Bill Gates, Obama and Elizabeth II among most admired persons in Vietnam

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 A majority of people that are most applauded in Vietnam are foreigners.

Of all the people in the world that Vietnamese people admire the most, Bill Gates, Barack Obama and Queen Elizabeth II stand in top, a new survey has found.

Bill Gates, the founder of Microsoft and philanthropist, takes the first spot among all the men that are most admired by Vietnamese people, followed by U.S. former president Obama and Lai Van Sam, the most famous TV show host and program producer in Vietnam, as found in an annual survey conducted by YouGov, a world-leading online market research company based in the U.K.

As for women, Queen Elizabeth II arrives third after Hai Ba Trung, or the Trung sisters, two Vietnamese military leaders who ruled Vietnam for three years after rebelling against the first Chinese domination of Vietnam in AD 40, and Vietnamese diva My Tam, who has been hailed the “Queen of V-Pop” for many awards in and outside of the country, including Best Selling Artist of Asia by Big Apple Music Awards, MTV Europe Music Award for Best Southeast Asian Act, and World Music Award for World’s Best Selling Vietnam Artist.

This year, YouGov expanded its study to cover the views of people in 35 countries, the highest ever, and interviewed more than 37,000 people to compile the list.

The results are calculated from the combination of responses to two questions – whether a respondent admires the figure at all and whether they are the figure the respondent admires the most.

In December, YouGov gathered open-ended nominations from panelists across 35 countries, asking them simply: “Thinking about people alive in the world today, which [man or woman] do you most admire?” These nominations were then used to compile a list of the 20 men and 20 women who received the most nominations and were nominated in at least four countries. An additional 10 popular local figures were added to the lists for individual countries.

Over the beginning of the year, the company then used the lists to poll each of the 35 countries asking two questions: “Who do you truly admire?”, where respondents could make multiple selections, and “Who do you most admire?”, where they could only pick one, and combined those two numbers into a percentage share of admiration.

On the global scale, American actress Angelina Jolie, Michelle Obama, former first lady of the U.S., and Oprah Winfrey, American TV show host and producer, conquer the group of women.

As for the male category, Bill Gates and Barack Obama take the lead, and Chinese actor Jackie Chan occupies the third position.

Both American men have been to Vietnam where they were welcomed like rockstars. Bill Gates funded big projects to provide internet access for people in rural Vietnam and to support Vietnamese orphans. Obama visited Hanoi and Ho Chi Minh City in May 2016 where he met with entrepreneurs and students, and caused big fanfare by having dinner at a plastic stool noodle restaurant popular to locals.

Source: Vnexpress

PetroVietnam ready for ‘radical reform’ after prosecution of top executives

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PetroVietnam (PVN), the country’s state-run oil and gas giant, is preparing for an unprecedented reform of its organization and investments, in the wake of many prosecutions involving its top executives.

The reform plan, recently submitted to the Ministry of Industry and Trade, would include a gradual streamlining of PVN’s apparatus and the group’s divestment from a number of subsidiaries from now to 2025.

In its report, PVN also asked to be granted special mechanisms that would allow the group to regain financial footing after recent major losses caused by mismanagement.

According to the plan, the number of departments within PVN’s organizational structure will be reduced from 23 to 13 by merging departments with overlapping or closely related duties.

The petroleum behemoth will close one of its three representative offices nationwide as a cost-saving measure.

By 2019 PVN will have completely divested from its subsidiaries including PetroVietnam Maintenance and Repair Corporation (PVMR), PetroVietnam Construction Corporation (PVC), and PetroVietnam Insurance Company (PVI).

Other PVN-owned businesses including PetroVietnam Gas Corporation (PVGas), PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo), and PetroVietnam Ca Mau Fertilizer Company (PVCFC) will be subject to partial divestiture from now to 2020.

Meanwhile, PetroVietnam Exploration and Production Corporation (PVEP) is scheduled for privatization in 2025, when it is expected to have reported three straight years of profitable operations.

The number of businesses where PVN holds a 100 percent stake will be reduced from five to two.

The reform is also set to lower the number of businesses where PVN owns more than 50 percent of the shares from 11 to eight, and businesses where it holds less than 50 percent from 12 to eight.

These include keeping 32 percent of Vietnam’s share of profits earned by foreign companies or joint ventures that extract from oilfields located in Vietnamese waters. The share in 2018 is 28 percent.While promising radical changes to ensure its efficient running, PVN also asks for government approval to enjoy special mechanisms.

PVN also seeks permission to keep half the money it gets from privatization or divestment deals for reinvestment into other businesses, and to spend 17 percent of its revenue on further oilfield surveying.

The oil and gas group looks to issue US$500 million worth of bonds in 2020 and put one coal-fired power plant up for sale until then to balance its cash flow.

Prosecution of former executives

A Hanoi court last month handed 18 years of imprisonment to PVN’s ex-chairman Dinh La Thang for his involvement in a multimillion-dollar loss at the oil and gas group where he was the top leader between 2008 and 2011.

Former PVN deputy general director Nguyen Xuan Son, chief financial officer Ninh Van Quynh and four former members of its board of members were also sentenced to between 15 months in non-custody and 23 years behind bars in the same case.

The defendants were found guilty of economic mismanagement in the loss of VND800 billion ($35.2 million) worth of PVN investment in local lender OceanBank.

Thang, along with PVC former chairman , PVC former general director Vu Duc Thuan and 20 other defendants had stood trial for violating state regulations on economic management and embezzlement of property.In January, Thang was condemned to 13 years in prison in another case involving his wrongdoings as chief of PVN that resulted in losses of VND119 billion ($5.24 million).

Thanh was penalized with lifetime imprisonment, while Thuan was sentenced to 22 years in prison for serious violations.

The other defendants received jail terms ranging from 17 months to 16 years, some being given non-custodial sentences.

