A newly graduated preschool and primary school teacher receives an average VND3.2 million ($150) a month, far below the income of a taxi motorbike driver or a sidewalk ice tea seller.
A young preschool teacher receives VND3.2 million a month in salary, while a high school teacher or a university lecturer with 18-year experience receives VND8.5 million. A factory worker who finishes high school can earn more money than a teacher finishing university.
There are 39 officers and teachers at the Hoa My Kindergarten in Ha Dong district in Hanoi. On the payroll that the school’s headmaster Tran Thi Thanh Nhan showed to reporters, about 10 teachers had a monthly salary of around VND3 million. Nhan said these are young teachers who have been working for several years.
Duong Cam Nai at Hoa My Kindergarten
A newly graduated preschool and primary school teacher receives an average VND3.2 million a month, far below the income of a taxi motorbike driver or a sidewalk ice tea seller.
Duong Cam Nai is one. She began working there in 2012, after finishing Ha Tay Pedagogical Junior College.
Nai said she had only VND1.6 million in the first month of working. Later, after passing the civil service examination, she got higher wages. After five years of work, she now receives VND3.3 million a month, including allowance.
Nai has to pay VND1 million to pay for her son, who goes to a state-owned primary school. The fuel for motorbike costs her VND100,000 a week. The remaining VND1.9 million is spent on diapers and milk for the second child.
“I have to go to school without breakfast often. And I dare not make mobile calls unless it is very necessary. Luckily, I don’t have to spend much money on clothes, because I wear a uniform at work,” she said.
Nai said teaching at preschool is a hard job. As she has to be present at work at 7.15 am, she has to get up at 5.30 am to prepare breakfast for children before leaving home at 6.30 am. She never gets home sooner than 7 pm.
Nai and her family have been living with parents-in-law. “My husband is a phone repairer. As our income is modest, we still need support from parents,” Nai explained.
Nguyen Thi Hoai, an informatics teacher at a secondary school in Hanoi with 3-year experience, also receives VND3.2 million a month.
Despite the low wage, she has to travel 13 kilometers a day from home to school, where she has to undertake a lot of work – from teaching to organizing events, taking care of students and running the school’s website.
Fire-fighting police in districts throughout HCM City are working with investors and managers of apartment buildings to strengthen fire-prevention measures at all high-rises and apartment buildings in the city, following a fire at the Carina Plaza apartment complex in District 8 that killed 13 people and injured 50 on March 23.
Since March 24, fire-fighting police in Tan Binh District, for example, have been checking fire alarms, emergency sprinkler systems, and other fire-prevention devices at many high-rises.
In Tan Phu District, residents at the Phu Thanh apartment building were informed about a similar check which took place from March 26 to 28. On March 25, firefighting police engaged in fire-prevention and fire-safety training at the building.
On March 24, residents were shown how to escape down the stairs and exist safely during a drill at an older apartment building on Nguyen Thi Minh Khai Street in District 3.
Tran The Thuan, chairman of the District 1 People’s Committee, said that fire-prevention systems at 161 apartment buildings in the district had recently been checked.
At a press conference yesterday, Colonel Nguyen Minh Thong, chief of the investigative police division’s secretariat, said that the cause of the Carina Plaza fire was from a motorbike parked in the basement, Thong said. No one had noticed the small fire and within slightly more than 13 minutes the fire had quickly spread.
“If this fire had been discovered quickly, a small fire extinguisher could have put it out,” he said.
An initial investigation showed that the apartment complex’s fire alarms and the sprinkler system did not operate.
“Residents only knew about the fire thanks to shouts from others,” Truong Huy Bang, who was living on the 12th floor of the building, told Viet Nam News Agency.
The HCM City Police on March 26 started criminal proceedings in the case of the Carina Paza fire.
City leaders have asked the District 8 People’s Committee to work with the investor of the Carina Plaza apartment complex to provide assistance to victims and residents, including fees for room rentals.
Of 120 fires occurring in the first three months in the city, the Carina Plaza fire was the most severe, according to the city’s People’s Committee report. Of the total number of fires this year, there have been a total of 15 fatalities.
A fire alarm is tested at an apartment building in Tan Binh District. — VNS Photo Chi Cong
Precautions
HCM City Party Committee Secretary Nguyen Thien Nhan has asked fire-fighting police to submit a report on the status of fire-prevention equipment and procedures at the Carina Plaza building.
More fire drills and guidance on how to exit buildings safely should be carried out at the building, he said.
The Ministry of Construction is also working with the city’s Department of Construction to check all apartment buildings in the city and require buildings’ investors to solve all shortcomings.
The ministry has urged developers, builders and partners to follow technical standards for construction of apartment buildings.
Sr Lt Col Nguyen Thanh Huong, acting director of the Fire Fighting and Prevention Police Department, said the department would provide further guidance to residents on rescue methods and ways of escape.
He urged the public to report violations of fire regulations and to call 114 to report a fire.
According to the department’s figures, seven apartment buildings in the city that do not follow fire-safety regulations have people living in them.
Last year, a department report found that several apartment buildings in the city had yet to be checked by the department but investors had continued to allow people to buy apartments before or during construction.
Of the buildings that were checked, the department found that many had fire equipment but they were not used properly, and alarms did not operate, according to the report.
The department noted in its report that it faced challenges because the radius of operation is too wide between fire-fighting police divisions in the city’s 24 districts.
Last year, the city’s total of six firefighting divisions were responsible for managing two districts each, and it took time for fire trucks to access fires, according to the department.
Speaking at a meeting held yesterday, Nguyen Thanh Phong, chairman of the municipal People’s Committee, said that fire-safety activities had been carried out in the city, but effectiveness had been low.
Today, the committee is holding a conference on fire prevention and fighting at apartment buildings and high-rises.
Vo Van Hoan, chief of the committee’s secretariat, said that HCM City Party Committee Secretary Nguyen Thien Nhan had ordered a review and the publication of a list of apartment buildings, to be classified as fire-safe, less safe or unsafe.
“This announcement will help investors pay more attention to fire safety and residents can also take the initiative in improving things,” Hoan added.
Low public awareness
Residents in apartment buildings have a low awareness about fire-prevention regulations and procedures, according to Le Xuan Minh of the fire-fighting police in Tan Phu District.
