Banks and payment gateways are now the most effective way for hi-tech criminals to transfer dirty money and conduct illegal actions.
The police, while investigating cybercrime cases, have discovered that payment portals of some units of the banking system serve as a channel for criminals to remit money.
The money is remitted in cases related to gambling, for-profit online games, and illegal trade of goods and services.
Lawyer Truong Thanh Duc said it is difficult to prevent illegal money remittances and payments. Banks cannot intervene when party A remits money to party B if the parties have stated they are making payments for legal goods or services.
“Banks don’t know the real reasons behind customers’ money remittance behavior, so they could lose customers if they ask,” he explained.
However, Duc said that banks must accept their responsibility in the fight against cybercrimes and cooperate with the police.
“Banks should notify police about transactions worth hundreds of billions or trillions of dong, like in the newly discovered online gambling case led by Phan Sao Nam,” Duc said.
Nam, former chairman of VTC Online Telecommunications, was the ringleader of an online gambling ring along with 70 others. The case had the alleged involvement of Nguyen Thanh Hoa, former head of the High-tech Crime Police Department
Duc said that banks need to look for abnormalities in transactions. If client A doesn’t register a business that needs big cash flow, but receives large amounts of money from other individuals and institutions, this must be investigated and reported.
If client A is a dumpling seller and has a regular income of VND10 million a day, but one day receives money 20 times higher than his normal pay, the banks need to question the ‘irregular cash flow’.
Vietnam has a comprehensive legal framework to fight against cybercrime and money laundering. The problem is strengthening enforcement.
An analyst commented that in many cases banks ignore dubious transactions because they want to retain clients.
A high-ranking official of the State Bank, affirming that the watchdog agency has vowed to settle the problem, said it plans to amend provisions in Decree 101 on non-cash payments, and in Circular 39 on intermediary payment service.
The new legal documents will set detailed regulations on the responsibilities of intermediary payment organizations and credit institutions in checking clients and partners that provide IT services.
Meanwhile, Nguyen Dang Hung, deputy CEO of NAPAS (the National Payment Corporation of Vietnam), has urged the use of ACH, an electronic clearing system for retail transactions.
Nguyen Anh Duc scored the opener to put Vietnam in front before half-time, but Abu Amara’s second-half equaliser prevented coach Park Hang-seo’s side from pocketing a victory against Jordan in their last Group C match as part of the 2019 Asian Cup qualifiers on March 27 night.
The encounter was merely a dead rubber, as both Vietnam and Jordan had already booked their places in the final round of next year’s AFC Asian Cup, scheduled to take place between January 5 and February 1, 2019.
Ahead of the match, Vietnam was standing at second in Group C with nine points, two behind the group leaders, Jordan. A victory would gift Park Hang-seo’s side the top spot, thus holding the advantage in the draw for the final stage.
Park included seven players of Vietnam’s U23s in the starting lineup at King Abdullah II Stadium in Amman, namely Pham Xuan Manh, Bui Tien Dung, Tran Dinh Trong, Vu Van Thanh, Luong Xuan Truong, Nguyen Quang Hai and Nguyen Cong Phuong.
The first opportunity of the match went to the home side, as striker Montheir stole the ball before firing a left-footed shot from the edge of the penalty box after five minutes, which was denied by keeper Dang Van Lam, who is playing for Hai Phong Club in Vietnam’s top-tier football league, V-League.
In the following minutes, the two teams shared ball possession, with the offensive situations equally divided for both sides.
Vietnam missed a precious opportunity to go ahead in the 22nd minute, as captain Dinh Thanh Trung’s freekick from 25 metres failed to break through the wall.
However, Vietnamese fans in attendance did not have to wait long to celebrate the opener, as only two minutes later, forward Nguyen Anh Duc, the top scorer of the 2017 V-League season, put Park Hang-seo’s side in front with an accurate finishing touch from Xuan Manh’s right-wing cross.
The opening goal inspired Vietnamese players to be more comfortable and confident. The advantage should have been doubled for the guests in the next seven minutes if a powerful and cunning curler by favourite forward Nguyen Cong Phuong had not been denied by the crossbar.
Trying in vain to equalise the score before half-time, Jordanian players put up the pressure in the second half, continuing to rely on high balls which proved not effective throughout the first 45 minutes.
The Jordan fans got ready to celebrate their equaliser one minute before the hour mark, but Ahmad Saleh’s rocket from 30 metres narrowly went wide of the left post.
Substitute keeper Tuan Manh brilliantly blocked a shot on goal from a narrow angle in the 64th minute, but he could not prevent the home side from levelling up the game eight minutes later, as Abu Amara drove a powerful long-range strike toward the left top corner to cancel out Anh Duc’s first-half opener.
Jordan could have completed a successful resurgence but for the Vietnamese keeper’s efforts to deny another narrow-angel attempt by Abu Amara in the 78th minute.
Tuan Manh went on to demonstrate his excellent reflex as he impressively denied a close-range header by Baha Faisal two minutes from time, thus sealing an aggregate 1-1 score for the Vietnam-Jordan encounter.
With the draw, Park Hang-seo’s side have officially wrapped up their 2019 Asian Cup qualification campaign in second place of Group C with ten points, two points behind the leaders, Jordan.
The draw for the final stage of the 2019 AFC Asian Cup is scheduled to be held on May 4, 2018 in Dubai.
