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VN-Index surge is cause for concern

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As the VN-Index breaks the 1,000-point mark and paints a rosy outlook for the rest of 2018, questions have arisen on whether Vietnam is getting too expensive for foreign investors.

A New Year’s high

The Vietnamese stock market got off to a good start in 2018. Its main gauge, the VN-Index, crossed the 1,000-point threshold on January 3 and has returned to its peak 10 years after the speculation bubble burst and crippled the market. Over the past fortnight, the index remained above the 1,000 mark and closed at 1,048 points on Friday morning.

In 2017, Vietnam’s main index grew by 48 per cent, fuelled by strong gains in blue chips, news of state divestments, and increasing attention from foreign investors. Le Duc Khanh, head of Investment Advisory at PetroVietnam Securities Inc., said that the market was buoyed by Vietnam’s stable macro-economics, steady foreign exchange rates, and major foreign investment deals.

“The Vietnamese economy is embarking on a new growth cycle. I believe that if positive news continues, the VN-Index can hit 1,200 points in the first quarter of 2018 and possibly reach 1,400 by the second or third quarter,” Khanh said.

The analyst then listed some of the upcoming share sales that may shake up the market and lure foreign capital into Vietnam, including the sales of PV Oil, PV Power, and Binh Son Refinery – all scheduled for the first quarter of 2018. Major companies such as Genco 1 and 2 as well as Vietnam’s Rubber Group are also up for public listings.

Moreover, the Ministry of Industry and Trade recently announced the list of divestments for 2018, which includes industry heavyweights such as Petrolimex, Vietnam National Textile and Garment Group (Vinatex), Vietnam Steel Corporation (VNSteel), and Vietnam Pharmaceutical Corporation (VinaPharm). The Airports Corporation of Vietnam, managed by the Ministry of Transport, is also up for further state divestments, along with the approved plans for Binh Minh Plastics, Tien Phong Plastics, and Domesco Pharmaceutical.

In the private sector, various banks are also being listed and selling shares to foreign investors, the most recent one being HDBank. TPBank, LienVietPostBank, and Techcombank have also revealed plans to list or raise external capital this year.

These back-to-back deals are expected to draw the attention of overseas investors, be they strategic partners or investment funds.

Too steep a cost?

Despite the rosy outlook, there are also concerns that due to the ongoing rally of the stock market, Vietnam is getting more expensive in foreigners’ eyes, eroding the appeal of Vietnam as a cheap frontier market.

In fact, the current price-over-earnings ratio of Vietnam is 20.2x, placing it higher than Thailand’s 18x, and significantly above Pakistan’s 8x and China’s 16x. According to Mac Quang Huy, CEO of Maritime Securities, this means Vietnam is no longer an affordable market when compared to its neighbours in the region.

“Rising prices mean that Vietnam cannot rely on its cheap valuations to attract overseas investors anymore. It’s time to focus on other factors such as the business results of listed firms, which are forecast to grow by 20 per cent this year. In addition, we need more state divestments and major share sales to increase the supply of stocks for investors,” said Huy.

Nguyen Duc Hung Linh, head of Retail Research and Investment Advisory at Saigon Securities Inc., also acknowledged that the Vietnamese market is no longer a cheap destination for foreign capital. According to Linh, the stock exchange welcomed many high-profile newcomers in 2017, such as shopping mall operator Vincom Retail and budget carrier Vietjet Air, which helped to boost the VN-Index.

“The market was on a bull run last year as these new stocks appreciated a lot in value. I expect a similar occurrence this year, as we have many state divestments and listings coming up,” Linh noted.

In the first week of 2018, foreign investors net bought $73 million of securities in Vietnam, including $45 million in stocks and $28 million in bonds. The National Financial Supervision Council expected stocks in banking, retail, consumer goods, and aviation to lead the gains in 2018.

In its latest report, the council also expected overseas investors to continue flocking to Vietnam despite external factors, such as the US Federal Reserve raising rates or geopolitical pressures around the world.

Source: Phuong Nguyen

VIB posts strong profit growth in 2017

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The Vietnam International Bank (VIB) has reported pre-tax profit of over VND1.4 trillion (US$62 million) in 2017, surging 100 per cent year-on-year or far surpassing the yearly target.

VIB’s total assets also saw a positive yearly increase of 18 per cent to VND123 trillion ($5.4 billion), while the bank’s total credit balance amounted to approximately VND90 trillion ($3.95 billion), up 26 per cent year-on-year, according to its business results, which were released on Tuesday.

As per the results, the bank’s capital adequacy ratio (CAR) was 13.1 per cent, its ratios of non-performance loan (NPL) and return on equity (ROE) stood at 2.49 per cent and 12.7 per cent, respectively. Earnings per share were VND2,000, which was considered a high rate among domestic banks.

On January 17, 2017, VIB debuted more than 564.4 million shares on the Unlisted Public Company Market (UPCoM), a move that the bank hoped would create transparency in its activities, share price, market capitalisation and share liquidity, to make it easier for investors to make decisions.

After 12 months, the bank’s share price has increased by 71 per cent to VND29,200 per share from VND17,000 on the first trading day.

