Should the street ‘knights’ continue to fight in HCMC?

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Voluntary vigilantes in Vietnam’s largest city have been operating for years without official recognition.

2 Saigon ‘knights’ stabbed to death as robbery takedown turns bad

According to a report by VNExpress, the recent death of two Saigon “knights” while taking down a group of armed thieves has raised questions on the existence of self-organized vigilante groups in the city.

Two men of the “Tan Binh District Knights” were killed and three other members injured on Sunday when they attempted to apprehend a group of thieves who were trying to steal a motorbike parked on the street. The thieves resisted with a knife and fled the scene, leaving the knights lying in their own blood.

Having existed for two decades in Ho Chi Minh City where street crimes is an issue, Saigon knights are local men who volunteer to patrol the city to apprehend robbers and thieves. The knights usually form their own groups under a leader and ride motorbikes together looking for suspicious street criminals.

As one of the first knights in the city, Nguyen Van Minh Tien founded his group over 20 years ago. Tien’s group covers all 24 districts of the city and works closely with local police. He personally selects and trains his members, who are required to strictly follow the group regulations to ensure safety.

There are currently five knight groups operating in Ho Chi Minh City. Tien said that apart from his own, the groups mostly work individually without assistance from local authorities. “The knights who have just been killed are new to the job,” Tien told VnExpress. He said the group did not work closely with local police.

A crime scene on Cach Mang Thang Tam Street in Ho Chi Minh City where two voluntary vigilantes were stabbed to death by motorbike thieves on the night of May 13, 2018. Photo by VnExpress/Son Hoa

Ho Chi Minh City police are aware of the operation of these knight groups, but until now there has not been a legal framework for them to officially operate in the city, said Lieutenant General Phan Anh Minh, Deputy Director of Ho Chi Minh City Police in a press conference on Wednesday.

“The city police have been pondering on these issues for two years, but we have not found grounds for official recognition of these groups,” Minh said. The groups need to be trained in skills and understanding of legal knowledge to know what they can and cannot do, he said.

“I want this crime prevention model to be a formal and long-term operation,” Minh said. He said the death of two knights on Sunday should lead to efforts for an official regulation and protection for the operation of the knights.

The question of whether knight groups should continue to operate has sparked up controversy on the internet.

“Thank you knights, however I don’t support your actions as it’s dangerous to have untrained and unarmed men going around to catch robbers,” said Nguyen Cuong, a VnExpress reader, adding that the job should be done by police.

But Tuan Manh, another reader, believes that these knights should continue to operate under the financial and professional support from local police.

What is your thought? Should self-organized “knight” groups continue to operate in Vietnamese cities where street crimes are popular?

 

By Dat Nguyen

Business in Vietnam: How to register a Limited Liability Company?

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Limited Liability Company, is the best corporate structure to start your own business in Vietnam. It can be registered with minimum one members and maximum fifty members.

The Limited Liability Company is juristic, and the liability of members is limited to their shares. The Limited Liability Company for foreign investor can be registered within 28 working days. Approximate every year, more than 200,000 companies registered in Vietnam. Within this article, we mentioned about a Limited Liability Company registration package, offered by  Global Business Service (GBS) – a business and legal services company in Vietnam.

Package Inclusions

  • Name Reservation
  • Investment Registration Certificate (IRC)
  • Enterprise Registration Certificate (ERC)
  • Publishing the company information in the National Business Registration Portal, securing the seal of the company and publishing the seal sample in the National Business Registration Portal
  • Company’s Tax Code

Advantages of Private Limited Company Registration

Limited Liability
Liability of Members of the private limited company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Members will not be at risk of being seized by banks, creditors, and government.

Continuity of Existence
The life of a business is not affected by the status of shareholders and even after the death of the shareholder, the private limited company continues to exist.

Scope of Expansion
The Scope of expansion is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability. The private limited offer more transparency in the company.

Brand Value
Liability of Members and Directors of the private limited company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Members/Directors will not be at risk of being seized by banks, creditors, and government.

Valuation and Customer
The valuation is an important aspect of the company and high valuation comes from loyal customers. You should work on a business model with a higher lifetime value of a customer; Entrepreneur should focus on higher assessment of the company by offering the unique value proposition to the customer’s life.

Company Registration Process

1. Pre-licensing

  • Meet Department of Planning and Investment (DPI): GBS will help you to arrange a meeting with the DPI to be advised about documents required for the appraisal of the company or you just communicate with GBS’ lawyer via: Email: info@gbs.com.vn of Whatsapp | Viber | Hotline: +84903189033 from anywhere in the world.
  • Obtain certified copies of foreign documents: GBS helps you to prepare a list of required legal documents
  • Obtain consular legalized copies of foreign documents: Required legal documents will be legalized with simple process in your country
  • Obtain certified translation of documents: Required legal documents must be translated into Vietnamese
  • Obtain authenticated copies of passports or Vietnamese ID cards
  • Sign contract on office lease

2. Company incorporation

  • Obtain Investment Registration Certificate (IRC): GBS will draft the application form for the IRC; Charter of the Company; Outline of the Feasibility Study for the establishment of the Company and submit to the DPI, verify the status of the application and collect IRC the on your behalf
  • Obtain authenticated copies
  • Obtain Enterprise Registration Certificate (ERC): GBS will draft the application form for the ERC and submit to the DPI and collect ERC the on your behalf
  • Make seal and notify seal specimen: GBS will support you to make to company seal and obtain notification of seal specimen publishing
  • Obtain certificate of tax registration

3. Post licensing

  • Open bank account
  • Publish in National Business Registration Portal

Documents Required

For corporate investors:

  • Legalized/Certificated copies of Passport from Directors and Shareholders
  • Legalized copy of latest Certificate of Incorporation/License,  Legalized copy of latest Charter/ Memorandum of Articles showing the full information of company (such as: business lines, registered address, director(s), shareholder(s) etc…
  • Latest financial report of two years or bank balance
  • Rent Agreement from Owner/Landlord

For individual investors:

  • Latest Bank Statement
  • Legalized/Certificate copies of Passport from Directors
  • Rent Agreement from Owner/Landlord

Contact

  • Email: info@gbs.com.vn
  • iMessage | SMS | Whatsapp | Viber | Call: +84903189033 or visit the GBS’s website at: https://gbs.com.vn

#MeToo, Vietnam

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Vietnam’s fledgling #MeToo movement reveals the limits of the country’s progress on gender equality.

The Facebook posts started on April 19. A young intern at Tuoi Tre, the country’s most prestigious newspaper, had been raped by her supervising editor and attempted suicide, the messages by Vietnamese journalists said. Over the next few days, women from across the country began sharing stories about harassment and abuse they had experienced while working as reporters. They tagged their posts #toasoansach (clean newsroom), #ngungimlang (stop staying silent), and #MeToo.

The international movement had come to Vietnam, forcing a public discussion of something 29-year-old Bao Uyen, a freelance journalist whose #MeToo Facebook post was shared almost 2,000 times, calls “the elephant in the room”: sexual harassment and violence is a fact of life for many women in Vietnam, as around the world. A 2014 report by the NGO ActionAid found that 87 percent of Vietnamese women and girls had experienced sexual harassment in public places.

Uyen, who worked in three newsrooms before becoming a freelancer, said she was aware of endemic sexual harassment as soon as she started working, and she thinks the problem is common across industries. The allegations at Tuoi Tre surprised her only insofar as they echoed quieter claims she had been hearing for a decade.

“The victims raise their voices but then after that everything just goes into oblivion,” she said in an interview.

