Vietnam morning news – April 30

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Estimated Reading Time: 5 minutes

Vietnam Trade Surplus at $3.1b
Vietnam recorded a trade surplus of $3.1 billion as of April 15, according to the latest statistics of the General Department of Vietnam Customs.
— Financial Tribune

Vietnam Airlines jet lands on runway under construction
Vietnam Airlines has reportedly suspended crew of an A321 after the jet mistakenly landed on a runway under construction.
— Stuff

Textile, garment exports soar to nearly US$8 billion
Vietnam’s export turnover of textile and garment products soared by 13.4 percent year-on-year to US$7.62 billion in the first quarter, equal to 22.4 percent of the annual target, the Vietnam Textile and Apparel Association (VITAS) reported.
— The Hanoi Times

Vietnam’s tea industry feels pressure from decline in exports
Vietnam’s tea exports to Pakistan, the biggest export market, dropped by 40 percent this year in comparison with the same period last year.
— VietnamNet Bridge

Vietnam asked to lift unfair restriction on Thai cars
Thailand has demanded Vietnam to lift what it alleged as discriminatory import restriction on cars exported to Vietnam, including cars from Thailand.
— Thai PBS

Thailand, Vietnam won’t sell rice at cheaper prices
After Thailand and Vietnam — the only countries with existing rice trade agreement with the Philippines — refused to sell their rice to the country at a cheaper price, the National Food Authority (NFA) is now all set to conduct another government-to-government (G2G) bidding with the two governments.
— Manila Bulletin

VietShrimp 2018 draws over 100 local, foreign businesses
VietShrimp 2018, the second fair on technology in the shrimp industry of Vietnam, has taken place in the southern province of Bac Lieu province, drawing the participation of over 100 domestic and foreign businesses and groups.
— VietnamPlus

Vietnam drafts FDI attraction strategy in new stage
Vietnam’s FDI attraction strategy in the next decade will shift from profit-based incentives to efficiency-based incentives in a move to maximize the spillover effects and added value of the investment source.
— The Hanoi Times

Vietnam’s import up 10.1 pct in first 4 months
Vietnam spent nearly 70.4 billion U.S. dollars importing goods in the first four months of 2018, seeing a year-on-year rise of 10.1 percent, and a trade surplus of roughly 3.4 billion U.S. dollars, the country’s General Statistics Office said on Sunday.
— Xinhua

Wood exports can help 2018 target
Viet Nam can reach its export value target of US$9 billion for forestry products this year through the export of wooden products, said an expert.
— Bizhub

Dorufoam expands export to Russia, Europe, American markets
General Director of Dong Phu Rubber Technology Jsc Dam Duy Thao has said the company plans to ship its wholly Vietnamese natural products to Russia, European and American markets apart from traditional markets of China and Cambodia.
— VietnamPlus

Vietcombank plans to raise capital by 10%
The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) plans to add 10 per cent to its tier-1 capital in 2018 through issuing shares for foreign investors.
— Bizhub

Vietnam struggles to find investors for trans-national expressway
Local investors can’t raise enough funds while foreign ones find the project too risky.
— VnExpress

Export promotion targets sustainable growth
This year’s export promotion will focus on the country’s key industrial products, seafood and agricultural produce, Tran Thanh Hai, deputy director of the Ministry of Industry and Trade (MoIT)’s Import-Export Department, said.
— The Hanoi Times

No new sugarcane plants in Vietnam until 2020
The Ministry of Agriculture and Rural Development has agreed with the plan not to build more new sugarcane plants between now and 2020 with an aim to promoting the industry’s competitiveness and sustainable development.
— Borneo Bulletin

Vietnam’s CPI up slightly in April
Vietnam’s consumer price index (CPI) in April went up 0.08% monthly and 2.75% annually, pushing up the four-month figure by 2.8% year-on-year, reported the General Statistics Office (GSO) on April 29.
— Nhan Dan Online

Vietnam continues corruption fight with charges pressed against top military officers
Multiple executives at a defense ministry’s company have been arrested under power abuse charges.
— VnExpress

Agribank tackle account hack
Three out of twelve account holders at the Vietnam Bank for Agriculture and Rural Development (Agribank) had been reimbursed in full on Friday, following a series of unauthorised transactions from their accounts on Wednesday night.
— VietnamNet Bridge

Companies scratching heads over future
After mobile operators announced a temporary halt of scratchcard payments in the past few days, digital and online gaming businesses said they had been hit hard.
— Bizhub

Qatar Petroleum signs 15-year deal to supply LPG, naphtha to Vietnam
Qatar Petroleum (QP) said on Sunday it has signed an agreement to supply Vietnam with up to 2 million tonnes per year of LPG and naphtha.
— Hellenic Shipping News

E&Y: Where is fintech in Vietnam?
Vietnam can expect its fintech ecosystem to grow in the near future should it pay attention to the funding issue, growing talent in the field, and a legal framework to support such growth.
— VietnamNet Bridge

Multi-channel shopping is vital for e-commerce growth
Multi-channel shopping is on the rise, becoming a vital factor which will help retail businesses expand sales channels, thereby increasing their reach to customers and enhancing the competitive edge given the online shopping boom in Viet Nam.
— Bizhub

Saigon downtown streets will be closed for public holiday

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Saigon will block some main downtown streets as a firework show will be organized, over the Saigon River Tunnel on Monday night, from 21h00 to 21h15 on April 30. Normally, 15 minutes should be reserved to get there as the traffic will be heavy.

A report on VNExpress International mentioned, all vehicles will be banned from parts of Hoang Sa and Truong Sa Streets from Le Van Sy Bridge to Tran Khanh Du Bridge through District 1, 3 and Phu Nhuan to make way for a traditional marathon run from 6 a.m. to 11 a.m. on this Sunday.

The section of Le Duan between Pham Ngoc Thach and Pasteur corners in front of the Independence Palace will be closed to traffic between 8 a.m. and 1 p.m. on Sunday and from 5.30 a.m. to 1 p.m. on Monday, the city’s transport department said.

