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Do you dare to enjoy Hanoi winter gift: Sandworm?

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Annually, since late October, the Hanoians begin to look forward to the cuisine “rươi” – one kind of sandworm which can please the most picky tongue.

In fact, the sandworm has two seasons, which is around April, May and September, October. In particular, the second sandworm season is considered to be the most popular season. It’s easy to understand, because sandworm in this time is usually fat and tasty.
Therefore, looking forward to every sandworm season has become a habit of the Hanoi people from ancient to present.

“Rươi” – sandworm when alive

Ând “rươi” cooked in Vietnamese way

Among the long list of sandworm dishes, most popular certainly include the sandworm sausages and spring rolls.
Sandworm sausages is almost the most popular, which is a mix of sandworm with finely chopped meats, eggs, tangerine peel then added spices. Next, fry the mixture over a low heat.
It must be dipped with sweet and sour sauce, some green papaya and green vegetables.
Another preferred one is sandworm spring rolls
Sandworm rolls are somewhat more complex than sausages. Sandworm will be mixed with meat, eggs, carrots, onions, mushrooms and tangerine peel …, all should be cut into small pieces as in normal spring rolls. Mixed ingredients will be wrapped in rice paper rolls and fried in hot fat pan.

Sandworm is very delicious and rare

Because the sandworm is delicious but rare, today people have tried to keep the sandworm in many ways to be eaten all year round. In the past, grandparents made roasted sandworm, using a pot of lined banana leaf, roasting and puting it in a sealed container and served with fresh vegetables, however this method is now rarely used.
Now, the simplest way is to keep in the freezer compartment of the refrigerator, or more carefully, people make sandworm sauce and eat with boiled meat.
In Hanoi, if one can not afford to buy sandworm for home-made processing, they can come to some restaurants in Hang Chieu, Gia Ngu or Lo Duc street.
Some popular address for sandworm dishes in Hanoi
1. No. 1 Hang Chieu Street
2. 25 Gia Ngu Street
3. 244 Lo Duc Street

Source: Tu Anh

Vietnamese cuisine has much more to offer than ‘phở’ and ‘bánh mì’

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While Vietnamese cuisine has become increasingly popular with global diners, with two of the most delicious being phở (beef noodle soup) and bánh mì (Vietnamese-style sandwiches), many foodies have said that Vietnam still has more stunning foods to taste.

One night in late 2017, Rachael Dickson and her younger sister Madeline Dickson were sitting on a bamboo chair at a restaurant in District 3, Ho Chi Minh City.

They were attentively listening to a tour guide explaining the components of bún bò Huế (spicy Hue-style beef noodle soup).

Eatable banana flowers

When the tour guide was twittering on the vegetables served with the soup, the two sisters could not conceal their surprise knowing sliced banana flowers were among the plants.

To these newcomers to Vietnam, everything seemed to be new, as what they had known about Vietnamese food were only phở and bánh mì.

Madeline Dickson (L, 2nd) and her friends watch the process of making Vietnamese bánh xèo at a small restaurant in District 3, Ho Chi Minh City on December 29, 2017. Photo: Tuoi Tre

“I even didn’t know they put pâté in bánh mì and had also never had so much fish sauce in my life,” Madeline Dickson excitedly told Tuoi Tre News.

Bún bò Huế was one of the ‘stops’ of the food tour that the Dicksons and their friends from the U.S. were taking.

At the previous stop, the group rode pillion and were taken by their tour guides on motorbikes to a small restaurant which served specialties from Phan Rang, a small town in south-central Vietnam.

Zachary Devaney, a member of the group, said Vietnamese cuisine was way different from what he thought he knew.

“I only knew about bánh mì and phở, but after coming here I was stunned by the diversity of foods here,” he said.

Chinese-American Jennifer Xue added that she learned a lot about local cuisine after she was told what were in her dishes.

“I like the combination of many flavors into a dish, like when we had bánh xèo [Vietnamese sizzling pancakes] with many kinds of vegetables and fish sauce,” she said.

According to Dao Xuan Thinh, a tour operator at Saigon Food Tour, which organized the food tour for the Dicksons and friends, his company places an emphasis on introducing dishes that have not been known very well in other countries.

The firm’s intention is to bring tourists a more diverse and authentic experience with Vietnamese cuisine, he added.

Foreigners learn to cook canh chua at M.O.M. Cooking Class in District 1, Ho Chi Minh City on December 28, 2017. Photo: Tuoi Tre

Meanwhile, South Korean Kim Joon Ha has had the opportunity to try Vietnamese food after his two visits to Vietnam in recent years.

In his third time in December, Kim spent time visiting a local family to cook and enjoy a daily meal with them.

The kitchen of host Tran Thi Minh Thao’s house in District 10 became more dynamic thanks to the appearance of Kim, who joined the Traditional Meal Tour organized by the Saigon Hotpot tourism club.

While learning how to cook some dishes that Vietnamese people often have daily, the man from the land of kimchi enthusiastically talked about the foods he tried in Vietnam, from mì Quảng (Quảng-style noodles) to phở bò, gỏi cuốn (Vietnamese spring rolls) and more.

He was also stunned to learn that some Vietnamese people believe that eating balut (a boiled, fertilized egg) can help reverse their bad luck and agreed to try one.

Thao, who has been a friendly host of Saigon Hotpot for years, was not hesitant to go straight to the nearby market to buy some such eggs and boiled them for him.

Kim admitted he really loved the experience which allowed him to see the “authentic” way that Vietnamese people have their ordinary meals.

“Vietnamese foods are very famous in Korea but people only know about phở. I also know some dishes but I’m curious about what Vietnamese people truly have in their meals daily,” Kim told Tuoi Tre News.

The sweet and sour soup

Many food lovers also want to try making the Vietnamese dishes they love.

Despite their short stay in Vietnam, they spent time in some cooking classes that make their dream come true.

Three rolls of cuốn diếp, a delicacy from northern Vietnam. Photo: Dong Nguyen/Tuoi Tre News

At a session to teach how to cook canh chua (sweet and sour soup), a kind of soup popular in southern Vietnam, by M.O.M. Cooking Class, Tennessee man Brad Howell and his wife carefully observed the chef when he was preparing such ingredients as garlic, tamarind sauce and all the herbs for the soup.

“Is this a popular soup in Vietnam?” Howell added, before to getting the answer that the soup as a favorite of southerners.

“This is fantastic. We did not only learn how to cook but were also taken to a local market where we met local people,” the man said.

Meanwhile, Kayla Lake from California said she got used to Vietnamese foods since she was young, as she has lived in a neighborhood with some Vietnamese people.

That is why she was eager to learn how to cook a Vietnamese dish.

However, the young woman was surprised when she came to Vietnam and discovered the diversity of foods after she were shown more than 10 different types of noodle.

Also joining the class, Korean Jay Park and his wife were impressed with the amount of vegetables, especially herbs, used for the canh chua.

“This is the first time I’ve cooked this and I’ve realized that in only a short time, we could still make such a dish with rich flavors,” Jay said.

M.O.M. Cooking Class founder Nguyen Dinh Le Hoa said besides explaining the ingredients that Vietnamese often use, his cooking classes also offer a “modern” version of each dish when showing his learners the way to replace some Vietnamese ingredients they might not find back home.