During the past several decades, Vietnam has shown what the World Bank describes as a “resilient” economy, thanks to rapid GDP growth. Society-wide, overall health and education outcomes have risen in recent years and the rate of extreme poverty dropped to 3%. This year, Vietnam’s economic growth could reach 6.7%. However, there’s still plenty of room for improvement.
Looking at financial inclusion alone, only 31% of adults in Vietnam have bank accounts. But smartphone ownership is on the rise, with 40% of the population expected to own these devices by 2021, which means app-based, blockchain financial services could bring the underbanked into the fold.
Instead of struggling to secure credit or invest their money, more people could grow their wealth and establish financial histories. “This presents excellent opportunities for Vietnamese startups to bootstrap their ideas and grow their user base, specifically by tapping in our massive underbanked population,” says Nicole Nguyen, head of corporate marketing at Vietnam’s Infinity Blockchain Labs.
It’s clear that interest in blockchain technologies is growing rapidly in the country. Earlier this month, more than 2,000 people attended the Blockchain Week conference, a two-day event held in Ho Chi Minh City and organized by Infinity Blockchain Labs.
Headquartered in Ho Chi Minh City, Infinity Blockchain Labs is a research and development company that focuses on the use of blockchain technology in fintech and regtech. Part of its mission is to “connect the dots and bring together key ecosystem players in Vietnam to sustainably grow [the] blockchain industry in the country,” as Nguyen describes it.
Roughly 2,000 people attended the event, and much of the conversation centered around Vietnam’s potential role in the global blockchain ecosystem. “Vietnam is one of the most dynamic tech hubs in the world,” Nguyen explains. “Vietnam [has] huge opportunities to leverage its robust tech talents and tech-savvy communities to bootstrap numerous startup projects.”
Blockchain for economic development
As “Blockchain Revolution” authors Don Tapscott and Alex Tapscott said in an interview with McKinsey & Company, blockchain can also be used to better document land titles around the world, providing a layer of legal protection for rural farmers. Academics Rob Gower and Jukka Aminoff wrote that blockchain technology could create “a more digitally integrated global economy, something that could enhance economic growth and decrease poverty.”
Despite its praise of Vietnam’s economic development, the World Bank has also noted that the country’s improvements in poverty-related outcomes remain tenuous. The organization said that people who make their livings through agriculture remain especially vulnerable to economic uncertainty. Agriculture is another area in which blockchain can support growth and increased prosperity via improved logistics, reduced transaction costs, and better product tracking.
Of course, it’s not all smooth sailing when it comes to building blockchain solutions for the Vietnamese market, but Nguyen says the opportunities outnumber the obstacles. Despite “challenges such as the absence of regulatory framework [and] low awareness,” she says, “I believe this is just the start for Vietnam to identify and realize blockchain potentials.”
Fertile ground for innovation
Judging by the response at the recent Blockchain Week conference, the enthusiasm for such solutions is growing. Nguyen says interest in blockchain has spiked in Vietnam within the past 12 months, and she sees that trend accelerating. She also predicts that explorations of blockchain applications will include fintech, insuretech, agrictech, medical fields and Internet of Things (IoT) products and services.
“Thanks to strong programming skills and [a] dynamic community, Vietnamese startups are now eyeing … building applications beyond cryptocurrency,” Nguyen says. “This in the long run will help strategically position the country [on] the global blockchain map.”
Vietnam’s startup ecosystem has become increasingly dynamic, and it may well provide fertile ground for developing in blockchain applications. The government has expressed strong support of local startups and initiated a plan to provide resources and training to tech companies during the next several years. Eddie Thai, a partner in 500 Startups’ Vietnam fund, predicted that, “In 30 years, Vietnam has a chance to be a top 30 economy. As importantly, it has a chance to be a hub of innovation for the developing world.” If Nguyen and the team at Infinity Blockchain Labs are right, blockchain will be a key component in making that happen.
Grab yesterday announced that all of Uber’s motorcycle and taxi drivers in Vietnam would have the opportunity to work for Grab from April 8th.
According to Grab’s announcement to acquire Uber’s Southeast Asia operations, Grab will integrate Uber’s ridesharing and food delivery business in the region into Grab’s existing platform.
As part of the acquisition, Uber will take a 27.5 per cent stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s management board.
“This deal is the largest-ever of its kind in Southeast Asia,” ride-hailing service Grab said in a media release yesterday.
“With the combined business, Grab will drive towards becoming the number one online-to-offline (O2O) mobile platform in Southeast Asia and a major player in food delivery.”
It will take over Uber’s operations and assets in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand and Vietnam.
“We are humbled that a company born in Southeast Asia has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over five million people. The acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region,” said Anthony Tan, CEO and co-founder of Grab.
“This deal is a testament to Uber’s exceptional growth across Southeast Asia over the last five years. It will help us double down on our plans for growth as we invest heavily in our products and technology to create the best customer experience on the planet,” said CEO of Uber Dara Khosrowshahi.
Uber on the same day also sent emails to its customers, confirming that “Uber will be combining our operations with Grab to lead you in the next chapter of ridesharing in Vietnam and across Southeast Asia.”
To minimise disruption, Grab and Uber are working to migrate Uber drivers and riders, Uber Eats customers, merchant partners and delivery partners to the Grab platform. The Uber app will continue to operate for two weeks to ensure stability for Uber drivers.
A representative from Grab Vietnam told VTC News online newspaper that Uber would still operate independently based on their app. All motorcycle and automobile drivers would operate under Uber and don’t need to change or register on Grab’s app.
