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Vietnam stocks recover on strong bargain hunting

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Vietnamese shares rebounded on Friday morning as investors began bargain hunting, but the growth seemed unsustainable towards the afternoon session.

The benchmark VN Index on HCM Stock Exchange was up 0.48 per cent to close at 1,099.91 points. It had fallen by 5.1 per cent in the previous two sessions and dropped as much as 1.51 per cent in the morning session.

The HNX Index on Ha Noi Stock Exchange rose 0.43 per cent to end at 131.61 points, recovering from a two-day decline of nearly 2.4 per cent.

The market trading condition was balanced, with 201 gaining stocks, 198 decliners and 110 stocks ending flat.

More than 162.6 million shares, worth VND6.64 trillion (US$295.2 million), were traded on the two local exchanges.

Strong bargain hunting for stocks by investors, which had fallen sharply in the previous two sessions, helped pick up shares in 13 of the 20 sectors on the stock market.

Large-cap stock in the VN30 Index was also lifted by strong purchasing power, going up 0.52 per cent to 1,071.66 points, with 24 of the 30 largest stocks by market capitalisation advancing.

Among the 20 sectors, the banking-finance sector was among those posting the highest growth of share prices. Indices of the insurance, banking and brokerage sectors were up by at least one per cent each.

The financial-banking stocks where prices drove up included Vietinbank, Bank for Investment and Development of Viet Nam, Vietcombank, Bao Viet Holdings, Saigon Securities Inc. and IB Securities Co.

The UPCOM Index on the Unlisted Public Company Market added 0.20 per cent to 57.92 points, up from its previous two-session fall of 2.6 per cent.

The afternoon trading session starts at 1pm.

This was first posted on  VNS

In Vietnam, a mega casino rises with the help of a Macau junket company

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The $4 billion Hoiana project is expected to extend across almost 1,000 hectares.
Along a three-kilometer (2-mile) stretch of coastline in central Vietnam, construction cranes are digging up mounds of sand and rubble where the country’s biggest casino is set to open next year.

When completed, the $4 billion Hoiana project will extend across almost 1,000 hectares, and also include shops, restaurants, golf courses and water parks.

Driving the project is Suncity Group Holdings Ltd (1383.HK), which has made billions luring high-rollers – mainly from China – to the baccarat tables in the Chinese territory of Macau.

Vietnam is betting big on developing a gambling industry, targeting the Chinese tourists who have been flocking to the country in recent years.

In addition to Hoiana, two other casinos, one in Van Don in the northern province of Quang Ninh, and one on Phu Quoc island in the south, are also under construction. The two projects will be part of a pilot program that would allow Vietnamese citizens to gamble at casinos for the first time.

Hoiana will be the first casino owned by SunCity, which will have a one-third stake in the project. VinaCapital, a Vietnamese investment management and real estate firm, and the Hong Kong-based VMS Investment Group will also have similar-sized stakes.

“The government really wishes to bring tourism here,” said Henry Tam, project director of Hoi An South Development, the local company which is building Hoiana. He added that development of the area would also include a school and sports stadium for local residents.

“This is a 15-20 year project,” he said. “The area is four times the size of Macau’s Cotai strip.”

The Hoiana project comes with challenges. Local Vietnamese will not be allowed to gamble at the casino and operations are subject to Vietnam’s uncertain regulatory environment.

Competition around Asia is also heating up, with Macau, the world’s largest gambling center, building more resorts, and South Korea and the Philippines expanding their casino footprints. Other countries like Singapore also compete in the sector.

Ho Tram, a multi-billion dollar casino project located a two-hour drive from Ho Chi Minh City, had construction delays and financing problems before it opened in 2013. The casino – which is owned by Asian Coast Development, headed by the hedge fund manager Philip Falcone – has struggled to attract foreign gamblers to its remote location.

There are fewer than 10 casinos in Vietnam, mostly smaller ones outside major cities. At present, only foreign passport holders can enter and gamble in them.

Suncity executives are optimistic for Hoiana, citing strong government backing, local support through VinaCapital and large-scale infrastructure works like the four-lane highway that will connect it to Danang’s international airport 40 kilometers away.

And they are pinning their hopes on Chinese tourists. In 2017, Vietnam welcomed four million Chinese visitors, up 49 percent from the previous year.

The first phase of the project, which includes a 140-table casino and a golf course, is due to open in 2019. The second phase, which will add a lagoon, water park, second golf course, entertainment village and four more beach resorts, is slated to open by 2023.

Anthony Chiu, Suncity’s chief financial officer, said the cost of the first phase was $650 million, of which VinaCapital, Suncity and VMS have put in around $70 million each, with the rest coming from bank financing.