He said exit doors should not be blocked with stones because smoke can pass through the openings to higher floors, leading to suffocation.
Huong of the Fire Fighting and Prevention Police Department said that suffocation was the cause of death for 11 of the 13 ill-fated victims at the Carina Plaza fire.
An inspection also showed that cigarette ash was found in the buildings’ basement, which had more than 1,500 parked motorbikes and cars.
In other buildings in the city, far too many cars and motorbikes are parked in small spaces, such as in the Phu Thanh Building in Tan Phu District. This can block fire trucks from entering the building grounds, Minh said.
A fire extinguisher is installed at an apartment building in Tan Phu District. — VNS Photo Gia Loc
Rush for fire-prevention devices
After the deadly Carina Plaza fire, many city residents began looking for high-quality face masks, blankets, clothes and drop ladders.
A resident living on the 10th floor of Phu Thanh Building said he did not know where he could purchase high-quality items. He said he also wanted to install a rope-and-pulley system.
A female resident of the Truong Sa B1 apartment building in Binh Thanh District, who declined to be named, said that she would buy drop ladders and look for information about fire prevention on social media.
Other residents are also paying more attention to such devices. Over the last few days, purchases of fire-prevention items rose by 30-40 per cent compared to normal days, according to the Centre for Fire-Prevention Devices.
Minh of the fire-fighting police in Tan Phu District suggested that residents install a rope-and-pulley system if they can afford the cost, which is at least VND10 million (US$438).
However, he said they should ask for guidance from the seller on how the system should be properly installed, and should avoid fake products by doing research about sellers and products.
Lieutenant Colonel Huynh Quang Tuyen, deputy head of the HCM City Fire Prevention and Fighting Police Deparment’s Advising Office.
What are your challenges in checking for fire safety in such locations?
Every year the Fire Fighting and Prevention Police Department can only inspect an apartment building four times and commercial buildings once. The building management has to inspect the fire safety equipment by itself the rest of the year. If we are to do unannounced checks, we would need complaints from residents or orders from higher-ups. Otherwise, before every inspection we have to inform the buildings three days in advance so that usually some would try to cover up their flaws temporarily.
It is, however, difficult to verify that fire fighting and prevention equipment are working properly because at the time of inspection the systems and equipment are still operational, meaning we have no right to order them to replace them.
It is not regulated by law to order apartment developers to replace fire fighting and prevention equipment unless it is out of order.
The problem is most apartment developers install fire fighting and prevention equipment for the sole purpose of dealing with inspections instead of for the safety of the people living in the apartment.
There are constant false fire alarms in some apartments, causing the apartment management as well as residents to gradually lose awareness of the potential risk. They even shut down the fire alarm system. It matters since when a fire does occur, it will have serious consequences.
It is common for most apartment developers to hand over the apartments to buyers for use even before the apartment has been checked for fire fighting and prevention.
However, under the current law on fire fighting and prevention, the above act only attracts a maximum fine of VND80 million (US$3,524). It won’t be subject to further sanctions unless the owners repeat the act with serious consequences.
In addition, we cannot really force them to comply. Earlier we could work with different sectors such as electricity and water to cut off offenders’ power and water supply to force them to comply with the regulations, but now we cannot. Since the maximum penalty is too low, some apartment owners just pay the fine and let residents in. The fine amount is nothing compared to the compensation they have to pay thousands of buyers if their contracts are infringed. Also dealing with violations is not easy since it involves working with other departments and sectors.
What will the fire police do to force apartment developers to be more responsible about fire safety?
Different departments need to work together and propose methods to discipline irresponsible apartment developers. It is also important to educate people about laws regarding fire safety and fire safety-related skills through the media besides not using any buildings without a complete fire safety system.
Vo Van Hoan, chief of the city’s People’s Committee’s secretariat
The city will increase the number of inspections of fire-safety regulations at residential buildings and apartments to raise awareness about fire prevention and fire-fighting among locals and enterprises.
Fire-safety handbooks will be provided to all households in the city, especially in apartment buildings.
Regulations on construction management as well as fire prevention and safety will be publicised, and the city authority will also publicise procedures dealing with the handling of investors who fail to meet fire safety standards.
Working for Uber was the main jobs for many Vietnamese drivers and they are now worried about being unemployed after Grab announced on March 26 that it had acquired Uber’s operation in Southeast Asia.
Many drivers in Vietnam borrowed millions of VND to buy cars to work for Uber and are still in debt. Nguyen Duc Hiep, an Uber driver, said he was paying a monthly installment of VND8.5m (USD372) for a VND365m car. Hiep worked for Grab previously but his account was deleted after he violated a contract term. “I was earning about VND1m a day. But I don’t know what to do now since Grab does not reopen the deleted accounts,” he said.
He may have to find work at traditional taxi firms or sell the car and incur some VND100m (USD4,400) loss.
Driver Bui Quyet from Hanoi said he had received the notification from Uber on March 26. According to Quyet, those had borrowed money to buy cars are worried over the service fee rates. Uber took 20% from drivers while Grab will take 28.36%. Such rate will result in low profits, especially for short trips, and he will not have enough money to pay fuel, maintenance and bank interests.
Meanwhile, Grab taxi motorbike drivers worry about fierce competition among themselves due to the sudden increase of drivers. According to some drivers, the number of people borrowing money to work for Grab and Uber in the future will decrease and the number of part-time drivers will rise.
Nguyen Cong Hung, head of Hanoi Taxi Association, said Grab might monopolise the market after the acquisition.
On March 29, Deputy Minister of Transport Nguyen Ngoc Dong said Grab’s acquisition was legal. Talking about the drivers’ call for help, Dong said they were willing to work with drivers and answer their questions.
“When the drivers decide to invest in their cars, they didn’t research thoroughly enough. The government can’t decide for them whether they should buy the cars or not. The role of the authorities is to manage how the cars will run and the fares,” he said.
Uber Technologies sold the business in Southeast Asia for a 27.5% stake in Grab on March 26. Uber also closed all of their offices but hasn’t guided their partners on how to switch to the new app.
A dealer had offered him $446 for the green sea turtle but he turned it down.
A Vietnamese fisherman released a rare turtle back into the ocean on Wednesday after snaring it off the central coast of Ha Tinh Province despite being offered a large sum of money for the creature.