A closing ceremony of the annual HCMC Television cycling race will be held on the street section.

On Nguyen Hue walking street, between Le Thanh Ton and Ton Duc Thang when the city authorities are planning to organize celebrations to mark the 43rd anniversary of the end of the Vietnam War and the 132th International Labor Day. Duration is from 6 a.m. to 10 p.m, Monday, April 30, 2018.

Between 8 p.m. on Monday and 4 a.m. on Tuesday, motorbikes will be banned from the Saigon River Tunnel, from Ky Con to the area of Thu Thiem Bridge on both sides. There will be a 15-minute firework show over the tunnel on Monday night. Road users are advised to take alternative routes to avoid traffic congestion.

Vietnam’s largest city last year scrapped firework parties for its Reunification Day on April 30, following the Communist Party’s call for austerity but brought back the lights for the country’s National Day on September 2, to a lot of fanfare.

Reunification Day and Labor Day are two of public holidays in Vietnam.

Downtown streets in Saigon will be closed this weekend for Reunification celebrations. Source: Google map
By Huu Nguyen

Lotte Duty Free to open new store in Da Nang downtown

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Lotte Duty Free plans to bolster its Vietnam footprint with a new duty free downtown store scheduled to open in Da Nang city later this year. Travel retail business news channel confirmed on its report.

Scheduled to open in two stages, the mixed category shop will occupy more than 1,000 sq m of retail space when fully open.

“Vietnam has very good potential; it’s an up-and-coming country,” commented Kim Joon Soo, Senior Vice President and Head of Merchandising HQ at Lotte Duty Free. “We will partially open our Da Nang downtown shop in October. The grand opening will be in December.”

NHA TRANG OPENING

News of the store follows the unveiling of 1,208sq m of duty free space over two stores at Da Nang Airport, as reported in October.

At that time, the South Korean travel retailer actively seeks to promote duty free outlets in Vietnam and reviews potential openings in Hanoi, Ho Chi Minh and other major cities in Vietnam over the coming years.

In line with that strategy, Lotte is completing final preparations to soft open a mixed category duty free arrival and departure shop at Cam Ranh International Airport close to Nha Trang.

Cam Ranh Airport’s New International Terminal

As reported in November, Lotte Duty Free secured a 10-year contract to exclusively operate 1,811sq m of mixed category duty free space at the new terminal – Lotte’s second airport duty free shop [and soon-to-be third outlet in Vietnam – Ed] and seventh overseas.

Sales from the concession are expected to reach KRW700bn ($655m) over the duration of the contract.

“We will enter Nha Trang’s Cam Ranh Airport; now we are renovating the shop,” continued Joon Soo. “Even though it’s a small area to begin, we will partially open the shop.”

Located 35km from Nha Trang, a growing beach holiday destination popular with Chinese, South Korean and Russian tourists, Cam Ranh International Airport is Vietnam’s fourth largest airport.

International airlines serving the airport include China Southern Airlines and Sichuan Airlines along with South Korean carriers Korean Air and Asiana Airlines.

When fully open later this year, Lotte’s new Nha Trang Airport arrival and departure shop will be more than five times larger than the company’s current 330sq m duty free departure shop in Da Nang Airport.

“Nha Trang Airport is a bigger market than Da Nang Airport where we also have a duty free shop,” said Kim. “It’s mostly Chinese passengers there; Nha Trang has more Chinese passengers. Nha Trang also is favoured by Russian tourists.”

As reported in the May Asia Pacific by travel retail business news channel, Lotte Duty Free’s overseas sales grew by 45% year-on-year to total KRW140bn ($131m) in 2017 – a welcome distraction from troubles on the domestic front.

Its Da Nang Airport store in particular recorded a surplus in its first year of trading, we understands.

This was first published on travel retail business, edited by Vietnam Insider

Vietnam: A bicycle tour gives a close-up look at the country and its people

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There’s no place in Florida to adequately train for a bicycle ride up a long mountain trail like the spectacular climb to the Hai Van Pass in Vietnam. The ride takes you up 1,627 feet from nearly sea level, through a lush forest, to a windy overlook with photo-inspiring views of the South China Sea. The abandoned bunkers at the pass are sober reminders that French and then American soldiers fought there in the mid 20th century.

The winding, 6-mile Hai Van Pass road was the most serious challenge during a two-week cycling tour of Vietnam that my wife and I took in late December.

Bicycle touring, we discovered, lets you experience a country up close. You see how people live, smell the cooking, and hear children call “Hallo” as they rush to the road to try for a side-arm high five.

John, a 44-year-old Australian graphic designer who spends most weekends on a mountain bike, was first in our six-person tour to make it to the top of Hai Van Pass. It took him 38 minutes of pedaling, and he would have been close to the reputed record of 35 minutes if not for a chain malfunction.

The rest of us took up to an hour and a half to reach the summit. Some pedaled constantly; others took short walking breaks.

My strategy: Start slowly and stay in the highest gears, the ones you don’t use in Polk County. Your feet spin quickly, and you go slowly, but it worked. I got to the top without getting off the bike — except when our tour leader rode up behind and noticed my rear tire was going flat. He phoned the truck that was trailing us, and the driver stopped for an emergency repair.

Riders who don’t feel up to the challenge of the long uphill climb could hop on the bus that ferried us between rides, but nobody in our group chose to do that.

We were four men and two women ranging in age from 33 to 64: two Lakelanders, the Aussie I mentioned, a Danish-Canadian dual citizen and two Brits.

Intrepid Travel, the Australian company that organized the tour, is careful to vary the intensity of the rides. The ride preceding our intense mountain climb was a post-lunch, leisurely 9-mile circle around a placid lagoon. (Our 37-mile ride before lunch started slowly through villages and farmland and shifted to moderate speeds when we hit largely open roads.). We didn’t even get on our bikes the next day, letting our tired leg muscles recover as we strolled, shopped and dined through the old city of Hoi An, a UNESCO World Heritage site.