Dinh La Thang was previously a member of the Politburo, the all-powerful body of the Communist Party of Vietnam, from January 27, 2016 to May 7, 2017.

He was also secretary of the Ho Chi Minh City Party Committee from February 5, 2016 to May 10, 2017.

Source: Tuoi Tre News

More foreign brands franchised to Vietnam

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More Asian brands, particularly those from Southeast Asia, have been franchised to the Vietnamese market, with seven foreign franchises licensed in Vietnam this year.

According to franchise data on the website of the Ministry of Industry and Trade, the most recently licensed company is the U.S.-based KF Tea Franchising LLC, which was licensed on April 3.

Last month, MCOSTAR of South Korea specializing in catering and accommodation business and Ten Ren Tea of Taiwan got franchise licenses. Three companies licensed in January are from the U.S., Japan and Singapore, and active in dining and massage services.

Data of the ministry also showed that 203 companies have been licensed to franchise hundreds of brands in Vietnam since 2007 in a wide range of areas but mostly catering.

Of these, 7-Eleven was registered in 2015 but its stores were just opened last year. FamilyMart arrived in Vietnam long ago but has recently started franchising its convenience stores.

These statistics do not reflect the actual picture of the franchise market. There are brands active on the domestic market but they are not yet included in data.

According to Nguyen Phi Van, chairwoman of Retail & Franchise Asia and founder of World Franchise Associates, foreign brands will continue flowing into Vietnam in the next three years. However, Vietnam’s franchise market is still in its infancy as franchise activities began to be active in 2009.

Van said Vietnamese investors, if spending much on franchises, will need to focus on operations. Meanwhile, those spending little have to accept the fact they need to work with franchisers to build complete franchise models.

Source: Saigon Times

Hoa Phat Group and Bisuco accused of environmental pollution again

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The factory in the photo belongs to Hoa Phat Group’s Hoa Phat Steel Integrated Complex in the northern province of Hai Duong. This plant is located near a residential area in Kinh Mon district’s Duy Tan Commune.

According to locals, the smoke from Hoa Phat factory’s chimneys is suffocating during the night hours. They said that despite closing all doors and windows, they still cannot sleep. Furthermore, the factory also releases iron filing, affecting local people’s food and drink.

In addition, the factory’s sewage is directly poured into the Kinh Thay River, massively polluting the locals’ water supply. This seriously affects their farm products and plants, limiting the local economy.

However, Hoa Phat Group completely denied accusations of environmental pollution. The group admitted that the photos of chimneys releasing smoke are real, but that was because the plant stopped blast-furnace No.2 for maintenance and upgrade. To support its claim, the group submitted a document on stopping the blast-furnace to the local authority.

Not only Hoa Phat Group, but also many enterprises were revealed to cause serious environmental pollution through violating regulations. Binh Dinh Sugar JSC (Bisuco), 97 per cent held by Indian-based NIVL JSC, has just been suspended for this very reason.

Ho Quoc Dung, Chairman of the Binh Dinh People’s Committee, said that Bisuco caused serious pollution by directly eliminating sewage into the Kon River. The local authorities have many times warned and directed the firm to fix its violations, but went unheeded.

Lately, on April 9, the Thanh Hoa Environment Police caught workers of Nam Canh JSC (specialised in producing pulp and votive paper) discharging wastewater directly into the Ma River.

On March 31, the Hung Yen Department of Irrigation and the Hung Yen Environment Police caught workers of an abrasive company discharging wastewater into the North Hung Hai irrigation systems.

Source: VIR

Being a shipper in Vietnam: instant but not easy money

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Delivery men on motorbikes, known locally as “shippers,” are becoming more common in Vietnam.

Countless “shippers” snake their way through Ho Chi Minh City’s traffic every day to deliver goods to eagerly awaiting customers.

But as with most jobs, the delivery business is not a walk in the park.

At the end of his sophomore year, Phan Van Dao’s parents bought him a motorbike.

That was three years ago. Since then, Dao has spent his days receiving orders via cellphone and transferring goods to customers.

Every now and then, Dao’s work day stretches to 11:00 pm as he battles traffic and picks up late orders.

Though his work hours are spent driving through dusty streets on hot, sunny days and battling floods in the rain, the flexibility is just one of the reasons Dao has stuck with shipping.

Nguyen Hoang Hai is also a keen shipper.

“We make up to ten deliveries every day so we need to be constantly picking up and delivering goods until late at night. Sometimes we even have to leave unfinished meals to pick up delivery orders from customers. After driving around the city for a whole day, our faces are covered with dust. At least we can wash our faces. I can’t even imagine what is going to happen to our lungs,” Hai joked about his experience.

Like any other job, shipping is not always smooth sailing.

At times, Dao is in such a rush to deliver packages that he runs a red light and is stopped by the police, turning a VND15,000 (US$0.7) payday into a VND300,000 ($13) fine and complaints from angry customers about a lack of punctuality.

But racing against the clock is normal for a delivery driver. Certain parcels need to be delivered within two hours – barely enough time for the shipper to get to the warehouse, pick up the parcel, and make it to the customer.

Beating other shippers to accepting is another added stress of the job. A driver who takes his eyes off the app for just a few moments may miss the chance for a lucrative payday.

The riskiest part of the job, however, is delivering food.

Being in a hurry has led to several situations in which Dao let the food become too messy for the customer to accept the delivery. In those cases, he is forced to eat the food himself to keep it from going to waste.

Another challenge these delivery men face is traffic jams.

“Traffic jams are the scariest,” Dao says.

“I usually calculate just enough time [for the parcel to be delivered], but when I see a traffic jam I know I am in trouble. It is alright when the customers are easy-going, but some demanding customers refuse to pay for the goods and the delivery service. Even if they do, I am still marked in the system as ‘late.’ I receive a penalty if that occurs too often.”