Unlike South Korea and Japan, other Asian countries where #MeToo has made headlines and revealed the effects of deep-rooted patriarchies, Vietnam has one of the world’s highest female labor force participation rates, similar educational attainment for men and women, and better-than-average representation of women in its legislature. The ruling Communist Party is eager to tout these achievements; the state-run Voice of Vietnam declared last fall that the country had notched one of the world’s “fastest pace[s] in eliminating the gender gap over the past 20 years.” But Vietnam’s nascent #MeToo movement has demonstrated the persistence of sexual harassment and violence against women even as they have won greater autonomy in areas from education to politics.

Before reforms in 2015, the Vietnamese penal code criminalized only a narrow definition of rape; the updated laws expand the definition to include “other sexual contacts.” High evidentiary standards plus a lack of understanding among the heavily male police force deter most victims from taking their cases to court. While South Korea’s sexual education has been criticized as retrogressive and victim-blaming, Vietnamese students receive almost no information about sexual violence. Few workplaces have codes of conduct against sexual misconduct or systems in place to handle complaints.

Khuat Thu Hong, founder and director of the Institute for Social Development Studies and a sociologist who published one of the first studies of sexual harassment in Vietnam in 2004, sees little societal interest in addressing the issue. Sexual harassment — if it is recognized at all — is often regarded as a normal way for men to treat women.

“The phenomenon of sexual harassment, I think in Vietnam on one hand it’s considered very much a cultural thing rather than a rights issue,” Hong said. “But on the other hand, it’s politicized in the way that, if it occurs in the workplace, then there’s many actors involved. And there are a lot of efforts to silence the victims or cover up what occurred.”

After the posts charging that senior editor Dang Anh Tuan had raped the intern — a journalism student at the Ho Chi Minh City University of Social Sciences and Humanities — Tuoi Tre issued a statement denying that the intern had attempted suicide. The editorial board suspended Tuan later on April 19, according to articles published by the paper, and began an internal investigation. Tuan later resigned and the paper announced the case had been turned over to the police. Tuan denies all wrongdoing. (Reached by phone, a Tuoi Tre editor declined to comment.)

As the story made the rounds on social media, some commenters, including some women working in journalism, claimed that the intern was responsible for what had happened. She must have consented, posters said, with the goal of helping her career.

Bui Thu, a 22-year-old student who studies with the Tuoi Tre intern in Ho Chi Minh City, wasn’t surprised by the reaction. Women working in newsrooms have come to expect that their opportunities for advancement can be directly linked to their willingness to date or sleep with supervisors, she said, and pushing back against this culture is difficult. Because young reporters need promotions directly from their bosses in order to advance, women worry that speaking up might mean they can never become journalists; Thu knows women who left the field because they felt the only other option was accepting harassment. During her own newsroom internships, Thu found that women’s requests for male colleagues to stop hugging or other touching were rebuffed.

“When we react to that behavior, they will say that we are brothers and sisters in a big family, so don’t take it so seriously,” Thu said.

Confucian traditions holding that men are superior to women are still influential in Vietnam, as is the idea that women should be sexually pure. Speaking out about sexual abuse of any kind can invite shame and blame — on top of the feelings of responsibility several women interviewed said they had after being harassed. An older, married male colleague once gave Thu a ride home from an evening of drinks with the office. As they passed a hotel, he slowed down and asked if she would stay with him for the night. She said no and he drove on.

“I wished that the road would end immediately,” she said. “I was so confused — was there any behavior of mine that created a misunderstanding for him or misled him?”

Others on Facebook made light of the situation at Tuoi Tre. When Nguyen Hoang Anh, a professor of international business with a focus on gender issues at Hanoi’s Foreign Trade University, wrote a post about sexual harassment, a man commented with a joke about rape. When Hoang Anh wrote that the comment was inappropriate, he responded, “It is only a joke. Why are you so angry?”

The concept of sexual harassment itself seems a foreign import to many, and the Vietnamese term — quay roi tinh duc — is a relatively recent translation from English. According to Khuat Thu Hong, the term was never publicly discussed prior to Vietnam’s 1986 doi moi reforms, as acknowledging sexual harassment would call into question the improvements socialism had wrought in women’s lives. She also cites a Vietnamese folk saying: “Flowers are made for people to pick, girls are born for people to tease.”

Today, Hong said, many men are incredulous that behaviors they consider normal could be regarded as harassment. She once appeared on a television program to discuss the issue and found the male reporters perturbed about her claims.

“‘Does this mean we cannot even make jokes with our female colleagues, we can’t even compliment them about their beautiful dress or something?’” Hong recalls them asking.

If attitudes about sexual harassment have been slow to change, so, too, have laws. The term first entered the Vietnamese labor code in 2012, but lacks a clear definition. The Ministry of Labor, Invalids and Social Affairs (MOLISA) issued a voluntary code of conduct on workplace sexual harassment in 2015, but promotion of the code and monitoring efforts have been essentially nil, advocates say.

With the government now in the process of revising the labor code for the first time since 2012, international and local NGOs are working to build support to clarify the definition of sexual harassment and strengthen provisions and enforcement mechanisms against it.

Pham Ngoc Tien, director general of the gender equality department at MOLISA, agrees that harassment needs to be defined more clearly and legal consequences established. One issue is the lack of data. There are no comprehensive surveys or studies of workplace harassment in Vietnam. “It’s a challenge for the regulators to confirm whether these kinds of situations are ‘common’ due to the lack of official statistics and reports,” Tien said.

The lack of research, however, is not an accident, according to some advocates, who think officials and businesses would rather believe sexual harassment isn’t a problem. One Vietnamese expert on gender issues, speaking on condition of anonymity to discuss a sensitive topic, said conversations about sexual harassment policy are stifled by a general preference for maintaining appearances.

“About sexual harassment, or domestic violence, I think the government always wants people to be patient,” they said. “Patient and silent, to help society seem very peaceful. They don’t want people to speak out.”

Now that people are speaking out, what next? The stories on Facebook have not become a flood. Unlike in South Korea, where #MeToo has brought forth allegations against prominent politicians, actors, and writers, there have been few high-profile cases in Vietnam.

Le Thi Hong Giang, gender-based violence program specialist at the NGO CARE International, said she worried that naming abusers and harassers — a frequently terrifying prospect for victims in any country — could backfire in Vietnam.

“It’s not easy to have the #MeToo movement in Vietnam,” Giang said. “We cannot reveal individuals because if we reveal individual by individual but they are all very high-ranking people we cannot continue… So we need to do it differently.”

While #MeToo at first seemed confined to media circles in Vietnam, it spread to show business by the end of April: three women have now accused singer Pham Anh Khoa of sexual harassment. Yet this case has also illustrated the ramifications of speaking out in Vietnam, as Anh Khoa vociferously denied the allegations and accused the women of lying.

Then, on Saturday, he made an hour-long televised apology with the support of Nguyen Van Anh, the director of the Center for Studies and Applied Sciences in Gender, Family, Women and Adolescents (CSAGA), an NGO regarded as a leading advocate for women’s rights and anti-violence efforts in Vietnam, as well as an in-country #MeToo movement. Commenters on social media argued that CSAGA had chosen to protect a powerful man and normalize his behavior — potentially discouraging victims from coming forward in an environment where doing so is already difficult. On Tuesday, after widespread criticism of his perceived insincerity, Anh Khoa made another apology to his accusers and said he regretted involving CSAGA in his first appearance.

Uyen said she thinks it is too early to tell whether #MeToo will have major ramifications in Vietnam. Still, she is glad she told her story.

“The bosses in other newsrooms also will be careful after his incident,” she said. “They’re going to think that it’s not like the past. It’s not going to be easy to harass people and get away with it.”

Source: The Diplomat

Hanoi faces increasingly harmful air quality

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Hanoi suffered from air pollution most of the days in in the first quarter of this year, according to a report from the Hanoi-based Green Innovation and Development Centre (GreenID).

Ambient air pollution is measured by the concentration of particulate matter 2.5 (PM2.5), a fraction of the width of a human hair which is released from vehicles, industry and natural sources like dust.

