The market and consumer rights agency in Vietnam has planned to conduct an examination of the operation of Southeast Asian e-commerce firm Lazada Group after it has been accused of providing persistently unreliable services.
The Vietnam Competition Authority said it will inspect business activities of Recess Limited Liability Company, Lazada Group’s site in Vietnam, in the wake of a large number of complaints it recently received from customers about the online retailer’s product quality and services when they made purchases at Lazada.vn.
Officials underlined that the check has to be implemented since consumers kept reporting repeated problems with Lazada, although the firm had adequately solved them.
The problems included making late and wrong deliveries, handing customers products which passed their shelf lives, failing to give invoices, canceling orders without customers’ knowledge, and charging them undiscounted prices for products which should have enjoyed lower rates as advertised on the company’s website.
The authority added that consumers in Vietnam have increasingly been sending complaints on quality of goods and transactions after placing orders for products touted on television or buying those which require payment in installments.
According to local people, Ms. Hue has very difficult circumstances in life. In 2008, her husband died of a serious disease in brain cancer. Her main job is a sanitation worker in Thanh Xuan North ward, and after working time she has a side-job as sidewalk ice-tea to earn more income for raising her two children.
Due to the rain, Ms. Hue ask the guest to leave, but she was injured by this woman, and hospitalized after that.
According to the report of Ms. Nguyen Thi Hue, (born in 1977, in Ha Dinh ward, Thanh Xuan district, Hanoi) she is currently a sanitation worker of Thanh Cong Cooperative. About 07.00 PM of 19th May, Ms. Hue said to the woman named D. (the guests are drinking tea) ask to leave. Then, Ms.Hue and the guest have verbal abuse and suddenly, the woman named D picked up the chair toss in Ms.Hue’ face and then leave.
A few minutes later, four young man came and pulled Ms.Hue out in the rain, and the woman named D kept beating her. After that, Ms. Hue came to the police station of Thanh Xuan North to report.
Due to the facial wound was too deep, so Thanh Xuan North Ward Police took her to the Hospital Construction in the local area to bandage wound.
By the incident, the police chief of Thanh Xuan North ward said that the local police had invited the woman named D and four young man to the police station and reported the district to handle according to regulations.
Source: DantriFirst translation by VietnamInsider.
Fintech’s influence is growing around the globe. According to PricewaterhouseCoopers, fintech startups attracted more than $40 billion in investments during the past four years, and legacy institutions are warming up to partnerships with agile, digital-first companies.
The Asia-Pacific region saw nearly $15 billion in fintech investments between January 2016 and February 2017 alone. Needless to say, the opportunity in fintech is real–and Vietnam is getting in on it.
Sky’s the limit
Vietnam’s fintech market hit $4.4 billion in 2017, and it will reach $7.8 billion by 2020 , according to research from Solidiance, an APAC-focused consulting firm. In a recently published report, “Unlocking Vietnam’s Fintech Growth Potential,” Solidiance attributes the uptick to several factors, including high internet and smartphone penetration rates in urban centers, increased popularity of e-wallets, rising income and consumption, and a growing e-commerce sector.
High smartphone penetration numbers are helping drive Vietnam’s fintech boom. Photo: Thomas Koehler/Photothek via Getty Images
The company also credits the Vietnamese government with creating an “increasingly supportive regulatory framework” via the creation of the Fintech Steering Committee and other measures. If the government is successful in its plan to reach 70% banking penetration within the next two years, that could further accelerate the fintech market, where startups are already creating solutions such as lifestyle banking services and a range of mobile wallet and digital payments solutions.
Michael Sieburg, associate partner at Solidiance, says that much will depend on the state’s movements in the next few years. “It’s important to acknowledge the development of the Fintech Steering Committee by the State Bank of Vietnam. This is an important move and illustrates the government’s serious approach to developing a framework that can guide the industry forward,” he says. “But one key issue to address will be the speed at which new products and services can receive legal guidance so they can operate with predictability and decrease compliance risk.”
He notes that lengthy approval times for licenses can hinder innovation and impede Vietnam’s emergence as a fintech leader. “Finding that balance between encouraging innovation while protecting the public interest will be key,” Sieburg says.
Push for digital
Currently, digital payment solutions comprise 89% of the fintech market here, according to Solidiance. But the company predicts that the personal and corporate finance sectors will grow by 31.2% and 35.9%, respectively, by 2025. That growth will be driven in part by the government’s push to move away from cash-based transactions. Last year, the state announced a plan to reduce cash transactions in shopping malls, grocery stores, and distributors to less than 10% by 2020.
