Property market expected to be stable in 2018

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The country’s real estate market in 2018 will maintain mid-term stability, while merger and acquisition in the sector will continue to see strong development.

This was revealed in the Top 10 Reputable Property Developers, Building Material Companies and Contractors 2018, which was announced by Việt Nam Report and online newspaper VietnamNet on Tuesday.

The surveyed top 10 firms said real estate developers would enjoy opportunities of high economic growth rate, newly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement to attract more foreign investment and approval for establishment of special administrative economic zones.

However, the survey also said local property developers would face challenges of macro-economic instability in the region, State divestment making capital dispute more severe and virtual money affecting the market and condotel, officetel and hometel segments with potential risks due to lack of clear management policies.

The firms said special administrative economic zones would continue to be promising lands to lure large real estate projects.

The estate, construction and building material sectors will be linked to the Fourth Industrial Revolution.

The survey revealed that in addition to traditional marketing methods, customers were increasingly getting access to property information through internet.

More than half the surveyed people said they sought information on websites specialising in real estate and on social networks.

When the requirements of home buyers become stricter, information in the market will become more transparent. Investors and contractors will pay attention to the sustainability and life span of projects and construction buildings.

According to experts, the quality of estates in 2017 improved due to the pressure of competition. They said property developers were required to improve their ability while enhancing professionalism and quality in projects.

Last year, the real estate market saw positive changes in all segments. In Hà Nội and HCM City alone, there were 64,263 successful deals. A range of new products, such as condotel, officetel and hometel were developed, making the real estate market more attractive.

According to the report, prestige was one of the top three reasons for customers in choosing a product in the real estate sector.

Vingroup and Novaland top the list of the 10 most reputable property developers in 2018.Vingroup has been leading the market with diversified products such as apartment buildings, offices, resorts, shophouses, condotel and officetel.

Novaland, on the other hand, has been a popular brand in the south, with strong financial abilities and large land funds.

Coteccons Construction Joint Stock Company and Hòa Bình Corporation occupy the first and second positions in the list of top 10 reputable contractors in 2018.

Hòa Phát Steel Joint Stock Company and Viglacera Corporation Joint Stock Company top the list of the 10 most reputable building material companies in 2018. Both are large-scale companies in the building material sector with hundreds of construction projects every year throughout the country.

The award ceremony will be organised on April 18 at the Việt Nam National Convention Centre in Hà Nội.

 

 

Source: VNS

Foreign banks’ withdrawal no cause for concern: experts

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The trend of foreign financial institutions withdrawing capital from their Vietnamese joint ventures has raised questions about the country’s state of financial stability, but experts claim the situation is no cause for alarm.

Since early to mid 2017, well known international institutions such as France’s BNP Paribas, Hong Kong’s HSBC and Australia’s Commonwealth Bank have attracted media attention as they took turns withdrawing money from their Vietnamese partners.

The trend continued with ANZ’s sale of their retail sector in Việt Nam to Shinhan Bank’s Vietnamese branch in December 2017. US Standard Chartered Bank sold its entire 8.75 per cent stake in a joint venture with Asia Commercial Bank (ACB) in January 2018.

The main reason for a number of international banks’ narrowed operations in Việt Nam, according to some experts, is an inevitable change in their business strategy. These banks consider maintaining previous investments less profitable than withdrawing capital from their Vietnamese partners and investing elsewhere.

Banking expert Nguyễn Trí Hiếu drew a contrast between Western banks and Asian banks. He explained that Asian investors are quite knowledgeable about Việt Nam’s market and business culture with their own native clients working here, much more so than their Western counterparts.

Hiếu told the Vietnam News Agency (VNA) that in recent years, many Asian investors from Japan, South Korea, Malaysia and Singapore have entered Việt Nam, while investors from European countries are becoming more cautious, with some banks withdrawing capital from the country.

Talking to the VNA, financial expert Bùi Quang Tín said that a divergence in business strategies is unavoidable when domestic and foreign capital investors work together for a significant length of time.

Tín shared his positive view that in the near future, foreign investors will be able to invest more in local banks, namely Vietcombank, VietinBank or BIDV, once these institutions opt for a more open cooperation policy, especially with Agribank’s imminent equitisation.

He further argued that private commercial banks should expect profit in the following years to rise, while the bad debt ratio is expected to decrease thanks to the National Assembly’s Decree 42 on handling bad credit institutions.

In the same vein, the National Financial Supervisory Commission quoted financial and banking expert Can Van Luc that the national banking system is better than it was a few years ago.

Luc opposed the suggestion that a high level of non-performing loans, lack of risk management and corporate governance have reduced Vietnamese banks’ attractiveness.

“I do not think that the country’s business market is deteriorating, nor is it the reason behind decreasing banks’ profit, as some have commented,” said Lực.

