At 31.4 kilometers long, Paradise Cave is the longest dry cave in Asia.
Source: Vnexpress
Vietnam News

At 31.4 kilometers long, Paradise Cave is the longest dry cave in Asia.
Source: Vnexpress
Creation of a company in Vietnam is slightly different to what an entrepreneur from another country might be used to. While the opportunities for companies based in Vietnam are compelling, the company registration process is more complex and bureaucratic than the USA, Australia and Singapore, for example.
Fortunately, the days of needing 4-5 months to register a company have passed, as has the insistence on local partners. Steady improvements are being made to processing times too. Nonetheless, there is some work to prepare for the formation of a foreign-owned startup in Vietnam. This article provides an overview.
The Company Registration Process in Vietnam
A registered company is key for your startup to enter into contracts, employ staff and collect revenues in Vietnam. A foreign-owned Limited Liability Company (LLC) is the most common company structure for foreign-owned startups in Vietnam.
For this type of company, you’ll go through a two stage process. You’ll need approval from the Department of Planning and Investment (typically in the form of an Investment Registration Certificate, IRC) for your project in Vietnam, and then an Enterprise Registration Certificate (ERC) for the creation of your company. The official timelines are about 45 days for the completion of these stages but preparation is key.
Preparation for Company Registration
Delays are often encountered where the required preparation has not been completed. There are four key considerations:
Vietnam’s accession to the WTO required that the nation opened its economy to foreign investment in a wide range of business lines. The majority of tech startups will target ‘software development’ or ‘consulting’ business lines. Applications for these business lines are relatively straight-forward.
However, some business lines remain restricted to foreigners in Vietnam (for example, real estate and finance). Some of these other fields remain subject to case-by-case review or conditional approvals (eg. trading), caps on foreign ownership (eg. tourism) or require licenses and sub-licenses (eg. F&B).
Vietnam requires you to prove you’re serious about your business. While there isn’t a strict law on what represents the minimum capital, approval from the Department of Planning and Investment will only be issued with proof of sufficient capital for your nominated business line. This capital must be deposited soon after creating the company.
Physical proof of your company’s planned location in Vietnam is key to your application. This can present a chicken-and-egg argument, as you will need to be incorporated before you can sign a lease, and you can’t incorporate until you have a signed lease. An MOU with your intended address may suffice, but there are other practical solutions to this issue.
You will need to nominate the owners of the business and verify their credentials. Note that the supporting documents required for a foreign owner that is a company are different to those documents required if the foreign owner is an individual. You might be tempted to form a Vietnamese-owned company to avoid some of these hassles, but remember that this incurs some risks and will complicate the payment of any dividends to foreigners.
The management structure underneath this may vary depending on how many owners your company will have. You may also need to think about a Controller and Chairman at this stage.
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.
Continue reading “Guide to Set-up a 100% Foreign-Owned Company in Vietnam.”
One victim was a Japanese man who was riding a bicycle earlier this month when his bag was snatched.
Police in the central resort town Hoi An have arrested two men accused of committing a series of robberies in the usually peaceful town.
Duong Chien Thang, 19, and Nguyen Khanh Huy, 18, are the prime suspects behind at least six robberies involving tourists in Hoi An this month, a police report said, as cited by local media on Wednesday.
The two have admitted to several bag snatchings, including one involving a Japanese tourist who was carrying an iPhone and nearly $100 in cash.
Street crime is uncommon in Hoi An, which is known as one of the most peaceful towns in Vietnam.
The once busting trade port now draws tourists to its picturesque wooden houses, pagodas, street-side eateries and hundreds of tailor shops.
A travel forum run by U.S. magazine USA Today described Hoi An two years ago as one of the 10 most beautiful places in Southeast Asia, a place where one can find “tranquility and timelessness.”
The town, where motorbikes and cars are banned from the center, received 3.22 million visitors in 2017, up 22 percent from the previous year, including 1.78 million foreigners.
By Minh Minh, VNExpress
Global reports offer differing views on just how happy the country is.
The International Day of Happiness is celebrated every year on March 20, and was first introduced by the United Nations in 2013.
To mark the occasion, let’s take a look at Vietnam’s levels of happiness in reports compiled by global experts.
In the most recent index published earlier this month, Vietnam ranks 95th out of 156 countries in terms of happiness, according to the World Happiness Report 2018 (WHR), an initiative launched by the United Nations in 2012. This is a slight drop compared to last year when it ranked 94th.