The report based on the World Health Organisation standards indicated that during the January and March period, Hanoi had up to 82 days with PM2.5 concentration surpassing the WHO’s permitted level, on 91% of the period’s total days.

Hanoi suffered from this problem during 78 days over the same period of last year.

The air quality in Hanoi has tended to worsen this year as around 70% of the first quarter’s total hours were not good for health.

GreenID’s analysis showed that Hanoi ranked second among 23 cities in Southeast Asia with the highest air pollution surveyed in the first three months of 2018.

HCM City’s air quality was better than Hanoi with 68 days having the PM2.5 concentration higher than the WHO’s permitted level.

The WHO has recently announced that nearly 90% of the world’s population suffer PM2.5 concentrations which exceed the organisation’s recommended levels and up to seven million die of pollution related diseases.

Source: Dtinews

Vietnam’s quiet coffee revolution

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An indigenous community is trying to improve Vietnam’s coffee reputation by growing better-quality, organic beans. There’s more to the world’s second-biggest producer than just instant coffee, they say.

Rolan Co Lieng walks slowly through a greenhouse checking the yellow and caramel-brown coffee beans that have been drying on net beds for months. She picks up a few and smells them. Soon, they will be ready to be milled, roasted and sold in Vietnam, Japan and Germany.

Lieng comes from a tradition of small-scale coffee farmers among the indigenous K’Ho community. They’ve been living at the foot of the Lang Biang mountain in Dalat for centuries. Her parents grew coffee plants, as did her grandparents, who received Arabica coffee seeds from French travelers in the early 1920s.

Lieng fell in love with coffee at a young age.

“When I grew up, every morning before going to church at 4am, my parents drank a Nescafé,” Lieng told DW. “The aroma really attracted me, it was sweet and creamy. When they left the house, I always smelled the cups and tried to taste the coffee with my fingers.”

Rolan Co Lieng comes from generations of coffee farmers and says she wants to transform Vietnam’s coffee reputation

Today, she has turned her passion into a business. Together with other members of the K’Ho community, she founded a cooperative that aims to transform Vietnam’s coffee reputation, while safeguarding the community’s own traditions.

The oldest ethnic group in the South Central Highlands, the K’Ho are famous for their rich folklore and bamboo and buffalo horn instruments. Once nomadic, most of the 170,000 K’Ho are now settled and make a living cultivating rice and coffee, as well as selling handicrafts.

A tale of two beans

Vietnam is the second-biggest coffee producer in the world, after Brazil. Yet coffee enthusiasts often turn their noses up at the country’s offerings — or don’t even know about them.

That’s because Robusta beans account for 95 percent of the country’s coffee production. The beans are easier to grow than the Arabica variety but are considered inferior, as they have more caffeine and are more bitter to taste, said Denis Seudieu, chief economist at the International Coffee Organization, a United Nations’ agency representing coffee importers and exporters.

“The market and consumers prefer the taste and flavor of Arabica beans. Therefore, Robusta is mostly turned into solvable coffee, that is, instant coffee,” Seudieu told DW. “In terms of marketing, it’s not a good image to say your coffee is Robusta, that’s why there is not a lot of advertising around Vietnamese coffee.”

The fertile soils of the Lang Biang area are perfect for growing prized Arabica coffee beans

Until the 1990s, there was also little financial incentive for farmers to ditch easier-to-grow Robusta because Vietnam’s government bought the entire coffee harvest for a fixed price. As the private market has opened up, that’s changed.

The K’Ho had been growing a mix of Robusta and Arabica. But in an effort to wake the world up to Vietnamese coffee and bring in more revenue, they’ve switched to growing Arabica exclusively.

Made with love

The Lang Biang plateau provides fertile ground for Arabica beans, which thrive in higher altitudes. Here, K’Ho farmers tend to 30 hectares (74 acres) of coffee plants where they grow everything organically, or as they say: naturally.

“We use our natural way to process and take care of our plants. We don’t use any chemicals but our own compost which we make from waste food and we grow a lot of different plants between the coffee plants to provide shade and supply more oxygen,” said Lieng.

A community member winnows the coffee beans, using the wind to separate the broken skin from the pit

When it’s harvest time, the entire village picks the ripe, red coffee “cherries” by hand. The cherries are pulped and fermented to remove the flesh before they dry under the sun for several weeks. Then, the K’Ho comb through them to remove broken pits.

The harvest is hard work and each bean is valuable to the community. A K’Ho woman will pick up any bean that falls while they are winnowed — an old method used to separate the beans from their broken skin by throwing them in the air so the wind blows away the lighter skin.

The skin-free “green beans” are directly sold to buyers in Vietnam, Japan and Germany. But the K’Ho also roast coffee themselves. It’s an unusual practice for Vietnamese coffee farmers, who usually sell their unprocessed beans to big coffee companies that turn them into instant coffee.

Founded in 2012, the cooperative today supports more than 60 families through sales of coffee, as well as traditional handicrafts and tourism. All profits are invested in the village. Men and women who, in the past, would have had to leave their village to find a job in the city can now stay in their community, according to Lieng.

From Dalat to Berlin

More than 9,000 kilometers (5,592 miles) away, a coffee roastery in the German capital Berlin is spreading the word about K’Ho coffee.

Almost three years ago, Ngoc-Duc Nguyen opened his roastery HAN Coffee Roasters in the city. He is Vietnamese and said it didn’t feel right to sell Italian coffee when his home country is such a major producer. So, he decided to sell Vietnamese coffee. But it wasn’t easy at first.

The indigenous K’Ho community were once nomadic but are now mainly settled. They work and live together. Their children grow up in a big community

“I couldn’t find any good-quality Arabica beans in Vietnam and I was about to give up,” Nguyen told DW. “Then, in a specialized café in Ho-Chi-Minh City, somebody told me about the K’Ho coffee from Dalat.

He sampled it and says he was impressed by the quality of the produce and the community project.

“Another reason I like this coffee is that the K’Ho is a minority and part of our cultural heritage. Rolan [Co Lieng] manages to present a glimpse of minority life in Vietnam,” said Nguyen.

He believes that more and more coffee farmers in Vietnam will shift to Arabica when they realize they can earn higher incomes with it.

The K’Ho community in the south Vietnamese mountains is already a step ahead.

By Katharina Wecker, Source: DW.com

Vietnam to eye formal antitrust probe into Uber-Grab deal

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Vietnam’s trade ministry said on Wednesday it is considering launching a formal investigation into the takeover of Uber Technologies’ Southeast Asia business by rival Grab after an initial probe showed the deal would violate antitrust law.

The ministry had said last month the transaction might be blocked if Uber and Grab’s combined market share in Vietnam is over 50 percent, as per the nation’s law. Reuters reports.

“Preliminary investigation results showed the economic concentration between Grab and Uber in the Vietnam market has a combined market share of over 50 percent,” the ministry said in an statement on its website.

It said after working with the firms, associations and related government authorities, it has found the deal showed “signs of violations on economic concentration”. The ministry did not say by when it will decide whether to launch a formal probe or not.

Uber [UBER.UL] and Grab announced a deal in March under which Uber will take a 27.5 percent stake in Grab in exchange for its Southeast Asian business. The U.S. company had previously sold operations in China and Russia to local rivals.

Vietnam’s move expands scrutiny on the deal, which is already being examined for antitrust issues by Singapore, Malaysia and the Philippines.

It is unclear how the deal will be impacted if Vietnam or any of the other countries ultimately conclude the deal hurts competition.

But while rising regulatory scrutiny could complicate the takeover, lawyers and analysts said there is little the authorities can do to stop Uber from simply exiting the region.

Uber and Grab did not immediately respond to Reuters requests for comments.

