In Vietnam, plastic surgery goes hand-in-hand with love and fortune

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A nip here and a tuck there could lead to a better life, if you believe in local folklore.

In the western world, pronounced cheekbones are widely regarded as an attractive feature, but for Vietnamese women the same attribute could mean an untimely demise for their future husbands.

Vietnamese folklore and face reading have long advised men not to marry women with high cheekbones, unless they want to die early.

Ngoc, a 26-year-old Hanoian woman, has had her cheekbones reduced for fear of becoming another woman ‘left on the shelf’.

“Everybody told me it was true, so I haven’t dared to fall in love with anyone,” Ngoc said.

For a full transformation, Ngoc paid a total $8,800, which included double eyelid surgery, a nose job, and chin and cheekbone reductions.

26-year-old Hanoian Ngoc before (L) and after (R) cheekbone reduction surgery. Photo courtesy of Ngoc.

Vietnamese women like Ngoc are increasingly undergoing plastic surgery not just for beauty reasons, but in the hope of a happy love life, a bigger fortune and a brighter destiny. Vietnamese folklore has a big part to play in this, as it deems monolids as fishy, unreliable ‘eel’s eyes’, a physically big-mouthed woman as a gossip and undignified, and beauty marks under the eyes as a bad omen similar to high cheekbones.

Features such as bushy eyebrows, a wide chin, bumpy nose or crooked teeth are considered bad luck, often ‘too manly’ for a woman and simply not attractive, according to Vietnamese standards.

According to one common folklore: “Big-mouthed men are classy, but big-mouthed women ruin the family.”

Though hundreds of these centuries-old sayings are no longer popular, many are still lodged in Vietnamese people’s minds. Double eyelids, a slimmer nose bridge, cherry lips, a V-shaped chin and lower cheekbones are particularly favored, as they portray a harmonious and auspicious look.

And if getting rid of the bad luck was not enough, women can now create their own dimples not only to look cute, but also to attract wealth.

A rosy industry

Plastic surgeons across Vietnam have extensively made use of these traditional beliefs as marketing tool, extolling its virtues with advertisements saying “straight nose for fortune”, or “change your destiny with double eyelids”.

Demand for surgery soars as Lunar New Year nears. In December, beauty clinics across Vietnam reported double or even triple revenue, with many women looking for a new nose or fuller lips just in time for the New Year, which falls in mid-February.

“Nose jobs, chin reductions, breast augmentation and fat removal are popular,” says Hang Bui, a consultant at a beauty clinic that’s been open for two years in Hoan Kiem District, Hanoi.

This close-knit relationship between face-reading and plastic surgery is shared widely across Asian countries such as South Korea, home to the world’s biggest plastic surgery industry, and China, its fastest-growing market. And though Vietnam is not a plastic surgery haven yet, it was crowned the cheapest country in the world for plastic surgery by the Beauty Price Index last year – with a nose job costing just under $1,000 and breast augmentation for only $2,000.

But discount prices always come with risks. In October 2013, a woman in Hanoi died during a liposuction and breast enhancement procedure. Her surgeon was sentenced to 19 years in jail in December 2014 after dumping her body into a river.

Last December, Nguyen Thi Loan, a spa worker in Ho Chi Minh City was half-blinded and paralyzed after having a non-surgical nose job with injectable fillers.

This January, Huynh Suong, a 22-year-old from the southern province of Dong Nai, also suffered a similar fate after undergoing double eyelid surgery at a spa.

Vietnam has over 100 licensed plastic surgeons in Hanoi and Ho Chi Minh City, but thousands of unlicensed practitioners are operating across the country, according to local health departments.

But these accounts of plastic surgery disasters haven’t stopped Vietnamese women from going under the knife. To achieve the right look to find a partner and a happy life, many are willing to go the extra mile.

Huynh Tien, a restaurant manager in Saigon, had her first surgery when she was 22. In last August, the 30-year-old had already undergone 13 procedures and spent a total of nearly $9,000.

“I thought I was ugly, and that was why guys left me,” Tien said about past relationships. “Then I became obsessed with plastic surgery, thinking my love life would change.”

Nguyen My Linh, another 30-year-old who has had five nose jobs, was frustrated with the failed procedures – but admitted her life has changed for the better.

“We should know when to stop and spend time on learning and life skills, because women are the most beautiful when they have both a beautiful soul and appearance,” Linh said.

Like many other women, Ngoc, the 26-year-old Hanoian who had her cheekbones reduced, will continue riding her luck.

“Since the surgery, my job and love life have progressed,” Ngoc said. “Next, I’m going to get breast implants.”

 

Source: Vnexpress

 

 

All aboard: Express river buses set sail from Saigon

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Cruise the Saigon River and head for the beach or countryside in style.