Meanwhile, VIB has also been in the top ranking of Moody’s for many consecutive years. As one of 10 banks selected by the State Bank of Viet Nam to pilot Basel II, VIB said it will implement Basel II before the deadline set by the State Bank.

“We are making greater efforts in ensuring the bank’s operation with the best and most transparent standards,” VIB general director Han Ngoc Vu said.

In the years to come, VIB will focus on expanding its scale and continue perfecting the quality of products and services, the bank said.

Top priority will be given to expanding its retail operations, consolidating its leading position in a number of products catering to individuals, small and medium-sized enterprises, bettering customer service, improving labour productivity and bettering risk control in line with international standards.

The bank’s 2018 shareholders meeting will be held in late March.

Source: VNS

Vietnamese spend more on traveling in 2017: survey

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Vietnamese people were increasingly willing to take a vacation after covering the expenses on basic necessities last year, according to a consumer confidence survey by Nielsen, a global market information company.

The research revealed that during the third quarter of 2017, on condition that the payment of essential living costs had been made, more than two out of five people (or 44 percent) in Vietnam showed an inclination to spend their earnings on vacations.

Compared to the preceding quarter, the spending represented a six-percent increase.

The category of travel did not appear in Vietnamese consumers’ saving strategies, which included reducing the money on out-of-home entertainment, new clothes, utilities, take-away meals, and technological device upgrading.

The absence is noteworthy, as the trend for Vietnamese people to make savings for the future was onward, with 63 percent and 66 percent of the consumers surveyed doing this last year during the second and third quarter.

The spare cash was also intended for various purposes such as household improvement, new clothes, and new technological products.

In addition, about 28 percent of the respondents chose to use the money for insurance premiums.

This pattern suggests that the Vietnamese desire an improvement of the quality of life, and they have actually established a solid foundation for its realization in recent times, said Nguyen Huong Quynh, managing director of the Nielsen business in Vietnam.

No official figures on the vacation activity by Vietnamese people have been published yet, but increased income and the popularity of social media may boost the need to travel.

Also, these occurrences might have allowed easier access to booking and destination information and therefore triggered the travel activities of the Vietnamese.

Source: Tuoitrenews

6 in every 1,000 Vietnamese drivers are on the phone

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The habit can increase the risk of collision by up to 20 times, but that doesn’t seem to bother many reckless drivers.

People who use their phones while driving can pay a fine of up to $35 for the offence in Vietnam, but that has not been enough to convince many to hang up the dangerous habit, a survey has found.

Six in every 1,000 drivers in Vietnam are on the phone, either texting or talking with the device pressed against their ears, according the survey by the Vietnamese-German Transport Research Center at the Vietnamese-German University based in Binh Duong Province.

The survey, presented at a Tuesday meeting held by the National Traffic Safety Committee, was conducted at nine places in Binh Duong and Saigon last year, and spotted 210,000 people using their phones while driving.

Car and truck drivers were the worst offenders, while 80 percent of all violators were men, the survey found.

More than half of the drivers caught using their phones said they continued driving normally because they felt confident they were in control.

Vu Anh Tuan, director of the research center, said that using the phone while driving can increase the risk of road crashes by three times for cars and 20 times for motorbikes. The risk is 8.5 times higher when drivers are physically holding the phone and five times higher when when they’re using handsfree mode, he said.

Vietnam fines drivers caught using their phones VND600,000 ($26) to VND800,000 ($35), and added car and truck drivers to motorcyclists on the list of offenders at the beginning of 2017, but that does not seem to have helped.

This video shared last July shows a driver glued to his cellphone while driving a bus full of passengers along an expressway in northern Vietnam.

Khuat Viet Hung, vice chairman of the National Traffic Safety Committee, said at the meeting that the behavior “directly affects” road safety. He said the study will be used to improve the legal framework regarding the violation.

Tuan’s study is possibly one of the first about the use of phones on the road in Vietnam, a habit that has been defined as one of the five top causes of road crashes in the world.

“Using a cellphone while driving is definitely a major road hazard in Vietnam,” Greig Craft, the founder of the Asia Injury Prevention Foundation (AIPF), a U.S. non-profit organization that seeks to reduce traffic crash injuries and fatalities in developing countries through public education campaigns, said in a past interview.

“But many people are not yet aware of the extreme danger they are placing themselves and others in when they indulge in this behavior,” Craft said.

In October 2014, Nguyen Trung Hieu killed a family of three when his truck crashed into their motorbike. The father and his three-year-old son were crushed, while the mother succumbed to critical injuries en route to hospital. Police in the central province of Nghe An, where the accident happened, later said Hieu had been talking on his cellphone.

Data from Google showed that more than half of Vietnam’s population own a cellphone, and that’s projected to eight in 10 by 2020.

At the same time, road crashes remain one of the biggest causes of deaths in the country, killing one person every hour on average.

Source: Doan Loan

10 Reasons You Should Move to Asia to Start Your Lifestyle Business

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Today we’re going to look at 10 of the reasons why I think starting a lifestyle business in Asia is such a good idea.

1) Cheap Food and Drink

This seems like such a generic answer for why you should move here, but it’s such a big part of the appeal that it has to be mentioned.

