an environmental organisation that discourages the use of plastic straws, Strawless Ocean, confirmed that they are indeed destroying marine life.

It is estimated that more than one million sea birds, 100,000 marine mammals, and countless fish are killed by plastic pollution each year. Straws are one of the top 10 contributors to sea pollution. In fact, a turtle was once found with over 1,000 pieces of plastic in its stomach.

Strawless Ocean explained that as most plastic straws are too lightweight to make it through the mechanical recycling sorter, they drop through sorting screens and mix with other materials that are too small to separate, contaminating recycling loads or being disposed as garbage. Unable to biodegrade quickly, they then wind up in the ocean.

What is more, straws create pollution at every stage of their existence, from oil drilling and manufacturing to shipping and distribution. It is estimated that 8 per cent of the world’s oil production is used to manufacture plastics.

Strawless Ocean states that 71 per cent of seabirds and 30 per cent of turtles have been found with plastics in their stomachs. Plastic can remain in the environment for over 2,000 years without degrading.

At the launch of the “End Plastic Pollution” campaign last month, the US Embassy in Vietnam quoted a University of Georgia study from 2015 saying that Vietnam was the fourth-greatest contributor to plastic ocean pollution worldwide.

While there are no official figures on how much plastic material is used in the local food and beverage industry, Nghiem Thanh Tung, who produces plastic cups and straws for bubble tea shops, told VIR that some of their larger client locations are likely to place orders of around 10,000 plastic cups, with about 20 kilogrammes of plastic straws every three months.

Saying no to plastic
At the same time, a number of countries around the world have taken major steps to cut plastic waste. Chile has prohibited the sale of single-use plastic bags in 102 coastal villages and towns. Kenya introduced a law that slaps a fine, or even a gaol sentence, on anyone who manufactures, sells, or even carries a plastic bag. And just last month, Scotland announced plans to ban the manufacture and sale of plastic-stemmed cotton buds.

As the birthplace of bubble tea, Taiwan recently vowed to ban all single-use plastics for an entire switch to reusable or biodegradable items. Under the plan, plastic beverage cups will be restricted and, by 2025, users will have to pay an extra fee to use them. By 2030, plastic takeaway beverage cups will be completely banned.

In Vietnam, while the majority of the growing bubble tea industry has not yet reacted to environmental concerns, a cafe in Ho Chi Minh City recently called on its clients to bring their own cups and plastic bags, and either to bring their own straws or use none at all. Responding to the global “Say No to Straws” movement, the cafe offered customers a small discount of VND5,000 ($0.2) for their efforts. Moreover, several beverage shops have begun using non-plastic straws, made of bamboo, stainless steel, glass, or silicone.

Nguyen Dang Hung, CEO of Bamboo Straw Vietnam, told VIR he is currently selling bamboo straws on the international market, especially in Europe, where the anti-plastic trend is much stronger. There are many countries that have banned the use of plastic straws, which creates a huge opening in the market for Hung and his colleagues.

Hung’s business has grown fivefold since it began three years ago, and he is looking to develop more environmentally friendly products such as trays, glasses, bowls, and shopping bags to serve the growing global demand.

Cost is an issue
Local partnerships for Hung’s business have been hard to come by in Vietnam, as the higher prices of environmentally friendly straws remain a key issue. Currently, a single bamboo straw costs VND9,000 ($0.40), while 500 plastic straws, weighing one kilogramme, cost only VND50,000 ($2.20). This makes a bamboo straw around 90 times more expensive than a plastic one.

However, Hung still managed to team up with the likes of the Chàouen Lounge, Hanoi Taco Bar, and Winston’s bar, all in Hanoi. Outside of the city, he has found clients such as Premier Village resorts, Amanoi resorts, and the InterContinental’s Phu Quoc and Danang sites.

Hung believed that although environmentally friendly habits in Vietnam are not as prevalent as in other countries, small steps are still “such a positive change”, with a rise in public awareness of potentially enormous environmental detriments caused by small objects like straws.

It is entirely possible, however, to have your favourite bubble tea without a plastic straw, Hung said, “Consumers have the choice: Pay now for a non-plastic straw for the betterment of the environment, or get a plastic one for temporary convenience and face the consequences later.”