One of the oldest cooking classes for foreigners in Ho Chi Minh City, the Vietnam Cookery Center in District 1 was where American Miriam Guzman and her fiancé came to learn to cook phở bò, cuốn diếp (mustard green rolls) and gà kho (stewed chicken).

Before carefully putting all the spices into her clay pot of chicken, Guzman and her fiancé Gaurav Ajmani tried to tie their rolls with boiled scallions.

Gaurav Ajimani and Miriam Guzman from Chicago learn to make cuốn diếp at the Vietnam Cookery Center in District 1, Ho Chi Minh City on December 28, 2017. Photo: Tuoi Tre

Guzman said food was one of the main reasons that urged the couple to visit Vietnam, adding that they love foodstuffs of diverse flavors and vegetables so Vietnamese dishes became their top choice.

According to Le Dang Khanh Linh, a representative of the Vietnam Cookery Center, the class menus are designed to showcase the diversity of Vietnamese cuisine through the foods from north to south.

Source: Dong Nguyen

Uber, Grab under tighter supervision

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The Ministry of Transport has submitted the draft of a new circular that includes regulations for passenger transport (by car) through software such as Uber and Grab.

“Adjustments in the new circular would like to balance the management of passenger transport with electronic contracts through software such as Uber and Grab and traditional taxis as well as to be appropriate with the demands of practical management,” Minister Nguyen Van The told the Tuoi Tre (Youth) newspaper.

The new circular will request transport companies to meet 10 conditions, including: having a business licence or business registered certification to do electronic business and having certification from the Ministry of Industry and Trade (MoIT) confirming that applicants have completed registration (both Uber and Grab haven’t met this requirement yet).

Importantly, software providers must sign contracts to provide software using services for transport companies that have transport licences instead of the current cooperation agreements.

Transport companies must display their logos at a minimum of 90mm x 80mm in both front and back windows.

To ensure tax collection, the circular clearly states that software providers and transport companies must provide all information related to trips and electronic bills to both the passengers’ accounts and the General Department of Tax (GDT), under the regulation of the Ministry of Finance.

For enterprises who would like to use electronic bills, the circular requires 11 conditions, including using software which has already been certified by the MoIT, sending electronic bills to the GDT and providing telephone numbers to customers for emergencies.

Cars under nine seats, which are used for electronic-bill transportation, must not be more than 12 years old, same as the regulation for traditional taxis.

“The presence of Uber and Grab has provided commuters with more options and convenience and local authorities with more management experience. However, there remains a lack of specific conditions for them to operate, thus leading to unfair competition”, Vu Anh Tuan, Director of the Viet Duc University’s Transport Research Centre, told the newspaper.

“If they want to continue doing business after two years of a pilot scheme for ride-hailing apps in Vietnam, Uber and Grab should have a legal representative, pay tax, report their activities, pay social and health insurance for drivers and foster the skills of their drivers,” he added.

He also suggested that local managers should limit Uber and Grab’s number of vehicles to ensure fair competition with traditional taxis and reduce traffic congestion.

According to the Ministry of Transport, the four localities that have registered to officially join the pilot scheme are Hanoi, Quang Ninh, Khanh Hoa and HCM City, whereas Da Nang has yet to take part in. Of 36,800 member vehicles, there are 21,600 in HCM City, 15,000 in Hanoi, 62 in Quang Ninh and 100 in Khanh Hoa.

In HCM City alone, Grab Taxi has more than 18,100 vehicles and Uber over 3,600 vehicles. The respective numbers of Grab Taxi and Uber vehicles in Hanoi are some 11,400 and nearly 2,400.

Source: Vietnamplus

7 Common Mistakes To Prevent When You Set Up Company In Vietnam

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There are many slips that may occur when starting a new company, especially in an emerging market. This article will give you some heads up on seven most common mistakes foreign investors make when they start to set up company in Vietnam.

#1 Thinking that a local partner is required for every type of business

The first misunderstanding regarding foreign investment companies in Vietnam is thinking that you must have a local associate. This is outdated and misleading information that a lot of agents in Vietnam still give to their clients.

In reality, you can set up a 100% foreign-owned company in a lot of industries. For instance, manufacturing, trading, consultancy, IT, etc. However, there are still some sectors that require you to have a local partner, for example, tourism industry.

You can register a local company quickly and easily, that is why many local agents recommend it. If you wish to transfer the ownership to you, you can do it later on. However, it has legal risks and might take just as long as to register a wholly foreign-owned enterprise in the first place.

#2 Using an unreliable nominee

Another common mistake that foreign investors tend to make when they set up company in Vietnam is getting into an agreement with an untrustworthy nominee. This might be the result of putting too much blind trust in your local friend or misbelieving that you need to have a local partner for every industry.

It may seem like a good idea at first, but it carries risks that you don’t immediately think about. Human relations can take bad turns or something might happen with your trustee. Divorce, marriage or death – all these cases can involve third parties who may have different intentions with your business.

However, this doesn’t mean that all nominee agreements are shady. The safest way would be to use a professional service company such as Emerhub instead of an individual nominee. We provide a nominee service where your rights will be protected through a set of legal agreements.

This set of legal agreements drafted by lawyers is the difference between using a local friend and having a professionally arranged nominee service. If problems arise, you will be protected by the agreements as the company ownership is pledged.

#3 Investing a wrong amount of capital into the company

There is no minimum capital requirement for most business lines in Vietnam. This means that you do not need to set a high capital in order to set up company in Vietnam as some other agents may advise.

However, the authorities will determine whether your capital meets the expected needs. So, it is important that your charter capital is sufficient to cover the planned expenses.

The amount of capital is not strictly set. It is not difficult to increase it later on if needed.

Also note that the minimum capital you appointed must be fully paid in within 90 days from the date of your company registration, as stated by the Enterprise Law.

Your minimum capital does not necessarily have to be a financial contribution. Other assets are acceptable as well, just make sure that you have an invoice for the corresponding product.

#4 Not asking for VAT invoices

Note that not every receipt is a VAT invoice. A lot of companies decline to issue VAT invoices if you don’t request for them before or on the same day of the purchase.

It is important that you ask for and to keep all the VAT invoices for expenses that you make before and after the company registration. These can be recorded as company expenses and you can claim them later on.

In addition, reclaiming proper VAT invoices can reduce the corporate income tax rate. If you don’t get a proper VAT invoice, you cannot use that VAT amount as income VAT.

Accounting-wise, you can also state non-VAT invoices as expenses. However, the tax office does not consider these as expenses and this will increase your corporate income tax rate.

It is also a good idea to make an agreement with landlords, contractors, etc., beforehand so they could issue VAT invoices after your company has been registered.

#5 Thinking that you don’t need to follow a regulation if no one told you about it

Another slip foreign investors are prone to make is not complying with local laws and tax reporting requirements. This will often happen due to not being aware of or not understanding the local regulations and will bring about unnecessary fines for the company.

You should also keep in mind that foreign-owned companies are usually under higher scrutiny. Therefore, it is even more important to comply with the regulations.

For example, quarterly compliance requirements include the declaration and payment of:

Value-added tax
Corporate income tax
Personal income tax

#6 Not planning enough time to set up company in Vietnam

As in many other developing countries, the process of incorporation in Vietnam takes more time than in developed countries. Setting up a legal entity in Vietnam can take up to 3 months. It includes the collection and submission of the founder documents.

