Close quarters: Vietnam’s downtown dwellers cling to tiny plots

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Pham Quoc Cong walks two kilometres to use the bathroom because his 2.2 meters-squared house isn’t big enough to have one.

But, he says, it’s a price worth paying to be able to live on a prized plot in downtown Ho Chi Minh City where he can readily find work.

He lives with six relatives in a closet-sized space bursting with clothing, toys, a fridge, a bunk bed, a rice cooker, papers, groceries, toilet paper and other household items.

That leaves little room for sleeping so he spends most nights outdoors on a cardboard-lined lounge chair, which can be tricky in bad weather.

“It’s really hard during the rainy season to find a dry place. If I can’t, I just sleep standing up the whole night,” said the 49-year-old manual labourer who has lived in the one-room home since 1975.

The ‘micro-house’ dwellings are dotted throughout Vietnam’s bustling southern hub, occupied by families clinging to tiny plots of land in a city developing at breakneck pace.

Tucked away in winding alleys, nestled under new condo developments or sandwiched between street food stalls and shops, they are easily missed by the unattentive passerby.

But Cong says his home in the vibrant District 3 neighbourhood could sell for as much as $22,000 thanks to rising land prices.

Even so, like many others living in micro-houses, he says he wouldn’t swap his prime location for a few extra metres of space.

“We’re used to this area. If we move elsewhere we can’t do business,” said Cong, whose sisters and niece make a living as vendors in the city centre.

Photo: AFP

Rather die than move’

Many of the mini-homes sprung up as larger housing plots that were whittled down by new, wider roads and other developments in the city.

Some may have started out on rice paddies during the period of French rule and ended up as squatter land, said Mel Schenck, an American who is writing a book about modernist architecture in Ho Chi Minh City.

There is no data on how many micro-houses exist today, and Schenck says they may eventually disappear from the rapidly transforming city.

“There’s constant change going on, and I think in the long term that’s a good thing, so if some of these disappear then that’s what happens,” he told AFP, while acknowledging their “picturesque value”.

Land disputes are routine in the city, with downtown dwellers accusing city officials of underpaying for plots that are then sold on to developers for hefty sums.

That worries Nguyen Van Truong, who lives with five relatives in his 6.7-square-metre plot underneath a luxury highrise condo.

The 62-year-old supports his family doing odd jobs in the area but doesn’t earn enough to buy a larger house in a more affordable part of town. He lives in fear that the government could force him out.

“I don’t think we’d get that much compensation because the house is too small. We don’t know where to go,” he said, hanging his clothes outside the small space packed with belongings.

“If given the choice… to move elsewhere or remain in this tiny house, I’ll choose to stay. I’d rather die than be forced to leave this spot.”

Source: Asiaone

Banks raise fees, e-wallet to be preferred

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While numerous banks raise service fees on online and mobile banking as well as ATM withdrawals, more and more people choose e-wallet apps for comfort and freedom.

Nguyen Dong (Nha Be district, Ho Chi Minh City) said he uses e-wallet MoMo to pay online for utilities, internet, and his mobile phone bills every month. He even uses this app to pay when going out with friends or family. Recently, when numerous banks have been adjusting service fees, he uses e-wallet more frequently.

“The e-wallet provides several integrated services, such as buying movie tickets, air tickets, taking up consumer loans, and insurance policies. We can collect points and receive discounts just by using the e-wallet. Some e-wallets even give bonus e-money to users who invite friends,” said Vu.

Pham Minh (Hoan Kiem district, Hanoi) uses the Vi Viet app to pay her bills online. It is very comfortable and free of charge for all transactions.

CafeF.vn quoted leaders of some banks confirming that customers are turning towards e-wallets to pay bills, shop, and among others. E-wallet also provides some extra services to compete with banks’ internet and mobile banking services. Notably, it is very easy to register new accounts via smartphones.

There are around 20 e-wallet apps on the market currently, such as Vi Viet, MoMo, Payoo, Baokim, MobiVi, Nganluong, and Wepay. Several banks also intend to develop e-wallets to match market demand.

