Outdated infrastructure blamed for rail accidents

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Outdated infrastructure, limited funds and operator negligence have been identified as the main causes serious accidents on the rail.

A train crashed into a truck in Thanh Hoa Province on May 24 on the main north-south line, killing two people and injuring nine. Three days later, another collision occurred on the same railway in Nghe An Province. Luckily no-one was hurt. This was the fifth railway accident in just four day which saw three deaths and 10 injuries.

A report from the Vietnam Railways Corporation said that from September 16 2017 to April 15 2018, there were 199 rail accidents, killing 91 people and injuring 122 others.

According to Vu Anh Minh, chairman of Vietnam Railways Corporation, there are many reasons for the high number of rail accidents, including infrastructure that was built about a century ago, staff negligence, and the huge number of over 4,200 illegal and unofficial level crossings.

He went on to say that the corporation reviewed accidents to improve the sector with new technology and remove several level crossings. However, the funding for upgrading and maintenance is limited. It is wholly dependent on the state budget which can only meet 30% of necessary expenditure.

“80% to 90% of the trains are over 20 years old,” he said. “However, it is also rare that so many serious rail accidents occur so close together as seen last week.”

Vu Quang Khoi, director of the Vietnam Railway Authority, said after every accident, Vietnam Railways Corporation were made to review operating processes to avoid similar cases. But the operators still neglect their work sometimes and co-operation with local authorities is still lacking. Vietnam Railways Corporation takes all responsibility for the operation of the sector, the Vietnam Railway Authority only inspects and issues regulations to ensure the crew and passenger safety, he said.

Before the 2017 Railway Law was issued, there were no regulations on the decommissioning of trains. However, the law will only take effect from July 1. Trains and equipment will be inspected before being used and old trains will be removed for safety reasons, Khoi said. Several investors have requested information on potential involvement in railways but none have shown an interest.

In 2010, the Japan International Co-operation Agency provided more than VND9.20trn (USD404.34m) to help Vietnam repair the North-South railway and upgrade level crossings. Nguyen Huu Duc from the JICA said the railway sector had to depend on the state budget and didn’t have enough money to upgrade the safety system at level crossings.

“Some gatekeepers are too dependent on the automatic system. If the equipment is broken, they often won’t notice or repair it in time,” Duc said.

Moreover, many people are willing to risk running on tracks even when gates are down.

Source: DTinews

Vietnam’s Techcombank readies for market debut after raising $922 million

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HANOI, May 23 (Reuters) – Vietnamese lender Techcombank will list its shares on the Ho Chi Minh Stock Exchange next month, the bank said on Wednesday, making it the country’s seventh biggest firm by market value.

Techcombank raised $922 million last month in one of the country’s biggest initial public offerings. Its cornerstone investors are Singapore sovereign wealth fund GIC, Fidelity Management and Research, and local fund Dragon Capital.

The Hanoi-based lender said it would list on June 4 at a reference price of 128,000 dong ($5.62), valuing the bank at $6.5 billion and making it Vietnam’s second-biggest listed bank after state-controlled Vietcombank.

The shares will be allowed to move 20 percent higher or lower than the reference price on the first day of listing, according to exchange trading rules.

Techcombank provides a broad range of banking products and services to more than 5.4 million customers in Vietnam through a network of 315 branches.

The bank’s Chief Executive Officer Nguyen Le Quoc Anh said 2018 was a year of robust activity for Vietnam’s stock market as the economy showed strong growth momentum.

“We believe this is a suitable time to list Techcombank after two years of preparation,” he said in a statement.

Techcombank aimed to increase retail lending to 50-55 percent of total loans, up from 40 percent, in the coming years, while reducing the proportion of corporate loans, said Nguyen Xuan Minh, chairman of Techcombank Securities and head of Techcombank’s investment banking division.

The bank aimed to increase its registered capital by nearly three times this year to better compete with regional rivals.

“As the ASEAN Economic Community forms, our competitors are not only local banks but also banks from Thailand, Malaysia, Singapore. That’s our goal,” Quoc Anh told reporters on Wednesday, referring to the group of Southeast Asian nations.