Investors underestimate how long it takes to get all the supporting documents in order. Often the longest stage in the company establishment is getting the founder documents ready.

You also need to legalize these documents in the country of issuance. After that, you can submit them to the Department of Planning and Investment.

You can avoid the delay by preparing for your company registration in advance. Emerhub can help you prevent unnecessary setbacks by assisting you with collecting the relevant documents.

#7 You set up company in Vietnam when outsourcing is a more effective way to enter

Establishing a legal entity when entering a new market may not always be the most effective way to do it. If you set up a company in Vietnam only for the following purposes, we have other alternatives for you:

If the purpose of setting up a company in Vietnam is:	More cost-effective alternative
Hiring local employees	Staff augmentation
Sending and receiving invoices	Invoicing service
Importing	Undername import

Emerhub offers a variety of outsourcing services that will free you from acquiring licenses or setting up a company when it is not necessary.

Staff augmentation enables you to hire employees in Vietnam without any legal presence in the country. We will hire employees on our payroll and there is no need for you to understand local laws and requirements. You can focus on your core business instead.

Invoicing service lets you issue and receive invoices without incorporating a local company.

Understand import is the quickest way to start importing to Vietnam since there is no need to spend 3 months to get the necessary import licenses. When using our undername import service, all you need to do is provide us with some relevant documents and get started with importing to Vietnam.

Conclusion

All the above-mentioned mistakes are quite common when foreign investors set up company in Vietnam. However, you can avoid them with a thorough planning and preparation. Emerhub can help you out with that.

This article was originally published on www.emerhub.com.  

Author: Kerli Pärnapuu

Vietnam Business Culture: Conducting Business in Vietnam Successfully

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While Vietnam is a land of opportunities you need to have some level of understanding of the Vietnam business culture in order to unlock those possibilities.

In this article we point out most common ways on how to build good relationships with (potential) partners in Vietnam.

Understanding business culture in Vietnam

How to build trust in Vietnam

Take time to build up your relationships in Vietnam. While efficiency is important, the cultural aspect in Vietnam requires your attention and time. Get to know the person. In business as well as personal life, it is a strong benefit if you and your partner have mutual connections. A long lasting relationship is valued most.

Thus, do not expect to receive answers quickly or take any shortcuts when connecting with Vietnamese people. Your partner most likely takes time to get back to you on any discussed matter. In fact, foreign nationals often mistake politeness with positive answers, assuming big deals are on the way when in reality it’s just the beginning of the negotiation process.

Always keep in mind – show respect and genuine interest while staying humble. Overall, give time to your counterpart, to process their thoughts. However, make sure you keep a constant communication in order to build trust.

Communication in business environment

Confronting unpleasant topics is difficult for Vietnamese. Thus, they often avoid letting you know about their actual thoughts on business. Leaving someone in the dark is not their intention but actually the goodwill to avoid any conflicts.

The main agenda for Vietnamese is to determine who their partner really is. It is often that you will discuss topics from personal life; the more you learn how to share, the closer you become with your partner. Therefore, do not feel bothered about talking matters outside of business.

Nothing is actually impossible in Vietnam

Just like you shouldn’t take the first “yes” too optimistically you shouldn’t be too discouraged when you hear the word “impossible”. This usually means that you either need to work harder to build interest or your partner does not have a definitive answer (yet). Always try to dig deeper what the “impossible” actually meant and whether the challenges can be overcome.

To call or write an e-mail?

We have written another article about how to get business meetings with Vietnamese companies and it’s something we offer as a service on a regular basis to foreign companies.

As a rule of thumb – it is unlikely that your initial cold email gets a response. Vietnamese prefer doing business with people they know. For initial approach, it is good to follow up with a call after sending an e-mail. By doing so, the e-mail does not categorize as spam and the recipient knows how valuable doing business with them really is.

Try to get introductions or if that’s not possible at least try to get the direct contact of the person you are trying to reach. You should start by asking to meet with a person who has authorisation. If they agree, it is a sign of interest to conduct business with you.

“Keeping the Face” in Vietnam business culture

Vietnamese value person’s social standing, dignity and reputation, as well as honor. Seeing the combination of all these values in one takes time, and so will building your relationship. They need to trust you before actually showing their real thoughts and feelings.

In Vietnam you will realize how important gaining and retaining the respect of the partner really is. It is about either losing or saving face. As important as anything you and your Vietnamese partner are discussing is following both your facial expressions as well as body language. Even if the face of your partner says one thing, it may often mean the other.

Here are a few tips on how to build rather than lose face in Vietnam:

Give sincere compliments – this helps build the face of your partner. If appropriate, do not hesitate to give them meaningful credit
Politely draw attention away from yourself – compliments coming towards you give an opportunity to show your gratitude to previous teachers and mentors. Vietnamese appreciate the humility you have shown
Save the other from embarrassment – when an embarrassing situation lies ahead for your friend or partner, you have the opportunity to find a distraction and save them from losing face
Keep your promise – never promise something you can not keep as broken promises may lead you to lose face
Be silent if necessary – silence is common in Vietnam business culture and may occur during meetings. When one party disagrees with another it is sometimes wise to keep silent in order to avoid losing face

In conclusion, make your partner feel valuable. Yet, always maintain your integrity and humility. Never go as far as insulting your partner or losing your tranquility. Coming back from shouting and arguing is already troublesome.

Socializing in business atmosphere

Dinner on business

Talking about trust, your partner feels more confident about the cooperation knowing who is the person behind the suit and formal thoughts. Vietnamese are accommodating – let’s say you came to Vietnam for a business meeting, it is often that the host already has plans for you. Usually a dinner including several courses of food, as well as Vietnamese beer or imported wines.

Exchanging toasts is a part of the dinner, starting with the host. When toasting, you should stand up and direct your toast to the senior or oldest Vietnamese present. You are expected to host a dinner in return as well. Spouses are usually not included in Vietnamese business entertainment.

If the above is not the case for you, propose a dinner yourself and invite the partners for dinner. If the evening timeframe is not suitable, luncheon is also acceptable. Another way of bonding in Vietnam is having a few light drinks with your upcoming partners. Having drinks is rather common – just know your limits.

Doing business as a woman in Vietnam

When a western woman plans on dining with a Vietnamese man, the dining location should always be public. The woman should request upon hosting.

It is appropriate that a foreign businesswoman proposes dinner to a Vietnamese man, however she should also insist on paying for the meal. If the man is hosting, western woman should offer a meal of equal value in return.

Social etiquette in Vietnam

There are many norms in Vietnamese social etiquette that may differ from what you know from your home country. Below we bring out some of the examples that help you be more prepared. However, do not worry about crossing the line too much either – as a foreign national Vietnamese people will understand if you do not know all the rules. Showing a good attitude and respect is most important in any culture!

Social etiquette plays a huge part in Vietnam business culture, thus there are numerous ways how you can prove yourself to your business partner.

Greetings

Whenever you meet a Vietnamese friend or potential business partner, start with slightly smiling for a sign of goodwill. Smiling naturally every now and then brings out your truthful manners in both business and social atmosphere.