Companies associated with Chow Tai Fook Enterprises, headed by the Hong Kong billionaire Henry Cheng, are building 100 villas and a 1,176-room hotel as part of the first phase.

In addition to Hoiana, Suncity has also signed a management service agreement for the Van Don project in the north.

Van Don is scheduled to open in 2019 according to Suncity but details are scarce on the nature of the development. Foreign investors are required to invest over $2 billion in order to qualify for casino licenses.

Las Vegas operators including Las Vegas Sands (LVS.N) have been interested in setting up in Vietnam for several years. But Sands has said it would only invest in a casino if locals were allowed to gamble there.

Casino expansion

For Suncity, the stakes are high in Hoiana.

Booming gambling revenues in Macau have created enormous wealth for junket operators like Suncity, who bring in players from mainland China and collect their debts.

But as tighter regulatory controls and a lack of space crimps further development in Macau, junkets have been trying to expand overseas.

Their role remains critical for Asian casinos eager to attract Chinese players, as gambling debts are not legally enforceable in China.

Suncity is responsible for all the casino operations in Hoiana, including bringing in VIP players.

Macau’s government will also soon be deciding on whether to allow new contenders to set up casinos in the glittering enclave once the six existing licenses start to expire from 2020.

Suncity’s 34 percent stake in Hoiana will help position it as a contender for a casino license in Macau, said Grant Govertsen, an analyst at Union Gaming in Macau.

Suncity’s executive director, Andrew Lo, said Hoiana also gave the company an opportunity to be in control of an operation rather than just a service provider.

“I think it’s a very good investment,” he said. “Our marketing strategy is that we will become the entertainment hub of the Danang and Hoi An area.”

Source: Reuters

Toxic algae poses threat to Hanoi’s iconic Sword Lake

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The algae is decreasing oxygen levels and disrupting the food chain.
A species of algae has invaded the Sword Lake in Hanoi, turning the water a strange green color.

Professor Duong Duc Tien said that climate change was behind the invasion, and that the blue-green algae needed to be removed.

Tien also said that it (cyanophyta) contained toxins that could harm other creatures in the lake. Some fish have gone belly up on recent days.

A representative from the Hanoi Drainage Company said that the rapid growth of algae and moss was draining oxygen from the water.

The company is working with Hanoi University of Science and Technology to transplant endemic algae to balance the environment.

At the end of 2017, Hanoi spent about VND30 billion ($1.3 million) on cleaning up the lake.

Source: Vnexpress

Effective spending required for people’s acceptance of new property tax proposal

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The Ministry of Finance has proposed imposing a new tax on people who own property worth VNĐ700 million ($31,000) or more.

The Ministry of Finance claims that the 0.4 per cent tax would bring in VNĐ31 trillion ($1.3 billion) per year and help Việt Nam “get in line with regulations on property tax rates in other countries.”

But does that get it line with the people?

Not likely.

Currently, there is no tax on owning a house. Land users must pay an annual non-agriculture land use tax at a progressive rate of 0.03 per cent to 0.15 per cent of the land price per square metre, determined by the state every five years.

The proposal means house owners will have to pay a new kind of tax for their house, apart from the land use tax they’re paying now.

The finance ministry justified this new tax by saying that data from other countries show that the lowest property tax rate stands at 0.2 per cent, which makes Việt Nam’s tax rate too low. Also, the new policy would help stabilise the property market, restrict speculation and increase efficiency in using properties.

Now let’s take a look: The average wage per person in Việt Nam is around VNĐ3.2 million ($150) a month. It’s not easy to save up VNĐ700 million to buy a house – not to mention that in order to own a house of such value, owners will have to pay various types of taxes already. That includes a 10 per cent value added tax, 0.5 per cent land use tax and some other extra fees for necessary registration procedures.

It’s a lot of taxes already. One more thing to consider: In Việt Nam, people don’t own land. People can only have a land use certificate. This means if you buy a property, you never really own it. In Việt Nam you lease it from the Government and the Government can always take that land back at any time.

And if the finance ministry wants to prevent real estate speculation, why not add a tax on second homes? Owning a house to live in is important to many people, even those who must scrimp and save to achieve the dream. A house of VNĐ700 million or VNĐ1 billion is often owned by those with low or average income – not those with high income. It’s not fair to impose such a tax on people with lower income but ignore those with two or three more properties just because “it’s difficult in Việt Nam to identify who has two or more houses”, as the finance ministry once said.

It’s true: People can’t expect the Government to work for them for free – some types of tax collection are necessary to ensure effective operation of the Government. People can only be willing and happy to pay taxes if the collection is rational and they know their tax payment will be used effectively for the community’s good.

In Việt Nam, people are often under-informed of how their tax payments are spent. When the gasoline taxes were increased, many people were opposed. I don’t think they opposed the tax itself – they wanted to be properly informed of how the tax is going to be spent to protect the environment, how the air and the environment were going to be improved after raising the tax.

