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.
Bamboo Airlines will be taking to the skies in 2019.
A Vietnamese corporation has signed a deal with Airbus to buy 24 airplanes for the launch of a new airline in 2019. The pact was struck on Monday in Paris during Party General Secretary Nguyen Phu Trong’s official visit to France.
FLC Group signed the memorandum of understanding with Airbus to buy the A321NEO airplanes for the upcoming Bamboo Airways.
Bamboo Airways will use jets from a third party before deploying the 24 airplanes ordered from Airbus. The carrier will focus on connecting Vietnam to international markets, along with domestic destinations.
Airbus Chief Commercial Officer Eric Schulz said the A321 is the frontrunner in the market’s mid-range segment, with the lowest operational costs. Airbus is proud to play an important role in developing the start-up carrier, he added.
“We trust the A321NEO to be the optimum option for Bamboo Airways for its comfort, efficiency and capacity,” said Trinh Van Quyet, chairman of FLC Group.
Launched in 2010, the A321 is the largest of the A320 family. It can carry up to 240 passengers and traverse 4,000 nautical miles.
During the same day in Paris, Vietnam Airlines signed a deal with Air France Industries KLM Engineering & Maintenance for a $500 million maintenance contract, the carrier said in a statement. The unit will handle maintenance of Vietnam Airlines’ 787 GEnx engines for 12 years.
Party General Secretary Trong’s visit marks the 45th anniversary of diplomatic relations between the two countries.
FLC Group is one of Vietnam’s largest conglomerates, involved in real estate, hotel construction and mining. The establishment of Bamboo Airways marks the group’s newest venture in the transport industry.
Strong demand for largest member of the best-selling A320 Family
Vietnam’s FLC Group has signed a Memorandum of Understanding (MOU) with Airbus for up to 24 A321neo aircraft for future operation by start-up carrier Bamboo Airways.
The agreements were signed in Paris today by Trinh Van Quyet, Chairman of FLC Group and Eric Schulz, Chief Commercial Officer, Airbus during the official visit to France of Nguyễn Phú Trọng, General Secretary of the Central Committee of the Communist Party of Vietnam.
Bamboo Airways is set to begin operations in 2019 with aircraft on lease from third party lessors before taking delivery of the aircraft covered by today’s MOU with Airbus. The carrier will focus on linking international markets to Vietnamese leisure destinations, as well as on selected domestic routes.
“After evaluating carefully the competing products, FLC Group and Bamboo Airways have selected the A321neo as the most efficient option for our new operation,” said Trinh Van Quyet. “The A321neo will enable us to combine comfort, efficiency and the right capacity for our planned services, which will primarily serve fast growing leisure markets in Vietnam.”
“We are proud that the A321neo has been selected by FLC Group,” said Schulz. “This decision once again underscores the position of the A321 as the aircraft of choice in the mid-market segment with its additional capacity and the very lowest operating cost. Vietnam is one of the most vibrant economies in South East Asia and we are proud to play a key role in helping to develop the air transport system in this fast-growing market.”
FLC Group is one of the largest conglomerates in Vietnam and is involved in a wide range of businesses including real estate development, hotel construction and management, financial services, and mining. Bamboo will in particular serve destinations where FLC Group has heavily invested in tourism infrastructure.
FLC Group selects A321neo jetliners for Bamboo Airways
The A321 is the largest member of the A320 Family, seating up to 240 passengers, depending on cabin configuration. Incorporating the latest engines, aerodynamic advances, and cabin innovations, the A321neo offers a significant reduction in fuel consumption of 20 percent by 2020. It offers the longest range of any single-aisle aircraft and is capable of flying up to 4,000 nautical miles non-stop.
Dat Tham Beach on Con Dao Island has been listed as one of the top ten eco-friendly beaches in Southeast Asia by the UK’s The Independent newspaper.
With the likes of the popular coastal cities of Da Nang, Nha Trang and Mui Ne now packed with tourists, Dat Tham Beach is different, as it’s located in the protected Con Dao National Park, which has allowed it to become one of the few undeveloped stretches of sand left in Vietnam, The Independent wrote.
