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 ?

Finally got to fly business class ?

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.

Bangkok Friends

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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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.

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

Vietnam’s logistics sector too expensive to compete with foreign rivals

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Local firms have to pay a variety of fees in Vietnam, explaining the high cost of their services.

Vietnamese logistics companies are growing in number thanks to strong imports and exports, but that does not mean the services they provide are becoming more affordable.

In fact, they are still more expensive than services provided by foreign firms, making them less competitive, according to experts, Nhan Dan (People) newspaper reported.

Data from the Vietnam Logistics Business Association (VLA) shows that the country’s logistics sector has been growing strongly at an annual rate of 15-16 percent.

Around 1,300-1,500 logistics firms are performing well in Vietnam, accounting for 80 percent of the total companies in the sector.

With the import-export industry developing positively, securing a total revenue of more than $400 billion in 2017, the highest since 2006, the logistics sector has considerable room for expansion.

In 2014, the World Bank ranked Vietnam’s logistics performance index at 53rd out of 160 markets. Two years later, the country dropped to 64th and stood fourth in Southeast Asia after Singapore, Malaysia and Thailand.

The cost of logistics services in Vietnam currently accounts for 25 percent of the country’s GDP, while the rate stands at only 9.5 percent in the U.S., 11 percent in Japan, 16 percent in South Korea, and 21.6 percent in China, said the Vietnam Chamber of Commerce and Industry (VCCI).

The cost of transporting a container from Hai Phong 120 kilometers (75 miles) to Hanoi using a local company is three times higher than what foreign firms charge to ship a container from China or South Korea to Vietnam, according to the VCCI.

Le Duy Hiep, chairman of the VLA, was quoted by Nhan Dan as saying that limited scale, capital, experience, management, high-tech application and staff are to blame for the high costs of Vietnamese logistics services.

Nguyen Thi Thuy Duong, director of Minh Nhat Co Ltd, a logistics company in northern Vietnam, said local firms have to pay a variety of fees not applicable to foreign companies in Vietnam, explaining the higher costs of their services.

The quality of staff in the domestic logistics sector is low, which makes it less attractive than foreign rivals, she said.

To increase the competitiveness of Vietnam’s logistics sector, she said the government should focus on staff training, increasing cooperation between different means of transportation and simplifying administrative procedures.

Source: Minh Nga

How Vietnamese Stand-up Comics Juggle Culture, Identity and Language on Stage

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As a fan of stand-up comedy, I was curious when I found out that there was a burgeoning scene here in Saigon.

I had already been living in the city for a few months after having previously spent time in Hue and a year in the Mekong Delta city of My Tho. I was curious to see what angles and takes on life comics in the southern metropolis would have. To me, stand-up comedians have always been some of the smartest, most well-attuned people, giving us original reflections on society and helping us to swallow the most unpalatable of truths through the gift of laughter.

Upon arriving in Saigon, it was hard not to notice the cultural divide that sometimes exists between expats and locals. I was braced to enter the stand-up comedy community and find another insular expat scene with comics making cheap gags about local customs and culture – I could almost hear Jerry Seinfeld’s voice in my head, “WHAT is the DEAL with TRAFFIC here? I mean, WHO eats NOODLES for BREAKFAST? WHO are these PEOPLE?”

Phuc, a 19-year-old law student, does stand-up as a reprieve from university life. Photo courtesy of Phuc.

Although I was a bit reticent at first, I had to find out what the scene was like for myself, and was pleased to discover a thriving community where both local and foreign comics from around the world are welcomed. The idea that stand-up comedy is not a tradition and is a relatively new phenomenon in Vietnam drew my attention to the local comics that make up the homegrown portion of the community. I wanted to find out more about them, what drives them and how their Vietnamese identities informed their comedy.

Phuc, who wishes only to go by his first name, is the youngest of the comics, and a bit of an anomaly. He’s a 19-year-old law student who has grown up in the city and works “blue,” meaning he covers adult subjects, which is a bit surprising for this self-proclaimed virgin.

He recently won third place in the Saigon International Comedy Competition and has the accent of a native English speaker, a Boston accent like that of Bill Burr, one of his main comedic influences.