Good news for travelers who want to explore the waterways around Saigon and people who are already tired of sitting on buses. New boat routes linking the city with its outlying district of Can Gio, its neighbor Vung Tau City and the nearby province of Ben Tre are now in service.

Private company Greenlines DP launched boat trips between the resort town of Vung Tau and Ben Tre Province in the Mekong Delta two days ago, and will start a Ho Chi Minh City-Can Gio-Vung Tau route on February 10.

Can Gio is famous for its fresh seafood while Vung Tau is known for its beaches. Ben Tre is ideal for countryside lovers thanks to its fruit orchards and inland waterways.

Tickets can be found on the company’s website and cost VND290,000 ($12.7) for the Vung Tau-Ben Tre service and VND250,000 for the other route.

Passengers can be picked up and dropped off at Bach Dang Wharf in HCMC’s District 1, Tac Xuat Wharf in Can Gio, Ho May Wharf in Vung Tau and Rach Mieu Wharf in Ben Tre.

All the docks are located near major roads, making it easy for passengers to catch a bus or taxi.

The boats can seat from 50 to 132 passengers, and are equipped with air conditioners, toilets, wifi, televisions, electrical sockets and bars.

HCMC is looking to make use of its inland waterways to ease traffic congestion and develop tourism.

The first route has been open for two months, cruising 10.8 kilometers (6.7 miles) from Bach Dang Wharf to Linh Dong Station in Thu Duc District, passing through District 2 and Binh Thanh District. The second is taking shape and will sail from Bach Dang to District 8.

In April last year, the city’s municipal administration approved two more river bus routes connecting the downtown with new urban areas in District 7.

The new routes will link Bach Dang with Phu Thuan Ward and Phu My Hung in District 7.

Source: Kim Ngan

10,000 employees leaving Vinasun amidst difficulties

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Nearly 10,000 employees quit or shifted to the franchise model, enabling Vinasun to save over VND1 trillion ($44 million).

Vinasun Corporation has just announced that the number of the company’s employees was 7,117, down 10,000 compared to early 2017.

In the first quarter of 2017, the company reported that 4,239 employees quit due to “unfair competition” from Uber and Grab. By the end of the third quarter, this number declined by 2,000. This number of employees leaving or transferring to be franchise staff (who are not counted as direct employees of Vinasun) is considered a new Vietnamese record.

The business results of Vinasun have changed significantly. The financial report for the fourth quarter recorded a net revenue of VND486 billion ($21.4 million), down 55 per cent (equivalent to $26 million) on-year as corporate management costs doubled from VND33 billion ($1.45 million) to VND65 billion ($2.86 million). Thanks to the revenue from the liquidation of fixed assets and advertisements of VND96 billion ($4.23 million), Vinasun avoided a million-dollar loss.

The gross revenue from sales and services, which hit VND2.937 trillion ($129.4 million), down 35 per cent on-year, is the lowest recorded in the last four years. Transport by taxi still contributed the lion’s share with over VND2 trillion ($91 million), capturing 70 per cent of the total revenue (from 98 per cent before), and franchising made VND566 billion ($25 million).

Thanks to cutting down the number of employees, Vinasun saved over VND1 trillion, but pre-tax profit was still only VND245 billion ($10.8 million), signifying a 38 per cent reduction on-year. Against the backdrop of weak purchasing power and heavy competition in Ho Chi Minh City, as well as the increasing price of gasoline and oil, surpassing the VND205-billion profit target counts as success in the company’s book.

At the end of 2017, the total debts of Vinasun declined by VND450 billion ($19.8 million) to VND1.176 trillion ($51.8 million) as long-term financial loans were paid off. The value of the debts due in 2018 is around VND365 billion ($16.1 million).

Company leaders have just announced that the Ho Chi Minh City’s People’s Court will open the first instance hearing of a claim for damages between Vinasun and GrabTaxi Vietnam Co., Ltd. on February 6.

Currently, Vinasun has collected all the evidence, including documents, images, and videos to prove that Grab violated commercial competition law by devaluation, particularly by staging promotions for more than 90 days per year.

 

Source: Nguyen Huong

Dan Hauer apologizes to General Giap’s family for his vulgar joke

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On January 30, the Authority of Broadcasting and Electronic Information arranged a meeting with Dan Hauer – a U.S national who is in hot water due to his offensive and vulgar comments relating to General Giap – the architect behind Vietnam’s victory over the French at Dien Bien Phu in 1954.

Le Quang Tu Do, Deputy Head of the Authority of Broadcasting and Electronic Information (ABEI), said on January 30, that Dan Hauer – a foreign English teacher did not appear at the appointment as scheduled because his family had to move to another place after receiving a ton of strict criticisms and threats.