Digital payments currently comprise the lion’s share — 89% — of Vietnam’s fintech market. Photo: HOANG DINH NAM/AFP/Getty Images
Before that can happen, Vietnam’s financial inclusion stats will need to increase. As of 2014, only 31% of adults held formal transaction accounts, according to the World Bank. There are several reasons for this, including high costs, prohibitive documentation requirements, a lack of financial services in close proximity to consumers, and skepticism of the financial sector.
Mobile a catalyst
Sieburg says the financial inclusion process will be helped along by the country’s high smartphone penetration rate. As of 2017, 84% of mobile phone users are on smartphones. Digital payment apps can help draw in consumers who traditionally lacked access to formal banking systems, paving the way toward a cashless–or less cash-dependent–society. ” Digital payments could transform not only the retail market and bill payment but also payment for public services as well government-to-people payments , currently a challenge in some rural areas where banking sector penetration is less developed,” Sieburg says.
There’s a great deal of work to be done if Vietnam is to fulfill its fintech ambitions, but Sieburg predicts big things in the country’s future. ” In the next decade, Vietnam will emerge as a regional leader in developing innovative fintech solutions ,” he says. “There is so much energy here. …With a population eager to adopt technology and a vibrant, young, tech-smart population propelling innovation, I’m excited about what lies ahead here.”
From the hustling startup community to innovation initiatives within traditional organizations, Sieburg sees signs of real growth. Coupled with an increasingly supportive regulatory ecosystem, there’s good reason to think Vietnam’s fintech sector is one to watch.
Flood prevention works in Saigon between 2016 and 2020 are estimated to cost more than US$4.2 billion, according to its Steering Centre of the Urban Flood Control Program.
VNS reported, at a meeting held to review the program’s implementation on May 18, the Steering Centre’s deputy director, said the amount included US$960.5 billion from the private sector.
The flood prevention projects include construction of three irrigation reservoirs, upgrades to the storm drain system and the Xuyen Tam Canal, and construction of seven wastewater treatment plants.
Two and a half years after starting the program the centre has achieved the goal of preventing flooding in the city’s 550sq.km central area and five neighbouring areas, according to the Steering Centre’s deputy director.
Image source: dantri.com.vn
This year seven more main streets and 445 alleys will become flooding-free.
River tides too flood many streets, but four have now put this problem behind them.
Many of the projects in the program had been delayed due to shortage of funds, and the People’s Committee should seek financing from the private sector and official development assistance.
Flooding in Saigon
It should instruct relevant agencies to take severe action against encroachment of drains and illegal filling of canals, he said.
Canals and channels should be regularly dredged, he said.
Mr. Nguyen Thanh Phong, Chairman of the city People’s Committee, called on relevant agencies and districts to co-ordinate with the centre for flood prevention.
Urban management and co-ordination were “limited”, leading to low effectiveness of flood-prevention efforts, he said.
The centre should earmark more spaces for water storage and do further research into water drainage, he said.
There were many reasons for flooding, including tides, heavy rains, failure to dredge canals and channels, and others, he said.
So many different measures were required and applied simultaneously to resolve the problem, he added.
HANOI, 21 May 2018: Vietnam launched an environmental protection campaign at the weekend that will position the country as a green tourism destination.
“Green Vietnam” 2018 aims to support sustainable development as well as building awareness of environmental protection in tourism according to a report of the Communist Party of Vietnam’s online news service.
The official launch presentation called on the tourism industrry to respond to climate change at community and business level to improve the visitor experience.
Vietnam’s Deputy Minister of Culture, Sports and Tourism, Dang Thi Bich Lien, launched the environmental protection campaign “Green Vietnam Sea” with more than 1,000 youth unionists and tourism enterprises present.
The launch of environmental protection in tourism is a response to World Environment Day earlier this month.
The Deputy Minister of Culture, Sports and Tourism said that the environmental protection campaign “Green Vietnam Sea” tourism in 2018 that complies with the theme “Green tourism – Sustainable development ” would start in five coastal provinces – Thanh Hoa, Nghe An, Quang Binh, Quang Tri and Danang – during the remainder of the month.
The main thrust will mobilise tourism workers, communities and agencies to clean up pollution and trash that is caused mainly by tourism.
But much more needs to be done and the Ministry of Culture, Sports and Tourism will support various projects and coordinate with the central and local committees, to strengthen destination management in terms of reducing pollution and tackling the problems that the tourism boom brings in its wake.
“We are committed to improving the state’s role in the management of environmental protection in general, the environment of tourism in particular, raising the awareness and responsibility of the community and tourists at tourist sites … to ensure we have a friendly, clean and beautiful destinations that are reflect sustainable tourism principles.”
The company reportedly made late, wrong deliveries, provided no invoices to customers and under-delivered its discount promise, on many occasions.