The country also ranks 102nd in terms of changes in happiness, down 0.258 points from 2008-2010.
According to the report, the happiest country in the world is Finland, followed by Norway, Denmark and Iceland.
Vietnam’s WHR ranking this year is lower than in other Asian countries such as Singapore (34th), Malaysia (35th), Thailand (46th) and China (86th), but higher then in neighboring Laos (110th) and Cambodia (120th).
The WHR ranks countries according to six criteria: GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity and perceptions of corruption.
However, Vietnam’s WHR ranking doesn’t match the fifth position it was given on the happiness index of the 41st Annual Global End of the Year Survey (AGEYS) compiled by Gallup International Association, which was announced in January this year.
Not as in-depth as the U.N. report, the AGEYS index simply asks people how happy they feel in general. Seventy-eight percent of Vietnamese people, who are usually described as optimists, answered either “happy” or “very happy” about life, according to data from the polling organization, which is registered in Switzerland.
Another report which contradicts the WHR’s statistics is the U.K.’s 2016 Happiness Planet Index (HPI), which also listed Vietnam as one of the five happiest countries in the world.
The HPI, compiled by a U.K. based think tank, measures the happiness index of 140 countries using four criteria: life expectancy, wellbeing, ecological footprint and inequality.
In terms of methodology, the HPI differs from the WHR in two ways: the wellbeing index (which is gathered by asking individuals of each country how happy they feel) and the ecological footprint index (which measures the impact of people on the environment, the lower the score the better).
The reasons for Vietnam’s high position on the HPI chart are high life expectancy (75.5 years) and low ecological footprint. According to the index, Vietnam’s environment has not yet been overexploited by its people, which greatly influenced the ranking.
The HPI also points out that when Vietnamese were asked about their satisfaction with life on a scale from zero to ten, the average score was only 5.5.
Some might argue there’s no way to judge how happy a certain country is given the myriads of ways happiness can be defined.
Source: VNExpress
Property prices in Vietnam are among the best value in Southeast Asia.
Vietnam has emerged as a favored destination among foreign firms looking to invest in property, with prices standing at among the best value in Southeast Asia.
Last year, Japanese investors Nishi Nippon Railroad and Hankyu Realty hooked up with a local property firm to develop a residential project with total investment of $350 million in Ho Chi Minh City. Half of the funding came from the two Japanese firms, while the rest was put up by their local partner.
Japan’s Mitsubishi Corp. has also diversified its portfolio in Vietnam by buying into a property development project in Hanoi, which has total investment of $1.9 billion.
The company signed a partnership deal with Vietnam’s Bitexco Group after acquiring a 45 percent stake in the first phase of the former’s The Manor Central Park project in Hoang Mai District. Bitexco holds the remaining 55 percent.
This foreign interest has been attributed to high property prices in their home markets, which makes them less attractive to investors, while prices in Vietnam are still low but rising rapidly.
Luxury flat prices in cities like Hanoi have been trending upwards since 2015 but have yet to catch up with other vibrant economic hubs in Southeast Asia, South China Morning Post quoted Kingston Lai, founder and chief executive of the Asia Banker’s Club, as saying.
Luxury flat prices in Hanoi were up 50 percent in the 10 year period to 2016, while mid-market flats were up 80 percent during the same period, Lai quoted figures from real estate firm CBRE as saying.
“Today, quality residences in Hanoi’s city center, on average, are sold at only around HK$1,500 ($191.32) per square foot (100 square feet = 9.3 square meters), half of Bangkok’s level,” Lai said.
“Prices of high-quality housing will catch up with neighboring cities amid the gradual completion of infrastructure such as railways and airport expansion, and as more foreign corporations bring investments to the market,” Lai added.
There are many other factors driving foreign investment in Vietnam’s real estate market including its fast-growing economy, rapid urbanization and expanding middle-class, which is growing at the fastest pace in Southeast Asia, according to HSBC.
The bank projects Vietnam’s middle class will jump from 12 million people in 2012 to 33 million by 2020.
A loosening of restrictions in the country’s regulatory environment has also helped boost sales.
Last year, Vietnam eased restrictions on foreign property ownership to improve market liquidity.
The amended law went into effect in July of last year and allowed foreign investment funds, foreigners with valid visas, international firms with operations in Vietnam and overseas Vietnamese to buy residential properties.