Living in the States is expensive. If you’re in the UK or Australia it’s even more expensive. Food and drink are easily one of the most expensive aspects of our day to day lives.

Especially when you’re in build a business mode and are constantly out meeting people and socializing. In Portland I easily drop $50 or more on a night out meeting people.

Last night in Saigon I got an incredible bowl of pho for 35k Vietnamese Dong – just under $2. The local beer here can be had for 12k Dong – about .$60.

My breakfast this morning. Cost me just over a dollar.

Simply by relocating I can go from averaging $40-50 a day on food and drink to $10 or less all while maintaining a very active social and networking life. That’s huge.

Keep in mind every city is different – Hong Kong for example is not cheaper than living in the western world. But Bangkok, Pnomh Penh, Chiang Mai, Hanoi, Manila and even Bali can be unbelievably affordable.

2) Easy Access to Other Regions

This is one of the things I loved about my time in Bangkok. I could hop on a train and for about $20 I could be on a tropical beach in less than 12 hours – for less than $100 I could be there in a fraction of the time via plane.

With budget airlines and bus systems getting around SE Asia is not only easy, but affordable. You can usually get to any major hub for under $200 round trip if you can stay flexible.

My flight round trip from Hong Kong to Saigon was 15,000 Avios points and $70. Not bad. Although I did chip in an extra 7500 miles to make one of my legs business class.

Can’t go wrong with Cathay Pacific Business ?

3) Easier to Make Contacts

This seems counter intuitive, but I promise you, it’s easier to meet new people likeminded people when you’re in Asia than back home.

Why? Well for starters there’s the simple question:

“Where are you from?”

It’s the easiest intro ever, and you can go to any number of thousands of expat or tourist bars across Asia and meet people simply using that one line.

I’ve found usually if someone is over here from the States they’re usually doing something interesting – and know other people who are as well.

There’s a huge community of entrepreneurs and people who read this blog here in Vietnam. I had a group of a few dozen friends when I lived in Bangkok – and no matter which Asian city you go to, you’ll find the same and find it’s easy to break into the circle.

4) Everyday is an adventure

I often tell the story about how during my first day living in Thailand I saw an elephant walking down the street.

Seriously.

I’ve been in Vietnam for about 24 hours and I’ve already seen a guy with a washing machine on the back of his motorbike, containers full of snakes for sale on the side of the street, and I’ve been nearly killed trying to cross the street no less than a dozen times.

In Bali, I got lost for hours on a motorbike. I was supposed to be going on a quick hour long trip to the center of the island. 2 hours into it I found myself on a beach. To this day it’s one of the most memorable experiences I’ve had while living abroad.

It’s that sense of adventure and “you don’t see that everyday” that makes Asia so unique for me. Every time you travel to a new city, or even a different part of a city you know – you’re exposed to a new adventure.

5) Inexpensive Talent

Many people in Location Rebel start outsourcing and hiring remote workers as their business grows. I’ve found that when working with remote teams it makes a huge difference if you can meet them in person.

Back during my days with the Tropical MBA I spent 3 weeks working with our remote team in the Philippines and the quality of both the work and the relationships were greatly improved.

Hanging in Vietnam with other Tropical MBA alumni.

There’s a plethora of talented people out there that you can pay much less than what you’d pay in the States – but much more than they would typically make in their home country. It forges a unique win/win scenario that is much easier to setup when you’re on the ground.

6) Forces you to think differently

Blind routine is a terrible thing. Deliberate routine is what will make your business successful.

When you’re at home, and especially in a day job, it can be easy to just go through the motions of life and before you realize you’re so stuck in your ways that change is nearly impossible.

Living in Asia forces you to think differently. When you’re first starting out you have to be deliberate about the routines you setup, and it can be a great way to force positive changes.

When I’m in Asia I usually wake up, work out, find a coffee shop or cafe and work for 4 hours. Then I use the afternoons/evenings to explore, meet up with friends, or do more work if I need to.

It gets me out of my normal routine, but also makes me think differently about how I spend my days and make me more productive in the process.

Here is the “office” where I went back and edited this post. If there are spelling errors, you can see why I was probably distracted.

7) Enhanced Access

Like I mentioned, it’s easier to make contacts and meet expats and travelers when you’re in Asia. But what about those top tier people that you’d normally never have access to?

It’s much easier abroad.

Imagine trying to meet Donald Trump in the United States. Probably never going to happen unless you have dreams of reality television.

Simply by speaking English and engraining yourself in one city for 6-12 months you’ll be amazed by who you’ll meet. In BKK I met CEOs, 8 and 9 figure entrepreneurs, and high level political contacts.

If you’re ever looking for funding or to expand beyond a standard lifestyle business, these contacts can be invaluable.

8) Ever Wanted to Live Like a King (or Queen)?

It’s easy to focus on the low cost reasons to come to Asia when you’re starting out.

But whats cool is once your business starts to have even a little bit of success, your lifestyle can ramp up quickly. Bottles in the club? 5 star restaurants? Infinity pools over looking the ocean?

You can have access to all of these things for a fraction of the cost of what they would be in Melbourne or Venice Beach.