In this situation, the authorities need to be transparent on how the new tax will benefit people. Because collecting tax is not only for the sake of Government’s spending, it must be used to serve the people and the community. If the finance ministry and the Government can prove to people that the tax is used wisely, effectively and transparently, I believe people would accept the new tax happily.

Alternative approach

Đặng Hùng Võ, former deputy minister of environment and natural resources, agreed with the property tax proposal. He said he thought it was necessary for the Government to improve infrastructure, public services and urban development. However, he argued the housing property tax should adopt an area-based approach rather than a value-based approach.

This can be seriously considered: taxes should focus on developed areas and should not create burdens for low-income people. A reconsideration and thorough review of the property tax proposal based on this approach would be better accepted by the people.

At the end of the day, too much tax collecting is a signal of ineffective government budget balancing. Tightening State spending is still a more acceptable approach when the authority is faced with budget problems.

Recently the Government has shown its determination on this matter by setting a goal by 2021 to reduce the state payroll by at least 10 per cent compared to the 2015 figure. But the road is long and windy: Government auditors earlier this year urged state departments to tighten control of human resources after finding 57,175 public workers on the payroll are actually not needed.

People will accept reasonable tax payments – but the Government also needs to earn this with effective spending and zero tolerance for waste in its system.

Prime Minister Nguyễn Xuân Phúc said in a meeting earlier this week that the Government would try to listen to people’s voices and needs, mentioning the finance ministry’s property tax proposal. Let’s hope we will be heard, and answered.

Source: AFP

Stocks dip amid poor confidence

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Vietnamese shares nosedived on Thursday as investors remained pessimistic over the short-term market prospects while a bottom pickup near the day-end would not mean better sessions ahead for the stock market.

The benchmark VN Index on the HCM Stock Exchange tumbled 3.86 per cent or nearly 44 points to end at 1,094.63 points. It has dropped nearly 5.1 per cent in the last two sessions.

Thursday’s fall also marked the second worst-hit session for the VN Index since its historical slump of 5.1 per cent (more than 56 points) on February 5.

The HNX Index on the Hà Nội Stock Exchange lost 1.30 per cent to close at 131.05 points, totalling a two-day decline of nearly 2.4 per cent.

The two exchanges were mostly covered by declining stocks, which outnumbered gaining stocks by 324 to 142, while 104 other stocks were flat.

More than 258.7 million shares were traded on the two local exchanges, worth VNĐ8.22 trillion (US$365.4 million), up 11 per cent in volume and 31 per cent in value compared to Wednesday.

Sharp increases in the trading liquidity over Wednesday proved investors poured a huge amount of cash into the stock market on Thursday to scoop up stocks after they had fallen steeply after two sessions.

According to securities companies, investors seemed to overreact to bad news on both global and domestic markets, including the US’ unwilling intention to join the CPTPP trade partnership and the latest arrests of former government officials in Việt Nam.

The overreaction proved investors were quite vulnerable towards negative news at the moment and it “reflected an overwhelming concern of investors,” Bảo Việt Securities Co (BVSC) said in its daily report.

A sudden drop of investor confidence hit 17 of the 20 industries on the stock market and 26 of the 30 largest stocks by market capitalisation in the VN30 basket.

The large-cap VN30 Index plummeted 4.45 per cent or 49.61 points to 1,066.09 points, driven down mostly by financial-banking, real estate, retail and rubber stocks.

Among those sectors, banks, property developers and insurance companies were the worst hit. The three sector indices dived at least 5.2 per cent each.

The stocks that performed badly in the three industries included Vietcombank (VCB), Vietinbank (CTG), Bank for Investment and Development of Vietnam (BID), MBBank (MBB), HDBank (HDB), Sacomreal (SCR), Vingroup (VIC), HCM City Infrastructure Investment (CII) and Bảo Việt Holdings (BVH).

However, the strong fall of local stocks signalled a good opportunity for investors to buy in shares that had dropped sharply in the last two sessions, proven by the increase of trading liquidity.

That signalled the VN Index could “recover in the next sessions” but that recovery “may not be sustainable” amid pessimistic and panic investors’ sentiment, BVSC said, adding that the VN Index could fall back to 1,055-1,065 point range.

Source: VNA

HDBank Partners with EMQ to Boost Remittance Capabilities across Southeast Asia

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EMQ, a Fintech innovator with an extensive financial settlement network in Asia, and HDBank, one of Vietnam’s leading commercial banks, today announced a strategic partnership to penetrate into Vietnam. This partnership will support the growing demand for instant remittances across Southeast Asia.

