What future awaits Grab and Uber?

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In case the deal between Grab and Uber fails due to violating the Competition Law, scenarios include Uber returning to Vietnam and Grab selling off Uber’s operations.

Grab and Uber may be forced to cancel
At present, the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade is conducting an official investigation to clarify signs of violation in the deal between Grab and Uber, after a preliminary investigation found that Grab’s market share after the deal will exceed 50 per cent, which goes against the monopoly clauses of the Competition Law. The official investigation will last for 180 days from May 18.

According to the Competition Law, if enterprises participating in an economic concentration have a combined market share of 30-50 per cent, their lawful representatives must notify the competition authority before implementing the concentration, otherwise they will have to pay a fine of 10 per cent of the revenue from the fiscal year previous to the date the deal was completed (if the deal is completed in 2017, the fine is equal 10 per cent of the revenue of the 2016 fiscal year).

To boot, in case the combined market share exceeds 50 per cent of the relevant market, the economic concentration will also be prohibited.

This brings up the question of what Grab will do if its market share exceeds 50 per cent.

Truong Thanh Duc, chairman of Banking Securities Investment Law Co., Ltd., told Vneconomy that if the deal between Grab and Uber violates the Competition Law, Grab will have to cancel the deal with Uber despite the deal is ended, much like the way AVG and MobiFone did.

Notably, MobiFone and AVG had to cancel the transfer of 344.66 million shares, returning to each other what they received according to the agreement. The total value of the deal was VND8.889 trillion ($392 million).

Selling Uber’s operation to third parties
Nguyen Minh Duc, representative of the Vietnam Chamber of Commerce and Industry (VCCI), told Vneconomy that if the deal does not comply with the regulations, Grab will have to pay a fine and separate its operations from those acquired from Uber to operate independently from each other.

However, Duc also stated that such a separation would be difficult. In reality, there has yet to be precedent for the separation of operations after a merger.

He added that after the merger, despite its monopoly, Grab neither does make competition impossible nor issues high fares to customers, the Vietnamese government should consider allowing Grab to continue operations as usual.

Uber has yet to comment on the issue, but seems to be bulling forward in other markets, following its post-M&A strategy.

Notably, according to AFP, on May 22 Uber announced that it would start piloting ride-hailing services in Japan this summer.

Uber said it aimed to provide local residents and tourists with “reliable and safe transportation” on the small island of Awaji, which is home to just over 150,000 people.

Despite finding it difficult to penetrate the Japanese market where risk-averse passengers stick to high-quality traditional taxi servicea, Uber is still eager to join this market.

“I am very excited that Uber’s technology will contribute to further enhancing the transit environment of Awaji Island,” Brooks Entwistle, Uber’s chief business officer, said in the statement, adding that this will be “the first initiative of its kind in Japan.”

Source: VIR

New challenges to Vietnamese customers’ faith in Mercedes-Benz

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Whether German car manufacturer Mercedes-Benz’s car sales in Vietnam will be narrowed due to the impact from German authority’s investigation on it and its constant recalls in this year’s first months.

23 years after being launched in Vietnam, Mercedes-Benz is one of the country’s favourite car brands. Despite difficulties, such as the market putting on hold cap purchases in 2017 to wait out more reasonable prices in 2018, reducing consumption in the segment by 10 per cent, Mercedes-Benz Vietnam (MBV) recorded total sales of 6,000 vehicles, up 40 per cent against 2016.

Even after the recent recalls throughout the country, MBV seems to be going strong with sales in the first three months exceeding 1,400 units.

However, after numerous rounds of recalls in Vietnam earlier this year as well as the German authority’s investigation, it remains to be seen whether MBV’s sales growth will continue in Vietnam.

German newswire Bold stated that, Daimler, the owner of Mercedes-Benz, is being investigated for using illegal software to manipulate diesel emissions. 40,000 Vito vehicles and 80,000 C-Class vehicles had to be recalled for investigation.

Newswire Reuters stated that the investigation has been going since 2017, after which the German authorities have multiple times called on Daimler to explain its violations.

This scandal had a marked impact on Mercedes-Benz’s business. Reuters also stated that Daimler’s shares fell 2.1 per cent to EUR70.98 at the beginning of the trading session on February 19.

Phapluatplus.vn stated that in MBV announced eight rounds of recalls this year. The latest recall was in early May, when MBV announced recalling 7,000 vehicles between May 14 to December 31, 2022 to handle electric system flaws.

While Mercedes-Benz has been going strong despite its recent difficulties, none of the previous issues had direct relevance to Vietnamese customers’ faith in the brand. However, the newest recalls all over the country as well as the investigation in Germany are new challenges and it remains to be seen how MBV will weather the storm.