The Vietnam Real Estate Association (VNREA) has forecast a promising outlook for the local real estate market as demand from foreign buyers drives market growth.
The number of foreigners living in the country has reached 320,000, according to the property association.
Investors with business interests in Vietnam are the most likely to buy local properties because they are attracted by potential returns of between seven and eight percent here, according to the VNREA.
Bright prospects
Neil MacGregor, managing director of property firm Savills Vietnam, said Savills expects to see a considerable amount of inbound investment into real estate in 2018, with strong interest from Japan, Korea, Singapore and increasingly China.
He said that existing free trade agreements and the ongoing discussions regarding the Regional Comprehensive Economic Partnership (RCEP), involving China, are all important drivers for continued investment.
“We have seen that trade with countries such as Japan and Korea typically comes together with FDI, importantly fueling investment into infrastructure and real estate,” he added.
Vietnam’s actual foreign direct investment reached an estimated $17 billion in 2017, the highest annual amount ever recorded by the country, according to the Foreign Investment Agency.
South Korea was the country’s biggest investor out of more than 100 countries and territories, with registered capital worth $57.5 billion, followed by Japan and Singapore.
Sharing MacGregor’s opinion, Lai said: “Apple, Samsung and Microsoft have set up major plants near Hanoi, with Samsung contributing 22.7 per cent to the country’s exports in 2016. Their employees are target renters for overseas investors.”
However, it remains challenging for foreign investors to identify quality real estate investments with clear ownership, and transactions involving operating assets will remain scarce, said Neil.
Foreign investors pledged to invest $312.1 million in Vietnam’s real estate sector in the first two months of this year, according to the Foreign Investment Agency.
The sum represented 9.3 percent of pledged foreign direct investment in the country in January and February.
Le Diep Kieu Trang (38) will manage the development of the biggest social network in Vietnam, Facebook.
Trang (or Christy Le) was born in a family of business tradition. Her father, Le Van Tri, is former deputy CEO of leading rubber manufacturer Casumina, while her brother, Le Tri Thong, is now vice chairman of Phu Nhuan Jewelry JSC (PNJ).
After winning a scholarship to study at Oxford University in the UK, she went on to study at the well-known Massachusetts Institute of Technology in the US.
Trang left McKinsey to help her husband establish a startup specialising in keeping track of human health and physical activities called Misfit Wearables, which then got investment from former CEO of Apple and Hong Kong billionaire Li Ka-shing.
After Misfit was acquired by Fossil Group for $260 million in 2015, Trang worked as CEO of Fossil Vietnam until earlier this March.
There is still no date announced for her new job, but the Vietnamese director will be running Facebook’s Vietnam operations from Singapore.
Kenneth Bishop, managing director of Facebook in Southeast Asia, told local media that with her professional experience, Trang will be able to support companies in Vietnam.
Currently, Vietnam has around 64 million Facebook users, accounting for 3 per cent of the global user base. According to the latest survey of Nielsen, 53 million Vietnamese people were online by 2017, which will hit 59 million by 2020. The report also says that people spend over two hours per day on the social media network.
former ceo of fossil vietnam takes charge in facebook
By Minh Huong, VIR
The serious incident of data leak of 50 million Facebook users not only blows away billions of the biggest social network’s market capitalization but also affects tremendously Zuckerberg’s position.
It has come to the point that crisis management goes over the 33-year-old Harvard dropout’s head.
Facebook has received a ton of criticism after letting their partner selling 50 million users’ personal data to a British company, Cambridge Analytica, for use in the election campaign for US Resident Donald Trump in 2016. Recently, Facebook has closed Cambridge Analytica’s account but it seems to be too late.
According to CNBC, tech investor Jason Calacanis thinks Sandberg should step into the CEO role, telling “Closing Bell” on Monday that Zuckerberg has done a horrible job of handling the crisis. Sandberg is described as a “better communicator”, “tremendous leader” and also “better at understanding how to manage these issues.”
However, Facebook CEO Mark Zuckerberg is an “emperor for life” and therefore it will be hard to remove him from office, Yale management expert Jeffrey Sonnenfeld told CNBC on Tuesday.
“He’s surely not going to voluntarily step down,” Sonnenfeld said on “Closing Bell”
“He’s not accountable to anybody,” he added, noting that Zuckerberg controls about 60 percent of the stock.
Sonnenfeld sharply criticized Zuckerberg and COO Sandberg for not publicly solving the accusation.