As for me, I have just finished mixing my Moringa drink in a glass bottle, which used to contain Japanese Choya wine, and am having it without a straw. I am telling myself I need to create a more environmentally friendly lifestyle because I love being by the sea and care about marine life. More importantly, I would like my children and grandchildren to see turtles, fish, and other creatures in the ocean in the future, not just floating plastic.

Source: VIR

Captain Sidewalk hits Saigon streets again

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Three weeks after withdrawing his resignation, Doan Ngoc Hai participates in a sidewalk patrol.
Doan Ngoc Hai, vice chairman of the District 1 People’s Committee in Ho Chi Minh City, is back on the street, continuing a campaign that has almost cost him his job last year.

Hai had soared into public view with a massive take-no-prisoners sidewalk cleanup campaign that earned him both praise and criticism – praise for being proactive and tough, criticism for ignoring the plight of common people trying to eke out a living.

The resultant brouhaha prompted him to put in his papers, and the sidewalk cleanup campaign he pioneered lost steam for nearly eight months.

Three weeks ago, he withdrew his resignation, and on Monday, for the first time since last October, he put in a surprise appearance.

During the patrol, Hai spotted three goat soup stalls that had placed tables and chairs on the sidewalks at the intersection of Nguyen Cong Tru and Pho Duc Chinh in District 1. He immediately instructed the ward’s leader and inspection team to slap a heavy fine on the stalls for repeated sidewalk encroachment and public littering.

Hai also asked ward authorities to tighten sidewalk control in the area, following a May 31 incident where some “security agents” (temporarily drafted to assist the police) were reportedly assaulted and hospitalized by a shellfish stall owner.

Hai asked the police to investigate and impose stricter punishments on the stall owner and her children for the assault against agents on duty.

However, Hai also admitted that the failure of the ward’s leaders and their staff to deal with cases in a fair and transparent way had generated public anger and opposition.

He said a budget shortfall and low salaries given to security agents led to “negative issues” while dealing with sidewalk encroachments and stopped them from doing more.

Hai’s earlier crackdown, following a boast that he would clean up sidewalks and turn District 1 into a “Little Singapore” had gained him instant fame.

During that crackdown, his team put up barriers to stop motorbikes from driving on the sidewalks. Many vehicles, including government and foreign diplomatic cars, were towed, constructions that spilt out onto the street, some of which belonged to five-star hotels, were dismantled.

Hai received death threats during his campaign, but also gained widespread public support, except from street vendors who were seen crying and yelling after police seized their food stands.

Responding to the controversy, district leaders asked him to step down as the de facto frontman of the campaign last October and replaced his daily patrols with a task force which would only deal with sidewalk encroachments based on tip-offs.

Soon after, the district’s sidewalks were retaken by cars and shops, prompting Hai to submit a letter of resignation last January, saying he had failed to keep his promise to the public.

In the resignation letter, Hai said that his campaign had collided with businesses that had million-dollar interests on the sidewalks, and a large number of officials backing them. The mission needed the support of the entire political system, which he had not received, he said.

In the latest development, Hai withdrew his resignation saying he still felt the need to continue contributing to the city. He said he is willing to undertake any mission now.

Source: Vnexpress

 

Hanoi’s special lotus tea

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Nguyen Thi Dan has made lotus tea in Hanoi’s Tay Ho District for 70 years. In order to make a kilo of good lotus tea, she plucks the flowers that are about to blossom and separates the petals, stamen and pistil. The stamen and pistil are then mixed with a special tea from Thai Nguyen Province. – DanTriNews reported.

A kilo of tea needs 200 grams of stamen and pistil or about 1,000 lotus flowers. The mixture goes through a special marinating process before being dried and marinated again for seven times in order to let the lotus scent and taste soak into the tea. This long process is probably why West Lake lotus tea is one of the most expensive teas in Vietnam. A kilo of West Lake lotus tea is sold for VND10m (USD400).

Dan said she only made five to six kilos each year because of the delicate process.

“Each lotus tea makers have their own secrets and process. My tea is completely handmade and we don’t use any additional ingredients. We have regular customers who have been using our tea for years,” she said.