On the other hand, being a shipper does have its perks.

“Working as a delivery man, I do not have to wait until the end of the month to be paid because I’m paid directly after delivering the goods. It is a really good feeling to have the money in my hands, but there are times I have to pay the price,” Dao says.

According to Hai, a hard worker can make a considerable monthly income in the shipping business. On the flip side, bigger paydays come with bigger competition.

“I didn’t accept delivery orders made late in the night or ones with low shipping fees and bigger deposits. However, these days I pick them all or else other shippers might take the offer. There are even freelance shippers who agree to lower prices,” Hai said about his job.

Source: Tuoi Tre News

Vietnam shelves IPO of pay TV player VTVCab after tepid investor response

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VTVCab, one of Vietnam’s largest pay-TV players, is cancelling its initial public offering (IPO) on April 17 after only one investor registered to attend the auction, according to an announcement by the Hanoi Stock Exchange.

The proposed IPO, which was announced last month, was to see the government offload a 47.8 per cent stake in the firm. At a starting price of VND140,900 ($6.23) per share, the government was hoping to raise at least VND6 trillion ($264 million) from the IPO.

According to local media reports, the IPO of VTVCab was deemed unattractive by investors due to what was seen as a higher-than-merited starting price, given the firm’s recent performance. The company recently had drew the ire of its customers after deleting a few popular channels, leading some to switch to its competitors.

VTVCab’s IPO has been beset by problems. In 2015, Vietnam Television (VTV) proposed to divest its interest in three pay TV units — VTVCab, SCTV and K+ — to improve operational efficiency and maximise shareholder value.

However, the privatization process got delayed due to difficulties in asset valuation. Recently, the Prime Minister agreed to extend the deadline for VTVCab’s IPO to June 30, 2018.

VTVCab, wholly-owned by the leading state-owned broadcasting agency in VTV, has become one of the country’s largest pay-TV players in terms of subscribers. Launched in 2012, it broadcasts 200 channels in cooperation with other television service providers.

- Quynh Nguyen, Deal Street Asia.com

‘Bun dau mam tom’: just another stinky delicacy in Vietnam

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Bun dau mam tom, a dish including a stinky sauce and tofu, is a definite must for daredevils undisturbed by the idea of pungent shrimp paste.

As the name suggests, the dish includes bun (rice vermicelli, usually fresh and served without soup), dau (tofu, usually in crispy brown fried cubes), and mam tom (a smelly shrimp paste that can knock out unprepared epicureans on first contact).

What sets this dish apart from other foods with the same vermicelli content, firstly, is the type of noodle used.

Unlike other soup dishes, where the noodles are separated, the noodle used in bun dau mam tom is served in chunks.

It is known as bun la, a kind of noodle pressed into patches and chopped into cubes measuring about two fingers long, giving them a hard, firm texture.

‘Bun dau mam tom’ restaurants in Saigon tend to have a northern-style decor. Photo: Tien Bui

These noodle cubes also make it easier to dip them in shrimp paste, which tends to drip on tables or clothes if the stripes are not well connected.

The other ingredients for bun dau mam tom, however, are not restricted to tofu only. Eaters can choose from com (a kind of green rice pork nugget), cha gio (spring rolls), thit heo (steamed pork), or long (steamed pig offal).

Bun dau mam tom is served with cucumber slices and an assortment of herbs.

The dish is usually served on a met, a round-shaped bamboo-made flat container, typically used to present food in the north.

The key to its success, however, is the magical shrimp paste – the very soul of the delicacy.

The paste is often served in a palm-sized bowl filled about halfway. Diners are given a pot of sugar and a basket of kumquats for extra seasoning.

For each bowl of shrimp paste, two kumquats and three teaspoonfuls of sugar should do. Whisking the mixture afterward combines the different scents into a wholesome, pungent dip.

A serving of ‘bun dau mam tom’ offered at VND 60,000 ($2.5) at Bun Dau 60, 38 Tran Quang Khai Street, District 1 on April 9, 2018. Photo: Tien Bui

Where to find it?

Most major cities in Vietnam have restaurants specializing in the dish.

In the capital city of Hanoi, bun dau mam tom is a mundane daily energy boost for the average laborer and low-income inhabitants.

Alleyway peddlers set up compact kitchens in narrow corners where they attract packs of eaters who come, eat, and rush back to work.

The pleasure of picking each noodle cube, dipping it in the aromatic shrimp paste, and feeling its effect on every single taste bud on a chilly day in Hanoi is a sensation most locals would agree cannot be beaten.

Yet, those same eaters, whatever their size, still need to deal with the sometimes uncomfortable feeling of squeezing onto a tiny plastic stool while pulling their legs together so as to save space for others.

To fill one’s stomach, a dish of bun dau mam tom should cost roughly VND15,000 (yes, less than one dollar!) for a basic tofu-only version.

One typical place is Bun Dau Viet at 27/29 Hang Khay, Hoan Kiem District, in the Old Quarter, where prices are VND15,000-33,000 ($0.5-1.5) per plate.

First timers here will probably feel claustrophobic in the small eatery, but will quickly forget their discomfort once the food hits their mouth.

In Saigon, the bun dau mam tom may taste the same as its northern counterpart, but the eateries are a whole different ball game.

‘Bun dau mam tom’ often comes with crispy fried tofu. Photo: Tien Bui

Given the burning heat in the city, it can be absolutely disastrous to peddle around selling noodles with shrimp paste as the paste will quickly spoil.

For this reason, restaurateurs in Saigon serve the dish in spacious indoor areas with finely decorated and neatly arranged tables and chairs.

The last few years has seen a noticeable rise in the number of bun dau mam tom restaurants in the city, some of which are listed below.