Facebook did not immediately respond to a request for comment on Sonnefeld’s remarks.
Edit: Daisy Nguyen
Shading my eyes from the bright sun, I stared into the bomb crater amid the verdant rice paddies. While it had been nearly 50 years since the last American planes riddled the countryside near Danang in central Vietnam, craters still pockmark the land. Some of the deep depressions remain dry while others, a testament to the ingenuity of the villagers, serve as watering holes for the oxen that farmers harness to till their fields.
It was my first week in Vietnam, where I would spend the summer of 2016 conducting research. I was studying the efficacy of international law, namely whether legal remedies exist for civilian victims of unexploded ordnance and chemical weapons from the Vietnam War. I had arrived well versed in the numbers: America dropped three times more ordnance over Vietnam, Laos and Cambodia than all sides did during World War II. Estimates are that at least 350,000 tons of live bombs and mines remain in Vietnam, and that it will take 300 years to clear them from the Vietnamese landscape at the current rate.
Unexploded ordnance in Quang Binh Province, in central Vietnam, in 2007. Credit Nguyen Huy Kham/Reuters
Bombs and other ordnance were dropped on thousands of villages and hamlets. The most common were cluster bombs, each of which contained hundreds of baseball-size bomblets; the bombs are designed to explode near ground level, releasing metal fragments to maim and kill. But many of the cluster bombs failed to release their contents or, in other cases, their bomblets failed to detonate.
For the Vietnamese, the war continues. Loss of arms, legs and eyesight are for the more fortunate ones. Others have lost their family breadwinners, or their children. Children find baseball-size metal objects and unwittingly toss the “toys” to one another in games of catch until they explode. Nearly 40,000 Vietnamese have been killed since the end of the war in 1975, and 67,000 maimed, by land mines, cluster bombs and other ordnance.
That’s not the only, or even the worst, legacy of the war that Vietnamese families still face. Seeking to defoliate entire forests to expose enemy forces to spotter planes, the Americans dropped 18 million gallons of chemical herbicide over South Vietnam from 1962 to 1972. There were several defoliants used, but the best known was Agent Orange. In 20,000 spraying missions, planes drenched the countryside and an estimated 3,181 villages.
While entire forests dried up and died typically within weeks of spraying, it would be years before scientists established that one of the active ingredients in the defoliants, a group of compounds called dioxin, is one of the deadliest substances known to humankind. Just 85 grams of dioxin, if evenly distributed, could wipe out a city of eight million people. But illnesses and deaths from Agent Orange exposure were only the initial outcomes. Dioxin affects not only people exposed to it, but also their children, altering DNA. Large numbers of Vietnamese babies continue to be born with grotesque deformities: misshapen heads, bulging tumors, underdeveloped brains and nonfunctioning limbs.
The deadly defoliants also rained down on American troops. Researchers led by Jeanne Stellman of Columbia examined military records of the flight paths of Agent Orange spraying missions. Comparing those flight paths to the position of nearby villages and American ground troops revealed a direct association between exposure and later health problems.
These findings, published in 2003, put an end to the longtime denial by the government that Agent Orange spraying did not harm American troops. The Department of Veterans Affairs now assumes, as a blanket policy, that all of the 2.8 million troops who served in Vietnam were exposed to chemical defoliants, and provides some medical coverage and compensation for that. But the United States has never acknowledged that it also poisoned millions of Vietnamese civilians in the same way.
American combat deployments ended in 1973 and all American personnel were removed from Vietnam by 1975, but the explosive ordnance and dangerous chemicals remained. Polluted soil and waterways were left untouched. Innocent children and families would serve as human guinea pigs to test the long-term results of exposure.
The indiscriminate use of ordnance and chemical weapons against civilian populations is prohibited under international law, dating back to the Hague and Geneva Conventions of the late 19th and early 20th centuries. But for more than a decade, the United States acted in direct contravention of those agreements, which it had pledged to uphold. Since that time, numerous additional international treaties and conventions have come into force that not only prohibit the types of weapons used by the United States in Vietnam, but also require their cleanup after hostilities cease.
The United States, however, has done very little to fulfill such obligations, leaving it largely to the Vietnamese to suffer the results and to clean up what they can nearly 50 years later. Some have suggested that because much of the relevant international law requiring cleanup came into effect after the United States left Vietnam, the country is absolved of such obligations. But this assertion hangs on a thin thread, as the unexploded ordnance and defoliants still injure and kill people today. American responsibility for cleanup is therefore applicable under international law, not something to be dismissed with a historical wink.