Nguyen Ba Diep, vice chairman of MoMo, said that this year the company focuses on the $20-billion Vietnamese tourism market. Holiday-goers can directly book air tickets, train tickets, bus tickets, travel and health insurance, as well as a whole range of other services on Momo. The app has six million users and expects to get 50 million users by 2020.

Meanwhile, LienVietPostBank has just signed an agreement with two Japanese companies to develop solutions of human resources management and wage payment via the Vi Viet app. This app has 2.2 million users and over 19,000 points accepting payments nationwide.

Although e-wallets have great potential, very few apps survive for long. E-wallet companies said that they have poured hundreds thousands of dollars into their apps but saw little returns. This is not always enough to cover the initial expenses. Thus e-wallet developers suffer from losses.

Vietnam holds great potential for e-payments, including e-wallets, but users do not trust these apps enough to put much money in them. Thereby, market shares and survival are a longer-term game spinning on trust and the ability to eke out the smallest gains until the market turns more benevolent.

According to economist Can Van Luc, the development of e-wallets is an indispensable side-effect of the technology boom, and numerous financial technology companies are being established.

Source: VIR

Fuel prices raised sharply

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The retail price of biofuel E5 RON 92 increased by VND500 to VND19,940 (USD0.87) per litre on May 23 following a joint decision of the Ministry of Finance and Ministry of Industry and Trade.

According to the ministry’s adjustment, the price of RON 95-III also rose by VND600 to VND21,511 per litre, while the prices of diesel and kerosene went up by VND587 and VND523 to VND17,694 and VND16,440 per litre, respectively.

The ministries of Industry and Trade and Finance said that they reviewed fuel prices every 15 days to adjust the prices in accordance with fluctuations on the world market.

This increase is attributed to the rise in global oil and petrol prices following political instability in the Middle East and a sharp drop in petrol supply from Venezuela.

The price of RON 92, which is used to produce biofuel E5, increased from USD81,890 in the previous adjustment to USD89,780 per barrel on May 22 – the highest level in the last few years.

Source: Dtinews

Vietnam reports over 4,000 cyber attacks in Jan-May

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Internet users in Vietnam faced up to 4,035 cyber attacks in the first five months of this year, according to the Vietnam Computer Emergency Response Team (VNCERT) under the Ministry of Information and Communications.

Among the figure, up to 2,661 were hacked; 766 were malware attacks and 608 were phishing attacks.

VNCERT said that in 2017, Vietnamese internet users suffered from 13,382 cyber attacks with malware and hacking attacks accounting for the majority.

Earlier this year, up to 41,000 computers in Vietnam were affected by the video_3622.zip virus through Facebook Messenger. When internet users click on the link they will be directed to a site where the virus would be downloaded onto their computer.

The biggest danger of this new virus is that hackers could use the victim’s friend list to continue spreading.

Another case more than 139,000 computers in Vietnam were attacked by the W32.AdCoinMiner virus.

At Security World 2018, Hoang Phuoc Thuan, Head of the Department of Network Security at the Ministry of Public Security, said that every year, authorities found dozens of state secrets had been leaked on the internet. He, however, added that the real figure may be much higher than the reported figure as many cases have not yet been detected.

VNCERT also reported that over VND12.3 trillion (USD547 million) in damage was caused by computer viruses in Vietnam occurred last year, an increase from VND10.4 trillion in 2016.

Source: Dtinews

Over 40 students hospitalized after drinking milk tea in Vietnam

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Students from Tran Phu Elementary School in the central Vietnamese province of Quang Ngai are treated at the hospital on May 21, 2018. Photo: Tuoi Tre

More than 40 students of an elementary school in the central Vietnamese province of Quang Ngai have been hospitalized after drinking milk tea during a party marking the end of their school year.

The students, who are from class 3B at Tran Phu Elementary School in the provincial capital of Quang Ngai, were admitted to the local pediatrics hospital at around 10:00 am on Monday.

The kids had drunk milk tea in their classroom before having stomachache and feeling nauseous, said Vu Thi Binh, vice-principal of the school.