A little bit of money goes a long way, and then add on top of that the fact that you’re the anomaly. You’re the one who doesn’t fit in, and who will garner attention. It’s a unique feeling, but one that can allow you to thrive and want to work even harder to continue the success.

A basic room here is under $200 a night. Not exactly backpacker status, but less than half of what you might see similar rooms elsewhere.

9) The Opportunity for a Fresh Start

Many of the people I work with have been beaten down by their jobs and routines. Years of complacency and sleep walking through life can take it’s toll.

Coming out to Asia gives you an opportunity to start fresh. It can take you from jaded to wide-eyed in the time it takes to travel across the Pacific.

For me it was a rebirth. Coming to Asia and having an adventure while building my business, allowed me to truly build the business I wanted and continue that sense of excitement long after I moved back to the United States.

10) The Stories

This one is simple. I judge my success in life by the number of amazing stories I have to share. Why fly halfway around the world to get wedding suits made, when there’s a perfectly fine Mr. Formal, down the street?

Yes, we flew halfway across the world to come here. Can’t go too far wrong with custom tailored suits for $100.

Because a week wandering the streets of Vietnam is much more memorable and story worthy than a quick trip to a strip mall.

As you can see, there’s more to Asia than just a cheap cost of living. The elements of adventure, access, and bustling startup scene make moving there a viable option for someone committed to making things happen.

Source: Sean

Da Lat coloured with pink prunus cerasoides blossoms

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Thousands of prunus cerasoides cherry trees in the Central Highlands city of Da Lat are in full bloom with pinkish-white blossoms, creating a magnetic attraction to the locals and visitors.

Pinkish white prunus cerasoides blossoms are bringing about dreamlike scenes across the city which will be a favourable condition for the city to hold the prunus cerasoides blossom festival in late January.

Visitors flock to prunus cerasoides cherry trees to take photos

Fascinating and delicate petals

Youngsters are eager to pose for a photo under prunuscerasoides cherry trees

Da Lat is tinged with beautiful pink prunus cerasoides cherry blossoms

The city becomes busier with visitors coming to enjoy prunus cerasoides blossoms

Pinkish white blossoms creates a romantic space across the city

Prunus cerasoides cherry trees are seen along many streets in the city

Source: NDO

Co-living and green: the latest trends to sweep Vietnam’s real estate market

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From co-living spaces to smart offices, these are the new trends that promise to change Vietnam’s property market in 2018.

Owning real estate will no longer be a priority for millennials across the world, who will make up half of the global workforce by 2020, according to PriceWaterhouseCooper’s latest Millenials at Work report.

The latest trends in real estate development show that environmentally-friendly and smart co-living and co-working models promise to change Vietnam’s property market in 2018.

Co-living

Shared accommodation is forecast to be the leading trend, as co-living and co-working spaces are becoming more popular among young people. A recent report on Global Market Perspective by Jones Lang LaSalle Vietnam shows that the main target for shared accommodation is young people, and investments have started pouring in.

Many co-working spaces have opened in Hanoi over the past few years. Photo courtesy of Toong co-working space.

Just last year, Ascott Limited, an international serviced residence owner-operator, introduced a new co-living brand called Lyf (pronounced “life”) which is designed for and managed by millenials who wish to experience local life.

Shanghai, Tokyo, London and Paris are forecast to be the cities where demand will rocket to satisfy the increasing need for co-working space among both transnational corporations and startups.

Green and smart offices

Inside Deutsches Haus HCMC. The building is smart, modern and energy-saving.

Green offices have been popular in Vietnam for the past two years, but demand has only recently started increasing for offices that are both green and smart, especially in Saigon.

According to a representative from JLL Vietnam, Deutsches Haus, located in HCMC’s District 1, pioneers the trend for smart-green offices. The building is designed to save energy and integrates the latest German technology.

Real estate experts say that this building is the first in Vietnam and among the few in Southeast Asia to be awarded both a silver DGNB Certificate for a sustainable, green building, and the LEED Certification (Leadership in Energy and Environmental Design).

The market for smart-green offices is forecast to expand in Saigon’s golden areas such as District 1 in 2018.

The rise of homestays

The condotel or hotel-condo, a form of hotel that offers short-term rentals, will face major competition in the real estate market in 2018, forecast Phan Cong Chanh, CEO of Phu Vinh real estate company.

Homestays, garden houses and co-living spaces will be more favored and will be the new trend in 2018.

Homestays are becoming more popular in big cities such as Hanoi and Saigon. Photo courtesy of Le Bleu homestay.

Homestays or similar forms of lodging have already appeared in tourist areas such as Hoi An, Sapa and Cu Chi, but on a small scale, Chanh added. But their popularity and investment in them is likely to rise in 2018.

Though less fancy compared with condotels, homestays and garden houses are legally managed and more tourist-friendly. The low management costs are also beneficial for both customers and investors, Chanh said. Homestays will add more variety to the real estate market, and promise sustainable profit returns of about 6 percent per year.

Ho Chi Minh City was ranked third in a survey of 50 cities worldwide for property rental growth by a survey conducted by real estate firm Savills released in late 2017. Vietnam’s southern metropolis was also ranked fifth in terms of investment prospects, and second for development prospects.