Foreign investors own 22.5 percent of Techcombank. Vietnam limits foreign ownership in local banks to 30 percent.

Source: Retail New Asia

Russian man detained for trying to hack ATM in Vietnam

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He was carrying devices for stealing car information from previous users at the machine, police said.
Police in the central resort town Nha Trang in Khanh Hoa Province have detained a Russian man for trying to break into an ATM in the town’s backpacker area.

Leksii Vackvasaki, 35, was allegedly trying to pry open the control panel of an ATM on Nguyen Thien Thuat Street on Thursday morning when a local discovered his act and reported it to the police.

Police said the man was carrying screwdrivers, a roll of black electrical tape and devices to access and read card information. Vackvasaki claimed he used the tape to block the ATM’s security camera and was trying to steal card information of the ATM’s previous users, according to Tuoi Tre newspaper.

Police are still investigating the case, and would propose charges of “deliberate destruction of property” and “theft” against the foreigner.

Despite calls from IT experts to raise security around payment systems, ATM networks in Vietnam remain a usual theft target. In March, police in Da Nang arrested two Chinese nationals who were attempting to install devices at local ATMs to steal users’ card information. Another gang including members from Malaysia, Singapore, the U.S. and Vietnam were arrested by police in the southern city of Can Tho the same month for similar crimes. Last December, a court in Ho Chi Minh City sentenced a Peruvian man to 18 years in prison as investigation found his gang had cracked open many ATMs across the country in 2014 and 2015 and stolen a total of VND6 billion ($264,000).

Source:Vnexpress

Vietnamese man who snatched gold chain from Russian diplomat arrested

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Arrest happens just days after camera footage of the robbery was released.

VNExpress reported, Ho Chi Minh City police have arrested a male suspect believed to be the man caught on camera snatching a gold chain from a Russian diplomat at a city sidewalk last February.

Vo Ngoc Phi, 27, was arrested on Monday at his home in Can Giuoc District in the Mekong Delta province of Long An.

Vo Ngoc Phi, 27, is held in a police station for further investigation. Photo courtesy of HCMC Police

Phi is suspected to have snatched a gold chain from the neck of Dmitrii Alekseev, an officer from the Russian Consulate General’s office, on February 17.

The Russian diplomat told the police that he was robbed while walking with a friend on the sidewalk of Ba Huyen Thanh Quan Street in District 3 on the way to his office. The robbery was captured by the consulate’s CCTV camera.

The arrest happened just several days after the police released CCTV camera footage provided by the consulate showing a man with a face mask driving a motorbike with a fake license plate snatching the chain from the Russian diplomat.

Police said the robbery is being investigated further.

Ho Chi Minh City, Vietnam’s largest metropolis, is one of the most visited destinations in the country, with 3.2 million foreigners arriving here in the first five months of 2018.

Travelers are attracted by the city’s mix of modern comfort and wartime heritage, but its charm is being undermined by street crimes, traffic chaos and pollution.

Vietnam girl’s murder in Japan stirs cry for justice

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Eyes across Japan and Vietnam will be watching next month when a Japanese man stands trial for killing a 9-year-old Vietnamese girl who lived with her family in a city east of Tokyo.

The third-grader, Le Thi Nhat Linh, “loved Japan,” her mother told Nikkei. She added that she hoped the courts would “protect children and uphold justice” by handing down a harsh sentence. She and her husband have received public support from both countries in pushing to bring the accused to trial and have him face the death penalty.

On March 24, 2017, Linh disappeared on her way to school in Matsudo, Chiba Prefecture. Her body was found two days later near a drainage ditch in the nearby town of Abiko.

The next month, prefectural police arrested Yasumasa Shibuya, who headed a local school parents’ association and had helped stand watch over children’s routes to school, on charges of abandoning Linh’s body. Shibuya, then 46, was further indicted in district court for murder, sexual abuse and kidnapping. His trial will begin June 4, with closing arguments and sentencing recommendations set for the 18th of that month.

Linh’s mother, Nguyen Thi Nguyen, spoke with Nikkei from the northern Vietnamese port city of Haiphong, where she and her daughter used to live. She will leave for Japan again June 10 and is set to appear in court June 12.

