Expat’s Manual: Living in Vietnam

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Living in Vietnam can offer a true taste of life in the East. Vietnam is a poor, densely populated country that has historically been associated with war and a punishing centrally planned economy. Today, however, it is becoming increasingly popular as a tourist destination and its beautiful countryside and beaches are becoming as much renowned as its tragic past.

Although Vietnam is a relatively small country, covering a total area of approximately 329,500 square kilometers, it is home to 54 different ethnic groups. Of these the most significant group if the Kinh (Viet) people, who account for 86% of the total population. It is divided into 58 provinces and there are 5 centrally-controlled municipalities existing at the same level as provinces. These are Hanoi, Hai Phong, Da Nang, Ho Chi Minh City and Can Tho.

Vietnam as an Expat Destination

Vietnam has become increasingly popular as an expat destination in recent years and it is now recognized as a safe place for foreigners to live and work. Expats are attracted by the nice weather, low cost of living, lively culture and the steady improvements in Vietnam’s infrastructure. Despite the advantages there are still some issues that expats complain about on a regular basis when living in Vietnam. Top of this list is the pollution and it is common to see Vietnam’s residents, expats and locals alike, wearing masks in order to prevent the inhalation of dirty fumes. A further problem is the traffic conditions. The streets are regularly congested with high volumes of cars and bikes and Vietnam has one of the highest road fatality rates in the whole world.

Cost of Living in Vietnam

Vietnam has a comparatively low cost of living and expatriates can live a very comfortable life here with a moderate expenditure. In the 2012 Mercer Cost of Living Survey, Hanoi’s position remained unchanged on the previous year at 136 in the list of most expensive cities in the world. There is varied accommodation available to suit all budgets, from up-market apartments in major cities through to modest houses in the suburbs.

Expatriates observe a big difference in the price of local food and western food in Vietnam and those who are prepared to eat at the local bars and restaurants will find that they can eat good food out at a very low price. Many western bars and restaurants, however, are much more expensive. As with many Asian cities, beer and spirits are very cheap but wine is expensive.

Our relocation guide to Vietnam contains a comprehensive list of all the costs of living in this Asian city, including groceries, eating and dining out, local and private transport, schools and education and a whole host of other living expenses.

Language:

Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer.

Climate:

Vietnam has a largely tropical climate in the south and monsoonal in north.

Living in Vietnam: Expat Job and Career Opportunities

Work opportunities for expats living in Vietnam are rare but it is not entirely impossible to secure suitable work. There are growing opportunities in fields related to not-for-profit international development work. Websites such as http://www.interaction.org contain details about opportunities in the region. Be aware, however, that jobs in these areas are generally limited to people who have previous experience in this type of work.

In addition to NGO work, computer related skills are also in demand and there are teaching jobs available throughout the region.

Key Facts Every Expat Should Know About Living in Vietnam

  • Vietnam currently uses three separate currencies, gold is used to purchase land and housing, US Dollars are used for luxury items and Vietnam Dong is used for day-to-day items.
  • While actual land ownership is not possible at this time for non-Vietnamese, expats living in Vietnam can gain a 50-year lease for land and then build a house upon that land.
  • Foreigners are currently not allowed to rent or drive a car in Vietnam without a Vietnamese driver’s license. Motorbikes can be used.

Citizens from some countries are not permitted visas for entry to Vietnam. A full list of these countries can be found here.

Living in Vietnam: City Guides

Expat Info Desk currently has a city guide available for living in Hanoi. This exhaustive guide contains everything you need to know about relocating to this Vietnamese city and will assist you to:

  • relocate efficiently and effectively with minimum stress.
  • settle in to your new life quickly and easily and find the help and assistance you need, when you need it.
  • identify areas to live in that suit your lifestyle and budget.
  • find the right places to meet like-minded people.
  • find schools that are suitable for your children and their learning needs.
  • ensure that your family get the most of their experiences abroad.
  • prepare for the new culture in advance and avoid any cultural traps.
  • deal with any transition challenges.
  • cut through red tape and avoid unnecessary bureaucracy.

Unlike a book, this guides are regularly reviewed and updated in order to ensure that the information is accurate and reliable and because the guides are written by real expats who live and work in expat Hanoi, you can be assured that you are accessing the information that you need as written by people who really are in the know.

This was first posted on Expat Info Desk

Southeast Asia karate Championship opens in Vietnam

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The Southeast Asia Karate Championship kicked off on Monday in Vietnam’s northern Bac Ninh province with nearly 550 participants from nine countries.

The three-day tournament includes individuals and teams from Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand and Vietnam competing in kata (routine) and kumite (combat) events.

In the last edition of the tournament in 2017, hosts Indonesia ranked first with 23 golds, followed by Vietnam with 22 golds.

This was first posted on Xinhua

Vietnam’s #MeToo Movement Begins With Sexual Assault Allegation at Tuoi Tre

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Misogyny is alive and well and will continue to be so if no action is taken to eradicate it.