According to a report by Tuoi Tre News, the market and consumer rights agency in Vietnam has planned to conduct an examination of the operation of Southeast Asian e-commerce firm Lazada Group after it has been accused of providing persistently unreliable services.
The Vietnam Competition Authority said it will inspect business activities of Recess Limited Liability Company, Lazada Group’s site in Vietnam, in the wake of a large number of complaints it recently received from customers about the online retailer’s product quality and services when they made purchases at Lazada.vn.
Officials underlined that the check has to be implemented since consumers kept reporting repeated problems with Lazada, although the firm had adequately solved them.
The problems included making late and wrong deliveries, handing customers products which passed their shelf lives, failing to give invoices, canceling orders without customers’ knowledge, and charging them undiscounted prices for products which should have enjoyed lower rates as advertised on the company’s website.
The authority added that consumers in Vietnam have increasingly been sending complaints on quality of goods and transactions after placing orders for products touted on television or buying those which require payment in installments.
Lender to offer up to 25 percent stake to foreign investors
Bank to list 750 million shares in Ho Chi Minh City this year
Vietnam Orient Commercial Joint Stock Bank expects its market capitalization to rise to $1 billion after its planned listing on the country’s benchmark bourse during the second half of the year, according to Chairman Trinh Van Tuan. Reported by Bloomberg
The 22-year-old bank, also known as OCB, plans to list 750 million shares on the Ho Chi Minh City Stock Exchange late third quarter or early fourth quarter, said Tuan, who would not disclose the planned initial price.
The bank plans to sell 800 billion dong ($35 million) of shares to investors via private placement in the third quarter after issuing 14.2 percent of dividend shares and 20.5 percent of shares to existing shareholders, Tuan said in his Ho Chi Minh City office Friday. OCB expects to boost its registered capital by 50 percent to 7.5 trillion dong through the share issuances before its planned listing, the chairman said.
The lender also plans to offer as much as 25 percent of its shares to foreign investors before the listing, according to Tuan.
The bank is planning roadshows in Singapore, Hong Kong and London in June and July, Tuan said. It has garnered interest from multiple investors from Asia, Australia and Europe, he added. Tuan declined to provide a share price.
“We are one of a few high-growth and good private banks in Vietnam that have more than a 25 percent stake available to foreign investors,” he said. Vietnam’s strong economy and stock market is providing the bank an opportune time to seek investors, Tuan said.
OCB’s listing would make it the fourth Vietnamese bank to list on the nation’s major exchange this year, following HDBank, Tien Phong Bank and Techcombank, which plans to trade shares on the Ho Chi Minh City Stock Exchange next month.
Banking peer Tien Phong Bank had a similar goal after its Vietnam listing — getting its value to at least $1 billion in the fourth quarter. A month after its listing, its market cap is sitting at about $715.9 million. This comes at a time when the Vietnam benchmark index has lost almost $20 billion in value since its April 9 record as investors sold equity holdings to buy into new issues and stockpile cash.
Even so, Bank for Foreign Trade of Vietnam, known as Vietcombank, last month sold 6.67 million shares of Orient Commercial Bank through a public auction at an average price almost double the initial offering of 13,000 dong per share after receiving oversubscribed bids, according to the Hanoi Stock Exchange.
OCB targets annual profit growth of 50-60 percent beginning in 2019, Tuan said. The bank sees 2018 pretax profit doubling to 2 trillion dong, according to the chairman, who with family holds nearly 18 percent of the lender’s shares. The bank this year targets expanding total assets by 37 percent to 116 trillion dong and restricting non-performing loans below 2 percent, less than the government’s overall banking sector target of below 3 percent.
NICKI CHAPMAN found TV fame as a judge on Pop Idol in 2001. She now hosts BBC shows Wanted Down Under, Escape To The Country and is part of the BBC presenting team at the RHS Chelsea Flower Show. Nicki, 51, lives in West London with music executive husband Dave Shackleton.
WHAT IS YOUR MOST MEMORABLE HOLIDAY?
My first visit to Vietnam with my husband in 2014. Hanoi was a baptism of fire, a complete assault on the senses.
I’ll never forget my first sight of the chaotic, dusty roads with thousands of cyclists.
I loved the bustling night market and munching on street food such as shrimp pat ties, known as bánh tôm.
We arrived during Tet, Vietnamese New Year, and stood by families, dressed in traditional costume, watching fireworks exploding over the Hoàn Kiem Lake. It was magical.
AND YOUR WORST?
Losing my luggage in Botswana was dire.
I was filming a holiday programme and had to take a light plane to the Makgadikgadi Pans, a huge salt flat where you can actually see the curvature of the Earth.