A typical day on the bicycle tour starts with breakfast at the hotel at 6 a.m. All of the hotels we stayed in were comfortable, though the quality varied from spartan to semi-luxury. (Our guide described one of the nicer lodgings as a three-star hotel built to look like five stars.) Buffet breakfasts typically offer familiar Western dishes (omelets, pancakes, cereal, breads) and Asian meats, noodles, rice, veggies and fruits.

By 7, we were either on our bikes or on the bus. On lighter days, we might bike 20 miles. Toward the end, when we had all built capacity, there were several 50+-mile days.

Our group was accompanied at all times by a local tour guide and a mechanic. We stopped every dozen miles or so for snacks of fresh fruit, sweets, nuts and limeade.

We also stopped for cultural tours most days. In Hue, for example, we visited both the abandoned French and American bunkers on a strategic hill overlooking the Perfume River and the ancient walled city.

Lunches were uniformly excellent. Most were at non-touristy restaurants that we probably would have passed by without a guide who knew where to get tasty food reflecting regional cuisines.

All of the restaurants and hotels that Intrepid uses are locally owned. The company emphasizes low-impact travel and local economic sustainability. All Intrepid employees in Vietnam are locals, according to our guide, and I presume that is true of the other 120 or so countries where Intrepid offers tours.

A bicycle tour in Vietnam

Vietnam is a long, narrow country, and the temperatures varied greatly from north to south, but everywhere we went we saw trees and flowers familiar to Floridians. (We had a Polk County moment when we biked past an orange grove on our third day.)

It’s 1,082 miles from Hanoi, where we started our trip, to the end point in Ho Chi Minh City. (That’s the official name; we were surprised that many locals still call it Saigon.) No, we didn’t bike that far. A significant distance was covered in an overnight train ride as well as bus journeys through mountainous areas and locations where the main route was a superhighway.

Mostly, we biked on country roads, although we did get to compete with ever-present motorbikes and honking cars through some harried city riding. The mountain bikes issued by Intrepid carried us over just about every kind of surface: asphalt, concrete, dirt, gravel, pebbles, potholes, grated bridges, rain-flooded pavement, even a slender creekside path.

The Vietnamese people we encountered were warm and hospitable. If there is any resentment over American fighting in the 1960s and ’70s, we didn’t detect it among the people we met. However, the official line of foreign aggression is abundantly clear when visiting museums about the conflicts the Vietnamese call the Resistance War Against France and the Resistance War Against American

You sense that people are grateful for both the tourism and industrial investment that resulted as relations between the U.S. and Vietnam eased over the last two decades. In cities, particularly in the South, you now see Western luxury brands, and in markets you can get deals on clothing made in Vietnam for American and European companies such as North Face and Adidas.

English skills are seen as a key to advancement. In a lakeside park frequented by tourists in Hanoi, we were approached repeatedly by children who wanted to practice their English skills with us.

And did I mention the food? Our meals were excellent and inexpensive. After two weeks, I thought I had refined my chopsticks technique — until one night when we had dinner with the family of a young Vietnamese friend from Tampa who was home visiting her folks. Her amiable mom watched me picking up spotted snails and rice with chopsticks, and wondered aloud whether I’d be more comfortable with a fork. I smiled and pressed on with my chopsticks.

——-

IF YOU GO

Tour host: Intrepid Adventures specializes in small-group travel emphasizing low environmental impact and local economic sustainability. https://www.intrepidtravel.com, 800-970-7299.

Cost: 15-day Vietnam bicycle trips start at $1,743, including hotels, bike use, 13 breakfasts, 11 lunches and two dinners.

Visa: U.S. citizens must arrange in advance for a tourist visa. You can avoid sending your passport to the Vietnamese embassy in Washington by arranging for a “visa on arrival” through one of several agencies recognized by the Vietnamese government. We used Vietnam Visa Center, https://vietnamvisacenter.org. Cost for a one-month, single-entry visa is $20 and an extra $50 cash when you pick up the visa at the arrival airport.

Weather: Vietnam is hot and humid, not unlike Florida. If you go in the winter, though, be prepared for temperatures in the 40s and 50s in the North.

Training: Those who bicycle long distances regularly won’t need special preparation, although hill work is recommended; nearby places include Lake Hollingsworth neighborhoods, the Ridge and Clermont. My wife and I gradually built to longer distance riding of up to 60 miles in the months before the trip and were happy we did.

Shoes: Shoes with thick soles are recommended. I opted for 5 Ten mountain biking shoes with a grippy sole. They were comfortable both on the bike and during walking tours. (Those who brought clip-in shoes and their own pedals had to change shoes often when we hopped off the bikes for tours.)

Saddles: Intrepid allows riders to bring their own bike seats. I did and was glad to change into it after I tried the one that came on the bike the first few days and ended up sore. My wife brought a noseless seat and was the only person on our tour who did not feel the need to wear padded shorts.

Apps: Because you’ll have a little time to explore some of the cities, it helps to download an offline map and a country guide to your mobile. I found the Maps.me and Triposo Vietnam apps helpful.

By Barry Friedman, Special to The Ledger

Discover U Minh National Park in the Mekong Delta

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Discover Somewhere New? A not too far distance from Mekong Delta centre we have U Minh National Park (UMNP), the perfect place to chill and have a picnic. Vietnam News reports.

If you’re a nature lover and favour adventure trips, the U Minh National Park in the Mekong Delta should be at the top of your destination list, especially if you live in southern Việt Nam.

Trần Vĩnh Tuấn, a 46-year-old visitor from HCM City, is so fond of the park that he comes every month or two. “I can fish, breathe the fresh air, and listen to the singing of hundreds of birds,” he said.

“Living and working in HCM City, I have to deal with air and noise pollution. But here, I always feel relaxed and recharged to go back to work the next day.”

The park’s name U Minh, which refers to darkness, remains a mystery to some. It was so called because of the lack of sunlight caused by the density of trees. Even locals at times found it difficult to navigate.