My father’s generation served in Vietnam, but the war’s continuing impact is no longer theirs alone to bear. The United States used weapons against civilians contrary to widely accepted international standards, and has skirted its responsibilities to clean up what was left behind. Working to enforce international law, and to assist the Vietnamese in addressing the deadly mess that remains, is a burden now resting on the shoulders of a new generation of Americans.
By Ariel Garfinkel, the author of “Scofflaw: International Law and America’s Deadly Weapons in Vietnam.”
Source: The New York Times
The number of Chinese travelers to the coastal city of Nha Trang has soared in recent months.
Le Van Son, director of Liberty Hotel, said since Chinese travelers began flocking to Nha Trang, the environment has become seriously damaged.
“Beaches, accommodations and entertainment centers are getting sleazy,” he said.
Nguyen Thanh Mang, director of Hieu Quan Trade & Tourism Service, also complained about Chinese travelers’ behavior. “They are noisy. They cause sanitary problems. Some European travelers will refuse to stay in hotels where there are Chinese guests,” he said.
Also according to Mang, most of the tour guides for Chinese travelers’ groups are from China. Meanwhile, under current laws, foreigners are not allowed to practice as tour guides in Vietnam.
Some Vietnamese are hired to work as tour guides for Chinese travelers, but they act just as a ‘screen’ for illegal Chinese tour guide activities. Most of the hired Vietnamese cannot speak Chinese fluently and they have not undergone training.
“Even if Chinese tour guides give false information, the Vietnamese won’t say anything,” he said.
Chair of the Nha Trang Tourism Association Lam Nhu Cuong cited foreign sources as saying that Chinese have surpassed Americans as the travelers with the highest spending when travelling abroad.
It is estimated that each Chinese spends $2,000 on one outbound trip but Chinese travelers to Nha Trang City have a low spending level.
Most of the Chinese travelers to Vietnam book closed tours organized by Chinese tourism firms, or ‘zero dong tours’, as called by Vietnamese.
“Since late 2017, the increase in the number of Chinese travelers has caused hotel room rates at 4-5-star hotels in Nha Trang to drop dramatically,” Son said.
“In the first two months of 2018, the rate dropped by 50 percent,” he added.
Deputy chair of Nha Trang City Tran Son Hai said the number of Chinese travelers to the city has increased sharply recently and will continue to rise in the upcoming years.
Meanwhile, infrastructure conditions have not met the new circumstances.
“As the number of foreign travelers to the city has increased sharply, both the tourism sector and state agencies don’t know what to do.
Preparing the workforce for the tourism industry is a burning issue for Khanh Hoa province,” Hai said, adding that the number of foreign travelers in 2018 may increase by one million and Nha Trang needs to be prepared.
According to the Khanh Hoa provincial Tourism Department, 146,300 Chinese travelers visited Nha Trang in January.
Source: VietNamNet
Repeated warnings have been given in the last two years about the growing tendency of Vietnamese registering businesses in other countries such as Singapore and Thailand, though their production and sale activities are mostly carried out in Vietnam.
There are no official statistics about the number of Vietnamese startups headquartered overseas. Analysts believe the number is very small compared with the number of businesses registered in Vietnam.
According to regional investment funds, most Vietnamese register businesses in Singapore because it is easier to raise funds there. Singapore is a market with transparent information and prestigious brokerage institutions, an ideal place for investors and startups to meet.
Many global companies such as Facebook, Google and Apple have set up branches to oversee the companies’ South East Asian markets.
Hoang Duc Trung, director of DFJ managed by VinaCapital, confirmed that most of the startups the fund has invested in have registered their business in Singapore.
“It is easier to register intellectual property protection in Singapore. It is also easier to approach investment funds in Singapore. And the startups set up in Singapore have higher valuatio
Enterprises in the Mekong Delta lease land and hire farmers in Cambodia to cultivate rice. After harvesting and processing, the rice is carried to Vietnam for sale.
This is not only because the soil and climate in some areas in Cambodia are favorable for rice cultivation, but also because Cambodian farmers strictly follow the cultivation process.
Le Ngoc Thao said she had bought tens of hectares of land in a rural area not far from Bangkok to grow organic dragon fruit and pepper.
“Vietnam-sourced exports these days face many technical barriers, while products with Thailand labels can go for better prices,” Thao said, explaining why she doesn’t continue to farm in Tien Giang province.