He said customers and drivers should not be worried as the two apps of Uber and Grab would be operated independently. However, Grab would be the representative unit for both apps in Southeast Asia.
He added that Uber drivers would not be required to change to Grab. The Uber brand would not disappear in Vietnam. Uber drivers would not need to change to Grab uniforms.
Uber’s withdrawal from Southeast Asia aims to help the corporation increase its profits in the context that it has invested about US$10.7 billion since being established nine years ago.
Grab is one of the most frequently used O2O mobile platforms in 195 cities in Southeast Asia. More than 5 million people use the combined platform daily.
Pay-TV companies are now cooperating with each other, rather than slashing fees in an effort to find more subscribers.
Saigontourist Cable TV (SCTV) has become a partner of K+, while SCTV now broadcasts K+’s package of four HD-standard channels on SCTV’s cable TV network.
The cooperation agreement was made public one week before K+ began broadcasting the UEFA Champions League and UEFA Europa League, key TV programs of VSTV (Vietnam Satellite Digital TV).
The deal, analysts said, shows that confrontation of many years among pay-TV companies has stopped. Instead of the fierce competition which may lead to an impasse, they chose to coexist.
As OTT TV and mobile TV have appeared, service providers have to find a new way to maintain subscribers and revenue.
A report from the Ministry of Information & Communication (MIC) shows that the total revenue of the pay-TV market was VND7.5 trillion in 2017, a sharp decrease from the VND12 trillion in 2016. The decrease was blamed on the race to slash fees among television channel providers.
At least five other pay-TV service providers, including VTVcab, MyTV of the Vietnam Post & Telecommunication Corporation (VNPT), NextTV of Viettel, OneTV of FPT and Hanoi Cable TV (HCATV) are cooperating with K+ in selling channel packages at the same monthly subscription fees of VND125,000-150,000.
SCTV, VTVcab and K+ are the three biggest players in the market. They have high revenue and numbers of subscribers, and advantages in content production.
SCTV, with 4.5 million subscribers, gained revenue of VND3.42 trillion in 2017.
K+ attracts subscriber thanks to copyrighted sports tournaments, entertainment programs and feature films. VTVcab has both advantages.
“The cooperation in selling service packages will benefit all parties. Television companies will be able to retain subscribers though they don’t have exclusive TV programs provided by other ,” a senior executive from MyTV said.
Meanwhile, other television companies which have copyrighted programs will be able to earn more money from profits shared by their partners.
“This has big significance in the context of subscriber growth slowdown,” he said.
K+, for example, can obtain more indirect subscribers and has no need to make heavy investments in infrastructure.
“Indirect subscribers from partners will also be K+’s subscribers. This means that we will have more subscribers and additional revenue from partners,” a representative of K+ said.
He said that service providers now can focus on upgrading service and content quality.
Pham Nhat Vuong, owner of real estate conglomerate Vingroup and Vietnam’s first billionaire, has earned a place on the list of the world’s richest people as compiled by Forbes magazine.
The magazine ranks him in 296th place with a net worth of US$6.1 billion.
Vuong is placed behind three foreign billionaires, including Acharya Balkrishna (India), Wei Jianjun (China), and Yao Liangsong (China), who are all of equal wealth to him.
According to Forbes, Pham Nhat Vuong studied in Russia and started a popular instant noodle business in Ukraine in the 1990s before moving back to his home country.
“He turned some investments into non-profit ventures, including some in healthcare, education and sports. He also built a center of contemporary art,” says the magazine.
Vuong is the chairman of Vingroup, one of Vietnam’s largest conglomerates with interests in real estate, retail, and healthcare, among others.
Ha Noi – The visa exemption policy for citizens of five European countries will expire in the next three months. Whether and when it might be renewed are still open questions, creating a headache for tourists and Vietnamese businesses that serve them.
To address the dramatic decrease of international tourists to Viet Nam in 2015, the Government granted citizens of the United Kingdom, Republic of France, Federal Republic of Germany, Kingdom of Spain and Republic of Italy a visa exemption for stays of less than 15 days, regardless of passport type and travel purpose from July 1, 2015 to June 30, 2016.
After one year of piloting the visa exemption, Prime Minister Nguyen Xuan Phuc decided to renew the policy for one year, till June 30, 2017.
He made the decision on June 30, 2016 and it came into effect the next day. Similarly, in 2017 when the Government renewed the policy again, it did so only 24 days before the expiration date on June 6, 2017. Therefore, there’s good reason to expect it will be renewed again—but little reason to think it will happen in time for visitors and guides to plan for it with ease.
Nguyen Thien Phuc, an inbound tour operator, said that announcing visa policies too close to the enforcement dates puts both tourism enterprises and tourists at risk. Companies commonly build up tour programmes six months to one year prior. They cannot promote tour packages if the visa is not fixed.
Phuc told Thanh niên (Young people) newspaper that his foreign partners usually complained about the late announcement of Vietnamese visa policies as tourists usually register for tours four to five months before the departure dates.
“If Viet Nam suddenly stops the visa exemption policy, a tourist will have to apply for visas in rush when the departure date approaching fast,” he said.
The Travel & Tourism Competitiveness Index 2017 published by the World Economic Forum ranks Viet Nam in 34th place in terms of natural resources, 30th place in cultural resources and business travel, 37th place in human resources and labour market out of 136 economies across the world. However, in terms of international openness, the country scored low, at the 73rd place.