Source: Vu Le

There’s A ‘Mr Bean’-Themed Bar In Vietnam And It Sounds Seriously Weird

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Whether he’s getting his head stuck inside a turkey, redecorating his flat by using fireworks or leading an orchestra at the London Olympics, Mr. Bean’s brand of comedy has people around the world in stitches for years.

Well, it seems that someone in Vietnam is so obsessed with Rowan Atkinson’s comic creation that they decided to dedicate a full bar to the bumbling character.

Russell Eslamifar, a tourist from London, was on holiday in the Southeast Asian country and exploring the Old Town district of the city of Hội An when he discovered the Mr Bean Bar.

Credit: Russell Eslamifar

From the outside, the bar looks like a typical tourist boozer with house music banging from the speakers and lights flashing fast enough to give you an epileptic fit.

Inside, though, the bar is obsessed with all things Bean, with the character’s gormless mug gurning down at you from every wall.

Not only is the bar decorated with murals and press shots of Bean and Atkinson, it also shows Mr Bean episodes on TV and sells Mr and Mrs. Bean themed cocktails.

Like any place looking to make cash from gullible tourists, the bar even lets punters leave with a memory of their visit, selling novelty t-shirts reading ‘It’s bean a good night!’ Creative genius…

Credit: Russell Eslamifar

“The only funny thing was how excited I was!’ Russell told LADbible when asked about the bar. “There weren’t many locals in there but mainly tourists go.”

“They obviously know it’s a good tourist pull,” he added. “Mr Bean is universal, isn’t it? He doesn’t speak so everyone loves Bean.”

Russell clearly loved the boozer, although he admitted the themed cocktail wasn’t that great, despite it setting him back 200,000 Vietnamese dong (£6.44, $8.82). Gutted.

‘[The cocktail was] pretty shit, tbh,” Russell said, like any LAD who is full of regret when checking his bank balance the day after the night before. “I ordered it purely because it was a Mr. Bean special.”

Credit: Russell Eslamifar

While Russell left the Mr Bean Bar with a lighter wallet but full of… well… beans, other punters seem to have been less impressed, with the bar getting a bit of a mixed review online.

Over one hundred people have reviewed the bar on Trip Advisor, with most of the reviews veering wildly between a fantastic 5 stars and a totally tragic 1.

The reviews for Mr Bean Bar are decidedly mixed. Credit: Trip Advisor

We’ll let you decide if you want to get yourself over to Vietnam and visit Mr Bean Bar before it’s bean-and-gone… I’ll get my coat.

Source: Chris Ogden

Toyota and Honda suspend exports to Vietnam

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Toyota Motor and Honda Motor have suspended exports to Vietnam since the beginning of the year following the implementation of a rule that requires stringent checks on imported vehicles, a move viewed as protectionism by industry officials.

The new rule came into effect just as Vietnam finally eliminated its import tariff for automobiles from within the Association of Southeast Asian Nations from 30% on Jan. 1, two years later than other developed members of the bloc.

Toyota said on Tuesday that it has halted all production for export to the Vietnamese market. The Japanese automaker manufactures locally in Vietnam, but imports from Thailand, Indonesia and Japan account for around one-fifth of what it sells in the market, or 1,000 units per month. Models imported include the Hilux pickup trucks, Yaris subcompacts, sports utility vehicle Fortuner and the luxury car Lexus.

“The Vietnamese market slowed down last year clearly because consumers refrained from buying as they waited for the tariff removal at the end of 2017,” Toyota Motor Thailand President Michinobu Sugata told reporters in Bangkok.

Indeed, auto sales in Vietnam between January and November slumped 10% on the year to 245,000 units. “We were anticipating a big jump in 2018 but due to the non-tariff barriers set by the Vietnamese government we cannot export to the market at all,” he said.

The so-called Decree 116, announced in October, requires emission and safety tests to be conducted on every batch of automobile to be imported. In the past, only the first shipment of each model would be tested.

The Japanese Chamber of Commerce and Industry in Vietnam said one emission test could take two months and cost up to $10,000. “It will cause [a] huge waste of time and money,” it said in a statement addressing Prime Minister Nguyen Xuan Phuc in December.

The decree also requires all models to obtain a Vehicle Type Approval certification issued by authorities of the exporting country. VTA certifications are to show that the vehicle meets standards of the country it will be sold in and is normally issued by domestic entities of the importing country.

Since the decree was announced in October, the governments of major exporters such as Japan, Thailand and the U.S. have expressed concerns to Vietnam that it would become impossible for them to sell into the country. They have also suggested that the decree could violate World Trade Organization rules.

Source: Big Blow

Vietnam as Next Global Blockchain Hub – Vietnam Blockchain Week

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Vietnam will host Vietnam Blockchain Week – its first global conference dedicated to blockchain technology and development.

Blockchain’s Explosive Growth in Southeast Asia

Malaysian banks piloting blockchain payment systems, Singaporean incubators investing heavily in 4.0 technology startups, India putting land rights on blockchain and Indonesian regulators developing technology sandboxes – Southeast Asia is quickly establishing itself as a region eager to adopt, explore and innovate blockchain technologies. Vietnam is the latest country to gain attention for its potential as a major hub.