On the contrary, positive factors such as sharply increasing banking stocks, average annual growth rate of 15 to 16 per cent in the financial sector and a more open legal corridor mean Việt Nam should be seen as a potential investment destination, he added.

Here to stay

In order to attract and retain investment from foreign banks, the domestic banking system would need to be more flexible, professional and comprehensively re-structured, said Hiếu.

“The national banking system has begun restructuring in recent years, but still not all the way. Only when domestic banks are able to deal with bad debts, replenish their own capital to become healthier, more stable and more attractive, can foreign investors start pouring money in,” he explained.

And yet, ANZ Vietnam’s representative told the VNA that they will not be out of Việt Nam completely, acknowledging a long and successful operation history in the country.

According to ANZ, the transfer of their retail banking business to Shinhan Bank is part of a strategy to simplify the bank and increase its capital efficiency.

This would hopefully allow ANZ to focus its resources on Asia’s largest business segment – corporate clients and financial institutions – as ANZ is one of the four leading banks in trade support and capital in the region.

ANZ’s representative further said that the bank was committed to continuing its presence in Việt Nam, to support regional and national financial institutions and businesses.

The bank was optimistic about business opportunities in Việt Nam, thanks to the stable government, favourable population model, trade integration and foreign direct investment, as well as the rise of a new middle class.

 

 

Source: VNS

Cornell to collaborate with Vingroup to establish VinUniversity in Hanoi, Vietnam

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Cornell University announced plans March 13 to collaborate with Vingroup, Vietnam’s largest property developer, in establishing a world-class teaching and research institution, VinUniversity.

The campus for this private, nonprofit university will break ground this year, at a ceremony in the Gia Lam urban area of Hanoi, Vietnam.

Cornell is involved in a multiyear consulting services contract that includes advising on the development of infrastructure, campus reviews, curriculum and faculty hiring. Project experts intend for VinUniversity to meet the QS 5-star rating standards, the highest audit rank available from the British education company Quacquarelli Symonds. The university will include schools of business, hospitality and real estate; engineering and technology; general education; public health and health services; nursing; and medicine.

Cornell SC Johnson College of Business will carry out much of the advising.

“Cornell SC Johnson College of Business is pleased to collaborate with Vingroup and provide extensive consultation in a variety of areas, drawing from a wealth of expertise at multiple colleges and units at Cornell,” said Rohit Verma, dean of external relations for SC Johnson College of Business. “We’re looking forward to working with Vingroup in the creation of a new university to benefit the citizens of Vietnam.”

Cornell SC Johnson will provide faculty resources as needed from across Cornell, particularly those related to business and engineering. In addition, it will provide support to Vingroup in the areas of administration, curriculum development and faculty recruitment, critical for the formation of the new university.

“Our goal is to offer quality higher education in Vietnam by establishing a top university, both excellent in teaching and research, which will contribute positively to the economy of Vietnam,” said Le Mai Lan, vice chairwoman of Vingroup. “We envision VinUni as a place where students can advance their skills in the areas of business, technology and health science, and we hope that our graduates will help Vietnam become a stronger competitor in Southeast Asia and on the global stage.”

Enrolled students will take a mix of business, technology and health policy courses, including core courses required for each of the degrees. VinUniversity will begin recruiting faculty in spring 2018. By 2020, administrators hope to enroll as many as 300 students in the university’s inaugural class.

Source: Cornell

Property sales in Industry 4.0 era

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Applying advanced technology is not only helping real estate buyers and sellers to manage information and transactions in an easy and efficient manner, but also enhancing the sellers’ ability to connect and advertise their products. However, this is just the beginning of a long journey.

Tech on every step of the way

Trying to sell a property of some 40 square metres in Vinh Hung, Hanoi, a seller named Hoang often visits Facebook and other online property trading platforms to check out the prices of properties of the same size. His online activities have in fact been collected by software developers and he is considered a target for pop-up ads and email marketing. Hoang has been seeing the ads of properties that he once browsed through or those in similar price and size ranges in the neighbouring areas that are of concern to him.

Most people like Hoang are rather surprised about these new types of marketing and advertising. They do not even know how these ad companies or real estate agencies get their phone numbers. It turns out that this is just a new trend of accessing potential customers among property developers and distributors—the beginning of Industry 4.0 in the property sector.

Given the development of the Internet of Things (IoT) and artificial intelligence (AI), software programmers and Internet providers can collect data from users to form a big data warehouse, scrutinising the trends of Internet usage, online shopping, and products of interest.

In a bid to reach target customers in a rather competitive market, mortgage brokers that are sensitive enough have launched their marketing campaigns on social media platforms, such as Facebook or Zalo, or through professional online advertising channels like Google AdSense. Many mortgage brokers even purchase customer data, which may include not only the customers’ contacts but also their relationships, habits, and demands.

