Encouraged and supported by the government and local authorities, the startup movement in Hanoi has not developed well despite numerous business ideas.
“The lack of experience and impractical business ideas are the major reasons causing many startup projects to fail,” said Tran Le Tram Anh, an economics student from Hanoi National University.
Anh and her team attended a comp
Anh’s business idea improved after the competition, especially in terms of calling for capital. However, the team doesn’t intend to implement the plan because of a lack of resources.
In order to start up a business, she said, it is necessary to find experienced cooperators.
“After the government launched the startup movement, a lot of programs to support entrepreneurs were set up. However, the majority of students cannot access the programs,” Anh said.
Half a year after the competition for startup ideas, Khuat Hoang Lam, a fourth-year student at the Hanoi University of Science & Technology, has abandoned his project on providing designs for gardens for families, even though it was listed among the top 20 in the competition organized by Leipzig University, the Hanoi University of Science & Technology and the Vietnam Chamber of Commerce and Industry (VCCI).
“This is just for competition, and I still don’t have a plan to implement it,” he said.
Nguyen Van Khuong, who graduated from Architecture University, and his friends are meeting difficulties designing housing models adapted to climate change. The idea was praised at the Holcim Prize 2015-2016, but it still cannot be applied in real life.
Unlike Anh and Lam, Khuong is still pursuing his idea.
“I have updated the idea, applying German technology and using more durable materials,” Khuong said.
Khuong has had problems raising funds because his project is large scale. He complained that support programs for startups require too many procedures.
etition on startup ideas launched by the Vietnamese Students Association in early 2017. Their idea helps students find extra jobs, and allows app users to negotiate salaries and assess workers’ capabilities, thus creating a competitive and dynamic working environment.
The idea won third prize at the UEB Genesis Startup Program 2016.
According to Anh, in most cases, students’ business plans are “cumbersome, requiring complex operations”. She said the members of the jury only gave advice to simplify the idea for easier implementation.
Over the weekend, one Dylan McKay downloaded the archive of all his Facebook data — and found that the social network had been keeping extensive records of the calls and texts he had made from his Android phone.
A report from Ars Technica corroborated McKay’s findings not long after: under certain circumstances, Facebook’s Android apps will keep logs showing the names of the people you called and texted, how long the conversation lasted, and the other party’s phone number.
McKay’s original Twitter post has almost 40,000 retweets at the time of writing. Privacy fears around Facebook are at an all-time high following the Cambridge Analytica scandal, where 50 million users had their data used improperly by a political research firm.
In response to reports over the weekend, Facebook published a blog entry giving its side of the story.
First, Facebook says, it didn’t do anything without permission. It says that keeping logs of call and text data is an opt-in feature on two of its Android apps: You get prompted to share that data upon installing Facebook Messenger, and the low-data Facebook Lite. Keeping those records “helps you find and stay connected with the people you care about, and provide you with a better experience across Facebook,” says the blog.
It also says that the data is not sold to any third party, and that Facebook doesn’t read your texts or listen to your phone calls. Besides, says Facebook, it’s not crazy to ask for access to your contacts: “Contact importers are fairly common among social apps and services as a way to more easily find the people you want to connect with.”
However, the Ars Technica report gives a little more reason for Android users to worry.
Until Google instituted some changes in October 2017, allowing an app to access your contacts could also give it access to the kinds of call and text records in question in this matter. According to the report, all of the call and text records end in October 2017 — which suggests, but does not prove, that the main Facebook app for Android was taking advantage of that method to get the data.
Also of note is that Apple’s iOS, the operating system on the iPhone and iPad, doesn’t allow that kind of access to call and text data at all without very specific permission. That means Apple fans don’t have to worry as much about Facebook having call or text records.
Facebook provides a tool to see which contacts have been uploaded to Messenger, which you can get to here. But it’s a good reminder — if you’re really concerned about online privacy, think twice about uploading your address book.
Duong Duc Hung has more than 20 years of experience in financial and banking services in Vietnam and abroad. Prior to joining Hong Leong Bank Vietnam, he was a member of Management Committee – Transformation Director of Techcombank, and prior to that Head of Retail Banking at ANZ Vietnam. VNEconomictimes reported.
Duong Duc Hung holds a Bachelor’s degree in Foreign Trade from the Foreign Trade University and a Master of Business Administration from Katholieke Universiteit Leuven (Belgium).