Why Vietnam?

Vietnam’s potential as a blockchain leader will be highlighted at the nation’s first major blockchain conference. The nation is one of the world’s fastest growing economies (6-7% growth per annum) with a young population (over 40% of the 95 million population are under the age of 24) that is hungry for blockchain and other 4.0 technologies. In 2017, universities across the country began offering exclusive blockchain courses and the motivated graduates along with Vietnam’s forward-looking and robust tech talents are exploring blockchain-driven innovations for the nation’s rapidly expanding technology and service sectors. Vietnam Blockchain Week will discuss impacts to these fields inside and outside the region.

Why Vietnam Blockchain Week?

Vietnam Blockchain Week will showcase the significant growth of blockchain in the country as well as the many involved companies, institutions and organizations. Two uniquely curated panel and presentation tracks will be available – one for business/regulators and one for developers. Key topics will include incubation efforts, how blockchain can impact the unbanked, global supply chains, digital payment systems and IoT. Blockchain’s role in Regtech will be highlighted, including discussions about blockchain regulations, government partnerships and compliance services. Special attention will also be paid to examining Vietnam’s blockchain landscape.

Technology, regulation and development experts from blockchain startups and major corporations from Vietnam and around the world will share their experiences, insights, and knowledge with more than 1,500+ attending professionals. Speakers include executives at Hong Kong Fintech Association, NEO, Hyperledger and National Payment Corporation of Vietnam.

Vietnam is in a rare position to leapfrog to the front of the global blockchain community and this conference will provide a revealing survey of its future impacts.

Source: Globe Newswire

Vietnam’s labour laws: What you need to know

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Are there any legal differences between hiring an expatriate and a Vietnamese worker?

An expatriate worker must have a work permit to work in Vietnam (although there are some exceptions). Also, if an expatriate works with a contract of longer than three months, they must have statutory health insurance. All local workers are subject to social, health and unemployment insurance.

Has the increase in foreign businesses and workers affected labour laws?

The government has made it harder for expatriates to obtain work permits and work visas. The process is generally longer than it used to be, too. Theoretically, expats are only supposed to be doing jobs that Vietnamese people wouldn’t be able to do.

What’s the biggest issue employers face when it comes to labour laws?

Most labour disputes are centered around wrongful termination. In other countries, like the United States, it’s easier to fire an employee for poor performance. In Vietnam, if an employer gets angry at an employee and fires them on the spot, that’s unlawful termination. There’s a specific set of procedures that needs to be followed. It’s always best if both parties agree to amicably part ways if possible. If you’re an employer and want to terminate a labour contract, it’s safest to discuss it first with a lawyer.

If an employee believes he or she has been wrongfully terminated, what can they do?

Generally, when a labour contract is breached by an employer, the employee may directly send his or her contract-related demand to the employer for remedy or request help from the trade union. The employee may also terminate the labour contract, make a complaint against the employer to the labour authorities or bring the dispute to a labour mediator or to the court. An employer who breaches a labour contract will be, depending on the seriousness of the situation, subject to paying compensation and reinstatement of the rights and benefits of the employee, and may face an administrative penalty.

What advice would you give to somebody starting a new company in Vietnam?

The most important thing is to have a good labour contract that clearly outlines the rights of both the employee and the employer. And how well do you really know someone when you hire them? If the business relationship doesn’t work out, the legal ramifications can be severe. It’s best to start with a probationary period and then a one-year fixed term contract before signing a permanent contract.

Just the Facts

Working Hours	– Usually 8 hours per day, 48 hours per week.
Overtime	– Should not exceed 50 percent of regular working hours per day. – The worker is paid 150 percent of salary on normal working days, 200 percent on scheduled days off, and 300 percent on public holidays.
Minimum Wage	– Depends on the region. As of 1 January 2017, the minimum wage in HCMC is VND 3.75 million per month.
Vacation Time	– An employee in normal working conditions is entitled to at least 12 vacation days per year.
Sick Leave	– A local employee is entitled to sick leave allowance from the social insurance fund if the employee provides documentation from the healthcare provider proving just cause.
Maternity Laws	– The mother is entitled to six months of maternity leave. – If she gives birth to more than one child at a time, she can take one additional month for each additional child. – If a woman is in her third trimester of pregnancy, she is not permitted to work at night, work overtime or take business trips. – A female employee can’t be subject to labour discipline while pregnant, during maternity leave or while nursing a child under 12 months old.

As with most laws and regulations, loopholes and exceptions abound. Be sure to consult a lawyer before making any legal decisions.

Source: Keely Burkey

JD.com to be one of Tiki’s largest shareholders

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China’s JD.com Investment today announced that it will become one of Tiki’s largest shareholders after its strategic investment in Vietnam’s leading B2C e-commerce platform.

Under the plan, JD will partner with Tiki in a range of areas including merchandising, cross-border trade, logistics, technology, financing, and operational capabilities.

Son Tran, Tiki’s founder and CEO, said that, “We are delighted to partner with JD.com, China’s most trusted online retailer, as we enter a new phase of growth.”