In recent years, the tea makers have used whole lotus flowers to make a type of tea called tra xoi. The dried tea leaves are put into the flowers which are kept fresh in the water for two days and in the refrigerator for one day. Finally, they use lotus leaves to wrap around the flowers and put them into the freezer compartment.

Tra xoi is much cheaper and is sold for VND30,000 (USD1.20) to VND50,000.

According to Dan, the tea is best made in Yixing teapots and 90-95 degree just-boiled water. “In the past, they even banned women on their period from touching the flowers, thinking that it would affect the scent,” she said. “The flowers used to make teas are very clean and safe.”

However, the number of lotus flowers in the West Lake are dwindling. Some people have to plant the West Lake lotus in neighbouring lakes. Dan said those flowers couldn’t match the original subtle and elegant taste.

To many households in Quang An Ward, making lotus tea is a way of preserving one of Hanoi’s oldest crafts.

US to crack down on illegal shrimp imports

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HÀ NỘI — The US National Oceanic Atmospheric Administration (NOAA) has confirmed that foreign shrimp and abalone will be added to the Seafood Import Monitoring Program (SIMP) beginning on January 1, 2019. – .

The SIMP requires importers to report traceability information on imported seafood from point of capture to point of first sale in the US in order to thwart illegal, unreported and unregulated (IUU) fishing activity.

Accordingly, American shrimp importers have until December 31, 2018 to comply with the regulations under the SIMP programme.

Specifically, shrimp importers must be US citizens. They are required to obtain an International Fisheries Trade Permit, submit harvest and landing information on those products to the USA Customs and Border Protection International Trade Data System prior to entering the USA and maintain supply chain records from the point of harvest to the point of entry into the USA for a period of two years.

The SIMP also allows NOAA and related agencies to check mandatory supply chain information provided by importers.

This will strengthen US government efforts to combat IUU fishing and a range of fraudulent activities in the shrimp import chain attributed to dishonest importers who violate US consumer safety laws and trade.

Shrimp imports may involve a range of illegal activities, including illegal IUU fishing; use of dangerous and illegal antibiotics in farms abroad; employing slave labor on international fishing vessels, shrimp farms and processing plants; evasion of US anti-dumping duties and noncompliance with Food and Drug Administration (FDA) food safety laws.

Việt Nam’s shrimp exports to the US in the coming time are expected to face many challenges.

Last year, the US market dropped to the fourth among the top leading buyers of Vietnamese shrimp, accounting for only 17 per cent of Việt Nam’s total shrimp exports.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), in 2018, Việt Nam’s shrimp exports to the US are showing more positive signs. In the first two months of 2018, shrimp exports to the US reached US$75 million, up 6.6 per cent over the same period in 2017. The US had risen to the second rank behind the EU among top importers of Vietnamese shrimp.

Facebook and Google unlikely to leave over local server issue

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Facebook and Google are not likely to leave Vietnam over the issue of installing servers in the country as they are making bank on Vietnamese users’ demand for their services.

Vtc.vn quoted Nguyen Phan Anh, Master of Economic Law, as saying that the two famous technology brands would never give up the Vietnamese market, which is one of their most potential markets.

“Despite the requirement that Facebook and Google installed servers in Vietnam may result in friction at first, I do not think the firms would leave Vietnam over it,” Anh affirmed.

Data released by We Are Social stated that as of July last year, Vietnam ranked seventh among the countries with the highest number of Facebook users with 64 million. In particular, more than 60 per cent of Vietnamese users are teenagers and young people.

Related topic: “What Is Local SEO?

Meanwhile, Google is the go-to searching tool of the entire world, not just Vietnam.

“Surveys by international organisations show that Vietnam remains in the top 20 countries with the highest number of internet users. Therefore, foreign firms like Facebook and Google will not easily leave the market,” Anh explained.

Currently, data about Facebook and Google’s 2016 and 2017 revenue in Vietnam has yet to be officially announced, but data from 2015 released by Vinalink show that Facebook led the online advertising market in Vietnam with the revenue of VND3 trillion ($132.1 million), followed by Google with VND2.2 trillion ($96.9 million).

In the same year, the rest of the VND1.9 trillion ($83.7 million) market lay in the hands of domestic advertising companies, including Admicro, Adtima, Coc Coc, and others. These numbers show a huge imbalance between foreign and domestic firms.