Source: VIR

Vietnamese developer raises fresh capital for affordable housing

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HO CHI MINH CITY — Vinhomes listed on Vietnam’s main stock exchange Thursday and immediately jumped to second place in value, reflecting the prospects for the affordable housing market in one of Southeast Asia’s fastest-growing economies.

With strong investor appetite, Vinhomes’ market capitalization hit 296 trillion dong ($13 billion) on the Ho Chi Minh City Stock Exchange, making it the second-most valuable listed Vietnamese company after its own parent, Vingroup, at 324 trillion dong. Vietnam Dairy Products (Vinamilk) follows at 239 trillion dong.

More than 2.68 billion Vinhomes shares were listed on the bourse Thursday, offered at 92,100 dong apiece. During the opening session, 10,800 shares changed hands at 110,500 dong, 20% higher than the offering price.

The successful listing is supported by growing demand for housing as urbanization accelerates in Vietnam.

Vingroup is the biggest shareholder in Vinhomes, with a 69.66% stake as of April 20, followed by Singapore sovereign wealth fund GIC with 5.74%. In April, Vingroup raised $1.3 billion from GIC for property investment.

Two foreign investors held more than a 7% stake at Vinhomes before the listing, leaving room for additional foreign ownership under a 49% cap.

Vinhomes offers both high-end and affordable homes. Its Vinhomes brand is geared for high- and middle-income buyers, while the new Vincity line targets lower earners. Unit sales under Vincity are scheduled to start later this year, providing 200,000 to 300,000 units to the market by 2020. Prices start at 700 million dong per unit.

Listing on the stock market will improve the company’s ability to raise funds for new projects, said Vinhomes CEO Nguyen Dieu Linh. Besides 10 projects under construction, Vinhomes will need capital to fund 26 new projects by 2021, including eight Vincity projects.

Affordable housing is the most promising segment for Vinhomes as the demand is increasing while the market currently lacks major providers, Le Anh Tuan, head of research at Vietnam-focused Dragon Capital, told the Nikkei Asian Review at the listing ceremony. Dragon Capital was one of four institutional investors in Vinhomes before the listing.

An estimated 80% of potential Vietnamese homebuyers are searching for affordable units.

In 2016, Vingroup announced it would enter the affordable housing segment after the government warned the housing industry it would tax owners of second homes in order to tackle an oversupply of high-end homes in the market.

Hanoi-based Vinhomes was founded in 2008 and reorganized by parent Vingroup in 2018. Vingroup has diversified into seven core business segments — real estate, retail, tourism, education, health care, agriculture and automobiles — becoming one of the biggest private conglomerates in Vietnam.

Vinhomes reported 15.2 trillion dong in revenue last year. This figure is expected to increase 61% to 24.6 trillion dong this year and jump 226% to 80.3 trillion dong in 2019. Net profit for 2018 is forecast at more than 5 trillion dong and expected to quadruple to 20 trillion dong next year.

Source: Nikkei Asian

​Google provides free 10,000-hour programming training to Vietnamese kids

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Google said Tuesday that it will finance a project to offer 10,000 hours of gratis lessons in programming to young students in Ho Chi Minh City and several areas of Vietnam’s Mekong Delta region, as a way to benefit their thinking and enjoyment of computing.

Google Asia Pacific Pte. Ltd., a subsidiary of Google, is supporting the programming education for over 1,200 children and 30 teachers in state-run primary schools in Ho Chi Minh City, Vinh Long and Tien Giang Provinces, in a plan that is slated to last between May and August.

Kids are expected to learn and play with Scratch, a visual programming language in which users can easily create interesting products by arranging given blocks that contain comprehensible codes.

Google’s collaborator in the project, the Mekong Community Development Center, will sent computers to the schools, many of which lie in remote or suburban areas.

The educational effort, named ‘Programming your future with Google,’ tries to kindle the kids’ interest in computer science, give them basic programming skills and sharpen their critical, logical and creative thinking as well as the competence to solve problems.

They will also have the chance to improve their skills in group work and idea communication while acquiring some qualities needed in information technology settings.

Ha Lam Tu Quynh, director of communications and public relations at Google Asia Pacific, said the company focuses on plans of raising public awareness and enhancing the personal ability in information technology in Vietnam, in order to help the country successfully develop in the direction of Industry 4.0.

“We’re in the belief that children are the most wonderful creators in the future.”

By Thai Xuan

Source: Tuoi Tre News

High housing prices: unaffordable for Y generation

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The Y-generation, or those aged 20-30, are important clients as they account for 35 percent of the country’s total population. However, only a modest proportion of the clients own housing.