Nguyen Quoc Anh, deputy general director of Dai Viet Group, the operator of online property trading platform batdongsan.com.vn, noted that with the development of technology, the online trading of properties has gained popularity due to its convenience and cost savings.

Property Technology, or PropTech, is the new generation of technology that helps transform the housing market through three main arms, comprising property information, property transaction, and property management. Through PropTech, developers will be able to manage their property trading and transactions completely online, targeting the tech-savvy younger generation.

In the past two years alone, data from batdongsan.com.vn shows that some 52 per cent of homebuyers were in the 25-34 age bracket. This age group grew up with technology, social media, and integrated economies. They are highly adaptable and always willing to share facilities with one another.

As a result, they are very fond of PropTech that helps them check information, compare the prices and products, calculate loans, and find financial solutions that fit them best. What is more, it reduces the risks of buying and selling houses, particularly when making the purchase through an agency. Procedures for housing transactions are also carried out online to save time.

Professionalism needed

According to Pham Thanh Hung, vice president of CEN Group, the opportunity to tap into the real estate market through disruptive technologies is huge, yet many PropTech startups have ended in failure. A reason for this is that they are often followers and thus cannot make predictions. That being said, if they had started off with a PropTech app back during 2013-2014, right before the housing market begun to warm up, they would have been far more successful.

Yet there have been a number of startups that develop property-related technologies. With large-scale marketing campaigns and customer networks, they have been reasonably successful. However, there were difficulties along the way.

User behaviour is one of them when many Internet or smartphone users are still new or rather unfamiliar with the PropTech apps or the application of disruptive technologies in real estate. Mortgage brokers, at the same time, do not fully understand the apps themselves and so cannot apply the advanced technology in their property sales.

In addition, technology cannot replace the human factor, in this case, the professional mortgage brokers. Should mortgage apps be developed and welcomed by users, real estate agents may no longer find work, as sellers and buyers could contact each other through the apps. But a property buyer still needs a professional service provider to advise him on a purchase and whether the prices are reasonable. Especially, the related legal procedures require professional assistance.

Last but not least, in property dealings, creditability is the most important thing. If an app fails to build trust amongst mortgage brokers, buyers, and sellers, it is destined to fail. This has in fact happened to some e-commerce businesses that forged information and at the end lost customers’ trust.

According to Hung, the application of technology is an indispensable trend in online property trading. While it cannot completely replace human agents, it is a new breeze of change promising to revolutionise the real estate sector to usher in the era of Industry 4.0.

Adopting disruptive technologies is the new real estate trend, and it is a costly game to play as tech changes are unpredictable. The more startups or businesses join the race of advanced technology, the fiercer the competition will be, helping drive it towards professionalism. The ultimate beneficiaries will be homebuyers.

 

 

Source: Viet Duong

Barack Obama’s $6 dinner table preserved for posterity in Vietnam

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A table where former US President Barack Obama ate with chef Anthony Bourdain on an official trip to Vietnam two years ago has gone on display.

The table, complete with dinner set and empty beer bottles, has been encased in glass.

The owners of the Hanoi street food restaurant where the two men ate for $6 (£4) on plastic stools say the idea came from their customers.
They wanted to see where Mr Obama had sat and what he had eaten.

Photo: Facebook Dam Ha Phu

“The customers love it, many take photos next to the table,” Nguyen Thi Hang Nga, co-owner of the Bun Cha Huong Lien restaurant, told the BBC.

“For us, it is a nice memory that we will cherish forever. It is not a PR gimmick, I don’t think we get more clientele.

“The display was set up just before the Lunar New Year [in mid-February] and I haven’t noticed any change in the flow of diners.
“Of course, the bowls and plates on display have been washed, as well as the empty beer bottles!”

The honour is normally reserved for the country’s top leaders such as Ho Chi Minh who had their meals kept this way for posterity.
It is thought to be the first time a foreign dignitary has been remembered in this way.

Bourdain says he is not sure what to make of it.

The original photo of the 2016 meal which the chef shared on Instagram drew more than 120,000 likes and thousands of comments.

Source: BBC

Uber agrees to sell most of its Southeast Asia business to rival Grab

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Uber would take about 30% stake in Grab; deal not sealed yet.

Uber Technologies Inc. has reached an agreement in principle to sell most of its Southeast Asia operations to local rival Grab Inc., ending a costly fight for market share in the fast-growing region, according to people familiar with the matter.

In exchange for its operations in Southeast Asia, Uber would gain a roughly 30% stake in Grab, these people said. The two companies are still hashing out the final terms of the pact, the people said, cautioning any deal would be subject to regulatory scrutiny. One of the people said Uber’s stake in Grab could wind up being smaller.