“JD and Tiki share the same business philosophy: to win market share by winning consumers’ hearts. Since inception, Tiki has always focused on providing best-in-class, authentic shopping experience and amazingly fast delivery. We believe that JD.com, with its proven track record in superior user experience, procurement, logistics, and technology will be an invaluable asset for Tiki as we work to become Vietnam’s top e-commerce platform,” he said.

JD launched its Indonesian business in 2015 and formed a joint venture with Central Group in Thailand in 2017. With its investment in Tiki, JD adds Vietnam to its growing presence in Southeast Asia. JD’s latest move is aimed to battle the increasing presence of Alibaba and Amazon in the regional market.

JD.com is both the largest e-commerce company in China and the largest Chinese retailer by revenue.

Before JD.com, Tiki received investments from VNG, Seedcom, Sumitomo, and CyberAgent Ventures to fuel its growth. According to Statista, the value of the Vietnamese e-commerce market reached $2.1 billion in 2017, up 16.7 per cent year-on-year. The market value is expected to reach $3.7 billion in 2020.

Source: Thanh Van

Vietnam an ideal destination for foreign startups

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Việt Nam has become an ideal location to start a business, not only for young overseas Vietnamese people but also for expats thanks to the country’s strong economic growth in recent years.

Việt Nam has had many programmes that have helped create a dynamic startup ecosystem by facilitating a wide range of supporting activities, such as training, mentorship and business incubation and acceleration.

Nguyễn Xuân Bằng, one of the founders of Gcalls in Singapore and has come back to Việt Nam since 2016 to start the business here with an aim of developing the company’s product in the Vietnamese market, said that startups get benefits from these programmes.

“Startup Vietnam Foundation, for instance, helps Gcalls connect with mentors, investors and customers. We also have been guided in how to develop our business,” Bằng said, adding that Gcalls has joined business incubators and startup centres under Việt Nam National University-HCM to get more assistance from their experts.

Gcalls develops infrastructure and software for a web-based call center. The startup’s software breaks down communication barriers between buyers and sellers. It allows anyone to buy on any e-commerce site regardless of connection speed. in December 2017, the company received a promised investment of US$1 million from Vina Capital through Shark Tank Vietnam, a reality television show designed to help startups locate funds.

Loic Gautier, who works with Pierre-Antoine Brun from France to set up Leflair in 2015, a shopping destination for premium brands in Việt Nam, said: “Over the past few years, Việt Nam’s Government has been putting a lot of efforts into supporting startups.”

“I have seen a lot of communities gathering entrepreneurs and sharing practices on how to build a company, which reflects the strong entrepreneurship of the Vietnamese,” Gautier said.

Moreover, the country has had financing programmes to support the growth of new companies. Việt Nam’s Government is also committed to building a fair and competitive business environment.

Gautier, Leflair’s CEO, said that Việt Nam’s Government has also made efforts to promote online shopping.

“We chose Việt Nam because e-commerce here was under the radar and only nascent. The demographics and internet penetration numbers were a perfect fit for fast adoption of a service like ours, and coupled with a large amount of consumers frustrated with the lack of shopping options and product offerings when it comes to brands, it looked like the perfect base on which to build Leflair,” Gautier added.

Following the flash-sales model that has proven to be successful in Europe and China, such as Vente-privee.com and Vip.com, Leflair provides its customers with limited-time only deals of premium brands discounted up to 70 per cent off the retail price.

After two years in operation, the website now has over one million in monthly traffic, 700,000 members and partners with 1,100 local and international premium brands. To date, Leflair has successfully closed three rounds of funding and attracted top foreign investors, including Google’s vice president for India and Southeast Asia Rajan Anandan.

Most of them are first-time investors into Việt Nam, he said, adding that more and more investors are eager to invest in Vietnamese startups.

However, the legal and administrative environment, for example, lags behind the specific needs of fast growing companies who often find themselves trying to move fast in a rigid system still dominated by slow procedures, Gautier said.

A simplification and digitalization of financial, tax, legal and administrative procedures, as in a country like Singapore, would be greatly beneficial to startup companies and entrepreneurs, he added.

Moreover, “Our difficulties mostly revolve around attracting enough talent in a very scarce market. To build a large business, especially in a new field such as e-commerce, we need a large number of people with a level of technical knowledge and skills that are still relatively new in Việt Nam,” he added.

Nguyễn Xuân Phú, chairman of Sunhouse Group’s management board, which is an investor in the Shark Tank Vietnam programme, said that as Việt Nam develops, it should be easy for startups to earn profits. However, they should be careful.

Due to economic cycles which are the natural fluctuations of the economy between periods of expansion (growth) and contraction (recession), they may not have a lot of experience and it be difficult to manage during a downturn.

Phạm Thanh Hưng, vice chairman at CEN Group, which is also one of the investors in the programe of Shark Tank Vietnam, said that the foreign startups and those who study abroad and start up businesses overseas have many strengths, including more practical ideas for business and the way to develop this idea into reality professionally.