This is also a burning problem in other countries. In Australia, the number of people owning houses at the ages of 25-34 fell from 58 percent in 1986 to 45 percent.

In Vietnam, the census conducted in 2014 showed that 90.8 percent of Vietnamese own housing.

However, according to Duong Duc Hien from Savills Hanoi, the majority of the 90.8 percent inherited properties or received financial support from parents. Without the support, the number of people owning houses at the age of below 35 would be a challenge.

Analysts noted that there is a growing tendency of young Vietnamese to have separate homes even when they are not married.

Many in the Y-generation have to delay their plans to get married or have children.

The real estate market has recovered strongly since 2014, helping ease the thirst for housing. However, problems have arisen: realtors have focused on developing high-end products which are affordable to only well-off families.

The new policy on allowing foreigners to own houses for 50 years has stimulated the real estate market as the presence of foreign buyers has increased demand.

Hien pointed out there is a big gap between young people’s income and the house prices in large cities. A mid-end apartment in Hanoi is priced at VND32-45 million per square meter, which is nearly equal to that in developed markets, while the Vietnamese income is much lower.

To buy houses, young people will have to borrow money. However, if they do this now, when the lending interest rates are sky high, the interest will be a burden.

Some developers have realized the demand from young people and have begun developing apartments affordable for young people. Vingroup, for example, which previously focused on high-end products, is planning to launch Vincity apartments, priced at VND700 million for each.

In addition, Nam Long has joined forces with Japanese investors to develop apartments in the suburbs.

While Gen X are the people born in 1970-1985, Gen Y were born in 1980-2000. This group now receives special attention because it is the key generation in the global force, accounting for 32 percent of the world’s population and 35 percent of Vietnamese.

By Thanh Lich

Source: VietNamNet

Ho Chi Minh City to cut water supply for District 6, District 8 this weekend

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Water access in two Ho Chi Minh City districts will be cut this weekend from Saturday evening to Sunday morning to serve the construction of a flood drain, municipal water authorities announced on Wednesday.

Authorities will use the shutoff period to begin the relocation process for the water pipeline system at the Binh Tien – Minh Phung intersection in District 6, affecting 11 wards in the district and five more in District 8.

In District 6, wards 1, 2, 3, 5, 6, 7, 8, 9, 11,12 and 13 will be affected by the cutoff from the night of June 2 to the morning of June 3, according to the Saigon Water Supply Corporation (Sawaco).

In District 8, wards 5, 6, 13, 14 and 15 will be affected.

According to Sawaco, after the water supply is reinstated pressure may be weak and water may be murky for a short time due to a hydraulic fluctuation.

Sawaco also said it plans to deploy water trucks to the affected areas to alleviate any issues brought about by the lack water.

Customers are advised to contact Cho Lon Water Supply Co. via hotline numbers 38556169 or 38552354 for support if any issues should arise after the water supply is reinstated.

By Son Luong

Source: Tuoi Tre News

Nearly all banks make a profit in first quarter

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Most banks reported satisfactory profits for the first quarter of 2018, but their asset exploitation and capital use efficiency varied.

Banks’ Q1 finance reports showed that they made fat profits in the quarter. Some banks reported profits increasing by two or three times in comparison with the same period last year.

Vietcombank, for example, following the record profit of VND11 trillion in 2017, has reported pre-tax profit of VND4.359 trillion in Q1 2018, a sharp increase of 59.3 percent over the same period last year.

VietinBank, the other member of the ‘big four’, reported profit of VND3 trillion in Q1, up by 19 percent.

Many joint stock banks also reported profits of trillions of dong. VP Bank, for example, made a profit of VND2.618 trillion, up by 36 percent, Techcombank VND2.568 trillion, up by 94 percent, and MB Bank VND1.918 trillion, up by 72.5 percent.

If considering the growth rate, Eximbank and VIB are leading commercial banks.

By the end of Q1, Eximbank had obtained pre-tax profit of VND560 billion, while VIB Bank had VND518 billion, or 3.3 times higher than the same period last year.

However, ‘largest’ doesn’t always mean ‘most effective’.

If considering total assets, BIDV is the largest bank with VND1,200 trillion, followed by VietinBank with VND1,100 trillion and Vietcombank VND1,000 trillion. However, Vietcombank’s profit is the largest in the banking system.

Among private banks, the banks with the biggest total assets include Sacombank (VND381 trillion), MB Bank (VND316 trillion) and ACB VND300 trillion).

Analysts noted that four state-owned banks are the biggest, considering their total assets, but this group of banks doesn’t have the highest capital exploitation efficiency.

BIDV’s ROA (return on assets) was 0.16 percent in Q1 only, which means that the bank created 0.16 dong of profit from every 100 dong of its assets.