The incident was reported on Thursday by the management committee of Ha Tinh’s fishing ports.
Nguyen Van Truong said a dealer had offered him VND10 million ($446) for the green sea turtle (chelonia mydas), but he had refused. Vietnamese’ average annual income is $2,385.
“Turtles are endangered animals so I want to release it back into the sea and play a part in the conservation of the species,” he said.
Truong received help from local authorities to free the marine creature back into its natural habitat.
This isn’t the first time a rare sea animal has been saved by compassion in Vietnam. In August 2017, fishermen in the central province of Quang Tri released a member of the same turtle species that had become trapped in their net.
The species is listed as endangered by the International Union for Conservation of Nature (IUCN) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
Just recently, four chelonian species in Vietnam were listed among the world’s 25 most endangered tortoises and freshwater turtles. The list was published by the IUCN’s Turtle Conservation Coalition in its quadrennial report.
Vietnam is home to green, hawksbill, loggerhead, leatherback and olive ridley sea turtles, all of which are listed in the country’s Red Book for rare and protected wildlife. The country outlaws the hunting or trade of any of the five species.
These delicate morsels pack a tasty and beautiful punch.
Snails might be considered a bizarre snack in some countries, but in central Vietnam, these tiny, colorful seashells are parts of the local cuisine.
These little snails, or oc ruoc in Vietnamese, are farmed at the end of spring and in early summer. They wash up on the beach naturally, but to catch large quantities, fishermen need to go further out to sea and scrape them from the seabed using nets.
Oc ruoc are popular in coastal provinces such as Quang Nam, Binh Dinh and Phu Yen, from where they are delivered to markets in Ho Chi Minh City. The snails are then boiled with lemongrass, chili and salt. The colorful shells retain their beauty after being boiled, with all the intricate texture.
A can of snails costs 15,000VND ($0.6). Photo by Ngoisao.net
Getting the snails out of their shells is no easy task for beginners. Experienced eaters know that a special tool is required for this delicate work. “It’s best to use a pomelo thorn to pluck the snails out. The thorns give the snails a good smell,” said one vendor.
Oc ruoc taste like the ocean, with their salty, chewy texture. However, like many other Vietnamese dishes, they are not complete without a good dip, usually a mixture of fish sauce, chili, lemongrass and garlic. The unique taste can be easily ruined with sand if the chef doesn’t soak them in water for long enough before boiling. For most people, a cold beer is the finishing element.
Snails need to be picked out with a special tool, usually a pomelo thorn. Photo by Ngoisao.net
Vietnam will place No 103 in April’s world ranking after their 1-1 draw against Jordan at the 2019 Asian Cup qualifier in Amman on Tuesday.
The draw brought Vietnam 38 points for a total of 331 points and helped the team close in on the top 100, a leap of 10 steps forward.
Head coach Park Hang-seo promised to make Vietnam one of the 100 strongest squads in the world when he took charge of the team last October.
With the new ranking, which will be announced on April 12, Vietnam are still No. 1 in the ASEAN, followed by the Philippines and Thailand.
The new position places Vietnam in group three of seeds, together with Iraq, India, Uzbekistan, Qatar and North Korea, at the Asian Cup final next January in the United Arab Emirates.
The Philippines and Thailand also join Vietnam in the UAE tournament, but they are not seeded.
A draw ceremony will be held on April 5 in Dubai. The Cup will be held in eight stadiums across four cities from January 1 to February 1 with the participation of 24 squads.
This will be the second time that Vietnam take part in the continental tournament. Last time, in 2007, the team entered the quarter-finals.
Vertex Ventures, Grab’s first investor, told that the startup will not monopolise the Vietnamese ride-hailing market after its controversial merger with Uber earlier this week.
According to Carmen Yuen, partner at Vertex Ventures, Grab will not become the only player in Vietnam’s booming market for ride-hailing services, even after it merged with Uber, its major competitor in Southeast Asia.
The investor told VIR that a newcomer will soon break into the scene and challenge Grab’s dominant position in the region, including Vietnam.
“I am sure some wealthy investors will back another company and compete with Grab,” said Yuen during the Invest ASEAN 2018 conference held by Maybank Kim Eng in Singapore this week.
Vertex Ventures was the only investor in Grab, formerly GrabTaxi, during a Series A fund-raising round in 2014.
The investor pointed out a similar case in China: Uber’s operations in the country were acquired by major rival Didi Chuxing in 2016 as part of a massive $35-billion deal.
The merger has sparked concerns over the latter acquiring a monopoly over the domestic ride-hailing market. However, in early 2018, the leading consumer buying retail website Meituan has announced its venture into this market, facing off with Didi Chuxing.
According to Carmen Yuen, it is natural for newcomers to want a share in such a fast-growing market like Southeast Asia, especially Vietnam. Just recently, Indonesia’s tech giant Go-jek has announced its expansion into the Philippines and Vietnam, five years after it came to dominate the Indonesian market in a wide range of services, from ride-hailing to delivery and laundry bookings.
The battle between Grab and Go-jek will be an interesting one, as both startups are flush with capital from eager investors in the region. Grab recently partnered with Hyundai Motor after raising $2 billion from Didi Chuxing and SoftBank last year, while Go-jek collected $1.2 billion last month from a dozen investors, including Google and BlackRock.
This week, Grab announced its merger with Uber’s ride-hailing and food delivery business in Southeast Asia. In return, Uber will own a 27.5 per cent stake in Grab and its CEO will become a member of Grab’s board. The merger is still subject to regulations, and Singapore’s competition watchdog said that it will keep an eye on Grab.
The merger, which has been talked about for months, sparked fears of monopoly and fare hikes in Southeast Asia. Uber’s employees, including drivers, are concerned that they may lose their jobs following the acquisition.
In interviews and news releases following the merger, Grab said that it will ensure that rates remain affordable and arrange new positions for Uber’s staff members.
Forbes has released its third annual “30 Under 30 Asia” list, featuring four Vietnamese young people; Nguyen Van Quang Huy, Pham Anh Duc, Luu The Loi, and Victor Tran.
Four Vietnamese men have broken into this year’s 30 Under 30 in Asia, an annual list compiled by Forbes to recognize the most influential people in Asia across various categories.
They are Nguyen Van Quang Huy, Pham Anh Duc, Luu The Loi and Victor Tran.