Source: VNS

Vietnam Is Following The Asian Tiger Currency Formula For Rapid Economic Growth

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In April, 2016 Vietnam installed its youngest-ever governor of the State Bank of Vietnam (SBV), the 45-year-old Le Minh Hung (now 47). A Japanese-educated economist with close connections to the IMF and Asian Development Bank, Hung seems to be on a mission to build the SBV’s foreign currency reserves. Sitting at a then-record $40 billion when he took office, Hung has since built the SBV stockpile to nearly $55 billion at the end of last week.

Hung’s success comes on the back of three small devaluations in 2015 that had raised fears of further declines and prompted ordinary Vietnamese to hoard US Dollars as a hedge. Dollarization is potentially damaging to a developing economy because is sterilizes much-needed investment capital while at the same time limiting policy flexibility.

The SBV seems to be taking advantage of the devalued Dong to buy Dollars on the bounce. With the Vietnamese economy booming and foreign investment pouring in, the Vietnamese Dong faces strong upward pressure. A politically weak central bank might cave into political pressure to let the currency rise. Hung deserves credit for leveraging the opportunity to improve the SBV’s reserve position instead.

Building reserves is the right course for an export-oriented economy like Vietnam. Japan and the four Asian tigers (South Korea, Taiwan, Hong Kong, and Singapore) pursued the same strategy in their periods of rapid growth. An then there’s China.

China let its currency slide throughout the first fifteen years of the reform era, a time when it experienced rapid but volatile growth. But on January 1, 1994 China made one big, final devaluation to shift the Renminbi from an overvalued to an undervalued position. The People’s Bank then let the currency slowly but consistently appreciate for the next twenty years as it built up a $4 trillion reserve position, the largest the world has ever seen.

A reputation for a stable and slowly appreciating currency is the best asset a developing country can have. It attracts foreign investors by giving them confidence to invest for the long term with the assurance that they can always get their money out at a later date. It also persuades local investors to keep their money inside the country rather than send it abroad for safety.

A stable but consistently undervalued currency has the extra bonus that it acts like a pro-poor progressive income tax. It penalizes the rich people who disproportionately buy imported goods while sparing the poor, whose consumption consists almost entirely of local products like food and shelter.

A low-currency strategy for export-oriented growth is extraordinarily easy to implement, at least from a technical point of view. All the disciplined central banker has to do is sell the currency whenever it looks likely to strengthen.

Most developing countries fail because wealthy constituents prefer a strong currency — so they can buy imported luxury goods, take overseas vacations, and get their money out of the country at the best possible rate. That chokes off growth and generates instability. Countries with overvalued currencies ultimately find themselves calling on the IMF for emergency funds when the bubble inevitably bursts.

If Le Minh Hung and the SBV are able to stay the course with an undervalued but slowly appreciating currency for twenty or even thirty years, Vietnam has every chance to become the long-awaited fifth Asian tiger. With China stagnating at middle-income levels, Vietnam could surprise everyone to leapfrog ahead by mid-century. That’s not a prediction, but it is a possibility. The pace of change in Asia is legendary, and Vietnam is increasingly the country setting the pace.

Source: Forbes

Meet the 20-yr-old ‘hero’ who scored Vietnam’s historic win at U-23 Asian Cup

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‘I respect all players but I’m not scared of them.’ – Nguyen Quang Hai

Vietnam’s matchwinner against Australia at the U-23 Asian Cup is determined to propel his team to become the first Southeast Asian nation to reach the quarterfinals of the tournament.

Nguyen Quang Hai, 20, scored the only goal of the game on Sunday, a result that shocked both Australian and Vietnamese fans.

Former Australian star Ned Zelic called his team’s display “disappointing”, while giving credit to Vietnam. Former striker and football manager John Kosmina said the Australian team lacked composure in front of goal, which is “a national disease”, Fox Sports reported.

Waves of support have flooded in following the result, which was the first time a Southeast Asian team had won an Asia Football Confederation (AFC) group stage game, earning Hai a lot of followers on social media and making him a “hero”.

At least that’s what his Vietnamese fans and local newspapers are calling him.

The midfielder is currently one of the five top scorers at this year’s championships with two goals. Hai also scored against South Korea last Wednesday.

Both goals were scored against major opponents, with South Korea finishing as runners-up in 2016.

“I always try to get onto the field feeling relaxed. I respect all players but I’m not scared of them,” Hai said.

However, he did admit to being “really worried” during the three added minutes against Australia. “It was too long for me and the team.”

When the match finally ended, he burst into tears, sitting by himself away from his ecstatic teammates.

“I’m very happy. But it’s hard to explain all my feelings right now,” he told reporters after the game in Jiangsu, China.

Hanoian Hai has been training since he was nine, and said he will need better focus to continue helping his team at the next game against Syria on Wednesday, their final group stage match before the quarterfinals.

If Vietnam wins, the team will be guaranteed a place in the quarterfinals, but if the match is a draw, Vietnam’s fate will depend on the result of the Australia-South Korea match.

The AFC U-23 Championship is a biennial international championship. 16 teams qualified for the finals of the tournament, and the top two teams from four groups will advance to the quarterfinals.

Vietnam made its debut in the tournament in 2016 but lost all their group stage matches against Australia, Jordan and the U.A.E.

Source: VnExpress