However, Dan Hauer and his wife fully complied with authorities’ request at the meeting on Tuesday afternoon. According to Tu Do, Dan Hauer showed his deeply sincere apology.

“Despite living in Vietnam for almost 5 years and getting married to a Vietnamese woman, Dan made mistake when applying American culture in Vietnam and unintentionally offending General Giap,” Do added

After bombarded with thousands of criticisms by netizens, Dan Hauer immediately removed his comment and posted an apology video, but he continuously left a negative comment in another Facebook private group. Obviously, the comment quickly resulted in a public backlash with people calling for Hauer to stop teaching or event to be deported from Vietnam.

“Dan was aware of his seriously damaged actions and committed to tackling the consequences by removing all his erroneous comments, committing to not repeat the offense and providing free online English lessons. Furthermore, to make amends, Hauer asked to be allowed to visit General Giap’s house to light incense for the late and well-respected general and directly apologize to General Giap’s family,” Do said.

ABEI would evaluate Dan’s subsequent actions before deciding on a punishment.

Do stressed that while Hauers’ action was wrong, people should not express their disagreements with actions that are even more wrong, such as threatening his family.

 

Source: Thanhnien

Translated by Daisy Nguyen

19,000 freelance tour guides won’t lose right to practice

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The HCMC Tourism Department has reassured the 19,000 freelance tour guides that they will not have to become members of tourism associations or tour guide associations.

Under the new Tourism Law, tour guides can practice if they can satisfy three requirements. They must have tour guide cards and labor contracts signed with travel firms, or tour guide service firms, or membership in professional associations in tourism. They also must have contracts on providing tour guide services, or documents on duty assignments.

The Vietnam National Administration of Tourism (VNAT) has asked agencies to strengthen control over tour guides and establish the Vietnam Tour Guides Association.

Vietnam has about 20,000 tour guides, including 19,000 freelancers, while 90 percent of them are not controlled by any organization. VNAT hopes the new law will help manage freelance tour guides.

Tran Van Hoa from Asia DMC said tour guides have expressed satisfaction about the new law, complaining that they had been railroaded to join associations, pay tax and fees and contribute to funds

Members of associations are required to register to become a Viettel subscriber and have one smartphone.

Deputy general director of VNAT Nguyen Thi Thanh Huong said the biggest advancement of the new law is that all provisions are designed to serve travelers.

Regarding regulation about the membership of professional associations, Huong said the Vietnam Tour Guide. Association is not the only professional association.

“This means that tour guides do not have to join the association to be able to practice as a tour guide,” she said.

The deputy director of the HCMC Tourism Department La Quoc Khanh said if tour guides have guide cards and labor contracts with travel firms as requested by law, they won’t have to worry about membership in the Vietnam Tour Guides Association.

Ha Tat Thang, a Spanish and English speaking tour guide, said it is not necessary to require both the labor contract and tour guide contract.

Vietnam is seriously lacking tour guides. According to Nguyen Van My, president of Lua Viet, in 2017, Vietnam received 13 million foreign travelers, but there were only 12,000 international tour guides.

The shortage of tour guides for domestic tours is even more serious. Vietnam had 70 million domestic travelers in 2017, but there were only 7,927 tour guides. The country needs 50,000 tour guides.

Vietnam welcomed more than 13 million foreign visitors and served 73.2 million domestic tourists to earn US$23 billion.

 

Source: Vietnamnet

Facebook is banning all ads promoting cryptocurrencies — including bitcoin and ICOs

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Facebook is banning all ads that promote cryptocurrencies, including bitcoin, in an effort to prevent people from advertising what the company is calling “financial products and services frequently associated with misleading or deceptive promotional practices.”

That means no advertiser — even those that operate legal, legitimate businesses — will be able to promote things like bitcoin and other cryptocurrencies, initial coin offerings — ICOs for short — or binary options, according to a Facebook blog post.

That also means that “crypto-genius” James Altucher, whose ads have appeared all over the internet and have become a meme of sorts for the entire crypto industry, won’t be able to advertise on Facebook.

Ads that violate the company’s new policy will be banned on Facebook’s core app, but also in other places where Facebook sells ads, including Instagram and its ad network, Audience Network, which places ads on third-party apps.

“This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices,” wrote Rob Leathern, one of Facebook’s ad tech directors. “We will revisit this policy and how we enforce it as our signals improve.”

Source: CNBC

Vietnamese consumers losing interest in domestic products

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Foreign brands are stepping in as confidence in local goods wanes.

Brands made in Vietnam are losing their position in the local market due to fears of trade fraud that are pushing shoppers toward foreign products, according to a new survey.

Only 51 percent of the 17,300 consumers surveyed said they favored Vietnamese products, down 27 percentage points from last year.

The rate of people who actually shop for local products regularly fell 32 percentage points to 60 percent, according to the survey released by the High Quality Vietnamese Goods Business Association this week.