The growing tendency of startups going overseas has raised concerns about the lack of qualified businesspeople for coming generations.
A report from the Ministry of Information and Communication (MIC) released in 2016 showed that about 1,000 startups are registered every year in Vietnam. However, only 10 percent of them now exist.
ns than startups in Vietnam,” Trung explained.
Ho Trong Lai from the US-based Waterstone Partners, a consultancy firm, commented that Singapore is a mature market, where startups find it easy to join different business fields.
Singapore has many technology and service startups, but Thailand and Cambodia have more startups in the fields of agriculture and farm produce processing.
Source: VietNamNet
Many in the Vietnamese entrepreneurial community believe the arrival of Amazon, the e-commerce giant, will be a ‘threat’, not an ‘opportunity’.
The hottest topic on the sidelines of the e-commerce forum organized by the Vietnam E-commerce Association days ago was the news about Amazon entering Vietnam.
The participants also talked about the news that Alibaba is implementing an ambitious plan to swallow the South East Asian market through Lazada.“With Alibaba’s and Amazon’s trading floors, Vietnamese companies will have more opportunities to export products,” he explained. “Of course, Vietnam’s e-commerce firms need to follow reasonable business strategies to compete with the giants.”
He said that with trade agreements and export growth, e-commerce will have bigger opportunities for development.
E-commerce has developed in Vietnam for 10 years but many trading floors failed and had to leave the market.
Dang Thuy Ha from Nielsen Vietnam also thinks the presence of the big players will be good news for the e-commerce market, businesses and consumers.
Having more suppliers, a large playing field and the capability to access the global economy, which generates healthy competition, are the biggest benefits for Vietnam.
Meanwhile, Vietnamese consumers will have more choices for products as they have more opportunities to buy foreign-made products.
However, Vietnamese entrepreneurs are not optimistic about their performance.
Kieu Tien Anh, director of 5T International JSC, said it would be ‘very dangerous’ once Alibaba, which is popular throughout China, running vast electronic markets, comes to Vietnam with its advanced technology.
“This is a threat, not an opportunity for us,” he said, adding that there is no Vietnamese company which has technology as good as Alibaba’s.
With Alibaba and Amazon, 60-65 percent of market share will fall into foreigners’ hands. This means that Vietnamese firms will struggle for the remaining 40 percent of market share.
Gijae Seong from Amazon has not revealed the strategy it is following in Vietnam, but only mentioned that Amazon is seeking manufacturers and exporters in Vietnam.
State officials have tried to calm down Vietnamese e-commerce firms amid warnings that Amazon and Alibaba would dislodge them from the home market.
Tran Thanh Hai, deputy director of the Import/Export Agency, said Amazon and Alibaba will not target market segments that Vietnamese firms target.
“I believe the presence of Alibaba and Amazon in Vietnam will only bring benefits: Vietnamese businesses will have advantages to reach the world market,” he said.
Source: VietNamNet
Le Diep Kieu Trang will be taking charge of Facebook’s Vietnam operations from its office in Singapore.
Facebook has named Le Diep Kieu Trang the director of its Vietnam operations.
Trang, 38, will be in charge of the social network’s business development in Vietnam, a Facebook representative told on Tuesday.
Kenneth Bishop, managing director of Facebook in Southeast Asia, said with more than 60 million people using Facebook in Vietnam each month, Facebook is investing in human resources to support the business community and its partners in Vietnam.
With her professional experience, Trang, also known as Christy Le, will be able to support companies in Vietnam, he said.
Trang comes from a family with a long business tradition.
Her father, Le Van Tri, is former deputy CEO of The Southern Rubber Industry Joint Stock Company (Casumina), Vietnam’s leading rubber manufacturer, while her brother, Le Tri Thong, is former deputy CEO of Dong A Bank and is currently deputy chairman of Phu Nhuan Jewelry Joint-Stock Company (PNJ).
Trang won scholarships to study at Oxford University in England and then Massachusetts Institute of Technology (MIT) in the U.S.
She previously worked for global management consulting firm McKinsey in the U.S. before joining her husband to found Misfit Wearables, a startup specializing in keeping track of human health and physical activities that attracted investment from John Sculley, former CEO of Apple, and Hong Kong billionaire Li Ka-shing.
Misfit was acquired by Fossil Group for $260 million in 2015, but Trang continued to work as CEO of Fossil Vietnam until early March this year.