The ratios were higher for Vietcombank and VietinBank with the ROAs of 0.34 percent and 0.22 percent, respectively. However, the ratios of the two big banks were still lower MBBank (0.49 percent), TP Bank (0.42 percent), ACB (0.39 percent) and VIB (0.32 percent).

Sacombank had the lowest ROA among the group of 13 banks surveyed by Bizlive, at 0.11 percent.

The low ROA shows the results of an ineffective investment and lending policy, or high operation cost of banks. Meanwhile, the high ROA reflects the reasonable use of assets and effective business strategies.

Regarding ROE (return on equity), TP Bank is leading the surveyed banks. Its’ ROE was 7.35 percent in the first three months of the year.

As banks earn fat profits, bank officers’ income have increased sharply. A Bizlive report showed that average income is VND8-40 million a month.

By Xuan Mai @ VietNamNet

Man walking around world enjoys Việt Nam

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While pushing his caddie around the streets of Việt Nam for three months, Nicolas Queune took the time to observe its landscapes and its people.

Queune stands out in the crowd because he always wears a red T-shirt and a straw hat like his favourite comic character named Luffy, from the Japanese popular manga comic, One Piece. He started his journey on foot around the world in 2013.

An avid reader of the popular Japanese manga, which tells about the adventures of the aspiring king of the pirates Luffy, Nicolas decided to reproduce the journey of his hero to give meaning to his life.

Although the manga takes place in an imaginary world, the author is inspired by real places.

He started his trip five years ago in Asia. He first flew from France to Japan, and from there he walked around New Zealand, Australia, Malaysia, Thailand, Cambodia, and Laos.

His adventures will then take him from South East Asia to Europe, then probably to Central America.

He arrived in Việt Nam in March and has been travelling around the country on foot until now. He is currently in the centre of the country.

Falling in love with Việt Nam

Upon arriving in Việt Nam, he began waking from Điện Biên Phủ to Lào Cai, from Hà Nội to Quảng Ninh to see Ha Long Bay, and he’s now in Nha Trang.

“In Việt Nam, life is not expensive. I can sleep in a guest house for just a few euros,” he says.

“In some other countries where life is more expensive, I mostly sleep in a tent, behind a tree, in abandoned houses, or at train stations.

“I am very happy to be in Việt Nam because Vietnamese people are among the most welcoming people that I’ve met until now,” he says.

He hasn’t run into any danger on his journey so far, and he hopes this will continue to be the case.

“Here, it is very easy to meet people, they are curious; they invite me to drink tea with them on the sidewalk. I spend lot of evenings with local people. Some invite me to have dinner with them at home.

“Vietnamese cuisine is very tasty. I love it,” he says.

The language barrier has proven a challenge; most people try to speak to him in English, or use gestures. He has a smart phone where he can find translation of words and show them to local people.

His walking speed depends on the kinds of roads and on the climate.

In cities like Hà Nội, he says that he can walk 40 kilometres par day, starting at 8am and finishing at 10pm.

Nicolas Queune has travelled around many regions of Vietnam, pushing his caddie, and wears a red T-shirt and a straw hat like his favourite comic character, called Luffy, from the Japanese manga, One Piece Photo: Vuong Bach Lien – VNS

Meaning

“Many of my friends thought I was joking when I told them about this idea. They didn’t believe that I could do it,” says Queune. But the 37-year-old French man is determined to make his dream come true.

“I lived a boring life in France, I hope to do something meaningful with my life,” he says.

Before starting this journey, Nicolas Queune, living on the outskirts of Paris, kept working morose short-term contracts in IT, and went through life without a goal or project.

“I spent my days in front of the computer. I spent my spare time playing games. I’ve never had a girlfriend,” he says.

One day he found the website http://www.toutenmarchant.com which tells the story of two French men making a tour around the world by foot. He told himself that he may also do it.

And then, after ten days of preparation, he quit his job, took his savings, and started his trip.

He weighted 123 kilos at that time. After five years walking, he lost 50 kilos.

Nicolas has already travelled more than 8,000km on foot.

He tells about his trip in French on a Facebook page (Expedition One Piece Francais) and updates it regularly. He has an increasing number of fans.

Recently, his mother, 60, flew from France to join the walking tour with him in Thailand to fulfill her childhood dream.

“The trip has changed my life. I met so many interesting people,” she says.

“And by making this trip, I understand that everyone can do it! I opened to the world, me who spent all my time in front of my computer.”

He also wants to show that a major adventure like a world tour is not only for seasoned travellers or the elite: “I was obese; I had never hiked or even travelled alone. However, I did it and others can do it too.”

