The partnership between VinGroup and Cornell to establish a world-class university in Vietnam has many challenges to overcome, starting with gaining the trust of local students and parents, argues Matthew D. Edward
According to a report on timeshighereducation.com by Matthew D. Edward, for Vietnamese, the “Made in Vietnam” stamp holds little cachet. That goes double for higher education as the country’s stretched-thin universities struggle with talent shortages – a minority of lecturers hold PhDs and few publish research in international outlets – and decaying facilities.
Stop a random Vietnamese parent on the street and ask where they want their children to attend university and few, if any, will name a specific institution. The answer instead will be a shotgun scattering of countries and cities, listed in no particular order: Canada, the US, Australia, the UK, Boston, San Francisco, Paris, London, Singapore.
Anywhere but here.
That could be a problem for Vietnam’s newest home-grown university conglomerate of VinGroup and Cornell. The two recently partnered to build the country’s first “world-class” university in Hanoi by 2020 – a tall order, but not unrealistic given the company’s resources and drive to put Vietnam on the higher education map. It remains a question, however, whether families will willingly put up thousands of dollars for the educational equivalent of an electronics box that reads “Designed in New York” and “Assembled in Vietnam” on the back.
Cornell University’s SC Johnson College of Business, which inked the consulting deal with VinGroup earlier this year, will provide for curriculum design, faculty recruitment and administrative services set-up and advising. In an interview for another publication, a representative repeatedly stressed to me that the new university was not an overseas branch campus or an extension of the Ivy League school. The new VinUniversity, as VinGroup plans to call it, will be 100 per cent locally owned and managed.
Vietnamese parents heavily influence (read: “make”) their children’s higher education decisions, down to which major to pursue. The new university will need to work hard to assure parents that their investment will pay off. Specifically, VinUniversity will need to grapple with the following issues:
Vietnamese consumers have a stubborn aversion to anything made, and sometimes even just sold, in the country
My Vietnamese mother-in-law insists that I bring back several large boxes of name-brand pain relievers from the US whenever I visit. She’s convinced that the locally made and packaged stuff, despite being from the same brand, is “not as good” as what American consumers get. And this quirk is not a rare one. Over and over, I see Vietnamese asking relatives to shuttle home electronics, food, vitamins and other products readily available here for similar prices, and often from the same chain stores.
VinUniversity will cost significantly more than a box of vitamins. Cornell wants to stay in the background and let locals drive the institution, but I fail to see how VinGroup can brand the university without leaning heavily on the international partnership. Just the fact that “real” Cornell faculty are not expected to teach courses (Cornell will handle faculty hiring, but these lecturers will be VinUniversity employees) could make convincing parents all the more difficult.
What will a VinUniversity degree be worth?
Families will be leery of an unproven degree programme, especially one without an overseas parent institution to back it up. VinUniversity will need to provide evidence that it can forge the industry partnerships needed to get students internships and jobs, and it will have to show that foreign universities will accept its degrees as valid graduate school entry tickets. Cornell never told me what, if any, accreditation plans are on the table, but VinUniversity will need external validation before families jump in whole-heartedly.
VinUniversity needs to differentiate itself on academics, student life and graduate outcomes without confusing parents
Fulbright University Vietnam is launching an ambitious programme, also by 2020, to provide problem-based learning education: students will work with advisers to develop a set of questions to answer during their studies and will answer them. Will Vietnamese parents understand this? In a country where families choose majors based on specific jobs and salaries, I’m sceptical that this idea will sell. RMIT University Vietnam, meanwhile, offers a more standard array of majors in business, engineering and graphic arts, which has played well with the local market.
As a local institution, VinUniversity should be better able to navigate Vietnam’s complex, sometimes capricious, bureaucracy. Foreign institutions, for example, are forbidden from offering journalism courses; VinUniversity presumably will retain more control over majors and courses. The university will need to take advantage of this without allowing Cornell to produce a curriculum that is too innovative and unrecognisable to parents, many of whom will lack degrees themselves.
Getting over the “Made in Vietnam” hurdle will take careful faculty recruitment, commitments from overseas universities that graduate schools will be open to VinUniversity degree holders, and, likely, some heavy discounting for the initial cohort willing to take the risk. It also, unfortunately, might require VinUniversity to downplay its home-grown roots at times.
A home-grown, internationally ranked university could finally provide Vietnamese students with a local education just as well regarded as an international degree earned here or abroad. VinGroup’s plan to build Vietnam’s first internationally recognisable institution is a laudable one, but it remains to be seen whether “Made in Vietnam” can make it in Vietnam.
By Matthew D. Edward
Matthew D. Edward is the learning design coordinator for RMIT University Vietnam and a former journalism lecturer at Vietnam National University.
The partnership between VinGroup and Cornell to establish a world-class university in Vietnam has many challenges to overcome, starting with gaining the trust of local students and parents, argues Matthew D. Edward
For Vietnamese, the “Made in Vietnam” stamp holds little cachet. That goes double for higher education as the country’s stretched-thin universities struggle with talent shortages – a minority of lecturers hold PhDs and few publish research in international outlets – and decaying facilities.
Stop a random Vietnamese parent on the street and ask where they want their children to attend university and few, if any, will name a specific institution. The answer instead will be a shotgun scattering of countries and cities, listed in no particular order: Canada, the US, Australia, the UK, Boston, San Francisco, Paris, London, Singapore.
Anywhere but here.
That could be a problem for Vietnam’s newest home-grown university conglomerate of VinGroup and Cornell. The two recently partnered to build the country’s first “world-class” university in Hanoi by 2020 – a tall order, but not unrealistic given the company’s resources and drive to put Vietnam on the higher education map. It remains a question, however, whether families will willingly put up thousands of dollars for the educational equivalent of an electronics box that reads “Designed in New York” and “Assembled in Vietnam” on the back.
Cornell University’s SC Johnson College of Business, which inked the consulting deal with VinGroup earlier this year, will provide for curriculum design, faculty recruitment and administrative services set-up and advising. In an interview for another publication, a representative repeatedly stressed to me that the new university was not an overseas branch campus or an extension of the Ivy League school. The new VinUniversity, as VinGroup plans to call it, will be 100 per cent locally owned and managed.
Vietnamese parents heavily influence (read: “make”) their children’s higher education decisions, down to which major to pursue. The new university will need to work hard to assure parents that their investment will pay off. Specifically, VinUniversity will need to grapple with the following issues:
Vietnamese consumers have a stubborn aversion to anything made, and sometimes even just sold, in the country
My Vietnamese mother-in-law insists that I bring back several large boxes of name-brand pain relievers from the US whenever I visit. She’s convinced that the locally made and packaged stuff, despite being from the same brand, is “not as good” as what American consumers get. And this quirk is not a rare one. Over and over, I see Vietnamese asking relatives to shuttle home electronics, food, vitamins and other products readily available here for similar prices, and often from the same chain stores.
VinUniversity will cost significantly more than a box of vitamins. Cornell wants to stay in the background and let locals drive the institution, but I fail to see how VinGroup can brand the university without leaning heavily on the international partnership. Just the fact that “real” Cornell faculty are not expected to teach courses (Cornell will handle faculty hiring, but these lecturers will be VinUniversity employees) could make convincing parents all the more difficult.