Separated by the rivers Trẹm and Cái Tàu, the park has two major areas called U Minh Thượng (Upper Park) and U Minh Hạ (Lower Park).

The first is located in Kiên Giang Province’s An Minh District, about 65km from Rạch Giá City, and the latter is in Cà Mau Province, 25km from Cà Mau City.

Greenery: Boats are designed to travel in special flooded forested areas where land travel is impossible. — Photo hcmcgo.com

Every year, thousands of people visit the park for various outdoor activities, including a climb up to a 24-metre high observatory where there is a panoramic view of the vast forests and waterways.

U Minh Thượng, which covers 21,000 hectares, has a core area of 8,000 ha where many rare and endangered birds live. It contains a total of 187 bird species, 39 amphibian species and 34 fish species.

Widely considered the Mekong Delta’s richest region in terms of plant and animal life, with over 243 species of plants, U Minh Thượng has 32 mammalian species, including the hairy-nosed otter and fishing cat.

U Minh Hạ is also amazingly diverse, with more than 8,000 ha of indigo blue trees and a buffer zone of 25,000 ha that protects all flora and fauna.

Wildlife: A bee nest in U Minh Hạ. — VNA/VNS Photo Duy Khương

In 2014, the park management began offering services for tourists, including fishing, and nature discovery and sightseeing trips. Accommodations and boat tours, as well as souvenirs for tourists, are all now available.

Many tourists like to rent boats to travel on the park’s interlacing canals or walk through forested areas, while others prefer fishing or, with the help of locals, spreading nets (with the help of locals) to catch fish that can later cook if they wish.

In recent years, more tall towers have been built where visitors can look for rare animals and plants hidden in the forests.

The park has around 60 kinds of freshwater and brackish-water fish, as well as wild boars, monkeys, weasels, snakes, turtles and pangolins, many of which are listed in the Red Book.

Tourists are also allowed to grill, fry or boil food, or order cooked dishes at the park. The most popular are grilled freshwater fish, grilled snake with water lily, fried field mouse, and young lotus leaves.

Other activities that are bit more adventurous include exploring the flooded indigo forests where people can fish, or trekking to the old barracks of the National Liberation Front armed forces.

Another favourite activity in the indigo tree forest, especially for Vietnamese tourists, is a visit to the house of Uncle Ba Phi, a man famous for his folk stories and comedies loved by generations of local children. Tour guides tell interesting stories about Phi’s fictional giant pythons and crocodiles in the wild.

To protect the environment, the government in recent years has allocated land and forested areas to local residents who make living by planting trees, fishing, trawling, and making wood products, among other activities.

The residents of the area have a deep love for U Minh and take great care in preserving the area, according to authorities.

The park is open year-round, but tourists should be aware that during March and April, when forest fires can break out more easily because of the dry weather, activities in the park are limited in scope and number. — VNS

Revolutionary base

The U Minh National Park is well known for its rich biodiversity, but few people are aware that is also famous for being a former revolutionary base during military conflicts in Việt Nam.

In the last two wars against the French and American, the U Minh mangrove forest was used as a revolutionary base for the South Việt Nam Liberation armed forces.

Colonel Phạm Hoàng Kiệt said the area was chosen as a base because U Minh residents were known as hard-working and heroic. The local residents not only supported soldiers, but also protected the leaders of revolutionary movements and their head agencies.

The park, which has great significance in the nation’s history, serves as a vivid reminder for today’s youth of the patriotism and revolutionary tradition of older generations.

In 2015, the local government built the Security Historical Relics Complex Zone 9 in Kiên Giang Province’s U Minh Thượng District to express respect for and gratitude toward fallen Vietnamese soldiers during the wars with the French and Americans.

Now, visitors to the park can discover wildlife and also learn about local history through images and relics of past wars.

By Van Chau

Vietnam market is still very potential with Japanese Investors

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Japanese FDI inflow to Vietnam in 1Q/2018 is lower than South Korea and Singapore, but Mr. Mochizuki Masashi – Senior Director of Japanese Customers, who has more than 24 years of experience working at Sumitomo Mitsui Banking Corporation, says that it is too early to compare FDI in 2018 between countries investing in Vietnam. “We don’t worry too much about the ‘downtrend’ of Japanese investment,” he added.

Mr. Mochizuki Masashi – Senior Director of Japanese Customers

 

1. Reporter: When SMBC started its investment in Eximbank in 2008, it’s said that one of expectations of the Tokyo-based bank is increasing its support and financial services to Japanese customers in Vietnamese market. I am wondering whether SMBC has gained the targets.

Mr Mochizuki: Since the beginning of the strategic partnership, the 2 banks have built a mutual cooperation structure for supporting Japanese customers’ activities in Vietnam. In principle, Japanese customers are introduced by SMBC and we have enjoyed opportunities to transact with such Japanese customers. In return, we provide banking services which SMBC cannot provide in this market, such as retail services. Consequently, this synergetic collaboration can create value-added service for Japanese customers as well as attract more Japanese customers to transact with SMBC in Vietnam.

2. Reporter: In the first quarter of this year, Japanese investment in Vietnam is lower than others such as South Korea, Hong Kong and Singapore. As a strategic partner of Eximbank which is providing corporate advisory and financial services for Japanese investors, do you worry about that? Could you explain about such low investment from Japan in early months of the year?

Mr Mochizuki: In accordance with the statistics figures disclosed by GSO (General Statistics Office of Vietnam), Japanese direct investment to Vietnam is lagging behind compared with Korea and Singapore.
(FDI progress in 1Q 2018 / Top3)

However, as shown below, Japanese FDI showed a great result in 2017, and 1Q 2018 result above only consists small portion of total FDI capital.

(FDI achievements in 2017 / Top3)

Considering the situation, it can be said that it is too early to recognize/decide investment trend of 2018 at this moment, and we don’t worry too much about “downtrend” of Japanese investment.

3. Reporter: In recent years, many Japanese companies have increased their investment in agriculture, retail and financial services in Vietnam instead of manufacturing. What has Eximbank done to meet demands of those companies?