 

Reporting by Mai Nguyen; Additional reporting by James Pearson; Editing by Muralikumar Anantharaman

Vietnam Digest: Warburg, Becamex IDC launch JV; Mirae-Prevoir venture goes live

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Global private equity firm Warburg Pincus and Vietnam’s real estate and infrastructure major Becamex IDC Corp (Becamex) has officially launched the joint venture while South Korea’s Mirae Asset Life Insurance has also commenced operations of its merged entity with Prevoir Vietnam Life Insurance.

Warburg Pincus, Becamex IDC launch $200m JV

Global private equity firm Warburg Pincus and Vietnam’s real estate and infrastructure major Becamex IDC Corp (Becamex) has officially launched the joint venture BW Industrial Development Joint Stock Company (BW Industrial) on May 15.

Both sides announced the JV in February. The JV will develop industrial real estate projects with over 2,000,000 sq m and an initial investment of over $200 million, becoming the largest ‘for-rent’ industrial and logistics developer in Vietnam.

BW Industrial was seeded with eight projects across five cities in each of Vietnam’s strategic industrial hubs in the North and South, including Binh Duong, Dong Nai, Hai Phong, Hai Duong and Bac Ninh.

As Vietnamese enterprises steadily improve the technical expertise, there is tremendous opportunity for firms like BW Industrial to develop and provide the much-needed industrial properties to support such initiatives, said C.K. Tong, CEO of BW Industrial.

BW Industrial’s plan is to create the logistics and industrial platform of choice for leading MNCs, 3PLs and e-commerce companies, according to Mr. Jeffrey Perlman, Managing Director and Head of Southeast Asia of Warburg Pincus.

Vietnam was one of the maiden markets when Warburg Pincus started investing in Southeast Asia in 2013. It recently agreed to invest over $370 million in Vietnam Technological and Commercial Joint Stock Bank (Techcombank), marking the largest ever PE investment in Vietnam to date.

SK’s Mirae Asset Life launches merged insurance entity in Vietnam

South Korea’s Mirae Asset Life Insurance has officially launched its merged entity with Prevoir Vietnam Life Insurance, marking its foray into rapidly growing Southeast Asian financial market.

Last year, Mirae Asset Life Insurance entered an agreement to purchase 50 per cent equity in Prevoir Vietnam Life Insurance for $48.5 million, becoming the largest shareholder in the new entity, according to a report by Pulse News.

Prevoir Vietnam is reportedly the 10th largest life insurer in the Southeast Asian country. It currently focuses on bancassurance in alliance with seven local banks.

With this, Mirae Asset Life Insurance follows many other companies under the Mirae umbrella to have a presence in Vietnamese including Mirae Asset Daewoo Co., Mirae Asset Global Investments Co., Mirae Asset Capital Co.

Early this year, Mirae Asset Global Investments inked a joint venture agreement with a subsidiary of Vietnam’s sovereign wealth fund State Capital Investment Corporation (SCIC).

By Quynh Nguyen

Source: dealstreetasia

Vietnam’s next economic driver? Private and foreign education

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Families and private firms are increasingly driving the human resources communist Vietnam needs.

Tung Pham wants to work in his country, Vietnam, but in an international firm that can pay him well. For that, his best bet isn’t his schooling in Vietnam, but the international affairs degree he has earned at George Washington University. To further bolster his chances, he now plans to return to the U.S. for a master’s degree. Vietnam shouldn’t complain.

For the better part of two decades now, Vietnam has experienced white-hot economic growth, attracting investment that once would have gone elsewhere. Riding on a low-wage and mostly low-skilled workforce, the country’s gross domestic product increased by 3,303 percent between 1990 and 2016, the fastest growth in Southeast Asia. That boom has enabled Vietnam to also emerge as a growing strategic player in the Indo-Pacific region, courted by countries like the U.S., India and Japan. But with the country’s economy moving up the value chain, its education system is failing to provide the skilled workforce needed for industry, spawning a challenge that threatens to derail Vietnam’s growth. It isn’t the communist state, but the private sector and individual families that are coming to the rescue.

University graduates in the country have the highest rates of unemployment, at 17 percent — far higher than the national unemployment rate of just over 2 percent. According to experts, that discrepancy is at least partially because of a skills gap. Students leaving higher education programs might have enough know-how for low-wage factory work, but not for the higher-paying jobs they’re chasing. Big tech employers in cities like Hanoi and Ho Chi Minh City, especially foreign companies, are making the calls. And they aren’t calling graduates. As salaries rise, so too do the prospects of more low-skilled jobs leaving the country — for instance, in manufacturing.

But Vietnam’s youth, their families and industry aren’t sitting back. Poor English skills are often a challenge in seeking well-paid jobs, so parents are sending their children to private language centers to supplement their formal education. While some productivity gap between employer needs and the skill set of the available workforce is common across the world, Vietnam also has a peculiar challenge, suggests Thi Tuyet Tran, a researcher at the Institute for Employment Research in Germany. Students are taught from a young age to be obedient and aren’t encouraged enough to think critically, she says. That has led to a dearth of the outside-the-box thinking employers rely on. To counter that challenge, graduates are attending private training centers on information technology or other skills.

Private companies are offering solutions. The largest IT service company in Vietnam, the Corporation for Financing and Promoting Technology, opened the country’s first corporate university in 2006 and now enrolls around 17,000 students. When Intel opened a factory in Vietnam, it found only 90 applicants out of 2,000 were able to score 60 percent on its employment exam. Half of those lacked the requisite English. The company started to train workers in-house, has supported education initiatives and has helped train thousands of teachers in the country. The Higher Engineering Education Alliance Program, founded by Intel, Arizona State University and the United States Agency for International Development (USAID), has worked since 2010 to increase international-standard engineering schools in Vietnam. And more and more Vietnamese — like Tung — are choosing universities overseas.

“The responsibility of enhancing knowledge and skills rests on each young person,” says Thi, of the Institute for Employment Research.

The looming crisis, and Vietnam’s efforts to sidestep it, are both closely linked to the country’s economic journey. Much of Vietnam’s increase in economic productivity so far has relied on foreign investment. The Vietnam Institute of Economics estimates investment capital increased 9 percent per year from 2011 to 2017. But while Vietnam’s average labor productivity crept up to $4,259 in 2017 — 6 percent higher than the previous year — according to the government’s General Statistics Office, it still lags behind most other countries in the region. Vietnam had only 7 percent of Singapore’s labor productivity and 87.4 percent of that in Laos.

A technician in a server room at Glass Egg Digital Media, a game developer and art production facility in Ho Chi Minh City in February 2015. Photo: Justin Mott/The New York Times/Redux

Although public spending on education is more than 6 percent of GDP, significantly higher than what most major developing nations spend, the country’s graduates form what Ninh Nguyen, an English professor at Vietnam National University, calls a pyramid of employability. The best students at the top of the pyramid will always find good-paying jobs in their field of study. But the majority will not have the right skills when they graduate, Ninh says.

One reason, she believes, is that most university curriculum is still very conventional and rigid. Hoang Minh Phuong, a Hanoi student, agrees. She says the curriculum is too focused on the theoretical — including a heavy dose of Communist Party history and ideology. Now, as a backup plan, she’s learning embroidery at a trade village.

Vietnam’s economic growth, and the new wealth that has brought into the country, has also opened up education opportunities for the country’s millennials that simply didn’t exist for their parents’ generation. Many more can afford to travel abroad for higher studies. In 2016, 130,000 went abroad to study, an increase of 15 percent from the previous year (Japan was the most popular destination, attracting more than 29 percent of students). Yet, when these students return, they bring with them benefits for Vietnam, launching a host of startups that count on local connections with a fresh, global outlook.

For the country, these efforts at negating the limitations of Vietnam’s education system are critical. Sure, the country’s economy has grown at an average of 5 percent since 1990, an impressive feat. But a 2016 World Bank report says the country needs an annual GDP per capita growth rate of 7 percent for the next 20 years if it’s going to break into upper-middle-income territory by 2035. And that seems unlikely without upping the productivity of domestic workers.