They were having a party in the classroom to celebrate the end of the school year, Bình continued, adding that the drinks were bought from a shop named ‘Uyên Chip Chip’ ơn Ngô Quyền Street.

The milk tea was bought from a local shop named ‘Uyen Chip Chip.’ Photo: Tuoi Tre

Following prompt treatment at the infirmary, the conditions of the students have stabilized.

Doctors stated that their symptoms included stomach pain, nausea, and fever, indicating food poisoning.

After being notified of the situation, local authorities have collected the drink samples and carried out an inspection of the store.

According to Nguyen Van Oai, head of the Quang Ngai Department of Food Hygiene and Safety, the shop has been suspended from operation.

Local authorities work with leaders of the school. Photo: Tuoi Tre

The owner did present legitimate paperwork for the business, but officers discovered several violations of regulations on food safety at the venue, Oai elaborated.

A further decision will be made after test results are in, which takes approximately five days, the official continued.

In late October 2017, nearly 500 students from two elementary schools in the Mekong Delta province of Hau Giang were admitted to the hospital for food poisoning after drinking chocolate milk, which was provided free-of-charge as part of a campaign to encourage sport and physical exercise.

Examinations later showed that their drinks contained Staphylococcus Aureus, also known as golden staph, a type of bacteria that can cause serious food poisoning.

By Duy Khang, Source: Tuoi Tre News

Found: A Rare Tiny Deer in Vietnam

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Solid proof the muntjac is still around. LEIBNIZ IZW, WWF VIETNAM, USAID SONG THANH NATURE RERSERVE

It’s called a muntjac, and the last time it appeared was nearly two decades ago.

IN 1994, SCIENTISTS RESEARCHING IN Vietnam first documented the elusive large-antlered muntjac in the semi-evergreen Vu Quang Nature Reserve, in the province of Ha Tinh. The creature’s shoulder height measures roughly 26 inches, it weighs roughly 66 to 110 pounds, and lives around the Annamite Mountains that border Laos.

For years, the tiny deer has been drastically absent because of illegal wire-snare hunting. So, when the researchers from Leibniz Institute for Zoo and Wildlife Research and WWF-Vietnam caught a photo of a male and female muntjac, there was much to celebrate.

To honor the occasion, they plan to enhance camera-trapping efforts. The last record of the muntjacs wandering the Annamite region was in the 2000, which worried many scientists and conservationists. The fear was that the critically endangered mammal was close to extinction, but the rediscovery is small win for those who want to witness the deer’s stride in Vu Quang Nature Reserve.

“Finding these rare and beautiful species gives new hope for Vietnam’s precious biodiversity treasures,” said researcher Nguyen Van Thanh in a statement.

By CHRISTINA AYELE DJOSSA, Source: Atlas Obscura

Vietnam Dealbook: Alp Asia is ACB’s major shareholder; SeAbank buys VNPT arm

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Alp Asia Finance Vietnam Limited has become ACB’s major shareholder while Hanoi-headquartered Southeast Asia Commercial Joint Stock Bank (SeAbank) has officially acquired VNPT’s finance arm.

Alp Asia Finance Vietnam becomes ACB’s major shareholder

According to a report  by DealStreetAsia, the two funds Whistler Investments Limited and Sather Gate Investments Limited, wholly owned by Alp Asia Finance Vietnam Limited, have become major shareholders in Vietnam’s Asia Commercial Bank (ACB).

A disclosure to Hanoi Stock Exchange showed that Alp Asia Finance Vietnam Limited through the two funds is holding a total of 102.2 million shares of ACB, accounting for 9.95 per cent stake. Each fund held more than 51.1 million shares of ACB, equivalent to 4.97 per cent stake.

The transaction value was approximately VND5 trillion ($220 million). The number of shares was said to be transferred from Standard Chartered APR Limited and Standard Chartered Bank (Hong Kong) Limited as the bank sold its entire stake in ACB in January, bringing a 12-year partnership to an end.

According to an announcement by the Vietnam Depository Securities Centre, the StanChart subsidiaries transferred their combined 154.1 million shares in the Vietnamese bank.