Hong Leong Bank Vietnam is the first Southeast Asian bank to be granted a license to operate a wholly-owned foreign commercial bank, brining more than 100 years of regional banking heritage to Vietnam.
Commencing its operations in Ho Chi Minh City in October 2009, Hong Leong Bank Vietnam has expanded its network to four outlets and one direct sales office. With recent connection to over 16,000 ATMs and 100,000 POS terminals nationwide, the bank has brought convenience to customers to an exciting new level.
The country’s e-payments grew 22 percent to $6.14 billion in 2017.
Electronic payments are taking off in Vietnam thanks to a boom in internet usage and smartphone ownership.
E-payments in Vietnam grew 22 percent in 2017 from the previous year to $6.14 billion, Nikkei Asian Review quoted data from Statista, a local market research firm, as saying. The figure is projected to double to $12.33 billion in 2022.
According to economists, the potential for the e-payment sector is huge due to the expanding middle class and improved communications infrastructure.
More than half of Vietnam’s population of nearly 92 million people is online.
VNG, the operator of the country’s most popular messaging app Zalo, plans to install terminals for its ZaloPay e-payment service at 1,000 locations by the end of this year.
ZaloPay terminals will first be available mainly at convenience stores and electronics shops. The service allows users to deposit money and pay for online transactions and utility bills. It can also be used to transfer money from bank accounts and handle remittances using QR codes.
State-owned PetroVietnam Oil also introduced a mobile payment system in February.
PV Oil is accepting mobile payments using an account card and QR code. The system is expected to ease congestion at gas stations in a country with more than 40 million motorbikes. Moreover, payment records can be accessed online, allowing business users to keep track of fuel expenses.
Vietnam’s e-payment pioneer MoMo is also racing to expand. In addition to paying for online purchases, airline tickets and utility bills, MoMo users can pay for Uber rides thanks to a tie-up deal signed between M-Service and Uber Technologies in November 2017.
Foreign companies have taken note of Vietnam’s e-payment potential. China’s Alipay, operated by e-commerce giant Alibab, signed up with a Vietnamese company in November to provide e-payment services.
Banks are also getting involved. Maritime Bank and Sacombank have launched their own QR code-based online payment services that can be used at stores and restaurants.
The increase of e-commerce companies like Lazada and Sendo is also contributing to rising e-payments as online shoppers, many of whom do not have credit cards, can avoid paying cash on delivery, a practice that encourages theft by delivery workers.
The Southern team is close to full strength now, and their performance of late reflects it.
The Southern team won 6.5 – 5,5 on the last day, thereby winning the northern team 14.5 – 13.5 to the throne at the most prestigious golf tournament in Vietnam.
The tournament taking place at Long Thanh Course (Dong Nai) witnessed the most dramatic ending in 3 consecutive years.
The two teams in the South and the North 8-8 match after the first two days. The winning team is only determined on the last day of the match with 12 individual matches. There was no surprise when two teams captain Le Hung Nam (North) and Andrew Hung Pham (South) won over, Tran Anh Linh and Nguyen Duc Linh respectively.
Le Hung Nam – Team leader of the Northern team
The drama occurred when Thai Trung Hieu (North) overcame Nong Trung Hieu (South) with two holes, shortening the score to 13-14. At that time, the only remaining pair between Hoang Ngoc Quy (South) and Tran The Cuong (North) are in the match after hole 15.
Ngoc Quy and The Cuong each won a hole to maintain the score after the hole 17. The championship is only determined in the last pit. Ngoc Quy must win or draw in the 18th hole to bring the trophy to the South.
And the Southern Golfer did that. Ngoc Quy match results in the 18th hole, which means the final score with The Cuong, after the golfer in the North made the putt unsuccessful. The southern team won the final 14.5-13.5 North team.
Many Southern players could not hold back their tears because of their first win at the VGA Union Cup. They have been very close to the championship in the two previous tournaments, but this time the glory really came to the Southern team.
The southern golfers enjoy their very first victory.
VGA Union Cup is the annual tournament organized by the Vietnam Golf Association. Throughout three-time organizations, the Northern team won the championship twice, while the Southern team won a victory once.
Online intellectual property infringements related to industrial design are worrying investors, including those from the US, forcing state agencies to set forth an adequate legal mechanism to handle the situation.