These large drops are “concerning”, said the association, which works to promote consumption of products made in Vietnam.

Lack of transparency in many businesses has shaken consumers’ trust, it said.

Fraud allegations such as those filed against the renowned high-end brand Khaisilk last October have hit consumer confidence hard, it said.

The case broke out after a business in Hanoi complained on Facebook that scarves it had bought from the brand were actually made in China, as one of them carried two tags: “Khaisilk Made in Vietnam” and “Made in China.”

Following an investigation in December, the trade ministry revealed that the company’s products did not contain any silk at all, and police are considering criminal charges.

“This is not a matter of individual businesses; it’s the management authorities as well,” said the report. Khaisilk was established around 30 years ago and promotes its products as high quality silk from Vietnamese craft villages.

With suspicion surrounding Vietnamese products, competitors from Japan, South Korea and Thailand have stepped in.

Regular consumers of these products have jumped from 3 percent last year to 8-10 percent, and 17 percent when it comes to confectionery and beverages.

“Foreign businesses have been making efforts to penetrate deeper into Vietnam’s retail market,” said Nguyen Van Phuong, the survey’s coordinator.

And once they get here, it’s easy for them to put their own products on the shelves, he said.

Thailand’s B’smart, Japan’s Family Mart and 7-Eleven, and South Korea’s Lotte and Emart have become popular retail outlets, and there are now hundreds of them across the country.

Vietnam’s retail market is in full swing. Retail sales in 2017 rose 10.9 percent from the previous year to more than $173 billion, according to the General Statistics Office.

Source: Vien Thong

Top Vietnamese taxi firm to take Grab to court over ‘unhealthy competition’

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Vinasun claims it has proof that Grab has dumped its service on the local market to drive out local competitors.

Vietnam’s top taxi firm Vinasun is taking the Vietnamese branch of the Malaysia-based ride-haling firm Grab to court over “unhealthy competition”.

Vinasun is suing GrabTaxi Vietnam under the country’s competition law, a representative told VnExpress.

The company said it has documents, photos and videos to prove that Grab has violated the law by dumping its service on the local market.

One of the most convincing charges is that GrabTaxi Vietnam ran promotions for more than 90 days in a year, which is against the law.

In a letter sent to the Prime Minister last year, Vinasun said ride hailing firms, including Uber from the U.S. and Grab, repeatedly ran promotions without gaining permission from authorities.

Other countries like Thailand, Indonesia and Japan have either banned or tightened their management of Uber and Grab after concluding that the two companies have been operating as “disguised taxi firms”, read the letter.

Vinasun has asked for an end to the unhealthy competition, and said ride hailing firms should be under the same umbrella as traditional taxi firms in Vietnam. This would mean Uber and Grab would have to limit the number of cars they operate and adhere to price controls.

In July last year, Vinasun said nearly 8,000 of its drivers had quit in the first half of 2017 due to harsh competition from ride-hailing firms.

Three months later, it reported losing 2,000 more drivers for the same reason, leaving the company with 7,000 employees.

The company earned VND4.25 trillion ($187 million) in revenue and VND205 billion in net profit in 2017, down 10 and 34 percent respectively compared to 2016.

The same story applies to Mai Linh, another major local taxi firm.

Mai Linh lost 6,000 drivers in the first half of 2017, equivalent to 20 percent of its employees, according to a company report.

Its business results did not read much better during the period, with revenue falling more than 5 percent on-year to VND1.72 trillion ($75.8 million).

Both Mai Linh and Vinasun have repeatedly blamed Uber and Grab for their losses, but the finger-pointing has received little support from the public, with many passengers saying they were already unhappy with the poor and unreliable services provided by the firms.

In its latest attempt to win back customers, Vinasun set up a Facebook booking service last year. The chatbot allows passengers to check the fare, preventing drivers from overcharging them, and is expected to reduce the 205,000 calls the company receives every month.

Earlier in January, the Ministry of Transport said Grab and Uber are to be officially authorized in Vietnam after completing trial runs, but the government has pledged to impose the stricter controls it currently imposes on local transport firms.

Ride-hailing services will have to register their businesses with investment authorities and the transport ministry and the tax authorities.

“Tax agencies will keep track of fares so management can be more transparent,” said Tran Bao Ngoc, director of the ministry’s Transport Department.

Hanoi has also recently put up traffic signs banning Uber and Grab cars from operating along roads off-limits to traditional taxis.

Source: Phuong Dong

VN shares drop on energy and banking stocks

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Vietnamese shares declined on Tuesday morning due to investors’ profit-taking attempts that hit the large-cap stocks in the energy and banking sectors.