Handshakes are common when welcoming and saying goodbye in Vietnam. Xin chào is how strangers formally greet each other. When a woman extends her hand to you, you may shake it, otherwise bow your head slightly for greeting. Following the Confucian tradition, start with greeting the oldest person first. When meeting a group of people, always greet everyone, including children.

Sharing gifts

Giving gifts to your prospective business partners is not a must but it is common. Try not to overdo with the present itself. Something small and practical is appreciated.

Culture is important for Vietnamese so something from your hometown would be nice. For a business present, purchasing better items for senior partners instead of similar ones to everyone is a good sign. This way you show appreciation to seniority.

It is not always necessary to bring a present. However if you do, avoid giving sharp objects or handkerchiefs. The first is associated with separation and latter is a sad symbol of farewell in Vietnam.

Table manners

Always respect the elders and remember that the oldest person is seated first. When food is served, start off with using both hands when passing dishes. Note that being able to finish your plate is a sign of good behaviour.

Also, keep in mind that when served rice, one should never stick chopsticks vertically in the bowl. This reminds Vietnamese of death and the deceased. Also, it is rude to tap the chopsticks on the bowl or plate. This is what the beggars have done in the past.

In fact, what keeps you in the safe zone is making as little noise as possible with bowls, chopsticks and food. Avoid doing anything unnatural to adapt to the environment. If you feel curious about some served items and have a question, you are welcome to approach your host – a polite guest will always receive an answer.

Body language

Even when feeling affectionate, avoid hugging or kissing someone in public. You rarely see this in the streets of Vietnam. In addition to slightly romantic gestures, avoid touching other’s shoulder or their head (considered as the symbolic highest point in Asia). Books about etiquette refer to as much as touching a person of the opposite sex being impolite.

Keep in mind that it is a modern yet conservative country, traditions and customs are kept holy. Trust your common sense and continuously observe the surroundings.

This article was originally published on www.emerhub.com.

Author: Maarja Pehme

The world’s best start-up hubs: Ho Chi Minh City, Vietnam

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To Southeast Asia and Ho Chi Minh City (previously known as Saigon), where there seems to be a fascinating start-up culture unravelling amongst both Vietnamese natives and expats…

Population: 7.5 million
Pros: A unique start-up culture, great value, a good climate and a solid entrepreneur community.
Cons: The hiring process can come with many pitfalls, which may put your managerial skills to the test.
Cost: A real city for bootstrappers, getting your business up and running comes with limited overheads.
What to expect: A young, fast and vibrant country with a fierce work ethic and a strong motorbike culture.

“We all know about the Four Hour Work Week. What I’m seeing here on the front-lines and as a veteran of this movement is an evolution of that concept,” explains Jon Myers, a designer who has been embedded in the city’s start-up scene for some time now. “I see this evolution and the circumstances aligning that make all this possible – from the platforms we leverage to run our businesses, to the networks we plug into – on to the social acceptance of being a location independent entrepreneur as inevitable. The main signatures of this evolution, which I’m seeing is the nature and types of businesses people are starting, and the types of people themselves.”

Can you tell us a little more about the businesses which work well in Ho Chi Minh City?

They tend to resemble the scalable start-ups I’m more familiar with back in the states – and they don’t resemble the temporary, passive-income businesses mentioned in the FHWW. Further, another type of signature of this movement, which is worth noting – the type of people joining in. I’ve had designers that work at Apple – who thought they were living the dream, read my Medium article on the Saigon [Ho Chi Minh City] start-up scene and quit their job and turn up here in Saigon to work on their start-up.

The dim job prospects for college graduates has further fuelled the evolution of this movement. The A-Players who would have went on to work at Goldman Sachs are now turning up in hubs like Saigon, Medellin, Chiang Mai and so on – to work on their start-ups.

The old script of what we’re supposed to be doing is fading and we have the opportunity to write our own scripts.

What are the best aspects of doing business in Ho Chi Minh City?

While I don’t really “do business” in Saigon other than hiring local talent, I run my businesses from Saigon. Thus, the very best reason for being here is lifestyle optimization. Every single aspect of my life is optimized. From housing (you can easily get set up here in a serviced apartment in less than an hour – and that apartment will likely have internet that is 30MBPS down) – and on to the value of services – my entire household is managed for a very affordable fee, and on to the food – where I have a protein smoothie delivered 10 minutes after I wake up – to the prevalence of the motorbike culture, which makes getting around in the central business area a 10 minute ordeal and finally, and on to – getting to the gym – where there is a high-quality western gym where I can take care of myself.

All the things extra things I had to do that got in the way of my business back in New York, which are too expensive to get managed there – are done for me here for an affordable amount of money. The entrepreneur expat scene here is incredible. Just within my immediate peer network we have over 90 location independent entrepreneurs – all grinding on – their next big thing. Between being able to hire affordable staff to having my entire life optimized to tapping into the peer network here in Saigon, I can simply – get sh*t done and be inspired.

Finally, the people. 70% of this country is under the age of 30. It’s young, fast and fun here. I really love the people of Saigon. They remind me of New Yorkers. They are friendly with a healthy dose of scepticism coupled with a fierce work ethic.

What are the downsides to doing business in Ho Chi Minh City?

Like any developing country, you have people trying to take short-cuts to get ahead. This has been my experience in hiring. Then again, it’s your responsibility as an entrepreneur to identify those weak links, which are usually an indication of something that is a breakdown in your process.

How would you describe the business culture in Ho Chi Minh City?

I don’t know if I’m really qualified to comment on this, nor is anyone in my peer network qualified. We don’t get involved in the business culture, other than hiring. Most leverage locally and market globally. But, just in general – it seems to be the typical, more conservative blue button up shirt, khaki pants hierarchical type of business culture you see in corporate suburban America.

What are the costs of doing business in Ho Chi Minh City?

Saigon is for bootstrappers who want to go somewhere to put their head down, enter into building mode and crank out their product or business. One could easily live on $1,500 a month here and live a quite privileged existence in a city where modern meets old.

Local salaries for admins to coders range from $500 – $1500usd/ month. Thus, there are a lot of bootstrappers here in Saigon – and in general, the crowd here tends to be more serious and focused on execution.

What tips would you give to an entrepreneur thinking of starting-up in Ho Chi Minh City?

Know yourself well. What do you love, what do you hate. What irritates the crap out of you, what can you put up with and tolerate. Envision what your day to day looks like in x location, not what you occasionally do.

So, with this – you have to know yourself really well. You have to know what floats your boat on a day to day (the boring stuff) – hour by hour, minute by minute basis.

I like to occasionally go to the beach or take a motorbike ride into the mountains. I don’t want to do that every day and don’t care about the optionality to access it at my fingertips on even a weekly basis. There are drawbacks: It’s loud, there is pollution and it can be crowded. So, with Saigon and the prospective entrepreneur – know yourself well. Do the pros outweigh the cons?

Source: Virgin

Despite 2nd fastest wage bump in Asia, Vietnamese workers barely make ends meet

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Overtime is the only way some workers can afford to eat.

Asian workers are expected to enjoy the highest real wage rise in the world in 2018, thanks to a growing economy and changes in the region’s economic structure, the Nikkei Asian Review reported.