Mr Mochizuki: In addition to the conventional banking services, we’ve started variety of services to meet our Japanese customers’ demand, and supply chain financing is one of our focused programs which will support not only Japanese Investors but also Vietnamese local suppliers/distributors/end-users; and this program can be applied for many industries including food, agriculture sectors, and retail industry. Following the increasing trend of direct investment, we’ve started our support program for Japanese Direct Investors, and this program can streamline investment process and help achieve more investment in a variety of industries including financial services.
Regarding the strategic investment of SMBC at Eximbank, we talked further with Mr. Yutaka Moriwaki – Member of the Board of Directors – Senior Director and Head of the Eximbank Restructuring Project.

Mr. Yutaka Moriwaki – Member of the Board of Directors – Senior Director and Head of the Eximbank Restructuring Project

4. Reporter: As a strategic partner of Eximbank, what has SMBC done to provide technical support for the Vietnam-based bank as well as to enable the bank to meet Japanese standards, including corporate governance, quality and risk management?

Mr Moriwaki: Since the investment by SMBC on Eximbank in 2008, we have a Strategic Alliance Agreement aimed at mutually complementing know-how and experience of SMBC in the areas of wholesale and retail banking, corporate governance and other banking business.

5. Reporter: There have been ups and downs in Eximbank in recent years, what does SMBC evaluate the situation? Does SMBC decide to maintain its investment in the local bank?

Mr Moriwaki: I’m not in the position to comment on SMBC’s views, but from our own perspective as Eximbank’s representatives, Eximbank’s business trend is showing marked improvement under the current management.
I believe the most important mission now is to improve corporate governance as well as risk management platform to support sustainable growth.
That’s why Eximbank looks to SMBC to support not only for business promotion, but also for enhancing capabilities and knowledge transfer in other functions such as strategic planning and risk management.

6. Reporter: Eximbank used to be a strong and well-known bank, what is SMBC doing to help the bank take back the position?

Mr Moriwaki: Eximbank set up a Mid-term strategy recently. Among several initiatives, one example of SMBC’s support is to enhance trade finance solutions for corporate clients by special product skills as well as SMBC’s overseas network to regain “Export Import Bank” brand name.

7. Reporter: Could you share about business strategy of SMBC in Vietnamese market?

Mr Moriwaki: I’m not in the position to comment on the business strategy of SMBC. From Eximbank’s perspective, we appreciate the collaboration with SMBC by sending personnel and delivering expertise to support our initiatives including the current “New Eximbank” project.
Talking about progress of “New Eximbank”, in 2017, we focused on fixing problem of Eximbank foundation, namely, (1) HR system reformation, (2) Build Mid-term Strategy, and (3) Reorganization of HO to enhance support to sales network.
In 2018, we will start implementing Mid-term strategy in place.

8. Reporter: Could you share more about Mid-term strategy of Eximbank?

Mr Moriwaki: BOD has approved mid-term strategy earlier this year. Our goal is that Eximbank will regain market leadership position in some focused segments to be the leading high-quality commercial bank in Vietnam.
In business, while we are targeting to grow our total assets by 20%, we plan to improve NIM (Net Interest Margin) and fee business such as Bancassurance, Credit Card, and settlement business. SME/MME is the core customer base where we selected 10 focused industries to provide more customer-oriented products and services, while we also enhance business with Large corporate and FDIs leveraging on our trade finance solution capabilities.
For internal control, we will upgrade our IT to improve critical features such as Customer Relationship Management (CRM), and Management Information System (MIS), as well as credit risk management. In order to improve productivity of our operation, we will proceed with Centralization of operation.

In 2017, Eximbank announced “New Eximbank” project with the support from strategic partner, Sumitomo Mitsui Banking Corporation (SMBC). Objective of the project is to regain market leadership in Trade finance, enhance providing solution capability as well as building a solid customer base
In internal control, Eximbank is putting in place KPI and performance evaluation system, reviewing and reforming remuneration system, reorganizing Head Office in 7 divisions and reducing number of Deputy CEO, reviewing and reforming Credit Process

Thank you very much.

 

By Nguyet Tran, Vietnam Insider

Hue Festival exploding into life this holiday

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Event duration: 27 Apr 2018 – 02 May 2018

One of the most anticipated cultural events in Vietnam, the 10th Hue Festival invites travellers from all over the world to experience the unique heritage of Vietnam’s former imperial city. Elaborate performances will be staged at historical venues around Hue, including the Hue Citadel and An Dinh Palace. During the six-day festival there will also be street parades, sampan racing, a cuisine fair, and much more to look forward to.

Hue Festival, one of Vietnam’s largest which is held very two years, is coming back with artists from across the world. VNExpress International reports.

The festival will start with an opening ceremony at 8 p.m. on Friday, 27 April at Ngo Mon Square in the former imperial capital of Vietnam and wrap up on May 2.

Performing along 15 art troupes from Vietnam are 24 troupes from 19 other countries including Australia, Belgium Brazil, China, France, India, Mongolia, Morocco, the Philippines, South Korea, Thailand and the United Kingdom.

With its theme “Cultural Heritage with Integration and Development”, the week-long cultural event is accompanied by a street carnival, an international food festival and a hot air balloon show and dance performances.

The former royal city was the seat of the Nguyen Dynasty which ruled the country from 1802 until the end of feudal Vietnam in 1945, so traditional court music and dragon boat racing should also not be missed.

According to the information from Mr. Huynh Tien Dat, deputy director of the Hue Festival Center, the biggest highlight of the festival will be an art performance to honor five UNESCO-recognized world heritages including the complex of Hue monuments, royal court music, woodblocks, imperial archives of the Nguyen Dynasty and the Chinese-script poetry on Hue royal architectural works.

This would be a perfect opportunity for international visitors to see how the heritage city has come a long way from the imperial capital of Vietnam’s last ruling family to a rising tourism star in the central region, officials said.