Those residing downtown can drop by Bun Dau Co Khan at 102/26 Cong Quynh Street, District 1. A hotspot for the dish since it opened in 2013.

Its owner is Trang Khan, a well-known model and actress in Vietnam. As a northerner, she has grown making delicious shrimp pastes.

Her eatery attracts the locals with its combination of hefty servings and humorous quips for its owner. If her restaurant ever went under its clear she would have a shot at stand-up comedy.

Prices at Bun Dau Co Khan range from VND50,000-110,000 ($2-5).

Heading north from downtown, shrimp paste cravers can stop at Bun Dau 60 at 38 Tran Quang Khai Street, District 1. The spacious restaurant is a little more upscale, with a peculiar northern-style decor.

Source: Tuoi Tre News

Macau and Vietnam ink tax evasion agreement

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The agreement to avoid double taxation and prevent tax evasion in matters of taxation between the Macau SAR the Socialist Republic of Vietnam was signed on Monday

Macau (MNA) – The Macau SAR Secretary for the Economy and Finance, Lionel Leong Vai Tac, and the Finance Deputy Minister of the Government of the Socialist Republic of Vietnam, Do Hoang Anh Tuan, have signed on Monday the agreement to avoid double taxation and prevent tax evasion in matters of taxation.

The taxes applying to the agreement include, in the case of the MSAR, the professional tax, the supplementary income tax and the urban property tax. In the case of Vietnam, the taxes applying comprise the personal income tax and corporate tax.

In particular, the agreement – which was first announced on April 9 – celebrates reciprocal clauses which concede fiscal benefits in regard to income from property, profits of affiliated companies, dividends, interest, royalties, property transfer income, pensions, public services, payments and income of students and apprentices.

The Financial Services Bureau stated that the signing shows the importance attributed to the ‘increase of fiscal transparency and preventing double taxation’ by strengthening the bilateral co-operation relationship between the MSAR and Vietnam, while providing better conditions for the development of economic and trade co-operation between the two parties.

- By Sheyla Zandonai - MNA

Destination Vietnam

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Country’s investment attractiveness is on the rise, helped by carefully planned areas such as Binh Duong.

Continuous inflows of foreign direct investment (FDI) to Vietnam have helped fuel economic growth of around 7% annually and are transforming the country into a key manufacturing centre in Asia with robust exports.

Modern infrastructure and a carefully planned new city in Binh Duong have helped the province attract more investment than any other location in Vietnam except Ho Chi Minh City. Photo courtesy of Becamex IDC

While the majority of investments have flowed into Ho Chi Minh City, a small province located just north of the country’s largest city has emerged as a new investment destination and manufacturing hub.

Located at the centre of the Southern Key Economic zone, around 40 kilometres from Ho Chi Minh City and Saigon Port, Binh Duong province boasts smart city planning, high-tech industries, new industrial zones and gross domestic product (GDP) growth surpassing the national average.

“The Vietnamese government and provincial leaders have attempted to make Binh Duong an ideal place for business and investment by creating a conducive environment for foreign investors,” said Bui Minh Tri, chairman of the Binh Duong Industrial Zone Authority.

After 20 years of development, Binh Duong is now surpassed only by Ho Chi Minh City in terms of investment value, he added.

As of October 2017, Binh Duong had attracted more than 3,000 foreign-backed ventures worth a cumulative US$29.5 billion from 60 countries, accounting for 9.4% of the total FDI capital pledged to Vietnam. The province’s GDP growth was 14%, surpassing the national rate of 7.5%.

“The industrial zone in Binh Duong is an ideal manufacturing hub and investment destination close to Ho Chi Minh City,” said Piyakul Suwansumrit, the Thai representative in Binh Duong of Becamex IDC, a state-owned industrial estate and infrastructure development conglomerate. “The province is equipped with developed transport and telecommunication infrastructure, power and water systems and smart urban planning.”

Strategically located in Ben Cat district, 30km from the airport and 40km from the port, Binh Duong New City is accessible by National Highway 13 — a six-lane highway that connects to major routes nationwide — with convenient public transport including buses, rail and metro lines.

“The proximity to major transport hubs will help businesses reduce logistics costs substantially in comparison to other existing transport routes,” said Mrs Piyakul.

Currently, Binh Duong is home to 29 industrial parks spread over 10,000 hectares with an occupancy rate of 71%, according to the investment consultancy Dezan Shira & Associates. In addition, there are 11 industrial clusters covering 802 hectares with an occupancy rate of 55%. The provincial government’s master plan calls for an additional 34 parks covering 15,000 hectares by 2020.

My Phuoc Industrial Park (MPIP), a 7,400-hectare industrial zone developed by Becamex in Binh Duong, is now home to 450 companies from 34 countries, representing an investment of $5.4 billion. They include Tokyu Corp, Colgate-Palmolive, Kingtech, ECS Electronics, Vinamilk, Kubota, Lotte, SAB Miller and Kumho Tire, to name a few.

“The key to Binh Duong’s success as the industrial estate is the collaboration between the private and public sectors with international cooperation,” Mrs Piyakul said.

With the aim to become the country’s premier “smart city”, provincial leaders have collaborated with international businesses and research institutes to create an enhanced urban ecosystem, improve transport and infrastructure and attract high-tech manufacturing industry with less-labour intensive and more environmentally friendly industries.

“Smart urban planning is an attractive characteristic that makes Binh Duong an outstanding location for businesses and residents,” added Mr Tri.

Working with Intelligent Community Forum (ICF), a New-York-based group that helps to design inclusive, sustainable and livable cities, and Brainport Eindhoven, a leading Dutch technology company, the Vietnamese government designed Binh Duong New City based on a “triple helix” concept that focuses on innovation driven by universities, industry and government, with an international university and citizen-friendly one-stop government services.