Linh “always talked about what good people the Japanese are,” said Nguyen. But Shibuya “hasn’t owned up to his crime and won’t say a word” about it, she went on with audible anger.

Nguyen hopes for “a severe punishment, so children will never become victims again,” she said. She also mentioned the killing of a 7-year-old girl this month in Japan’s Niigata Prefecture.

Linh’s death sent shock waves through the community. News of a petition from Nyugen and her husband Le Anh Hao spread rapidly in Vietnam through Facebook. Musical artists and prominent athletes have called for people to sign. As of April 9, the petition had 1.05 million Vietnamese signatures and 69,000 Japanese.

As many as 260,000 Vietnamese live in Japan.

Linh sometimes spoke of wanting to bring Japanese people to Vietnam to teach them about everyday life and culture there. Most mornings, she would study the Chinese kanji characters used in written Japanese with her father, and Nguyen would teach her Vietnamese at night.

It was Linh’s dream “to be a bridge between Japan and Vietnam,” Nguyen said through tears. “We as a family want to do something to honor that.” The “Nhat” in Linh’s name means “Japan” in Vietnamese.

As a young child in Haiphong, Linh was “friendly and cheerful,” Nguyen recalled, and “would talk to people just passing by the house.”

Linh “wouldn’t even kill an ant, and she loved feeding wild birds,” her mother said. A small ornamental bird that Linh had treasured sat beside a portrait of her on a Buddhist memorial altar.

Hao decided to move the family to Japan when Linh was 3. They first settled in a publicly run apartment complex near Tokyo, in the Kanagawa Prefecture city of Kawasaki. They moved twice more, bringing Linh to tears at leaving her friends, and ended up buying a house in Matsudo.

Le Thi Nhat Linh’s memorial altar, pictured last June, held her portrait and a bunch of grapes from a plant she watered daily.

Linh was delighted to be settled at one school. She watered a grape vine in the garden every morning, asking Nguyen when it would bear fruit.

They had lived in the new house for about a year when Linh disappeared. Afterward, Hao would sometimes jolt awake at night shouting his daughter’s name. Her younger brother, then 3, at first would ask why his sister had not come back from school, but eventually transitioned to silently placing offerings of rice at Linh’s memorial altar.

Three months after her disappearance, Linh’s beloved vine bore its first fruit. Nguyen placed some of the grapes on the altar before her daughter’s portrait.

By ATSUSHI TOMIYAMA, Nikkei staff writer

National Action Month for Children 2018 launched

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PHÚ THỌ — In the context of the fourth industrial revolution and expanding digital world, children have evermore opportunities to exploit and access endless sources of information and knowledge, however, they also face the risk of harm from unsafe information.
The statement was released yesterday at the launch ceremony for the Action Month for Children 2018, which was organised by the Ministry of Labour, Invalids and Social Affairs, in co-ordination with the Phú Thọ People’s Committee in the northern province of Phú Thọ.

Children also face the threat of exploitation and abuse, especially sexual abuse. Thus, the annual action month this year was launched across the country under the theme “For a safe and healthy life for children”.

The action month aims to better implement children’s rights, especially the right to participate in affairs relating to children, and the right of protection from abuse online.

Speaking at the launch ceremony, Vice President Đặng Thị Ngọc Thịnh emphasised that it had been 20 years since Việt Nam joined the world wide web and is now entering the fourth industrial revolution.

Information technology has changed our lives for the better, however, the internet also poses risks to children if the community does not take preventive measures against abuse, she said.

“At the end of the school year, I congratulate all of you for your great efforts and achievements in your studies. I hope you will continue to gain knowledge and skills to protect yourselves, and together with your parents and teachers set up safe lives,” said Thịnh.

“I strongly believe that all of you will become intelligent citizens of the fourth industrial revolution,” she said.

Vice President Thịnh asked all ministries, sectors, organisations, localities and individuals to work together to create a safe living environment so that children could develop with the best capacity.

Activities during the action month will focus on improving awareness and responsibility of organisations, enterprises, schools and families in upholding the good aspects while limiting the bad aspects of the digital world to children’s development.