Anh also stipulated that requiring foreign firms to establish representative offices and install servers in Vietnam will benefit the Vietnamese economy because the firms would need to invest locally, creating jobs for Vietnamese people. Similarly, domestic firms would also receive significant investments from foreign firms.

On the other hand, in case the foreign firms withdraw from Vietnam over the requirement, despite the initial difficulties, the gap will likely be quickly filled by domestic technology firms.

Therefore, the worry that Facebook and Google’s withdrawal from the domestic market would reduce the GDP growth by 1.7 per cent and FDI inflows by 3.1 per cent (numbers put forward by the Vietnam Digital Communications Association) may be unreasonable.

Maybe the government should take firmer measures to effectively control the business of the two technology giants as well as put a stop to their year-long tax dodging.

Source: VIR

PE investors give stamp of approval

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Private Equity (PE) investment in Vietnam remains a significant driver behind its economic growth. According to the 17th survey on PE Investment, released by Grant Thornton in April, the majority of respondents (84 per cent) were positive about Vietnam’s economy.

Investment outlook

Respondents expressed optimism towards Vietnam’s investment outlook with regard to the acceleration in the level of investment activities, while the country has risen to be the most preferred destination for PE investors in Southeast Asia. In terms of attractive industries, as home to around 95 million people and with an expanding middle and upper class and increasing disposable incomes, Vietnam still expects consumerism-driven industries to be performing well in 2018.

There was a significant increase in respondents’ confidence in investment activities in Vietnam in 2018 compared with 2017. While 86.7 per cent of responses (the same as in the last survey) foresaw an increase in the level of investment activity in Vietnam, the number of respondents who chose “Significant increase” rose from 8.7 per cent to 28.9 per cent.

Foreign direct investment (FDI) continued to be the major driver for the economy, as registered FDI reached a record high of approximately $35.9 billion in 2017, a 44.4 per cent increase compared with 2016. The largest contribution came from the processing and manufacturing sector (44.3 per cent), while Japan and South Korea continued to be the largest source of capital, contributing 25.4 per cent and 23.7 per cent, respectively, of total registered FDI. Foreign indirect investment (FII) also reached a ten-year high, with foreign investors’ net long value on Vietnam’s stock exchanges reaching $1.2 billion in 2017.

FDI disbursement will likely enjoy double digit growth in 2018, stemming from the large amount of registered FDI in 2017. Moreover, several trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the EU-Vietnam Free Trade Agreement (EVFTA), are expected to come into effect in 2018 and will be key drivers of FDI.

The general outlook for Vietnam’s economy is expected to continue to be positive. GDP is targeted at 6.5-6.7 per cent in 2018 and inflation forecast to remain under 4 per cent; higher than the figure of 3.5 per cent in 2017 due to the risk of rising commodity prices.
Vietnam continued to be the most attractive destination for investors when compared with neighboring countries. Twenty-eight per cent of respondents chose Vietnam as their No. 1 destination, followed by the promising investment spots Myanmar and Indonesia, chosen by 15 per cent of respondents.

With an optimistic view of Vietnam’s economy, we are looking forward to steady growth in PE investment over the coming 12 months.

Investment consideration

Source: Grant Thornton Vietnam, April 2018

Investment obstacles

Though the investment outlook has potential, investors harbor significant concerns over inconsistent and opaque investment regulations and policies as well as on the issue of corruption, the survey found.

The government has been making considerable efforts to improve the business and investment climate. In September 2017, the Ministry of Industry and Trade issued Decision 3610a/QD-BCT simplifying administrative and investment procedures by removing 675 investment conditions, which accounted for 55.5 per cent of the number of existing conditions. The government also opened up certain sectors for foreign investment through M&As and joint ventures. Nevertheless, barriers to investment remain, most significantly the changing and opaque business and investment regulations and processes.

While there are no discriminating laws against foreign investors, foreign investors find investment opportunities undermined by the lack of transparency in processes dealing with the government and authorities, and in many cases the complex licensing procedures require investors obtain approval from several ministries, agencies, and provincial authorities. There are also differences in procedures and interpretations of investment laws and regulations (US Department of State – Vietnam Investment Climate Statement, June 2017).