Numerous counterfeit items are being put up regularly on many e-commerce platforms, Facebook pages, and websites, regardless of intellectual property (IP) regulations on industrial design and brand names.
Sendo.vn, matdep.net, mango.vn, pinterest.com, and many others were accused by Nguyen Nhu Quynh, vice chief inspector from the Ministry of Science and Technology (MoST), of selling fake items such as wrist-watches, handbags, sun glasses, and more, violating IP regulations. Quynh made the statement at an IP workshop held by the American Chamber of Commerce in Vietnam (AmCham) last week in Hanoi.
Lazada Vietnam is offering feature phone LV102, the industrial design of which is strikingly similar to Nokia’s feature phone Nokia 1280. This raises doubts about IP infringements relating to industrial design, though Lazada set up its policies for sales and IP with careful consideration of manufacturers and providers that sell items on its platform.
Meanwhile, information about the LV102’s manufacturer is sketchy, with the website (http://lvmobile.vn/dtdd-gia-re/lv-mobile/lv102-136.html) providing no information about the manufacturer or provider – only information on points of sale in Ho Chi Minh City and a hotline for sales.
Two working days after VIR’s queries sent on March 14, Lazada Vietnam gave no feedback on the origin and industrial specifications of the LV102 feature phone.
The majority of IP infringement cases were handled through negotiations and penalties from VND50 million ($2,283) – VND100 million ($4,400) – light levels against the ceiling of VND500 million ($22,830) as prescribed in existing legal documents. These treatments are claimed to be not strong enough deterrents to stop IP infringements.
IP infringement cases are normally handled through dialogue and negotiations between the parties. State agencies would intervene if dialogue and negotiations do not produce results. Such cases are handled in accordance with Circular No.11/2015/TT-BKHCN issued by the MoST in 2015, said Quynh.
In addition to the fines, under Circular No.47/2014/TT-BCT issued by the Ministry of Industry and Trade, entities violating regulations relating to IP and the sale of counterfeit, fake, or illegally-imported items on their websites are only asked to remove information related to such items from the websites.
MoST Deputy Minister Tran Van Tung affirmed that the robust development of technology aids many business models on e-commerce platforms, Facebook, and other social media networks. These pose challenges to state agencies in controlling and managing e-commerce activities coupled with the protection of IP.
The alliance between ministries and agencies has faced a variety of difficulties in preventing IP violations, leading to few positive outcomes. The deputy minister said that dialogue and negotiations between dispute parties would remain an effective way to deal with the situation.
Adam Sitkoff, executive director of AmCham Vietnam in Hanoi, told VIR that the challenges Vietnam faces can be solved. For example, the country could demand higher fines from people engaged in IP infringements and increase the number of cases brought to court. This would also require improving the capacity of people working in justice and the courts, as well as in inspection.
Sitkoff added that in the US, the local administration tries to create mechanisms that are very strict on enforcement. If entities in the US show a pattern of IP infringements, they can be brought to court. “We need to see more of that in Vietnam to deter people from committing IP violations. Since many firms are trying to grow their brand, maybe this could make them feel more comfortable doing business in Vietnam”.
Regarding the criminalisation of IP infringements, the AmCham executive director suggested that the Vietnamese government should look at behaviours over time to identify which are right or wrong and which are good for the economy. “It could learn from the experience of the multitude of countries which have criminalised IP violations in the past,” he said.
“Some countries enforce very strict laws and harsh penalties for IP violations, under the approach that if the country is protected by strict IP enforcement, the economy will do better. There are several technology companies from the US which hope to come to Vietnam, but they are scared or worried about IP, because the enforcement of IP-related mechanisms is weak,” Sitkoff said.
For foreign companies, top priority should be given to registering their industrial design in Vietnam before introducing their products to the market, Nguyen Nguyet Dung, head of the Vietnam branch of the International Association for the Protection of Intellectual Property, told VIR. If the products are marketed, then the industrial design applications are filed for registration and such industrial design will lose its novelty.
Further, foreign providers could set up a network of local sales agents or distributors who are responsible for checking, supervising, and investigating the market, in order to discover infringements in a timely manner. Foreign-invested enterprises may, in return, provide support to the local enterprise to quickly settle the infringement, efficiently deter the violators, and save costs for enforcement actions.