I was so excited until I arrived and realised the pilot had left my suitcase on the Tarmac.
I filmed for three days without make-up or a change of clothes.
WHICH SOUVENIR DO YOU CHERISH MOST?
A beautiful, wooden angel sculpture I bought in Thailand.
I asked my taxi driver to find an off the beaten track market and we drove to a huge field, about 20 miles from Phuket, which was jam-packed with furniture and artefacts.
I spotted my 2ft tall angel and had to sweet talk the airline into letting me take it home in hand luggage.
She has pride of place in my sitting room.
BEST HOLIDAY READ?
Terry Hayes’s thriller I Am Pilgrim.
I went hours without talking to my husband.
And I adore Above Sydney by George Hall, a coffee table book I found in Bondi.
It has incredible aerial views of the Opera House and Harbour Bridge which still take my breath away.
HOW DO YOU SPEND YOUR TIME ON HOLIDAY?
If there’s a boat to be hired I’ll be there.
We’ve been to the Sandpiper hotel in Barbados for years and always hire a catamaran to sail along the west coast to Bridgetown, where we swim with turtles and snorkel.
WHERE WOULD YOU REVISIT?
The Amazon rainforest where I had an incredible experience staying on a floating hotel.
Our guide woke us at midnight, putting flashlights on our heads to go searching for crocodiles or caimans.
We went piranha fishing which I loved until our guide showed me his three missing fingers.
Vietnam’s association with the bleakness of war cast a veil of bad memories when the country is mentioned. However, rebuilding after destruction exhibits how strong the nation really is and speaks massively of the people living there.
Drawn by Vietnam’s at-times mysterious culture, French photographer Réhahn visits and took portraits fitting for Vietnam’s admirable people who are often overshadowed by the role they played in the war.
Réhahn got an overwhelming response after sharing Madam Xong’s photo to the world which then urged him to continue the Hidden Smile Project in Vietnam. Réhahn’s narrative goes as:
“Madam Xong, as she’s affectionately called by Réhahn is a sampan boat owner whose present day job is to ferry tourists along the waterways of her hometown, Hoi An. She was very warm and welcoming towards him. He asked her if he could take her portrait. With a shy response, she awkwardly obliged and after seeing her own photo, started giggling and covered her smile with one hand. This action inspired Réhahn to take another picture of her in this pose and then she covered her mouth with one hand and her forehead with the other pretending to hide.”
Réhahn was surprised that Vietnamese people cover their mouths when they laugh but started seeing that this gesture makes use of the whole face to show the positivity of smiling. He recounts that, “here in Vietnam, it’s common for elders to cover their mouths when they are speaking, giggling softly or laughing uncontrollably. When people are shy, they cover their mouths with their hands. A lot of older people in Vietnam, through hardships have lost their front teeth so they also cover their mouths. But besides this, look closely at the eyes, the hands and the face.”
Nha Trang is a coastal city in Vietnam surrounded by mesmerizing blue water, mountainous islands and some of the best seafood in Vietnam. Now, 10 hours up north, Da Nang is also a coastal city inVietnam…also surrounded by magnificent blue water, mountainous islands and some of the best seafood in Vietnam. EEK! Travelemma much?
Now, I don’t know you, and I know nothing about your travel plans…BUT. When you come to sunny, tropical Vietnam, something tells me you might wanna escape the hustle and chaotic bustle of Ho Chi Minh City and Hanoi for a few days and spend some time kickin’ at a tropical beach with a coconut under a palm leaf. I get it!
But where do you go? Therein lies the problem. Nha Trang has a population of about 420,000, where Da Nang has a massive population of 1.5 million (although it definitely doesn’t feel that big!). Da Nang is much cleaner than Nha Trang, but Nha Trang has far less construction. Nha Trang has a nicer beach promenade, but Da Nang has a beautiful river walk. It really just depends what’s more important to you in a destination! Let’s break it down, shall we?
(Disclaimer: I live in Da Nang, so I promise I’ll try not to be biased!)
The beaches
OK. WOULD YOU RATHER…
HAVE THIS
OR THIS.
Impossible to decide? I know. Let’s talk about it.
Nha Trang
First thing’s first, the city beaches. Nha Trang has a stunning city beach – bright blue water looking out to the mountains, a beautifully landscaped promenade, and countless swanky-lookin’ beach bars to indulge yourself with a fancy schmancy cocktail on a plush lounge chair in the sand. You don’t feel like you’re at a city beach, thanks to the well-developed promenade that separates you from the chaos of the city – it’s truly an oasis. Although the thing that really sold me was the Louisiane Brewhouse, a beachside brewery complete with a free-to-use pool and in-house made craft beers for 50K (a reasonable $2.50)! Now THAT’S what I’m talkin’ about Nha Trang!