Huy, 28, from Ho Chi Minh City is named in the enterprise technology category.
Nguyen Van Quang Huy, 28
He is the founder of Holistics Software which provides data infrastructure services and business intelligence for companies. The startup is now operating across Singapore, Vietnam and Indonesia. Huy also cofounded the non-profit Grokking Vietnam, which develops a community of programmers and engineers in Vietnam through talks, workshops and training.
Pham Anh Duc is co-founder and CEO of online healthcare discovery and listing platform ViCare.vn, and is named in the healthcare & science category.
Pham Anh Duc in a photo posted on his own Facebook page.
The 29-year-old from Hanoi wants to make healthcare more accessible to all. The website includes information on healthcare facilities, advice on healthcare services and answers to health related questions. The company currently has some 50,000 clinics and around 40,000 doctors.
Luu The Loi and Victor Tran, both 26, co-founders of KyberNetwork, an instant decentralized crypto currency exchange service, are recognized in the finance and venture capital category.
Luu The Loi is a co-founder of KyberNetwork, a pre-coded trading platform which has recently raised US$52 million from more than 21,000 members in over 100 countries
Victor Tran, 26, is another co-founder and CEO of Kyber Network. He is also a lead engineer at SmartPool.
With KyberNetwork, the team aims to protect users from hacking and fraud by providing a secure way for them to convert coins and tokens.
Now in its third year, the annual 30 Under 30 Asia list features 300 young innovators and disruptors across 10 categories from 24 countries across Asia-Pacific – including Azerbaijan and North Korea for the first time.
The list this year “features 300 young innovators and disruptors across 10 categories who are re-inventing their industries and driving change across this diverse region.”
Last year, Forbes honored three Vietnamese entrepreneurs and rapper Suboi, who has been dubbed Vietnam’s “Queen of Hip Hop” by prestigious global news agencies such as The Wall Street Journal, The Guardian and CNN.
In 2016, the magazine named seven Vietnamese entrepreneurs and scientists on its annual list.
Facebook has just blocked API, affecting a large number of Vietnamese online businesses utilising the social network as a trading platform.
On March 27, many large fanpages and online services simultaneously announced problems related to applications developed on Facebook and Messenger in Vietnam.
Accordingly, Facebook accounts cannot be logged into temporarily. Almost none of the relevant apps like Facebook Shop and third party apps using application programming interface (API) collecting user data work.
A large number of online sellers are affected due to Facebook’s blocking API
“Vietnamese developers’ applications connected to Facebook and Messenger have stopped working two days ago,” said Nguyen Thanh Tung, a programmer supporting sales websites in Ho Chi Minh City.
Tung also said that all the websites’ features and apps related to Facebook user data are affected.
“Too many people are affected, our group members have to deal with each customer, but cannot do anything,” Tung added.
According to Doan Trung Thong, a representative of an e-commerce enterprise from Hanoi, all online sellers must use tools supporting conversation management on Messenger, interact with customers on Facebook to increase feedback efficiency, then consolidate all orders from comments and guests messages to the fanpage.
“Online sellers have to use Facebook’s default tools that have low efficiency and are not optimised for business,” Thong added.
On March 26, Facebook announced changes related to APIs and third-party applications to all developers using the Messenger platform. The social network is reviewing all APIs to limit the data collected from users.
“Blocking API is a move to reaffirm the apology after the scandal of Cambridge Analytica company breaking into over 50 million users’ personal information. The move of blocking and checking all applications aims to ensure the rights of users,” said Tran Trong Tuyen, general secretary of the Vietnam E-Commerce Association (VECOM).
API currently cannot work in Vietnam
Sharing a similar third party access control issue, in November 2017, Facebook’s fellow social media platform Youtube previously came under fire after paid advertisements were displayed side by side with images of children that drew loads of abusive and lewd comments, causing protests and waves of boycotts among users and advertisers.
While Facebook encountered the API rough patch, multimedia and messaging app Snapchat was reported to provide conditional access to third-party applications to Snapchat’s user data to further personalise advertisements and other features, according to newswire The Verge.
Previously in 2015, the US-based employment social media platform LinkedIn also announced API limitations to a remarkable number of third parties, only allowing individual members to share their professional identity, certification, and professional content, as well as companies to showcase their professional content on their registered company API, which was later reported to curb a tremendous amount of partnership deals among LinkedIn individuals and pro-profit businesses.
In late 2017, media-sharing platform Instagram was hit by scandal when the personal data of high-profile accounts belonging to public figures and influencers was reported to be compromised by hackers, using a technical loophole on the platform’s API to leak and trade email addresses and personal phone numbers.
The VN Index has been increasing sharply since the beginning of the year with capital flowing to finance and banking, real estate, and shares with a high capitalization value.
Last June, Vietnam missed the opportunity to be added to MSCI’s (Morgan Stanley Capital International) list of emerging markets in its assessment period.
Three market rating agencies, namely MSCI, FTSE Russell, S&P Dow Jones, give annual periodic assessments.
The assessment is based on economic development level, political stability, market size and liquidity, market operation efficiency, market access of foreign investors and capital flow capability.
With the sharp price increases in 2017 and the strong rise this year, coupled with lifting of the foreign ownership ceiling and state’s divestment from state-owned enterprises, Vietnam now can satisfy requirements in market scale and liquidity.
Vietnam now has more than three companies which have capital of $1.27 billion and more, transferable capitalization value of $635 million and more, and stock liquidity equal to 15 percent of ATVR (Annualized Traded Value Ratio).
This means that the number of the companies satisfying MSCI standards is higher than required.
An analyst commented that if compared with Pakistan, which was upgraded in June 2017, Vietnam has a larger scale and higher number of listed companies.
Vietnam has also been leading frontier markets in terms of growth with a high growth rate of 50 percent last year.
Market analysts think that Vietnam may be upgraded in June 2020 by MSCI. However, some believe that this may happen sooner, possibly in the assessment period in June 2018.
Meanwhile, a local newspaper quoted Vo Tri Thanh from the Central Institute for Economic Management (CIEM) as saying that Vietnam’s stock market has a 25 percent chance of being upgraded to the “emerging market” status by 2021.