“This is an exciting milestone for EMQ and we are very pleased to expand our relationship with HDBank and to further support the financial inclusion initiatives in Vietnam,” said Max Liu, Co-founder & CEO, EMQ

“Remittances from overseas workers constitute a vital part of the economy of many developing nations such as Vietnam, a leading recipient of global remittances and contributes to 7% of the country’s GDP, according to the World Bank,” said Max Liu, Co-founder and CEO of EMQ. “Our partnership with HDBank will boost our capabilities in Vietnam, making financial services more accessible and inclusive for the overseas workers and their families across the country.”

As one of the top 10 joint stock commercial banks in Vietnam, HDBank has built strong financial capabilities to offer a wide variety of financial services across its 240 branches/banking units in the country. The partnership leverages EMQ’s financial settlement network across Asia, which will significantly enhance HDBank’s ability to deliver accessible and convenient remittance services for the people of Vietnam.

Mr. Liu added, “This is an exciting milestone for EMQ as we continue our strategic expansion across Southeast Asia and deliver innovative value-added financial services in the region. We are very pleased to expand our relationship with HDBank and to further support the financial inclusion initiatives in Vietnam.”

EMQ currently has footprint in Hong Kong, India, Indonesia, Vietnam and the Philippines, with plans underway to expand across other key business markets first in Asia and then globally, covering North America, Europe and the Middle East. The company received its Money Service Operator license from the Hong Kong Customs and Excise Department in September 2014 and its Fund Transfer Operator license from Bank Indonesia in March 2017.

About EMQ
EMQ is a financial settlement network in Asia, providing secure and affordable money transfer options for businesses and individuals. With our assets anchored in Asia, EMQ has established an extensive and regulatory-approved network that provides immediate access to thousands of distribution points across North and Southeast Asia. For more information, please visit EMQ’s website at www.emq.com

About HDBank
HDBank is one of the first Joint Stock commercial Banks in Vietnam and is currently among the top private commercial banks in the country which has been operating for more than 28 years in Vietnam. HDBank has built strong financial capabilities and up-to-date technologies, offering a wide variety of financial services to retail customers, corporations and investors. As of 31 December 2017, HDBank has 240 branches and transaction offices, more than 11,000 points of sale and over 4.8mm customer base. In the international market, HDBank has set up correspondent relationship with about 400 foreign banks and their branches in many countries and territories.

This was first posted on businesswire.com

DHL Vietnam appoints Drew Duncan as Managing Director

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DHL Supply Chain, the global market leader for contract logistics solutions, today announced the appointment of Drew Duncan as Managing Director of DHL Supply Chain Vietnam. In his new role, Drew will manage the strategic development of DHL Supply Chain Vietnam, steering growth in warehouse management, transportation management and value added supply chain services.

Drew has more than 13 years’ experience in the logistics industry and has spent six years with DHL Supply Chain Thailand. Prior to this appointment, Drew was the Vice President — Retail, managing a combined workforce of over 6,000 personnel, 30 distribution centers and a fleet in excess of 3,000 vehicles. Drew is a pioneering leader of change, and has employed many globally tested supply chain innovations in our local operations, yielding significant improvements in cost and service for our customers.

Kevin Burrell, CEO, DHL Supply Chain Thailand Cluster (Thailand, Vietnam, Cambodia and Myanmar), said: “Vietnam’s economy is growing rapidly, and this dynamic environment demands a leader who drives constant improvement across all areas of our business. We are pleased to announce the appointment of Drew Duncan as Managing Director of our operations in Vietnam. Having worked in Southeast Asia for half of his career, Drew has a keen understanding of regional and local culture. With his illustrious track record and rich experience working within DHL, we are confident of fulfilling our promise of being the leading enabler for our customers in the country and contributing to improving our consumers’ daily lives. We have huge ambitions for our business in Vietnam, and look forward to capitalizing new opportunities under Drew’s stewardship”.

DHL aims to provide a one-stop service for logistics supply chain integration to global standards, supporting local and international customers in various sectors — Retail, Consumer, Technology, Automotive, Life Sciences, Chemical, Engineering and Manufacturing. Its diverse expertise enables speedy operational set-up for customers from all sectors using DHL’s multi-user warehouses and transport networks. DHL Supply Chain sees a real opportunity in Vietnam to help its customers grow successfully and constantly improve safety, quality and cost management through innovation and market differentiated services.

This was first posted on Retail Asia

NH Investment & Securities Acquires Brokerage Business License in Vietnam

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South Korea’s NH Investment & Securities Co. has received a brokerage license from the Vietnamese government.

The company announced on April 19 that Tran Van Dung, chairman of the State Securities Commission of Vietnam, personally visited its head office in Yeouido, Seoul, to award the license.