“There’s nothing in university that clicks with me,” he shares with Saigoneer. “I don’t like the people in there. I don’t like what I learn there. People in law school think I’m weird, and I do agree with them. I’m very eccentric basically. I just do my own thing. I read articles and come up with jokes. I walk around the house doing my bits. It’s crazy. I just talk to myself. I have interests and hobbies that nobody else likes.”

When asked if comedy is a form of relief from tedium and the restraints of society, Phuc says, “Kind of! Although I also use comedy as a really good network, I’ve made very little money out of it. I don’t do it for monetary reasons. It’s an escape.”

I was reminded of something Bill Hicks, the iconic American dark comic who died in 1994, famously said about the cathartic nature of comedy: “It’s supposed to be a fucking catharsis, man. It’s supposed to be a release from the fucking daily grind. I wish it worked for me!”

Tu, a Hanoian who uses comedy as an outlet for the negativity in her life. Photo courtesy of Tu.

Tu, a young woman from Hanoi who also competed in the Saigon International Comedy Competition and shared first place, finds that this practice of purging negativity through stage performance is beneficial.

“I think it’s working!” she claims. “I have a healthy outlet to vent about what I’m thinking, or what I’m unhappy about, so I would say it’s working!”

Comedy and Family

A common thread among these comedians is that many seem to perform under the radar from their families. Uy Le, another local comic who shared first place with Tu at the aforementioned competition, says his family doesn’t know what is in his act.

“They don’t understand English,” he explains. “They’ve told me that they want to come, but I don’t really want them to, even if they understood what I was saying.”

Tu shared similar sentiments. “My father doesn’t know what I do. I sort of want to tell him. He doesn’t understand what this is. If I say that I dance or sing, it’s easy to understand. In Vietnam this kind of thing doesn’t really exist,” she says.

Meanwhile, Phuc’s family is a little less supportive: “My mom doesn’t think I’m funny. My mom doesn’t know any English. My dad knows a little bit.” Since his jokes lean towards the raunchy side, it should come as no surprise that he doesn’t tell his parents the same jokes he uses on stage.

In a way, participating both in the world of stand-up comedy and traditional Vietnamese culture seems to be a sort of balancing act that forces these comics to straddle multiple worlds and identities.

Comedy and the Vietnamese Language

The consensus among these three performers is that culturally, Vietnamese humor presented as entertainment differs from such humor in the west. Phuc elaborates: “In Vietnam, swearing and [talking] about sex is very taboo, and the language is designed in such a way that if you talk about it, it’s very awkward. When you swear it’s different. When you talk about sex, it’s very weird.”

Uy, for his part, has found that performing in his native tongue is a challenge. “I tried doing stand-up comedy in Vietnamese, but I see myself censoring myself and telling jokes in a way that is less impactful because I feel like that’s more appropriate,” he says.

Of the Vietnamese sense of humor and the language, Uy explains: “The language is a bit indirect. Every joke that I have done in English, when I try to translate it in Vietnamese it sounds very crude. Also, the darkness, a lot of people don’t get. It’s kind of strange, the concept of going to a show and watching someone perform stand-up because [the audience] takes every word seriously.”

Comedy and Identity

Cher, a Viet Kieu comic from California, offers another perspective. She is a mainstay of the stand-up comedy scene in Saigon, exploring the Vietnamese identity onstage through her character Xam Khang Da Ho, a fictional Vietnamese local.

Cher is currently performing in Northern California, but she shared her thoughts on the local scene. “It’s a budding field [in] which we find ourselves with a distinct voice and point of view and narrative that is built in the context of how the country is developing, and the traditional historical views that have been relayed to us as Vietnamese, whether we are a part of a diaspora or we are native,” she explains.

The comic added that she feels a strong responsibility towards identity, while her on-stage persona helps her to explain this for audiences.

“In Vietnam these experiences aren’t heard very much, so my aspirations are not only that they are affirmed to foreigners so that they can understand a point of view that they may not have already seen, but so that they can connect in the ways that I’m able to with the local population,” Cher says. “I really feel [a] connectedness with many aspects of people who have not grown up alongside as Vietnamese, and it’s that love that is blood deep.”

Cher, a Viet Kieu from California, thinks that Vietnam’s stand-up comedy scene has so much potential to grow. Photo courtesy of Cher.

Although there’s a growing scene in Saigon and a strong contingent of Vietnamese comedians, most of the comics who spoke to Saigoneer said that they want to see more opportunities to perform, as well as more local representation on stage. Tu, the Hanoian, said: “I’d like to see more open mics, more opportunities to increase the number of our audience.”