The idea of establishing a specialised IP court remains a long-term approach in Vietnam, Quynh said, unveiling that in a more drastic move, Vietnam has drafted a document which mentions the establishment of an IP-dedicated division as part of courts.
The Viet Nam Futsal League season is scheduled to kick off on March 31 and will conclude on April 22, the event’s organising board has announced.
Six teams from four cities will participate in the League. They include Thang Long Warriors, Hanoi Buffaloes, Danang Dragons, Saigon Heat, HCM City Wings and Can Tho Catfish.
Teams will compete in a round-robin format in the qualifying and knock-out rounds.
There will be a total of 19 matches in Hanoi, HCM City and Da Nang.
In the opening matches on March 31, Thang Long Warriors will meet Danang Dragons and Hanoi Buffaloes will face HCM City Wings.
The best players of the event will be selected to join the national team to compete in international events in preparation for the World Cup Futsal.
Vietnam’s construction industry is reaching new heights with the skyscraper project Landmark 81.
Tuoi Tre reports that last Friday, March 9, Saigon authorities and Coteccons – the building’s main contractor – held a topping out ceremony for the structure. During the event, the very last steel beam was put in place on top of Landmark 81, setting its final height at 461.2 meters, according to a press release by Coteccons. The building, however, is still in the final stages of development, with an expected completion date in mid- to late-2018.
When finished, Landmark 81 will surpass its Hanoi counterpart, Landmark 72, and become the tallest building in Vietnam. In October 2017, Landmark 81 reached 270 meters in height after the completion of its 69th floor, thus surpassing the Bitexco Financial Tower as Saigon’s tallest structure.
On an international level, according to this ranking, the 81-story skyscraper will be the tallest in the Indochina Peninsula and the 14th-tallest in the world, just behind the 462-meter-tall Lakhta Center building that’s currently under construction in St. Petersburg, Russia. This will also so be the first time that a Vietnam-based structure has broken into the top 15 tallest buildings in the world.
Located in Vinhomes Central Park, Landmark 81’s main investor is VinGroup while British design and engineering consulting firm Atkins is in charge of the design.
Once we got over that incredible coincidence, I expected one of the standard English teacher expat stories: taking a break from the homeland, doing something different, difficulty finding a job post-graduation, or another similar motivating factor that sent Sean overseas.
I was hanging out in my favourite coffee shop in Da Nang and spotted a rare foreign customer in the place – a young man in his late 20s or early 30s with a Western accent in English. Turned out that Sean Murphy is also from Canada, so we had a lot in common – more than I would have ever guessed!
We actually come from the same hometown in the province of Ontario, Canada, so sitting in a little local coffee shop 15,000 kilometers away is about as likely as being struck twice by lightning in the same place!
Once we got over that incredible coincidence, I expected one of the standard English teacher expat stories: taking a break from the homeland, doing something different, difficulty finding a job post-graduation, or another similar motivating factor that sent Sean overseas.
The real story is much more unique than that. Sean and wife Jazz just picked up and left Canada in 2016 and set sail for Da Nang having never visited the city and with no living experience in Vietnam to bank on.
“We had no jobs, no local knowledge nor any local language skills. We had no friends, job leads, colleagues, or connections. What, me worry?” laughs Sean.
Pulling off a move like that takes a lot of courage but Sean didn’t seem fazed by the obvious obstacles in the way. He was almost nonchalant about it. Then he dropped this little bomb into the conversation:
“Oh, and we brought our 11 month old daughter Georgia with us.”
Dozens of things zipped through my mind: airports, tickets, airplanes, visas, baby food, doctors, landlords, toys, luggage, apartments, leases, playmates. Who would be crazy enough to take on all that?
Well, Sean and Jazz are crazy enough and they’ve made the very most of it.
Sean already had a good chunk of experience overseas including a 3-year stint in Thailand and a 6-month stay in Nicaragua. So did Jazz – in fact, they met in Thailand before returning together to Canada for 5 years.
“I was working on tours in Thailand and Jazz was one of my customers on a multi-week tour. After Jazz returned to Canada, we arranged to meet a month later in the Philippines, then again after that. I already had made job plans in the province of Alberta, Canada, so after a few meetings in Asia we were in the same city all the way back in Canada.”