Source: VNS

 

Why Vietnam is shutting out some materials

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Vietnamese authorities have boosted inspections of scrap imports and plan to halt shipments to key ports next month.According to a number of sources, the changes are a result of a glut of scrap paper and plastic imports and numerous instances of customs violations. Reported by Resource Recycling.

Because of China’s restrictions, Vietnam has become a larger destination for exports of U.S. recyclables. According to the U.S. Census Bureau, U.S. exporters sent more than 173,000 short tons of recovered fiber to Vietnam from January through March, up dramatically from 57,000 short tons during the prior-year period. U.S. ports sent Vietnam nearly 79 million pounds of recovered plastics during the first quarter, up from 40 million pounds during the prior-year period.

In recent months, exporters have cited the Southeast Asian country as a major alternative market that’s increased in the past year. And the country has been a destination for Chinese scrap processors looking to invest in Southeast Asia as a way to work around China’s restrictions.

Now, Vietnamese officials are restricting imports, similar to the actions taken by the Chinese government over the past year.

Giant wave of imports

A May 21 letter from Vietnam’s Tan Cang-Cai Mep terminal to shipping companies, obtained and shared by the Institute of Scrap Recycling Industries (ISRI), describes a major increase in containers of scrap paper and plastic coming through the port.

The letter notes that a different terminal, Tan Cang-Cat Lai, which is among the largest Vietnamese shipping terminals, has amassed more than 8,000 TEUs (twenty-foot equivalent units, a measurement for container quantity) of scrap plastic and paper on-site as of May 21. Tan Cang-Cai Mep, a smaller terminal, has stockpiled 1,132 TEUs that can’t be moved to the larger terminal due to the buildup. Both terminals are operated by Saigon Newport Corporation (SNP).

The larger terminal has already stopped accepting scrap materials, and the smaller one will stop accepting all containers of scrap plastic June 25 through Oct. 15. The terminals will require more thorough documentation beginning June 15, according to the letter. This means shipments must be accompanied by valid import permits and a written guarantee of when the container will be picked up by the buyer.

“This notice comports with rumors that Vietnamese customers had no more room for imported materials and that the build-up of containers of recovered paper and plastic scrap diverted from China were causing delays at Vietnam’s main import terminal,” ISRI wrote.

ISRI added it is “confident this is more to do with port capacity constraints and not a permanent regulatory shift.”

Violations discovered

A handful of recent announcements from Vietnamese customs officials confirm growing concerns over scrap imports since the beginning of 2018. They describe activities similar to those targeted by Chinese customs officials over the past year.

In April, the General Department of Vietnam Customs (GDVC) described numerous recent violations involving scrap paper and plastic coming into the country. The violations included material not meeting Vietnamese quality standards, mislabeling, the use of false import permits and a lack of permits altogether. In response, customs officials have ramped up inspections. According to GDVC, in some areas agents began inspecting 100 percent of scrap paper and plastic imports.

Most recently, GDVC said it had implemented a “plan on risk management for scrap imports,” which includes continuing the heightened inspections and taking stock of all the containers of recyclables sitting at ports.

GDVC alluded to the Chinese material ban, and said it presented “the potential danger for Vietnam and other Southeast Asian countries to become scrap destinations.”

Restricted import permits

An announcement from SNP in late April shows the overcapacity problem has been growing since the beginning of the year.

On April 23, SNP wrote to its customers that the volume of scrap paper and plastic had “soared” since China banned most of the material. Because of that, Vietnam’s Ministry of Natural Resources and Environment and the Ministry of Finance “restricted the import permits for plastic/paper scrap into Vietnam,” according to the SNP letter.

“Consequentially, consignees are not able to complete customs clearance for many shipments of plastic/paper scrap which have arrived at Vietnam seaports,” SNP wrote.

At that time, 1,000 TEU of material Cai Mep had sent to the larger Cat Lai port were stuck without anywhere to go.

“If there is no punctual action, this volume will escalate and cause high yard occupancy at ports” and other storage areas, SNP wrote, “affecting routine operation of both ports and shipping lines.”

By Colin Staub

Vietnam court upholds key decision in landmark ‘Super Swindler’ fraud case

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A court has upheld a key judgement in Vietnam’s biggest-ever fraud case, spotlighting the country’s ability to tackle financial crime at a time when foreign banks are heeding government calls to invest.

The Ho Chi Minh City People’s High Court rejected an appeal yesterday against a judgment that the central perpetrator of a 4.9trn dong ($215mn) theft – dubbed “super swindler” by local media – is responsible for returning some of the stolen money, rather than the individual’s employer at the time, state-controlled VietinBank. Reuters reported

The ruling comes as financial firms flock to Vietnam, hoping to capitalise on a period of privatisation and capital-raising deals in the fast-growing emerging Southeast Asian economy.