In comparison to other countries in the region, Viet Nam’s visa policies are not as competitive and attractive, with the visa exemption offered only for citizens of 23 countries and territories. That figure is 165 in the Philippines, 164 in Malaysia and 160 in Singapore. Indonesia, aiming to welcome 20 million foreign tourists by 2019, has opened the visa exemption policy for citizens of 169 countries and territories.
The visa-exempt stay duration is only 15 days, quicker than the typical trip of an international tourist to Viet Nam. Moreover, citizens of countries enjoying Viet Nam’s one-way visa exemption to Viet Nam have to bear a passport which must be valid for at least six months and at least 30 days from the departure date from Viet Nam.
Nguyen Quoc Ky, head of Vietravel Company Managing Board, said that these shortcomings obstruct the influx of tourists to Viet Nam.
“From 2011 to 2017, Japan welcomed 19 million international tourists but the number in Viet Nam was only 12.9 million. Thailand, meanwhile, expects to receive 35 million international tourists in 2018. The widening gap means we are stepping backward,” said Ky. – VNS
Animal rights activists have shared the video in a bid to raise awareness about the cruel trade
HEARTBREAKING pictures show a dog meat market in Vietnam where stolen pets are rammed into cages and delivered to restaurants to be skinned and boiled alive.
An anonymous animal rights activist took the shocking video in Vườn Quốc Gia Bạch Mã village in a bid to raise awareness about the horrific trade.
The helpless animals are rammed into cages and delivered to restaurants
Experts say the helpless animals would be force-fed, bludgeoned with bats then dropped into boiling water in the belief their meat grows tastier the more they suffer.
Meanwhile, another previously unseen clip from a Hanoi meat market shows a pile of butchered dog carcasses.
Eating dog meat is considered be a source of strength, curing illness and boosting male libido in the South-East Asian nation.
But opposition has mounted of late, with growing numbers of animal rights groups shining a light on the illicit yet unregulated industry.
The shocking video shows the dogs being transportedThe video shows a whole lorry load of canines crammed into the space after being stolen from their ownersAnimal rights activists shared the video in a bid to raise awareness about the horrific trade
Australian Michele Brown, the CEO of Fight Dog Meat charity, said: “In Vietnam, it’s believed eating tough meat makes a tough man.
“Many think dog meat boost’s a man’s libido, helps their joints and even cures illness. But none of this is scientifically proven.
“The preference is for tough meat, it’s like the opposite of meat eaten in the West.
“So they think by terrifying the dogs, they flood them with adrenaline and make the meat tastier.”
Unlike the superstitious cat meat trade that recently grabbed headlines, dog meat is mainstream in Vietnam.
Reports suggest an estimated five million dogs – many snatched from loving homes – are eaten annually with Hanoi serving as the most lucrative market.
This shocking photo shows a dog being dragged on a length of ropeThe pets are boiled aliveThey are also ‘force-fed and bludgeoned’This heartbreaking image shows the cooked dogs, ready to be served to customers
Ironically, while the number of dog restaurants is on the rise in Vietnam’s capital, pet ownership is also growing and driving a booming dog theft industry.
Michele said dogs are often smuggled in tightly-packed vans like the one in the footage, but added that it’s rare to be caught on camera as they normally travel at night.
She said a horrified activist stumbled upon the Hanoi-bound truck by chance.
Both pieces of footage were filmed in 2016 but Michele is now sharing them with the media in a bid to raise awareness.
Michele said: “They were on a rural back road when they heard the wailing. They were horrified by what they saw and told me it still haunts them.
“These dogs are often snatched under cover of darkness. They are stunned or poisoned, then have their stomachs pumped to boost their value.
A horrified activist stumbled upon the horror scene and recorded itAn animal rights activist, who asked to remain anonymous, captured the horror scenes in Vuon Quoc Gia Bach Ma villageThe dog snatchers steal the dog in front of the owner in broad daylight
Silicon Valley-based venture capital fund 500 Startups recently closed its 20th deal from its $10-million Vietnam fund by backing a fintech blockchain startup.
Eddie Thai, one of the US firm’s two local partners, said that the fund aims to boost its investments to two or more deals per month this year. “At the same time, we will continue supporting our portfolio companies. We’re proud of the progress they’ve made so far and we want to continue helping them attract talent, enter new markets, and raise capital,” he revealed.
According to a report from Hanoi-based accelerator Topica Founder Institute, 500 Startups was the most active Vietnam-focused venture capital firm (excluding accelerators) in 2017.
In an exclusive interview with this portal, Thai talks about the fund’s plans and expectation of Vietnamese startups in 2018 and beyond.
How many investments have you made so far?Which sectors have these primarily been in?
We recently closed our 20th deal, a financial blockchain technology startup. Most of our investments have been in fintech, edtech, e-commerce, adtech, and media and entertainment. Many aim to serve Vietnam or Southeast Asia broadly; many others aim for markets beyond Southeast Asia.
How have you been able to close the deals in such a short span of time?
We’ve been able to do this partly thanks to great deal flow – we’ve come across many strong founders, and we’re fortunate that so many of them are excited to bring on a supporter like 500 Startups, with our global perspective and track record.
Also, we’ve been able to do this partly by having a relatively lean investment process. For example, whereas we’ve heard of investors in Vietnam requiring 6+ months to close a deal, we aim to finish deals in 1-3 months with the help of standardized documents, our professional back office team, and an awesome manager, Hau Ly. And whereas many investors ask for a large stake in a company (30-50 per cent or more of a company) 500 Startups Vietnam typically offers our support for less than 10 per cent. But we’d like to do more deals faster. So we continue to spend time improving our systems and processes. We’re also planning to double the size of our investment & portfolio support team.