In relation to corruption, Vietnam’s Corruption Perceptions Index (CPI) increased from 33 to 35 points in 2017 and ranked 107th out of 180 countries; an increase of six spots from 2016 according to Transparency International (TI). This shows that steps taken in anti-corruption practices have had some effect. However, ranking 107th out of 180 in the global index means that one of Vietnam’s critical challenges is still fighting corruption.

Restrictions on foreign investment remain an issue. Despite the government’s efforts to lift foreign ownership limits, there are still strict foreign ownership limitations for certain listed companies and service sectors that are attractive to foreign investors.

Industry attractiveness

With the growth of the middle-income class among its population of 95 million people, food and beverages (F&B) remain the prominent industry in terms of rapid growth and foreign investment inflows, followed by the healthcare and pharmaceuticals and retail sectors, which are in strong correlation with Vietnam’s potential consumption market.

Private investment in the F&B sector has remained active over recent years. The most active investors have come from South Korea, Japan, Singapore, and Thailand, as well as domestically. Major deals include the CJ Corporation from South Korea buying 64.9 per cent of the Minh Dat Food Co. and 71.6 per cent of the Cau Tre Food JSC, Kido from South Korea acquiring 65 per cent of the Tuong An Oil JSC, Earth Chemical from Japan acquiring 100 per cent of the A My Gia JSC, and Daesang from South Korea buying 100 per cent of the Duc Viet JSC.
Investment in education and interest in the sector is growing strongly. With a strong social and ethical value system that emphasizes the importance of education and with rising disposable incomes, more and more families can now afford high-quality education, such as private tuition, private schooling, and English language training. The past two years have witnessed a significant number of PE-backed investments into the education sector, notably Mekong Capital investing $4.9 million into the Yola Education JSC, EQT Capital Partners investing in the ILA English language Training Center, and TPG acquiring stakes in Vietnamese concerns.

Despite not being highly rated, we expect that the renewable energy sector, especially the solar energy sector, will attract a good level of investment in 2018 thanks to the government’s incentives to attract investments. Notably, a favorable electricity price of 9.35 US cents per kWh will be applied for a 20-year term to solar power projects reaching commercial operations before June 30, 2019. Hence, it is expected that investment into solar power projects will need to speed up to meet this date.

Source of transactions
According to the survey, 62 per cent of respondents expect to be “net buyers” in 2018, a decrease of 8 per cent compared to our last survey. Additionally, more investors expect to be neutral between long and short positions in 2018. Thirty-three per cent of PE respondents rated “Private/family owners” as the most significant source of deals this year, compared to only 24 per cent last year. SOE divestments, as expected, were a significant source of deals in 2017. The government successfully raised around $6.4 billion by divesting stakes in SOEs in 2017, according to an official report. The proceeds were 2.4 times higher than the target set by the National Assembly.

Outstanding deals include the divestment of 53.6 per cent in the Saigon Alcohol Beer and Beverages Corporation (Sabeco), with proceeds of $4.8 billion, 3.3 per cent in Vinamilk for $390 million, and 49.65 per cent in the DIC Corporation for $80 million.

The government plans to equitize 64 SOEs and divest from 181 this year, which account for 50 per cent and 44 per cent, respectively, of the 2017-2020 target. These do not include a dozen companies that were on the list to be equitized or divested from in 2017 but did not succeed. In the first quarter of 2018 alone, capital raised from the initial public offerings (IPOs) of SOEs reached $940 million, including several major names such as the Binh Son Oil Refinery (BSR), with $245 million, the PetroVietnam Oil Corporation (PVOil), with $184 million, and the PetroVietnam Power Corporation (PV Power), with $308 million. Other anticipated names for 2018 are the Hanoi Beer Alcohol and Beverage Corporation (Habeco), Vietnam’s largest State-owned shipping corporation Vinalines, and Vinafood II. These figures, together with our survey results, show that SOE equitization and divestment will still be a major story in 2018.

By Vinh Ha Nguyen, Advisory Partner/(Grant Thornton Vietnam survey team)
Source: VN Economic Times

Grab now has more rivals than ever before

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Grab has announced a strategy on developing an ecosystem of services, from ride-hailing services and food ordering to lending. However, with the expansion strategy, it will have more rivals than ever.