Authorities are pinning their hopes on the festival to drive up the province’s tourism industry and help Thua Thien-Hue fulfill its target of drawing 4-4.2 million tourists this year, with foreign arrivals accounting for 40-45 percent, and fetching VND4.2 trillion ($185.2 million) in tourism revenues.

By Vo Thanh

Vietnam Stock Market Set to Be World’s Worst in April

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There is a lot of foreign selling today: Viet Capital’s Tosto
Declines have wiped out $15 billion from nation’s stock market

Vietnam stock market, which has been mentioned as the Asia’s top stock market this year is about to become the world’s worst performer this month. Bloomberg News reported.

Vietnam’s Ho Chi Minh Stock Index slid 3.2 percent at the close Thursday as trading resumed after a holiday on Wednesday, with foreign investors unwinding their positions in emerging markets and rushing to exit a market that reached a record about two weeks ago.

Thursday’s fall brought the drop so far in April to 11 percent, on course for its worst monthly performance in seven years. The decline wiped out more than $15 billion from the nation’s market capitalization.

“There is a lot of foreign selling today and clearly the market is on a down trend and it is really pushing some margin calls,” Michel Tosto, Ho Chi Minh City-based head of institutional sales and brokerage at Viet Capital Securities, said by phone.

The benchmark VN Index climbed a 22 percent this year to a record on April 9, extending a 48 percent rally in 2017. The country attracted the second-highest amount of foreign inflows in Southeast Asia this year, attracted by the rally and a privatization program by the government has also led to a flurry of companies tapping the capital markets.

As investors fled the market, the gauge entered a technical correction at the start of the week with a drop of more than 10 percent from the peak, before extending the slide on Thursday.

Techcombank, a Vietnamese lender backed by Warburg Pincus, is seeking to raise about 21 trillion dong ($922 million). This would be Vietnam’s biggest initial equity offering, surpassing mall operator Vincom Retail JSC’s sale in October, data compiled by Bloomberg show. Luxury property developer Vinhomes JSC, which recently started gauging demand for its offering, could raise as much as $2 billion, exceeding Techcombank, Bloomberg News reported.

The fundraising efforts may have added to the market slump, according to Fiachra Mac Cana, managing director at Ho Chi Minh Securities Corp.

“It is exacerbated by rising equity supply in the market due to a number of large deals plus a more cautious stance by foreign investors,” he said.

— by En Han Choong, with assistance by Mai Ngoc Chau, and Nguyen Kieu Giang

This article was first published on Bloomberg

Growing Market Potential of Fintech in Vietnam

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According to a recent study titled “ASEAN FinTech Census 2018” by Ernst & Young (EY), Vietnam currently ranks second amongst ASEAN member states in the number of incubators, accelerators, and innovation labs in the region. Singapore leads the rankings with 52 incubators, accelerators, and innovation labs, followed by Vietnam at 24.

Vietnam’s fintech industry

With its young demographic, rise in consumers spending, and growing smartphone and internet penetration, Vietnam has emerged as a significant market for fintech developers. As of now, 90 percent of transactions in Vietnam are conducted in cash, and this has led fintechs to focus primarily on the development of payment services. Around 47 percent of Vietnamese fintech startups are only focused on payments, the highest concentration in the region.

According to EY, there are currently around 77 fintech firms in Vietnam. The total investment in 2016 in Vietnamese fintech startups was US$129 million, accounting for 63 percent of all startup funding value, according to Topica Founder Institute.

Industry challenges

One of the major challenges faced by Vietnamese fintech startups is the lack of government policies and regulations that can support the development of the ecosystem. In addition, Vietnamese banks are reluctant to work with fintech firms, without realizing that technology can help the bank to expand their services and increase their reach to those currently without a bank account.

Furthermore, according to EY, startups in Vietnam also face other issues such as lack of talent and funds.

Optimistic future

Overall, fintechs are highly optimistic about the future of the industry in the region, in terms of adoption, expansion, and revenue generation. According to EY, 89 percent of the firms believe that users are keen on adopting fintech services, while 87 percent are planning to expand beyond their current markets in the next 12 months.

Along with Southeast Asia, other regions such as US, UK, and China are a priority for firms for achieving growth. As for revenue generation, 61 percent of the firms believe that it is their immediate future goal for 2018, according to the survey.

Going forward

With cash as the major form of transactions and a growing smartphone penetration, fintech firms have an opportunity to develop solutions for consumers related to payments to make it easier, efficient, and secure. The fintech sector has a very high growth potential in Vietnam and will continue to attract funding, especially from venture capital funds. In addition, M&A activity is also expected to increase as consolidation occurs and firms try to expand, introduce new technologies, and increase service offerings.

However, the fintech industry’s growth will not only depend on investments, new technologies, or smartphone penetration but will also require a robust legal framework. The government has started to take note of the rise of fintech and last year it established a steering committee on fintech to improve the ecosystem. They also issued a plan to reduce cash transactions by 2020 to less than 10 percent of total transactions, which seems ambitious. Going forward, the government needs to continue promoting the adoption of such technologies amongst the citizens and government institutions, work closely with private players, increase access to digital services, and develop a positive legal framework to facilitate the growth of fintech throughout the country.

By: Dezan Shira & Associates
Source: VietNam Briefing

Vietnam stock plunge to be short-lived, analysts say

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A sharp plunge in Vietnam’s stock market over the past two weeks is primarily due to investors taking profits after a massive rally and the correction will therefore be short-lived, analysts said.

The Vietnam index’s near 15% plunge from record highs hit on April 10 has come against the backdrop of a retreat in many emerging markets, driven by the rising fear of global trade protectionism and a rise in US bond yields.

The VN-Index was Asia’s best performer in 2017, with gains of 48% and, despite suffering losses of nearly 4% each day on multiple occasions this week, is still up nearly 7% this year.

“Vietnam’s stock market has been falling over the recent sessions mostly because investors are taking profits,” said Tran Anh Tuan, chief analyst at Vietcombank Securities.

The index, with a market capitalisation of US$140 billion, was trading around 1,037 points on Friday.