Cher added: “Not to toot our own horn as an ethnicity or culture, but Vietnamese are some of the most funny fucking people I’ve ever met, and they’re not on stage! My hope is that whatever challenges they face that I understand and identify with, whether it’s poverty, education, or generational values and cultural pressure, that they have the courage with seeing these open mics, and saying I can do better than that idiot up there!”

Source: Jwyanza Hobson

Standard Chartered Bank ends 12-year partnership with ACB

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Standard Chartered Bank (Hong Kong) has ended its “12-year marriage” with Asia Commercial Bank (ACB), offloading its entire holding of more than 154 million shares in the Vietnamese bank.

The transaction was completed on January 9 for an undisclosed sum.

According to the Viet Nam Depository Securities Centre’s announcement, Standard Chartered APR Limited transferred 89.9 million, equivalent to 8.75 per cent of ACB’s capital, to Estes Investment Ltd and Sather Gate Investment Ltd.

Meanwhile, Standard Chartered Ltd sold 64.2 million shares, or 6.25 per cent of ACB’s capital, to three investment companies, including Boardwalk South Ltd, Whistler Investment Ltd and Estes Investment Ltd.

ACB’s shares are trading at some VND40,000 (US$1.75) a share on the Ha Noi Stock Exchange, which valued the sale at about VND6 trillion ($263.2 million).

In mid-2005, Standard Chartered spent $22 million to acquire 8.56 per cent of ACB’s capital and upstake holding to 15 per cent in July 2008 for an additional $135 million (excluding the money to purchase ACB’s convertible bonds).

At that time, ACB’s shares were valued at VND68,000 a share.

In the bank’s annual shareholders’ meeting in April 2017, Standard Chartered officially confirmed its plan of divestment. Earlier in March 2016, it withdrew two representatives from ACB’s management board.

The foreign bank had explained it was under pressure to cut costs after suffering losses from emerging markets.

There seems to be a trend that foreign banks are withdrawing investment from local banks.

In the early days of 2018, BNP Paribas offloaded its entire stake of 18.68 per cent in Orient Commercial Bank (OCB), ending the 10-year alliance between the two banks.

Unlike OCB, ACB demonstrated strong performance, with consolidated profit of more than VND2 trillion by the end of September 2017, up 60 per cent year-on-year. Its share price climbed 76 per cent in 2017.

Source: VNS

Vietnam to work with Mitsubishi Motors on electric vehicle R&D

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Vietnam is set to partner with Mitsubishi Motors on research and development of electric vehicles.

The country is looking for help nurturing its auto industry, while the Japanese company hopes to gain a slice of the nation’s market for environmentally friendly vehicles, one that is expected to grow in the future.

Mitsubishi appears to be considering local production.

Vietnam’s appetite for cars is growing as its middle class class expands. But the increase in air pollution from cars and coal-fired thermal power stations is forcing the government to pin its hopes on electric vehicles, which cause less environmental damage.

The Vietnamese Ministry of Industry and Trade and Mitsubishi Motors will sign a memorandum of understanding on Monday afternoon. The two will jointly study electric vehicles deemed suitable for Vietnamese roads, traffic conditions and available charging infrastructure.

Prior to the study, Mitsubishi will supply Vietnam with the Outlander plug-in hybrid vehicle.

In Vietnam, electric and hybrid vehicles are rare. But since the country has a 200-plus-volt system, it is easy to charge the vehicles at home, according to both the government and Mitsubishi. Because of Vietnam’s narrow roads, the government thinks Mitsubishi Motors’ compact electric vehicles, such as the i-MiEV, are a good choice.

Vietnam Electricity recently opened the first charging station in the central Vietnamese city of Da Nang. Vingroup JSC, the country’s leading real estate company, which has been working to produce the first national vehicle, is also developing an electric vehicle.

Vietnam aims to become a leading industrial nation by 2020, with the auto industry slated to be one of its main pillars. New auto sales fell by 10% year-on-year to 272,750 units in 2017 from a record 300,000 units in 2016.

The sharp drop was attributed to the abolition of import tariffs in January 2018.

But the wealthy and the middle class are buying more cars. The Ministry of Industry and Trade expects new auto sales to more than double to 600,000 units annually in 2025.

Source: Nikkei

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