What about exits so far?Who are normally the buyers?
When we invest in companies, we expect that we will spend a long time with them since it usually takes a number of years for a company to reach its full potential. So we were pleasantly surprised that one of our portfolio companies, Wifi Chua, has been acquired by a Vietnamese buyer (Appota).
We expect most acquisitions to be farther out though, and not only buyers from Vietnam but also potentially other parts of Southeast Asia, China, Japan, and Korea.
What’s the goal for 2018?
Last year, we averaged about one investment per month. In 2018, we want to increase that to 2+ per month. At the same time, we will continue supporting our portfolio companies. We’re proud of the progress they’ve made so far. For example, more than 70 per cent of our portfolio companies are able to raise downstream capital within 18 months of our initial investment. We want to continue helping them attract talent, enter new markets, and raise additional capital.
Besides investing in and supporting our own startups, we also want to spend time upgrading the Vietnam startup ecosystem. Founders are getting better and foreign venture capital investors are becoming more aware of Vietnam, but there’s still a lot of work to be done and many more people that could get involved. Before this year we spent a lot of time sharing about Vietnam tech to the world.
In 2018, we want to share about tech with Vietnam. Many Vietnamese people now recognize “Industrial Revolution 4.0”, but not everybody knows what it means for them or how to take advantage of it. So we want to talk with Vietnamese SMEs and corporations about how they can adopt or develop new technology. We want to advise policymakers about how to improve the regulatory environment for innovation. We want to help students have practical experiences in technology innovation and entrepreneurship. And we want to work with wealthy Vietnamese who will invest in the future of Vietnam as a startup nation.
Eddie Tran (left) and Binh Tran, venture partners at 500 Startups Vietnam
Do you consider investing in non-tech companies?Will Vietnamese startups remain attractive to VC investors the way people have been talking about?
500 Startups Vietnam is a technology venture capital fund, so we do expect all of our companies to be tech or tech-enabled. And I believe the long-term outlook for technology companies is bright because technology will inevitably penetrate most aspects of life. Technology should no longer be considered its own sector, but rather a layer that cuts across most other sectors. And there seems to be substantial Vietnamese talent ready to build that future.
However, every market is subject to ups and downs. Vietnamese tech is no exception. I am cautiously watching potential negative factors such as too much startup hype (drawing some students, professionals, and investors into the startup “game” when they may not yet have a clear vision of what’s ahead of them); superficial money-chasing (e.g. copycatting, needless applications of blockchain, etc. rather than building deep and differentiated solutions); foreign HR vacuums (overseas companies soaking up local tech talent); legacy perspectives about legal matters (less respect for contracts among some businesspeople; some draft policies that may constrain digital commerce and innovation), etc.
These factors may combine to create headwinds for Vietnam tech in the near-term, and during that time there could be some difficult lessons for many people, including maybe us. But even during that difficult time, I think there would be lots of gems waiting to be discovered. And, again, the long-term outlook for tech is bright.
Is it true that Sequoia has made its first investment in Vietnam into a 500 Startup portfolio company?
Respecting our companies’ confidentiality, we generally don’t comment on specifics about their operations or fundraising. But I will say that investors have taken great interest in our companies. Some of the more notable downstream funders include Sequoia, Social Capital, Google Launchpad, UOB (the giant Singaporean financial group)… the list goes on.
How would you compare the tech and VC scene in Vietnam to that in other parts of Southeast Asia?
The region overall is quite vibrant and also becoming increasingly connected, so even though we can talk about advantages like Vietnam’s tech talent, Singapore’s regulatory environment and financing, Indonesia’s market size, etc., in reality, the boundaries are blurring. At the same time, competition from Chinese and American giants is obviously going to increase. Southeast Asian startups and investors alike need to be fast, agile, and assertive in getting and integrating resources and opportunities wherever they are.
Investments into Vietnamese startups has gone up in the past few years. Do you think it will continue to increase in 2018? Do you see larger funding rounds by new international funds in this market?
I don’t like making short-term predictions since there are natural blips due to business cycles, company-specific factors, and outright randomness. But in the next several years I do expect overall funding for technology companies in Vietnam to continue to increase, for three main reasons: economies all around the world will continue to shift from analog to digital; many of today’s early-stage Vietnamese startups should continue to grow and, therefore, be prepared for larger investment rounds, and some other tech markets outside of Vietnam are likely to become saturated and/or relatively overpriced, so international investors are likely to shift their attention to less-saturated markets like Vietnam.
There are already many established funds with dry powder looking at Vietnam, and new larger funds continue to be established. We look forward to sharing about the best Vietnamese startups with them.
The Ta Xua natural park, located in northwestern part of Vietnam, has recently appealed to many tourists as an impressive and mesmerizing place to explore.
Nestled in Son La Province, the area has been known as one of the best places to observe clouds, take impressive pictures and get a “taste” of Vietnam’s nature.
Ta Xua was named a reserved area in 2002, covering over 42,000 hectares. The center of the area is 1,500-2,000 meters above sea level.
Many youngsters choose to drive to Ta Xua by motorbike – one of the most popular forms of backpacking among Vietnamese youth.
According to many, the most memorable part of the road from Hanoi to Ta Xua would be from Bac Yen Village to Ta Xua Mountain, which is also the last part of the route before reaching the beautiful natural park.