NH Investment & Securities advanced into the Vietnamese market after establishing a joint venture with Vietnam’s CBV Securities in the past. In January, the investment bank increased its stake in CBV Securities to establish an independent entity, dubbed NH Securities Vietnam (NHSV). The latest permit allows the company to run business in Vietnam under a new wholly-owned identity bearing the NH name.

An official from the State Securities Commission of Vietnam said, “We hope that NH Investment & Securities takes a leading role in developing the Vietnamese capital market. We also hope more South Korean capital flows into Vietnam.”

By Yoon Young-sil | This was first posted on Business Korea.

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Rustle & Still: A coffee shop that a brews up a taste of Vietnam

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Rustle & Still features high-end Vietnamese coffee made from Arabica beans, as well as pastries and banh mi.

People like a good coffee backstory with their cup of coffee these days. Newly opened cafe Rustle & Still on Bloor St. W. near Bathurst St. delivers.

The oasis-like spot — heavily decorated with plants, which are meant to rustle as you walk by them and create a sense of calm, hence the cafe’s name — features high-end Vietnamese coffee.

“We both love coffee and we both love plants,” says Tri Ngo, who owns this place with his wife, Hang Vu, both 30.

Both hail from Vietnam, the second biggest producer of coffee in the world, just behind Brazil. Who knew? The country grows mostly Robusta beans, which are used mostly in instant coffee, while just 5 per cent of production is higher quality Arabica beans — the type we prefer for drip or espresso-based drinks.

Meanwhile, people know Vietnamese coffee as the iced drink loaded with condensed milk. “We want to introduce people to a different side of Vietnamese coffee,” says Ngo.

As a coffee shop focusing on Vietnamese single-origin bean coffee, the duo is working with a nonprofit called Filanthrope that connected them to coffee growers in Vietnam growing Arabica. They import raw beans directly and send them to Hatch Coffee Company, where they are custom roasted on a weekly basis.

While Ngo focuses on the coffee, Vu is the food and taste explorer here. It was she who put together the cafe’s most innovative hot drinks, the Matcha Panda Latte ($4.90) and the Purple Sweet Potato Latte (also $4.90).

She also darts back into the kitchen and puts together the cafe’s freshly baked pastries and banh mi offerings (a lemongrass pork option sells for $7.80 as does a vegan sandwich that features mushrooms).

Both grew up in Vietnam, but didn’t know each other. Ngo’s grandparents had an orchard and grew some coffee. “I knew I’d have to do something with coffee some day.”

Then both came to Canada to study: Ngo to York for business and economics while Vu got her degree in chemistry at the University of Toronto. They met through a Vietnamese student organization.

Both had office jobs for six years, but soon wanted something new. Vu quit her pharmaceutical job to get experience working with food at a busy Markham coffee shop. Ngo walked away from HR consulting to do barista training and started a meet-up group for people who wanted to launch coffee-related businesses.

The idea for this concept grew, and the two decided that this strip of Bloor would be ideal: it’s Little Korea, in theory, but more unique concepts inspired by all of Asia — as well as Indigenous businesses — are cropping up here. “People here are open to try new things.”

Since opening in March, the coffee shop has drawn busy lunch and weekend crowds. Customers are clearly attracted to the indoor-outdoor vibe, the tasty food and the discovery of a new coffee taste and story.

By DIANE PETERS, this was first posted on The Star

Lazada alumni startup Intrepid bags $2m investment to get Vietnam’s retailers online

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If you’re a brick-and-mortar retailer looking to sell online, you’ll need to get some ecommerce expertise on side. What better way to do that than to tap a team of former Lazada executives?

That’s the proposition behind Intrepid, a Ho Chi Minh City-based ecommerce consultancy and B2B service provider that’s just raised US$2 million in funding from several Swedish family offices. Intrepid claims a post-money valuation of US$9 million.

Intrepid was founded by Khang Chim and Chris Beselin, and was spun out of venture builder Fram, where Beselin is chairman and co-founder.

Chim serves as the startup’s CEO and was Lazada’s head of sales in Vietnam from 2013 to 2015, while Beselin was a Lazada co-founder and the ecommerce firm’s Vietnam CEO from 2012 to 2014.

Other Lazada alumni on the company’s board include Igor Pezzilli, the ex-CEO of Lazada Malaysia, and Adrien Cohen, the former regional head of electronics for Lazada Group.

Ecommerce is not about doing one or two things right. It’s about getting hundreds of small details as right as possible.
Intrepid works as an ecommerce partner for Vietnam’s offline retailers – from individual entrepreneurs and distributors to mom-and-pop stores and big brands – to help them get online and optimize their presence on ecommerce marketplaces.

It counts Lazada’s Vietnam site as an official partner.