Reports show that the VN Index has increased by 15.2 percent so far this year, while the VN 30 Index has increased by 14.1 percent, of which 28.2 percent increase has been reported for bank shares, 21.7 percent for real estate and 19.3 percent for finance services.
It is still unclear when Vietnam will be upgraded to an emerging market. However, the price increase of shares with big capitalization values (banking, securities, insurance and real estate) which would help increase Vietnam’s proportion in the MSCI index after the upgrade.
Analysts estimate that Vietnam stock market may obtain a 30-40 percent growth rate after the upgrade, which happened with the Arab Emirates, Qatar and Pakistan.
‘If we dare to be pioneers, soon this art will be accepted in Vietnam.’
Makeup artist by day, cross-dresser by night, Betty is among a vanguard of Vietnamese drag queens shaking up Hanoi’s nightlife – and social norms – in a city where such performances remain little known.
In a lime green barely-there mesh dress and towering silver heels, the 22-year-old hopes to bring drag into the mainstream with regular performances in Hanoi, a conservative capital better known for its colonial charm than men in sequined minis.
“If we dare to be pioneers, soon this art will be accepted in Vietnam,” Betty told AFP before a show Saturday that stirred up crowds with renditions of hits by Whitney Houston and Alicia Keys.
In this photograph taken on March 24, 2018, Vietnamese drag queens Pinky (L) and Vanessa (R) prepare for a show at a local bar in Hanoi. Photo by AFP/James Duong
The drag night started as a weekly viewing party for the hit TV series “RuPaul’s Drag Race” and quickly transformed into a show of its own – drawing a handful of men in drag to the stage for punchy lip-sync performances.
Organizer Tamah Lake said it’s the only event of its kind in Hanoi.
“It’s brought it more into the open… I think it’s becoming slightly more mainstream and slightly more well-known,” said Lake, not herself a drag queen, who works as a teacher during the week.
The drag queens who turn out for her Saturday night parties say they have few places to perform in a city where cross-dressing is almost unheard of, unlike in the West where starlets like RuPaul – the drag queen mother – have helped to popularise it.
“In Vietnam there are drag queens that have been active for a long time but have not been acknowledged. This show helps more people know about our art,” said Betty, who started the five-member drag group “Victeam” in Hai Phong, east of Hanoi.
Drag queen Vanessa performs in a show at a bar in Hanoi, one of a vanguard of Vietnamese cross-dressers shaking up the city’s nightlife and social norms. Photo by AFP/James Duong
Vietnam is seen as relatively progressive on LGBT issues – the one-party state decriminalised gay marriage celebrations in 2015, although it stopped short of full legal recognition for same-sex unions – and the government is currently drafting a transgender law to allow legal gender changes.
But cross-dressing can help to boost tolerance, according to Vuong Kha Phong, LGBT rights programme officer at Vietnamese NGO iSEE.
“Drag queens being out there performing helps tremendously in getting people to know and be more comfortable with diversity,” Vuong told AFP.
Though the drag scene is still just emerging in much of Vietnam, cross-dressing has historic roots: the centuries-old ritual of “Hau Dong” requires mediums to dress as the opposite sex to channel spirits.
Still, when it comes to modern cross-dressing, some drag queens face pushback from the community for blurring gender norms.
First-time performer Za Za Zellia hopes the drag show will help to sway conservative attitudes.
“Hanoi is really traditional, they don’t hate (drag) but they don’t approve of it at the same time,” the 25-year-old told AFP, after debuting in a Gatsby-inspired sequined look.
“This just tells people it’s alright, it’s completely normal,” Za Za said after the show, a huge white feather emerging from a wig of thick black curls.
Vietnam International Bank (VIB) is counting on surging foreign investment inflows in 2018 to offload its treasury shares to foreign investors as soon as in the third quarter and is looking to bolster its charter capital through a private placement.
VIB chairman Dang Khac Vy said at the bank’s annual general meeting (AGM) held today in Hanoi that its research team is working with at least five interested foreign partners from the US, the EU, and Japan on the treasury share sales, which is expected to be completed in either the third or the fourth quarter of this year.
“We see a favourable environment that supports our treasury share sales at this time. A number of foreign investment banks with a large pool of spare funds find Vietnam as a destination for their investment. They are indeed very interested to invest in Vietnam,” said Vy.
“We are negotiating with these investors, and should we feel any proposal to be most advantageous, we will try to seal the deal within this year,” he added.
Accordingly, part or all of the more than 33.868 million shares treasury shares, valued at VND718.64 trillion ($31.91 million), following its treasury share distribution to employees as a bonus, will be available to investors.
The treasury shares were bought back in 2017, when VIB was traded at VND22,000 ($0.98) on the UpCom. VIB closed at VND43,000 ($1.91) today.
VIB will also offer 10 per cent of its holdings, equivalent to a maximum of 56.44 million shares, to investors through a private placement this year, as part of an attempt to boost its charter capital to VND8.1 trillion ($360 million).
In addition, the bank is looking to list its stocks on the Ho Chi Minh City Stock Exchange (HNX) later this year or in 2019.
VIB reported a pre-tax profit of VND1.405 billion ($62.44 million) in 2017, doubling its 2016 result and achieving 187 per cent of the target set for the year.
Credit growth, meanwhile, advanced some 26 per cent while its non-performing loans ratio stayed at 2.49 per cent.
GOV.UK recently released a guidance on the risk while doing business oversea. This aricle will be focus on the risk of Vietnam, which aims to provide information on this page on the key security and political risks which UK businesses may face when operating in Vietnam.
1. Political
Vietnam is a one-party state ruled by the Communist Party of Vietnam (CPV) which provides strategic direction and decides all major policy issues. The country is led by the so-called “four royal pillars”: CPV General Secretary, State President, Prime Minister and National Assembly Chair. Policy, which includes promoting stability, retaining the political status quo, domestic economic development and international integration, is made on a consensus basis by the Politburo. Regional security, especially in relation to the South China Sea, is a major foreign-policy priority for the CPV.
Party leaders and the leaders of the government, are selected every 5 years at the National Party Congress. The most recent Congress was held in January 2016 and in May 2016 a national election was held to elect the 500 Deputies who make up the National Assembly, Vietnam’s legislative body.