Break away from the city, and you’ve got a number of stunning islands with breathtaking crystal clear water to explore, easily accessible by boat. Just go to the Nha Trang port, tell them you want a boat to explore the islands, and voila! Smooth sailin’. The big con? While the water is absolutely jaw-dropping with its 100 shades of blue, the islands can get pretty littered, so buyer beware.
Da Nang
Now, Da Nang’s city beach has less stunningly clear water (con), yet has much finer, silkier sand (pro!) but less cool beach bars (con). While the city beach is right next to the main road with only a sidewalk separating the beach from the fast-moving traffic and very loud sounds of construction, the beach scenery itself is really stunning – with remote neighboring islands in the distance and Son Tra mountain’s buddhaful Lady Buddha looking back at you. While there isn’t an impressive selection of beach bars like in Nha Trang, you’ve got what you need – a few cabanas selling coconuts, the Holiday Beach hotel bar that’s right on the sand, and the chilled out beach bar that all the expats living in Da Nang go to (myself included), The Village. It ain’t theLouisiane Brewhouse, but it’ll do!
The real beach gold awaits only a 10 min motorbike ride away, on Son Tra mountain – no need to hop on a boat! Rent a motorbike (or if you’re not feelin’ so ballsy take a Grab – Southeast Asia’s version of Uber), and drive to close-by Son Tra mountain, where quiet, hidden beaches sit ever-so-calmy at the bottom of the mountain. Or, if you still want your island fill, take a short boat ride out to the secluded Cham Islands!
THE WINNER: Drum roll, please… NHA TRANG! With its jaw-dropping water, dozens of beach bars and surrounding islands to explore, Nha Trang takes the prize for this one.
City culture
Nha Trang
Here’s where Nha Trang gets a bit weird. Part of the local culture is…Russian? I mean, the city center is FULL of Russian tourists. Which isn’t a bad thing at all! Just…well, shocking. Menus are in Russian, storefronts are in Russian, the waiters even speak Russian. So…why go to Russia when you can go to tropical Russia! JK… anyway, the Russian tourists were really nice, so embrace learning a new culture! As for the local atmosphere, breaking away from that touristy beach neighborhood, I found the local vibes to be much less friendly and welcoming than in Da Nang.
Da Nang
If you’re not looking at a Vietnamese local, you’re probably looking at 1 of 2 scenarios: a Korean tourist in a sun hat, or a free-spirited life-lovin’ expat that has moved to Da Nang to pursue something artistic or entrepreneurial (did I mention the expat community here is like, really impressive? Anywho…). As for the locals, the local atmosphere in Da Nang is just wonderful. While the language barrier is real, the locals are always incrediblykind, helpful, friendly and always eager to say “hello!!!” to you with an ear-to-ear grin. A smile is the universal language in Da Nang, and it’ll get you quite far.
THE WINNER: Gotta love the Russians, but…this one goes to DA NANG!
Food
Nha Trang
Let’s cut to the chase. I mean isn’t food the real reason we all travel? Nha Trang is known for its grilled beef and of course, it’s seafood. There was one BBQ restaurant that just BLEW me away. It’s called Bo Nuong Lac Canh (pic above), and it’s a local institution that specializes in grilled beef. But it doesn’t just serve up incredible beef, but grilled vegetables, grilled oysters, grilled squid, grilled…well anything you can dream up! Tucked away in a little alley far from the central tourist area of Nha Trang, the minute you step foot onto the tiny street you’ll be hit with smoky aromas of grilled godliness. I’ve gotta say, it knocks any other BBQ restaurant I’ve been to in Da Nang outta the park. A reason in itself to go there? YES.
Da Nang
I can’t point to one single thing to try in Da Nang…it’s all just so good! It’s like, how do you pick your favorite child? You wouldn’t dare! Sure, there are local specialties like Mi Quang and Banh Xeo, and then there are incredible family-style restaurants like Bep Hen, and then there are those fresh seafood restaurants that align the beach, and OH! You can’t forget that real local street food fish spot, that grills up a whole fish in teriyaki sauce on a tiny grill right in front of you for less than $6 (128 Yen Bai, City Center)…see what I mean? Prepare to eat yourself to foodcoma.
THE WINNER: It’s a TIE! Let’s face it. No matter where you are in Vietnam, you’re gonna eat good food.
Location & accessibility
Nha Trang
Nha Trang is located in the central- southern region of Vietnam, a very short flight from Ho Chi Minh City (or an 8-hour-drive). Note, the airport is pretty far outside the city in the middle of nowhere, about a 45-minute drive from the city limits.