Besides impressive economic growth and the promise of foreign investment flows, the market has been propped up by a boom in equity issues and the initial public offerings (IPOs) as the Southeast Asian country speeds up a privatisation drive.

A recent one is Vietnam Technological and Commercial Joint Stock Bank, which is set to be the country’s biggest-ever IPO and raise roughly US$922 million.

John Yoon Young Joong, an analyst at Viet Dragon Securities Corp., said it also was possible that investors were reducing positions ahead of possible new rules that may cut the margin lending for leveraged trades.

“It seems that the market has gotten ahead of itself and rationalism is coming back to the market, which is good,” Yoon said.

Banks have been among the biggest losers since the April peak, with shares of Military Commercial Joint Stock Bank down 18.5% and Bank for Foreign Trade of Vietnam down 20.1%.

Barry Weisblatt, head of research at Viet Capital Securities, said recent media reports discussing high valuations in Vietnam have caused sentiment to turn negative.

Weisblatt said his firm had forecast in January that the index could hit 1,250 by year-end, supported by new share listings such as Techcombank and real estate firm Vinhomes, and that a price-to-earnings (PE) ratio of between 18 and 19 was reasonable.

“So, when it reached 1,204 at more than 21 times PE on April 9, even before either of these listings had been completed, it was well ahead of our forecast and vulnerable to a correction.”

Most analysts expect a quick recovery in share prices. While rising global yields are a risk, market watchers believe trade tensions between the United States and China could benefit manufacturers in Vietnam and other parts of Asia.

“With solid fundamentals, I expect the markets to normalize and resume their path toward gains of 20% to 25% for the full 2018,” said Weisblatt.

Source: Reuters

Thao recognised as Asian Boxer of Year

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Vietnamese boxer Tran Van Thao will be honoured by the World Boxing Council Asia at an award ceremony in Bangkok, Thailand, on April 30.

Thao, nicknamed The Trigger, will be awarded Boxer of the Year for 2017 after his outstanding performance helped him win the WBC Asia Super Flyweight title last November.

“I am proud to receive the award. It gives me immense happiness that my hard work has brought glory to Vietnam,” Thao said. “I will try harder to make it to the world level and put Vietnamese boxing on the global map,” he added.

Thao is currently in Thailand for his match against Artid Bamrungauea of the hosts on the night of April 27.

This will be Thao’s 10th professional match. He has won all nine games.

The world No 91 is hoping to win to further improve his ranking.

Source: VNS

2,700 fatalities and over 4,600 injure even traffic accidents decreased in Q1

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First four months of 2018, there were more than 6,000 traffic accidents, with over 2,700 fatalities and over 4,600 injured, a drop of 349 cases, seven fatalities and 483 injured compared with the same period last year. A report by Vietnamese National Traffic Safety Committee appeals

This marked a drop of 210 cases, 42 fatalities and 275 injured compared with the same period last year.

From March 16 to April 15 over 1,300 traffic accidents had been registered, resulting in 639 fatalities and 1,009 injured people,

The committee has announced hotline numbers to gather information, instructions regarding to traffic accidents and traffic jams during the upcoming holidays for Liberation Day – April 30 and Labour Day – May 1.

Whenever you need, call hotline numbers as below:

Waterway transport: 0243.5481888, 0942.10.74.74

Traffic safety and traffic accidents: 0868.911.911, 0977.497.897, 0989.088.719, 0941.329.634, 0936.198.387

Airway transport: 0902.999.655

Traffic police: 069.234.2608, 0902.999.655

Vietnam Insider just checked to waterway hotline and got response immediately, but it seemed  they just speak in Vietnamese.

Source: VNS, edited by Vietnam Insider

‘A new history starts now’ as leaders of two Koreas begin summit

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SEOUL, April 27 – Smiling and holding hands, North Korean leader Kim Jong Un and South Korean President Moon Jae-in met at the heavily fortified demilitarised zone between the countries on Friday in the first summit for the two Koreas in over a decade.

The meeting, aimed at ending their decades-long conflict and easing tensions over the North’s nuclear weapons programme, comes weeks before Kim is due to meet U.S. President Donald Trump.

Moon greeted Kim at the military demarcation line at 9:30 a.m. (0030 GMT), making Kim the first North Korean leader to set foot in the South since the 1950-53 Korean War.

In an unplanned move, Kim invited Moon to step briefly across the demarcation line into North Korea, before the two leaders crossed back into South Korea holding hands.

South Korean President Moon Jae-in and North Korean leader Kim Jong Un meet in the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Photo: Reuters

The two were handed flowers by a South Korean boy and girl, residents of a village situated in the demilitarised zone.

Walking on a red carpet rolled out for the two heads of state, the pair were met by a South Korean honour guard in historical costumes and playing traditional music.

Kim wore glasses and his trademark black Mao suit, while the rest of the North Korean delegation appeared in military uniforms or Western attire.

Kim stopped to sign a guest book in the South’s Peace House before the two leaders met for a private discussion.

“A new history starts now. An age of peace, from the starting point of history,” Kim wrote in Korean in the book, dating and signing the entry.

Moon and Kim are expected to talk denuclearisation and exchanges between the Koreas and also will plant a memorial tree at the border truce village of Panmunjom.

The United States is hopeful talks between Kim and Moon will make progress on achieving peace and prosperity, the White House said in a statement as the two men began their summit.

The White House also said it looks forward to continuing discussions with South Korea in preparation for the planned meeting of Trump and Kim in the coming weeks.

South Korean President Moon Jae-in and North Korean leader Kim Jong Un arrive at the Peace House in the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Photo: Reuters

Just months ago, Trump and Kim were trading threats and insults as North Korea’s rapid advances in pursuit of nuclear-armed missiles capable of hitting the United States raised fears of a fresh conflict on the Korean peninsula.

Earlier Friday, North Korea’s official KCNA news agency said Kim would “open-heartedly discuss with Moon Jae-in all the issues arising in improving inter-Korean relations and achieving peace, prosperity and reunification of the Korean peninsula.”

