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

Market volatile on international uncertainty

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Vietnam’s stock market is forecast to struggle due to uncertain market sentiment this week, as external factors increase volatility in the market.

The VN Index on the HCM Stock Exchange ended down 1.35 per cent on Friday to finish last week at 1,157.14 points. The benchmark index saw a week-total fall of 2.51 per cent, or 50 points, after five up-and-down sessions.

Last week saw the hardest fall of the VN-Index since January as blue chips suffered investors’ profit-taking pressure.

The minor HNX Index on the Hanoi Stock Exchange lost 1.69 per cent to close last week at 133.34 points, posting a 3.39 per cent decline for the trading week.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) lost 0.59 to close last Friday at 59.32 points, totaling a five-day decline of 2.17 per cent.

An average of 296.3 million shares was traded in each of the past five sessions, worth VNĐ8.7 trillion (US$381 million). The trading figures were down 2.6 per cent in volume and 21 per cent in value as compared to the previous week.

Phan Dũng Khánh, investment advisory director with Maybank Kim Eng Securities Co., told us that the over the last few days, the Vietnamese stock market was affected by external factors, including fears of a trade war between the US and China, political tension between the US and Russia, unexpected volatility in the global financial market and foreign investors acting as net sellers during four of the five sessions last week.

However, there was also some supportive information in the market such as GDP growth of 7.38 per cent in the first quarter, the best first-quarter performance in a decade, he said.

Listed companies’ Q1 earnings announcements, dividend payment plans and 2018 business plans will be announced and also become short-term supporting information for investors, greatly influencing the market performance.

President Donald Trump has directed his top trade and economic advisers to take a fresh look at the TPP trade agreement from which he withdrew in his first week in office.

According to Bao Viet Securities (BVSC), the move could mark the beginning of a stunning shift for Trump, who railed against the Trans-Pacific Partnership during the campaign.

“The influence of the TPP on Vietnam considerably diminished after the US withdrawal. The return of the US would have a significant impact on the country’s economic growth, especially in sectors where the US is a major export market such as the textiles and leather-footwear industries,” BVSC said in its report.

According to Nguyễn Hồng Khanh, head of market analysis at Sacombank Securities Company (SBS), the banking and securities stocks have been the strongest gainers since the beginning of the year and many stocks have reached the yearly target prices projected in the corporate earnings forecasts.

Many bank shares have risen more than 30 to 50 per cent over the beginning of the year, Khanh said, adding that organisations and individuals are in the process of taking profits.

Among banking stocks, Vietcombank, the Bank for Investment and Development of Vietnam and Vietinbank have gained respectively 25 per cent, 65 per cent and 41 per cent since the beginning of this year.

“In general, I am still confident in these two sectors and the growth momentum of these two groups is still large, especially the group of banking stocks,” Khanh told tinnhanhchungkhoan.vn.

Meanwhile, Khánh said that investors need to be careful when investing in blue-chips during this period of time, adding that they should only invest in stocks with good fundamentals and solid expectations of large profits.

In addition, he said investors can try offloading their stakes in large-cap stocks and shift focus to penny and mid-cap shares, which are currently drawing a large cash flow.

— VNS

Vietnamese homegrown VC ESP Capital to hike its early-stage funding ticket size

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ESP Capital, the one-year-old homegrown venture capital firm in Vietnam, targets to increase investments in pre-seed and seed rounds to $300,000 and hopes to help build the first unicorn in the country, said the firm’s new General Partner.

Le Hoang Uyen Vy (Vy Le), who was featured in the Forbes 30 Under 30 Asia in 2016, quit the CEO position at Adayroi, an e-commerce arm of real estate giant Vingroup, to head ESP Capital as General Partner earlier this month. She hopes to create more opportunities for startups in the early-stage and build the first unicorn in Vietnam.

“Vietnam has not seen a unicorn until now while Singapore, Indonesia, Philippines are spawning many new unicorns in Southeast Asia. Vietnam lacks early stage-focused venture capital funds that motivates ESP Capital to focus on this segment despite many risks,” Vy says.

ESP Capital has invested $1.4 million into total nine startups to date since the launch of its $20-million debut fund last year. She adds that the Vietnam-based VC firm will accelerate the expansion across Southeast Asia, not only Vietnam, and will be deploying capital in startups engaged in sectors such as housing, health, lifestyle and travel.

“Vietnam is listed among the top five ASEAN countries with the fastest increase in the number of middle-class consumers. Meanwhile, the number of young families is growing rapidly that will be the core focus of ESP Capital,” she said, adding that the VC firm will establish a system of portfolio which targets the needs of young families.

Most recently, ESP Capital led a $155,000 funding round in Fitness platform WeFit.vn which helps connect workout enthusiasts with fitness studios across Vietnam. WeFit is ESP’s fifth investment after Canavi, Jamja, Homedy, Luxstay and Cooky.