On April 19, a number of journalists shared a story on social media about a young intern at Tuoi Tre who was sexually assaulted by a head of department. The intern reportedly attempted suicide after the incident. The posts quickly received widespread attention.

As the saga unfolded, it became known that the alleged perpetrator is the head of Tuoi Tre’s TV department, Dang Anh Tuan – who’s widely known by his pen name Anh Thoa – while the intern is currently a student at the Ho Chi Minh City University of Social Sciences and Humanities. On the same day, Tuoi Tre released a statement in Vietnamese announcing that the newspaper has temporarily suspended Tuan, pending further investigation.

The scandal has prompted many women, especially female journalists, to come forward with stories of sexual harassment in the workplace, including their own encounters, shedding light on a rarely discussed issue.

According to journalist Bao Uyen, who penned a post in Vietnamese on Facebook sharing her past experience with sexual harassment while lamenting how many publications have failed to provide female journalists with a safe space to work.

“I believe that journalism is not the only exception and that there are assholes in every profession. However, if you’re a journalist [in Vietnam], your colleagues will never let you appear in a news feature about any rape case wherein the suspect is the editor-in-chief, the managing editor, or head of a department,” Uyen writes.

A screenshot of Uyen’s post, via Zing

She then encouraged women to come forward by responding to the post with the #metoo hashtag that has caught on globally since last fall. However, for unknown reasons, Uyen’s Facebook account was later blocked, though her statement can be read in full here.

Khai Don, also a female journalist, shared a similar view in a blog post. Don described an incident involving a female journalist friend which went unreported. She also stated that it’s common practice for companies to keep female journalists as interns for many years in order to make it easier for men in management positions to abuse their power for sexual favors.

More often than not, she states, women are objectified and traded within the network of powerful men as rewards and commodities. “The lack of a clear standard and criteria in hiring and promoting policies is the factor that put female journalists in a passive position that is easy to be controlled and manipulated,” Don writes in Vietnamese.

Regarding the current incident in question, in their statement on April, 19 Tuoi Tre denied that the intern had attempted suicide. “The intern was in the hospital on the night of April 18 because of health reasons and has checked out on the morning of April 19,” the newspaper added.

Some have called Tuoi Tre out for shifting attention and playing down the seriousness of the problem. The staff at the Journalism and Communication Department at the University of Social Sciences and Humanities, for example, defended the student in a letter to Tuoi Tre’s editorial board. In it, the authors indicated that while they appreciated the newspaper’s decision to suspend Tuan, they were disappointed in the publication’s treatment of the student. The letter reads in Vietnamese:

“What we need to recognize here is that [the] student has gone through a series of traumatic psychological stresses that have taken a serious toll on her physical and mental health, creating negative decisions in her life. Suicide is a behavioral matter; the point here is that [she] has suffered extreme psychological anxiety for many months due to the impact of the sexual assault.”

On April 20, Phu Nu ran a feature in Vietnamese on sexual harassment at news organizations. Huynh Thu Thao, the author, opens the article with a personal story:

“I, as a journalism student that faced sexual harassment the moment I stepped into the field, want to tell you this: there are many more examples that are even more appalling. Of all my female friends, there is one who was raped during a business trip by her boss and then got pregnant, there is another one who was plied with alcohol and another one who was forced into consuming ecstasy and having sex, while I was once assaulted in a manager’s office,” Thao writes.

On April 21, Tuoi Tre released another statement announcing that Tuan, the alleged rapist in the intern’s case, has resigned. Tuan has denied all allegations, while the case will be transferred to police for further investigation.

This scandal has exposed a work culture that pushes some women out of their professions while undermining their well-being, growth and potential. According to recent research conducted by FoJo Media Institute, a Swedish international media development institute, and the Hanoi-based Center for Media and Development Initiatives (MDI) cited by Phu Nu, the amount of sexual harassment experienced by journalists in Vietnam is high, with the most vulnerable group being journalism students in intern positions and early-career female journalists.

A 2014 ActionAid survey also found that 81% of Vietnamese women said they have experienced sexual harassment in public places. Meanwhile, a UN Women statement from late March also suggests that gender biases prevent rape victims from seeking justice in Vietnam. Specifically, women who reported rape are rarely trusted and are often told to resolve their “issue” through negotiations.

In the wake of the Tuoi Tre scandal, hashtags such as #metoo, #letherdoherjob and #ngungimlang (stop the silence) have surfaced on social media and gained widespread attention. A group of Vietnamese journalists has also teamed up to initiate a campaign against newsroom harassment, using the hashtag #tòasoạnsạch (clean newsroom) to call for a safe space for female interns and female journalists. A Facebook page called “WeNet” (Vietnamese Women in Journalism Forum) was also recently established as a platform for female journalists to discuss gender equality and anonymously share their experiences with sexual harassment.

By Thi Nguyen, Source: Saigoneer.com

Public Bank to open six new branches in Vietnam

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Public Bank Vietnam Ltd (PBVN), a wholly-owned unit of Public Bank Bhd, plans to open another six branches in Vietnam this year, expanding its footprint to 19.