The chief executive of one victim, depositor Saigonbank Berjaya Securities JSC (SBBS) – a unit of Malaysia’s Berjaya Corp Bhd – said she had no hope of recouping her bank’s $10mn from the perpetrator, who was sentenced to life imprisonment.
“I am heartbroken and lost for words,” Josephine Yei said.

VietinBank, formally Vietnam Joint Stock Commercial Bank for Industry and Trade, did not respond to emailed requests for comment. A VietinBank lawyer said the bank had instructed its lawyers not to comment to media.

Majority owner State Bank of Vietnam – the country’s central bank – could not provide immediate comment.

In many economies, banks can be liable for embezzlement of depositors’ funds if negligence of the bank is established. In Vietnam, interpretation of liability law becomes more open when the perpetrator goes beyond their responsibility, a lawyer said.
“Vietnam doesn’t have case laws for such cases so it depends completely on the mind of the jury,” said Nguyen Thanh Ha, chairman of Hanoi-based SBLAW, ahead of the ruling.

Court documents showed indebted Huynh Thi Huyen Nhu and 22 accomplices were convicted in 2014 for “misappropriation of funds” from 15 victims in 2010 and 2011.

Nhu used her title as a senior VietinBank manager to encourage customers to deposit funds which she and accomplices appropriated using fake official documents, according to the indictment.

The court yesterday said the victims signed contracts which promised interest rates higher than those permitted by the State Bank of Vietnam and were therefore illegal.

SBBS said it was unaware of any illegality, and argued that contracts with forged signatures should be considered void.
Both domestic and foreign investors have been watching the case closely to “see how the legal framework protecting depositors in Vietnam is being implemented”, SBBS lawyer Nguyen Thi Minh Huyen told Reuters after the ruling.

VietinBank is Vietnam’s second-largest listed bank by market value. It is 64.46% state-owned, with its next-biggest shareholder Japan’s MUFG Bank, a unit of Mitsubishi UFJ Financial Group, with 19.7%.

Earlier this month, credit-ratings firm Fitch upgraded its view of VietinBank to B+ from BB-.

Reporting by James PearsonEditing by Christopher Cushing

Market Focus: Shares Pushing Higher 7.23% Over the Last Month: Vietnam Manufacturing and Export Processing Ltd (0422.HK)

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After a recent market scan, we can see that Vietnam Manufacturing and Export Processing Ltd (0422.HK) shares have moved 7.23% higher over the past month. Tracking performance over the last 5 sessions, shares have moved 2.30%. Over the last half-year, shares have changed 1.14%. Over the last full year, shares have moved -7.29% – Reported by Newberry Journal.

Investors may be taking a closer look stock market trends as we move into the second half of the year. Investors often have to grapple with the timing of selling a stock. After all the research is done and the portfolio is rounded out, the time will eventually come when decisions need to be made about whether to hold a winner or sell to lock up some profits. Often times, investors will hold on to a certain stock for much too long letting profits erode. Thinking that a hot stock will keep going higher and higher, may lead to lost profits further down the road. On the flip side, investors may become emotionally attached to a stock and not be able to part ways when the time has come. Avoiding the trap of waiting for a stock to bounce back and just break even can lead to the undoing of the portfolio. The belief that a particular stock will definitely come back to the buying level may leave investors out in the cold. Being able to keep the emotions in check and stay focused on the pertinent data, may help the stock portfolio thrive into the future.

Currently, the 14-day ADX for Vietnam Manufacturing and Export Processing Ltd (0422.HK) is sitting at 19.26. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Technical traders may be looking at recent indicator levels on shares of Vietnam Manufacturing and Export Processing Ltd (0422.HK). After a recent check, the 50-day Moving Average is 0.42, the 200-day Moving Average is 0.44, and the 7-day is noted at 0.44. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

Vietnam Manufacturing and Export Processing Ltd (0422.HK)’s Williams Percent Range or 14 day Williams %R is sitting at 0.00. 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.

Technical traders often make a point of keeping an eye on the ATR or Average True Range of a particular equity. Currently, Vietnam Manufacturing and Export Processing Ltd (0422.HK) has a 14-day ATR of 0.01. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.

Traders may be leaning on technical stock analysis to help with investing decisions. Vietnam Manufacturing and Export Processing Ltd (0422.HK) currently has a 14-day Commodity Channel Index (CCI) of 125.64. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

Siam Cement takes over stalled $5.4bn Vietnam petrochemical project

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Thai conglomerate now sees 2023 start to production at Long Son – Nikkei Asian Reported

Thai industrial conglomerate Siam Cement Group has taken full ownership of a long-delayed petrochemical project in Vietnam after buying out its local partner in the $5.4 billion endeavor to build the Southeast Asian country’s first such complex.