Vietnam is expected to see wage growth of 4.6 percent in 2018, making the country the second best performer in the region after India, according to a recent survey conducted by human resources company Korn Ferry, which tracks 20 million workers in 25,000 organizations in 110 countries.

Salaries in Vietnam are growing strongly as private consumption has emerged as an engine of growth along with manufacturing exports, even though concerns remain over the country’s rising private debts and signs of property market bubble, said HSBC.

Despite the sharp rise, average wages for laborers in Vietnam remain low, failing to meet their basic daily expenses.

The average wage for a laborer in Vietnam reached VND5.5 million ($247.7) per month in the last quarter of 2017, up 7.8 percent over the same period of 2016, according to the General Statistics Office.

“The pay is so poor. My monthly salary is over VND6 million, but after deductions for insurance, I make only a little of more than 5.5 million,” Nguyen Thi Chinh, a 30-year-old worker at a woodwork producer in Hanoi’s Quang Minh Industrial Park said.

Chinh, who left her home village at the age of 20 to work in the city, said workers in her factory earn much more than the minimum wage, but it is still not enough. She plans to leave her job and return to her family home.

In January, Vietnam raised the minimum wage by around 7.3 percent, equivalent to an additional VND180,000 to VND250,000 per month, the lowest nominal jump ever. The new monthly minimum wage now ranges from VND2.58 million to VND3.75 million.

In a recent survey conducted by Vietnam’s Institute of Workers and Trade Unions (IWTU), a third of the 2,600 workers questioned said their incomes were barely sufficient to live on, while 12 percent said their wages simply did not cover living expenses, forcing them to work extra hours.

Vu Minh Tien, deputy director of the IWTU, said 36 percent of laborers work overtime just to be able to afford an extra meal. “Their salaries are too low. Workers do not have enough money to pay rent or raise their children, so they have to work overtime just to be able to afford to eat.”

Another survey conducted by the global association for sustainability standards and social accountability ISEAL Alliance found that a wage of at least VND6.4 million ($290) per month could cover basic living expenses in Ho Chi Minh City. But, the average wage for a worker in the garment sector there is only VND4.8 million.

In Soc Trang Province, a worker needs at least VND3.99 million per month to cover basic necessities, but the average wage for a laborer in the seafood processing sector there is just VND3.2 million.

A Catch-22

Wages for laborers increase following minimum wage hikes set by the government. Businesses use the minimum wage to calculate salaries for their workers by multiplying the base level by a coefficient assigned to each worker, based on their skills and experience.

Vietnam has been raising the minimum wage every year since 2007, forcing local businesses and foreign-invested firms to raise their wages by an average of 21.9 percent and 15.2 percent per year respectively, according to the Vietnam Chamber of Commerce and Industry (VCCI).

Rapidly rising minimum wages in Vietnam could push workers out of factories, as foreign invested enterprises could leave the country for cheaper labor cost markets, the VCCI said.

According to the Vietnam Institute for Economic and Policy Research, the minimum wage growth has outpaced labor productivity, warning that the former should slow down to match the latter.

Truong Van Cam, vice chairman of the Vietnam Textile and Apparel Association, claimed that raising the minimum wage would lower businesses’ profits and reduce competitiveness.

“Raising the minimum wage would also lower work opportunities, especially in remote regions, because if the minimum wage is too high businesses would be unable to pay their workers,” Cam said.

In fact, Vietnamese factories’ profit margins are being squeezed from the bottom by minimum wage hikes to the top by global buyers.

“The assembly price, for example, for shirts or jeans, which Vietnamese suppliers can get from multinational buyers, has remained largely unchanged for almost a decade – in some cases even lowered,” said Chang Hee-Lee, Vietnam country director at the International Labor Organization (ILO).

Experts also doubt that higher wages alone would prompt factories to move overseas where labor costs are lower.

Southeast Asia, including Vietnam, became attractive to manufacturing industries also because of a hardworking labor force and workers’ discipline, Forbes quoted Daniel Kostzer, senior regional wage specialist for the ILO, as saying. Even if minimum wage increases continue, those factors may be enough to keep companies in the region, he said.

Source: Ngan Anh

Vietnam through the eyes of local startups

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With a population of 90 million, Vietnam is the third largest market in Southeast Asia after Indonesia and the Philippines. Like its counterparts, Vietnam is also home to a lot of young people, approximately 40 percent of whom are less than 25 years old. This growing population of young people will likely be the next generation of consumers and bring big opportunities for entrepreneurs tapping into this emerging market. The country is also well-connected, with 50 percent of the population on the internet and more than a third using smartphones.

But while some may think Vietnam has a largely homogeneous ethnicity, there are distinct subcultures that impact the way startups work in the country.

So how does one navigate around Vietnam? And what is the local startup ecosystem like? I asked local entrepreneurs and Vietnam ecosystem experts Son Le Thanh and Anh Minh Do for their insights.

Northerners and southerners

Before diving into the Vietnamese startup ecosystem, we must first understand its history.

The Vietnam War that ended in 1975 brought about two distinct groups: the northerners that originated in Hanoi, where the government seat of power is located, and the southerners that lived in Ho Chi Minh City (HCMC).

There are cultural differences between the two. According to Son, who was born and raised in Ho Chi Minh City, southerners tend to be more open-minded, pro-business, and are direct in doing business. On the other hand, northerners emphasize political connections as a key strength (given their proximity to the government seat of power) before engaging in business.

Khoi Nguyen, the founder and CEO of WeFit, agrees with this assessment. He sees HCMC as a place for startups doing end-customer services, while Hanoi is for startups with more political affiliations.

Singaporean Alvin Koh, the founder and CEO of Hanoi-based Peko Peko, has been in Vietnam for over three years. He observed that northerners are generally better at studies, have the habit of saving money, and are more conservative, whereas the southerners are more dynamic, willing to start up, and spend as they earn.

From my conversations with Vietnamese entrepreneurs, there is a disparity. Northerners tend to view themselves as more cultured and refined, with a penchant for formalities, metaphors, and sarcasm—even in their daily speech. “Northerners are [also] afraid of change, which makes it a difficult market to adapt to technology,” said Duong The Vinh, the co-founder and CEO of HCMC-based Cititech. “I noticed Hanoi-based companies who would rather go global from the start than to test their product in Hanoi [as the beachhead market].”

Viet Kieu and the overseas educated

To add to the diversity, the Viet Kieu, the diaspora who left Vietnam during the war, are returning after receiving word of the country’s current opportunities. A report showed that an estimated 1.5 million Viet Kieu live in the US alone, with many more in other countries. Their return is a driving force in the Vietnamese economy, as they contributed an estimated US$12.3 billion in remittances in 2015.

They not only bring money but also the entrepreneurial skills and connections that come with it. One such example is Sonny Vu, a Vietnamese-American who founded MisFit Wearables Corp, which was acquired by Fossil Group for US$260 million. Another is Binh Tran, co-founder of Silicon Valley-based Klout, who now runs 500 Startups’Vietnam fund.

Let’s also not forget the Vietnamese who were educated overseas and are contributing back to the startup ecosystem,” added Son. A report written by Anh-Minh Do, former managing editor for Tech in Asia in Vietnam, substantiates his views.