Public Bank group managing director/chief executive officer, Tan Sri Tay Ah Lek, said PBVN increased the number of its branches to 13 last year, from seven in 2016, since it became a subsidiary in April 2016.

“There has always been an on-going plan to expand the bank’s branch network and customer reach in Vietnam.

“PBVN will continue to adopt our strategy and prudent banking practices to further drive its growth in the retail banking sector,” he said at PBB’s 52nd annual general meeting here on Monday.

Also present was Public Bank founder and chairman, Tan Sri Teh Hong Piow.

Tay said PBVN would continue to face keen market competition and challenges in building its pool of human resources based on the current operating environment.

“It will intensify efforts to attract and train local talents,” he said.

On the impact from Bank Negara Malaysia’s January decision to increase the Overnight Policy Rate by 25 basis points to 3.25%, Tay said, in line with the increase, the bank raised the pricing for all floating-rate loans and new fixed deposit by 25 basis points.

“The time lag on the repricing of existing fixed deposits upon maturity will have some positive impact on the net interest margin,” he said.

By Bernama, this was first posted on The Star

Vietnam Morning News – April 24

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Estimated Reading Time: 4 minutes


Petrol prices remain stable, oil prices slightly rise
The price of bio-fuel E5 was kept unchanged while those of diesel 0.05S and kerosene increased slightly by 380 VND and 500 VND per litre respectively in the latest regular adjustment of petrol and oil prices on April 23.
— VietnamPlus

Vietnam accounts for 6 pct of world’s timber, wooden furniture market
Vietnam’s exports account just 6 percent of the global timber and wooden furniture market which is estimated at 120 billion USD, said a local official.
— VietnamPlus

Asian Development Bank and Viet Nam: Fact Sheet
ADB supports Viet Nam in promoting job creation and competitiveness, increasing the inclusiveness of infrastructure and service delivery, and improving environmental sustainability and climate change response.
— Asian Development Bank

Domestic brewers expand to compete against foreign rivals
As foreign brewers are strengthening their foothold in Vietnamese beer market, domestic businesses are also implementing plans to enlarge the market share.
— The Hanoi Times

PetroVietnam to continue with large-scale divestment
The State-owned Vietnam Oil and Gas Group (PetroVietnam or PVN) has drafted a plan for a comprehensive restructuring until 2025, under which it will continue with large-scale divestment from all of its member corporations and companies.
— VietnamPlus

Hanoi to promote female start-ups and economic development
The Hanoi People’s Committee has recenty issued Document No. 1901/QD-UBND, approving project on supporting female start-ups for the period of 2018-2025.
— The Hanoi Times

City calls for foreign investors to further contribute to sustainable growth
HCM City authorities told members of the foreign community at a meeting on last Saturday that they warmly welcomed foreign investment that has significantly contributed to the city’s sustainable and rapid growth.
— Bizhub

Vietnam’s HDBank to absorb PGBank in merger
Vietnam’s Ho Chi Minh City Development Joint Stock Bank, better known as HDBank, said its shareholders approved on Saturday a plan to merge with the unlisted Petrolimex Group Commercial Joint Stock Bank as it seeks to expand operations in the country.
— VnExpress

Vietnam to keep sugarcane area at 300,000ha by 2030
Vietnam will keep its sugarcane growing area stable at 300,000 hectares until 2030 in parallel with increasing sugar output and quality, according to a plan on the sugar industry’s development until 2020 with a vision to 2030.
— VietnamPlus

Sacombank targets 23.2 per cent rise in pre-tax profit
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has set itself a target of increasing its assets to VND430.9 trillion (US$18.92 billion) this year, an increase of 16.9 per cent from last year.
— Bizhub

Vietnam’s digital economy face challenges in data protection
The government should take bold actions to ensure the law enforcement in protection of the rights of privacy and personal information to be strictly observed as it is the prerequisite condition for the development of the digital economy, according to experts.
— The Hanoi Times

​Vietnamese province raises eyebrows with red-carpet treatment given to resort project
The administration of the central province of Quang Ngai Province has attracted criticism for providing unusual support for a proposal to develop a seaside resort by a local realty conglomerate.
— Tuoi Tre

Bank dividend pay-out hit record high
After years of receiving low dividend payout rate by banks, shareholders of many banks are now happy with the record high rates announced at this year’s annual general meetings (AGMs) of shareholders.
— The Hanoi Times

Vietnam is big winner of free trade deals
The clinched free trade agreements (FTAs) has opened the door wider for Vietnamese goods to enter foreign markets, helping the country improve trade balance with its trade partners.
— VietnamNet Bridge

Vietnam renews business license for Globaltrans Air
Deputy Minister of Transport Le Dinh Tho recently signed a decision to renew the business license to Globaltrans Air to operate as a general aviation service provider in domestic and international markets.
— The Hanoi Times

Dong Nai draws over 456 million USD in FDI
The southern province of Dong Nai has granted investment licences to 56 foreign direct investment (FDI) projects worth 456.6 million USD, fulfilling 45.6 percent of the yearly target.
— VietnamPlus