In previous decades, such a shift would have needed the Communist Party’s leadership. Now, it’s happening almost without the party.

By Justin Higginbottom

Source: OZY

HSBC made the world’s first trade finance transaction using blockchain

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HSBC claimed on Monday it had performed the world’s first commercially viable trade finance transaction using blockchain technology.

  • HSBC issued a letter of credit for U.S. food and agriculture firm Cargill using blockchain.
  • It used a platform developed by blockchain start-up R3 called Corda.
  • The exchange was performed in 24 hours, HSBC and ING said.

According to CNBC reports, the bank issued a letter of credit for U.S. food and agriculture firm Cargill. The trade finance transaction involved a bulk shipment of soybeans from Argentina to Malaysia. The letter of credit was issued from HSBC to Dutch lender ING.

Letters of credit are issued by one bank to another to guarantee that a payment will be received by a seller under a set of conditions. Traditionally this process would take a large amount of time, numerous paper records, and a lot of back and forth between the various parties involved. Blockchain technology promises to change that.

Blockchain, the technology that underpins bitcoin, enables transactions to be recorded across a vast network of computers. In the case of bitcoin, it records all of the transactions that happen on the network, creating a public ledger. Banks have taken the principles behind bitcoin’s blockchain – such as the idea of decentralized ledger – and tried to apply it to processes that they are carrying out.

For this transaction, HSBC used a platform developed by blockchain start-up R3 called Corda. R3 works with a consortium of banks to come up with blockchain solutions to a variety of problems.

“The need for paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous,” Vivek Ramachandran, head of growth and innovation at HSBC, said in a statement. “The quick turnaround could mean unlocking liquidity for businesses.”

HSBC and ING said that the exchange was performed in 24 hours, compared to the five-to-10 days it normally takes to complete such exchanges through a paper-based system.

Proponents of blockchain claim it has the potential to upend various industries. Sectors like trade finance, health care and insurance are thought of as good targets for the use the technology as they rely on long paper trails.

While there have been proof-of-concept transactions performed using blockchain technology, HSBC’s was the first that could have commercial applications, a spokesman for the company told CNBC.

Banks have been pouring money into blockchain projects as it is thought that the technology will significantly disrupt the financial services.

While lenders are not fond of the original use case of blockchain — to underpin cryptocurrency transactions — many see practical use for the technology because of its ability to handle massive amounts of data within a transparent, immutable network.

Last month, Santander teamed up with blockchain firm Ripple to create a foreign exchange service that enables same-day international money transfers.

By Ryan Browne

Vietnam’s ‘crazy’ growth keeps hotel investors guessing

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While hotel investors do not believe that the bubble will burst for Vietnam despite an imminent 43 per cent increase in the number of room keys – a whopping 35,000 additional keys, according to STR Global – they do believe its popular tourist areas will be ruined unless proper planning and development is implemented.

“Phu Quoc is a Boracay in the making,” declared Kenneth Atkinson, executive chairman, Grant Thorton Vietnam, “because there is no solid waste management at all. You’ve got 17,500 hotel rooms in three- to five-star (categories) – that’s more than Sydney has. You have an airport with a capacity for 2.5 million people a year. There are 100,000 inhabitants on the island and you’re going to need at least 25,000-30,000 people to work in hotels alone. So (there are) serious labour shortage and infrastructure problems, particularly waste management, which is becoming a serious issue on the island.”

Atkinson was on a panel at the just-concluded South-east Asia Hotel Investors’ Summit in Bangkok, where moderator David Keen, CEO of Quo Global, raised his worries about Vietnam’s “crazy” growth and found Halong Bay, which he had visited several times in the last few months “hideous, frankly”.

“If we look at Phu Quoc, Ho Tram, Danang, Hoi An, there is little planning ahead. What’s going to happen to these gorgeous destinations?” Keen asked.

In Danang, real estate developers are competing to build taller and larger skyscrapers. The local media reported that in the near future, the tallest building in the central region would be in the city. Developed by PPC An Thinh Da Nang, the complex will cover an area of 2.2ha and include four 50-57-storey towers.

In Hoi An, a UNESCO World Heritage Site just 60km2 in size, Atkinson who visited six months ago found the number of visitors and tourist buses “horrifying”.

Michael Piro, COO of Indochina Capital, who is “bullish” on Vietnam with the launch of a new select service, millennials-focused brand targeting the domestic market, Wink Hotels, admitted to his “fair share of concerns about the lack of vision in the development of these areas”.

He said: “Vietnam is very blessed from a geographical perspective. It’s a shame to see it get washed up in development, excitement and greed.

“The big risk we carry is the areas become too rundown, with not enough care to maintain what people come to see. We really need to band together to ensure that the government hear from us, and now we have the Boracay (cleanup) as an example.”

Gonzalo Meceda, vice president development of Melia Hotels International, said he and his company were also worried about a “lack of planning” in the country. “I don’t think Danang is a place where it makes sense to build a 50-60-storey buildings. Hoi An is next to it, so that’s the next one. Phu Quoc – there is still time to save it; the government should focus on that,” he said.

Quo Global’s David Keen moderating the session on Vietnam featuring (from left) Grant Thornton Vietnam’s Kenneth Atkinson, Melia Hotels International’s Gonzalo Maceda and Indochina Capital’s Michael Piro

How it got this way

The panel spotlighted key reasons how Vietnam got this way, including arrivals demographics that comprised big-volume markets China and South Korea and, ironically, a private sector that had taken on the mantle of marketing Vietnam aggressively and even got involved in making it more accessible to visitors in order to fill its rooms.

The figures speak for themselves.

It took Vietnam only eight years to get to 13 million arrivals (2017 over 2016), compared to Thailand, which took 25 years to get from six million to 15 million, Atkinson pointed out. But, more than half of the 13 million were group travel, with the top four Asian markets comprising by far China, followed by South Korea, Japan and Taiwan.

Even if the government had increased the marketing budget from US$1 million to US$5 million, as Atkinson asserted, this paled in comparison to Thailand’s US$100 million or Malaysia’s US$80 million marketing spend. This saw the private sector stepping in to be the destination marketeer, and continuing to, in order to protect its own investments.

Indochina Capital, for instance, privately underwrote the first charter flight on Dragonair from Hong Kong to Danang, where it was building furiously. “There were a lot of naysayers,” recalled Piro. “Now, it’s one of the busiest flights; you can’t get a seat on Hong Kong-Danang direct flights. That was something we had to and happy to do, which not only yielded serious results for us as asset owners but also for Danang and Vietnam.”

Melia’s Macedo also said that in Phu Quoc, the private sector had done all the marketing last year. “But the Vietnam government has to be clear what it wants for the country. We can help, but we have been making the decisions ourselves. It shouldn’t be like that,” he said.

The government hasn’t been able to keep up with the tourist arrivals uptrend. Atkinson said: “Vietnam is not good at planning ahead. We’ve been talking for 10 years now about the new international airport in Ho Chi Minh City and at last they are clearing the land, which is going to take another two years. We’re probably eight to 10 years away in getting a new airport in Ho Chi Minh City…so how do you increase the number of tourists coming into Ho Chi Minh City?”

In spite of the ‘craziness’, investors evidently are still crazy about Vietnam. At present, RevPAR is still up 12 per cent in the first quarter. They look to a domestic market size of 70-80 million people and a growing upper middle class that is upwardly mobile and travelling more; a relaxation in visas; and the highest level of government spending on infrastructure in South-east Asia (5.3 per cent of total GDP).