Da Nang
Da Nang is smack dab in the middle of Vietnam – right in between Ho Chi Minh City and Hanoi. It’s conveniently awesome airport is surprisingly in the city, and from any point in the city it won’t take you more than 20 minutes to get there. Most travelers go to Hoi An, and must pass through Da Nang’s airport anyway…so why don’t ya get comfy and just stay a while!
THE WINNER: Of course, this depends on your travel itinerary. Butttt, Da Nang’s airport is way more convenient, and due to its central location right next to popular Hoi An, this one is for you DA NANG!
Vietnam’s maritime oil and gas operations are in accordance with international law and conducted in waters in which it has total sovereignty, the country’s foreign ministry said in a statement on Thursday.
Reuters reports, Rosneft Vietnam BV, a unit of Russian state oil firm Rosneft (ROSN.MM), is concerned that its recent drilling in an area of the East Sea that is claimed by China could upset Beijing, two sources with direct knowledge of the situation told Reuters on Wednesday.
“As we have repeatedly asserted, all of Vietnam’s maritime economic activities, including oil and gas activities, have been licensed and carried out in maritime zones entirely under Vietnamese sovereignty and jurisdiction,” foreign ministry spokeswoman Le Thi Thu Hang told Reuters in a statement.
Vietnam’s oil and gas activities are conducted in accordance with the 1982 U.N. Convention on the Law of the Sea, Hang said.
Reporting by Khanh Vu and James Pearson; Editing by Alexandra Hudson
Full scale production is now underway at the new 28,000m2 Daikin air conditioning factory in Vietnam.
Located in the suburbs of the capitol city of Hanoi, this new JPY8bn ($72m) factory is the first in Vietnam to provide full-scale production of air conditioners and functions ranging from air conditioner assembly to technician training and education. Taking advantage of its extensive training facilities, the factory will be used as a base for technician training while also ensuring local supply to an air conditioning market where demand is rapidly increasing.
Through its subsidiary Daikin Air Conditioning Vietnam, the Japanese air conditioning manufacturer first announced its intention to build the factory in July 2016.
Demand for residential air conditioners in Vietnam continues to grow, making the country one of the largest air conditioning markets in Asia. Daikin expects to benefit from its energy-saving products in a country where electric bills relative to incomes are expensive.
The new factory incorporates technology and know-how from Daikin Group factories worldwide, in areas including production control technologies and inspection systems utilising IoT and technical training. Output is expected to reach one million residential units by 2020 with 1500 employees.
A struggle over internet laws in Vietnam is pitting a government keen on maintaining tight control against US technology companies trying to fight off onerous new rules — with the country’s online dissidents among the biggest losers.
According to Reuters’ report, The latest conflict centers on new cybersecurity legislation set for a vote by Vietnamese lawmakers later this month. It aims to impose new legal requirements on internet companies, and hardens policing of online dissent.
Facebook, Google and other global companies are pushing back hard against provisions that would require them to store data on Vietnamese users locally and open offices in the country. But they have not taken the same tough stance on parts of the proposed law that would bolster the government’s crackdown on online political activism.
Vietnam offers a case study in the conflicting pressures the likes of Facebook and Google confront when operating in countries with repressive governments. It also shows how authoritarian regimes try to walk a line in controlling online information and suppressing political activism without crippling the digital economy.
Such tensions are playing out across Southeast Asia, where the enormous popularity of Facebook and Google has created lucrative business opportunities and outlets for political dissent. With that, though, has come both government censorship and a way to get propaganda to large audiences efficiently.
The region is particularly important for Facebook and Google because most Internet users in China are blocked from accessing them.
An industry group called the Asia Internet Coalition (AIC) is leading efforts to soften the proposed cyber law in Vietnam. Jeff Paine, managing director of the AIC, said he and others were able to raise concerns about the law directly with Vietnamese Prime Minister Nguyen Xuan Phuc and other top government officials when they visited Singapore last month.
The discussions took place as part of a seminar about internet issues that included academics, industry officials and the high-level Vietnamese delegation, according to Paine. He said there was “a healthy dialogue” that focused mostly on how Vietnam can leverage the next stages of the digital revolution.
But he said there was no discussion of content restrictions.
The Vietnamese government did not respond to a request from Reuters for comment for this article.
Political activists in Vietnam rely on social media to rally support, and the new cyber law comes on the heels of an April letter from more than 50 rights groups and activists to Facebook Chief Executive Mark Zuckerberg accusing the company of working too closely with the Vietnamese government to stifle dissent.
Facebook and Google say they have to abide by local laws in the countries where they operate.
Facebook’s latest “transparency report,” released Tuesday, shows that in the second half of last year, the company began blocking content in Vietnam for violations of local law for the first time. The company reported 22 such instances — though it said they were prompted by “private reports of defamation” rather than direct government requests.