Beselin, who also serves as Intrepid’s chairman and has invested in the startup, told Tech in Asia that its ecommerce service provider model is similar to that of Tmall partners like publicly listed Baozun in China.

“Basically, we are helping vendors to succeed in selling through the big marketplaces in the region. Within this scope, we help them with campaign management, assortment planning, real-time pricing, online marketing, stock keeping management, and much, much more,” he said.

“In the case of Lazada, we would take full control and manage the Lazada accounts of these vendors completely.”

Beselin said that the idea for Intrepid came from the founding team’s days working at now Alibaba-owned Lazada, where they noticed that retailers and distributors tended to struggle when it came to online sales.

“The majority of [them were] coming from a pure offline retail background and might not be used to B2C sales at all,” he said.

Beselin added, “Ecommerce is not about doing one or two things right. It’s about getting hundreds of small details as right as possible, as often as possible, and across as many of your products as possible – often thousands. With big data and real-time updates of pricing, assortment, and so on, this challenge becomes fairly complex for these vendors to manage and win.”

The funding will be used to continue the startup’s ongoing expansion into the Philippines (it has already opened its first overseas office in Hong Kong).

Beselin said that the Philippine launch is set for six weeks from now. Indonesia and Thailand are the “most likely” expansion targets after that.

The startup did not share any performance data with Tech in Asia.

This is a developing story. Check back for further details.

By Jack Ellis, This was first posted on Tech Asia.

Firms hail progress in Vietnam’s business environment

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Breakthroughs in the business environment have created a foundation for renovation, contributing to the growth of the economy and local firms.

This was said at an award ceremony to felicitate the winners of BP500-Top 500 Prosperous Firms 2018 list.

The ranking was announced by Vietnam Report and online newspaper VietnamNet in Hà Nội on Wednesday. This is the eighth consecutive year the list has been announced based on independent researches and assessment outcomes of Việt Nam Report.

The list aims to honour companies with stable business results and growth potential and that contribute significantly to the country’s prosperity.

Economists and enterprises at the event showed that the BP500 firms achieved positive results.

Last year was considered the year of records. GDP (gross domestic product) growth rate reached 6.81 per cent, the highest in the past 10 years. FDI (foreign direct investment) was some US$36 billion while disbursement was $17 billion. At least 126,859 companies were newly established, and the import-export turnover was $400 billion. The inflation rate was 3.53 per cent, which was lower than the set target.

New policies, including a resolution on the development of the private economic sector, renewal of State-owned enterprises, support to small-and-medium sized firms and restructuring of credit institutions have contributed to a high growth of the Vietnamese economy.

Ngô Thanh Phong, general director of FDC Investment Construction JSC, said the number of sub-licences had sharply reduced owing to reforms in the business environment and mechanism. In addition to this, the reduced lending interest rate and stable exchange rate have created a favourable business environment for companies’ growth. This has proved the efforts of the Government in recent years.

Most of the top 500 prosperous firms are optimistic about the economy this year with expectations of high growth and are planning to expand their business.

The market potential of both local and regional areas, together with an improved business environment, will create new development oportunities for companies, the firms said.

Most Vietnamese companies are looking to improve their productivity in 2018, as this has been an area of weakness for many.

Nguyễn Xuân Thu, deputy general director of Delta Group, said they were studying new technologies in construction to improve productivity.

“By applying new technologies, we will need just one labourer to the current four,” he said.

The firms said they were ready to welcome challenges and grab opportunities by seeking new markets and implementing joint venture projects. They were also willing to pour into promising start-ups.

Talking about the barriers to development, business firms said they were most concerned about administrative procedures and tax issues, although the Government has made some efforts in this regard. More than half of the surveyed firms rated administrative procedures in Vietnam at the average level.

They said further acceleration of administrative reforms would be a vital support for their development this year.

Economist Nguyễn Quang Thái of the Vietnam Economic Association, however, said the growth quality of the economy lacked sustainability despite the high growth rate in recent years.

He said this was evident in productivity, quality, effectiveness and competitiveness.

At the event, Vietnam Report also announced a list of the 10 best firms in the areas of real estate, construction and construction material in 2018, with Vingroup, Khang Điền and Nova among the best firms.

This was first posted on  VNS

Economy Start-up contest returns

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Registration is open until April 30 for an annual business start-up contest oganised by the Business Start-up Support Centre and the HCM City Young Businesspeople Association.

Vietnam Start-up Wheel 2018 will be a forum for contestants to present innovative business start-up ideas and business strategies and mobilise funds for projects.

Unlike previous years, the sixth edition of the competition is open to contestants of all ages and nationalities who have a start-up in Việt Nam, according to Trương Lý Hoàng Phi, director of BSSC.