As well, they are heartened by the government’s intention to shift the arrivals demographics. Said Atkinson: “Vietnam wants to get the average spend up to US$1,080 by 2020. About 30 per cent of the inbound market is Chinese low-cost or zero-cost, and that does not help. But more and more, we’re seeing more travellers from high-spending countries like Europe, particularly now that Vietnam Airlines has direct flights to Paris, Frankfurt and London and is starting US flights later this year. We’ve got to change the demographics a bit; we’ve seen how (the China and Vietnam South China Sea disputes) saw Chinese tourists fell off overnight to zero.”

Piro also looks beyond the frontline data. He said: “What’s the actual reality? Of the 43 per cent increase in room keys, how much is actually going to be realised? Having over a decade of experience in Vietnam, my estimate is half probably. If you look at what the actual increase in supply is going to be, and the real increase in demand (from both domestic and international), I don’t see a big issue.”

Source:

Two men arrested in stabbing deaths of two volunteer “street knights”

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Two men were arrested on Monday by HCM City police in a stabbing incident on Sunday evening which killed two men who were part of a team of volunteer “knights” who protect local residents. Three other men were injured.

Nguyen Tan Tai, 24, from District 12, and Nguyen Hoang Chau Phu, 24, from Hoc Mon District were arrested by HCM City police on Monday, the city Police Department announced at a press conference yesterday.

Nguyen Tan Tai, 24, from District 12. – VNA/VNS Photo

Police said the suspects were taken to the police station and admitted to attacking the men with their knives.

A camera that recorded the incident showed Tai stabbing five of the so-called “street knights” within 13 seconds at the District 3 location.

On Sunday night, Phu and Tai were attempting to steal a Honda SH scooter on Cach Mang Thang 8 Street in District 3 when they were detected by a team of seven “street knights”.

After being besieged by the team, the suspects took out knives and aggressively fought back.

Two members of the volunteer team, Nguyen Hoang Nam, a 29-year-old truck driver, and Nguyen Van Thoi, a 42-year-old motorbike taxi driver, died immediately after being stabbed.

Tran Van Hoang, 47, who founded the Tan Binh District Knights, the volunteer robber-hunter group, had captured more than 500 thieves over a 20-year period; Nguyen Duc Huy, 22, and Dinh Phu Quy, 22, are still in intensive care at a hospital in HCM City.

The secretary of the city’s Party Committee, Nguyen Thien Nhan, and a delegation of officials visited the injured volunteers at the hospital on Monday.

After the incident, the Government Office sent an official letter from Deputy Prime Minister Trương Hoa Binh instructing the police to arrest the three men involved in the incident and give strict punishment.

Major General Phan Anh Minh, deputy director of the HCM City Police Department, said the HCM City People’s Committee would pay all expenditures for funerals and hospital fees for the deceased “street knights” and would take care of their relatives, especially the elderly and children under 18 years old.

“To honour their sacrifice, HCM City Police are completing procedures to give the title of martyr to two of the deceased street knights,” he added.

Source: VNS

Vietnam by planes, trains, automobiles… and then some

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If a Harley Davidson is said to throb to the rhythm of the human heartbeat, then the guttural barking of a classic Russian Ural motorbike is probably what a coronary feels like.

The analogy came to mind as I rattled through the clogged arteries of Hanoi’s Old Quarter in the sidecar of a 50-year-old Iron Curtain motorbike.

Perhaps it’s something to do with the shape of Vietnam — a sinuous, serpentine country, snaking 1,000 miles down the eastern seaboard of Indochina — that makes imaginative transportation such a fascination in the country.

I’d started my journey in an infinitely more leisurely style — with a seaplane flight to mystical Halong Bay and a few days exploring that intriguing archipelago in a Vietnamese junk.

Now I was back in Hanoi and quickly falling in love with the bustling Old Town.

Guided jeep tours visit the tangled alleys and lakeside roads of Old Hanoi. Photo: Mark Eveleigh, CNN

Local guide Cuong Phung — who’d led the likes of Ewan McGregor and Charlie Boorman on motorbike tours of Vietnam — had spent the morning showing me his enchanting city from the 360-degree vantage point of an open-top American military Jeep.

Now he was revving his old Ural motorbike down towards Hanoi’s railway station (still signposted Ga Hà Nội from the French) with my kitbag stuffed between my knees in the well of the sidecar.

I had more than 1,000 miles to travel from the traditional northern capital down to the colorful metropolis of Ho Chi Minh City and had been looking forward to the first leg of a 14-hour rail trip down to Hoi An on the legendary Reunification Express.

It’s one of the world’s most evocative rail journeys, but accommodation is basic and notorious shared washrooms tend to dissuade all but the most dedicated rail fans from making this trip.

I spent a night swaying in the upper bunk and was pleased when the rising sun brought with it a view of the gleaming waves of the South China Sea and the promise of an invigorating surf session at Danang’s China Beach.

‘That’s not a boat, it’s a basket’
Danang was once a major American base and a “rest and recuperation” center for frontline GIs, including a handful of Californians who pioneered surfing in this area.

Although the waves are far from Golden State quality, the chance to ride a few cruising China Beach breakers was irresistible.

Basket-like trungs are said to have been designed to circument a French tax on boats. Photo: Mark Eveleigh, CNN

“Charlie don’t surf!” yells Robert Duvall in Francis Ford Coppola’s iconic movie “Apocalypse Now.”

But in fact, Vietnamese fishermen have been surfing these waves since long before it was ever called China Beach.

And, what’s more, they surf them in simple circular boats known as “trung,” which, with neither bow nor stern, might be the world’s most basic rowing boats.

Battling out to sea, crouched in the belly of one of these boats, I soon realized that steering a trung takes a level of skill that surpasses the mere handling of a Californian Malibu board.

Often considered an ancient version of the medieval coracle, the Vietnamese trung was actually a trick to circumvent a French tax on boats: “That’s not a boat,” they’d say, “it’s a basket!”

As befits a country with more than 2,000 miles of coastline, Vietnam has an endless variety of boats. By sunset I was drifting slowly down the Thu Bon River in the ancient city of Hoi An (a UNESCO World Heritage Site) amid an entire fleet of eagle-eyed sampans.

The people of Hoi An believe that their boats avoid collision primarily because of the eyes painted on their bows, but the shrewd skill of the cigar-puffing old woman who manned the oars certainly played a large part in maneuvering safely along the busy ribbon of gilded water as darkness fell on the ancient town.

With its creaking cycle-trishaws and alleyways strung with Chinese lanterns, Hoi An could be the most picturesque spot in all of Indochina.

From the riviera to the rice basket
Travel in Vietnam is often about powerful contrasts, and the next morning I hauled my kitbag out of a trishaw and onto a long-distance sleeper bus where I slid into one of a series of molded cubbyholes that allowed each passenger to lie stretched almost horizontal.

We gazed out of the low-level windows or dozed, slotted in line like hibernating astronauts, through much of the 10-hour journey to Cam Ranh Bay.

Moped taxis are a popular transport option in Vietnam. Photo: Mark Eveleigh, CNN

Cam Ranh is an up-and-coming luxury resort area that sees itself as the Vietnamese Riviera. A great stretch of gleaming white sand is fast becoming the setting for some of the country’s top luxury hotels.

The Anam is one of the finest, with sprawling lawns leading down to the crystal sands and suites decorated with original paintings by local artists. The area itself has little to offer culturally, but the idyllic serenity of The Anam offered a perfect spell of R&R as I prepared myself for the sensory overload of Ho Chi Minh City.

Although I’m now in the south, my Vietnamese overland trip is far from over. The great watery sprawl of the Mekong Delta lures me onward with dreams of peaceful afternoons cycling along riverside paths and more waterborne adventure among the 15,666 square miles of Vietnamese down-country bayous that are known as the rice-basket of Vietnam.

It’s only when I check out of the pretty little Ma Maison Boutique Hotel (656/52 Cach Mang Thang 8 Street, Ward 11, District 3; (84-8) 3846 0263) in old Ho Chi Minh City to head for the rendezvous for my Mekong visit that I discover what is surely the most charmingly named of all Vietnam’s countless forms of transport.