A village in Ta Xua is covered with blossoming flowers in the spring of 2018. Photo: Tuoi Tre
This part of the road consists of many steep hills which challenge tourists’ driving skills and their confidence.
Most tourists choose reasonably priced accommodations ranging from VND50,000 (US$2) to VND150,000 ($6).
Usually the accommodations also provide simple, local meals such as fried bamboo shoots, Vietnamese sweet and sour soup, or fried vegetables at a considerably low price.
The urban area is also surrounded by clouds.
However, some of the most beautiful places to enjoy clouds would be Dinh Gio, Ban Tro or Song Lung Khung Long (Dinosaur Spine) (*).
It might come as a surprise that most photographers who come here to take pictures of the cloudy scenery do not come out until late at night.
According to one of the experienced photographers, most clouds do not appear until 10:00 pm to 11:00 pm.
Heart-shaped curves on the road near Ta Xua Village, in Son La Province. Photo: Tuoi Tre
The photographer also revealed some of his “tips” on how to take beautiful pictures.
Long exposure is one of the key elements, according to the photographer.
It allows the dim urban lights, stars and street lights to be clearly seen in the photos.
However, Ta Xua is not only beautiful during nighttime.
When the first rays of sunlight appear behind breathtaking mountains, tourists cannot help but gaze at the morning frost that seems to blend all the clouds between the incredible mountains.
In no time, the sun rises above all the mountains shining down the valleys, giving the area a warm yellow and orange shade.
One of the most popular places to see the clouds close to the ground would be villages scattered around the area such as Lang Chieu, Xim Vang, Ta Xua and Hang Dong.
Even though the Ta Xua natural park is not the only place one can see clouds between the mountains, clouds in other destinations including Sa Pa, Tam Dao and Binh Lieu tend to disperse rather fast, shortening the time and opportunities tourists have to enjoy the scenery.
In Ta Xua, one can enjoy the clouds even after the sun has moved high above the mountains at 10:00 am to 11:00 am.
Because the area is surrounded by high mountains, and does not have a lot of wind, the clouds tend to gather between the mountains and take a long time before lifting.
The weather is also a factor adding up to the unforgettable experiences.
The view at the top of the mountain at dawn. Photo: Tuoi Tre
Ta Xua has a pleasant cool climate of 10 to 20 degrees Celsius and clear blue skies in the spring.
During this time of the year, the area is also covered with blossoming flowers, with peach blossoms considered the most impressive.
In most villages, the Mong ethnicity makes up 90 percent of the population.
Most Mong people work as farmers, growing crops and gathering bamboo shoots.
Recently, the area has attracted many tourists so a lot have switched to working in service sectors instead of just traditional agriculture.
A total of five employees of Vietnamese lender Eximbank have been placed under investigation for their role in helping a wanted former executive steal more than US$10 million from a depositor, police said Tuesday, updating initial information that only two bankers were involved.
Ho Ngoc Thuy and Nguyen Thi Thi, who both work in the customer office of Eximbank’s Ho Chi Minh City branch, had their cubicles searched before being arrested on charges of “deliberately violating state regulations on economic management, causing serious consequences” around noon on Monday.
Besides these two female clerks, police have also initiated legal proceedings against three other Eximbank employees but did not take them in custody.
Nguyen Thi Ngoc Tram, Tran Nguyen Xuan Lan and Cao Lan Phuong are only prohibited from leaving their residence to serve the investigation, according to police officers.
They all face charges of “dereliction of duty that causes damage to property of the state, businesses and organizations,” pursuant to the Penal Code.
Tram and Lan quit Eximbank before the probe was launched.
All of the five Eximbank clerks are believed to play a role in helping Le Nguyen Hung, a former deputy director of Eximbank Ho Chi Minh City, used fake papers and forged authorization letters to steal VND245 billion ($10.8 million) from different savings books of a customer named Chu Thi Binh.
Eximbank admitted in February that Hung is on the run overseas after a wanted notice was issued for him in December 2017.
According to police investigation, Hung forged papers which stated that Binh authorized Nguyen Thi Hong Le, his wife’s aunt, to withdraw money from the savings books on her behalf.
The fugitive banker managed to have Binh sign those papers in advance, and himself faked Le’s signature.
Thuy and Thi, as part of their work, were asked to confirm that those letters were authentic.
It was not clear how Tram, Lan and Phuong were responsible for the theft.
Ngo Thanh Tung, a member of the Eximbank board of directors, told Tuoi Tre (Youth) newspaper that the lender’s employees had to act against their own volition, apparently being forced by their boss, Hung.
A number of young Vietnamese people tend to forgo the use of plastic drinking straws in a collective effort, NoStrawChallenge, to alleviate negative impacts on the environment.
Several environmentally-minded groups wishing to reduce the popularity of plastic straws have appeared, although such a commitment has not developed to a massive scale, according to the Vietnam Green Generation Network, an organization of Vietnamese youth spreading eco-friendly messages.
Many beverage shops have begun using non-plastic straws, including The Organik House, Pilosa Garden, which are in Ho Chi Minh City; To Chim Xanh (‘Blue Bird Nest’), and Reng Reng Cafe, located in Hanoi.
Adopting the NoStrawChallenge attitude, Minh Huong said followers of this trend should maintain discipline in order to eschew indulgence.