The benchmark VN Index on the HCM Stock Exchange edged down 1.15 per cent to close at 1.097,18 points. It had edged down 0.69 per cent to close at 1,109.80 points on Monday.

The minor HNX Index on the Ha Noi Stock Exchange dropped 0.71 per cent to end at 126.44 points.

The northern market index gained 0.42 per cent to end at 127.35 points on Monday.

Nearly 246.3 million shares, worth more than VND6 trillion (US$263.6 million), were traded on the two local exchanges.

Declining stocks outnumbered the gaining ones by 296 to 144, while 296 other stocks ended flat.

Among the worst decliners of the banking sector were Bank for Foreign Trade of Vietnam, down 1.76 per cent; Bank for Investment and Development of Viet Nam, losing 2.31 per cent and Military Commercial Joint Stock Bank, moving down 2.11 per cent.

Meanwhile, the energy sector was driven down by PetroVietnam Gas Joint Stock Corporation, PetroVietnam Technical Services Corporation and Drilling Mud Joint Stock Corporation, down 9.05, 3.75 and 3.23 per cent, respectively.

The afternoon trading session starts at 1pm.

 

Source: VNA

US fines Deutsche Bank, UBS and HSBC over market manipulation

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US authorities on Monday (Jan 29) announced fines and charges against three major European banks and eight individuals accused of manipulating futures markets for precious metals.

Deutsche Bank, UBS and HSBC will together pay a total of US$46.6 million to settle allegations that traders at the banks worked to manipulate futures markets in precious metals through a process known as “spoofing,” the Justice Department and Commodity Futures Trading Commission said.

Seven former traders, including ex-UBS trader Andre Flotron, who was indicted last year, as well as a technology consultant, also face charges of “spoofing” – in which traders place and then abort trades to manipulate prices – on markets for various precious metals including gold and silver between early 2008 and about 2014.

The suspects were based in New York, Switzerland, Britain, Australia, the United Arab Emirates. Prior to this case, only three other people had been charged with the crime of spoofing, according to the Justice Department.

In actions brought by the CFTC, which regulates derivatives markets, Deutsche Bank suffered the largest penalty at US$30 million while UBS agreed to pay US$15 million and HSBC was fined US$1.6 million.

The suspects allegedly placed hundreds and sometimes thousands of fraudulent “spoof orders” to create the appearance of demand and cause other market players to trade at inflated prices or make moves when the would otherwise have held their positions.

“Conduct like this poses significant risk of eroding confidence in US markets and creates an uneven playing field for legitimate traders and investors,” John Cronan, the acting head of the Justice Department’s criminal division, said in a statement.

James McDonald, director of enforcement at the CFTC, which regulates derivatives markets, said electronic and algorithmic trading had created opportunities both for legitimate trading, which CFTC supported, and for fraud.

“We are equally committed to identifying and punishing these bad actors,” he said in a statement.

David Liew, a Deutsche Bank trader, pleaded guilty in June and has reportedly agreed to cooperate with prosecutors.

 

Source: AFP

​VietJet fined for bikini show on plane carrying U23 footballers home

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Budget carrier VietJet has been fined VND40 million (US$1,760) for hosting a bikini performance on its flight carrying the national U23 football team back home from the 2018 AFC U23 Championship in China on the weekend.

The fine was issued on Tuesday by the Civil Aviation Administration of Vietnam (CAA), according to an announcement posted on its website the same day.

The performance in question occurred on VietJet charter flight VJ7269 from China’s Changzhou to Vietnam’s Hanoi on Sunday.

Although the in-flight performance did not lead to unsafe conditions, it was a potential threat to flight safety and therefore the airline had been fined in accordance with aviation regulations, CAA said in its announcement.

Apart from the administrative fine on the airline’s part, the purser on flight VJ7269 was also fined VND4 million ($176) for failing to report the incident to the flight captain.

VietJet CEO and President Nguyen Thi Phuong Thao received written advice for her responsibility as the chief executive of the airline.

VietJet has drawn a storm of criticism after a clip began to circulate across social media platforms on Sunday showing bikini-clad dancers strutting and performing suggestive moves on the airline’s Changzhou-Hanoi flight carrying the U23 footballers.

The performance was described as “ridiculous” and “grotesque” by Vietnamese fans, given that the passengers were ‘national heroes’ who had brought pride to the country by finishing as runners-up at the Asian football championship.

VietJet’s Thao took to the airline’s official Facebook page later the same day to apologize for the public relations misstep, though blaming the dancers for having put on a spontaneous performance.

The VietJet Facebook page has now been deactivated following a drove of negative comments on its posts directed at the scandal.