As a part of the national park, Dat Tham Beach is often not accessible to tourists due to the high risk of forest fires. Getting there requires some effort, with visitors clocking-in at the park office before beginning a four-mile hike to the beach. The hike takes you through a dense section of the park and you may catch a glimpse of some of its rare animals, such as giant squirrels and the bow-fingered gecko. Once you reach the shore, you are met with a beautiful (and most likely completely secluded) crescent-shaped bay.
Isolated from the mainland, Con Dao is a group of 16 islands. The largest is known as Con Son. Con Dao served as a prison island for political prisoners during the French colonial era, when it was known as Poulo Condore, and in later years the Saigon regime imprisoned its opponents in the infamous cells known as the “tiger cages”. The old prison buildings are still standing and are open to the public, as is a small museum tracing the island’s history.
Today, what was “hell on earth” for prisoners has turned into “heaven on earth” for tourists. Beautiful beaches, hidden lagoons, coral reefs and scenic bays are also to be found and the islands remain partially covered by tropical forests, with very few tourists. “In addition to hiking, diving and exploring deserted coastal roads there are excellent wildlife-watching opportunities,” Lonely Planet once wrote. Hollywood superstars Angelina Jolie and Brad Pitt had a memorial vacation here with their kids a few years ago.
Con Dao also made the list of the 20 most mysterious islands on Earth by the US site Travel + Leisure, while CNN named it one of 12 paradise islands in Asia and the US weekly-magazine Time included it on a list of the 13 visit-worthy places around the world where travelers will be surprised by the blueness of the water.
Other beaches on the Independent’s list are Gili Air, on the Gili Islands in Indonesia; Ngapali Beach in Myanmar; Sunset Beach in Thailand; the beaches of Isla de Gigantes in the Philippines; Juara Beach in Malaysia; Bottle Beach in Thailand; the beaches of Kepayang Island in Indonesia; Bacuit Bay in the Philippines; and Lalaji Bay on Long Island in the Andamans.
Japanese automaker Mazda on Sunday launched its largest and most modern production facility in Southeast Asia in central Vietnam.
The factory is the result of cooperation between Mazda and local automaker Truong Hai Auto Corporation (Thaco), according to which the latter will produce Mazda cars for local sales and exports to regional markets.
Located in Chu Lai Open Economic Zone in Quang Nam Province, the factory is Mazda’s biggest and most modern in Southeast Asia capable of producing cars of Japan-made quality, according to Thaco chairman Tran Ba Duong.
Duong was among four superrich Vietnamese included in the latest Forbes list of the world’s dollar billionaires.
The Thaco-Mazda factory in Quang Nam can produce 100,000 cars a year upon completion, at a cost of VND12 trillion (US$526.8 million).
The entire factory is integrated with the latest Industry 4.0 technologies available in Southeast Asia, making it fully automated and digitally controllable, Duong said.
Vietnamese Prime Minister Nguyen Xuan Phuc attended the factory’s opening ceremony on Sunday, which saw the launch of its first phase capable of manufacturing 50,000 cars yearly.
The premiere also launched a maritime trade route between Japan and Chu Lai the same day, and later oversaw the first shipment of car parts from Hiroshima to supply the Thaco-Mazda factory.
According to Hiroshi Inoue, managing executive officer at Mazda, Vietnam is the company’s 10th largest market worldwide in total auto sales.
Mazda’s investment of technology and production concepts in a Thaco-run factory would build a strong foundation for the local auto industry to make its own breakthroughs, he said.
Dr. Tran Dinh Thien, president of the Vietnam Institute of Economics (VIE), told Tuoi Tre (Youth) newspaper that the Thaco-Mazda cooperation would be a game changer in the local auto market in the years to come.
The Thaco-Mazda factory’s approach is to introduce more luxury cars for the Vietnamese market while increasing the localization ratio, Thien asserted.
Thaco has already inked deals to sell 1,000 buses produced at its newly-opened factory to Thailand, Indonesia, and the Philippines in 2018.
The company also plans to export $10 million worth of car parts and accessories to regional markets by the end of the year.