Trang will be running Facebook’s Vietnam operations from the company’s office in Singapore, but it is not yet clear when she will start her new job.
Vietnamese people love social media and half of the population get their news through this channel, a survey of 1,000 Vietnamese people conducted by Pew Research Center found in January.
Vietnam has around 64 million Facebook users, accounting for 3 percent of global Facebookers, according to a report released in July last year by We Are Social, a social media marketing and advertising agency.
More than half of the Vietnamese population of nearly 92 million is online, and people spend more than two hours each day on average on the social media network, said the report.
Source: VnExpress
Along with Carlsberg, the Danish Brewer holding 17.3 per cent stake in Hanoi Beer, Alcohol and Beverage Corporation (Habeco), numerous foreign investors are looking to acquire a stake in Vietnam’s third-largest brewer in order to increase their market shares.
Carlsberg eager to buy Habeco stake
According to the latest movement, Cees’t Hart, chairman cum general director of Carlsberg, has arrived to Hanoi to look for specific plans to increase Carlsberg’s holding in Habeco.
In the framework of the visit, representatives of Carlsberg discussed with the Ministry of Industry and Trade (MoIT), Habeco, and relevant authorities about the state divestment progress.
According to the representative of Carlsberg, despite the parties making progress after numerous discussions, they have yet to reach the final compromise due to legal problems relating to Carlsberg’s priority purchasing rights at Habeco.
Earlier in the third quarter of last year, the representatives of Habeco and Carlsberg signed a strategic co-operation agreement and a purchase contract. According to the contract, when Habeco lists its shares on the stock exchange, Carlsberg can use its priority purchasing rights to buy Habeco’s stake.
However, an expert told VIR that while the contract is legal, its contents do not suit existing regulations. Thus, if the two parties implement some of the clauses in the contract, they will violate regulations.
Due to legal changes since Carlsberg completed the purchase of a 17.3 per cent stake to become the strategic investor and hold the priority purchasing rights, the government asked MoIT, which owns 81.8 per cent in Habeco, to scrutinise Carlsberg’s priority purchasing rights.
Previously, in 2016, Carlsberg proposed the authorities to permit it to buy more of the state’s stakes in Habeco, according to the plan it built. Notably, Carlsberg proposed MoIT to sell 20 per cent of the state’s stake via a competitive bidding.
Carlsberg would make a bid, and if it won, it would use the same price to purchase 61.70 per cent more of the state holding at a later date. However, Carlsberg’s plans have been blocked by regulations.
At present, Cees’t Hart stated that Habeco is a good asset and Carlsberg will offer a competitive price for a stake in the brewer.
Opportunity to change the face of the Vietnamese beer market
Along with Carlsberg, Heineken, and AB Inbev also expressed ambitions to acquire Habeco’s stake to increase their market share in Vietnam.
According to Phan Chi Dung, former head of the Light Industry Department under MoIT, acquiring Habeco’s stake will help these investors to increase their beer market share in Vietnam, which they could not do by buying into Sabeco (for example, the Competition Law does not permit Heineken that has 25 per cent of the market share to buy a stake in Sabeco because the purchase would make competition unfair for the remaining players).
At present, Sabeco is the largest brewer in Vietnam with a market share of 41-43 per cent, while the runners-up are Heineken with 25-27 per cent, Habeco with 16 per cent, and Carlsberg with 10 per cent, respectively.
AB InBev is the largest brewer on the world holding 500 beer brands and one-third of the global beer market. The firm earns $45 billion in annual revenue, 30 per cent of which is profit. M&A deals play an important role in AB InBev’s success as well as its global coverage.
Heineken expressed the ambition to increase its market share via the purchase of Habeco’s stake numerous times. In case it succeeds in acquiring a controlling stake in Habeco, its market share will soar legally.
By: Thanh Huong
Source: VIR
A half of 16 finalists list in the first-ever Fintech Challenge Vietnam (FCV) which was officially revealed at the Asian Development Bank (ADB) – Viet Nam Resident Mission has come from Vietnam.
The Fintech Challenge Vietnam (FCV) is organized by the State Bank of Vietnam (SBV) and the Mekong Business Initiative, the program is funded by the Government of Australia and the ADB.
In addition, the Viet Nam Bankers Association (VNBA) and the Viet Nam Fintech Club (VFC) are co-organizers of the program. Program Partners include seven commercial banks (BIDV, Vietcombank, VietinBank, Shinhan Bank, TP Bank, VIB, VP Bank) as well as FPT, Vietnam Silicon Valley, and VIISA.