“Binh Duong is an emerging city with rapid growth. It’s now an attractive FDI destination for technology and manufacturing,” said Kriengkrai Thiennukul, vice-chairman of the Federation of Thai Industries (FTI).

Several Thai companies have established footholds in Binh Duong, among them the Siam Cement affiliate Vina Kraft Paper Co Ltd, Srithai Vietnam, BJC Vietnam and Toshiba Vietnam, he added.

POSITIVE OUTLOOK

Vietnam will continue its growth trajectory and attract more global investors over the next decade, experts agree. Key driving factors are the size of its domestic market of 93 million with an abundant young workforce and rising middle class, increasing political stability with a strong government socio-economic development plan, competitive production costs and favourable trade agreements across Asia.

“Vietnam’s economy is growing robustly with strong fundamentals. The country offers great business opportunities in a vast array of industries,” said Tharabodee Serng-Adichaiwit, general manager of Bangkok Bank Vietnam. “With economic development at full speed, GDP in Vietnam will skyrocket with the economy tripling its size within a few years.”

The economic crisis in 2012 has long gone and the government has brought inflation under control while continuously improving infrastructure, he added.

The banking industry in Vietnam has become much healthier, thanks to prudent control by the State Bank of Vietnam, resulting in stable foreign exchange and low interest rates. Currency depreciation in the past (2008-11) was very high, from 6-8%, but since 2012 the rate has been stable at around 1% or even less. The Big Three credit rating agencies — Moody’s, Fitch and S&P — have a positive and stable outlook on the country.

The middle-class and affluent consumer (MAC) population will also explode in size between 2014 and 2020, from 12 million to 33 million, according to Mr Kriengkrai. Increasing purchasing power will lead to higher demand for high-quality goods including imports.

“The young local population will have a higher income and there will be an expansion of the middle class from 10% to 30%. Vietnam will experience more urbanisation and modern trade, more consumption and real estate development,” added Mr Tharabodee.

“This is the phenomenon of middle class consumption that will happen in Vietnam. Investment and consumption will skyrocket and exports will follow.”

Income per capita has already grown 3.5 times since 2004, doubling every three years from $607 in 2004 to $2,185, said Mr Tharabodee, citing data from the Asian Development Bank (ADB).

The consumer finance sector is also taking off, with outstanding credit of $25.5 billion in 2016, compared with $10.5 billion two years earlier, according to Stoxplus data.

Bilateral trade between Thailand and Vietnam, meanwhile, has grown enormously and will continue to expand, with further reinforcement by both governments.

“Vietnam is Thailand’s second-largest trading partner in Southeast Asia, while Thailand is Vietnam’s largest trading partner in the region,” said Tran Thi Thanh My, commercial counsellor with the Trade Office at the Embassy of Vietnam in Thailand. “Last year, bilateral trade reached $15.2 billion and is expected to reach $20 billion by 2020.”

The country also has attractive import and income tax incentives that apply to a variety of industries and projects, she added. Production costs and capital investment are also cheaper in Vietnam, making it a competitive production base with young, growing and educated workforce.

“The overall capital investment cost in Binh Duong compared to Thailand is about 1.5 times cheaper as the starting salaries for certain professions are much lower than in Thailand,” said Bunjong Chawalitruangrith, assistant vice-president of KSP Vietnam Co Ltd, a unit of Thailand’s Charoen Pokphand (CP) Group.

NO EASY BREAKTHROUGH

Despite the lure of a positive economic outlook, experts point out that entering the Vietnamese market takes time and dedication. Businesses must carefully study local regulations and culture in order to be successful.

“The execution is the most difficult part. It takes a lot of time and patience to learn and understand how to do business in Vietnam. Many businesses face losses in the first few years before being able to gain momentum,” said BBL’s Mr Tharabodee.

Among the key success factors, he said, is knowing and respecting local regulations and getting on the ground to thoroughly understand the Vietnamese culture.

“Go regional but know the locals and never assume things,” advises Montri Mahaplerkpong, deputy country director of SCG in Vietnam, who has led Siam Cement’s operations in the country for several years.

Businesses also need to understand how geopolitical factors have resulted in quite distinctive sets of beliefs and attitudes in the northern, central and southern parts of the country, along with completely different consumption patterns and preferences.

Networking is also very important, he said: know the locals and learn what is the right thing to do.

In terms of regulation and enforcement, authorities in Vietnam are stricter than those in Thailand so foreigners must carefully study the rules and abide by the laws. Locating within economic and industrial zones is highly recommended.

“Doing business outside industrial parks and economic zones is really a tough challenge,” said Mr Montri. For example, that could involve relocating hundreds of families, temples, graveyards and also searching for unexploded bombs from the US war of nearly 50 years ago. “So, try to stay in the industrial areas.”

While businesses may not experience an easy start, the hard work will pay off later.

“The growth in Vietnam is real, not a bubble. In the beginning, it was very difficult to do business there, but three or four years later, our business grew 200-300%,” Mr Bunjong noted.

- By TANYATORN TONGWARANAN, Bangkok Post

Veteran French MMA boxer with a strong love for Vietnam

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As the veteran French Mixed Martial Arts (MMA) boxer Arnaud Lepont defeated the Filipino finalist Richard Corminal at the One Championship organized at the end of 2017 in Singapore, the Frenchman held up the Vietnamese flag to celebrate his victory.

Lepont, 37, began his career as a professional MMA boxer 13 years ago, holding a record of 12 wins and five defeats on the ring.

He started to learn karate when he turned five in his home country, France.

Since practicing the Japanese martial arts, Lepont has also begun to love and learn about Asian cultures and other Asian martial arts.

Arnaud Lepont (L) trains at an MMA center in District 2, Ho Chi Minh City. Photo: Tuoi Tre

“To me, the East is full of mysteries waiting to be explored,” Lepont said.