What will a VinUniversity degree be worth?
Families will be leery of an unproven degree programme, especially one without an overseas parent institution to back it up. VinUniversity will need to provide evidence that it can forge the industry partnerships needed to get students internships and jobs, and it will have to show that foreign universities will accept its degrees as valid graduate school entry tickets. Cornell never told me what, if any, accreditation plans are on the table, but VinUniversity will need external validation before families jump in whole-heartedly.
VinUniversity needs to differentiate itself on academics, student life and graduate outcomes without confusing parents
Fulbright University Vietnam is launching an ambitious programme, also by 2020, to provide problem-based learning education: students will work with advisers to develop a set of questions to answer during their studies and will answer them. Will Vietnamese parents understand this? In a country where families choose majors based on specific jobs and salaries, I’m sceptical that this idea will sell. RMIT University Vietnam, meanwhile, offers a more standard array of majors in business, engineering and graphic arts, which has played well with the local market.
As a local institution, VinUniversity should be better able to navigate Vietnam’s complex, sometimes capricious, bureaucracy. Foreign institutions, for example, are forbidden from offering journalism courses; VinUniversity presumably will retain more control over majors and courses. The university will need to take advantage of this without allowing Cornell to produce a curriculum that is too innovative and unrecognisable to parents, many of whom will lack degrees themselves.
Getting over the “Made in Vietnam” hurdle will take careful faculty recruitment, commitments from overseas universities that graduate schools will be open to VinUniversity degree holders, and, likely, some heavy discounting for the initial cohort willing to take the risk. It also, unfortunately, might require VinUniversity to downplay its home-grown roots at times.
A home-grown, internationally ranked university could finally provide Vietnamese students with a local education just as well regarded as an international degree earned here or abroad. VinGroup’s plan to build Vietnam’s first internationally recognisable institution is a laudable one, but it remains to be seen whether “Made in Vietnam” can make it in Vietnam.
Matthew D. Edward is the learning design coordinator for RMIT University Vietnam and a former journalism lecturer at Vietnam National University.
Vietnam arrests oil execs as anti-graft sweep broadens
Vietnam arrested the chairman and chief accountant of a leading state-run oil refining firm on Thursday (May 10) for alleged abuse of power and property appropriation, as the government forges ahead with its massive anti-graft sweep.
— Channel NewsAsia
Many banks yet to shift to ATM chip cards
Most ATM domestic card holders still have to wait until 2020 to be able to use chip cards instead of magnetic stripe cards as currently despite growing card information theft.
— The Hanoi Times
Nippon Sheet Glass revives Vietnam plant for solar glass
Nippon Sheet Glass will invest around 40 billion yen ($365 million) to expand production of solar glass, as growing demand for renewable energy trickles down to Japan’s material makers, whose technology is crucial for high-performance panels.
— Nikkei Asian Review
Experts want strong tobacco tax hike
The Ministry of Finance has proposed an additional special consumption tax of VND1,000 for each pack of cigarettes on top of the current special consumption tax rate of 70%, but experts said this extra amount is too small to discourage smoking in Vietnam.
— VietnamNet Bridge
SCIC to sell stakes in 121 firms for after-tax profit
The State Capital Investment Corporation (SCIC) said it would offload capital in 121 businesses in 2018 with a view to making after-tax profit of 5.4 trillion VND (237.8 million USD), a 17 percent year-on-year decrease.
— Nhan Dan Online
Vietnamese rice prices soar to near 4-year high
Export prices for rice surged to a near four-year high in Vietnam this week due to strong demand, while slow buying interest put pressure on prices of Indian rice.
— Bangkok Post
JICA urges Vietnam to address late payment for ODA-funded projects
Chief Representative of the Japan International Cooperation Agency (JICA) Vietnam Office Tetsuo Konaka has urged the Government of Vietnam to continue scrutinizing the process of allocating funds for official development assistance (ODA) projects.
— VietnamPlus
Changing face of VN hospitality
The fast-changing hospitality industry is offering many opportunities for developers to expand the number of rooms and market their properties to future new categories of guests like millennials, according to hospitality experts.
— Bizhub
Public investment capital disbursement at slowest pace
The disbursement for public investment projects has been moving at the slowest pace with only VND65 trillion (US$2.85 billion) in the first four months of this year, equal to 16.27 percent of the plan assigned by National Assembly.
— The Hanoi Times
Nearly VND3.5 trillion raised from government bond auction
The State Treasury raised VND3.474 trillion (approximately US$153 million) from an auction of government bonds on May 9, the Hanoi Stock Exchange has announced.
— Nhan Dan Online
CPTPP likely to increase garment exports to Australia
Viet Nam’s turnover from textiles and garment exports to Australia is predicted to reach a double-digit growth after the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
— Bizhub
Can ‘Made in Vietnam’ degrees make it in Vietnam?
The partnership between VinGroup and Cornell to establish a world-class university in Vietnam has many challenges to overcome, starting with gaining the trust of local students and parents, argues Matthew D. Edward.
— Vietnam Insider/ Times Higher Education
With VTA barrier lifted, cars seen arriving in Vietnam in droves
Imports of completely-built-up (CBU) cars to Vietnam will most likely take a quantum leap in months to come as authorities in some Asian and European countries now issue Vehicle Type Approval (VTA) certificates for car importers in Vietnam.
— VietnamNet Bridge
European farm produce seek ways to reach Vietnamese consumers
The European agriculture producers are expecting the European Union-Vietnam Free Trade Agreement (EVFTA) to take effect soon as it will pave the way for their agricultural products, including fruits, meat and dairy, to enter the Southeast Asian market with a population of 93 million.
— VietnamPlus
Widespread money outflow triggers tumble of indexes
Red coloured the stock market on May 10 when a money outflow was recorded in all groups of shares, leading to a tumble of indexes on the two main bourses.
— VietnamPlus
Thai firms eye business opportunities
More than 210 Thai enterprises are showcasing their products and services at the Top Thai Brands expo which opened yesterday in HCM City.
— Viet Nam News
JC&C joins the race for Vinamilk
Singapore’s largest automotive group, Jardine Cycle & Carriage Limited Company (JC&C), announced intentions to take up the competition with F&N Dairy Investment Pte., Ltd. for a stake in Vietnam Dairy Products JSC (Vinamilk) by registering to buy an additional 14.5 million shares through its Platinum Victory Pte., Ltd. investment fund.
— VietnamNet Bridge
Most Southeast Asian stock markets fell on Thursday, with Vietnam sliding 2.7% weighed down by lenders, while Philippines shares ended marginally higher after data showed first-quarter economic growth was in line with expectations.
Reuters reports, the Philippines economy grew 6.8% in the first quarter, matching expectations and supporting optimism the government is on track to meet its growth target.
After market hours, the Philippine central bank raised benchmark interest rate which has remained unchanged in over three years.
“Philippines now has (by far) the steepest 2-year/10-year spread in emerging Asia. With inflation accelerating, tightening policy now could allay overheating concerns,” DBS Group Research said in a note.