Uber was spending some $200 million annually to take on Grab and another upstart in the region, PT Go-Jek Indonesia, two of the people said. Go-Jek, a motorcycle-taxi service based in Indonesia, recently raised more than $1 billion in funding from KKR & Co. and Tencent Holdings Ltd., among others.

A deal could relieve pressure on Uber’s new chief executive, Dara Khosrowshahi, who is trying to shore up the company’s finances ahead of an expected 2019 initial public offering. Uber posted a net loss of $4.46 billion in 2017 on sales of $7.36 billion.

 

 

Source: The Wall Street Journal

Local cosmetics sector needs preferential policies

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Vietnam needs more preferential policies to attract investors to the local cosmetics sector, economic experts have recommended.  

According to the Vietnam Association of Essential Oils, Aromatherapy and Cosmetics, import and export turnover of cosmetics products surged from $3 billion in 2016 to $6 billion in 2017.

Due to the various materials that Vietnam can offer to produce cosmetics, the country has become a potential hub for foreign manufacturers.

In addition to offering incentives to foreign cosmetics firms, Vietnam should come up with measures to encourage the growth of local beauty products, experts recommend. (Photo sggp.org.vn)

Material advantages

Claudia Bonfiglioli, CEO of Information Beauty, said that sales generated from worldwide organic beauty products were $480 million last year, up 10 per cent year-on-year.

The organic cosmetics sector is expected to double in value this year, she said, adding that this has encouraged multiple cosmetics manufactures to switch to organic products.

Vietnam is among a number of countries able to offer organic materials with high-added value such as coconut, mu trom (sterculia foetida), turmeric and aloe vera at affordable prices.

In addition to its powerful labour force, Vietnam has a large market ready to buy organic beauty products.

Of nearly 100 million people, 60 per cent of the population is under 35 years old, according to the Nielsen Company.

Vietnam’s average per capita income has risen to VND53.5 million ($2,431) per year in recent years, the company said.

Bart Verheyen, director of Medicare’s commercial affairs, said that within six years, Medicare had opened 65 stores in Việt Nam with a focus on beauty and health products. Medicare plans to double its number of stores in the years to come.

While organic beauty products are expected to be on-trend, imported cosmetics will be preferred to local ones, he added.

Local beauty products

Local beauty companies are encountering many challenges, given the significant growth of the imported beauty sector and expansion of cosmetics distribution systems by foreign firms.

According to director of the Vietnam Association of Essential Oils, Aromatherapy and Cosmetics, Nguyen Van Minh, of the $6 billion of total export/import turnover in the cosmetics sector, only 5 per cent is generated from sales of local beauty products.

Though turmeric, aloe vera and other materials are considered precious, domestic firms have sold them in raw form only and neglected extraction of their essence for production of higher-end products.

Thorakao and Miss Sai Gon are among a few local brands that still have a share in the market, although it is modest.

Limited capital investment presents another challenge for domestic companies to expand their scale of production and incorporate modern technologies in their production chains.

This challenge, however, cannot be overcome in the short term, Minh said.

The association has sought approval from authorities to establish a research centre that maximizes the use of existing materials and assists in effective manufacture of local cosmetics products.

However, the proposal has not received any feedback.

On a different note, the local authority’s failure to effectively monitor operations of unlicensed firms and seize their counterfeit cosmetics has greatly affected consumers’ trust in local products.

Future growth

According to economic experts, Vietnam should come up with measures to not only attract investment from foreign cosmetics firms but encourage growth of local beauty products.

New local beauty products should be introduced, while the establishment of a research centre should be considered to bring the best out of the abundant raw materials for cosmetics production in the country, they said.

Cosmetics firms should also keep up with new trends in organic products to efficiently produce and distribute products widely embraced by consumers.

 

 

Source: VNA

Lotte Card wholly acquires Techcom Finance

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After receiving the approval from the Vietnamese government, Lotte Card yesterday signed a purchase contract to acquire 100 per cent of Techcom Finance from Techcombank to become the first South Korean credit card company to enter the Vietnamese finance market, according to newswire Vneconomy.

The deal’s value has yet to be disclosed, however, previously, South Korean newswire The Investor estimated that the deal could be valued at VND1.7 trillion ($74.67 million).

Lotte Card’s purchase is considered a move to break into the $26.55-billion consumer finance market, which has been showing signs of rapid development.

Previously, in September 2017, the two parties signed a stock purchase agreement for the deal.

Techcom Finance, formerly known as Vietnam Chemical Finance Joint Stock Company before the 2015 acquisition by Techcombank, carries a charter capital of VND600 billion ($26.5 million).

According to the bank’s report, in 2017, Techcom Finance earned VND28.7 billion ($1.26 million) in revenue and VND22.5 billion ($998,538) in pre-tax profit.