 

Source: Tuan Son

Focus on rules of foreign investment in Vietnam

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Vietnam is the easternmost country on the Indochina Peninsula, which is bordered by China, Laos and Cambodia. It has advantageous natural conditions and rich mineral resources. Vietnam is a socialist state that officially espouses communism and is currently enjoying political stability. Since 1986, Vietnam has initiated a series of economic and political reforms and opening-up policies, and has embraced an economic development-centred policy that pushes it towards integration with the world economy.

In November, 2006, Vietnam joined the World Trade Organization (WTO), and after that the Vietnamese economy has kept a high growth rate, with the annual GDP growth in 2015 and 2016 running at 6.7% and 6.2%, respectively, and economic forecasts for 2017 to achieve 6.3%.

Attracting foreign investment

With the rapid development of the economy, Vietnam is becoming more and more attractive for foreign investors. Besides the political stability and economic growth, there are other factors that make the country attractive, such as: (1) Relatively low wages. The population of Vietnam is relatively young, with 64.33 million people at working age out of a population of 91.9 million; (2) Advantageous geographic location. As a coastal country with 3,260km of coastline, Vietnam has major sea ports that provide transportation convenience for traders; (3) Relatively friendly investment legal framework. The laws in Vietnam provide comprehensive basic legal protection and preferential policies for foreign investors; (4) High degree of openness. Investors can take advantage of the ASEAN Economic Community, Trans-Pacific Partnership and other free-trade platforms to access the international market; and (5) Strong demand for infrastructure. With rapid economic development, the demand for infrastructure is increasing.

Legal framework

After joining the WTO in November 2006, Vietnam vigorously cleaned up domestic laws and regulations, and increased the attraction for foreign investment. The Law on Investment (LOI) 2014 and the Law on Enterprises (LOE) 2014 came into effect on 1 July 2015. These laws allow foreign investors to participate in economic investment activities in Vietnam, noting that investment in certain sectors, such as banking and insurance, must be subject to specialized laws and regulations.

Local commercial presence

Under Vietnamese law, foreign investors may establish a commercial presence either wholly or partly owned by foreign investors. The commercial presence may be established in the form of a limited liability company, joint-stock company, partnership or representative office.

Under Vietnamese law, foreign investors may participate in BOT, BCC, BT and PPP projects. Under government decree 15/2015/ND-CP, dated 14 February 2015 (decree 15), the government expressly encourages investment in infrastructure facilities including roads, railways, air and sea ports, water supply and treatment, drainage, garbage and sewage treatment, power plants and transmission plants.

The LOI of 2014 provides for a new type of investment form: the public-private partnership (PPP). The PPP contract is not a legal entity, but a contractual agreement between investors and the competent state agency for implementation of an investment project for new construction, renovation, upgrade, expansion, management and operation of infrastructure facilities, or provision of public services.

There is no separate law on protection for foreign investments in Vietnam. However, foreign investment protection can be found in international investment agreements to which Vietnam is a signatory. In addition, the LOI 2014 includes various provisions that provide guarantees relating to foreign investors’ assets in Vietnam.

Pursuant to the provisions of the LOI 2014, lawful assets and invested capital of investors may not be nationalized or confiscated. The state may only nationalize or confiscate assets of a foreign investor in an actual necessity for the purpose of national defence and security, or the national interest. In such cases, the investor should be compensated at prevailing market prices. Compensation should be made on a non-discriminative basis and in a freely convertible currency that can be remitted abroad.

Foreign investors are also protected with respect to their intellectual property, market access, and the right to remit their capital and assets out of Vietnam. The LOI 2014, however, states that remittance of profit and other gains by foreign investors may only be done after satisfaction of financial obligations (including payment of taxes).

Chinese investors can also benefit from certain protections and guarantees under the bilateral investment protection treaty between Vietnam and China, which came into force on 1 September 1993.

Source: vantageasia.com


Investment Law firms, recommended by foreign investors in Vietnam

Vietnamese games distributors grow slowly, blocked by foreign giants

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Unable to ‘play’ on a level playing field, domestic games developers and distributors are finding it difficult to grow.

According to Director of VTC Intecom Nguyen Thanh Hung, the number of Vietnamese users downloading games provided by domestic firms from Google App Store accounts for 26 percent of total games, while foreign games account for 74 percent.

While domestic firms are put under tight control of state management agencies, foreign firms are not.

Foreign games are provided through Google or Apple app stores. Hung urged management agencies to apply measures to force foreign firms to pay tax. As they earn money from the Vietnamese market, they have to contribute tax.

CEO of CMN Online Pham Quoc Thang said management agencies’ need to carefully consider the problems in the gap between local and foreign firms. Games distributors also pointed out problems existing in the payment method for games.

Consumers pay via mobile network operators’ cards, SMS, international payment cards, and intermediary payment portals such as e-wallets, or pay directly to games distributors via their own issued cards.