Vietnam is one of the more politically stable countries in South East Asia. Its leadership does not welcome dissent. Internal conflict is rare although in 2016 and 2017 there were a small number of high-profile protests including in relation to an environment disaster in Central Vietnam. Land rights also continue to be a source of social unrest. There are strict restrictions on freedom of speech which can affect internet usage, particularly the use of social media and personal blogs, access to which can be blocked without notice. Mainstream media outlets remain fully under the control and direction of the Communist Party so many people follow independent bloggers for their news updates. Many bloggers suffer harassment, arrest and imprisonment for criticising the Communist Party.
2. Economic
In recent years economic growth averaged 6.2%. Vietnam’s economy grew at 6.8% in 2017. GDP per capita has increased by 350% since 1991 (2nd only to China) and Vietnam now has the fastest-growing middle-class in South East Asia. Although slowing in recent years, growth has now ticked up again, led by the foreign-invested manufacturing sector.
The country has long been an attractive FDI destination, particularly for Japan, South Korea, Taiwan and Singapore. FDI inflows average 8% of GDP annually, the highest among major emerging markets in ASEAN and proportionately larger than China. More than half of total FDI stock is in manufacturing. Electronics and mobile phones, in particular, have since 2010 attracted large investments; around 70% of Samsung’s smart-phones are now made in Vietnam. Most manufacturing outputs are for overseas markets.
In 2017 total exports were valued at £171 Bn (ex-rate USD/GBP =0.8) with mobile telephones and spare parts being the greatest (21% – Samsung has a large manufacturing facility) followed by textiles and garments (12%). Imports were valued at £168 Bn with machinery and spare parts being the largest (18%) followed by electronics, computers and spare parts (16%).
Total UK good exports to Vietnam were £482m in 2016, led by machinery and transport equipment. Imports from Vietnam totalled £3.78Bn with the largest being computers, electrical goods and mobile phones. The UK is one of the most active EU investors in education and training and financial services.
Total trade already amounts to 180% of GDP. Negotiations on the EU-Vietnam FTA were concluded in August 2015 and ratification is expected in 2018. Vietnam was a member of the Trans-Pacific Partnership (TPP) and made significant commitments to domestic reforms mainly to secure better US market access. Since US withdrawal from TPP Vietnam has signed the CPTPP.
The state’s presence in the economy remains large in Vietnam: it maintains full ownership of more than 700 SOEs. Under the light of fiscal deficit, the Government is keen on boosting the participation of non-state sectors in the economy including privatising several major SOEs and increasing the use of PPPs for infrastructure development. The recent commitment to sell some of the most lucrative SOEs with a more transparent (and credible) timeline is estimated to pump USD 7 bil to the State Budget. In late 2017, Vietnam’s government successfully divested 53.59% of its shares in Sabeco, the largest beverage company in Vietnam. The deal is expected to generate USD 4.8bil and substantially bolster the state budget.
Vietnam is ranked 68th (out of 190) in the World Bank’s (WB) “Doing Business 2018” report, increase by 14 places in overall rank in comparison with the previous year. The significant improvement recognises the efforts of the new leadership elected in early 2016, who have continuously sent a strong commitment to create a favourable condition for the business environment.
Read the World Bank’s more in-depth publication on the issues of Doing Business in Vietnam.
Vietnam is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, otherwise known as the New York Convention, and its provisions are incorporated into Vietnamese law. However, unofficial statistics suggest that international arbitration awards are recognised in only approximately 50% of cases within the country.
Further, businesses have expressed disappointment with how the Court process operates. There are issues of transparency and enforcement of judgments as well as litigation being expensive and lengthy.
3. Business and Human Rights
Until 30 June 2018 ‘British Citizen’ passport holders travelling for tourism or business can enter Vietnam for up to a maximum of 15 days without a visa. If you have a different type of British nationality – for example ‘British national (overseas)’ –- you’ll need to get a visa before entering Vietnam. You must get a visa before you travel to Vietnam if you want to stay for longer than 15 days and/or if you wish to re-enter Vietnam within 30 days of your departure. If you plan to leave Vietnam and re-enter from another country make sure you get a multiple visit visa before travelling. Make sure you know before you travel the type of visa you need for the purpose and duration of your trip. If you’re travelling for business reasons you should contact the relevant Vietnam government department in advance to check whether any licenses are required to carry out your duties.
The right to freedom of association and to collective bargaining remains restricted in Vietnam. But under the EU-Vietnam Free Trade Agreement, the Vietnamese Government has committed to ratifying the three key ILO conventions on collective bargaining (ILO98), on freedom of association (ILO87) and forced labour (Convention 105). Vietnamese workers are not currently free to join or form independent unions and all unions must be affiliated with the Vietnam General Confederation of Labour (VGCL). Vietnam has also ratified three further ILO Conventions : ILO100 – Equal Remuneration for Work of Equal Value, ILO111 – Discrimination in Employment and Occupation, ILO138 – Minimum Age for Employment and ILO182 – Worst Forms of Child Labour Convention. In June 2012 the Vietnamese National Assembly approved a revision of the Labour Code which included a number of important provisions including: extending maternity leave to six months; setting out the requirement for a minimum wage; preventing employees from working more than 50 percent over their official working hours in a day; reducing the maximum term of work permits for foreign nationals working in Vietnam from three years to two years and removing the work permit exemption rule for foreign workers coming to Vietnam to work for less than three months. The National Assembly is currently reviewing an updated version of the Labour Code which is scheduled to pass in 2018.
In recent years the National Assembly has also passed an amended version of the Law on Trade Unions, which defines the responsibilities of officially recognised trade unions to protect workers’ rights. The amended law did not remove the requirement for all trade unions to be officially affiliated to the Vietnam General Confederation of Labour (VGCL) nor the restriction on foreign workers from joining unions.
Female participation in the workplace is high but women still face institutionalised discrimination. For example, despite significant economic growth the gender pay gap has widened in recent years. Women are also much more likely to be employed in vulnerable employment with vulnerability and informality highest among ethnic minority communities. Job advertisements for senior positions often indicate a gender preference for men despite this being illegal.
Vietnam is one of the most progressive countries in South East Asia for LGBT rights. In 2015 Vietnam abolished regulations that prevented same-sex marriage and Vietnam has also passed a law allowing trans-gender individuals to receive gender reassignment surgery and to register under their preferred gender. Hanoi also hosts an annual Viet Pride event. But despite the legal reforms cultural discrimination of the LGBT community still persists.