SeAbank officially owns VNPT’s finance arm Hanoi-headquartered

Southeast Asia Commercial Joint Stock Bank (SeAbank) has officially acquired Post and Telecommunication Finance Company Limited (PTF), Vietnam Posts and Telecommunications Group (VNPT)’s finance arm as approved by the State Bank.

SeAbank earlier participated in an auction, which had a starting price of VND500 billion ($22 million), and surpassed another bank to become the owner of PTF. At the end of December 2017, VNPT Group officially announced the auction of PTF as part of its plan to divest non-core businesses and in the run-up to its equitization by 2019.

Founded in 1998, PTF is Vietnam’s first finance company, wholly owned by VNPT, with a charter capital of VND500 billion ($22 million).

By Quynh Nguyen

Vietnam Is a Frontier Market for Good Reason

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Anyone visiting the vibrant and bustling metropolis that is Ho Chi Minh City would hesitate to call Vietnam a frontier market.

There are growing calls for the Southeast Asian economy to be included in the MSCI Emerging Markets Index. After all, even Argentina, which is seeking another IMF rescue, is on the watch list for an upgrade. And Vietnam has better liquidity than the Philippines, which is already there.

Hopes that Vietnam may soon make the classification helped its stock market to become Asia’s best-performing last year.

But MSCI may have good reason for keeping Vietnam in frontier market territory.

For one, its share market isn’t ready for active fund managers, who struggle to beat the benchmark. Thu Nguyen, a managing director at VinaCapital Group Ltd., is seeking to raise $30 million for a fund that would invest in small-cap firms. She’s telling her investors to look past the index.

Weighty Matters

Five stocks constitute more than 40 percent of the benchmark Ho Chi Minh Index

 

Large moves by a few companies can swing the broader market big-time. Five companies currently contribute to more than 40 percent of the benchmark Ho Chi Minh Stock Index.

Last week, the nation’s exchange welcomed its newest blue chip — Vinhomes JSC, a luxury residential developer spun off from Vingroup JSC. Vinhomes raised $1.4 billion in the country’s biggest IPO.

When Vingroup’s management were wooing investors, the company’s shares were eerily calm, even as other stocks joined the global sell-off. Vinhomes accounts for about 65 percent of Vingroup’s revenue. If its shares were performing poorly, one could hardly blame fund managers for not wanting to get into Vinhomes.

Catch Up Time

Vingroup didn’t join the broader market sell-off in the days leading up to Vinhomes’ IPO. Now, it’s tumbling

After Vinhomes’ debut, Vingroup sold off, causing the broader index to dip. Now, Vietnam’s image looks tarnished because large IPOs are supposed to fire up, not sink, the market.

Saigon Beer Alcohol Beverage Corp., which counts Thai Beverage Plc as a controlling shareholder after a deal last year, is another example.

When news of the stake sale first surfaced in August, Saigon Beer’s shares began to climb, touching a record high in November. The buying frenzy propelled Saigon Beer to the No. 2 spot on the Ho Chi Minh Stock Index, with a market weight of 8.6 percent.

Control Premium

Saigon Beer rallied in the lead up to the Thai Beverage deal

Value investors were faced with a conundrum. Clearly Saigon Beer was overvalued — the stock had priced in Thai Beverage’s control premium — but selling could result in lagging the benchmark in a bull year.

Then there are stocks like Hanoi-based FLC Faros Construction JSC. At its peak, the construction and civil engineering services provider was the sixth-largest firm on the index, with a 4.7 percent weight. That was before its shares plunged 55 percent since January, wiping it off the radar. When FLC Faros, which isn’t followed by equity analysts, was rallying for no apparent reason, were fund managers supposed to pile in, or play it safe?

As a significant manufacturing hub, Vietnam has one of the best growth stories in Asia. But with a few companies able to distort the market, it’s no country for old-school investors.