SCG bought 29% of the shares in Long Son petrochemical complex from Vietnam Oil and Gas Group, or PetroVietnam, for 2.9 billion baht ($90.2 million).

Roongrote Rangsiyopash, SCG’s chief executive, said the acquisition was made through a wholly-owned subsidiary, Vina SCG Chemicals, as is expected to be completed by the end of June.

“The commencement of engineering, procurement and construction activities for this project will be in the third quarter of 2018, with the targeted commercial operation by the first half of 2023,” Roongrote said in a statement, placing the project about four years behind its original schedule.

As sole owner, SCG should have more flexibility taking the investment forward. “SCG will be able to capitalize on the rising trend of global petrochemical business that would bring in growth in the long run,” said an analyst at Asia Plus Securities.

The delay caused by shareholding issues has pushed estimated construction costs to $5.4 billion from the $4.5 billion budgeted four years ago when the project had three investors: SCG with 46%; Qatar Petroleum subsidiary QPI Vietnam with 25%; and PetroVietnam with 29%.

The Qatari partner withdrew from the southern Vietnamese project in 2015 after global oil prices plummeted, and SCG bought its stake last year.

SCG’s 2017 net profit fell 2% on the year to 55.04 billion baht ($1.73 billion), on a 6% jump in sales to 450 billion baht, the group reported on Wednesday. It cited intensifying competition in cement and building materials.

Revenue from cement and building materials accounted for around 39% of the group’s total, while petrochemicals made up 46%. Sales in Southeast Asian countries, excluding Thailand, increased by 9% year on year to 106 billion baht, representing 24% of the group’s total.

SCG shares closed at 452 baht on Wednesday, down 2.59% from Monday. Tuesday was a public holiday in Thailand.

By APORNRATH PHOONPHONGPHIPHAT

Government issues warning on router-hacking virus

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HÀ NỘI — The Ministry of Information and Telecommunications’ Authority of Information Security on Tuesday warned that routers and storages in Việt Nam have been exposed to the VPNFilter virus.

The virus has affected over 500,000 routers and storages in many countries, including Việt Nam, it said.

The most vulnerable devices are Internet-connected routers and storages produced by popular brands like Linksys, Mikro Tik, Netgear, and TP-Link.

A research by the Cisco Talos group run by Cisco showed VNPFilter as a multi-phrase cyber-espionage virus capable of stealing information from websites and spying on the industrial command domain, such as those of power networks or industrial infrastructure.

An effected device will be restarted and reset, during which the /var/run/vnpfilterw link will be created.

The Authority said users should reset their devices to default mode to erase the malware while updating the firmware as soon as possible if they think their devices have been infected by the virus.

The Authority has warned about lopes and weaknesses in the information security sector over the past few years. Last week, international organisations announced they have discovered at least 327 security holes that could spark attacks affecting Vietnamese users. — VNS

Source: VNS

First double-decker bus for sightseeing in Hanoi

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The open-top double-decker bus began taking tourists on a city tour on May 30.

The first double-decker bus was put into service on May 30 with hop-on and hop-off at 13 stops, running through 25 streets and taking tourists to 30 attractions in the capital city of Hanoi.

According to Hanoi Transport Service Company (Transerco) the company has launched the Hop on – Hop off bus service after thorough preparation.
The double-decker bus runs through 25 streets with hop-on and hop-off at 13 stops and ferry tourists to 30 attractions in Hanoi. The bus arrives every 30 minutes from 9am to 6:10pm every day.
An information counter is located near tourist attractions.
The bus follows the Euro 4 emission standards, creating favourable conditions for the elderly, children and the people with disabilities.
The bus is connected to 4G, Wifi, USB port, refrigerator, camera to help visitors take photos during their journey.
The introduction of the City Tour double-decker bus aims to promote urban tourism making tourism spearhead industry. Voice over service is provided at the selected tourist attractions.

Source: VOV

Halong Bay: A journey into the dragon’s jaws

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Halong Bay, Vietnam: In 1994, UNESCO declared Halong Bay a World Heritage Site. Since then, researchers have discovered 14 plant species and no less than 60 species of animals that are endemic to Halong.