According to Anh-Minh, the overseas educated have an edge over the Viet Kieu:

“Vietnamese nationals who study abroad have a significant advantage over overseas Vietnamese in Vietnam because of their understanding of the culture and the way of life. Generally, overseas Vietnamese have a Western mentality attempting to understand an Eastern mentality, but this process is too difficult for building a Vietnamese team or attacking the Vietnamese market. Going east to west and back to east is way easier.”

Opportunities in the Vietnamese market

The middle-class consumer lifestyle

Like other emerging Southeast Asian markets, the growing educated middle class is the focus of many entrepreneurs. Ecommerce is a growing market which reached US$4.1 billion in 2015, growing annually at 37 percent.

Vietnam is highly relationship-based. Building a close relationship with your clients is critical to success.

Tapping into this wave is Cao Nguyen, the founder and CEO of HCMC-based UseData, a marketing automation platform. According to him, “95 percent of ecommerce stores are SMBs, which use advertising to draw sales. This is not efficient.” To this end, his company taps on timely, personalized messages to build a relationship with customers to grow sales.

Alvin agrees on the need to develop relationships. “Vietnam is highly relationship-based. Building a close relationship with your clients [is] critical to success,” he explained.

A healthy lifestyle is also catching on among the middle class. This insight led Khoi to found WeFit, a fitness app offering a single monthly pass to hundreds of gym studios and fitness classes across Hanoi and HCMC.

There is also a 94.5 percent literacy rate among the middle class, an impressive level of education for the large growing nation. Khanh Tong, the CEO of Hanoi-based Checkit, takes advantage of this, creating an app which summarizes key insights of Vietnamese books.

Good resource pool of tech talent

“One of the big advantages [of doing a] tech business in Vietnam is we have great talent with low operation costs,” says Duong.

“Software engineering [graduates] can command a starting salary of US$500 and above US$1,000 for [those with] more than three years of experience,” Son elaborated. “This is considered a relatively high income.”

He continued saying that high-quality developers often come from universities such as HCMC Uninversity of Science. According to him, these universities have a roster of well-versed and experienced lecturers who have had overseas exposure and training.

He also gave credit to startups or large overseas tech companies who built their tech teams in Saigon. “As their job scopes demand high-caliber engineers, this has raised the bar for someone to be considered a good engineer,” he said.

On the grassroots level, organizations like Grokking Vietnam organize regular events to bring the best minds in the software engineering community together to share the best practices in building large-scale and complex software systems.

The Vietnamese entrepreneur

Khoi finds that Vietnamese entrepreneurs work very hard, spending an average of 14-16 hours a day working. “They also enjoy meetings, especially informal hangouts,” he said. “Most startup founders have technical backgrounds and are very strong in software development.”

Son attributes this attitude to necessity. “This is due to the inflation rate rising faster than wages,” he said. “Many entrepreneurs are part-timers who do freelance businesses or teaching to supplement their wages.” He also mentioned a culture of peer pressure for entrepreneurs to be shortsighted in their businesses and to succeed as quickly as they can.

Cao noted that most startups are built by young people, who are lacking in skills, networking, and experience. According to him, this will impede the production of successful companies.

Alvin said, however, that young people are willing to work hard, fail, and try again. This resilience is a hallmark of Vietnamese entrepreneurs that runs deep in the country and its history. He added jokingly, “If there is one unique behavior Vietnamese entrepreneurs have, it is the habit of drinking beer in noisy beer joints called Bia Hoi.”

Government initiatives in the ecosystem

“Everyone is talking about startups now, and a lot of people have started something in the past year. The government is also showing some support by changing the laws, hosting some events, and opening some accelerators,” Khoi said.

To further support the ecosystem, the Vietnamese government approved the Vietnam-Finland Innovation Partnership Program (IPP), which supports Vietnam’s overall goal of becoming an industrialized middle-income knowledge economy by the year 2020.

In HCMC, a US$38.5 million, 52-hectare Saigon Silicon Valley was created based on the same model in the US. This center aims to “attract enterprises of overseas Vietnamese and international corporations in high-tech and supporting industries, research, innovation, and transfer applications.”

A fairly new but advancing tech startup cluster in Da Nang has also been formed.

According to Son, “Da Nang operates differently, as its infrastructure was built from scratch, therefore bypassing legacy setup issues.”

Challenges faced by entrepreneurs

Despite a supportive ecosystem, entrepreneurs in the country still face challenges.

Lack of funding

“It’s quite hard to convince Vietnamese investors to take a risk at the very beginning, and foreign investors or VCs take too long to process,” said Khoi. “We have to bootstrap at the beginning, and the beginning is always the hardest time since our product is new and unfinished, while people still have many doubts.”

Khanh agreed that the country’s startup ecosystem is still in its infancy and has limited resources—a lack of co-working spaces, VCs, and startup programs. According to him, angel investors are new to the scene and do not really provide the necessary support. Because he lacked the confidence in the country’s legal system, he incorporated his startup in Singapore instead, receiving investment from Telstra Australia and joining the Muru-D Singapore accelerator.

Unclear government policies and slow implementation

Despite the initiatives to support startup development, Alvin noted that government regulations are often slow to be implemented and lack strong frameworks to benefit startups.

Cao concurred saying, “While some recent government funds have been announced, they are still not very clear to startups what they can bring besides, hopefully, money and a lot of paperwork.”

Duong added, “I think regulations in Vietnam are good enough for tech business in Vietnam for now. The law is not complete to support [startups] and needs time to develop, but the good news is we now see the government is ready to support.”

Language barriers and the need for international collaboration

Son sees a disparity between local and overseas Vietnamese in fundraising, likely because of the language barrier the former faces when reaching out to foreign VCs.

“Furthermore, startups have products ready but are more focused on the Vietnamese market due to language familiarity […],” he sad. “There is a need for more overseas collaboration to gain exposure and knowledge transfer.”

Advice to startups

According to Alvin, raising smaller rounds from family and friends definitely helps:

“In the funding scene, there are a growing number of angel and seed funds recently. However, as many of these are new angels, usually the process is not so structured, which could potentially slow down the fundraising process. Be prepared for this round of funding to take three to six months and bootstrap wisely in the meantime.”

Son added:

“Build up strong connections, which is critical in Vietnam. Don’t just focus on the technological aspects, but also the business side of things. Vietnam is also a great emerging market, [but] many basic needs are still not yet addressed. One will succeed by great execution with simplicity.”

Conclusion

I’ll use Khanh’s words to end this article:

“From the point of view of a startup, we need more early-stage VCs and more angel investors, both in quantity and quality. A lot of startups need knowledge at selling and pitching to sell their startups and ideas better. Even if the VCs don’t invest in them, it would be helpful to provide feedback, so they can learn and become ready to invest.”

(Special thanks to Son Le Thanh and Adrian Tan, program director at VIISA for the introductions to the startups. Also to An-Minh Do and Son for their coffee chats and deep insights about Vietnam).

Source: Christopher Quek

Trying to control the ‘uncontrollable’: Vietnam pushes for Bitcoin legal framework

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Cryptocurrencies are not officially recognized in Vietnam, but that has not discouraged investors.

Vietnam’s central bank has been instructed to compile a legal framework to control Bitcoin and other cryptocurrencies that are not currently recognized by Vietnamese law.