Multi-billion dollar market
From an e-hailing app, Grab has made great steps forward, providing many different services. Most recently, it started the payment service GrabPay and lending service Grab Financial.

The consumer lending market in South East Asia is very large. As estimated by the World Bank, about 2 billion people in the world cannot access bank services, and most of them are in Asia Pacific.

The non-cash payment market, according to Grab, is worth $500 billion in South East Asia.

An analyst commented that Grab is wise taking a ‘roundabout’ approach to consumer lending (it conquered the transport market first before aiming for the consumer credit market).

Consumer lending is a fertile business field for Chinese e-commerce firms. The firms offer online payment apps to users to ‘learn’ about their financial capability.

Grab, as an app, quickly attracted users, especially investors. Just within six years, Grab became an unicorn company, i.e. an unlisted technology firm with valuation of $1 billion and higher, in South East Asia. Analysts estimate that Grab is valued at $6 billion.

The total number of Grab downloads has reached 95 million all over South East Asia. This could serve as the launch pad for it to conquer the consumer lending market.

The challenges

“GrabPay e-wallet will be used for both transport and food delivery services, two of the most used services in South East Asia,” said Jerry Lim, director of Grab Vietnam.

However, the analyst said, by expanding its business, Grab would have to compete with more rivals who are ‘powers’ in their fields. In online payment, for example, it will have to compete not only with AirPay (Sea) and Alipay (Alibaba Group), but also with local firms such as ZaloPay (VNG) and MoMo.

In Indonesia, Grab bought an e-commerce platform, Kudo, in April 2017. Grab believes that this is the factor which can help expand GrabPay. However, in Vietnam, Grab’s two big rivals – Sea and Alibaba — both have strong support from two popular e-commerce floors – Shopee Vietnam and Lazada Vietnam.

Similarly, GrabFood has rivals in the food delivery sector, where Sea’s Now, which inherited the large custom from Foody, is the leader.

By Kim Mai

Source: Viet Nam Net

Cuba, Vietnam Sign Significant Trade Agreements

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Havana, Jun 4 (Prensa Latina) Cuba and Vietnam signed today several commercial collaboration agreements that will favor the areas of investment, tourism, and imports between both countries during a business forum held in this city.

During the meeting, held in the capital’s Melia Habana Hotel, the conference on the promotion of investment for trade and tourism of the Vietnamese city of Ho Chi Minh in Cuba was held.

The meeting also includes executives from 23 companies in Vietnam associated with construction, technology and medical equipment, among others.

In order to promote the exchange of trade and investment missions, the Center for the Promotion of Trade and Foreign Investment of Cuba and its counterpart of Ho Chi Minh City, signed a cooperation agreement.

Likewise, the Cuban entity and the company of that Asian country Thai Binh S.A -with 20 years of presence in the island- signed an agreement that seeks to provide support to Vietnamese companies, promoting and introducing their products in the national market.

Thai Binh S.A corporation signed two other agreements with the Company of Artistic and Literary Promotions (Artex S.A), and with the Cuban Industrias Nexus S.A.

The first one plans the promotion of products and services of the company Artex S.A in Vietnam, and the second one aims to produce and market detergents and other products in the Mariel Special Development Zone.

On the other hand, the Saigon Tourism Corporation and the entity in charge of cooperation for the development of bidirectional tourism between Vietnam and Cuba, established an agreement in order to strengthen the cooperation between both nations in the leisure industry.

The Vietnamese delegation visiting Cuba is chaired by Nguyen Thanh, member of the Central Committee of the Party and Deputy Secretary of the Provincial Party Committee in Ho Chi Minh City.

In his opening speech to the business forum, Than said that, along with political relations, the economic and commercial cooperation between Vietnam and Cuba is advancing with significant steps.

He added that the potential that remains to be exploited in the collaboration between both countries is still vast, and expressed the commitment of the government of the city of Ho Chi Minh to create favorable conditions to help the city’s businessmen to export, market and invest in Cuban territory.

During last March, the General Secretary of the Vietnamese Communist Party Nguyen Phu Trong visited Cuba, after which a joint declaration of both governments was issued establishing steps to strengthen economic and commercial cooperation.