For more information about the UK’s approach to business and human rights see the UK’s action plan on business and human rights.
4. Bribery and Corruption
Under the UK Bribery Act 2010, it is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to offer a bribe anywhere in the world.
In addition, a UK commercial organisation can be considered liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.
British companies should not engage in any activities regarded as corruption under the UK Bribery Acts. Not only are there issues of business integrity to bear in mind, but it is also illegal. Invariably, corruption is related to lack of professionalism and control, all of which are damaging to long-term business.
Corrupt practices are widespread in Vietnam. Anyone engaged in business in Vietnam may encounter, and at the very least should prepare for, the challenges of corruption in one form or another. Practices such as facilitation payments, bribes and giving and receiving expensive gifts in order to develop business relationships are still common. There is also very little judicial independence in Vietnam and corruption remains a serious problem in the court system.
The Party Leadership and Government have publicly committed to addressing corruption and have taken a number of concrete actions, including adopting and improving anti-corruption laws, developing anti-corruption strategies, strengthening relevant institutions and ratifying the UN Convention against Corruption (UNCAC). Vietnam’s score on Transparency International’s 2017 Corruption Perceptions Index improved by two points to 35/100, putting Vietnam 107th out of 180 countries in. This increase, although modest, reflects the Government’s renewed efforts to tackle corruption, including a new Law on Access to Information. But this has only translated into limited action on the ground as prevention and enforcement activity remain weak.
The business community and civil society in Vietnam are seeking to promote clean business in Vietnam. For example Towards Transparency, a Vietnamese NGO, works with foreign companies to share best practice on business integrity with Vietnamese partners in the value chain so that they all operate in line with international standards. The Governance and Integrity Working Group (GIWG) of the Vietnam Business Forum (VBF), a platform for high-level dialogue between the Vietnamese government and the business community, also promotes greater business integrity in Vietnam through its work with the UK and other international donors. The British Business Group Vietnam plays an active role in this process. Under the FCO’s Prosperity Fund, the British Embassy is working closely with the Vietnam Chamber of Commerce and Industry (VCCI) and IBLF Global, a UK-based NGO, to develop a Government-Business Integrity Initiative which will provide a platform for business and the government to work together more closely to address corruption in the private sector and promote business integrity.
5. Terrorism Threat
There is a low threat from terrorism, but you should be aware of the global risk of indiscriminate terrorist attacks which could be in public areas, including those frequented by foreigners.
See our Reduce your risk from terrorism while abroad page.
6. Protective Security Advice
Please read the information provided on our Protective Security pages.
7. Intellectual Property
When exporting to Vietnam, it is essential to register your rights there as soon as possible in order to be able to defend and enforce them. IP rights are territorial in nature which means that registrations in the UK or another country’s jurisdiction are not automatically enforceable in others.
Following accession to the World Trade Organisation (WTO) in January 2007 Vietnam has updated its IP laws to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). Vietnam is a signatory to the following:
the Paris Convention – for the protection of industrial property;
the Madrid Protocol – Protocol relating to the Madrid Agreement concerning the International Registration of Marks;
the Rome Convention – for the protection of Performers;
the Patent Cooperation Treaty (PCT) – International Convention for the Protection of New Varieties of Plants;
the Berne Convention – for the protection of Literary and Artistic works.
Under EU – Vietnam FTA, concluded in December, 2015, Vietnam commits to a high level of protection, going beyond the standards of WTO TRIPs agreement. With this agreement, EU innovations, artworks and brands will be better protected against being unlawfully copied, including through stronger enforcement provisions.
Among others, the EU pharmaceutical sector will benefit from improved data protection and of the possibility to get an extension of the patent up to two years if there are delays in the marketing authorisation. In a specific annex on pharmaceutical products, the Parties have agreed to a set of other provisions facilitating trade in these products, which are of great importance in the EU-Vietnam trade (second export item, amounting to about 9% of total EU exports to Vietnam). Vietnam has also taken commitments concerning procurement of pharmaceutical products and has allowed foreign-invested companies to import and sell medicines to distributors and wholesalers within the country.
There are still concerns, however, in particular on enforcement. Some surveys have identified deficient enforcement and coordination between IPR enforcement agencies, lack of trained IPR officials and awareness of consumers and public still as the main weaknesses of the system.
Vietnam is actively trying to address concerns by raising awareness of intellectual property rights and the penalties attached to infringements, through its work with international partners. Mainly enforcement on IPR is done through administrative measures and now Vietnam is putting in place heavier fines and penalties for copyright infringement.
However, concern is rising among rights holders that Vietnam’s IP enforcement system has not yet developed sufficiently to control the rapid growth of piracy and counterfeiting despite the substantial legislative work completed over the past several years. Vietnam is a priority country for the UK and remains in the 3rd category of priority countries for the EU.
IP Top Tips for businesses:
Most IP disputes are handled by administrative authorities instead of courts (although Vietnam is looking to develop and increase IP courts). However the expertise to deal with complex cases is limited. It is important to obtain expert opinions to facilitate the resolution of the case.
Certain objects, such as logos, can be protected as both a copyright and a trademark – this can give an extra avenue to enforce IP rights.
Vietnam works under a first to file system, meaning he first person to file an IP right there will own that right when granted. This means an earlier user may find they are infringing a later filed registration.
Vietnam is part of the ASEAN Patent Examination Co-operation (ASPEC), a regional patent work-sharing programme among 9 participating ASEAN Member States (AMS). The purpose of this programme is to share search and examination results between the participating offices to allow applicants in participating countries to obtain corresponding patents faster and more efficiently. ASPEC is free of charge and operates in English.
Customs registration in Vietnam is relatively simple but can be very effective. As levels of counterfeiting and piracy can be high, it is recommended that businesses register with Vietnamese customs.
Businesses are generally encouraged to learn more about IP issues relevant to their specific industry sector and to consider defensive measures early in their plans to enter the Vietnamese market.
The UK Intellectual Property Office has an IP attaché based in Singapore with specific focus on providing support and advice to UK companies in Vietnam.