The government office issued the directive this week asking the Ministry of Justice and the State Bank of Vietnam to propose guidelines to help control cryptocurrencies in Vietnam.

The central bank said last October that the act of issuing, supplying or using illegal means of payment starting from 2018 may be subject to prosecution for violating regulations concerning the operation of credit organizations, a crime that carries up to 20 years in jail under Vietnam’s Penal Code.

However, the threat has not scared some businesses who consider it the new age of currency.

Several restaurants and coffee shops in Saigon, Vietnam’s commercial center, are already accepting Bitcoin payments, and the central bank said last month that they will be punished for breaking regulations.

The bank has warned organizations and individuals in Vietnam not to invest in Bitcoins or conduct transactions in the currency, saying they would be taking a huge risk with no legal protection.

“Bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion and illegal payments,” it said.

Around the world, policymakers are also skeptical about the currency and have warned investors to act with “extreme caution.”

U.S. Federal Reserve boss Janet Yellen has said Bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes.

Bitcoin, the biggest and best-known cryptocurrency, rose around twentyfold last year, climbing from less than $1,000 to nearly $20,000, a record level which was attributed to surging demand in China, where authorities say it is being used to channel money out of the country.

The virtual currency was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto. Individual Bitcoins are created by computer code.

The total value of all Bitcoin in existence is now around $152 billion.

Source: Anh Minh

Vietnam to tighten tax control as it legalizes Grab, Uber after 2-year trial

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‘Tax agencies will keep track of fares so management can be more transparent.’

Ride-hailing apps Grab and Uber are to be officially authorized in Vietnam after completing trial runs, but the government has pledged to impose the stricter controls it currently imposes on local transport firms.

The phone-based transport services have created healthy competition but they need to be regulated, the Ministry of Transport said.

Director of the ministry’s transport department, Tran Bao Ngoc, said that ride-hailing services will have to register their businesses with investment authorities and the transport ministry and the tax authorities.

“Tax agencies will keep track of fares so management can be more transparent,” said Ngoc.

Ho Chi Minh City’s Tax Department is looking to collect more than VND53 billion ($2.34 million) in suspected back taxes from Uber by January 10. The department has asked five commercial banks to help retrieve the money.

Uber Vietnam, a subsidiary of Uber International Services Holding B.V. based in the Netherlands, filed a lawsuit last month, saying that it is not subject to taxes according to Vietnam’s agreement on double taxation avoidance with the Netherlands.

But the city court dismissed the lawsuit earlier this week, saying Uber Vietnam does not have the legal status for such action.

Grab and Uber arrived in 2014 and operate both car and motorbike taxi services. The two services have been running on a trial basis since early 2016, but have been caught up in a war with traditional taxi drivers.

Many taxi firms have accused Grab and Uber of “unfair competition” that has hindered their businesses and caused thousands of drivers to quit.

Last September, Hanoi Taxi Association said Uber and Grab had been transferring around $150 million overseas every year to evade taxes. Grab denied the accusation.

Source: Doan Loan

E-commerce websites have to be registered

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A website considered an e-commerce website and must be registered or notified to the Ministry of Industry and Trade (MoIT).

They are those serving part or whole of the following activities is including purchasing and selling of goods or provision of services; from display and introduction of goods or services to contract commitment and service provision, payment and after-sales service.

Therefore, almost all websites that sell and introduce goods and provide services on the internet are e-commerce websites, which must be registered or notified to the ministry as prescribed by the law.

When to register and when to notify e-commerce websites?

E-commerce website notification according to clause 8, Article 3, Decree No 52/2013/ND-CP:

If traders, organizations and individuals merely provide information on their commercial promotion activities, sales of goods or provision of services of websites they own, they must notify the Ministry of Industry and Trade. For example: the websites of Mobile World, CGV, and Vivavivu represent these companies in selling goods (website owners).

These websites are collectively referred to as sales e-commerce websites.

E-commerce website registration according to clause 1, Article 25 and Article 27 of Decree No 52/2013/ND-CP:

Websites built for one of the three following activities must be registered with the MoIT. They include e-commerce trading floor on which other traders, organisations or individuals are permitted to conduct a portion or the whole process of sale and purchase of goods and services on these websites; promotional activities for the goods and services of other traders, organizations or individuals and online auction websites on which traders, organisations or individuals are allowed to organize the auction of their goods.

For example: Tiki, Sendo, and Hotdeal websites are e-commerce transaction floors that enable traders, organisations and individuals who are not website owners to proceed to sell goods or provide services on those websites. These websites are collectively referred to as websites providing e-commerce services.

Websites having both functions must be registered and notified to the ministry, according to Article 36, Article 41 and Article 46 of Decree No 52/2013/ND-CP, and Article 8 and Article 13 of Circular No 47/2014/TT-BCT.

For example: Lazada, Adayroi, and Robins websites are e-commerce platforms (allowing traders, organizations and individuals who are not website owners to sell on the site) that also simultaneously sell goods on their behalf (website owners).

Fines for failure to register/notify e-commerce websites

A fine ranging from VND10,000,000 to VND20,000,000 shall apply in case of establishing sales e-commerce websites without informing the Ministry of Industry and Trade.

A fine ranging from VND20,000,000 to VND30,000,000 shall apply in case of establishing websites that provide e-commerce services without registering with the Ministry of Industry and Trade.

In addition, the state agency shall impose a suspension of commercial activity from six to 12 months in the event of multiple violations, according to Clause 32, Article 1 of Decree No 124/2015/ND-CP.

Source: Bizhub

New faces on the list of the richest Vietnamese business people of 2017

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According to CafeF, 51 Vietnamese have stock assets of VND 1 trillion and more. They are all owners of large companies. Besides well-known faces such as Pham Nhat Vuong and Trinh Van Quyet, there are emerging names who are the owners of companies entering the bourse in 2017.

Listing VJC shares of Vietjet Air in February 2017, Nguyen Thi Phuong Thao is among the top three richest stock billionaires with assets worth VND26.2 trillion.

Thao now owns more than 10.3 million HD Bank shares and 39.5 million VJC which has seen a steady price increase from VND80,000 to VND143,000.

Vietjet’s CEO has also been named among the 100 most influential women in the world, and recognized by Forbes as a dollar billionaire.

2017 was the right time for securities companies to list shares as the prosperity of the market benefited from their share prices. Ban Viet Securities was one of them. The listing of Ban Viet added its CEO To Hai to those who have VND1 trillion and more worth of stocks.

Entering the bourse in August 2017, VPB shares of VP Bank immediately caught investors’ attention because the bank is considered a pioneer in developing consumer credit.

VP Bank president Ngo Chi Dung became the 20th richest stock billionaire with 70.2 million VPB, worth VND2.8 trillion. His mother, Vu Thi Quyen, and wife, Hoang Anh Minh, are also big shareholders of VP Bank who hold 130 million shares in total, valued at VND5.35 trillion. They both are among the top 20 stock billionaires.

With a large amount of shares being held, Dung’s family has become the fourth richest family. The first and second positions belong to Pham Nhat Vuong (president of VIngroup) and Trinh Van Quyet (FLC), while the third position belongs to Tran Dinh Long of Hoa Phat Group

Besides Dung, VP Bank has other billionaires. They include Bui Hai Quan, vice president, who holds 36 million VPB worth VND1.424 trillion. Quan’s wife, Kim Ngoc Cam Ly, holds 66.3 million VPB, worth VND2.64 trillion.