“Although the portfolio is very diversified, ESP Capital aims at reaching a common goal called “business convergence” in which different startups in the portfolio will create a general value for young people,” Vy says.

In addition to financial investments, ESP Capital also supports founders in strategic planning, operation, and capital mobilization for the next phase. ESP’s biggest goal is to help potential startups to become unicorns, which has a market capitalization of over $1 billion.

Vy graduated as valedictorian of the US’s Georgetown University, Business Administration Faculty. In Vietnam, before serving as CEO for Adayroi.com, she was the CEO of the snack chain Aiya and e-commerce platform specializing in fashion and beauty Chon.vn.

- By Quynh Nguyen, Deal Street Asia

Western Australian man returning from Vietnam is among three people arrested for child porn at airports around the country in just days

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Three people have now been caught with child porn at Australian airports

A 46-year-old was stopped by Australian Border Force officials in Perth

Child exploitation images were found on his mobile phone and laptop

A West Australian man is among three people stopped at airports in as many days for allegedly carrying child exploitation material.

The 46-year-old was returning to Perth from Vietnam when Australian Border Force officials searched a mobile phone and laptop, allegedly uncovering a number of images of child exploitation.

He was charged with importing child exploitation material and is due to face Perth Magistrate’s Court on Friday.

The incident followed two similar intercepts involving international travellers in Sydney and Melbourne on Monday.

A Sierra Leone national, who resides in Indonesia, arrived at Sydney International Airport on a flight from Jakarta after being interviewed there.

Images and videos of child abuse were allegedly found on two mobile phones and the man’s visa was immediately scrapped before he was put on a flight to Jakarta.

The third incident involved a 22-year-old Chinese national whose student visa was cancelled after he was allegedly found to be in possession of child abuse material at Melbourne Airport.

He arrived on a flight from Guangzhou on Monday and was found in possession of two mobile devices containing child exploitation material.

A West Australian man is among three people stopped at airports by Australian Border Force (stock image) in as many days for allegedly carrying child exploitation material

ABF Deputy Commissioner Clive Murray said his team was committed to stamping out the movement of the ‘sickening’ material.

‘Child exploitation is a global issue,’ he said in a statement.

‘We are co-operating with international law enforcement agencies to further investigate this unsavoury character and to prevent any harm to children here or overseas.’

By Australian Associated Press

Three fraud suspects from Taiwan detained in Vietnam

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Eight fraud suspects, including three from Taiwan, were detained in Vietnam on Saturday for their involvement in online telecommunications scams, Vietnamese media reported Sunday.

The identity of the three Taiwanese suspects have yet to be made public, according to Vietnamese media.

The reports said members of the fraud ring have swindled 10 billion dong (US$440,000) from Vietnamese people since February by posing as Vietnamese government officials.

Vietnamese police have stepped up their investigation of the case, suspecting that the group arrested may be a part of a bigger cross-border fraud ring active in Vietnam.

By Flor Wang

Vietnam calls for peaceful settlement in Syria

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Vietnam is concerned about the current situation in Syria and protests the use of force which threatens the normal life of innocent civilians and peace and stability in the region, Foreign Ministry spokeswoman Le Thi Thu Hang said on Sunday.

“We hold that all disputes and differences should be settled by peaceful means on the basis of international law, especially the United Nations Charter, and the principle of respecting independence and sovereignty of countries,” she said.

All sides should also absolutely adhere to the United Nations Chemical Weapons Convention, said the spokeswoman.

The U.S.-led military attacks on alleged chemical weapons facilities in Syria have raised grave global concern, with politicians calling strongly for relevant parties to return to dialogue and avoid an escalation of tensions.

The strikes, launched by the United States along with its allies Britain and France before daybreak Saturday, followed reports of alleged chemical weapons use in Douma near the capital city of Damascus on April 7.

Vietjet among Top 10 Vietnamese Excellent Brands in 2017

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Budget carrier Vietjet Air was honoured as among the top ten strong brands with prestigious development in 2017 at the Golden Dragon Awards & Vietnamese Excellent Brands Festival 2017 – 2018, organised by the Vietnam Economic Times in Hanoi on April 14.

The other top-ten businesses included Sun Group, MobiFone, Hung Loc Phat Real Estate Service JSC, TBS Group, Benthanh Group, Binh Dien Fertiliser JSC, Vissan JSC, Bach Dang Construction Corporation, and Southern Airports Services JSC.

Vietjet has been voted as one of Vietnam’s excellent brands for years due to its unceasing efforts to grow and contribute to the community’s development.

The development of the largest private airline not only helps to provide flight opportunities to millions of passengers, but also promotes Vietnamese brands to every Vietjet destination.