Foreign media laud Vietnam’s economic achievements
A number of foreign press outlets have published articles lauding Vietnam’s economic achievements.
— Nhan Dan Online

Sabeco adds majority shareholder ThaiBev’s representatives to board
Shareholders of Vietnam’s largest brewer Sabeco voted to add three representatives of Thai Beverage PCL to its management board, Sabeco said in a statement.
— Vietnam Insider

With bigger paycheck in sight, millennials lead job hopping trend in Vietnam
As Vietnam’s private sector is booming, millennials refuse to settle for an OK job. They want more.
— VnExpress

Korea’s FDI to Vietnam in focus of finance – banking sector
Korea currently is the largest among 126 countries and territories investing in Vietnam, for which the trend is expected to continue growing in the coming time, said the Ministry of Planning & Investment (MPI).
— The Hanoi Times

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With bigger paycheck in sight, millennials lead job hopping trend in Vietnam

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As Vietnam’s private sector is booming, millennials refuse to settle for an OK job. They want more.

Since starting her first job as a copywriter in communications agency Youth Media nearly three years ago, Bui Quynh Trang has switched jobs three times. She has been working as a freelance videographer for about eight months now. Her stint at her previous employer lasted only nine months.

The 24-year-old was with her first job for more than a year, before she decided to quit with no alternative lined up.

“I was bored with the old jobs. One gave me a low wage, and the other took too many of my hours a day, from 8 a.m. until 7 p.m.,” Trang said.

As the Vietnamese economy is expanding fast, switching jobs for better conditions has become more and more common, with the trend being led by millennials.

According to a survey conducted on more than 3,000 Vietnamese born between 1980-1996 by recruitment firm Navigos Group last August, over two- thirds of respondents said they were considering switching to a new job, while 70 percent said they stay with any given company for no more than four years on average.

“There is always a risk of failure. But you can’t get what you want if you don’t try,” said Nguyen Minh Phuong, 26, who found a new job with a local newspaper after leaving her previous employer at the end of last year.

“It was a huge decision for me,” said Phuong. But she thought switching to a new employer was vital to advancing her career. Her pay also increased 30 percent.

The job-hopping trend among millennials goes against the traditional work culture in Vietnam, where state-owned enterprises hire graduates and employ them until they retire. The job-for-life system has given way with a private sector boom, which has made the labor market more competitive.

Now, the only people who are generally granted job security for life are public servants.

Amid Vietnam’s rapid economic development, millennials are hopping jobs more than ever before, as there are more opportunities than ever before, said Chris Harvey, CEO of IT jobs site ITviec.com.

Many millennials quit their jobs to start their own business, Nguyen Phuong Mai, managing director of recruitment firm Navigos Search, said. Nearly two-thirds of employed millennials said they want to start up in the next three years, according to the company’s survey.

A more flexible labor market also presents an opportunity to advance one’s career faster through job hopping.

This especially rings with millennials, many of whom actively look for new jobs offering a bigger paycheck, rather than waiting for their slice of the pie as their seniors did.

“Many millennials are less patient than prior generations. They want everything now,” Harvey said. “Studies show that people who change jobs every two years or so earn much higher salaries than people who stay in the same job for many years.”

Echoing him, Mai said: “Compared with older generations, Generation Y (millennials) was born into a more materially satisfying life. For them, a salary not only serves as a means to afford daily necessities, but also helps them in asserting their own worth, enabling them to enjoy life more and feel more at ease when their financial capacity is strong.”

Many young people also leave their jobs simply because they want to have certain “breaks” so that they could focus on what is meaningful to them, such as taking care of their family and pursuing their dreams, personal hobbies and travel, she added. “For generation Y, personal freedom and pay are the key factors at play when they consider switching to a new job.”

The trend may, however, destabilize companies and harm their long-term growth, some experts said.

“It’s normal for a young person to change jobs. However, it’s a problem when millennials hop jobs every six months or even sooner. It’s not enough time for them to learn anything, and it’s very disruptive to employers,” Harvey said.

“Every day, I see IT professionals who are changing jobs too fast. Sometimes, it’s after just a few months,” he said.

Some employers are so desperate they hire these people anyway. But prestigious employers look for more stability. If a person has had two or more jobs in less than a year they become less employable, he warned. “Millennials are hurting themselves when they jump too fast.”

Despite the warning, many millennials are unfazed.

“There are millions of job opportunities here. So, why settle too quickly with a job that does not satisfy you?” Trang said.

By Ngan Anh/Dat Nguyen (Vnexpress)

Vietnamese mother torn between two sons 20 years after being sold to China

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‘I’m happy that I’m home now but I still want to return to China for my son there.’

Vu Thi Chuc lives in a small house outside Hanoi with her husband, son and daughter in law.

When the younger couple aren’t at home, the house is filled with silence. Chuc and her husband, Bui Van Hai, both in their 50s, hardly talk to each other, even though they have been reunited for more than a year after 21 years apart.