Lotte Card was established in 2002 and offers credit cards, facility leasing, and financial services. The company, through its subsidiaries, also opens travel agency, insurance agency, and telemarketing services.

Entering Vietnam, Lotte Card will join a vibrant consumer finance market with an annual growth of 30-40 per cent, while the credit card rate is still very low.

StoxPlus reports that the Vietnamese consumer finance market is the most attractive in the region, with high growth potential and profit margins.

At present, the sector is dominated by FE Credit (VPBank), Home Credit, and HDSaison.

In 2016, Home Credit earned VND1.23 trillion ($54.03 million) in profit, FE Credit VND2 trillion ($87.8 million), and the two remaining companies (Home Credit and HDSaigon) earned hundreds of billions of dongs in profit.

Along with Lotte Card, numerous domestic and foreign investors are actively seeking to enter the consumer finance market through M&A deals.

According to the latest movement, in January this year, Shinhan Financial Group announced that subsidiary Shinhan Card completed the acquisition of Prudential Vietnam Finance Company Ltd.

In addition, two other Japanese investors are also negotiating to purchase 49 per cent of the stakes in two different Vietnamese financial institutions.

Military Bank has launched its consumer lending brand Mcredit with the support of its Japanese counterpart Shinsei Bank. At the end of last year, Shinsei Bank purchased a 49-per-cent stake in Mcredit, the consumer finance arm of Military Bank. Afterwards, MCredit was renamed MB Shinsei Consumer Finance Limited Liability Company.

 

 

Source: Ha Vy

​US dollar losing charm as investment haven in Vietnam

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Short-term trading in U.S. dollars has increasingly become less lucrative in Vietnam as the VND-USD exchange rate has been kept stable by the State Bank of Vietnam, which also maintains a zero interest rate for savings in the greenback.

Many Vietnamese would stockpile U.S. dollars for savings instead of the local currency, hoping to rake in profits, albeit insignificant, from short-term price fluctuations.

However, this method has become less remunerative in the last few years, when the State Bank of Vietnam, the country’s central bank, began to boost its effort to de-dollarize the economy through different administrative measures.

“Dollar prices at local banks only rose 1.1 percent to VND22,790 from VND22,540 over the last year, meaning it is not really profitable to hold this currency as an investment,” Loan, a Ho Chi Minh City resident, told Tuoi Tre (Youth) newspaper.

Loan and her husband have some VND400 million ($17,640) to spare after the Lunar New Year that ended last month, and were told to invest in foreign currency as the sum was not enough to be channeled into real-estate.

However, Loan said she has carefully studied the forex market and decided that “it would be better if we put the money in [VND] savings or stocks.”

A woman counts Vietnamese dong at a bank in Ho Chi Minh City. Photo: Tuoi Tre

Like Loan, many Vietnamese have changed their mindset, after realizing that they could no longer reap easy money from trading the greenback short-term.

Huong, another Ho Chi Minh City resident, used to be a short-term trader of the dollar, one who stockpiled the foreign currency only to immediately sell it once its price increased.

“I was able to make a few million dong every several days then but this has no longer been the case in recent years,” she said.

The VND-USD exchange rate is expected to remain stable even when the U.S. Federal Reserve is projected to hike its benchmark interest rate three times this year.

“Last year, there were three FED interest rate increases but the foreign exchange rate remained almost unchanged, so I don’t think the situation will be different this year,” Loan said.

VND500,000 banknotes are seen on a counting machine at a bank in Ho Chi Minh City. Photo: Tuoi Tre

Forex rate to remain stable in 2018

From a regulatory viewpoint, Truong Van Phuoc, acting chairman of the National Committee for Financial Supervision, explained that all the FED interest rate increases were carefully planned and announced beforehand, so any impact they may leave on the international financial market is quite predictable.

Theoretically speaking, a higher interest rate would drive global investment back into the U.S., thus strengthening the dollar.

“However, the reality is that some $30 billion worth of investment has since been poured into emerging markets, including Vietnam, and the dollar was actually weakened by an average of nine percent compared to other strong currencies,” Phuoc told Tuoi Tre.

The policies meant to protect the U.S. against a trade deficit under the administration of President Donald Trump could explain this unexpected development, Phuoc added.

A woman counts U.S dollars at a bank in Ho Chi Minh City. Photo: Tuoi Tre

The official went on to underline that any changes to the FED interest rates in 2018 will also have insignificant effects on the foreign exchange and foreign currency market in Vietnam.

The dollar is expected to lose five percent of its strength following the FED rate hikes this year, compared to the nine percent depreciation in 2017, which “only lends credence to predictions that it will leave diminutive impacts on Vietnam.”