Sean shares more background: “We’d already had it on our minds to go abroad as English teachers at some point, but the idea hadn’t yet turned into a clear plan. Then I got laid off from my job in the oil industry in Alberta early in 2016, so we agreed that the time was right to make our move overseas.”
They’d seen a documentary about a couple who travelled around Asia with their baby for a year during their maternity which provided much inspiration.
“If they could do it, so could we,” says Sean.
Local lady in Da Nang instantly smitten!
Sean continues: “We considered going back to Thailand because we are both familiar with it. But we did a lot of research and learned that the job market for English teachers in Vietnam was stronger than in Thailand. We also thought it would be good to add a new country to our work and life experience.”
And so it was concluded that Vietnam would be their new home. Then came the task of deciding where to go in Vietnam. After analysis, Da Nang got their vote because the couple feels it is the most liveable city in the country while boasting a strong economy, provincial feel, beautiful skyline, and gorgeous beaches.
So that was that.
“We weren’t totally in the dark about Vietnam. I’d already spent a few weeks researching before travelling around so I had an idea about what to expect. We anticipated a provincial vibe in Da Nang, somewhat laid-back, not a concrete jungle like the biggest cities, and we were right on with that expectation.” adds Sean.
Sean explains how welcoming the locals in Da Nang are with the biggest chore being fielding the endless questions about themselves, their lives, and, of course, what they were doing half a world away with little baby Georgia, now well known in the Internet world as “Our Curious Georgia.”
“People in Vietnam are extra crazy about kids,” says Sean with a grin. “They would just scoop up Georgia while we were in restaurants or parks without a second thought. It took some getting used to, but after a while it was fun and a great way to meet people.”
“All this may sound like nearly insurmountable challenges to you,” he goes on, “but it was easier than we thought, and, oddly, Georgia was more of an asset than an obstacle during our settling in period.”
“We found jobs, apartment, shopping places, and were comfortable in daily life within a month of arriving in Da Nang,” he says “and people were very sympathetic with our situation as young parents with a baby in tow. People were more willing to take an extra step to help us get settled because of Georgia – it was smooth sailing most of the way.”
Sean already had a part-time online teaching assignment and quickly scored another job in a language center in Da Nang. Jazz has part-time jobs as a virtual administrative assistant with two companies in the U.S. and one in Australia. The couple juggles caring for Georgia because of time zones but it works like a charm.
So, after a year and a half in Da Nang, what’s next?
“We’re expecting another baby in August so we’ll leave Da Nang, do some travelling in Asia, and head back to Canada where high quality health care is almost free,” explains Sean.
“We also have a lot of family in Alberta, so it’s once again the right move at the right time,” exclaims Sean.
I was surprised to hear what would be the biggest challenge about returning home: “Friends and relatives will expect us to settle in one spot as they did when Georgia was born,” says Sean. “Even more so with a second child in our family.”
Sean leaned over nearer and in a stage whisper says: “But it’s in our blood now and we have the confidence in ourselves gained by this experience.”
“So don’t be surprised if the two of us meet again in a year or so for coffee again.”
Sales of fire safety equipment have skyrocketed in Ho Chi Minh City following a serious apartment building fire that killed 13 people this week.
Many people in the southern metropolis, most of whom are living in apartment complexes, have started looking for masks, rope ladders, fire blankets, and other safety gear.
The demand for these objects has increased rapidly after a deadly inferno broke out at the Carina Plaza apartment complex in District 8 on Friday, claiming 13 lives and injuring nearly 100 others.
Although there are over 1,000 businesses selling fire safety equipment across Ho Chi Minh City, local residents are still uncertain of how to choose to the best gear as well as how to properly use them.
Long, who is residing on the 12th floor of an old apartment building in Binh Thanh District, said he had spent his weekend browsing for rope ladders and fire escape belts at some nearby stores.
“The Carina Plaza inferno alerted me to how necessary it is to familiarize myself with the fire safety gear,” Long stated.
A gas mask is seen in this photo: Photo: Tuoi Tre
Thanh Nga, a resident in Phu Nhuan District, has purchased a set of ladders for VND100,000 (US$4.4) per meter.
Thuy, who lives in an apartment complex in District 8, said she and her husband had already bought four gas masks at VND400,000 ($17.5) apiece and fire blankets at VND550,000 ($24) on Friday evening.
“These objects are for our safety. I hope we will never have to use them, however,” Thuy remarked.