Just days before the summit, Kim said North Korea would suspend nuclear and long-range missile tests and dismantle its only known nuclear test site.

Moon travelled to the meeting in a large motorcade, stopping briefly to greet dozens of summit supporters waving South Korean flags near the Blue House.

Hundreds of demonstrators were seen gathering in downtown Seoul from early morning to protest or support the summit.

Scepticism has been rampant about whether Kim is ready to abandon the hard-earned nuclear arsenal his country has defended and developed for decades as what it says is a necessary deterrent against U.S. invasion.

The two neighbours expect to release a joint statement late on Friday – possibly called the Panmunjom Declaration – that could address denuclearisation and peace, and an improvement in relations, South Korean officials said.

South Korean President Moon Jae-in and North Korean leader Kim Jong Un meet in the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Photo: Reuters

Kim and Trump are expected to meet in late May or June, with Trump saying on Thursday he was considering several possible dates and venues.

The White House released two photographs of then Secretary of State-designate and CIA chief Mike Pompeo’s meeting with Kim in North Korea over the Easter weekend to discuss the planned summit. It was Kim’s first known meeting with a U.S. official.

The photos show Kim and Pompeo, who was confirmed as secretary of state on Thursday, shaking hands. In one they faced each other looking serious; in the other they both appeared to wear faint smiles.

The latest summit has particular significance not least because of its venue: the Demilitarised Zone, a 160-mile (260-km) long, 2.5-mile (4-km) wide strip of land created in the 1953 armistice to serve as a buffer between the South and North.

For the first time, key moments such as Kim crossing the border into the South, the two leaders shaking hands and walking to the Peace House for their talks, were broadcast live.

Besides capturing the two leaders’ candid interactions, the live feed broadcast a few hiccups, including when a key photo op blocked was blocked by a photographer’s backside.

By Reuters

400 Agribank debit accounts hacked in Vietnam

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About 400 Agribank debit accounts were hacked on Wednesday night, allowing criminals to withdraw money from the compromised accounts through ATM machines without the cardholders’ consent, the Vietnamese lender confirmed on Thursday.

The bank has yet to release the total amount stolen in the heist.

According to N.T.M.H., one of the victims, the financial department of her company in Hanoi informed her that many employees discovered money missing from their debit accounts at around 11:00 pm that day.

H.’s firm also reported the money losses to Agribank, which issues the ATM cards for the staff members at her company.

The lender then put a temporary freeze on all ATM accounts belonging to the company’s employees.

Despite the freeze, H. received multiple text messages later that night indicating that some of the money in her account had been withdrawn.

“A total of eight transactions were made within six minutes, resulting in the loss of VND24 million [US$1,056] from my account,” H. recalled.

She said she was so worried that she immediately rushed to the nearest ATM to withdraw what remained in her account.

To her surprise, she was able to withdraw what remained in her account despite the bank’s assurance that it had been locked.

An Agribank customer checks his debit account using a mobile appPhoto: Tuoi Tre

About 10 of H.’s colleagues were also affected, with their losses ranging from VND3 million ($132) to more than VND20 million ($880).

The Agribank representative told Tuoi Tre (Youth) newspaper that hackers could have installed skimming devices to steal customers’ information in order to gain access to their money.

A skimming device is a type of card reader which is often disguised to appear as part of the ATM.

The device saves the users’ card number and pin code, which are then used by counterfeiters to make a fake card.

According to Agribank, about 400 ATM accounts were hacked and the bank began working with competent authorities on Thursday morning to investigate the situation.

Many of the lender’s ATM booths have been closed and surveillance footage has been extracted to assist the investigation.

In the meantime, new ATM cards will be provided to the affected customers.

A result of the probe is expected to be announced by Friday.

The bank also promised to return the stolen money to its clients following the investigation.

Founded in 1988, Agribank, or the Bank for Agriculture and Rural Development, is the largest bank in Vietnam in terms of total assets, operating networks, and customer base

By Duy Khang (Tuoi Tre News)

Facebook’s advertising restrictions criticized by local companies

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The accounts of a number of professional marketing companies have been locked, causing harm to many advertisement campaigns, companies say.

Over the past two weeks, the advertisement community in Vietnam has undergone a so-called “Facebook storm”.

“The number of reactions has dropped from VND200,000 to 3,000 for the same ad content. Most of the reactions are likes, not comments,” Minh Khai, the owner of an online fashion shop in Hanoi, said.

“I tried to slash the selling prices of products by 50 percent, but the ads still cannot reach the right targets,” he said.

Facebook has faced a lot of local criticism recently. It was accused of providing personal information of up to 50 millions users to UK-based data firm Cambridge Analytica.

Facebook’s move to shut down the application programming interface (API) in Vietnam has interrupted the business of a number of online shops.

The giant social network has been caught in many technical flaws, including the inability to display comments on ads.

“As a seller, I always look forward to comments from clients. The comments on Facebook have been hidden for the last several days,” said Kim Lien, the owner of a cosmetics shop in Tan Binh district.

“Facebook doesn’t have post-sale policies for ad buyers,” she complained.

In addition, Facebook has also been repeatedly criticized for blocking ad accounts of sellers for no reason. It said blocking was done because the users violated policies.

“Sometimes I do not know which regulations I have broken. The ads have run for several months, and then suddenly Facebook says the ads violate the rules,” Nhan Nguyen, a Facebook advertisement service provider.

Marketing officers have to have many ad accounts in case any of their accounts are blocked. Nhan said that previously, the business manager account was capable of containing 2,500 ad accounts. But the figure has fallen to 10.

“With media companies which act as agents for many customers, 10 accounts are of no help,” he said. “It seems that they (Facebook) got overloaded in approving ads.”

A man from a large media company in HCM City said that Facebook’s move of blocking ad accounts without prior notice shows its lack respect for users who bring it profit.

Many brands and media agencies in Vietnam spend tens of billions of dong a month to run ads on Facebook.

Some Facebook users said it was difficult to contact Facebook’s support team.

By: Kim Chi, Source: VietNamNet

 

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