The positive outlook is also backed by such factors as Vietnam’s record $60 billion in foreign reserves, and a $1.1 billion trade surplus in the first two months of this year, according to the official.

“These all lay solid ground for [the central bank] to stabilize the foreign exchange rate,” he concluded.

 

 

Source: Tuoitrenews

VISA: Vietnamese people expected to travel and spend more

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Vietnamese travellers take the most shorts trips in the world, and the trend is expected to be on the rise with more local travel outside of Asia and spend more on their trips, according to Visa Global Travel Intentions (GTI) Survey.

Visa (NYSE: V) has announced a worldwide, comprehensive look at travel and tourism in 2018. The Visa Global Travel Intentions (GTI) Study findings highlight various parts of the travellers’ journey, surveying respondents from Vietnam as well as around the world.

The study found travellers around the world over are taking shorter and more frequent trips, motivated by the need to bond with family and loved ones—yet worries about the loss/theft of cash at their destination remain. Vietnamese travellers, in particular, are found to take the most shorts trips with 74 per cent of those being in four nights or less.

According to Sean Preston, Visa country manager for Vietnam, Cambodia, and Laos, as the Vietnamese economy grows and an increasing number of citizens join the ranks of the global middle and upper classes, more people are going to take an interest in traveling the world.

“This is reflected in the results of our survey, with people taking more trips and spending more, while technology is giving travellers the ability to take trip planning and booking into their own hands. We have also seen really positive developments in card usage, with Vietnamese travellers relying heavily on their credit and debit cards for booking hotels, flights, and activities before embarking on their trips,” said Preston.

As the desire to travel continues to grow, the GTI Study, a comprehensive study of travellers from 27 countries, found motivations to travel have blurred, with consumers citing a combination of “achievement” and “reward” as a key motivator.

Among the top 5 motivations, reward-based motivations include bonding with family and friends and to unplug, while achievement-based motivations include experiencing new cultures and visiting exotic destinations. Six in ten travellers globally (63 per cent) describe themselves as wanting a combination of both throughout their travels, while seven in ten Vietnamese travellers (72 per cent) fall into this category.

The study also showed a range of positive trends amongst Vietnamese travellers. Some of the key findings from the Vietnam report include trips getting shorter while more trips are on an international basis, and travelers intend to pay more on their trips with frequent use of their bank and credit cards.

Accordingly, the average time spent abroad during the last trips is found to be four nights for Vietnamese travelers, much lower than the APAC average of seven nights. And on average, the local travelers are expected to take nearly five trips abroad in the next twp years or so, up from 3.5 trips overseas found in the past two years.

Most visited countries among the local vacationers, meanwhile, include Thailand, South Korea, Japan and Singapore, with the US emerging in the top five destinations.

Vietnamese expected to travel more beyond Asia and spend more

On their next trip, the travelers expect to spend a median amount of $1,100 per trip—up from a median amount of $880 on their last trip. With more cards to be used during their trips, 74 per cent of travellers employ credit or debit cards while booking their trips, and while at their destination, many do use cards, but the majority of travellers prefer to carry cash in foreign currency.

 

 

Source: Trang Nguyen

Hoi An emerges as destination for health tourism in Vietnam

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For over a decade, tourists from different corners of the world have come to the tranquil town of Hoi An in central Vietnam seeking health improvement through a special tour aimed at healing their illnesses from the inside.

This year, nearly 400 people from 25 countries are staying in Hoi An from March 10 to 14 to take part in a program known as “Vietnam Retreat,” during which all activities are oriented toward improving participants’ well-being.

The tour is an initiative taken by Serge Benhayon, an Australian who founded Universal Medicine to provide health services that are “universal in their approach toward medicine and healing.”

According to Benhayon, all of his tour participants are either ill or having early signs of developing an illness, and the purpose of his tour is to help them feel better through mental therapy.

He believes patients with a wide range of illnesses, including diabetes, spinal degeneration, psychological disorders or even cancer, can benefit from a lifestyle free from stress and full of optimism.

Benhayon said he had come to Vietnam 11 years ago in search of a location with the perfect nature and people for the purpose of his tour.

He visited Ho Chi Minh City, Hanoi, Hue, Ha Long among other popular destinations, but it was Hoi An with which the Australian fell in love at first sight.

Since then, “Vietnam retreat” has been an annual program among a range of health services that Universal Medicine offers to its clients.

A fat-free diet

Huy Nguyen, owner of the Tropical Beach Hoi An resort where 400 participants on Benhayon’s tour are staying, said the group had very specific requests about their dining options.

“They ask for a diet mainly composed of vegetables and fruits, which always make up around 80 percent of the dining table,” Huy said.

“The meat that they have – such as shrimp, fish and other seafood – is either boiled or grilled with absolutely no fat used in cooking,” he added.