According to Senior Lieutenant Colonel Luong Nguyen Hoang, director of the 4/10 Fire Equipment Center, which is managed by the municipal fire department, far more buyers have visited the store since the Carina Plaza tragedy.
“This is quite a knee-jerk reaction. People often rush to buy fire safety equipment following a conflagration. Such demand will fall shortly,” Hoang elaborated.
Aside from standard gear, some people are willing to pay higher for products of foreign brands.
Binh, a shopkeeper in Binh Thanh District, advertised a set of fire escape ropes and ladders made by South Korean firm Seohan, which was priced at VND4.3 million ($189).
A resident holds an emergency hammer. Photo: Tuoi Tre
When it comes to e-commerce in the APAC region, no one beats China for volume and revenue. But China’s e-commerce explosion spawned revolutions throughout the region, and the emerging markets of Southeast Asia are witnessing rapid online sales growth as well.
“Asia has emerged at the forefront of the global digitalization trend, with rapid growth of e-commerce, cross-border e-commerce and innovation,” says Miguel Warren, regional head of South East Asia, Payoneer Philippines. “The growth began with China … Chinese merchants have been leaders in taking advantage of the marketplace model to go global.”
But Payoneer, a digital payments company, is casting its gaze on both China and its southern neighbors. In its recent report, “Digital Economy in Asia: Insider’s Guide into the Global Opportunity,” the company identified key opportunities in places such as Vietnam, Malaysia, Thailand and the Philippines.
“Countries like Vietnam, and the APAC region as a whole, quickly moved to follow China’s lead. In the past couple of years, marketplaces like Lazada, Rakuten, Flipkart and Shopee have made it easy for Vietnamese merchants to sell online within the APAC region, and gave them the experience they needed to further expand around the world,” Warren says. “As these e-commerce merchants have matured, it has led to the explosion of growth we’re seeing now.”
Vietnam shows particular potential in the e-commerce space because of its economics and manufacturing history, Warren says. “Vietnam has a strong culture and a lot of experience with manufacturing and exporting. The local businesses have the foundation needed to produce goods for a global consumer base,” he says. He attributes Vietnam’s e-commerce growth to two additional factors: high internet penetration and an expanding workforce.
Vietnamese officials predict that the country’s e-commerce sector will grow 30-50% per year. Whether that prediction bears out, the appetite for online shopping is growing, and electronics and media and fashion will be key revenue drivers.
A young, tech-savvy market that brings its own set of challenges
In 2017, there were 53.86 million internet users in Vietnam, and predictions show that number reaching nearly 60 million in the next four years. The proliferation of mobile phones have accelerated e-commerce growth there and throughout the region. But mobile wallets play an integral role as well, particularly in developing markets where a high percentage of the population is unbanked. As of 2014, just 31% of Vietnamese held formal bank accounts, which can be a barrier to accessing goods and services.
However, as Garena Group President Nick Nash told McKinsey, mobile and PC wallets make a world of difference to e-commerce growth in Southeast Asia. Even consumers who don’t hold formal accounts can open a digital wallet and top them up via local vendors. The more e-commerce retailers that accept wallet-based payments, the greater access for Vietnamese consumers — and the greater profits for the sellers.
Miguel Warren (left), regional head of South East Asia, Payoneer Philippines, and Payoneer CEO Scott Galit want to capitalize on e-commerce potential in Vietnam. (Photo credit: Payoneer)
It helps that the Vietnamese population skews young. The median age was 30.4 in 2015, and young people here are increasingly educated, worldly and wired. That makes the country all the more attractive to online sellers. “Vietnam has a uniquely young population, and a very internet-connected one. This leads to consumers that are fast to adapt new trends and technologies, and tend to gravitate towards brands that are highly connected and engaged,” Warren explains.” Many are digital entrepreneurs themselves, and have an interest in moving the local business community forward.”
Nonetheless, Vietnam doesn’t offer a straightforward highway to riches. Warren says that despite the enthusiasm of Vietnam’s young and digitally engaged buyers, only 30% of internet-connected consumers have made online purchases. “The challenges and opportunities in Vietnam are closely connected,” he says. “While the Vietnamese population is more comfortable with e-commerce than many other markets, it still has a long path of growth ahead.”