“Initially it’s very hard to do NoStrawChallenge, because I used plastic straws habitually. In a moment after using a drink from a cup, I found myself unconsciously throwing away the plastic straw, cup lid and nylon bag that went with the cup. It’s unnerving to know how harmful such unnecessarily wasted plastic items I dispose of automatically are to the environment,” she said.
She observed that bubble milk tea and smoothies have been sold in plastic cups as take-aways so often that the containers have been inextricably associated with the drinks.
“I don’t want to see NoStrawChallenge as a sort of fashion, since fashion is only short-lived. Reducing the amount of plastic trash, though at a personal level, is still meaningful and brings about long-term benefits for human life and the environment,” she added.
Quynh Nhien, a sophomore at the Ho Chi Minh City University of Social Sciences and Humanities, has developed a liking for the straw challenge after she was given a stainless steel straw.
“If the restaurant fails to avoid straws, visit that place many times, and ask it to give you no straw each time you order drinks,” she said, mentioning her awareness-raising tactic.
Bamboo straws are seen in a photo provided by Sap Hang Chang Sen
Materials to replace plastic in producing straws may be bamboo, stainless steel, glass and silicon, according to Dang An, owner of Hanoi-based Sap Hang Chang Sen (‘Kiosk of a Lad Named Sen’), which only provides various non-plastic products and has risen to great popularity amongst eco-friendly consumers in Vietnam.
“I’m really happy to see the no-plastic-straw practice becoming increasingly widespread. Non-plastic straws were strangers to people a year ago,” he said.
In the past he was reluctant to introduce this type of product for fear that customers might feel displeased, but now he has received orders from multiple users.
He said this tendency heralds a positive change, sharpening general awareness of potentially enormous environmental detriments caused by small objects like straws.
Vietnam’s Binh Duong Province and a major Japanese enterprise have informally agreed to work together to lay the technological groundwork for the transformation of the province into a smart city.
Nippon Telegraph and Telephone East Corporation (NTT EAST), headquartered in Japan, on Monday signed a memorandum of understanding for cooperation with Investment and Industrial Development Corporation, otherwise known as Becamex IDC, a company with more than half its share owned by the local administration.
The signatories accordingly promised to build a local data center with one of the most powerful servers in Vietnam, able to satisfy relevant international standards.
They are also committed to forming an extensive municipal wireless network covering the first spots of Binh Duong Smart City – a future metropolitan version of Binh Duong Province; and densely populated areas in the province.
The facilities are intended to benefit local inhabitants and domestic and foreign businesses.
Yamanura Masayuki, NTT EAST’s director, said his company will make a massive investment in Binh Duong following the memorandum signature.
Binh Duong Smart City will be built based on the tried-and-tested Triple Helix model applied in the Dutch city of Eindhoven, in which urban growth relies on the partnership between enterprises, educational institutions and the government.
Since early 2018, Binh Duong has become the second leading region nationwide in terms of receiving foreign direct investment, only after Ho Chi Minh City.
In March, a series of agreements on logistics, industrial real estate and garment projects were approved, serving as economic foundations for the birth of the smart city.
The bank clerks acted against the law after apparently being forced by their fugitive ex-leader
Police escort two arrested Eximbank employees in Ho Chi Minh City on March 26, 2018. Photo: Tuoi Tre
Vietnamese police on Monday arrested two employees of local lender Eximbank for their role in helping a wanted former leader steal more than US$10 million from multiple savings accounts of a ‘VIP’ depositor.
Ho Ngoc Thuy and Nguyen Thi Thi, who both work in the customer office of Eximbank’s Ho Chi Minh City branch, had their cubicles searched before being detained on an arrest warrant.
Police have also initiated legal proceedings against the female employees on charges of “deliberately violating state regulations on economic management, causing serious consequences.”
Thuy and Thi are believed to play a role in a high-profile savings theft in which Le Nguyen Hung, a former deputy director of Eximbank Ho Chi Minh City, used fake papers and forged authorization letters to steal VND245 billion ($10.79 million) from different savings books of a customer named Chu Thi Binh.
Police escort two arrested Eximbank employees in Ho Chi Minh City on March 26, 2018. Photo: Tuoi Tre
Eximbank admitted in February that Hung is on the run overseas after a wanted notice was issued for him in December 2017.
According to police investigation, Hung forged papers which stated that Binh authorized Nguyen Thi Hong Le, his wife’s aunt, to withdraw money from the savings books on her behalf.
The fugitive banker managed to have Binh sign those papers in advance, and himself faked the Le’s signature.
Thuy and Thi, as part of their work, were asked to confirm that those letters were authentic.
“They confirmed those papers in the absence of both Binh and Le,” Ngo Thanh Tung, a member of the Eximbank board of directors, told Tuoi Tre (Youth) newspaper, explaining why they were put under police investigation.
Tung underlined that the arrested employees were forced to “make such a technical mistake” by Hung, who gave them the documents along with another forged paper showing that Binh had agreed to have her money withdrawn.
“[Thuy and Thi] paid the price and had to deal with the law only because of an avoidable mistake,” Tung commented.
Police escort one of the two arrested Eximbank employees in Ho Chi Minh City on March 26, 2018. Photo: Tuoi Tre
As Binh demanded that Eximbank pay her back all of the money stolen by Hung, the lender at first said it would take no action pending the final ruling of a court.
The bank later offered to give Binh VND14.8 billion ($651,200), but the customer refused to take it.
Binh said while the money should be treated as part of the VND245 billion sum, Eximbank described it as a form of financial support for her during these tough times, making no mention of her fortune having vanished.