The Bangko Sentral ng Pilipinas (BSP) raised the key interest rate by 25 basis points to 3.25% after market close on Thursday.
The Philippine index ended 0.2% higher led by lenders such as BDO Unibank Inc, up 2.1% and Metropolitan Bank & Trust’s, up 2.6%.
Vietnamese stocks extended losses for a third session, with financials leading the decline.
Vietcombank fell 5% and Bank for Investment and Development of Vietnam shed 7%.
Markets in Malaysia were closed for special public holidays, following a stunning defeat of the incumbent Prime Minister Najib Razak by the Pakatan Harapan party led by former mentor Mahathir Mohamad.
A fall in the Malaysian ringgit in offshore trading and a rise in the cost of insuring the country’s debt showed evidence of apprehension among investors.
The central bank, however, proceeded with a policy meeting and kept its key interest rate unchanged.
Mizuho Bank said the holidays were “buying time for Pakatan Harapan lawmakers to reassure investors that any change would be gradual and carefully managed”.
The country’s national stock exchange, Bursa Malaysia, said trading would resume on Monday.
Indonesian markets were closed for a local holiday. The central bank had said on Wednesday it may raise its benchmark interest rate in a move to support the rupiah which has been wallowing at 2½-year lows.
Bank Indonesia, which has held the interest rate steady since cutting it by 25 basis points in September, will hold its monthly policy meeting next week.
SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market
Current
Previous close
% move
Singapore
3537.59
3548.54
-0.31
Bangkok
1746.89
1756.9
-0.57
Manila
7571
7555.27
0.21
Ho Chi Minh
1028.87
1056.97
-2.66
Change on year
Market
Current
End 2017
% move
Singapore
3537.59
3402.92
3.96
Bangkok
1746.89
1753.71
-0.39
Manila
7571
8558.42
-11.54
Ho Chi Minh
1028.87
984.24
4.53
(Reporting by Karthika Suresh Namboothiri; Editing by Vyas Mohan)
In the face of potential US tariffs on Chinese-made shoes, numerous world-famous shoe and handbag manufacturers are mulling over shifting sourcing to Vietnam.
According to newswire Reuters, at the annual shareholders’ meeting organised on May 9, Adidas CEO Kasper Rorsted stated that the company will continue shifting its sourcing of footwear from China to Vietnam. However, China is still an important procurement market, irrespective of trade duties.
Kasper Rorsted added that in 2017, factories in Vietnam produced 44 per cent of Adidas footwear, 13 per cent more than the 31 per cent in 2012. Meanwhile, Chinese factories made up 19 per cent of Adidas products, down 11 per cent from 2012.
Last month German rival Puma (which makes about a third of its products in China) said that it is working on contingency plans to move some production from China to other Asian markets if US tariffs are imposed.
Besides, Fast Retailing Co., Ltd., the parent company of Uniqlo, has moved operations from China to Southeast Asia, including Vietnam, due to increasing labour expenses. At present, the company only needs to pay half as much on labour as in China.
Previously, in 2014, there has already been a wave of global shoe and handbag manufacturers transferring the bulk of their orders from China to Vietnam.
Notably, according to the Vietnam Leather and Footwear Association (LEFASO), in the first half of 2014, fashion brands like Nike, Adidas, and Puma transferred 25 per cent more orders from China and Bangladesh to Vietnam than in the same period last year.
A number of companies that had only ordered high-end handbags from China, such as Lancaster and Sequoia Paris, also expressed interest in Vietnam as a means of reducing the potential risk from China—which is still considered the world’s largest factory.
According to statistics published early this year by World Footwear Magazine, in 2017, Vietnam continued to rank second among the ten largest footwear exporters, with 1.02 billion pairs of shoes, equivalent to 7.4 per cent of the global footwear supply.
Footwear is one of Vietnam’s key export items, ranking 4th in export turnover. At present, Vietnamese footwear products are exported to 45 markets around the world. According to data from the General Statistics Office, in 2017, the export turnover of footwear reached $14.6 billion, up 12.6 per cent over 2016. The figure is expected to increase to $20 billion this year.
The Vietnamese leather and footwear industry shows great potential for development. Therefore, the country has been optimistic about the export turnover target of $24-26 billion by 2020, $35-38 billion in 2025, and $ 50-60 billion by 2035.
CapitalLand on Wednesday said it is engaging the local community through participatory design to co-develop a kindergarten, CapitaLand Le Xa Hope Kindergarten, in Vietnam.
According to a report by businesstimes, CapitaLand Le Xa Hope Kindergarten is the 28th school in the network of CapitaLand Hope Schools in China and Vietnam, and the third in Vietnam. It is supported by CapitaLand’s philanthropic arm, CapitaLand Hope Foundation (CHF), which contributed over S$215,000 to the construction and enhancement of the school with international non-government organisation, World Vision, and the Tien Lu District1 government.
With CHF’s support, the two-storey kindergarten now has 10 classrooms, a teachers’ room, a meeting room and toilets, and the children will also get to enjoy a new playscape, courtyard, sensory wall and murals. Since phase one of the school was completed in late 2017, student enrolment rate at the kindergarten has increased 10 per cent to 73 per cent.
With the aim to create a more inclusive school environment, CapitaLand’s product and development specialists joined faculty, researchers and students from the Singapore University of Technology and Design (SUTD) and Vietnam’s National University of Civil Engineering (NUCE), to research the educational needs of Le Xa commune, the local climate and culture, for the school’s second phase of development.
These research findings were applied in the participatory design workshop organised by CapitaLand with SUTD and NUCE in January 2018. At the workshop, new ideas were generated together with the local community, students’ parents and teachers. After multiple iterations, the design prototypes were finally co-created. CapitaLand also brought together about 80 staff volunteers from markets such as China, Malaysia, the Philippines, Singapore, Thailand and Vietnam in early May to volunteer at the kindergarten.
After 12 accounts have been compromised and withdrawn money from in late April, Agribank has just announced to increase service fees, aiming to upgrade its banking system, especially at ATM machines.
Security remains a primary concern at Agribank, especially after 12 accounts were hacked to withdraw money at late night on April 25, causing damages of VND10-24 million ($440-1,060) per account. This issue is probably one of the factors that lead to Agribank’s decision to increase service fees.
Since May 12, Vietnam Bank for Agriculture and Rural Development (Agribank) will increase several banking service fees, including ATM transactions from VND1,000 to VND1,650 (including VAT) per time. Transaction fees via E-Mobile Banking will increase by 0.05 per cent of the transferred money, with a minimum of VND8,000.
According to newswire Vnexpress, a leader of Agribank said that while many banks increased service fees before, Agribank’s current increasing service fees is also justified. The bank has charged VND1,000-1,100 (including VAT) per transaction via ATM machines for a long time, while the State Bank of Vietnam charges VND3,300 for similar services.
“This is just a little adjustment, not meant to do business, but to recover part of our expenses to upgrade and invest in a large number of ATM machines,” added the leader.
Not only Agribank, but also many banks, including Vietcombank, VIB, Eximbank, and others, previously increased their service fees.