The woman was rescued as a trafficking victim and brought back to Vietnam, but her returning has never felt complete as she spent a lot of time missing a son in China.

Tearing apart

Chuc was born into a poor family in 1962. Her marriage with Hai was arranged by their families in Phuc Tho District. He is three years younger than her.

They earned their living from a small farm, raising a son and living a normal life typical of a low-income family in the 90s. Until everything turned upside down, all thanks to a neighbor.

“I’m deeply resentful of that woman,” Chuc said, with an angry look on her face.

In 1997, the neighbor asked Chuc to go to town with her as she had found her a job because she “was touched by how poor Chuc’s family was.”

Chuc said the neighbor took her to a restaurant and told her that she would be washing dishes there.

“When I saw noisy people there, I felt something was wrong and I wanted to leave with my neighbor. But the owner pulled me back.”

The next day, after having a bowl of noodles soup given by the owner, she fell asleep. When she woke up, Chuc was in a strange place along with several other women.

“We had to stand in line and then a group of men showed up, and checked us out from top to toe. Some shook their heads and went away and some wanted to take me with them. When I resisted, they slapped me in the face and beat me.”

She was beaten so hard that when another man showed up and decided to buy her, she just followed him, all the way to China, Chuc said.

In Guangdong, she was married to a farmer who was more than 40 and lived in the same house as his parents and siblings.

Scared and homesick, Chuc spent all day crying.

After three months, things fell into place. Chuc wiped her tears away, got out of the house and started working on a farm, but she was still treated like a prisoner. The Chinese family tied her hands to her husband’s most of the time. “I was only let go for a few minutes each day to use the bathroom.”

After two years in China, she gave birth to a baby girl, but she suffered menorrhagia.

Her Chinese husband did not allow her to go to the hospital because “the family had no money for that.”

She managed to recover after a few months, but the baby died.

Not long after that, she had a son.

She was never allowed to keep any money. Her Chinese husband only gave her a small sum once in a while to buy food.

Chuc said she struggled day by day, until things got worse.

The Chinese husband married another woman and started to beat Chuc frequently.

“He took me into a room, locked the door and hit me as if I were his enemy.”

Their neighbors reported the assaults to the police, and the husband was jailed for several months. After he was released, he lived with the new wife, leaving Chuc and their son on their own.

The two sons

“He was a good kid and he loved me a lot,” Chuc said about her 19-year-old son in China, crying.

“When he was old enough to leave home for work, he told his dad: ‘If you lay a finger on my mother, I will tell the police.'”

Chuc said she did not have a chance to say goodbye to that son when Chinese police came and “rescued” her in 2016.

“They came at night and I did not even have time to tell my son,” Chuc said.

“I wanted to take a few photos of him and some papers with his address and phone number but my husband had burned them all.”

Chuc said that on the bus to return home, she felt empty as if she was traveling to a new land.

She felt even more shattered when hearing the sad story that her Vietnamese son, Bui Duong, has to tell.

Duong was seven when the tragedy struck.

“She gave me candies and told me to be good because she was going to visit grandma for a while. But she did not come back,” Duong said.

Since his mother disappeared, Duong lived a tough life with his father Hai, who turned into a lost soul and did nothing but wander around the village after his mother died in 2011.

Duong dropped out after finishing secondary school. He traveled across the country to work, hoping to find his mother somewhere.

He crossed the border in 2013 and hired interpreters to look for his mother. He spent more than 10 days in China until he went out of money.

The moment her mother was brought back to Vietnam, Duong said he was consumed by mixed emotions of excitement, love and anger.

“I was stunned to see her but our connection had faded after all those years,” he said.

There was no hugs at the reunion. It took a few months for Chuc to switch from speaking Chinese to her mother tongue.

With his mother back, Duong decided to return home.

The husband also snapped out of his stupor and started doing up the downgraded house and helping his wife with the housework.

Chuc is working as a farmer again. Duong and his wife are vendors at a nearby market, and they come home every day for lunch and dinner.

“I want to take good care of my mother. But she doesn’t want to stay with us, she wants to go back to China with her other boy,” Duong said.

The family has not made specific arrangements yet, but Duong expressed support for his mother’s wishes.

By Vuong Linh (Vnexpress)

Trade exchange between Egypt, Vietnam hits $377M in 2017

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The volume of trade exchange between Egypt and Vietnam in 2017 rose to $377 million, compared to $266 million in 2016, which represents an increase of 41.7 percent, Head of the Trade Agreements Sector at the Ministry of Trade and Industry Saeed Abdullah announced on Sunday.

He made the remarks on the sidelines of the first session of the subcommittee meetings on trade and industrial affairs between Egypt and Vietnam, with the participation of a large group of representatives from various Egyptian ministries and bodies concerned.

In a statement released by the trade ministry, Abdullah said Egyptian exports to the Vietnamese market included tanned leathers, spare parts and crustaceans.

Meanwhile, Egyptian imports from Vietnam were rubber tires, electrical appliances, coconut, cashews, synthetic fabrics, cotton threads, tea, coffee, dried pepper and frozen fish, he added.