Part of that growth will be accommodating local payment preferences and overcoming consumer skepticism about product authenticity. “Brands that find success in Vietnam will have to put more effort towards building the trust of the consumer,” Warren says. “There also need to be more investment into the logistics and payment infrastructure of the local market.” To that end, Payoneer has been developing on-the-ground partnerships in the country with the goal of building a payment network on which both retailers and customers can rely.
Vietnam still lags behind other markets in terms of e-commerce adoption and customer revenues. But with large e-commerce marketplaces such as Alibaba and Amazon continuing to make forays into the space — not too mention the native company NextTech looking to compete for dominance — it’s clear that e-commerce’s growth in Vietnam has only just begun.
Uber would get a stake of as much as 30 percent in the combined business.
Ride-hailing firm Uber Technologies has agreed to sell its Southeast Asian business to bigger regional rival Grab, a source with direct knowledge of the matter said on Sunday, in what would be the U.S. company’s second retreat from Asia.
The deal, which could be announced as early as Monday, marks the first big consolidation in the industry in Southeast Asia, home to about 640 million people, and will put pressure on rivals such as Indonesia’s Go-Jek, backed by Google and China’s Tencent Holdings.
As part of the transaction, Uber would get a stake of as much as 30 percent in the combined business, the source said. He did not want to be identified as the deal is not public yet.
A multi-billion dollar investment in Uber earlier this year by Japan’s SoftBank Group, already one of Grab’s main investors, had stoked expectations that Uber would consolidate its Southeast Asian business with Grab.
Grab’s deal with Uber would be similar to the one struck in China in 2016, when Didi Chuxing bought out Uber’s China business and handed over a stake in return.
During a visit to India in February, Uber CEO Dara Khosrowshahi had, however, pledged to continue investing aggressively in Southeast Asia, even as the company expected to lose money in the fast growing market.
Both Grab and Uber have raised billions of dollars from global investors to fund their expansion plans, as they offer heavy discounts and promotions to attract both riders and drivers.
Uber declined to comment and Grab, which has an estimated valuation of about $6 billion, declined to comment.
Citing people familiar with the matter, Bloomberg reported earlier on Sunday that Uber had agreed to sell its Southeast Asian business to Grab.
ComfortDelgro Savico Taxi, a joint venture between Saigon General Services Corporation (Savico) and Singapore’s ComfortDelgro, announced suspending its operations. The movement came after the operations of several traditional taxi firms were impacted by Uber and Grab.
According to Savico, the purpose of ComfortDelgro Savico Taxi’s decision is to look for other business opportunities as well as safeguard the capital that Savico and ComfortDelgro contributed to the joint venture.
Previously, the decision to restructure the firm’s operations was approved by Savico’s shareholders at the annual shareholders’ meeting in 2017. At the time, Savico released that ComfortDelgro Savico Taxi faced difficulties in maintaining its operations due to the competition with Uber and Grab.
According to Savico’s 2017 financial report, the taxi joint venture had total assets of VND92 billion ($4.038 million), however, its after-tax profit was VND235 million ($10,316) only. Previously, in 2016, its pre-tax profit was VND4.1 billion ($180,000), equaling 53 per cent of its plan for the whole year.
Along with ComfortDelgro Savico Taxi, the operations of traditional taxi firms have been seriously impacted by the appearance of Uber and Grab. Notably, in Ho Chi Minh City, half of the taxi firms stopped operations and the number of taxis decreased by 30 per cent. In Hanoi, the number of traditional taxis decreased by 35 per cent.
Two of the traditional taxi firms suffering the most serious impact from Uber and Grab are Vinasun and Mai Linh. Notably, in the nine months of last year, Vinasun reported a revenue of VND2.45 trillion ($107.9 million), equaling 58 per cent of its initial annual target.
In the third quarter of 2017 alone Vinasun reported double-digit losses. Notably, its net revenue was VND547 billion ($24.1 million) only, a record low since the end of 2011.
Besides, it reported a plunge in employees, with a total 10,000 people losing their jobs as of the end of the third quarter of last year.
Mai Linh, in the first six months of last year, reported a net revenue of VND1.72 trillion ($75.4 million), decreasing 5 per cent on-year.
Profit from other activities decreased by 16 per cent, to VND29 billion ($1.29 million), only half of what it was in the first half of the previous year. The number of Mai Linh employees decreased by approximately 6,000 to 24,000, decreasing 20 per cent on-year.