Youssouf Abdel-Jelil, Representative of the United Nations Children’s Fund (UNICEF) Việt Nam, proposed to improve human resources for the work of protecting children.

Targets to protect children should be inserted into the socio-economic development of provinces and cities.

One more important issue was, he said, to have an effective system to receive reports on violence against children, and ensure that all cases of children being abused were dealt with promptly.

Nguyễn Thị Hà, Deputy Minister of Labour, Invalids and Social Affairs, said that during the month, children across the country would receive education on skills to access the internet safely.

Skills to prevent abuse and sexual abuse will be delivered to parents and teachers.

Additionally, families, schools and local authorities will collaborate to set up safe summer vacations for children, to manage, supervise and give guidance to children to play safely, and prevent accidents, especially drowning.

During the month, the National Fund for Vietnamese Children will give gifts to nearly 5,000 poor children across the country with a total fund of more than VNĐ14 billion (US$615,000).

Conferences and forums about setting up a national system to protect children on the internet will be organised all over the country.

The annual Action Month for Children has been organised based on the Law on Children issued in 2016. The action month is launched each June to urge the community to take care of and educate and protect children. — VNS

Source: Vietnamnew

The door for Vietnamese products to US market narrows

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According to the General Department of Customs (GDC), the US remained Vietnam’s biggest export market in the first four months of the year which consumed $13.8 billion worth of Vietnam’s exports, an increase of 11.4 percent over the same period last year.

Vietnam-US bilateral trade turnover, which was $1.4 billion only in 2001, has been increasing steadily since the Bilateral Trade Agreement (BTA) took effect, reaching $50.8 billion last year.

The big challenge for Vietnam is the strict regulations that export products have to observe. In addition to the federal law, each US state has different rules and regulations of its own.

Meanwhile, Deputy Minister of Industry and Trade Do Thang Hai warned that the US tends to tighten imports by setting up new requirements on product quality, food hygiene and product traceability.

“The US’s big changes in its trade policies will have a big impact on the export of many Vietnam’s key items,” Hai said.

“It will be not an easy task to maintain current export turnover or boost exports to the US,” he warned.

The businesspeople present at the Vietnam-US Trade Forum held in HCMC several days ago confirmed that more Vietnam’s export products now bear anti-dumping duties or have to satisfy higher technical requirements. Any export product, from shrimp, fish to steel nails, and any business could be subject to anti-dumping or anti-subsidy lawsuits.

Meanwhile, the majority of Vietnam’s businesses are small and medium sized which have little experience with lawsuits. They find it difficult to satisfy the requirements set by the US. Prolonged lawsuits and high lawyer fees also discourage them.

Seafood companies have more experience than others in protecting themselves in lawsuits raised by the US.

Truong Dinh Hoe, secretary general of VASEP (Vietnam Association of Seafood Exporters and Producers) said since 2003-2004, when Vietnam began exporting seafood products to the US with export turnover of $1-2 billion a year, seafood companies have been facing a lot of anti-dumping lawsuits against catfish exports.

The US policy to protect local production had tightened recently, which means the high possibility of Vietnamese exporters becoming defendants in lawsuits.

Currently, Vietnam exports 60,000 tons of shrimp to the US, or just 10 percent of total shrimp products the US imports a year. Vietnam’s capacity is twice as much as the figure.

According to MOIT, Vietnam’s major export products to the US are footwear, textile & garments, wooden furniture and electronics which have low added value.

Source: VNExpress

New rules to collect and clarify market price data

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Hanoi (VNA) – The Ministry of Finance (MoF) has drafted a circular on rules and methods of collecting information and reporting market prices of some domestic goods and services.

The move aims to facilitate the synthesis, analysis and projection of commodities prices by central and local agencies, in order to standardise information and gain a better picture of the national inflation situation.

The list of commodities and services subjected to the newly-recommended market price reporting regime includes essential commodities that can represent groups of goods and services relating to food, construction materials, medicines and medical services, transportation, education, entertainment and tourism.