“I began to visit several Asian countries 10 years ago and have fallen in love with the lifestyle of Asian people ever since.”

Lepont first visited Vietnam in 2010, traveling to Malaysia and Thailand to work before coming back to Vietnam in 2014 to teach at a martial arts center in Ho Chi Minh City.

The French boxer is married and has a son in Vietnam.

“I have been living for many years in Vietnam and currently has a stable job and a family here,” Lepont said.

“Although I was not born in Vietnam, I always feel like I am a Vietnamese and I would like to become a Vietnamese citizen in the future,” the Frenchman explained the reason behind his holding up the Vietnamese flag at the One Championship last year.

Arnaud Lepont (L) trains at an MMA center in District 2, Ho Chi Minh City. Photo: Tuoi Tre

When Lepont was young, he suffered from attention deficit hyperactivity disorder, a mental problem in children and teens, and he was sent to learn karate by his father, which somehow helped treat his medical problem.

“When my son grows up, I will also let him learn Asian martial arts,” Lepont said.

The French MMA boxer has spent time learning Vovinam and other traditional martial arts of Vietnam.

Lepont hoped that MMA fights will soon be legalized in Vietnam, as there are an increasing number of qualified practitioners of this particular martial arts form in this country.

Although reaching a retirement age for a martial arts professional, Lepont never ceases learning and in 2017 he obtained a black belt in jiu-jitsu, a Brazilian martial arts genre similar to judo.

Besides his love for martial arts, the French boxer has spent time learning Vietnamese and how to cook Vietnam’s traditional dishes.

Source: Tuoi Tre News

DSWD Receives Rice Donation from Vietnam for Distribution to Marawi IDPs

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The Department of Social Welfare and Development (DSWD), through its Field Office 10, received a total of 200 metric tons or 200,000 kilos of rice from the Government of the Socialist Republic of Vietnam intended for distribution to the internally displaced persons (IDPs) of Marawi City who will be returning home.

His Excellency Ly Quoc Tuan, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the Philippines, handed over the donation to DSWD Undersecretary for Legislative Liaison Affairs and Special Presidential Directives in the Mindanao Region Luzviminda Ilagan, and Southeast Asia Division I Director Marford Angeles of the Office of the Asian and Pacific Affairs, Department of Foreign Affairs (DFA) in a ceremonial turnover at the DSWD Warehouse, Dalipuga, Iligan City, April 5.

DSWD Field Office 10 Regional Director Nestor Ramos recognized the support of the Government of Vietnam for the families affected by the Marawi armed conflict.

“We appreciate your trust and confidence in us to manage the distribution process of the donation in collaboration with the Local Government Unit of Marawi. Your generosity will go a long way in the provision of needed relief for internally displaced residents of Marawi,” Ramos said.

The 8,000 sacks of rice weighing 25 kilos each are now at the DSWD Warehouse in Iligan City.

The donated rice will be turned over to the LGU of Marawi, which in turn, will be distributed to the returning IDPs in their city.

- eor/DSWD 10

Japanese investment in Vietnam on the rise

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Even not in Top 3 FDI in Q1, Japanese Corporations still invest strongly and long-term in Vietnam

Leaving the top 3 FDI inflows in Q1/2018, Japan remains the leading FDI “Asian Tiger” by sectors and clusters, according to FDI market – Foreign Investment Agency (Mistry of Planning and Investment)

Industry, processing, manufacturing attract large projects.

According to Q1 report/2018 of Foreign Investment Agency (MPI), in term of FDI partners, capitals of new registrations, increase the current commitments and capital contribution, share repurchase in first 03 months of the year reached 5.8 billion USD, total disbursed capital is 3.88 billion USD. Three leading countries of FDI this time is Korean – No 1 investor in Viet Nam in 2017, followed by Hong Kong and Singapore.

It can be seen that Asian countries have been standing in the top 3 FDI in Vietnam for many years, and they have maintained their leading positions or surpassed by large-scale industrial investment projects.

Typically, South Korea has a factory project LG Innitek Hai Phong adjusted to increase investment capital 501 million USD, Kefico VN (joint venture with Germany) adjusted the total investment capital of 120 million USD; Hong Kong has a project of Regina Miracle International Vietnam Co., Ltd. increased capital to $ 260 million; Singapore has a licensed $ 150 million Hanbaram wind power plant project.

Japan, the second largest FDI investor in Vietnam in 2017, despite temporarily withdrawing from the top 3, still has a large accumulated capital (after South Korea) with a total registered capital of over USD 50 billion and the cumulative number of about 3,700 investment projects

Japan still has a high proportion of FDI origin

Especially, in the process of long-term FDI investment, according to the draft FDI attraction strategy for 2018-2018, which is being consulted by the Foreign Investment Agency for the second time, Top 14 leading countries of FDI origin by sector and strategic clusters, Japan still topped the “Asian tiger” pouring capital into Vietnam, accounting for 22.4% of origin, standing before the US, UK, Germany, Korea and Singapore (source: FDI Markets 2017-Draft).

According to the calculation from the FDI Markets database to the end of 2017, the picture of authentic FDI origin is attracting effective investment capital from Japan and Korea. This is the basis for the strategic orientation of attracting new generation FDI, with a proactive investment promotion plan that will attract potential investors into the priority areas identified as the focus. Looking for
new investors, of course Vietnam will still have to make efforts to attract, retain and engage with strategic investors.

On investor side, pledged to continue long-term investment and focus on sectors, clusters, strategies and priority areas of long-term that have significance impact and sustainable development with Vietnam’s economy,Mr. Maeda Shigeki, Vice Chairman of the Foreign Trade Promotion Agency (JETRO VN), in a recent exchange in 2018, shared that the Government of Japan has continued to promote the Abenomics policy, investing in international markets in which a key focus is Vietnam; in parallel continue to develop country to become one of the most favorable investment environment in the world.