Useful information can also be found at:
the Intellectual Property Office – a UK Government agency providing free and impartial advice on protecting and registering your IP in the UK and abroad;
the ASEAN IPR SME Helpdesk, a project funded by DG Enterprise and Industry of the European Commission to provide free information and training for European SMEs in the ASEAN region;
the National Office of Intellectual Property (NOIP);
Of course, there are many other options when it comes to company formation, including other company structures (such as a Joint Stock Company) and activity codes (including ECommerce). Contact Metasource or GBS, the strongly recommended business and legal services firms in for further information on the establishment of a company in Vietnam.
About GBS:
Global Business Service (GBS) Co., Ltd is a leading commercial law firm in Vietnam providing business legal services, investment consulting, and other business support service (company formation, license arrangement, commercial agreements, mergers and acquisitions, shareholder arrangements and disputes, work permit, employment contracts, tax, consulting and financial advisory and executive search services).
FPT and a number of electronics retailers are looking to expand their business by entering the pharmaceutical segment.
At FPT’s annual general shareholders’ meeting this morning, Nguyen Bach Diep, chairman of FPT Retail, announced the plan to increase the Long Chau pharmaceutical chain to 400 units by 2022 with an annual average of 100 drugstore openings.
Diep also said that Long Chau drugstores have higher average monthly sales than other stores in the market. Specifically, the stores generate $136,000 in sales revenue per month, while Pharmacity makes $11,000, Pharno $18,000, and An Khang $32,000.
FPT Group set the 2018 sales target of VND16.020 trillion ($705.7 million), up 22 per cent on-year, with after-tax profit of VND377 billion, up 30 per cent on-year. FPT Retail also registered to list 40 million shares, equivalent to the company’s charter capital of VND400 billion ($17.6 million) at the Ho Chi Minh City Stock Exchange in this year’s early second quarter.
Currently, FPT Group holds 47 per cent of the shares in FPT Retail, Dragon Capital and VinaCapital hold 34.32 per cent, and the rest belongs to other shareholders.
FPT Retail is going for a larger share of the pharmaceutical market
In early 2018, electronics retailer Digiworld mapped out its road to conquer Vietnam’s consumer goods market.
Digiworld JSC plans to boost its presence in the healthcare and consumer goods industries this year. The goal for 2018 is to earn at least VND200 billion ($8.78 million) in gross revenue from these two sectors.
The distributor plans to achieve this target by constantly rolling out new offers throughout 2018. Specifically, in the second quarter, Digiworld will introduce a series of children’s healthcare products that are imported from the US.
In the next quarter, Digiworld will launch other products for liver protection and circulatory system improvement.
In August 2017, the firm made its debut with Kingsmen, which promises to improve the physiological energy of men above 40 years old. Revenue from Kingsmen will be included in Digiworld’s financial reports this year.
Many international and regional brands will enter Viet Nam’s retail and franchise sector in the coming years, according to experts taking part in Viet Nam Retail and Franchise Conference held in HCM City on Wednesday.
“Viet Nam is a growing market for the retail and franchise sector,” said Suttisak Wilanan, deputy managing director of Reed Tradex.
“Viet Nam has all the potential elements, such as a large consumer base, rapidly rising incomes and a generation of educated, young and growing professionals, bringing an optimistic prospective for national and international brands to double its retail and franchising industry in next five years,” he said.
Viet Nam was ranked ninth of the top 12 markets identified by members of the International Franchise Association as the most valuable markets for international expansion. It was also profiled in the Top Markets Report.
Nguyen Phi Van, founder and chairwoman of Retail & Franchise Asia, said Viet Nam has not had a professional franchise market.
Franchising began in Viet Nam in the 1990s with the introduction of well-known fast food chains like KFC, Lotteria, and Jollibee. It began in regional countries like Malaysia, Singapore and Thailand in the 1980s.
The Vietnamese franchise market is still new, and local businesses do not have much understanding of or experience with it, she said.
More Vietnamese businesses are now exploring new business opportunities available via franchising. Nevertheless, there are a number of risks that a franchisor should investigate carefully before engaging or expanding in business in Viet Nam.
On the other hand, Vietnamese franchisees need to be knowledgeable about the franchise business as well as seek consultancy from industry experts to avoid risks.
“In the next five years, there will be a strong evolution when we learn lessons from failure and successes in the past five years,” Van said. “From 2018 and beyond, Viet Nam will continue to be a destination for international brands, especially regional brands. At the same time, local brands have started to develop platforms to promote their brands in the world market.”
Bill Schreiber, vice president of international development at Little Caesars, said: “We are the third largest pizza brand in the world. We are not in Viet Nam right now… So the reason we are here is to create brand awareness and to let people know we are interested in coming to Viet Nam.”
Viet Nam’s pizza consumption is growing by over 7 per cent per year, he said, adding that his company would enter Vietnamese market in one of two ways. “We can either have one franchisee take the whole country or we can have two franchisees in the country’s north and south so we can grow at the same time.”
Tran Anh Minh, expansion manager at Typperware Vietnam, said by participating in the show, the company wants to find distribution agents for its products in the Vietnamese market.
Currently, it has 33 stores nationwide and targets having more than 100 stores by 2020, he said.
Cashless society
The development of technology has changed the landscape of the retail industry, delegates said.
Many brick-and-mortar businesses don’t take cash anymore, and mobile wallets and other convenient digital payment methods are meeting the demand of people everywhere.
Some retailers are taking it to the next level with their own programmes by combining mobile wallets with loyalty programmes, offering shoppers the chance to both pay and earn rewards with one easy tap on their smartphone.
Suttisak Wilanan said: “The ease of conducting financial transactions with cashless payments has opened a new era of shopping and customer experience. People will no longer need to carry wads of cash, plastic cards, or even queue up for ATM withdrawals. It’s also a safer and easier spending option when people are travelling.”
Tran Trong Huy Thong, brand and marketing manager of Miniso Vietnam, said: “The Compound Annual Growth Rate of Viet Nam in 2011-20 is forecast to be among the highest in ASEAN region, reaching 8 per cent, giving a casual fashion department store brand like Miniso many opportunities as well as challenges.
“Young customers in Viet Nam are willing to spend more and want to shop more convenient,” he said.
Organised by Reed Tradex and Retail & Franchise Asia, the conference was organised on the sidelines of the Shop & Store Vietnam 2018” exhibition and conference, which is being held at the Saigon Exhibition and Convention Centre from March 28-20. — VNS