Vietjet is the first airline in Vietnam to operate under a new-generation aviation model, offering low costs and providing a wide range of services for customers to choose from.

Currently, Vietjet is operating 55 A320 and A321 aircrafts, carrying out more than 385 flights a day and has transported more than 55 million passengers, with 82 routes covering all destinations in Vietnam and international routes to Hong Kong (China), Singapore, the Republic of Korea, Taiwan, China, Thailand, Indonesia, Myanmar, Malaysia, and Cambodia.

– NDO

Vietnam ends AFC Women’s Cup after three losses

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Vietnam ended their journey in the group stage of the Asian Football Confederation (AFC) Women’s Cup in Amman, the capital of Jordan on April 13 after beaten by the Republic of Korea (RoK) 0-4.

The team boarded the flight home on the early morning of April 14 and will arrive in Hanoi at around 6:00am the following day.

Their flight had to change its path as an exercise of caution after the US, UK and France launched a coordinated air strike on Damascus, Syria, about 200 km away from Amman. The strike involved planes and ship-launched missiles, together with more than 100 projectiles in all, in response to an alleged chemical weapons attack.

The flight has to make a detour to ensure the 600-700 km distance from the air field of Syria.

The match with the RoK was the third loss of Vietnam in this event. Earlier, they lost 0-4 to Japan in their first match and suffered their second major defeat of 0-8 to Australia.

Vietnam launched several counter attacks but they didn’t break the RoK’s defence line. In the 14th minute, from a corner kick in the left wing, midfielder and captain Cho So Hyun coolly struck her header past the goalie Dang Thi Kieu Trinh of Vietnam to open the score for the RoK.

Cho’s goal was a driving force for the RoK team to play more aggressively. They put pressure on the Vietnamese side continuously.

-VNA

Vietnam will get USD 10 mln loan from ADB to improve trade

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The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and Orient Commercial Bank (OCB) today signed a USD 10 million loan agreement to further support trade in Vietnam.

“We look forward to our continued partnership with OCB, especially with this additional trade finance assistance,” said Santosh Pokharel, TFP’s Relationship Manager for Vietnam.

“ADB is one of our significant strategic partners. With this agreement, we continue to promote competitive financing and provide responsive services to our trade clients,” said Nguyen Dinh Tung, Chief Executive Officer of OCB.

Since 2010, TFP has supported USD 9.1 billion in trade through 7,624 transactions covering both guarantees and direct funding in Vietnam, 72 percent of which is related to small and medium-sized enterprises. TFP works with 13 commercial banks in Vietnam.

OCB is one of the leading banks in Vietnam, with a focus on supporting export and import activities. Effectiveness, sustainability, and risk management are top priorities of OCB. Applying international standards since September 2017, OCB is the first Vietnamese bank to announce the completion of implementing Basel II project.OCB is rated B2 by Moody’s, the highest rating among Vietnam’s joint stock commercial banks.

TFP backed by ADB’s AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.

With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.

TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and fraud prevention.

Since 2009, ADB’s TFP has supported more than 12,000 small and medium-sized businesses across developing Asia—through over 16,600 transactions valued at over USD 30 billion—in sectors ranging from commodities and capital goods to medical supplies and consumer goods. In 2017, TFP supported approximately USD 4.5 billion in trade through 3,505 transactions.

-ADB

Vietnam weighs overnight alcohol ban

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The health ministry says it’s time to tackle the costs of excessive late night drinking.

Vietnam is considering options for limiting the sale of alcoholic drinks at night to prevent harmful effects of drinking, the health ministry said on Friday.

One option is to restrict the sale of alcohol to 11 a.m. – 2 p.m. and 5 p.m. to 10 p.m. everyday.

Under the second option, alcohol would only be sold from 6 a.m. to 10 p.m.

Both options exclude international terminals at airports as well as designated areas for food, entertainment and tourism.

A third option is to build a set of regulations different from the mentioned time limits, the ministry said, without revealing details.

The proposal is part of a draft law on preventing adverse affects of alcoholic drinks, which will be reviewed by lawmakers this October. The bill would also prohibit using booze in promotional campaigns and advertisements of drinks with alcohol by volume greater than 15 percent. Lighter alcoholic beverages may only be advertised from 10 p.m. to 6 a.m.

The health ministry also wants to discourage movies and television programs from showing drinking scenes.

Vietnam is famous for its beer drinking culture. It is widely believed that business deals in Vietnam tend to go more smoothly over a few drinks at the negotiating table. Vietnam is the biggest beer market in Southeast Asia, consuming nearly 4 billion liters last year.

Relatively low cost of local beer only makes it easier to also nhau – a Vietnamese habit of “eating and drinking for no particular purpose.”

But the cost of drinking far exceeds its economic value, said deputy health minister Nguyen Thanh Long.