Since early March this year, Vietcombank has been charging VND8,800 to VND11,000 (including VAT) for SMS Banking per account per month. In addition, transferring money within the bank via Vietcombank’s Mobile Banking application now comes at a charge, unlike before.
In Vietnam, banking deposit has been considered as a safe investment with good profitability. However, many claims made by depositors about disappearing deposit balance concern customers.
Still go with bank
To people, bank deposit is still a good investment providing them with annual interest income and it’s nice to have some extra income for spending. Customer’s demand for deposit product has been huge.
After a couple of customers recently claim losing their money up to billion dong when depositing at banks, a number of customer and deposit volume has gone down. A survey done at a few banks has shown that deposit volume has drop down 10~15%.
However, financial experts see this as a normal consequence when banks went through troubles with customers. They also say such trend will not extend for long because banks are making effort to fix and bank deposit is still the safest investment product.
Ms. Luu Thi Nhu Y (35 years old, district 1) says: “I still trust the banking system because they keep money safe while paying interest. To sleep at night my wise is to go with banks having long-history and good reputation. Bank staffs are enthusiastic to help, but we-customers need to proactively manage our account”.
After 40 years depositing at bank, Ms. Dao Thi Hai (62 years old, Tan Phu district) says: “I have always trusted our family money with the bank. I think every bank has it’s own issues. The most important thing is a bank can look into the problem and improve it’s management. If a bank is trying to get better, why not using it?”
A customer in Eximbank – Mr. Tran Quoc Khanh (Director of KAT Media, district 1) says: “I have both corporate account and individual account with Eximbank. I have been using the bank for 4 years for bank transfer, credit card, savings, loan, etc. Media has run news about deposit claims to Eximbank, but I am confident in my caution when making transactions with the bank and therefore have kept using it. Furthermore, I have seen Eximbank to take actions in improving their supervision of deposit activities”
Enhance supervision
To assure customers, many banks e.g. Vietcombank, Maritimebank, Sacombank, etc, have launched the service allowing customers to mobile track their accounts. Customers will receive notice updating account movement and get to know if the balance on their saving book matches to the bank’s data.
Eximbank right after the claims has implemented several solutions to enhance risk management and to secure customer’s deposits. Among the solutions is to offer biometric verification when individuals applying for power of attorney; to kick-off brand director rotation; to deter regulation violation by introducing sanction on violator; to introduce IB, MB, SMS banking, etc. to customer for account tracking.
Eximbank set 2018 total asset target at 178 trillion (+19%) and deposit balance at 148 trillion (+26%), and profit at 1.600 billion dong, 1.5 times 2017 profit.
Eximbank’s representative shares: “In 2018, we will focus on major projects of technology and re-organization, to set-up foundation for business acceleration in coming years. At the same time, Eximbank will concentrate on solving the NPL and increase fund available for business”.
Nguyen Thi Kim Tuyen during an online lesson uploaded to the YouTube channel of MST English
A Hanoi-based teacher who was fined and banned from teaching for insulting a student by calling him “pig brain” could receive more punishment as the municipal chairman has requested that the headline-making case be examined further.
The Hanoi education department should coordinate with relevant agencies to look into the case involving Nguyen Thi Kim Tuyen and the MST English center, and impose stern punishment for any violations found, according to Nguyen Duc Chung, chairman of the municipal administration.
The education department was also required to report the results to the administration by May 15, Chung said in a directive on Tuesday.
Tuyen was filmed engaging in an intense argument with one of the learners inside her classroom, operated by MST English, during which she called him “pig brain” and “pig face,” which means “extremely idiotic” in this context.
“No [English] center out there is capable of turning a pig like you into a human,” she said in the video, which was uploaded on Facebook last weekend.
The incident started after Tuyen demanded that the student pay VND100,000 (US$4.4) as he had broken the center’s rules by not handing in homework on schedule.
However, the student refused to do so and called her a “fraud.”
The fine was listed among the “discipline of steel” applied at the center, and learners are required to sign a commitment to comply with such rules at the beginning of the course.
The inspectorate from the municipal education department has recently imposed a fineworth VND5 million ($220) upon Tuyen and required her to stop all teaching activities.
MST English, with three locations in Hanoi, was shut down for failing to obtain a license to operate as a foreign language training facility.
The MST Education System JSC, whose director is Tuyen, was also fined VND20 million ($880) for operating the center without permission from local authorities.
A place of breathtaking natural beauty and unique heritage, visitors to Vietnam can marvel at the picturesque Halong Bay, explore spectacular cave systems in the Phong Nha-Ke Bang National Park, see grand colonial mansions from the French era and many more! Vietnamese street food is another great draw, with its incredible subtleties and outstanding diversity.
However, Vietnam was the place where I encountered my first travel scam and it will always be etched in my memory. In fact, it was THE country that has inspired the creation of this site! Home to a sizeable bunch of shrewd scammers, almost everyone who has been here has met one. Read on to learn how to protect yourself!
A. TOURIST SPOTS/ACTIVITIES
1. Cyclos
Those three wheel bicycles/trishaws you see lining the streets at tourist attractions? Avoid them at all costs (just like with the tuk tuks in Thailand, Cambodia, Sri Lanka, etc). What they do is they will approach you and offer a ride where you can pay as much as you want, or not at all! Now, alarm bells would have begun ringing.
However, what they do next is brilliant. They will take out a notebook and show you all the positive reviews in it. You will find extremely detailed reviews praising the driver and the trip in different languages and in different handwriting. As someone who knows a few languages, I was able to verify a number of them.
The cyclo operator is also an extremely glib speaker. He is able to build rapport (this is easy, for instance, enquiring about your country and sharing some knowledge of it) and address any of your fears (such as allowing you to stop halfway if you wish). Once you get onto the cyclo, the driver will then attempt to build trust with you bit by bit.
End of the day, once all trust has been built, he will bring you somewhere secluded. Next, he fishes out a list of prices based on hours of service and demand payment. You pretty much have no choice but to pay.
However, it must be said that a cyclo experience can be an interesting one. To protect yourself, agree a clear price before hiring one and make sure that you stop at a place you know.
2. Overcharging and confusing currency
This is common around the world, but it is much more easily implemented here due to the large note denomination.
Overcharging can occur in many different forms, such as over conversion of currency, giving less change by rounding up/down, not giving any change by insisting on a tip, or even changing the fare once the service is completed!
Many places also quote in USD to make overcharging easier for them. This is done either by rounding up to USD (which is higher than the value in Vietnamese Dong) or by demanding payment in Dong while using an unacceptable exchange rate.
Also beware when a vendor tells you 10, it could mean 10 USD, 10,000 Dong or even something else! Besides this, always ensure that the fee is for everyone in the group and not for each individual.
For popular tourist markets such as Ben Thanh market, prices are also marked up a few HUNDRED times, more if you are a Caucasian.
Always clarify clearly the price to be paid, in what currency and if it’s for the whole group. And always check your change. Finally, at markets such as Ben Thanh Market, be ready to haggle or not buy!