Long-term commitments

JETRO’s survey also said that up to 70% of Japanese enterprises in Vietnam have the motto “Expanding operations” – a high rate compared to other countries. Japanese enterprises are also expected to continue to receive support from the Government of Vietnam, including efforts to improve the barriers and risks faced by FDI enterprises, such as increased labor costs. , incomplete legal system, unclear application, taxation and taxation procedures or complicated administrative procedures.

Mr. Masashi Mochizuki – Senior Director, in charge of Japanese Customer (Eximbank-EIB, reps from shareholder Sumitomo Mitsui Banking Corporation -SMBC), said through financing, investment and lending activities Japanese businesses are investing in the market, he noted that Vietnam is still a “first priority” market of many Japanese enterprises.

Mr.Masashi Mochizuki – Head of Alliance Department

“Since the beginning of the strategic partnership in 2008, EIB and SMBC have started collaboration business for Japanese Investors in Vietnam. Major part of Japanese investment has been occupied with 100% FIE establishment, therefore, EIB has focused more to support such FIEs by local cash management products, such as payroll service, ATM and cash handling service, in the business field where local banks have advantages in comparison with foreign banks. At the same time, EIB has imported Japanese technology and know-how from SMBC to improve its service quality, and this strategy; “Local Service with Japanese Spirit” has been accepted and appreciated by many Japanese companies and individuals. Accordingly, both customers’ number and transaction volume keep on increasing, e.g. corporate banking business volume for Japanese customers increased by 65% in 2017 in compare with 2016”

Also from Mr. Mochizuki’s opinion, Japanese investment activities are expanding to varieties of business fields, and modes of investment started diversified, namely, cases of stock investment, capital injection and JV establishment are increasing. In this trend, EIB recently started a new service structure supporting Japanese investors for their administrative process of stock investment or capital injection to Vietnamese local companies. Because such investment modes are still new in the market, transaction process and administrative practice are not yet well-organized, and it makes Japanese investors confused and hesitate to make investment.

Share more with Enternews Newspaper, Mr. Yutaka Moriwaki – BOD Director, Senior Director and Head of Restructuring Project of Eximbank, came from beside the role of strategic shareholder accounted for 15% shares. SMBC has two branches in Vietnam namely Hanoi Branch and Ho Chi Minh City Branch, mainly engaged with corporate banking business, project & trade finance. In its strategy, besides management contributions and direct participation in restructuring Eximbank to protect the interests of clients, shareholders and the staff, while contributing to the support of Japanese customers and SMBC activities in Vietnam. The bank identified Vietnam as one of SMBC’s most important markets in its Asia development strategy

Mr.Yutaka Moriwaki – a member of BOD, head of Project Management Office

In addition to SMBC, in particular in the financial sector, large corporations such as Mizuho, a strategic partner of Vietcombank, also affirmed their long-term commitment to the Vietnamese market. An Economic Assessment: In the Abenomics strategy of Japan and the beginning of the third wave of investment in Vietnam, the Japanese have been able to “place” large industrial, manufacturing and manufacturing projects. And this is the period when Japan’s financial services, business support, small and medium will follow, making “satellite” support for the Japanese manufacturing network. Accordingly, he said that Japanese FDI has not “stepped back”, which in fact has transformed into a new era, deep-rooted and stronger in the market.

Source: Enternews

Vietnam’s ex-Uber drivers shun Grab in favor of local competitors

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‘I would rather quit being a driver and find another job than work for Grab.’

Former Uber drivers in Vietnam are migrating towards domestic competitors instead of joining ride-hailing firm Grab, which acquired Uber’s Southeast Asian operations last month.

Many have opted for firms that offer similar services to Grab, such as Mai Linh and Vato, saying they want to support local businesses where they hope to receive better treatment.

Ho Huy, president of Mai Linh, said Uber drivers have been signing up to work for his company since last month, with more coming every day.

“At first, there were only a couple of drivers who came to sign up with us. Now we get hundreds of them on our best days,” he told VnExpress.

Tran Thanh Nam, CEO of ride-hailing app Vato, said about 5,000 drivers had signed up to work for his firm in just two weeks, ever since word got out at the end of last month that Grab was acquiring Uber, media reports said.

Vo Van Phu, a former Uber driver in Ho Chi Minh City, said he felt “sad” about Uber leaving Vietnam as he was applying to work for Mai Linh on Friday.

“The drivers are just looking for whoever’s offering decent treatment and a decent income,” he said.

At the Mai Linh office, former Uber driver Nguyen Thi Thuy said she had considered working for Grab when Uber left Vietnam, but she chose Mai Linh instead “because I wanted to support Vietnamese brands,” she said.

Anthony Tan, CEO of Grab, said in early April that he would not manipulate prices or take advantage of its driver after the acquisition, as cited by the BBC.

In January, Grab and Uber drivers staged protests outside the ride-hailing companies’ offices in Hanoi after both companies increased the cut they took from drivers’ fares.

Both Grab and Uber raised the cuts they take from 20 to 25 percent.

With Uber now out of the way, drivers are worried that Grab could raise its cut even further.

Nguyen Van Thang, 28, who used to drive for both Grab and Uber, said: “The takeover is bad news. Without competition, they could ask for higher commission and reduce their support.”

Thang said many drivers used to switch between Uber and Grab, depending on the incentives they were offering. “Now we don’t have a choice. We will have to take whatever incentives Grab offers,” he said, as cited by media reports.

Nguyen Duc Thanh, head of the Vietnam Institute for Economic and Policy Research, said Grab is likely to start manipulating the price in a market with no direct rivals. “By monopolizing the market, Grab will become powerful,” he said.

Vietnamese transport companies are also stepping up their games in the wake of Grab’s takeover of rival Uber’s Southeast Asia business.