However, the revenue from payments via mobile network operators’ cards and SMS is the biggest, accounting for 65 percent of total revenue. Vietnam is contrary to global trends where revenue via this mode is very low.

Thang said it is necessary to discourage payment through mobile network operators’ scratch cards because of technical problems as this can allow phishing.

He also complained about profit sharing between games distributors and telcos.

According to Thang, telcos pocket 18-20 percent of revenue, while games distributors, after paying games royalty, marketing expenses, salaries and operation costs, can collect only 3-5 percent.

Games development and distribution is an industry with high potential. However, games firms said they struggle to survive, while many others have died.

To compete and obtain the right for games distribution, domestic firms have to raise purchase prices, thus eating into profits.

Thang said in 2011, firms had to pay $20,000-30,000 for one foreign game, mostly from China. In many cases, firms have to pay one million dollars to buy one game for domestic distribution.

“This is because domestic firms compete with each other and don’t support each other,” he commented.

Vietnam has been the biggest game market in South East Asia since 2015. The total revenue of the game industry in the year reached $237 million, ranking sixth in Asia, after China, Japan, South Korea and Taiwan. The Vietnamese game industry is expected to earn annual revenue of US$1 billion within 10 years, according to experts.

Source: VietNamNet

Vietnamese FMCG brands are flourishing

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Reports released recently by market analysis firms all show that in the FMCG (fast moving consumer goods) sector, Vietnamese brands hold the upper hand over rivals from multinational corporations.

Kantar Worldpanel’s Asia Brand Power report released on January 15 showed that Asian brands have been prospering in domestic markets in recent years.

In Vietnam, market share held by Vietnamese brands are superior to global brands in both rural and urban markets. In rural areas, Vietnamese brands hold 78 percent of market share, or 3.5 times higher than global brands. In large cities, the figures are 71 percent and 29 percent, respectively.

Kantar Worldpanel’s David Anjoubault commented that the strength of Vietnamese brands not only lies in good understanding about local markets, but also in distribution networks.

The success of Vietnamese brands is attributed to the close cooperation with Vietnamese retailers.

The relation between Vietnamese manufacturers and retailers is stable because it aims for mutual benefits. Retailers help Vietnamese brands approach local consumers more easily than international rivals. Meanwhile, manufacturers support retailers’ sale strategies to get adapted to the changes in consumers’ shopping habits.

The report by Nielsen on top 100 FMCG manufacturers in Asia Pacific also gave similar comments.

After analyzing four largest market segments including food, beverage, home care and personal care products, Nielsen came to the conclusion that while multi-national brands gained a. 2 percent growth rate in value in 2016 (5 percent in 2014), Vietnamese brands gained a growth rate of 7 percent (5 percent in 2014). Vietnamese manufacturers made up to 42 percent of total revenue of the whole FMCG sector.

In the food & beverage segment, Vietnamese enterprises hold the upper hand with market share of 69 percent and 45 percent, respectively. In home care and personal care segments, multinational brands have advantages, but their growth rates were lower than domestic ones.

Nguyen Anh Dung from Nielsen Vietnam explained that domestically made product quality has been improved recently, while they have more competitive prices and they are distributed through large retail markets which allow access to consumers in remote areas.

More modern retail chains have become distributors for FCMG manufacturers.

With the current low consumption level in the Vietnamese market, the FCMG sector still has great opportunities to develop and bring stable profits to investors.

Profit500, a Vietnam Report list of the 500 most profitable enterprises, showed that increasing sales and reducing costs are the top priority of FMCG manufacturers in the next 12 months.

Also according to Vietnam Report, the number of Vietnamese digitally connected spenders is expected to rise from 23 million and consumption level of $50 billion in 2015 to 40 million and $99 billion by 2025.

Source: Mai Thanh

The whining expats in Vietnam

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I’ve spent most of the past 5 years here in Vietnam as well as my other roaming destinations and Vietnam is by far my favourite.

Locals and foreigners alike usually burst out laughing when I tell them my big secret:

Since I came back to live in Asia 5 years ago, I have avoided most interaction with expats!

Of course I come across some really great expats but all too often what I wrote above is true – I can’t stand their whining and moaning about overseas living, why the locals do this and don’t do that, why things don’t function the way they’re accustomed to, the food, traffic.

You name it, they moan and groan about it.

What is an expat? The term is the abbreviation of “expatriate” which originates from the Latin “ex patria,” referring to someone living outside their home country. That can be someone on an overseas work assignment, retired and living in another country, or a nomad, like myself, who doesn’t live in any one particular place.

For the purposes of this discussion let’s focus on the expat who has chosen to go abroad to marry, work, or retire voluntarily.

I’ve spent most of the past 5 years here in Vietnam as well as my other roaming destinations and Vietnam is by far my favourite. From welcoming, tolerant, warm locals to great weather, variable climates, the best food I’ve ever had, a low cost of living, and a great infrastructure considering it’s a developing country, you can’t go wrong here.