3. Street vendors of all kind
There are some vendors who sell books in boxes at cheap prices. But alas, those books are photocopies! You would not know as these “books” are wrapped up. Some of those are also of low quality – errors in pages, etc.
Then, there are other vendors who will invite you to take a photo with them. Once taken, they will demand a fee, a tip, or a purchase of their products. Ignore, and you will be hounded until you pay.
For instance, we have the fruit ladies of Hanoi. They will offer to lend you a fruit basket and to take a photo of you. It’s difficult to escape if you have taken the bait as they work in groups. Something worse that might happen is that you get pickpocketed in the process.
Local market @ Bojan Mirovic
Also, you might come across fake beggars. Some examples are fake cripples, hungry babies who are actually asleep due to alcohol and people who fake sickness and weakness. Do not donate or you will be hounded as well.
Moving on to Sapa, we have the textile women who tries to guilt trip you. They accompany you on trips and share their life stories so as to build trust and rapport. At the end of it all, they ask that you buy handicrafts from them while crying.
Finally, avoid pesky photographers who offer to take photos of you. Firstly, they will take multiple photos and demand a much higher payment. Secondly, they will not deliver the photos to you as promised.
Essentially, avoid donating to beggars on the streets and avoid engaging the fruit ladies of Hanoi, textile women of Sapa and the fake “photographers”.
4. Unscrupulous tour companies
Helicopter tours of Halong Bay began operating this year. @courtesy Bell Flight
There are many of such black sheep in the industry (but it happens all over the world, e.g. in Australia, Morocco, etc).
For instance, some of them claim to provide snorkelling, island trips etc which they do, but only allow for a meagre amount of time . There are also many grey areas they could capitalize on such as allowing for overbooking of trips.
For boat trips, it is also important to buy return tickets rather than one way ones, as you might be exploited when you find no other means of return.
Check out online reviews of the tour companies and only commit to the reputable ones.
5. Restaurants that do not display prices
Also, be careful of those that list prices in USD. They might demand payment in Vietnamese Dong and use some unreasonably expensive exchange rate.
Avoid, but if you must try, do ask about the prices before ordering. If all you get are vague replies, that’s the sign to leave.
6. Overcharging by restaurants in other ways
Those nuts or fruits they serve you before the start of the meal? Reject them, as they cost an exorbitant amount.
For those who tend to stay long at restaurants, try to keep whatever you’ve ordered at your table be it empty plates or bottles. This is to collect evidence and prevent restaurants from overcharging you by asking you to pay for something that you did not order.
Check your restaurant bill carefully. Should you point out something that has been charged but not ordered, check the new bill again. Sometimes, they might not have changed the variables taxes on the bill.
Do some online research and eat only at reputable/legitimate places.
7. Shopping
Always inspect your goods after purchase, especially those that are wrapped, as they might be swapped (same scam in Hong Kong). The same goes for your change or if you were to change money at a money changer.
Also, note that a very common scam in Vietnam is that vendors will claim that something is free. Once you have used it (service, food, etc), payment will be demanded and you will be hounded until you pay.
Besides street vendors who peddle fake ware, there are many shops which sell fake stuff as well, such as silk and even war relics!
Buy only from reputable establishments, which you can find online or from your hotel.
Also always verify the item both before and after purchase.
8. The place is closed
A popular scam in Asia (Thailand, India, etc), someone (anyone!) might approach you and inform you that a place is closed.
They will then offer to bring you somewhere else where they can get commission.
Never trust an overly friendly stranger who approaches you on the street, especially one who can speak good English.
9. Karaoke/prostitution (illegal in Vietnam)
This is a simple scam, yet one that many inexperienced male tourists fall for.
At the karaoke, a male tourist might be approached by a hooker. Money is given to book a room but the hooker disappears. Next, the bill comes and the tourist is charged an obscene amount! If you refuse to pay, you will simply be beaten up by the mafia there.
As shared by a reader in the comments section below, even the hookers are a scam in themselves. Pretty girls are advertised on flyers, but when push comes to shove, they do not turn out to be as advertised.
Avoid such activities.
10. Massage scam
As generously shared by another reader, massage places in Hanoi are a big scam.
They advertise a low price for their services, but when the bill comes, you will find that you are charged for a ton of ancillary products, such as water!
Only check out reputable institutions by researching online or asking your hotel for a recommendation.
B. TRANSPORT
1. Motorbike rental
Motorbike rentals can get pretty tricky in Vietnam (especially in Nha Trang and Mui Ne). There is the standard scam, where the owner follows you, “steals” your bike back and then demand compensation. Another common one would be mechanical problems in the bike which the owner will demand a repair fee for.
Also, there are many fake Honda motorbikes around.
Rent your bike from a reputable place. Consider investing in your own lock and key as well as it can’t be “stolen” by the owner. Also test out the bike upon rental to identify any problems and sound out immediately.
It would be good to know your bike or to research the specs on the web before booking to prevent getting a fake Honda.
In Vietnam, you also require a Vietnamese driving permit. If you are caught without one, the motorbike can be impounded for a month and you would have to continue paying for the bike.
2. Motorbike taxi
A man riding a mini-motorbike in Hanoi’s street @ Yu Jason
Some motorbike “taxis” might approach you with an offer, which they claim is cheaper than normal taxis. Or they might say don’t worry about the fee, just go first and if you’re happy, you pay how much you want.
They might even say that there is no bus to the place that you want to go! That is usually nonsense. Some others use the “cyclos scam”, where they claim to bring you around for free but in actual fact, bring you to a secluded spot and demand a huge sum of money.
Do note that these people have no training or certification. This means that not only is your wallet at risk, but your life is at risk as well.
3. Taxis
There are taxis with tampered meters. There are also some who demand tips and some who claim to take shortcuts but are in fact longer routes (good to know the location).
Note that there are also fake Taxis in Vietnam (like in China)!
For those who arrange for taxi transport from the airport to your hotel, do be wary as well! There are operators who learn the details of these arranged pick ups and pose as the assigned driver from the hotel. They pick you up, call their accomplice and then claim that the hotel is full. They will then bring you to another hotel where they get commissions from.
Taxi meters are based on distances, not time. So if you see one jumping wildly even when you are stationary, you know it is a scam!
To prevent yourself from falling prey to those, only take cabs from Mai Linh (green taxi), Vinasun (white taxi) or Taxi Group. Also, never agree to a fixed fee, unless you have done your research and know the market rate.
The rough cost: 10,000 Dong to exit airport; 150,000 Dong to get to the main tourist area. If you realize that you are scammed, do not pay. Instead, take a photo of his ID and meter and threaten that you will report it to his taxi company.
4. Purchase of train tickets from private travel agents
These touts will approach you and claim that the mode of transport you taking is delayed. They then offer to help you get a new ticket. However, they will buy a cheaper ticket than the one you requested.
As most people do not know Vietnamese, they are unlikely to spot the difference. It is also pretty much impossible to demand a refund as by the time you realize the scam, you would have been on the train already.
There are also some who might offer to carry your luggage as the distance to the platform is rather far.
Reject the help of these touts no matter how official they look.