The city ranks in the top ten again on the annual Provincial Competitive Index (PCI), which assesses the ease of doing business, economic governance, and administrative reform efforts in each of the nation’s provinces.
The report, released Thursday morning was a joint effort between the Vietnam Chamber of Commerce and Industry (VCCI) and the U.S. Agency for International Development (USAID). For the first time, Quang Ninh Province took the top spot, followed by former-front runner Da Nang, as well as Dong Thap and Long An. Saigon has repeatedly appeared in the top ten, though it has dropped from the 6th place in 2015. Hanoi, on the other hand, is at the 13th spot this time.
The report, which began in 2005, relies on surveys from over 8,000 existing domestic, private businesses, 2,000 newly established enterprises, 1,500 foreign-invested enterprises (FIEs), provincial-level panel data and past survey data. It claims that overall, perceptions of corruption are declining as are burdens of administrative procedures while access to land and security is growing worse. Overall, it claims that nearly every province has seen significant improvement which coincides with increased optimism and interest from foreign investors.
Vu Tien Loc, chairman of the VCCI, summarized the report with the claim that “positive improvements have been the dominant trend in Vietnam’s business environment for the past year.” Bac Lieu and Ha Tinh provinces experienced the most significant improvements.
Saigon’s place on the list didn’t move from last year, despite the concerted efforts of local officials. They had stressed the need for more cooperation between local government officials and businesses as well as improving online services to minimize the need for cumbersome in-person processes and fostering greater trust in legal institutions. The city, however, dropped in its scores related to legal institutions as well as land access and time costs. It improved in business support and proactivity.
Noteworthy national trends include the figure that only 59% of firms paid bribes, compared to 66% last year. Since 2016, there was a 10% increase, to 45%, in private sector respondents who have a positive attitude of provincial governments. In a sign of improved oversight, since last year, the number of firms receiving subject to overlapping regulatory inspections doubled to 26%.
Of course, the report also contains negatives. Some 70% of firms claim that “relationship is important or very important to get access to provincial documents” and only 36% of firms feel confident in going to the courts to settle business disputes compared to 60% in 2013.
In general, the report can be considered a positive attempt for the government to rely on analytics and feedback to locate areas in need of attention. As the document states, “Through its work, the PCI has influenced policy priorities and reform choices, generating momentum for policymakers to improve their reform efforts and even positively alter the daily work and management of local officials.”
Samsung Electronics Co., Ltd. and MobiFone Global signed an agreement to boost engineering and commercial cooperation on 4G and 5G networks in Vietnam on March 22 in Hanoi in front of about 100 ICT businesses from Korea and Vietnam.
The event was held by the Vietnam Internet Association (VIA) in collaboration with the Korea National Information Technology Promotion Agency (NIPA). Three other agreements, including a memorandom of cooperation between Mobifone and Korean Tripath on location-based advertisment, a cooperation agreement for a consolidated wireline services between Korean Supernet Company and Newtaco Company, and an agreement on digital conversion solutions between Vietnamese FSI Company and JC1 Company from Korea, were signed.
A representative of Samsung considers 5G network the next big thing that Samsung is launching in many parts of the world with the increasing momentum of the Internet of Things (IoT). He said such a network is also a must for Vietnam as more and more hi-tech tools are applied.
Delivering keynote speeches, both Deputy Minister of Information and Telecommunications Do Minh Hong and Yoo Yong Min, Korean Minister of Science and Information, Communications and Technology, appreciated the joint efforts in building and developing a stronger relationship between the two countries through research and cooperation in the field of IT.
The leaders think Vietnam and Korea should co-operate to confront the 4.0 Industry, confirming that they will sign a memorandum of cooperation between the ministries on March 23 at the Presidential Palace in Hanoi, following Korean President Moon Jae-in’s second official working visit to Vietnam on March 22.
Deuk Jung Kim, vice president at NIPA, told the event that there is huge potential for ICT cooperation between the two sides, citing impressive numbers, like two million Korean visitors arriving to Vietnam, and a 120-time increase in trade volume since 1992 to $60 billion in 2017.
Kim said due to its outstanding human resources in the IT sector, Vietnam has a bright future in the field, adding that the Southeast Asian country was an important partner to Korea.
As a member of the Korean President’s delegation, Kim said Vietnam is the only country that his president has visited twice since he took office last year.