Apparently, the moped taxis that had already shuttled me through half a dozen cities down the length of the country are known here as Honda Om.

“Om” means “hug” in Vietnamese and these vehicles are named for the apparent affection of a passenger clinging to the back of the rider as he darts through the swarming traffic with the daring of a Mig pilot.

This might be one of Asia’s most diverse countries, but it seemed to me that the humble “Honda hug” could be a unifying symbol of modern Vietnam.

Asia experts Backyard Travel offer 9-day overland tours from US$1,105 per person, including Mekong Delta and Halong Bay, and taking in the main sights between Saigon and Hanoi.

By Mark Eveleigh

Source: CNN

 

Getting around Vietnam by planes, trains, automobiles… and then some

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If a Harley Davidson is said to throb to the rhythm of the human heartbeat, then the guttural barking of a classic Russian Ural motorbike is probably what a coronary feels like.

The analogy came to mind as I rattled through the clogged arteries of Hanoi’s Old Quarter in the sidecar of a 50-year-old Iron Curtain motorbike.

Perhaps it’s something to do with the shape of Vietnam — a sinuous, serpentine country, snaking 1,000 miles down the eastern seaboard of Indochina — that makes imaginative transportation such a fascination in the country.

I’d started my journey in an infinitely more leisurely style — with a seaplane flight to mystical Halong Bay and a few days exploring that intriguing archipelago in a Vietnamese junk.

Now I was back in Hanoi and quickly falling in love with the bustling Old Town.

Local guide Cuong Phung — who’d led the likes of Ewan McGregor and Charlie Boorman on motorbike tours of Vietnam — had spent the morning showing me his enchanting city from the 360-degree vantage point of an open-top American military Jeep.
Now he was revving his old Ural motorbike down towards Hanoi’s railway station (still signposted Ga Hà Nội from the French) with my kitbag stuffed between my knees in the well of the sidecar.

I had more than 1,000 miles to travel from the traditional northern capital down to the colorful metropolis of Ho Chi Minh City and had been looking forward to the first leg of a 14-hour rail trip down to Hoi An on the legendary Reunification Express.

It’s one of the world’s most evocative rail journeys, but accommodation is basic and notorious shared washrooms tend to dissuade all but the most dedicated rail fans from making this trip.

I spent a night swaying in the upper bunk and was pleased when the rising sun brought with it a view of the gleaming waves of the South China Sea and the promise of an invigorating surf session at Danang’s China Beach.

‘That’s not a boat, it’s a basket’

Danang was once a major American base and a “rest and recuperation” center for frontline GIs, including a handful of Californians who pioneered surfing in this area.

Although the waves are far from Golden State quality, the chance to ride a few cruising China Beach breakers was irresistible.

“Charlie don’t surf!” yells Robert Duvall in Francis Ford Coppola’s iconic movie “Apocalypse Now.”

But in fact, Vietnamese fishermen have been surfing these waves since long before it was ever called China Beach.
And, what’s more, they surf them in simple circular boats known as “trung,” which, with neither bow nor stern, might be the world’s most basic rowing boats.

Battling out to sea, crouched in the belly of one of these boats, I soon realized that steering a trung takes a level of skill that surpasses the mere handling of a Californian Malibu board.

Often considered an ancient version of the medieval coracle, the Vietnamese trung was actually a trick to circumvent a French tax on boats: “That’s not a boat,” they’d say, “it’s a basket!”

As befits a country with more than 2,000 miles of coastline, Vietnam has an endless variety of boats. By sunset I was drifting slowly down the Thu Bon River in the ancient city of Hoi An (a UNESCO World Heritage Site) amid an entire fleet of eagle-eyed sampans.

The people of Hoi An believe that their boats avoid collision primarily because of the eyes painted on their bows, but the shrewd skill of the cigar-puffing old woman who manned the oars certainly played a large part in maneuvering safely along the busy ribbon of gilded water as darkness fell on the ancient town.

With its creaking cycle-trishaws and alleyways strung with Chinese lanterns, Hoi An could be the most picturesque spot in all of Indochina.

From the riviera to the rice basket

Travel in Vietnam is often about powerful contrasts, and the next morning I hauled my kitbag out of a trishaw and onto a long-distance sleeper bus where I slid into one of a series of molded cubbyholes that allowed each passenger to lie stretched almost horizontal.

We gazed out of the low-level windows or dozed, slotted in line like hibernating astronauts, through much of the 10-hour journey to Cam Ranh Bay.

Moped taxis are a popular transport option in Vietnam. Mark Eveleigh, CNN

Cam Ranh is an up-and-coming luxury resort area that sees itself as the Vietnamese Riviera. A great stretch of gleaming white sand is fast becoming the setting for some of the country’s top luxury hotels.

The Anam is one of the finest, with sprawling lawns leading down to the crystal sands and suites decorated with original paintings by local artists. The area itself has little to offer culturally, but the idyllic serenity of The Anam offered a perfect spell of R&R as I prepared myself for the sensory overload of Ho Chi Minh City.

Although I’m now in the south, my Vietnamese overland trip is far from over. The great watery sprawl of the Mekong Delta lures me onward with dreams of peaceful afternoons cycling along riverside paths and more waterborne adventure among the 15,666 square miles of Vietnamese down-country bayous that are known as the rice-basket of Vietnam.

It’s only when I check out of the pretty little Ma Maison Boutique Hotel (656/52 Cach Mang Thang 8 Street, Ward 11, District 3; (84-8) 3846 0263) in old Ho Chi Minh City to head for the rendezvous for my Mekong visit that I discover what is surely the most charmingly named of all Vietnam’s countless forms of transport.

Apparently, the moped taxis that had already shuttled me through half a dozen cities down the length of the country are known here as Honda Om.

“Om” means “hug” in Vietnamese and these vehicles are named for the apparent affection of a passenger clinging to the back of the rider as he darts through the swarming traffic with the daring of a Mig pilot.

This might be one of Asia’s most diverse countries, but it seemed to me that the humble “Honda hug” could be a unifying symbol of modern Vietnam.

Asia experts Backyard Travel offer 9-day overland tours from US$1,105 per person, including Mekong Delta and Halong Bay, and taking in the main sights between Saigon and Hanoi.

By Mark Eveleigh, This article appeared in the CNN

What can be done to help Vietnam’s SMEs?

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Small- and medium-sized enterprises (SMEs) are central to Vietnam’s economic growth, providing significant contributions to job creation, export promotion and poverty reduction.

However, despite accounting for some 98 percent of the country’s enterprises, 40 percent of GDP and 50 percent of employment, the performance of SMEs is still constrained by many factors, both internal and external, such as shortage of qualified human resources and limited access to technology, as well as administrative hurdles. An article on lexology.com mentioned

Despite the obstacles, the number of SMEs continues to grow, adding around 100,000 in 2016, thanks to government reforms. For this trend to continue, and to meet the goal of one million enterprises by 2020, changes are needed to smooth the entry of firms to the market and help startups to grow. Here are three steps to ensure the sustainable development of smaller firms in Vietnam:

Improve access to credit

Among the detrimental external factors, lack of access to credit is considered the primary obstacle preventing the growth of SMEs. Up until now, banks providing commercial loans have allocated their resources to larger firms rather than smaller enterprises, citing higher default risks, lack of financial transparency and lack of assets as factors in the decision.

Complex banking procedures and a shortage of appropriate loan packages for SMEs compound the problem.

According to the World Bank’s ‘Doing Business 2018’ report, Vietnam ranked 68 out of 190 economies – jumping 14 places against the previous year. The country ranked 29 out of 190 economies in terms of their access to credit. In terms of both score and ranking, Vietnam measured well above the average for OECD (Organisation for Economic Cooperation and Development) members and East Asia-Pacific countries.