5. Purchase of train tickets online
Would you believe it.. There are even fake train websites in Vietnam! A good resource for train planning is Seat 61 (http://www.seat61.com/Vietnam.htm).
If possible, only get your tickets from your hotel or reputable travel agents.
6. Long haul buses
This is a common transport option for backpackers wishing to travel from the North to the South or vice versa. However, there are also many scams associated and it is important to only buy from reputable companies!
Besides booking a lower quality bus than you had paid for, some buses might even stop unexpectedly at night and force you to stay elsewhere. Lo and behold, there is only one hotel in the vicinity and the owner is more than ready to accept you.
Another version is that they stop at a petrol station and force you off. Coincidentally, someone at the petrol station will extort you to pay an amount to take a cab to somewhere to transfer to another bus.
Book through your hotel or a reputable travel agent.
7. Luggage fee
Sometimes, you might be asked to pay more because you have a larger or heavier bag by bus or train staff. It is pure nonsense, there is no such rule. Do not pay.
C. ACCOMMODATION
1. Trading on popular names
When any company in the travel industry becomes popular/famous in Vietnam, there will be new companies popping up with similar sounding names and many have been scammed in the process.
For instance, good companies that have been a victim of their success include (the real sites have been hyperlinked) ODC Travel, Handspan, Kangaroo Café. The most notorious of the lot would be the dozens of Sinh Cafes around the country – the real one is now called the Sinh Tourist (http://www.thesinhtourist.vn/)!
It is good to have done your research for reputable agents online, but still stay alert in spotting the fakes with subtle differences.
2. Fake hotel scam
In today’s online world, it is easy for unscrupulous hotels to create fake reviews. Some hotels also advertise low room fees online. However, when you arrive, they will claim that the low fees were for the standard rooms which have been fully booked. To book the higher end rooms, you have to pay a lot more.
Finally, as mentioned earlier, there are many copycats hotels which trade on popular names.
Stay at reputable ones. Also, to verify a hotel, check its location in addition to its name.
3. Hotel fee scam
Some hotels demand that you pay more (e.g. double) as the fee advertised was for one person and not for one room (usually double rooms). If your passport is held at the reception, your bargaining power is further reduced.
Besides this, some hotels might advertise certain facilities online, such as a fireplace or air conditioning. However, to use them in your room, they will demand additional fees!
Remember to ask for your passports once the hotel staff has inspected them upon your check in. Also clarify the fare to be paid, and if possible, do not pay everything upfront.
D. MISC
1. Pickpockets and snatch theft
As with places with crowds, pickpockets and snatch theft are common and one must always be alert and careful.
This is more common in Ho Chi Minh City, where the bag snatchers even have a name for themselves, which is the Saigon Cowboys. Watch out for child pickpockets as well!
Sometimes, pickpockets work with street touts. A street tout talks to and distracts you, while the pickpocket steals your valuables. Be wary in such situations and check your bag if you feel someone brush against you.
Do note that other cities such as Hanoi and Nha Trang face similar situations too.
If you want to avoid becoming a victim, it is best to keep your cash safe and secure. Only carry small amounts of cash around with you. Avoid carrying the purse or wallet in the back pocket. Also, use a spare wallet, money belt or anti-theft bag to further protect yourself from pickpockets.
Further, keep most of your valuables and passport in the hotel safe. Carry around a photocopy of your passport instead. Also, consider using hotel safety tools such as a hotel safe lock or door jammer to further strengthen the security of your hotel room.
Do consider checking out the articles on the Netherlands and Spain as well, where the real pros operate.
2. Hanoi shoe repair
This is a less common scam, though watch out if you are wearing worn out shoes!
For this scam, some guy approaches you out of nowhere and applies glue to your shoes. Next, he would take out a thread and tell you that your shoes are about to fall apart, which he can repair for $1.
If you didn’t realize, that glue is actually a solvent that dissolves stitches! Should you say yes, he would then proceed. However, the trouble does not end when the job is completed, as he will be demanding $10 or more!
Be alert and not let anyone apply anything to your shoes!
3. Drugs in Hue
If you are offered drugs, do NOT take them. You will be reported to the police and the “reporters” will be rewarded for tipping the police off. Firmly reject.
4. Invitation to a card game
This is a pretty common scam around the world, such as in Malaysia and Morocco.
Anyhow, the script is similar. Firstly, a friendly man approaches you, asks where you’re from and remarks that his relative will be going there to work or study!
In this context, rapport is easily built as it feels that you have found someone close in a land of strangers. There will be also be this urge to share more about your home country, which the scammer will tap on. He will invite you over to his house where you could share helpful advice over a meal. But upon reaching the house, lo and behold, the man’s sister/daughter is not there!
Instead, you find the man’s brother/uncle who will get you to play some card game such as blackjack or poker. You might also be taught some tricks so as to work together to cheat other visitors who will be coming soon. Regardless of the situation, you will lose. Here’s a fascinating recount of an experience with this scam.
Avoid engaging with an overly friendly local on the street, especially if he has a good command of English.
5. Internet cafes
Keyboard loggers, viruses, spywares and what have you are common in Internet cafes.
Do not do anything in there that can potentially expose your personal or financial data.
6. Paying excessively more when buying through agents
As kindly shared by one of our readers, Frank, he paid 290k VND for a SIM card through an agent at the airport. It was supposed to provide 30 days unlimited 3G access, but died after 5 days.
When he went down to the official store, that was when he realized that the plan he had purchased was a 90k VND plan.
Parents in Vietnam are on tenterhooks over the growing popularity of an Internet challenge known as Blue Whale, where ‘players’ are asked to complete a series of tasks, the final being suicide.
The ‘challenge’ is supposedly administered by an online curator over 50 days, during which the curator gives players daily tasks to accomplish and requires them to submit photographic evidence that they have completed each.
Communication between the curator and the participant is typically kept private.
Tasks increase in difficulty as the game proceeds, namely drawing a blue whale on paper, carving a blue whale on one’s arm with a knife, watching horror movies, killing an animal, and ultimately culminating with suicide.
A user plays the Blue Whale game on a mobile app. Photo: Dunya News
Blue Whale was first reported by Russian media in 2016.
Since then, hundreds of suicides suspected to have been inspired by the challenge have been reported in the U.S., Asia, Europe, and South America, according to CNN.
No case of suicide has been confirmed to be directly linked to the rumored challenge, and many experts suggest Blue Whale was originally a sensationalized hoax that led to imitative self-harming.
According to parents in Vietnam, the Internet challenge has emerged as a new obsession among the country’s youth who may engage in self-harm due to peer pressure.
Ngan Nguyen, a mother in Ho Chi Minh City, says her ten-year-old daughter knows everything about the game, including its origin, rules, and author.
“It turns out all her classmates in fourth grade know about this ‘game’ through the Internet,” Ngan said.
A Vietnamese girl films herself completing the Blue Whale challenge in this still photo taken from a video posted on video-sharing site YouTube
A quick search on popular social media platforms in Vietnam, including Facebook and Instagram, revealed that the Blue Whale game has become a topic of interest among children and teens looking for instructions on how to play the ‘game’ and complete its tasks.