Google last year also blocked YouTube videos at the request of the government for the first time. Updated figures released Friday show the company was asked to remove more than 6500 videos in 2017, mostly for criticizing the government, and that it complied with a majority of the requests.
The transparency reports do show that the companies don’t automatically do the bidding of the government. Facebook said it had received 12 government requests for Facebook user account data in 2017 and complied with only 4 of them, all of which were “emergency” requests. The company defines an emergency as involving “imminent risk of serious physical injury or death.”
In cases where content is alleged to violate local law, both companies say takedown requests are subject to legal review, and when they comply the material is only blocked locally.
Direct government censorship requests don’t tell the whole story though.
Facebook also removes content and blocks accounts for violating its own global “community standards,” which bar material and behaviours ranging from posting pornography to hate speech and inciting violence.
“The first thing we do when a government tells us about content that violates laws is we look at whether it violates our standards,” said Monika Bickert, Facebook’s vice president of global policy management. The company this week began providing data on community standards violations but does not break it down by country.
“My account was blocked for 8 months,” said Le Van Dung, an independent journalist in Vietnam who signed the letter to Zuckerberg. “I sent letters to Facebook management for months but there’s only an automatic reply saying they have completed your request.”
His account was restored last month, the day after the appeal to Zuckerberg was sent, he said.
Facebook said Dung’s account was correctly removed for violating community standards provisions barring “spam” activities and was restored by mistake. Dung denies engaging in spam. He did, though, have more than one account. Multiple accounts are not allowed on Facebook and fall within the company’s definition of spam behaviour.
This file photo taken on November 20, 2017 shows shows logos of US technology company Google displayed on computer screens. (AFP/Loic Venance )
Tightening the screws
Vietnam has had tough internet regulations in place since 2013. They ban any postings that are anti-government, harm national security, cause “hatred and conflicts” or “hurt the prestige of organizations and individuals.”
The rules also ban social media users who “spread fake or untruthful information.”
New rules implemented in 2017 tightened the screws further. One turning point, according to Yee Chung Seck, an attorney in the Ho Chi Minh City office of the international law firm Baker McKenzie, was an April 2017 meeting convened by the government to discuss a range of Internet ills including disinformation, hate speech and bullying.
That came just after the government called on all companies doing business in the country to stop advertising on YouTube, Facebook and other social media until they found a way to halt the publication of “toxic” anti-government information.
Yet another decree implemented last month stated that social media platforms had to remove illegal content within three hours of it being reported by the government, though Paine said the rule applies only to domestic companies.
Still, Facebook and Google don’t seem to be under any imminent threat given how deeply they have penetrated into Vietnam society.
About 55 million of Vietnam’s 96 million people are regular social media users, according to research by Simon Kemp, a digital media consultant based in Singapore.
Facebook, YouTube and Google Search are far and away the most popular internet destinations, Kemp’s data shows. Facebook is also the most popular platform for online shopping in Vietnam.
And the government is eager to nurture the country’s digital economy: smartphones and all that they enable, especially e-commerce and online banking, are transforming economies across Asia, and no one wants to be left behind.
“They love that part of the story,” said Chung.
But the government also wants more control, including local data storage and local corporate offices — a provision company officials privately fear is designed to allow the government to intimidate companies by exposing individuals to arrest.
Both Facebook and Google serve Vietnam from their regional headquarters in Singapore.
The new law also gives more power to Vietnam’s Ministry of Public Security, which is tasked with crushing dissent in the communist-ruled country.
Facebook said it expected the new rules would require it to restrict more content. Google declined to comment.
Long jail terms
For the rights activists, there appears to be little hope of relief.
For example, just this month, a Facebook user in Vietnam was sentenced to four-and-a-half years in jail for posts which “distorted the political situation,” according to a statement posted on an official Communist Party website.
Still, Facebook remains an important tool for activists in Vietnam — a country where government criticism is rarely tolerated and the battle between the authorities and dissidents is a game of cat-and-mouse.
“Sometimes we use Facebook to distract authorities, like we pretend to discuss an important meeting, which obviously won’t happen,” activist Nguyen Lan Thang said. “Then we watch from afar and laugh as they surround our fake meeting spot,” Thang added.
Fintech’s influence is growing around the globe. According to PricewaterhouseCoopers, fintech startups attracted more than $40 billion in investments during the past four years, and legacy institutions are warming up to partnerships with agile, digital-first companies. The Asia-Pacific region saw nearly $15 billion in fintech investments between January 2016 and February 2017 alone. Needless to say, the opportunity in fintech is real–and Vietnam is getting in on it.