The meetings, also, touched on the recent visit of President Abdel Fattah El Sisi to the Asian country, which greatly contributed to boosting bilateral economic cooperation and increasing the trade exchange, he noted.

“The governments of Egypt and Vietnam should exert more efforts to encourage businessmen from the two states to enhance the volume of trade exchange with regard to value-added goods, in addition to boosting cooperation in the field of manufacturing,’ he said.

The committee reviewed ways of bolstering bilateral cooperation in the areas of information exchange and agricultural and fishery products, he added.

The two sides discussed the possibility for strengthening bilateral cooperation in the domains of customs, capacity- building, as well as the exchange of knowledge and expertise in the fields of technology, innovation, science, entrepreneurship, incentives for research and development.

For his part, the Vietnamese deputy minister of trade and industry asserted his country’s keenness to cement economic and trade ties with Egypt as being one of the most important countries in the Middle East and Africa.

At the end of the meetings, a cooperation protocol on the first session of the subcommittee on trade and industrial affairs was signed.

The two sides inked a memorandum of understanding (MoU) on the organization of exhibitions.

By MENA, first posted on egypttoday.com

Vietnam govt plans overseas borrowings of US$4.7b this year

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Vietnam plans to borrow 108.03 trillion dong (US$4.74 billion) from foreign sources this year, a statement posted on a government website said on Monday.

The money, along with 275.97 trillion dong the government seeks to borrow from domestic sources this year, will be used to repay government debts and compensate for Vietnam’s budget deficit, the statement said.

Vietnam has incurred a persistent budget deficit because the country’s budget spending often outweighs revenue as it funds grand infrastructure projects to support an economic growth that is among the highest in Asia.

The statement, which cited a decision signed over the weekend by Prime Minister Nguyen Xuan Phuc, did not name any potential foreign lenders or provide comparative figures.

It said the government plans to make debt repayments totalling 256.77 trillion dong this year.

Last year’s state budget was estimated at 115.5 trillion dong, compared with an estimated deficit of 192.2 trillion dong a year earlier, according to government data.

The government will provide guarantees for local companies to take foreign commercial loans of up to US$700 million, it said, adding that the government also sets a limit that domestic companies and banks can borrow from foreign lenders this year at US$5 billion.

(US$1 = 22,769 dong)

This was first posted on Reuters

Vietnam plunges nearly 4% to 2-month low

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Vietnam stocks plummeted nearly 4% on Monday, extending a market rout after a near 7% decline over the last two weeks, while most other stock markets in the region slipped as US bond yields rose to a multi-year peak.

The Vietnam index, the only double-digit percentage gainer in Southeast Asia this year as of Friday’s close, marked broad-based losses, led by financials and energy stocks.

Vietcombank and Petrovietnam Gas Joint Stock Corp each ended 6.9% lower

Most other Southeast Asian stock markets slipped, in line with broader Asia, as US 10-Year treasury yields hit 2.968%, their highest since January 2014, a jump widely seen as a technical shift in the market following a large selloff of bonds.

The Thai index shed 0.6% as energy and financial stocks fell. Oil and gas company PTT Pcl closed 2.7% lower while financial services provider, Siam Commercial Bank PCl, dropped 1.8%.

Philippine shares ended marginally lower as financial stocks weighed on the benchmark.

BDO Unibank Inc was the biggest drag on the index and slipped to its lowest close in over five months. The bank confirmed it deferred a deal to sell a 40% stake in rural bank One Network Bank to a unit of US-based global private investment firm TPG.

The Indonesian stock market slipped 0.47%, dragged down by consumer stocks, healthcare and financials.

The country’s index of 45 most liquid stocks fell 0.68%.

Financials and telecom stocks dragged the Malaysian index 0.4% lower. Index heavyweights CIMB Group Holdings and fell 0.8%, while DiGi.Com closed nearly 1% lower.

Singapore shares were the sole gainers in the region, erasing earlier losses in the session to close 0.17% higher.

Singapore’s headline consumer price index (CPI) rose 0.2% in March from a year earlier, compared with a 0.5% growth in February, data showed on Monday.

This was first posted on Reuters

HDBank stands tall as one of the nation’s most profitable banks

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The 2018 annual general shareholders’ meeting of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) was concluded successfully with a shareholder turnout of 85.6 per cent. All submissions of the board of directors were passed with high approval rates.

2017 witnessed the bold transformation of HDBank on the back of a successful 2011-2016 term. For instance, the offering of shares to foreign investors garnered enormous attention with the buying volume more than triple the offered shares.

On January 5, 2018, it was floated on the Ho Chi Minh City Stock Exchange (HSX) and made it to the top 20 largest initial public offerings (IPO) in the history of HSX. Three months after listing, it shares have attracted many investors with an impressive transaction volume. In fact, the bank’s successful IPO have led the rising trend for other banks’ shares.