Clips of Vietnamese children filming themselves completing the challenge and giving ‘tips’ to new players can also be found on social media sites like YouTube.
“Some friends taught me to break the rules by drawing a whale on my arm with a red pen, killing a mosquito, watching cartoons instead of horror movies, and jumping off a bed instead of a building to complete the challenge without actually hurting myself,” said Phuong Anh, a fifth grader in Ho Chi Minh City.
Anh said her classmates are crazy about the challenge and often compete to get the most views for YouTube videos of themselves completing the tasks.
“This trend is potentially dangerous because children are impressionable and often imitate others without thinking about the consequences,” commented Facebook user Ngoc Yen on a post by a worried parent.
Meanwhile, officials in the southern province of Tien Giang refuted rumors on Wednesday that students at a local secondary school were hurting themselves playing the Blue Whale game.
Rumors began in March that students at Cai Be Middle School in Cai Be District, Tien Giang, were cutting their own arms to complete a task in the challenge.
An investigation carried out by provincial authorities found that such rumors are completely unfounded, said Nguyen Van Nhiem, head of propaganda and education of Cai Be District.
Vietnam’s tea export dropped both volume and value in the first four months of 2018 despite price hike. Low quality and lack of internationally-known brand names remain the biggest barriers for Vietnamese tea to gain strong foothold in foreign markets.
Vietnam exported 34,000 tonnes of tea for 54 million USD during January – April, a decrease of 10.2 percent and 3.6 percent, respectively, from the same period of 2017.
Prices of exported tea in the first quarter averaged at 1,546 USD per tonne, up 7.5 percent year on year. The biggest buyers of Vietnamese tea during the reviewed period included Russia, Pakistan, Taiwan (China), Indonesia, the US, China and Malaysia.
Pakistan continued to be Vietnam’s largest tea importer in terms of turnover. The country purchased 4,060 tonnes or 16 percent of Vietnam’s total tea exports, for 8.45 million USD, down 28.9 percent in volume and 19.2 percent in value. The decline was a result of a stricter rule of Pakistan which requires an aflatoxin certificate for tea imports.
The similar situation happened to tea shipments to China and Taiwan where stricter regulations were also applied.
Pakistan was followed by Russia who imported over 4,170 tonnes of tea for 6.49 million USD, down 8.4 percent in volume but up 6.5 percent in value thanks to a 16.2 percent increase in tea prices that averaged 1,556 USD per tonne.
According to experts, lower demand might have played a part in the fall of tea exports but the biggest problems were that domestic exporters paid a little attention to improving the tea quality alongside an absence of Vietnamese tea brands known internationally.
Japan is among countries with large consumption of tea as it is not only good for health but it is part of a hundred-year tea culture in Japan.
This leaves huge potential for Vietnamese tea producers to unleash but it will be not easy.
Though Vietnamese tea has made inroads into Japanese market but it only accounts for about 0.5 percent of the market share. It is largely due to the fact that the Vietnamese tea has not satisfied the local consumer taste. Plus, the majority of the exports were in the raw form with lower quality and value.
Last year, Vietnam’s tea exports to the EU saw surges of 24.55 percent in volume and 40 percent in value with those to Germany posting the strongest growth, 82.9 percent in volume and 169 percent in value.
It is a positive signal for the tea industry in Vietnam, particularly since the 500-million-strong EU market comprises of a number of high-income economies where consumers want more than just low prices. Therefore, to boost exports to the EU, Vietnamese producers will need to shift focus on improving their products’ quality, design and convenience.
Big changes in key personnel have been among the hottest issues discussed at banks’ shareholders’ meetings this year.
Vu Van Tien has resigned from his post as chair of AB Bank as confirmed at the bank’s 2018 shareholders’ meeting held on April 25.
Tien is also the chair and CEO of Geleximco, chair of An Binh Securities and chair of Thang Long Cement JSC.
He left his position at AB Bank to be able to continue holding posts in other corporations.
The Credit Institution Law which took effect on January 15, 2018 stipulates that chairs and CEOs of credit institutions must not be chairs and members of board of management, CEOs, deputy CEOs, or have equivalent positions in other corporations at the same time.
This is why many high-ranking executives now have to choose to continue their posts either in banks or in other corporations.
Vo Quoc Thang left his hot seat at Kien Long Bank after five years to continue to be the chair of Dong Tam Group.
Meanwhile, to stay in the post of chair of Sacombank, Duong Cong Minh had to resign as the chair of four companies – Him Lam, Bao Long Sportswear, Xin Man Development and Lien Viet Securities.
Minh admitted that it was a difficult decision. “Honestly speaking, only at this moment am I sure I will devote myself to Sacombank. Previously, I did not know if I would stay or I would leave soon,” he told reporters on the sidelines of Sacombank shareholders’ meeting recently.
Do Quang Hien, who was chair of T&T Real Estate, also decided to leave the post to stay in SHBank. He said that 80-90 percent of his time was used to manage the bank.
Analysts said the banking system would see more bankers taking leave. The Law on Credit Institutions took effect three months ago, but there are still many people concurrently holding posts at banks and other businesses.
Nguyen Thi Nga, for example, is still chair of SeABank, chair of BRG Group and chair of a series of other companies, while Nguyen Thi Phuong Thao is the CEO of Vietjet Air and deputy chair of HDBank.
Nguyen Tri Hieu, a banking expert, said the regulation will help wipe out cross-ownership in financial institutions and allow bank managers to concentrate on certain business.
Hieu said state agencies need to take drastic measures to be sure that individuals leaving banks or companies would not continue hold control and have influence in other legal entities.
Kevin Snowball, Chief Executive Officer, PXP Vietnam Asset Management, reveals to Hubbis the size and scale of the Vietnam investment opportunity.
Vietnam represents a tremendous investment opportunity for investors across the board, according to Snowball. The country is the 15th largest in the world by population and has seen over a dramatic move up the value chain over the last five or six years, he adds.
“We have one of the fastest growing economies in the world at 6.8% last year, likely to be similar again this year,” he says. “We have a stable currency, and a trade surplus now, whereas a decade ago we had a trade deficit.”
According to Snowball, Vietnam is on a similar path to China, but probably 15 or 20 years behind it, where the country attracts foreign direct investment to modernise and industrialise. “Six years ago, the two major export earners for Vietnam were crude oil and garments and footwear, and there was no such thing as electronics on the export menu if you like,” he says.
But over the past six years there’s been a massive move into the electronics sector, he points out, to the extent that, for example, Samsung assembles somewhere around 50% of their global smartphone production in Vietnam.
This number represents about 20% of Vietnam’s total exports. This “sounds like a very high number but compares with roughly 17% of Korea’s total exports, so it’s not out of whack,” he explains.
On the capital markets side, Vietnam’s stock market is now seeing approximately three times the daily turnover compared to the beginning of 2017, Snowball points out.
“We have seen a large number of new IPOs, particularly from the private sector over the last nine months to a year,” he says.
In April this year, Vietnam Technological and Commercial Joint Stock Bank or Techcombank launched the nation’s biggest IPO that aims to raise as much as USD922 million and has attracted the whos who of global funds as cornerstone investors.