Sky’s the limit
According to a report on Forbes, Vietnam’s fintech market hit $4.4 billion in 2017, and it will reach $7.8 billion by 2020 , according to research from Solidiance, an APAC-focused consulting firm. In a recently published report, “Unlocking Vietnam’s Fintech Growth Potential,” Solidiance attributes the uptick to several factors, including high internet and smartphone penetration rates in urban centers, increased popularity of e-wallets, rising income and consumption, and a growing e-commerce sector.
The company also credits the Vietnamese government with creating an “increasingly supportive regulatory framework” via the creation of the Fintech Steering Committee and other measures. If the government is successful in its plan to reach 70% banking penetration within the next two years, that could further accelerate the fintech market, where startups are already creating solutions such as lifestyle banking services and a range of mobile wallet and digital payments solutions.
Michael Sieburg, associate partner at Solidiance, says that much will depend on the state’s movements in the next few years. “It’s important to acknowledge the development of the Fintech Steering Committee by the State Bank of Vietnam. This is an important move and illustrates the government’s serious approach to developing a framework that can guide the industry forward,” he says. “But one key issue to address will be the speed at which new products and services can receive legal guidance so they can operate with predictability and decrease compliance risk.”
He notes that lengthy approval times for licenses can hinder innovation and impede Vietnam’s emergence as a fintech leader. “Finding that balance between encouraging innovation while protecting the public interest will be key,” Sieburg says.
Push for digital
Currently, digital payment solutions comprise 89% of the fintech market here, according to Solidiance. But the company predicts that the personal and corporate finance sectors will grow by 31.2% and 35.9%, respectively, by 2025. That growth will be driven in part by the government’s push to move away from cash-based transactions. Last year, the state announced a plan to reduce cash transactions in shopping malls, grocery stores, and distributors to less than 10% by 2020.
Digital payments currently comprise the lion’s share — 89% — of Vietnam’s fintech market. Photo: HOANG DINH NAM/AFP/Getty Images
Before that can happen, Vietnam’s financial inclusion stats will need to increase. As of 2014, only 31% of adults held formal transaction accounts, according to the World Bank. There are several reasons for this, including high costs, prohibitive documentation requirements, a lack of financial services in close proximity to consumers, and skepticism of the financial sector.
Mobile a catalyst
Sieburg says the financial inclusion process will be helped along by the country’s high smartphone penetration rate. As of 2017, 84% of mobile phone users are on smartphones. Digital payment apps can help draw in consumers who traditionally lacked access to formal banking systems, paving the way toward a cashless–or less cash-dependent–society. ” Digital payments could transform not only the retail market and bill payment but also payment for public services as well government-to-people payments , currently a challenge in some rural areas where banking sector penetration is less developed,” Sieburg says.
There’s a great deal of work to be done if Vietnam is to fulfill its fintech ambitions, but Sieburg predicts big things in the country’s future. ” In the next decade, Vietnam will emerge as a regional leader in developing innovative fintech solutions ,” he says. “There is so much energy here. …With a population eager to adopt technology and a vibrant, young, tech-smart population propelling innovation, I’m excited about what lies ahead here.”
From the hustling startup community to innovation initiatives within traditional organizations, Sieburg sees signs of real growth. Coupled with an increasingly supportive regulatory ecosystem, there’s good reason to think Vietnam’s fintech sector is one to watch.
A plane about to take off from Da Nang Airport stopped on the tarmac and headed back to the terminal after a pregnant woman fell ill on-board.
The pilot took the decision to halt the plane which was heading to HCM City after a passenger, a Czech woman, feared she was suffering a miscarriage moments before take-off.
She was flying on Wednesday morning onboard Jetstar Pacific flight BL581 along with 150 other passengers.
Around 8am she suffered a colporrhagia, a form of bleeding, and was worried she may have miscarried.
After the plane came to a halt, the woman, who has not been named, was rushed to the Hoan My-Da Nang Hospital nearby for treatment.
Although she is likely to remain in hospital for several days, the woman and her unborn child are both in a healthy condition.
The flight eventually took off around 9.45am.
It’s not the first time a Jetstar passenger has got into medical difficulties on one of their planes.
Two years ago, while on a flight from HCM City to Da Nang, a woman went into labour at 10,000 metres. Thankfully English doctor Fiona Sutton was onboard and helped deliver the baby who was nicknamed Jetstar.
In 2011 an airhostess helped a woman give birth while on a flight from HCM City to Vinh City in Nghe An Province.
And in 2015, a Canadian national on a flight from Hanoi to HCM City was saved after suffering a stroke 20 minutes after the aircraft left Noi Bai Airport.
Also in 2015, an airhostess of the airline saved a child who had a candy stuck in her throat.