According to the resort owner, participants also refrain from cigarettes, alcoholic drinks and any form of stimulants, and restrict themselves strictly to drinking only water.

Eunice Minford, a 52-year-old surgical doctor who has psychological problems that have taken a toll on his professional performance, said his condition has improved greatly since he started taking part in the tour ten years ago.

Now Minford says he works happily every day looking forward to the days he will be spending in Hoi An.

 

 

Source: Tuoitrenews

Warburg Pincus to invest $370 million in Vietnam’s Techcombank

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It is the largest ever private equity investment to date in Vietnam.

Warburg Pincus said it had agreed to invest more than $370 million in Vietnam Technological and Commercial Joint Stock Bank (Techcombank), in what it said was the largest ever private equity investment to date in the Southeast Asian nation.

Share listings and equity offerings are booming in Vietnam as the country speeds up its privatization drive, supported by a strong stock market. Vietnam’s main stock index rose nearly 50 percent last year, making it Asia’s strongest performer.

“The Vietnamese banking sector is highly under penetrated with strong potential for outsized growth,” Saurabh Agarwal, a managing director at Warburg Pincus, said in a statement.

Techcombank, a 25-year-old privately held bank, says it is one of the largest private sector joint stock commercial banks in Vietnam by total operating income and profit before tax.

“The Vietnamese economy and the banking sector are experiencing tremendous growth right now,” said Ho Hung Anh, Techcombank’s chairman.

Warburg said it is investing in Techcombank through two separate legal entities managed by the private equity firm. The investment is subject to regulatory approvals. It said the deal brings its total commitment in the country to more than $1 billion.

Source: Reuters

Hanoi named among 13 best places to visit in March

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Vietnam’s capital has plenty to offer globetrotters as spring arrives.

As winter’s cold grip loosens on Hanoi, the city has been named one of the ideal travel destinations for March by American-based Business Insider.

The list is compiled based on analysis of flight tickets, weather and popular travel periods.

Hanoi in March enjoys a mild climate with average temperatures ranging from 17-24 degrees Celsius, with the cold winds long gone and the sun starting to shine.

The capital is also quieter following the frenetic Lunar New Year holiday, a major travel season which often ends in February.

Since March is by nature a “shoulder season” when tourism neither peaks nor troughs, travelers can enjoy cost-effective journeys, Business Insider says.

The news website advises wandering around the Old Quarter in the city center, an area it describes as “energetic and mazelike.”

The area has long been renowned among international tourists for its array of hawkers surrounded by seas of motorbikes and roadside eateries.

Meanwhile, Hoan Kiem Lake, admired in legend for being home to a Golden Turtle God which surfaced and asked a 15-century Vietnamese king to return the magic sword his master had given him to defend against invaders, has earned itself a reputation as a calm retreat just a few dozen meters away.

Those into spiritual visits can also tour pagodas and temples, including Tran Quoc Pagoda, the oldest in the city, and Ngoc Son Temple, which can be found over a bridge on Hoan Kiem Lake.

A crucial convenience is Hanoi’s significance as a transport hub in northern Vietnam.

From the capital, travelers need only a 3.5 hour drive to reach UNESCO Heritage Ha Long Bay, where thousands of limestone karsts and isles cater for dream cruise trips and kayaking.

Famous for its rice terraces, tranquil town, ethnic minority groups and Vietnam’s highest peak Mount Fansipan, Sa Pa is also only 6 hours away to the northwest.

Business Insider’s list of spring destinations also includes Amsterdam, Cairo, Palm Springs, Tasmania and, notably, Antarctica, among others.

But it’s not just the weather or the various attractions that draw visitors to Hanoi.

Last year, Time ranked Hanoi at No.1 on its list of Best International Destinations in terms of value for money.

“Hotel prices have gone down 21% year over year, from $80 to $66 a night,” according to Trip.com. “And with cheap meals around $2 and mid-range dinners costing $18 for two, it’s almost difficult to spend more than $25 a day on food,” the American magazine explained.

In early 2017, Britain’s Daily Telegraph listed Hanoi as one of the top 10 cities for street food.

The newspaper advised heading to the Old Quarter for a bowl of “savory” Pho “if there is one dish you must try.”

TripAdvisor, the world’s popular travel guide and review website, also named Vietnam’s capital in the top 10 destinations for 2017, as voted for by its users.

The website praised Hanoi for its “charming Old Quarter,” beside “breathtaking temples and bustling streets filled with markets, art, and mouthwatering food.”

Source: VnExpress

Vietnam’s state-run MobiFone backtracks from private pay TV investment deal

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Alleged violations in the acquisition of AVG have forced both firms to cut their losses as an investigation looms.

Vietnam’s third largest telco MobiFone Telecommunications Corporation and private pay TV operator Audio Visual Global JSC, better known as AVG, have decided that the state-run telco should withdraw its entire investment from AVG.