The draft recommends that the Departments of Finance of centrally-run cities and provinces nationwide send monthly, quarterly and annual reports on market prices of commodities in their localities to the MoF’s Price Management Department.

Reports will include information on the evolution of the consumer price index (CPI) calculated within each locality, together with analysis on the status and the causes of the factors affecting CPI.

The reports also evaluate the efficiency of local management and administration of prices, including the price management of some important and essential goods in the locality and the promulgation of legal documents related to commodities’ market prices.

In addition, the reports will also forecast the CPI and the market price situation in the next period.

In case of abnormal fluctuations in prices, the provincial and municipal Department of Finance have to make irregular reports on price fluctuations of some essential goods and services in the locality.

The commodities included in the price report include rice, pork, beef, chicken, fish, shrimp and seasonal vegetables (for food), cement, construction steel, sand, bricks (for construction materials), car fare, bus fare, taxi fare (for transportation services), tuition fees of public kindergartens, public school fees and university fees (for education).

The Ministry of Finance is gathering public comments on this draft by posting the draft in the Ministry’s e-Portal.-VNA

Source: Vietnam Plus

Vietnam stocks market set to continue falling this week

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Vietnamese stocks are forecast to stay on a downward trend this week due to caution among investors and accelerated selling pressure from foreigners, analysts said.

According to VNS’ report, the benchmark VN Index on the HCM Stock Exchange (HOSE) dropped 2.23 per cent on Friday, or 22 points, to end at 963.90 points, totalling a weekly loss of 7.37 per cent.

The VN-Index hit its lowest level since the beginning of the year while the HNX Index on the Hà Nội Stock Exchange lost 2.21 per cent to close at 114.49 points on Friday.

The northern market index fell a total 5.6 per cent in the week.

An average of 194.1 million shares were traded in each of the five trading sessions last week, worth VND5.3 trillion (US$232.4 million).

Daily average trading figures last week decreased by 21 per cent in volume and 52 per cent in value compared to the previous week.

According to Đặng Thanh Thế, strategic director of KB Securities Co, if temporarily excluding the transactions volume of Vingroup VIC, the current largest stock by market capitalisation, foreign investors have changed from net buyers to net sellers since April.

“Obviously, this trend has not seemed to stop and completely contrasting with the situation in 2017 and the first quarter of 2018,” Thế told tinnhanhchungkhoan.vn.

“Therefore, there are grounds to conclude that selling pressure from the foreign traders on the key stocks will keep occuring next week, and thus the bearish trend of the market will continue,” he added.

In addition, market liquidity from the beginning of May has fallen sharply compared to the average figure of the period from 2014 to present, even lower when compared with the first quarter of 2018.

This week, markets will likely remain gloomy and the bearish trend will increase stronger and even spread to small- and mid-cap stocks, Thế said.

“At present, net selling pressure of foreign investors is still very strong and steady,” said Nguyễn Trung Du, senior expert at VNDirect Securities Co (VNDS).

The recovery of the market last week was still weak, with just one rebounding session. Therefore, the downward trend is inevitable most stocks and will be oversold, Du told tinnhanhchungkhoan.vn.

According to Nguyễn Ngọc Lan, senior analyst at Agribank Securities Co (Agriseco), the downtrend of the market is developing and there is no sign of a reversal. The short-term market is expected to remain negative.

Foreign investors are still accelerating selling, which seriously affects investors, leading to caution among domestic investors, Lan said.

Investors were quite vulnerable with many failing short-term bottom catches and the market’s quick fall. Investors will keep a close watch on market fluctuations, adopting a wait-and-watch approach with little capital injection.

In addition, many large-cap stocks still have too high valuations and there is still plenty of room for them to fall due to the recent strong increase, she said.

There has also been a lot of negative news related to geo-politics or large listed companies, therefore, investors are more reserved, Lan said.

Two US warships sail near East Sea

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Operation is latest attempt to counter what Washington sees as China’s efforts to limit freedom of navigation in strategic waters

Reuters in Washington reports, two US warships sailed near East Sea islands claimed by China on Sunday, two US officials told Reuters, in a move likely to anger Beijing as Donald Trump seeks its continued cooperation on North Korea.