By Shuli Ren

Source: Bloomberg

Bloomberg: Vietnam’s Stock Market Crash Is a Buying Opportunity

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The nation’s benchmark equity index has erased nearly all of its 2018 gains

It only took about six weeks for Vietnam’s benchmark VN Index to go from being Asia’s best performing stock market in 2018 — advancing as much as 22 percent by early April — to being nearly flat for the year. Bloomberg reported

The gauge slid as much as 1.5 percent intraday Wednesday before finding support near its 200-day moving average and closing up 0.3 percent on the day. The correction was “necessary” and provides a buying opportunity, according to Quynh Cao, the Ho Chi Minh City-based head of institutional sales at Saigon Securities Inc., the country’s largest brokerage.

By Abhishek Vishnoi and Nguyen Kieu Giang

Vietnam train accident kills 2

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A night train has collided with a truck in Vietnam, killing 2 people and injuring 9 others.

The collision occurred at a crossing in the northern province of Thanh Hoa early on Thursday morning. NHK reported

Vietnam Railway Corporation says 7 train cars derailed, and some of them rolled over. Two train drivers died.

The crossing is on a section of a 1,700-kilometer route known as the North-South unification line that connects Hanoi with Ho Chi Minh City in the south.

There are reports that the manually-operated barrier at the crossing had not descended at the time of the accident. An investigation is underway to determine the cause of the collision.

Vietnam’s state-run media says the train was carrying more than 400 people, including many foreign tourists.

The train was on its way to the resort town of Da Nang from the capital Hanoi.

Stops on the North-South unification line include popular tourist spots such as the ancient capital of Hue, which is designated as a UNESCO World Heritage site.

South Korea’s SK, Japan’s Idemitsu in line to buy stake in Vietnam’s PVOIL

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PetroVietnam Oil Corp OIL.HNO is in talks to sell a 44.72 percent stake to strategic investors later this year, after its $184 million initial public offering in January, its parent Vietnam Oil and Gas Group, or PetroVietnam, said on Wednesday.

South Korea’s SK Holdings (034730.KS), Japan’s Idemitsu Kosan (5019.T) and two Vietnamese companies have registered as potential buyers, with demand for the offered shares exceeding supply by nearly three times, PetroVietnam said in a statement.

The two Vietnamese companies are Ho Chi Minh City Development Joint Stock Bank HDB.HM and Sovico Holdings, chaired by Nguyen Thi Phuong Thao, the billionaire founder and chairwoman of Vietjet Aviation VJC.HM. Thao is also the vice chairwoman at HCMC Development Bank.

The stake sale, to be conducted via a share auction, is to take place by end-July. If that date is missed, PetroVietnam Oil is looking to move the sale to November, pending approval from the Prime Minister Nguyen Xuan Phuc, the company, also known as PVOIL, said in a separate statement.

The Vietnamese government raised $184 million through the sale of a 20 percent stake in PVOIL in an initial public offering in January.

PVOIL said the strategic investors will have to hold their stake for at least 10 years.

Idemitsu Kosan already holds a 35.1 percent stake at Nghi Son Refinery and Petrochemical LLC, which owns a 200,000-barrel-per-day refinery in Thanh Hoa province.

PVOIL reported a pretax profit of 238 billion dong ($10.5 million) on total revenue of 16.5 trillion dong in the first four months of this year, PetroVietnam said, without giving comparative figures.

By Khanh Vu

Source: Reuters

Vietnam shouldn’t build three special economic zones at once, test one first instead

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‘If mistakes are made, it would be difficult to undo them.’

Vietnam should build-test one special economic zone (SEZ) first instead of developing all three at once, a National Assembly conference heard on Wednesday.

“If we develop all three zones at once and mistakes are made, it would be difficult to undo them,” said Truong Trong Nghia, a delegate from Ho Chi Minh City.

He also had doubts over how the money spent to develop the SEZs would be used, and how it would affect people’s lives.

“According to the development plan, the total cost to develop the SEZs would be VND1.5 trillion ($66 billion). If that money is spent on providing incentives for land and sea lease, wouldn’t many families have to relocate to make room for new leases? And this would be in the interest of investors,” Nghia said.

“We delegates expect that these SEZs live up to the amount of money spent on them,” he concluded.