It also encourages science researchers at institutions and schools, whose studies are feasible, practicable and lend themselves to commercialisation, and overseas students with start-up ideas for doing business in Việt Nam to take part.

The organisers expect to receive 1,000 start-up ideas and projects. A qualifying round will reduce the number to a maximum of 100 for the semi-final.

The final round in August will see 10 projects compete.

There will be a first prize worth VNĐ200 million (US$8,771) for an existing company that is less than five years old and another worth VNĐ150 million for startup individual/group, two second prizes worth VNĐ70 million each, and two third prizes worth VNĐ40 million each.

The organisers will also award prizes to most creative project, most-liked project and most outstanding project by students.

The winners will also have a chance to get investment, sponsorship and consultancy from experienced entrepreneurs to convert their start-up ideas/products into reality.

They will also get the opportunity for approaching local and international investment funds and receive training in running a start-up business from prestigious entrepreneurs.

The competition will be held across the country.

This was first posted on VNS

Vietnam Morning News For April 20

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Estimated Reading Time: 5 minutes

IMF projects Viet Nam’s GDP growth by 6.6%
In a recent report, the International Monetary Fund (IMF) projected Viet Nam’s economy to grow by 6.6 per cent this year and by 6.5 per cent in 2019.
— Bizhub

Cement exports surge as China’s production drops
Vietnam’s cement industry saw strong growth in cement exports in the first quarter of this year as many Chinese cement factories shut down due to pollution and power shortages.
— VietnamPlus

Property tax law out of National Assembly’s next year agenda
There has been no official proposal for the submission of the draft law on property tax to the National Assembly to date, according to the NA’s General Secretary Nguyen Hanh Phuc.
— The Hanoi Times

Vietnamese police seize “deadly coffee” mixed with black powder from used batteries
A family-run coffee producer in Vietnam’s Dak Nong province has been caught producing coffee mixed with harmful ingredients from used batteries, dirt and rock dust and dyed black, Tuoi Tre News daily newspaper reported.
— Thai PBS

Vietnam’s socialist dream hits on hard times
Vietnam’s leading politician Nguyen Phu Trong had some advice for his socialist cousins during a recent visit to Cuba.
— Asia Times

Hanoi reviews investment activities in Q1

Hanoi has recently reviewed activities of the People’s Inspection Board and Community Investment Supervision Board in the first quarter of 2018.
— The Hanoi Times

Vietnam raises US$1.95 billion from G-bond so far this year
The State Treasury of Vietnam mobilised over VND44.4 trillion (US$1.95 billion) via Government bond (G-bond) auctions in the Hanoi Stock Exchange (HNX) since the beginning of 2018.
— Nhan Dan Online

Vietnam should add more countries to visa-free list: insiders
The Ho Chi Minh City Tourism Association has called on Vietnam’s tourism watchdog to seek government approval to renew a nearly-expired visa-free travel policy with better conditions and more countries on the list of beneficiaries.
— Tuoi Tre

Central provinces target 2.5 million tonnes of rice in upcoming crops
The Ministry of Agriculture and Rural Development (MARD) has asked South Central and Central Highlands provinces to strive to produce at least 2.5 million tonnes of rice in this year’s upcoming crops.
— VietnamPlus

Clean production will help Vietnamese fruit compete with imports
Shifting to clean production is the right way for Vietnamese fruits to compete with the rising inflow of imports, both consumers and local fruit growers said.
— VietnamPlus

Vietnam still living on FIE exports
The saying ‘The first month (of the Lunar Year) is the time to play’ is no longer true in the global era.
— Vietnamnet Bridge

Korean new investment wave begins in Vietnam
There has been a new investment wave from South Korea to Vietnam, especially after the two countries reached cooperation agreements during a recent visit of Korean President Moon Jae In to the country.
— The Hanoi Times

Fruit exports chief concern for provinces
The northern provinces of Bac Giang, Hung Yen, Hai Duong and Son La have proposed boosting exports of litchi and longan to foreign markets, including China.
— Bizhub

Vietnam gearing up for upcoming lychee and longan harvests
The Ministry of Agriculture and Rural Development (MARD) held a conference on April 18 to discuss measures to promote the sale of lychees and longans, both on the domestic market and abroad, in the upcoming months.
— Nhan Dan Online

Vietnam Digest: Vinafood 2 to trade on UPCoM; KIDO to buy 51% in Golden Hope
Vietnam Southern Food Corporation (Vinafood 2) will trade on UPCoM with a total 114.8 million shares while food major KIDO Group plans to acquire 51 per cent stake in cooking oil producer Golden Hope.
— DealStreetAsia

Vietnam’s agriculture ministry to cut nearly 70% of business rules
The Ministry of Agriculture and Rural Development (MARD) has proposed the abolishment and simplification of nearly 70% of 345 business conditions under its jurisdiction.
— Nhan Dan Online