The operation was the latest attempt to counter what Washington sees as Beijing’s efforts to limit freedom of navigation in the strategic waters.

While the operation had been planned months in advance, and similar operations have become routine, it comes at a particularly sensitive time and just days after the Pentagon uninvited China from a major US-hosted naval drill.

The US officials, speaking on condition of anonymity, said the Higgins guided-missile destroyer and the Antietam, a guided-missile cruiser, came within 12 nautical miles of the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors.

The US vessels carried out maneuvering operations near Tree, Lincoln, Triton and Woody islands in the Paracels, one of the officials said.

Trump’s cancellation of a summit with North Korean leader Kim Jong-un has put further strain on US-China ties amid a trade dispute between the world’s two largest economies.

Critics of the operations, known as a “freedom of navigation”, have said that they have little impact on Chinese behavior and are largely symbolic.

The US military has a long-standing position that its operations are carried out throughout the world, including in areas claimed by allies, and that they are separate from political considerations.

Satellite photographs taken on 12 May showed China appeared to have deployed truck-mounted surface-to-air missiles or anti-ship cruise missiles at Woody Island.

Earlier this month, China’s air force landed bombers on disputed islands and reefs in the South China Sea as part of a training exercise in the region, triggering concern from Vietnam and the Philippines.

The US military did not directly comment on Sunday’s operation, but said US forces operate in the region on a daily basis.

“We conduct routine and regular Freedom of Navigation Operations (FONOPs), as we have done in the past and will continue to do in the future,” US Pacific fleet said in a statement.

Neither China’s foreign nor defence ministries immediately responded to a request for comment. Pentagon officials have long complained that China has not been candid enough about its rapid military build-up and using East Sea islands to gather intelligence in the region.

In March, a US destroyer carried out a “freedom of navigation” operation close to Mischief Reef in the Spratly Islands.

Chinese officials have accused Washington of viewing their country in suspicious, “cold war” terms.

China’s claims in the East Sea, through which about $5tn in shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam. The US has said it would like to see more international participation in freedom-of-navigation operations in the East Sea.

Vietnam to truncate 11-digit mobile phone numbers very soon

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Vietnam plans to shorten 11-digit mobile phone numbers to 10 digits by replacing three-digit carrier prefixes with new two-digit prefixes.

For example, mobile numbers beginning with 166, 122, 199, and 188 will be replaced by those prefixed by either 80, 30, 50, 40, or 70, depending on the carriers. The NDO reports

Mobile numbers currently prefixed by two-digit carrier codes will remain unchanged.

The move, scheduled for September, is part of a wider effort to clean up the disorder in telephone numbering which got underway last year with the rollout of standardised local dialling codes for landline numbers.

The area codes for landline numbers in all provinces and cities are now in the form of 2xx.

The move is part of a wider effort to clean up the disorder in telephone numbering.

Minister of Information and Communications, Truong Minh Tuan told us that, the plan for the mobile phone number prefix change was already a year behind schedule.

He has requested that mobile operators finalise the details of their plans by June 1.

Under the law, subscribers must be notified of any such change 60 days in advance and they can use both the old and new prefixes for a transitional period of 60 days from the date the new codes take effect.

EDAG develops first EV for Vietnam

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The German development service EDAG has received an order from the VinFast company for the complete development of an electric vehicle tailored for the Vietnamese market.

According to a report by electrive.com, The startup owned by the Vietnamese VinGroup is planning to enter the Vietnamese vehicle market with two conventional vehicles and one fully electric city vehicle, before expanding abroad. The EDAG EV is currently in the primary design stage, and a preliminary design sketch has been released.

“We are proud that has chosen to appoint us as the overall engineering part-ner to work on their trendsetting electric vehicle project,” stated Cosimo De Carlo, CEO of the EDAG Group. EDAG’s website also states that their vehicle production and eMobility experience were among the reasons they were chosen as a partner.

VinFast is currently also building their first factory in the coastal city Haiphong in northern Vietnam. They plan to present the first two vehicles at the coming Paris Motor Show in Fall.