 

Vietnam hospital records outbreak of swine flu

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An outbreak of swine flu at a hospital in Vietnam’s Ho Chi Minh City has left 16 patients infected and another 80 quarantined, state media reported on Monday.

The infections began on Friday at Tu Du, the largest obstetrics hospital in the southern city, when a patient due for surgery began showing signs of fever, the Vnexpress news site reported.

Other people in the hospital, including patients and medical staff, began showing flu symptoms shortly afterward.

By Saturday, 16 people had tested positive for swine flu.

Swine flu is a respiratory disease caused by the virus H1N1, originally found in pigs, which causes colds, sore throats, coughs and fever.

The first human outbreak was in 2009, according to the WHO.

Vietnam has recorded 11,000 cases of the disease since the initial outbreak.

At least 17,000 people have died of the disease worldwide.

Berjaya Land exits long-delayed Vietnam financial centre project

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After nearly a decade of delays in project execution, Berjaya Land Bhd (BLand) decided to call it a day. The property group is divesting its investment in a Vietnamese financial centre project at a loss.

In a filing today, BLand said it is selling off the entire 32.5% of total capital contribution in Berjaya Vietnam Financial Center Ltd (BVFC Ltd) to local firms Vinhomes Joint Stock Co and Can Gio Tourist City Corp for 884.93 billion Vietnamese Dong (RM154.86 million) cash. The Edge Market reports.

BLand said a capital transfer agreement was signed between its subsidiary Berjaya Leisure (Cayman) Ltd (BLeisure Cayman) with the purchasers.

BLand’s capital contribution in BVFC Ltd originally amounted to 967.31 billion Vietnamese Dong. “The proposed disposal will result in an estimated loss of about RM25.1 million,” it said.

The multi-billion ringgit Berjaya Vietnam Financial Center (BVFC) project was licensed in 2008, but faced multiple hiccups which hindered the project from being executed.

The development, said BLand, would have comprised an office building, five-star hotel, service residences and shopping mall on a 6.64-hectare land located at 3/2 Street, District 10, Ho Chi Minh City, Vietnam.

However, BLand clarified that BVFC Ltd has not commenced operations.

“The consideration for the proposed disposal was arrived at on a willing buyer willing seller basis taking into consideration, amongst others, the business valuation, earnings potential and future prospects of BVFC,” it added.

The proposed disposal, said BLand, is subject to the approvals from the Department of Planning and Investment in Ho Chi Minh and any other relevant authority.

BLand said the proceeds will be used by the group for working capital, adding that the proposal is expected to conclude during the second half of this year.

Vinhomes, a subsidiary of the Vigroup Joint Stock Co, is involved in real estate trading, consulting, brokerage, auction of real estate and auction of land use rights.

Similarly, Can Gio — a 99.05%-unit of Vinhomes — is also involved in real estate trading, real estate brokerage and real estate services.

In relation to the disposal, Vinhomes will also potentially purchase Berjaya Vietnam International University Town One Member Ltd Liability Co (BVIUT) from BLeisure Cayman, having injected capital into the unit and effectively raising its stake in the firm to 99.2%

BLeisure Cayman, which is left with 0.8% stake in BVIUT, plans to dispose of the stake in the near future.

“Together with the proposed BVIUT Disposal, the BLand group is also in negotiations on the potential sale of another of its Vietnamese subsidiaries,” said BLand, but did not elaborate on the details.

“Barring any unforeseen circumstances, the proposed disposals of all these three Vietnamese subsidiaries upon completion are expected to record significant gain and improve the consolidated net assets of BLand,” it added.

Shares of BLand closed unchanged at 31 sen apiece, giving it a market capitalisation of RM1.55 billion.

By Adam Aziz

Officials Name Vietnam Tour Leader Killed in Vegas Hotel

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Authorities in Las Vegas have identified a 38-year-old female tour operator from Vietnam who was found dead along with a male victim in a hotel room in what police are calling a double killing carried out by an unknown assailant.

According to AP’s report, a 38-year-old tour operator from Vietnam was found dead along with a male victim in what police have called a double killing by an unknown assailant in a Las Vegas Strip hotel room, authorities said Monday.

Sang Boi Nghia died from multiple stab wounds, the Clark County coroner said.