Vietnam, Myanmar agree to bolster trade, investment
Vietnamese Prime Minister Nguyen Xuan Phuc and visiting State Counselor of Myanmar Aung San Suu Kyi agreed on Thursday to further deepen bilateral trade and investment.
— Xinhua

Vietcombank earns $7.5m by divesting Orient Commercial Bank stake
Vietnam’s largest lender by market value, Vietcombank (VCB), has earned approximately VND172 billion ($7.56 million) by offloading its entire stake in Ho Chi Minh City-based Orient Commercial Bank (OCB).
— DealStreetAsia

China usurps US as Vietnam’s top export market: report
Vietnam’s exports to China surged about 15 times to $50.6 billion over the past decade.
— VnExpress

Indian investors keen on energy projects in Vietnam
Investment ties between Vietnam and India are expected to further develop in the months to come with energy as one of the focuses.
— VietnamNet Bridge

Sneaky moves on catfish by Southern lawmakers could spark trade war with Vietnam
With the exception of the annual catfish festival, which still draws thousands on the first Sunday of April (unless it’s Easter), this once-bustling town is a dusty shell.
— Washington Times

Open-air studio: Vietnam through the eyes of American photographer

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10 years after settling down in Vietnam, this photographer has paid tribute to the land that changed his life.

Justin Mott first set foot in the Vietnamese capital Hanoi in 2006 to carry out a project aimed at helping Agent Orange victims. He said he didn’t think that his life would turn around in an unfamiliar country, but he found “true” inspiration from his photography job that earned him global fame.

His camera captures the breathtaking natural scenery and rustic life in Vietnam for global travel magazines.

Recently, he unveiled a private project called “As Above So Below,” featuring a collection of photos he shot during his 10-year journey in Vietnam.

He said the project has been an opportunity to express his love and gratefulness to the country that inspired his work and contributed to his successful career.

A flea market in the northern province of Ha Giang taken by a flycam.

Moc Chau District in the northern mountainous province of Son La is one of the first three destinations he stopped at to start his photo collection. He said he was impressed by the serene atmosphere and unhurried pace of life in Moc Chau.

During his latest trip to Phu Quoc, he got the chance to explore more of the island off the southern province of Kien Giang.

The island has been hailed by the photographer on his personal page for its crystal blue waters, white sands, age-old fishing villages and fish sauce producers.

He has been living and working in Vietnam for 10 years, and is growing in stature across Southeast Asia.

Story by Vy An (Vnexpress)

Photos by Justin Mott

Vietnam’s stock market: it’s the age of mid-cap stocks

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Vietnam stock indexes have gained new highs recently. However, the rise of large-cap stocks has stalled, while mid-caps are attracting cash flow again after a correction period.

A report found that mid-cap stocks had the highest growth rate in the first six months of 2017, by 33 percent, higher than the 20 percent growth rate of VN30 and the 20 percent of small-cap. However, both small- and mid-cap stocks later experienced a correction period until October and only increased again in November, thus curbing the growth rate in 2017.

By contrast, the VN30 stocks have maintained an upswing since August 2017, becoming an important driving force for the VN Index to overcome the resistance threshold and gain new peaks.

However, commercial retaliatory actions by the world’s two biggest economies, the US and China, have increased the risk in the global stock market, and may weaken the large-cap’s growth motive.

The high sell demand put pressure on large-caps when the VN Index surpassed the 1,200 point threshold. However, this is also a great opportunity for cash to flow to mid-caps and small-caps after taking profit with large-caps.

In a bull market, bluechips always lead the market trend. As the stocks have large capitalization values, the stocks have big impacts on the indexes. So the price increases of the stocks will push the indexes up and bring optimism to investors.

As a result, the cash flow will begin to head for stocks with smaller capitalization values and push the price grounds up.

Analysts all say that the small- and mid-caps have been leveling off over the past six months, so they would bounce back soon.

Analyses show that the mid-cap and small-cap P/E ratio are 13 and 11, respectively, much lower than the VN 30’s P/E. With such a big gap, the cash flow will inevitably head for mid- and small-caps.

The high trading of small- and mid-caps is the major motive maintaining high market liquidity. However, analysts say, the cash flow will be selective and will go to the stocks of companies which expect to have satisfactory business results in the first quarter of 2018.

Some real estate stocks have seen prices escalating significantly in recent months as the land price continues to rise. The CEO Group share price has exceeded the resistance area of VND11,000 per share and soared to VND16,000. The upward trend only began in late March, which means that the price soared by 50 percent within a month.

The price of Kinh Bac Urban Development (KBC) has also increased since early April, now hovering around VND13,000 per share.

US$1=VND22,000

Source: VietNamNet