By: Chris Randall

Vietnam creates more opportunities for European investors, says PM

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The country has also been encouraging renovation ideas and giving priority to high and environmental-friendly technologies, climate change adaptation, and State-owned enterprise restructuring

Devdiscourse News Desk reports, Prime Minister Nguyen Xuan Phuc said that Vietnam is working hard to build a constructive and upright government to serve people and businesses, while focusing on completing institutions, improving governance capacity, and bringing more opportunities to all enterprises, including investors from Europe.

Speaking at the “Meet Europe 2018” conference in Hanoi, PM Phuc said Vietnam is striving to rank in ASEAN’s top group and achieve high standards in the business environment, while strictly implementing commitments in intellectual property protection.

The country has also been encouraging renovation ideas and giving priority to high and environmental-friendly technologies, climate change adaptation, and State-owned enterprise restructuring,

He further said that reform measures have been implemented in all 63 cities and provinces where European investors and businesses have been or will be running investment projects.

The Government leader said that European partners are leading foreign investors in Vietnam with a total investment of nearly USD 25 billion, and the country’s biggest provider of non-refundable aid, while two-way trade rose five times in the 2006-2017 period, exceeding 50 billion USD last year.

PM Phuc said that Vietnam and Europe, with supplementary relations, are pinning high hope on stronger and more extensive partnership. The 93-million strong market of Vietnam, with 13 percent of them being middle-class people, has seen increasing purchase power and strong startup movement.

The PM stressed that Vietnam always highly values investment and business operations of more than 2,000 European firms in Vietnam, especially in areas where Vietnam has demand and European firms have advantages such as infrastructure development, seaport, airport, airport, urban transport, energy, electricity, oil and gas, agriculture, tourism, and health.

Miriam Garcia Ferrer, Head of the Economic and Trade Section of the European Union Delegation to Vietnam, said that Vietnam is a leading ASEAN partner and one of the most important markets of the EU, stressing that the European Union-Vietnam Free Trade Agreement (EVFTA) will contribute to the enhancement of bilateral trade relations.

Foreign funds see profits vanish in market slump

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Volatility on Vietnam’s stock market in the past two months has dragged down the performance of foreign investment funds here.

Việt Nam’s benchmark VN-Index on the HCM Stock Exchange has declined about 18 per cent in the last two months, eating away most of its gains of over 19 per cent in the first quarter of 2018. VNS reports

Since its highest record of 1,204 points on April 9 this year, the VN-Index lost 20 per cent by May 25, closing this week at 963.9 points.

In line with the market downtrend, Pyn Elite Fund, the Finland fund which focused on Vietnamese shares, lost all of its gains since the beginning of this year.

The net asset value (NAV) of Pyn Elite Fund as of May 15 decreased 0.2 per cent against last month, reaching 315.82 euros. Its assets under management were 436 million euros (US$510 million). In April, it also witnessed a monthly decrease of 1.5 per cent.

Investments causing the biggest losses for the fund included mobile retailer Mobile World Group (MWG) with a loss of 11.4 million euros; HCM City Infrastructure Investment JSC (CII), 4 million euros; Tasco JSC (HUT), 3.81 million euros; and Hòa Bình Construction Group JSC (HBC), 3.2 million euros.

Meanwhile, profitable shares were PAN Group (PAN), which earned the fund 10.1 million euros since the beginning of this year, followed by TPBank and Khang Điền House Trading and Investment JSC (KDH), each gaining over six million euros.

According to Pyn Elite Fund, Vietnamese shares are trading at low prices compared to other ASEAN countries, with the average price-to-book (PB) ratio of 1.4 and the price-earnings (P/E) ratio of 17.

The story is much the same at other funds of leading investment management companies such as Dragon Capital and VinaCapital.

Vietnam Enterprise Investment Limited (VEIL), the biggest fund under the management of Dragon Capital, recorded its yearly profit of just 6.94 per cent with NAV of over $1.66 billion as of May 17.

This number was much lower than the 19 per cent growth seen on April 5, which meant the fund lost over 12 per cent of its profit since the start of the year.