Police said the attack probably happened about 2 a.m. Friday. At least one person later reported arguing had been heard in a room at Circus Circus hotel-casino.

The coroner did not immediately release the dead man’s name, pending notification of his family.

Las Vegas police Lt. Ray Spencer told reporters Friday that both victims were stabbed multiple times.

He said authorities had not made an arrest but there was no active threat to guests at the nearly 3,800-room high-rise hotel. Spencer did not immediately respond Monday to telephone and email messages seeking further details.

Nghia’s daughter, Chau Nghia, told the Las Vegas Review-Journal that her mother owned a tour business in Ho Chi Minh City, Vietnam. She identified the man who was killed as a tour employee. The Associated Press did not immediately find contact information for Chau Nghia.

Sang Nghia and the man were part of a Vietnamese tour group that arrived Thursday in Las Vegas from Los Angeles, police said.

Officials said police were summoned after hotel security went to the room at the request of tour members who became concerned that Sang Nghia and the man didn’t show up for a trip to the Grand Canyon.

The Vietnam Embassy in Washington, D.C., did not immediately respond to emails about the case from AP.

Spencer said police would examine hotel security video to retrace the victims’ steps and to identify any possible assailants.

A statement from Brian Ahern, spokesman for MGM Resorts International, said the hotel owner was cooperating with the police investigation.

The tour group left Las Vegas on Saturday for Los Angeles and the return trip to Vietnam, officials said.

Microsoft is buying code-sharing site GitHub, say reports

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Company is changing its focus from the Windows operating system to tools for developers

Microsoft is buying the code-sharing site GitHub, a developer-focused startup that has become a crucial part of the programming industry, for $7.5bn

The acquisition shows Microsoft further cementing its role as a company built around tools for developers, part of a pivot away from its flagship Windows operating system started by its chief executive, Satya Nadella, four years ago.

“That is why we are so excited about today’s announcement,” Nadella wrote in a blogpost announcing the acquisition. “More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in nearly every country. From the largest corporations to the smallest startups, GitHub is the destination for developers to learn, share and work together to create software. It’s a destination for Microsoft too. We are the most active organisation on GitHub, with more than 2 million ‘commits,’ or updates, made to projects.”

The vast majority of GitHub’s users access the site for free, with the trade-off being that the code they share must remain public. Users can pay for private accounts, while larger companies can pay more for the ability to host GitHub’s platform on their own private servers. The paid-for features reportedly bring in around $200m in annual revenue.

Following the acquisition, GitHub will continue to operate independently and will remain an open platform, Microsoft said. The company committed to continuing to allow to use the programming languages, tools and operating systems of their choice for their projects, and to be able to deploy their code to any operating system, any cloud and any device.

“The enterprise offering will fold nicely into Microsoft’s other businesses,” the analyst Ben Thompson of Stratechery wrote “but … the real win for Microsoft is not incremental peanuts in enterprise revenue but winning hearts and minds with developers broadly.

“In other words, not only should sceptics not be worried about Microsoft unduly favouring their own platforms, they should also be excited that, more than any other potential acquirer, Microsoft is likely to push the individual and community aspects that make GitHub so unique.”

GitHub’s ubiquity has led to some unconventional uses. GreatFire, the activist campaign that works to disseminate information blocked by Chinese web censors, uses GitHub as a distribution platform, ensuring that China cannot block the material without also severely harming its domestic technology industry. The government tried, in 2013, but lifted the ban five days later after an outcry from Chinese coders.

In recent years, GitHub’s popularity as a platform has disguised problems within the business. It has been without a chief executive for almost a year and its revenues have been outpaced by its expenditure, with net losses in the tens of millions. As part of the deal, Nat Friedman, former chief executive of Xamarin, a software firm acquired by Microsoft in 2016, will take over as chief executive.

Microsoft, for its part, has slowly been repositioning itself from being focused on the Windows operating system to a broader suite of developer-focused services, including its Azure cloud platform – the largest competitor to Amazon Web Services – and the Cortana AI suite.

In March, the chief executive, Nadella, finished the reorganisation, axing the Windows division entirely and splitting its responsibilities between a consumer-focused group, led by a former Microsoft Office head, and a developer-focused one, led by the company’s cloud and enterprise chief.

Source: The Guardian

 

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