Moreover, 2017 was also the turning point for the bank’s 2017-2012 term. With the aim of becoming a leading bank for retail, small-and-medium enterprises (SMEs), and consumer finance with a large network and efficient operations, HDBank is growing strongly and sustainably, and completing the tasks assigned by its General Shareholders’ Meeting.

As of December 31, 2017, the bank’s total assets rose by 26 per cent to reach VND189.334 trillion ($8.3 billion). The total deposits amounted to more than VND100 trillion ($4.4 billion), marking a 27 per cent growth, while the sector only averaged 17 per cent. Total deposits from customers stood at VND120.537 trillion ($5.3 billion), equivalent to a 16.7 per cent increase. Its charter capital amounted to VND9.81 trillion ($430 million).

Pre-tax profit reached VND2.417 trillion ($106 million), equivalent to a 110.6 per cent leap. Return on equity (ROE) and return on assets (ROA) stood respectively at 15.8 and 1.2 per cent, lifting the bank to stand among the top four most profitable banks. Non-performing loan ratio was limited at 1.51 per cent.

In 2017, HDBank expanded its network to 240 transaction locations, while HD SAISON extended its presence to more than 11,500 points of sales.

Shareholders’ confidence was reflected by the high number of votes in favour of the Board of Directors’ proposals

The general meeting also ratified the dividend payout ratio of 35 per cent, of which 20 per cent shall be in bonus shares while 15 per cent in cash.

In 2017 HDBank was honoured with many prestigious awards and was highly regarded by domestic and international institutions. For instance, the bank received a B2 credit rating from Moody’s Investors Services, which was the highest rating amongst commercial banks.

On January 27, 2018, HDBank was awarded with the 2nd Class Labour Order by the Sate President of Vietnam. These achievements marked the recognition of the bank’s endeavours and results in the past year.

2018 marks the bank’s second year of implementing the 2017-2021 strategy. In order to continue its successes in 2017, HDBank and HD Saison will keep focusing on retail banking and SMEs.

This focus is reflected by the high targets ratified at the 2018 AGM in comparison with the average estimates for the sector. For example, the bank expects its profit to rise by 62.2 per cent to reach VND3.921 trillion ($171.9 million).

Other targets for 2018 include a 28.3 per cent increase to VND242.865 trillion ($10.7 billion) in total assets and a 30.3 per cent hike to VND222.184 trillion ($9.7 billion) in total deposits. Credit exposure is expected to reach VND154.510 trillion ($6.8 billion).

In addition, the non-performing loan ratio will be kept below 2 per cent, while ROA and ROE target the respective ratios of 1.3 and 20.2 per cent.

For the 2017-2021 term, HDBank will focus on expanding its customer base with big data and supply chain financing to utilise its network of leading customers in many sectors. By 2021, the bank aims at serving 15 million customers, triple its current base, and reaching an average 26 per cent annual growth in credit exposure, total deposit, and profit growth.

Source: VIR

Constructive opinions should be heeded when drafting property tax law

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The Ministry of Finance (MOF) has announced its plan to build a law on property tax but its controversial provision of a housing tax has raised public concern and even opposition in recent days.

According to the MOF, the law is part of an effort to reform the tax system in a more inclusive way to create resources for socio-economic development.

A look at international experience shows that a property tax is currently levied in 174 out of 193 countries worldwide, mostly on land and housing.
Property tax is a significant source of government income, accounting for an average of 3-4%. The proportion is 8% of GDP in Japan and approximately 2% in a number of developing countries in Asia.

In Vietnam, revenues from property tax account for just 0.036% of GDP and the tax is currently applied to land only.

Although the property tax law has been formulated with lofty goals in mind, many people have expressed their concerns and even objections as soon as it was publicised. The most hotly debated provision in the draft law is the tax on housing, as the MOF proposes a rate of 0.4% for a home valued over VND700 million (US$30,800).

Under this regulation, most houses in cities and a significant number of houses in rural areas will be subject to the property tax. The majority of city residents will have to pay the tax because the prices of most houses in a city are above the VND700 million threshold. The public has also questioned the accuracy, equality and transparency during the evaluation of house prices.

During discussions on the draft law, some suggested that the tax should only be levied on second homes. But the MOF disapproved the suggestion, stating that it is not appropriate with Vietnamese conditions and requires the coordination of many agencies, particularly in the complexity of determining the second homes of individuals and organisations.

This argument has prompted the public to think that the MOF is seeking the easier option by taxing homes worth VND700 million or more.

The property tax is an effective instrument in many countries and in Vietnam it is a correct and necessary policy to help manage properties in line with international practices and the context of global economic integration.

However, it is necessary to look at the specific conditions of Vietnam when implementing the law, especially ending the state management agencies’ mindset of choosing the easy way, which places more burden on the people and creates loopholes that can be exploited in the process of evaluating house prices and determining those exempt from the tax.

In addition to expanding the tax base, the MOF needs to take bold action to reduce expenditure and prevent the loss and waste of government revenues in order to ensure a healthy and sustainable budget.