(CNN) — Captain Tho Pham first went out to sea when he was 14 years old. Now, he’s been a junk skipper in Halong Bay for more than a decade.
He knows his way through the tangle of islands that cover Halong as well as anyone alive.
“Long ago, our forefathers were fighting to resist an invasion — just one of the many we’ve fought off over the centuries,” says Captain Tho as he guides his 55-meter junk boat between rearing limestone outcrops.
“Legend has it that the gods sent a family of giant dragons to help us. The dragons spat great blocks of jade, the size of mountains, which formed this barricade of islands and blocked the invasion.”
According to legend, Halong Bay is made up of blocks of jade spat out by a family of giant dragons.
Mark Eveleigh
Wherever you travel in Vietnam, complex legends and myths are commonplace, so it doesn’t surprise me to hear there’s more to this tale.
“Once the invasion was repelled, the dragon family decided to settle in the bay,” the captain continues. “Halong means ‘where the dragon descends to the sea’, and this is where the mother dragon came to live.
“Bai Tu Long is where her children settled and the fearsome currents around Bạch Long Vĩ island are caused by mischievous baby dragons thrashing their tails — bạch means ‘white’ from the color of the foam, long means ‘dragon’ and vĩ means ‘tail’.”

Across the backs of dragons

According to UNESCO, which inscribed Halong on the World Heritage List in 1994, there are about 1,600 limestone islands and islets here.
It’s probable that Captain Tho has come about as close as anyone ever has to visiting them all.
Standing beside him on the bridge of the Heritage Jasmine, it occurs to me that we could indeed be sailing amongst the massively scaled backs of an entire horde of dragons.
Ahead of us the limestone karsts rise above the swirling currents, jungle dripping from their peaks like tangled seaweed.
Hai Au Airlines operates Vietnam’s first commercial seaplane service out of Hanoi.
Mark Eveleigh
My first view of Halong, the morning before, was from high above — through the window of a banking Hai Au Aviation seaplane.
That first sight of this spectacular landscape is hard to describe.
Even Ho Chi Minh — rarely at a loss for words — struggled to depict it: “It’s a wonder that one cannot impart to others,” he said humbly.
The islands stretch farther than the eye can see, and the jade-colored peaks do indeed form what seems to be an impenetrable barrier.
Made fresh daily, bia hoi is a popular type of Vietnamese draft beer. The cost? Less than 25 cents a glass.
The Cessna Grand Caravan slipped smoothly down through the ocean haze and, as she skipped to a halt on the rippled surface of the Gulf of Tonkin, I looked down to see surprised fish flapping on the plane’s pontoons.
It was a poignant sign of how rich in sea life these tropical waters must be and how they could have provided rich pickings for fishing communities for thousands of years.

Luxury junk tours: Cruising Halong in style

I boarded the Heritage Jasmine in the early afternoon and after toasting our arrival in Ha Long with Bia Hà Nội (Hanoi Beer) and a meal of delicious phở bo (beef noodles infused with delicate herbs) I slept well in my Heritage Line superior cabin.
Junk boats are the most popular way to tour Halong Bay.
Mark Eveleigh
Far from being just a floating vantage point, the best of Halong’s junks bring important income to local people and are adept at steering clear of crowded waters.
They provide luxury access to some of Vietnam’s most unexpected adventures and can be more active that you might imagine a typical cruise to be.
Over the course of the next few days we would kayak through flooded caverns into hidden lagoons, cycle to isolated rice-farming villages and search for rare Cat Ba langurs — some of the world’s most endangered monkeys, found nowhere else in the world and with only an estimated 70 remaining.
On our last morning we woke to find the Jasmine already anchored near the floating village of Cua Van. While the bay once supported many fishing villages, its protected status means that only around 200 people live in these floating communities today.
About 200 Buddhist fishermen live and work in their floating communities in the heart of Halong Bay.
Mark Eveleigh
The fishermen of Cua Van supplement their income by paddling tourists among the floating pontoon houses in their iconic flat-ended sampan boats.
As the seasons change and the fish drift, the number of houses also fluctuates — ebbing and flowing like flotsam on the tide. Settlement in these islands was limited up until the 19th century by flotillas of rampaging Chinese and Vietnamese pirates.
With peace has come other pressures in the form of a new invasion: The traditional inhabitants are now outnumbered by the 300 or so junks (some carrying more than 60 guests) that are said to operate in the bay these days.
Even before they formed their little floating communities the fishermen lived in the great cave complex, which honeycombs the center of Cai Tai islet.
Archaeologists believe that Tien Ong was occupied by settlers of the Hoabinhian culture who lived here 10,000 years ago. The modern inhabitants of Halong still take shelter in the caves from time to time.
“Over in the corner there’s a little ‘honeymoon alcove’,” says our guide. “Many of the locals claim that it was where they were conceived. There’s still a tradition that this is where the fishermen go when they want… Well, how can I say this? When they want to make new Halong Bay fishermen.”
Asia experts Backyard travel offer a four-day tour taking in Hanoi and a Halong Bay Junk cruise from US$447 per person
By Mark Eveleigh, CNN
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