Mai Linh has announced to cut drivers’ commission by only 15 percent.

To attract more potential drivers, it has promised to provide free uniforms for drivers who generate a revenue of over VND2.5 million ($109) in the first month.

The firm has also offered six months free healthcare for its drivers, and guaranteed it will not raise prices during rush hour, something that sets it apart from Grab which often changes trip prices multiple times during a day.

Meanwhile, Vato’s ride-hailing app has a unique price bargaining system that sets it apart from other apps, a company representative told local media.

Ride-hailing firm Uber Technologies Inc announced it had agreed to sell its Southeast Asian business to bigger regional rival Grab at the end of last month. The app company officially left Vietnam on April 8, and Grab has pledged to offer all former Uber employees new contracts.

Vietnam is investigating whether Grab violated the Competition Law in its acquisition of Uber, the Competition and Consumer Protection Department under the Ministry of Industry and Trade said on Friday.

The investigation will take 30 days and comes after Grab failed to provide adequate evidence to prove that it hasn’t formed a monopoly in Vietnam.

By VnExpress

Why Samsung of South Korea is the biggest firm in Vietnam ?

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THE Samsung Electronics factory in Thai Nguyen, in northern Vietnam, employs more than 60,000 people. Its three canteens serve some 13 tonnes of rice a day. It churns out more mobile phones than any other facility in the world. It and Samsung Electronics’ other factories in Vietnam produce almost a third of the firm’s global output. The company has invested a cumulative $17bn in the country.

But Samsung is as important to Vietnam as Vietnam is to it. Its local subsidiary’s $58bn in revenue last year made it the biggest company in Vietnam, pipping PetroVietnam, the state oil company. It employs more than 100,000 people. It has helped to make Vietnam the second-biggest exporter of smartphones in the world, after China. Samsung alone accounted for almost a quarter of Vietnam’s total exports of $214bn last year.

All this has been a huge boon to Vietnam’s economy. Despite unflattering reports about working conditions in Samsung’s factories, Thai Nguyen and another nearby province that hosts one, Bac Ninh, have become two of the country’s richest. Restaurants, shops and hotels have mushroomed around their industrial zones. The number of local firms listed as important suppliers to Samsung has increased sevenfold in the past three years.

And Samsung is just the biggest South Korean investor in Vietnam. Of the $108bn of foreign direct investment (FDI) Vietnam has received since it joined the World Trade Organisation (WTO) in 2007, a third originated in South Korea. LG Electronics, another South Korean giant, makes television screens in a $1.5bn factory in the port of Haiphong. Lotte, a South Korean conglomerate, owns a string of supermarkets.

Vietnam received FDI worth 8% of GDP last year—more than double the rate that went to comparable economies in the region. Foreign-owned firms now account for nearly 20% of the country’s output. They have grown more than twice as fast as state-owned enterprises over the past decade, despite the country’s nominally communist government. The economy grew at 7.4% year-on-year in the first quarter of 2018, one of the fastest rates in Asia.

For Samsung, Vietnam provides an attractive alternative to manufacturing in China. Its workforce is young, cheap and plentiful. That once was China’s appeal, but its workers are now seven years older, on average, and more than twice as expensive as Vietnamese ones. The cheap labour lowers costs in Samsung’s factories, giving the smartphone-maker an edge over Apple in less expensive handsets. Other countries in the region tend to export raw materials or components to China, where they are assembled into other products. Vietnam exports mainly finished goods.

Vietnam is also a valuable hedge against Chinese administrative caprice. Last year the Chinese government organised a boycott of South Korean firms and products to punish the South Korean government for deploying an American missile-defence system. Although the system was intended to protect against an attack from North Korea, China complained it could be used to undermine China’s defences too. The boycott, although now over, alarmed South Korean investors.

Vietnam, in contrast, is liberalising its economy to welcome foreign industry. In 2015 the government opened 50 industries to foreign competition and slashed regulation in hundreds more. It sold a majority stake in the biggest state-owned brewer, Sabeco, to a foreign firm last year. Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors. It is a founding member of the Trans Pacific Partnership, a multilateral trade agreement that includes Australia, Canada and Japan, among others. It is due to sign a trade pact with the European Union soon. The deal it signed with South Korea in 2015 has made it South Korea’s fourth-biggest trading partner.

Moon Jae-in, the president of South Korea, visited Vietnam last month, with business delegates from Samsung and other companies in tow. It was his second trip to the country in less than a year in office. Presidential advisers have expressed the idea that South Korea should not content itself with being a “shrimp among whales” such as China and Japan, but instead become a regional power by embracing smaller allies. That, they claim, would make South Korea more of a “dolphin”, in command of its own fate. In Vietnam, at least, this plan is going swimmingly.

Source: The Economist

Fireworks to mark reunification day, May day in Saigon

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Fireworks will light up the sky of Saigon (HCMC) later this month to celebrate 43 years of the South Liberation and National Reunification Day (April 30, 1975) and the 132nd May Day (May 1, 1886).

Fireworks will be set off from 9pm to 9:15pm on April 30 from the roof of Thu Thiem Tunnel, which crosses the Saigon River, in District 2 and Dam Sen Park in District 11.

The firework displays, to be funded by social sources, will also be broadcast live by the HCM City Television Station.

To mark the upcoming events, the municipal People’s Committee also decided to adorn Le Duan street, Nguyen Hue street and the roundabout of Le Duan and Pham Ngoc Thach streets with decorative lights from April 23 to June 17.

Many cultural and sports activities have also been planned to celebrate the National Reunification Day and the May Day.

The municipal Department of Culture and Sports will organise a cross-country run, an event that has been held for 41 years to mark the South Liberation and National Reunification Day. Meanwhile, the 30th the HCM City Television Cup cycling tournament will also take place on this occasion.

- VNA
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