Although it is only an initial draft, the functional agencies should continue to listen to constructive opinions so as to fine-tune the law and develop an implementation roadmap appropriate with Vietnam’s socio-economic reality.

Source: NDO

Q2 earnings, high dividend will attract investors

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Listed companies with positive second-quarter earning prospects, as well as high dividend payment, are likely to attract investors in the future, after the effect of the Q1 result has cooled.

In the latter half of April, over 20 companies will finalise the lists of shareholders for cash dividend payout at the rate of 5 per cent to 35 per cent. Many companies have seen their share prices soar in recent sessions.

Vnsteel – Vicasa Joint Stock Company, which trades shares on the Unlisted Public Company Market (UPCoM) under the code VCA, will pay cash dividend at a rate of 30 per cent on May 15.

After the dividend announcement, the shares climbed over 20 per cent from VND16,400 per share on April 11 to VND20,000 (US$0.88) per share on April 16 before falling to nearly VND19,000 by the end of last week. The steel shares were also among the most active stocks on the market thanks to a surge in demand.

The increase of cash dividend to 24 per cent, a half rise compared to the old rate of 16 per cent, also helped boost shares of Tuong An Vegetable Oil Joint Stock Company (TAC). Its 2017 net profit result was also good at VND166 billion, up 98 per cent against last year.

TAC price rose 12 per cent in one week, from VND53,500 per share on April 12 to VND59,800 each on April 20.

Earlier, shares of Ben Tre Aquaproduct Import and Export Joint Stock Company (ABT) also increased from VND36,000 per share in early April to VND38,500 on April 16 before falling to around VND37,000, after the company reported good business results and a dividend rate of 30 per cent for 2017.

Q2 earnings under radar

According to statistics from the two main stock exchanges in HCM City and Hà Nội, listed businesses on these two exchanges have enjoyed profit growth in the six consecutive quarters ending December 2017.

Growth expanded across almost all sectors thanks to favourable macroeconomic conditions, low lending rates, as well as rising consumer demand.

Such encouraging results have already reflected in their share price increases from last year. The sectors with the highest investment returns included financial services, real estate and banking.

As the effect of Q1 earnings has faded, many analysts have predicted that Q2 prospects will have a stronger impact on share prices in the coming time, especially in the latter half of the second quarter.

According to Bao Viet Securities Company (BVSC), promising sectors in the medium term include banking, real estate, information technology and thermal power. Many of these businesses reported good results in the first quarter.

However, BVSC’s analysts have also warned that positive earnings impact may be modest, and risk is rising as many shares in these sectors have seen a prolonged rally.

Source: VNS

Volunteers clean up nation on Earth Day

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A community clean-up event to mark Earth Day brought together more than 2,000 volunteers from associations, organisations and universities besides local residents, who picked up garbage at 12 locations in HCM City yesterday morning.

The event, dubbed “Live responsibly: Reduce Plastic Pollution”, sought to raise public awareness of the negative impacts of littering and trash in Việt Nam, and highlight the importance of individual responsibility for the environment.

It called on people, especially the future generations, to start by doing the smallest acts in their daily life to achieve a healthier and more sustainable living environment.

It was organised by the Keep Viet Nam Clean and Green Organisation in collaboration with the Việt Nam Youth Federation, American Chamber of Commerce in Việt Nam, US consulate in HCM City and many companies.

Garbage was picked up in public areas such as parks, residential areas, schools, supermarkets and main streets in the city’s districts 1, 2 and 7.

The garbage was then exchanged for potted plants.

Nguyen Thi Chau Anh, a volunteer from Binh Thanh District who had come with her husband and two children, said: “Everyone should have social responsibility to join hands in preventing pollution.”

Volunteers pick up garbage around 23/9 Park in HCM City’s District 1 to mark Earth Day yesterday. — Photo Ngoc Diep

She hoped the annual event would help people, especially the younger generations including her children, fully understand the negative effects of littering.

The Earth Day Network’s topic this year, “End Plastic Pollution”, provided the information and inspiration needed to fundamentally change human attitudes and behaviours towards plastics.

Many activities were also held in central Đa Nang City yesterday to mark the Earth Day. Volunteers joined together to clean beaches, pick up garbage and sort garbage. An exhibition highlighting activities aiming at protecting the environment and entertainment activities such as games were organised to raise public awareness of environmental protection.

In Ha Noi, a dialogue on measures for sustainable energy for the community was held on Saturday as part of Earth Day celebrations. The event, drawing representatives from social organisations, businesses and related experts, provided a venue for them to discuss models of sustainable energy sources such as wind power generated from cheap recycled materials and solar power to run air filter machines.

Since 1970 the United Nations has been celebrating April 22 as Earth Day, which attracts millions of people world-wide to join in to promote public awareness of environmental protection.

This year’s event attracted around 4,000 expats and Vietnamese in Ha Noi, Hoi An, Hue, HCM City, and Phu Quoc Island.

Việt Nam is among the top five countries contributing to plastic waste thrown into the ocean, with 1.8 million tonnes per year, according to a recent international survey.

Source: VNS

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