A series of scandals
Chu Thi Binh is not the only Eximbank depositor who has had their money ‘disappear’ without their knowledge.
Earlier this month, six customers of a transaction office of Eximbank in the north-central province of Nghe An complained that their savings, collectively worth VND50 billion ($2.2 million), had been gone mysteriously.
One of them, Nguyen Tien Nam, opened 13 savings accounts at the transaction office with a total deposit of more than VND28 billion ($1.23 million).
In August 2016, an Eximbank Nghe An banker named Nguyen Thi Lam turned herself to police officers, saying she had swindled the lender’s customers and appropriated their assets.
Upon learning of the news, Nam came to Eximbank to check his savings and was shocked to see that only VND196 million ($8,620) was left in the accounts.
Eximbank Nghe An offered to give him VND1.55 billion ($68,200) as ‘temporary support’ in the same manner as the case of Binh, but Nam turned the bank down.
A police officer holds a box of documents seized after searching an Eximbank branch in Ho Chi Minh City on March 26, 2018. Photo: Tuoi Tre
Nguyen Hoang Minh, deputy governor of the Ho Chi Minh City branch of the State Bank of Vietnam, said he has requested Eximbank to make a full report on the recent series of money-loss scandals within its network.
The State Bank of Vietnam has demanded that Eximbank tighten its procedures and internal regulations to minimize risks for the lender itself and its customers, Minh said.
“Eximbank has been asked to review its protocols on accepting savings and giving loans to avoid issues stemming from the ethics of its bankers,” he added.
Grab’s pivotal purchase of Uber’s Southeast Asian business is now official.
Here are the details:
• Grab has bought Uber’s ride-hailing business as well as its food-delivery business, Uber Eats. That’s major.
• Grab will take over Uber Eats’ operations immediately.
• As part of the deal, Uber now owns 27.5 percent of Grab. The stake roughly reflects Uber’s share of the ride-hailing market, which is around a quarter, a Grab spokesperson told Tech in Asia.
• By next quarter, Grab will expand its food-delivery service, GrabFood, to the rest of Southeast Asia. It currently operates in Thailand and Indonesia.
• In 2017, Grab grew 2.5 times in app downloads and four times in the number of driver-partners.
• All Uber employees will receive offers to join Grab, the spokesman confirmed.
• The deal gives Grab a ride-hailing monopoly in the region. It ends costly discount battles against Uber, allowing Grab to focus on chipping away at Go-Jek and GoPay’s lead in Indonesia, a must-win market.
Foodpanda, Honestbee, and Deliveroo should be worried.
The biggest coup, however, is arguably the food-delivery business. Uber Eats competes strongly against its rivals, having snagged McDonald’s as a partner restaurant chain. It’s ranking especially well in the app stores in Singapore and Malaysia. Foodpanda, Honestbee, and Deliveroo should be worried.
For Grab, transportation is just the beginning. Although high-volume, the margins are razor-thin unless you can get rid of the drivers and replace them with AI. Food delivery works the same way. Like travel, food is a daily necessity. Grab probably won’t make a lot of money off food delivery, but that’s not the point.
By owning the platforms that serve two major consumer needs, Grab can collect a treasure trove of data that will allow it to shed its label of a ride-hailing firm and become the dominant ecommerce platform in Southeast Asia.
Key to its ambitions is building out all the infrastructure, a necessity in the region’s rising economies. It began with its e-wallet GrabPay, which is now a mode of payment for many merchants in Singapore, not to mention the actual rides on Grab.
It then moved into financial services when it announced that it will offer loans and insurance products to its driver and merchant network. This will grease Grab’s network and keep the transactions flowing.
Financial services could also be where Grab makes its money. Because there’s no need to expand a physical delivery network as the business grows, the marginal cost of expanding its loans and insurance offerings is arguably lower compared with rides and food delivery.
Further, many labor-intensive functions of a financial services business can be automated. Credit scoring and claims are just two examples. With a ready customer base on the Grab network, the cost of sales can be reduced.
Treasure trove of data
Now with Uber Eats in the fold, consumers will have another compelling reason to use GrabPay, and Grab will have more customers to sell its financial services to.
The consumer data is key. Grab will have insight into consumer behavior that not even the tech giants and traditional institutions have. This gives it an advantage. Ecommerce giants like Amazon have transaction data, but they can’t collate consumer travel patterns like Grab can.
Banks and insurance firms are probably sweating right now. While they have some understanding of consumer consumption patterns, they won’t be able to know, for example, a consumer’s favorite food or travel habits, let alone collate the data into market trends that will benefit Grab’s ecosystem. Grab could beat them in certain segments of the loans and insurance business.
Grab still faces a lot of uncertainty in the years ahead. Will governments block Grab’s monopoly? Can it properly govern its use of consumer data and prevent a privacy fiasco from developing (like what’s happening now with Facebook)? Can it win in Indonesia? Can it compete against Alibaba and Tencent in Southeast Asia, which are arguably the originators of Grab’s current strategy?
With subsidies winding down, consumer usage may follow suit. Yet Grab can’t keep the prices of its rides too low because it needs to pay drivers enough to keep them happy. Its loans business is also far from a guaranteed success. Grab needs to amass enough borrowers with strong credit scores and minimize the number of defaults which it will then have to write off.
My money is on an eventual mega-consolidation with a Chinese giant firmly in the mix, which will certainly set the stage for a reckoning between states and the private sector down the line.