The program aims to spur innovation in financial services that promote greater financial inclusion in Viet Nam, focusing on five fintech “verticals” that are critical for financial inclusion, including e-Payments, e-KYC, Peer-to-peer Lending, Open APIs, and Blockchain.
By the application closing date of January 31, 2018, FCV received 141 fintech applications, including 45 from Viet Nam and 97 from 27 countries in five different continents. The program successfully attracted applications in all five “verticals.”
Applications have been systematically evaluated and scored by program organizers, co-organizers and partners. Corporate and investor partners assessed each applicant based on commercial criteria (Innovation and Relevance; Management Capacity; and Scalability & Investment Readiness) while the State Bank of Vietnam, ADB, VNBA evaluated the potential impact on financial inclusion of each fintech solution.
The following 16 FCV Finalists represent the fintech applicants with highest overall scores as agreed by all the evaluators (in alphabetical order):
Additional information about the FCV program and the Finalists can be found at fintech.mekongbiz.org.
Successful FCV applicants will present their business models in the “Showcase Pitch Day” scheduled for 28 March 2018 at the CMC Innovation Center. After this initial Pitch Day, Finalists will be matched with FCV Partners who will serve as their mentors. Finalists will participate in a six-week incubation and mentoring program that will help them to refine and sharpen their business models to fit with local market context.
In a final competitive “Finalists Pitch Session,” all of the FCV Finalists will present their financial technology solutions to a panel of banking industry players, financial experts, and potential fintech investors. Cash prizes will be awarded to the best overall fintech, and to other vertical category winners.
The best solutions will have the opportunity to demo their products and services the day before the 2018 Vietnam National Fintech Day, tentatively scheduled for 28 May 2018.
By Nga Vu, The Leader
Vietnam will attract more foreign capital, improve its transparency and the investment environment when its market is upgraded from frontier to emerging.
Dr. Can Van Luc, Chief Economist of BIDV, said that if Vietnam strives its best with good growth this year, Vietnam’s stock market will be considered to be included in the watchlist of MSCI, one of the world’s largest financial market rating agencies.
According to the regulations, Vietnam will need at least another two years to be considered upgraded.
This means that in the best perspective, Vietnam will be upgraded from the frontier market to the emerging market by MSCI by 2021.
According to Luc, the upgrade of Vietnam stock market brings four major benefits.
The first is to increase the ability to attract capital into the Vietnamese market in the context of many investment funds ready to pour money into emerging markets. This expert estimates that there will be another US$5 billion to US$10 billion invested in Vietnam each year which is a significant amount.
The second is to help increase transparency. As an emerging market, information will be more standardized with the application of international accounting mechanisms.
The third is to promote stronger institutional reforms related to the investment environment as well as the information disclosure.
The fourth is that the upgrading of stock market rank will show the level of development of Vietnam financial market.
However, Vo Tri Thanh, former vice president of the Central Institute for Economic Management (CIEM), Vietnam only has possibility of becoming “emerging markets” successfully of 25 per cent.
Thanh showed that there are three reasons why it is difficult for Vietnam to meet MSCI’s upgrading criteria.
The first is that the disclosure of information must be in English. Thanh said that this factor is very difficult for Vietnamese enterprises, especially for small and medium ones. This difficulty is not only the capacity of Vietnam companies but also its resources and costs.
The second factor is the participation of foreign investors or the degree of openness to foreign investors.
The third is the level of ease of capital transfer. The former vice president of CIEM said that this is the most difficult factor in Vietnam. In 2000, Vietnam set a target in the next ten years, VND became to have convertible currency but until now, the target can be said is not done yet.
Contrary to carefulness of Thanh, “If we try our best as well as when we participate in the international playgrounds like CPTPP, these issues will be solved,” said Can Van Luc.
Can Van Luc highly appreciated the State’s efforts in achieving the market upgrading in the past years such as improving the business environment and the size of the stock market. The signing of the CPTPP is a very positive move for the financial market.
Le Thi Le Hang, CEO of SSI Asset Management Company, said that in the past two years, Vietnam government has changed a lot in the way of equitisation when it is ready to reduce the ownership ratio, improve liquidity as well as fairness.
In 2018, the equitization trend is expected to be further strengthened, Hang said.
Souce: TheLeader