The move comes after Vietnam’s Communist Party instructed the government to look into MobiFone’s acquisition of AVG following reports of violations by inspectors last Friday.

In early 2016, MobiFone captured public attention by announcing it was breaking into the pay TV market through the acquisition of a 95 percent stake in AVG, without revealing any information about the deal.

The two sides agreed on Monday to scrap the acquisition contract, meaning MobiFone will transfer 344.66 million shares worth VND8.89 trillion (over $390 million) back to AVG, while the pay TV firm will return all the investment to MobiFone.

AVG said it will not seek compensation from the state-owned company.

Aside from the 95-percent stake, MobiFone said it had invested in projects such as hiring consultants for the acquisition, and AVG has agreed to cover all those expenses.

AVG said it had asked MobiFone to cancel the deal because the telco had not followed the development plan that the two parties had agreed on, and missed out on opportunities for AVG to expand.

The TV firm also said that MobiFone had only paid for 95 percent of the acquisition, and that it would need the remainder to balance the books.

After the government launched an investigation into MobiFone and its acquisition in September last year, both AVG and MobiFone’s reputations had been damaged, so scrapping the contract appeared to be the best solution for both of them, according to AVG.

A MobiFone representative told the meeting that the government inspection was the main reason for its late payment to AVG.

The company explained that it had to complete its own balance sheet for the investment in AVG before making full payment in line with regulations applied to a state-owned firm, but the inspection had interrupted that process.

As for now, AVG will return 30 percent of the investment to MobiFone in the next 10 days and the rest in the next 30 days, while MobiFone will transfer ownership back to AVG’s shareholders.

In August 2016, the Vietnamese government ordered an across-the-board inspection into the acquisition.

Deputy Prime Minister Truong Hoa Binh directed the Government Inspectorate and relevant agencies to start the investigation, saying any violations would be subject to a criminal probe.

“The acquisition is a big investment for the company [MobiFone], so it should be looked at carefully,” Mai Tien Dung, chairman of the Government Office, said at the time.

Any organization or individual who unlawfully takes advantage of their position or authority for personal gain will be strictly punished according to the law, and this will be publicized, Dung added.

The Government Inspectorate, the country’s top watchdog, announced it had launched a probe into MobiFone in September 2017.

MobiFone was hoping the acquisition would help it rival other giants Viettel and VNPT, both already present in the pay TV market.

The company had set a target of luring one million customers to its television service in 2016 and becoming one of the three biggest pay TV providers in Vietnam by 2020.

Source: VnExpress

M&As in the plastics industry: opportunities or challenges?

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With an annual growth rate of 20 percent and market value of $5 billion in 2017, plastic packaging will continue to be a profitable industry. However, the competitiveness of Vietnamese manufacturers is declining and analysts have predicted that the industry will see big changes in the time to come.

In 2017, the net profit margin of plastic packaging enterprises in Vietnam was estimated to fall by one percent due to a 3 percent increase in the PP plastic bead import tariff commencing early this year.

PP is the main material that thousands of plastic packaging enterprises must use. Eighty percent of it comes from imports.

The plastic industry has a relatively low profit margin of 5 percent, while the loss rate is up to 7 percent.

Nevertheless, Vietcombank Securities believes that the potential of Vietnam’s plastic industry is great because plastics consumption in the country is still low, 41 kilograms per head per annum, compared to the average level of 48 kilograms in Asia and 70 kilograms globally.

According to Ly Hoang Anh Thi from Vietcombank Securities, 12 plastic packaging enterprises making soft packs, food packs, PET and packs used in construction have listed their shares on the bourse with total capitalization value of over VND4 trillion.

The M&A wave, which has been strong in the last few years, has resulted in the establishment of new enterprises with a large scale, a high number of machines, and huge investments.

The number of packaging enterprises with sales of over $30 million is on the rise, while the number of enterprises with revenue of $5 million a year has soared in recent years.

However, most of the 2,000 plastic packaging enterprises are small scale.

A report from Thien Viet Securities found that the plastic packaging industry maintained gross profit margin of 15 percent in 2017, but risks were in the high debt proportions.

In 2017, Vietnamese enterprises all had a high debt ratio, with a short-term debt ratio of 70 percent and long-term debt ratio of 30 percent on average.

Most Vietnamese small plastic packaging enterprises have poor manufacturing tools which cannot satisfy high requirements from large consumer goods manufacturers and people’s consumption needs.

Market value has been increasing, but only foreign invested enterprises have received benefits.

In such circumstances, M&As are is expected to be a reasonable method to survive. The director of a plastics company said M&As would be a good way to realize investments, but are a threat to companies continuing to follow the old way of operating.

Source: VietNamNet

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