In a previous session on Tuesday, Nghia also said that investing in these SEZs is a risky gamble for Vietnam and requires careful management and resource distribution, while noting that many countries have failed in developing their own zones.

“An SEZ’s success depends on proper administration and management. But money, politics and interest groups can skew the original objectives of the SEZ and cause it to fail,” he said.

But it’s tax incentives that have been at the center of SEZ criticism, with economist saying too generous incentives may breed unhealthy competition. What’s more important to attract investors, they said, are institutional support that would warrant an investment friendly business environment.

In response, the National Assembly is now considering a proposal to reduce tax incentives for casinos and other gaming ventures in SEZs.

Vietnam is planning to establish three SEZs, which are Van Don in northern Quang Ninh Province, Bac Van Phong in central Khanh Hoa Province, and Phu Quoc in the southern Kien Giang Province.

The Ministry of Planning and Investment estimated that the SEZs will be able to bring a total of $9.5 billion each year to the state coffers from tax payments and land related fees. In 2030, the total number of jobs created in the three areas is estimated to be over 760,000, with income per capita up to $13,000, 5.4 times the current level.

By Vo Hai, Hoai Thu

Source: VnExpress

Dipterocarpus Retusus in Vietnam’s Saigon street

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Dipterocarpus Retusus is a large tree and perhaps the best known species in the genus Dipterocarpus. It is known as Chò Nâu in Vietnamese, chhë tiël pré:ng in Khmer, as 东京龙脑香 dong jing long nao xiang in Chinese. It is native to Vietnam, Philippines, Laos, Cambodia and India. The tree, some 20-30m tall, is found in Cambodia in dense forests of the plains, common on hillsides and along rivers and in forests between 800m and 1500m altitude. Source: Wikipedia

Basic salary for public employees to increase as of July 1

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The basic salary applied to civil servants, public employees and the armed forces will rise from VND1.3 million to VND1.39 million per month as of July 1, 2018, according to Decree No.72/2018/NĐ-CP recently issued by the Government.

Under the decree, the new basic salary will increase by VND90,000 per month, a rise of 6.923% compared to the current level, starting from July 1 this year.

The new basic salary, which will be used for calculating payrolls and allowances, will apply to public officials and employees working at State agencies from commune-level to the central level; civil servants working at public socio-political organisations; and the armed forces.

The retirement pension will also be adjusted based on the new basic salary from July this year.

The Government has also requested that the ministries, and ministerial-level and Governmental agencies concerned reduce their spending, streamline their organisational apparatus and seek more sources of revenue to pay for the regular increase in the basic salary for public employees.

Provinces and centrally-run cities must arrange financial sources for the salary increase using the local budget, the regulated ten-percent saving from regular spending, and other sources in accordance with the regulations.

Source: NDO

Pollution behind mass fish deaths incident

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Mass fish deaths on the La Ngà River. — VNA/VNS Photo Sỹ Tuyên

ĐỒNG NAI — Southern Đồng Nai Province’s agriculture department said the unsual high level of NH4 (Amoni) and NO2 (Nitrite) may be the reason behind Monday’s mass fish deaths on the La Ngà River based on a test done on water sample collected at the site.

The test showed a NH4 level 5.6-11 times higher than farm fish tolerance level while NO2 was found to be at 10-20 times higher. In addition, dissolved oxygen level on surface water was at 2.6-3.2mg/l, significantly lower than the recommended level of 4.0mg/l.

The department said there was a heavy rainfall, which lasted well over seven hours prior to the incident. It was possible that a large volume of water heading from upstream carried enough pollution, which in combination with NH4 and NO2 was deadly to the fish.

“Exactly how it happened will be revealed after more tests are done on water and fish samples,” said Huỳnh Thành Vinh, the provincial agriculture department’s director.

Vinh also said if natural causes were the cause of mass fish deaths, around 80 fish farming households would eligible for support from the Government. At the estimated 1,500 tonnes of fish loss, they can be compensated up to US$400.000.

The authority hasn’t ruled out man-made causes such as toxic water discharged by factories upstream. The case is still under investigation. — VNS

Source: VNS
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