In my opinion, an expat would really have to put in top effort to have a bad experience here.

This is a topic about which I consider myself an expert – I’m into my 40th year as an expat. I’ve lived in 8 different countries outside my native Canada. I’ve survived coups, revolutions, typhoons, earthquakes, and a host of other obstacles. I speak a bunch of languages, some poorly, some very fluently. For certain, I know the expat game from here to Peru and a lot of places in between.

I estimate three-quarters of expats are for the most part unhappy with their situation. The other 25% roll with the punches, accept the good and bad, and are overall content.

So why are so many expats so unhappy?

Part of it is easy to understand: the expat goes overseas and leaves behind all things familiar and comfortable, taking off into the unknown. That’s not easy to do. To cushion the blow and best manage that change, the expat needs to study his destination in great detail before going and to come up with realistic expectations.

Simple concept, yet most expats I know spent little or no time analyzing the situation in their target country before setting sail. They choose a country for a variety of reasons – most of those reasons seem bizarre and impractical to me: they met a girl and took a chance at a country they knew nothing about, they had a buddy already living in that country, or they had a job opportunity that attracted them.

Just because someone likes a girl in a given country or has a friend there, will that ensure that their whole expat experience will be favourable? Of course not, why would it? It’s nice to know people, especially a potential partner or close buddy, but that doesn’t ensure success or even give a distinct advantage.

But, wait, it gets weirder.

The other observation I’ve made is that many expats go abroad expecting to reap all the benefits a developing country like Vietnam offers without confronting any of the obstacles that go hand in hand with the experience.

That makes no sense to me and never has. Here’s a classic example: the driving habits in Vietnam are very different from any highly developed country. The expat who wants to drive here must accept the risk that goes with it – for example, accidents are frequent, foreigners often do not get the benefit of the doubt in case of an accident, nor should they.

That’s just the way it is – we take it or we leave it.

Similarly, Vietnam has the same issue with garbage and recycling that every country has, developed or not. It’s huge, it’s everywhere, and it’s getting worse. In many cases, those spotless countries that appear to have it all solved pay to have their garbage shipped abroad.

As a Canadian, I was appalled at the situation in the USA when I moved there. It’s commonplace to find household furniture, appliances, and every imaginable type of rubbish on freeway entrances and exits where it’s easy to dump things out of vehicles undetected. Garbage is routinely thrown on the streets, sidewalks, and out of car windows.

So why would we expect a developing country to manage it as well as we do? Developing countries have limited resources, that’s why they’re labelled as developing. Vietnam doesn’t have the resources to put a policeman or street cleaners on every corner.

Why is it that I rarely hear expats talking about the bad things at home that they’ve been lucky enough to leave behind? Right now in my country it’s the middle of winter – it’s cold, it’s so dry that sinuses, eyes, ears, and throats often ache. Snow all over the place, everything must be heated at great cost. Winter clothes, snow tires, and on and on.

It’s awful by any measure, and on top of that the cost of living is horrendous! If I had stayed in Canada or the USA, I’d be lucky if I ever retired, so how should we feel to be abroad?

There is only one answer: I’m very fortunate to have escaped at a relatively young age and remind myself of it every day of my life. If not for the low cost of living in Vietnam I’d be slaving away working in my country until too old to enjoy life.

Gratitude is another big piece of the puzzle, yet I rarely hear expats telling me how lucky they are to live on a paltry sum and enjoy the wonderful weather, food, and easy lifestyle.

Indeed, many spend a lot of their day dissecting, re-engineering, and improving everything they don’t like instead of being grateful for all the benefits. I hear it every day when I’m around expats: substandard hygiene in restaurants, the aforementioned garbage issues, double pricing, and so on ad nauseam.

This assumption that we do everything better is another head-scratcher to me. Granted, developed countries are the purveyors of countless modern amenities and innovations. But that doesn’t mean that locals are without culture and sophistication and require our expertise to improve their lifestyles.

Just sit down and eat and watch what goes on! Do Vietnamese people hastily prepare their food, then ram it down their throats as if they were filling the gas tank on their cars? Local customs are diligently respected from preparation right through to enjoyment. After all, what’s more important than the food we eat? Incredible eating culture in this country yet many expats find a way to criticize it. Baffling.

So, much of the expat experience comes down to learning rather than teaching, absorbing and understanding what is done and why. Those who come to teach and cultivate face a long uphill battle that never ends.

Me? I’m busy rolling with the locals, learning, absorbing, respecting their ways. I’m here to learn – if not why come here?

And I keep as far away from those 75% that are disgruntled with the whole experience.

They have no idea what they’re missing.

Source: Rick Ellis

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