VEIL’s investments focused on large-cap stocks such as Military Bank (MBB), Asia Commercial Bank (ACB), Mobile World Group, Vinamilk (VNM), PV Gas (GAS), Hòa Phát Group (HPG) and FPT Corp (FPT), which have all plunged in the recent downtrend.

ACB and MBB, two of the three stocks which made up the highest proportion of the fund’s portfolio, slumped 14.9 per cent and 17.1 per cent, respectively in the past month. MWG decreased only 4 per cent in one month but has lost 21 per cent since the beginning of the year.

Meanwhile, VinaCapital Vietnam Opportunity Fund (VOF) witnessed a monthly decrease of 5.7 per cent by the end of April, reaching more than $1.12 billion. It was a bad result compared with a three-month profit of 11.2 per cent by March-end.

According to VinaCapital, the market downtrend in the past months may stem from profit taking led by institutional investors, after the VN-Index gained 22 per cent in the first quarter and peaked at 1,204 in early April.

“Nevertheless, market fundamentals remain solid with strong earnings growth and long-term economic growth driven by resilient consumer confidence – the current market correction poses an opportunity for selective buying,” the fund wrote in a market commentary this week.

It also noted the possible impact of US-China trade war, general outflow from emerging markets by global investors due to the stronger US dollar and higher long-term rates on the Vietnamese securities market.

How foreign banks perform in Vietnam?

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The number of 100 percent foreign owned banks in Vietnam has increased by twofold in the last two years to nine.

HSBC divested from Techcombank, while Commonwealth Bank transferred the HCMC branch to VIB and BNP Paribas sold its 18.7 percent stake in OCB after one decade of being a shareholder of the bank. Standard Chartered sold all the 8.75 shares of ACB. VietnamNet reports

While many banks withdrew their capital from Vietnam banks, the number of 100 percent foreign owned banks set up in Vietnam has increased recently. In 2016-2017, four more banks were licensed in Vietnam.

There are nine wholly foreign owned banks in Vietnam, HSBC, ANZ, Standard Chartered (UK), Shinhan (South Korea), Hong Leong (Malaysia). Public Bank Berhard (Malaysia), Woori (South Korea, CIMB (Malaysia) and UOB (Singapore).

The total assets of foreign invested banks, including 100 percent foreign owned and joint venture banks, had reached VND954.165 trillion by the end of 2017, while the regulatory capital was VND141.838 trillion and chartered capital VND109.656 trillion.

While Vietnamese banks are struggling to increase their chartered capital so as to meet the requirements on the capital adequacy ratio (CAR) in accordance with Basel II, foreign banks are at ease with the CAR at 29.11 percent, which is three times higher than Vietnamese state-owned banks and 2.5 times higher than private Vietnamese banks.

While Vietnamese banks are struggling to increase their chartered capital so as to meet the requirements on the capital adequacy ratio (CAR) in accordance with Basel II, foreign banks are at ease with the CAR at 29.11 percent, which is three times higher than Vietnamese state-owned banks and 2.5 times higher than private Vietnamese banks.

The latest report by the State Bank of Vietnam showed that, as of the end of the third quarter of 2017, the ROA (return on asset) ratio of foreign-invested banks was 0.74 percent, higher than the 0.46 percent of state-owned banks and 0.5 percent of private banks.

Meanwhile, their ROE (return on equity) was 4.57 percent, lower than the 9.06 percent of state-owned banks and 7.07 percent of private banks.

There is not much information about the performance of foreign banks. HSBC, ANZ and Shinhan Bank release annual finance reports, but these are brief reports with no explanations.

HSBC has had the longest presence in Vietnam with its first office opened in Sai Gon in 1870. It got permission to set up a 100 percent foreign owned bank in 2008.

By the end of 2017, its total assets had reached VND87 trillion, up by 2.4 times after 10 years of establishment, while chartered capital has increased from VND3 trillion to VND7.528 trillion.

HSBC Vietnam reported the pre-tax profits of VND2.2 trillion in 2017, or 24 percent higher than 2016.

ANZ also made a fat profit in 2017 with VND1.335 trillion, a sharp increase of 2.3 times over 2016.

US$1=VND22,000

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