The country spends on average $3.4 billion on alcohol each year, or 3 percent of the government’s budget revenue, according to official data. The figure translates to $300 per capita, while spending on health averages $113 per person, according to the health ministry.

As much as 40 percent of traffic accidents in Vietnam are linked to excessive drinking, according to the World Health Organization (WHO), an alarming rate for a country where road crashes kill an average one person every hour.

By Nam Phuong

Why the U.S. attacked Syria? This is the reason

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Trump orders missile strikes on Syrian regime

President Trump says the strikes are intended to deter the use of chemical weapons, which the Syrian government is accused of using on civilians in Douma, a suburb of Damascus.

Full text of President Trump’s remarks on the attack on Syria:

THE PRESIDENT: My fellow Americans, a short time ago, I ordered the United States Armed Forces to launch precision strikes on targets associated with the chemical weapons capabilities of Syrian dictator Bashar al-Assad. A combined operation with the armed forces of France and the United Kingdom is now underway. We thank them both.

Tonight, I want to speak with you about why we have taken this action.

One year ago, Assad launched a savage chemical weapons attack against his own innocent people. The United States responded with 58 missile strikes that destroyed 20 percent of the Syrian Air Force.

Last Saturday, the Assad regime again deployed chemical weapons to slaughter innocent civilians — this time, in the town of Douma, near the Syrian capital of Damascus. This massacre was a significant escalation in a pattern of chemical weapons use by that very terrible regime.

The evil and the despicable attack left mothers and fathers, infants and children, thrashing in pain and gasping for air. These are not the actions of a man; they are crimes of a monster instead.

Following the horrors of World War I a century ago, civilized nations joined together to ban chemical warfare. Chemical weapons are uniquely dangerous not only because they inflict gruesome suffering, but because even small amounts can unleash widespread devastation.

The purpose of our actions tonight is to establish a strong deterrent against the production, spread, and use of chemical weapons. Establishing this deterrent is a vital national security interest of the United States. The combined American, British, and French response to these atrocities will integrate all instruments of our national power — military, economic, and diplomatic. We are prepared to sustain this response until the Syrian regime stops its use of prohibited chemical agents.

I also have a message tonight for the two governments most responsible for supporting, equipping, and financing the criminal Assad regime.

To Iran, and to Russia, I ask: What kind of a nation wants to be associated with the mass murder of innocent men, women, and children?

The nations of the world can be judged by the friends they keep. No nation can succeed in the long run by promoting rogue states, brutal tyrants, and murderous dictators.

In 2013, President Putin and his government promised the world that they would guarantee the elimination of Syria’s chemical weapons. Assad’s recent attack — and today’s response — are the direct result of Russia’s failure to keep that promise.

Russia must decide if it will continue down this dark path, or if it will join with civilized nations as a force for stability and peace. Hopefully, someday we’ll get along with Russia, and maybe even Iran — but maybe not.

I will say this: The United States has a lot to offer, with the greatest and most powerful economy in the history of the world.

In Syria, the United States — with but a small force being used to eliminate what is left of ISIS — is doing what is necessary to protect the American people. Over the last year, nearly 100 percent of the territory once controlled by the so-called ISIS caliphate in Syria and Iraq has been liberated and eliminated.

The United States has also rebuilt our friendships across the Middle East. We have asked our partners to take greater responsibility for securing their home region, including contributing large amounts of money for the resources, equipment, and all of the anti-ISIS effort. Increased engagement from our friends, including Saudi Arabia, the United Arab Emirates, Qatar, Egypt, and others can ensure that Iran does not profit from the eradication of ISIS.

America does not seek an indefinite presence in Syria under no circumstances. As other nations step up their contributions, we look forward to the day when we can bring our warriors home. And great warriors they are.

Looking around our very troubled world, Americans have no illusions. We cannot purge the world of evil, or act everywhere there is tyranny.

No amount of American blood or treasure can produce lasting peace and security in the Middle East. It’s a troubled place. We will try to make it better, but it is a troubled place. The United States will be a partner and a friend, but the fate of the region lies in the hands of its own people.

In the last century, we looked straight into the darkest places of the human soul. We saw the anguish that can be unleashed and the evil that can take hold. By the end of the World War I, more than one million people had been killed or injured by chemical weapons. We never want to see that ghastly specter return.

So today, the nations of Britain, France, and the United States of America have marshaled their righteous power against barbarism and brutality.

Tonight, I ask all Americans to say a prayer for our noble warriors and our allies as they carry out their missions.

We pray that God will bring comfort to those suffering in Syria. We pray that God will guide the whole region toward a future of dignity and of peace.

And we pray that God will continue to watch over and bless the United States of America.

Thank you, and goodnight. Thank you.

Why Samsung of South Korea is the biggest firm in Vietnam

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It makes most of its smartphones there

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.

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