The World Bank attributed the country’s position to its legal framework regarding the expansion of collateral assets and the completion of the credit information system from 2008 to 2017. Specifically, the Civil Law 2015, which came into effect on January 1, 2017, has expanded the scope of assets to be used as mortgages, which helps improve access to credit and puts businesses and investors in a better position.

Despite the positive figures, a large number of enterprises still find it cumbersome to access bank credit and are often denied.

Therefore, one of the most important measures to support SMEs is to improve their access to loans. Diversified capital raising channels and a credit market for SMEs, with appropriate lending packages based on demand, could help to decrease the dependency on banks. In return, small firms should work on improving transparency to reduce risks.

Link up to global supply chains

As of 2017, only 21 percent of Vietnamese SMEs were participating in global supply chains, much lower than neighbours like Thailand and Malaysia, sitting at 30 percent and 46 percent, respectively. Integrating further with global supply chains in terms of procurement, operations and sales will allow firms to manage competition, reduce risks and cut costs.

Slow progress in dismantling state-owned enterprises, sluggish productivity and an uncompetitive private sector result in a shortage of private medium-sized enterprises. This ‘middle segment’ needs to link up with well-managed supply chains to dominate markets, gain trust from customers and expand business strategies. Vietnamese firms have struggled to join big markets and are left out of crucial supply chains.

This situation can change. As a member of APEC, ASEAN and the WTO, Vietnam holds a critical position politically and geographically. Vietnam’s proximity to southern China, home to many production networks, also gives it a competitive edge. Taking advantage of these trade opportunities, as well as coming digital and e-commerce trends, would help to streamline the country’s supply chains and build a more dynamic private sector.

Cut red tape

A survey released last year by the Vietnam Private Sector Forum showed that 44 percent of enterprises said they had missed market opportunities because of legal barriers and restrictions.

In an effort to simplify and remove barriers to businesses, Vietnam’s Ministry of Industry and Trade (MoIT) has moved to cut business and investment red tape in half. Such a move is designed to make administrative procedures easier for the private sector, and especially small and medium enterprises. The country’s business environment has been gradually changing as the government moves to develop the private sector.

This is a step in the right direction, however, the results are neither meeting the expectations of enterprises, nor government targets. Vietnam’s administrative environment has long been criticised for being too complicated and creating unnecessary barriers for businesses. Analysts often complain that the many conditions and regulations in the country do not meet international standards, such as requirements on minimum or legal capital or human resources rules.

The World Bank suggested that the country needs to do better at supporting early-stage businesses, particularly in dealing with construction permits, registering property and enforcing contracts.

These are just some of the obstacles standing in the way of Vietnam’s smaller businesses. With the Law on Support for Small- and Medium-sized Enterprises (SME Law, 04/2017/QH14) coming into force at the start of 2018, it is hoped that the challenges detailed above will be addressed. A dynamic, competitive and innovative private sector, in which SMEs play a leading role, is a solid guarantee of Vietnam’s future prosperity and growth. The government has shown a desire to help the country’s fledgling firms, now is the time to put words into action.

By Duane Morris LLP - Giles T. Cooper

3 reasons smart investors are banking on Vietnam

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Vietnam’s Gross Domestic Product (GDP) expanded by 6.81 per cent last year, marking its highest growth rate in a decade. The country continues to impress, with the economy growing by 7.38 percent in the first quarter of 2018 – one of the fastest rates in Asia – and total growth is expected to be in the region of 6.7-6.8 percent for the year. It could even hit 7.1 percent, according to the Asian Development Bank.

Looking ahead, the Vietnamese Government is seeking to maintain the country’s good growth until at least 2020, with the Prime Minister encouraging private companies – currently accounting for 43 per cent of GDP – to grow and increasing investment into rural areas. Lexology.com reported.

There’s much to celebrate about Vietnam’s growth over the last few years, and many investors have already taken note and got in on the action. For those still on the fence, here’s just three reasons why a bet on the country’s economy may pay off handsomely.

Switched on to electronics

Other countries in the region tend to export raw materials or components to China, where they are assembled into other products. Vietnam exports mainly finished goods.

One such producer, the Samsung Electronics factory in Thai Nguyen, in northern Vietnam, employs more than 60,000 people and produces more mobile phones than any other facility in the world. Samsung Electronics’ combined factories in Vietnam produce almost a third of the firm’s global output. So far, the company has invested a cumulative US$17 billion in the country.

The relationship has been mutually beneficial, helping to make Vietnam the second-biggest exporter of smartphones in the world, after China. Samsung alone accounted for almost a quarter of Vietnam’s total exports of US$214 billion last year.

The company’s presence in Vietnam will not stop there, with co-CEO, Koh Dong-jin, recently informing the Prime Minister of plans to expand production and open further plants.

Samsung isn’t alone in Vietnam’s exciting electronics landscape. The export turnover of electronics and household electrical appliances accounted for 28.9 percent of total export turnover. Mobile phones & components, cameras and other machinery brought in revenue of US$61.8 billion, an increase of US$14.45 billion compared to the year before.

An international mindset

Vietnam received FDI worth 8 percent of GDP last year — more than double the rate of comparable economies in the region. Foreign-owned firms now account for nearly 20 percent of the country’s output. They have grown more than twice as fast as state-owned enterprises over the past decade, despite the country’s nominally communist government.

In contrast to China, a large rival in the cheap manufacturing stakes, Vietnam is liberalising its economy to welcome foreign industry. In 2015 the government opened 50 industries to foreign competition and cut regulations in hundreds more. It sold a majority stake in the biggest state-owned brewer, Sabeco, to a foreign firm last year. Similar sales are expected in the coming months.

Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors. It is a founding member of the Trans Pacific Partnership, a multilateral trade agreement that includes Australia, Canada and Japan, among others. Although the agreement fell apart without US support, it was quickly repurposed and renamed. A significant trade pact with the European Union is also on the horizon. The deal signed with South Korea a few years ago has made it South Korea’s fourth-biggest trading partner.

Fertile ground for start-ups

The government has put forward a number of regulations and programmes to support start-ups, especially innovative ones, including Decree 38/2018/ND-CP (Decree 38) on innovative start-up investment. Decree 38 identifies and recognises innovative start-up investment activities as a business, and cements the legal status of innovative start-up companies and funds.

The decree is expected to provide a legal basis for private investors when jointly contributing capital to establish a creative start-up fund and streamline capital flows for creative start-up activities.

According to the Vietnam Chamber of Commerce and Industry (VCCI), the country boasts a strong entrepreneurial drive and ranks among the 20 economies with leading entrepreneurial spirit.

Up to US$291 million was poured into Vietnamese start-ups last year, a year-on-year increase of 42 percent. However, this figure lags behind the region as whole, which saw investment of US$7.86 billion. The number of M&A deals remains small and no startup has yet made an IPO. Clearly, there is still a lot of room for growth in this sector.

The great potential hasn’t gone unnoticed and the government has recognised the tremendous importance that the start-up movement has to the economy and accelerated its development.

As well as a young, cheap and plentiful supply of workers, the Vietnamese economy possesses a dynamism unlike others in the region. Nurturing such domestic entrepreneurship is the key to sustainable growth. The Vietnamese government has already set out ambitions of creating a vibrant ‘start-up nation’, with a million new enterprises being born by 2020.

These are just a few of the reasons why smart investors should be seriously considering Vietnam as their next investment destination. In addition to the above, economic growth will be driven by manufacturing and export expansion, rising domestic consumption, strong investment fueled by foreign investors and domestic firms, and an improving agriculture sector. These is an abundance of optimism over the country’s future, and the signs are that this year Vietnam will be one of the strongest performers in the region.

By Duane Morris LLP - Giles T. Cooper
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