“Also coming we’re told in Vinhomes which is a subsidiary of Vingroup, the biggest property company, property developer in the country,” he says. “And there’s a whole list of (SOEs) state-owned enterprises which will be sold off over the course of the next two to three years I imagine.”
Snowball notes that Vietnam has a very determined aim to become an MSCI emerging market index component rather than and MSCI frontier one.
“For that to happen, we need to see an increase in the accessibility of the market because we still have foreign ownership limits, which need to be relaxed for MSCI to treat Vietnam as a serious contender for such a re-designation,” he says.
For investors looking to tap the Vietnam story, there are many different approaches, says Snowball.
One can come in directly into the market with one of the brokers, or access it via various products from ETFs to closed and open-ended funds, he says. “There is a large number, for example, of UCITS funds from Luxembourg particularly, and ETFs both local and off-shore. It really depends on what fits your risk profile.”
Regarding sectors or strategies that represent exceptional value in Vietnam today, Snowball says that PXP is sectorally agnostic and tries to pick the best available listed companies in Vietnam from a long-term perspective.
Founded in 2002, PXP Vietnam Asset Management is a boutique investment manager, which concentrates solely on equity investment in frontier-market Vietnam.
Of importance within these companies, from a qualitative perspective, is the style, the consistency, and the transparency of the management. “And the amount of due notice that they pay to minority interests and other forms of corporate governance,” he says.
Over the last year, PXP has been particularly keen on the better brokers in the country because of the bull market. Also, “across the market, one of the major things has been the recovery of the banking sector during the past year or so,” he says, adding that PXP participated in the Techcombank IPO.
“Our biggest hold for the last 15 years has been (dairy firm) Vinamilk and as long as that continues to be the best quality or the highest quality company in the country I’m sure that we’ll continue to own that,” he states.
A walk near Hanoi’s Hoan Kiem Lake reveals the city’s distinctly Francophile architectural legacy. An old mansion that once belonged to the Governor of Tonkin, a former French protectorate, is now a government guesthouse for foreign dignitaries. The nearby Metropole Hotel, built in 1901, also maintains much of its historic appeal despite the modernized facilities.
The Metropole Hotel, opened in 1901, maintains much of its historic appeal despite the modernized facilities.
It is a picture of old Vietnam that the country’s government — and its heritage preservation policies — seems to cherish. Even the neighborhood’s new state buildings have been built in the old colonial style, with saffron yellow facades and green window frames.
Evidence of conservation can also be found in the Old Quarter, to the lake’s north, which was for centuries the center of commercial life in Hanoi. The 250-year-old Quan Chuong Gate, all that remains of the old city wall, still welcomes visitors under its glazed roof tower. And centuries-old syncretic temples, which merge Buddhist, Confucian and Taoist beliefs, still stand in the neighborhood’s winding alleys alongside old colonial villas (though some have had modern structures built on top of them).
While Vietnam’s largest metropolis, Ho Chi Minh City, has gutted its historic port district, Hanoi has retained some of its old charm. Some 600 state-owned colonial villas and shophouses, a style of building found throughout Southeast Asia, have been declared off limits to developers, said Michael R. DiGregorio, an urban planner and country director for the Asia Foundation, who has lived in Hanoi for 25 years.
According to Danielle Labbé, a professor of urban planning at the University of Montreal and author of the book “Land Politics and Livelihoods on the Margins of Hanoi, 1920-2010,”the city’s preservation is better managed than in other parts of Asia such as Beijing, where large swathes of the Chinese capital’s old alleyways have been demolished.
“In general, the national and municipal governments … have taken measures to protect monuments — the citadel, important pagodas and temples — and important urban ensembles — the Old Quarter and Colonial Quarter — with a focus on the oldest or best preserved buildings,” she said.
‘Golden land’
Elsewhere in Hanoi, however, hundreds of old villas and shophouses lie decrepit and unoccupied. And while some these buildings have been spared demolition, others have been less fortunate, according to DiGregorio.
“The charm of Hanoi has been torn down,” he said, claiming that most of the old buildings he remembers from the mid-1990s are now gone. “The question should be: why does anything remain?”
It was during the 1990s that private developers began replacing state planners, as major economic reforms began to take effect across Vietnam. Between the late 1980s and 2008, the number of French and European-style villas in Hanoi dropped by almost half, to under 1,000, according to research by Thi Nhu Dao at the Université Panthéon-Sorbonne in Paris. The same study reported that only 15% of the city’s villas are considered “intact.”
Ole Scheeren unveils plans for a spectacular ‘sky forest’ in Vietnam
Aiming to cash in on downtown properties, developers will seize land in the old parts of the city if given the chance. Given their close proximity to city’s commercial districts and government offices, the city’s oldest buildings are often sitting on Hanoi’s most valuable real estate.
“Both the Old Quarter and the Colonial Quarter sit on what the Vietnamese call ‘golden land,'” explained Labbé. “There is considerable profit to be made if an investor manages to get his hands on land in these areas and replace an old and relatively low building (with) a more profitable, bigger, multi-story building.”
Local architect Tran Thanh Van described the current situation as one of “disorder,” with preservation in the Old Quarter in disarray, she said. Historic buildings that aren’t demolished outright, are often modified or refurbished by local businesses, with little regard for their heritage.
“Hanoi has preserved its architectural heritage very badly,” she said. “More precisely, in order to make profit they incessantly build high skyscrapers to do business and (have) destroyed almost all old architectural projects.”
A quirk of history
Despite the frustration of urban preservationists, Hanoi has somewhat resisted a trend unfolding across Asia’s cities. Yet, some of Hanoi’s conservation success may be an unintended consequence of the country’s political past.
With villas, shophouses and large residences seized by the state following the 1954 communist victory in North Vietnam, old properties in Hanoi were collectivized and filled with new occupants by the state.
Decades later, these old villas remain divided between multiple families, making it difficult for developers to buy them out. The result is a state of inertia, in which buildings can neither be destroyed nor effectively renovated, according to Labbé.
“In a sense, this situation has held many buildings in the Old Quarter in a sort of ‘status quo,'” she said.
Nguyen Thao, a 30-year-old tour organizer in Hanoi, said that her parents’ house, an old French villa, remains standing for this very reason.
“They say we can only renovate the house,” she said. “We cannot destroy it, because it would affect our neighbors.”
Although Hanoi’s quant atmosphere is popular with Thao’s clients, she admitted that she took little interest in urban preservation before she began working in tourism. Many in Vietnam, particularly the young, think little of architectural heritage, she said.
“(Young) Vietnamese people prefer to live in a modern city, where they have more possibilities to enjoy their life,” she said, adding that the modernity of Ho Chi Minh City was more appealing to many of her peers.
Nonetheless, Thao said that she has now come to realize that Hanoi’s architectural history gives the city a unique flavor worth preserving. It’s a sentiment shared by Nguyen Quang Son, a 20-year-old electrical engineering student who, through a program at his university, provides free tours to foreign tourists.
“In the past, Hanoi people lived in a very different way from now,” he said. “Now the culture has changed, so the old buildings are something we still have to remember the old days.”