Nguyen Thu Thuy, the wife of Lo Bang Giang, vice president of VP Bank, holds shares worth VND1.85 trillion.

With Van Phu Invest (VPI) listing its shares in late 2017, its president and CEO To Nhu Toan were added to the list of billionaires who have more than VND1 trillion worth of stocks. His 40 million VPI has value of VND1.44 trillion.

Source: VietNamNet

10 Financial Milestones to Achieve in Your 20s and 30s

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There are financial milestones that need to be achieved in your 20s and 30s, in order to reach financial success. Some of them will just happen in the normal course of life, but others may require you to be more proactive. This is especially true if you want to master the milestones rather than just backing into them.

Here are 10 financial milestones you should achieve in your 20s and 30s.

1. Landing Your First Career-Type Position

20 years ago this milestone probably wouldn’t be on this list. Getting your first career position was something that was reasonably expected shortly after graduating from college.

Today, however both the economy and the job market are a lot less reliable than they once were. The path into the first career-type position isn’t necessarily a straight line and no longer happens quickly for a lot of people.

It might even take a succession of jobs before you land one that offers reasonable opportunity for future advancement. Sometimes it’s a matter of finding a position outside of your college major. Whatever road you take to that first career position, landing one is truly a milestone and one that needs to be your priority as soon as you finish school.

2. Opening a Checking Account

Hopefully this is something you did during your early years in college. But if you haven’t, it’s a high priority. As simple as it sounds, opening and learning to manage a checking account is Personal Finance 101. Your ability to do it successfully is the launching pad to virtually every other area of financial success.

It also generally indicates you crossing over the line to becoming primarily responsible for your own financial obligations. That’s a milestone!

3. Starting and Regularly Funding an Emergency Fund

Anybody can open a bank account; all you have to do is fill out some paperwork. The next milestone is achieved when you’re able to fund it regularly, building it into the kind of savings reserve that will help you withstand short-term financial disruptions. This is also known commonly as an emergency fund, and it’s another of those foundational financial accounts everyone needs to have. With latest microsavings services can make it easy and painless as well. Acorns for example can round up every purchase you make and invest the difference.

Since not everyone does — and not everyone sees the merit in it — having an emergency fund and putting money into it regularly, is another great accomplishment.

4. Starting a Retirement Plan

The race goes to the swift. This is a saying that richly applies to retirement savings. The sooner you start your retirement plan, the more successful that plan is likely to be. And simply taking that first step is one of the great financial milestones in life.

Young people often delay this step, feeling they don’t have sufficient income to make a substantial contribution. But when it comes to investing, especially long-term investing, getting started is more important than how much you start with. This is because you can start small, and once you establish the habit of contributing money, you can gradually expand your contributions over the years. Also, compounding interest makes a huge difference in the eventual total.

5. Investing Outside a Retirement Plan

There’s another saying, Never put all of your eggs into one basket. And so it is with investing. As important as a retirement plan is, it should never be your only investment vehicle. There will be all kinds of savings goals you’ll need to reach between now and retirement, and having money to invest in some sort of intermediate investment program will help you be ready to achieve those goals.

This can include having a brokerage account, a mutual fund, or exchange traded fund (ETF). Diversification is vital to financial success, so be sure to spread out all the risk by contributing to each account regularly.

6. Buying Your First Car

So far we have been concentrating on milestones that involve earning money. But how you spend money is the critical other half of the financial equation in your life. Buying a car is a big part of that, because it’s generally a necessary expense — and a large one at that. But even more significant, it’s an expense you have a very large degree of control over.

Like I said, buying your first car is a milestone in itself. How you handle your first car purchase can set the tone for how you will buy cars the rest of your life. That’s one of life’s biggest spending decisions.

Will you buy only cars you can pay cash for in order to avoid debt? Will you buy with a large down payment and pay off the loan as soon as possible? Or will you do what a lot of people do and ride the new-car merry-go-round, buying cars with five-year loans and replacing each as soon as the loan is paid off?

Which way you choose to go will help to determine whether you will spend your life as a saver or debtor. And yes, that’s truly a milestone.

7. Buying Your First Home

Much like buying your first car, buying your first home will help to determine your spending patterns in the future. Will you buy the most expensive house you can afford? Or will you choose to buy a house that’s well below your means?

Which route you choose will have a substantial effect on how much money you will have for other purposes, such as savings and investments.

Timing is also significant. Since you’re in your 20s or 30s, it’s a perfect time to buy a home. You will have at least 30 years to pay off the mortgage before your retirement — even if you don‘t make any effort to pay off the loan early.

And speaking of a mortgage, there are few financial obligations in life that come close to a home loan in duration. That has a way of causing you to rethink a lot of things about life.

8. Paying Off Your Credit Card Debt

There’s a saying in the credit industry, Once a Visa, always a Visa. This is an obvious reference to the seemingly permanent nature of credit card debt. After all, they don’t call it revolving debt for nothing. But once you experience your first episode of paying off your credit card debt completely, you’re empowered to do it again in the future if you need to.

That’s important because a lot of people go through life never paying off their credit cards. A big reason for that is that credit card debt becomes a lifestyle. If you can break out of that pattern by paying off your credit cards at least once, you will have achieved a milestone surprisingly few ever do.

9. Overcoming a Financial Crisis

A financial crisis as a milestone? Absolutely. There’s no teacher in life like adversity. You will learn things about money in a financial crisis that you never will during times of prosperity. At a minimum, experiencing a financial crisis can provide all the motivation you need to avoid getting into one ever again.

And beyond that, overcoming adversity is incredibly empowering. Once you overcome your first financial crisis, you may come to understand that while money is important, it doesn’t and can’t rule your life. That’s definitely a milestone!

10. Paying Off Student Loan Debt

The student loan debt crisis is all over the news these days. And that’s why becoming one of the “survivors” — one of the people who actually overcome their student loan debts by paying them off — is a true accomplishment. This is particularly true at a time when student loan debt is rising to levels never seen or expected in the past.

A lot of people resign themselves to simply live with their student loan debts, perpetually rolling them over as though they were credit cards. Paying them off once and for all is a true accomplishment — maybe even a radical one.

That’s a long list of milestones, but you have close to a couple of decades, so you’ll have plenty of time to achieve them all. And then you’ll be all set for the next phase of your life.

Readers: Are you in your 20s or 30s? What are some financial milestones you’ve accomplished?

Source: Kevin Mercadante

E-commerce revenue tops VND53 trillion in 2017

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E-commerce revenue topped VND53,870 billion (US$2.37 billion) in Ho Chi Minh City last year, increasing about 20 percent over 2016 and accounting for 5.9 percent of the total retail sales of goods and services.

That has recently been revealed by Mr. Nguyen Nguyen Phuong, head of Commercial Management Division under the HCMC Department of Industry and Trade.

At present, there are 61,000 e-commerce websites operating stably according to Government Decree 52 including online sale websites.

Mr. Phuong said that the city’s e-commerce market has been expanding with many new models. Businesses have developed their websites professionally with versions for mobile devices such as smart phones and tablets.

Global information and measurement company Nielsen forecast that e-commerce sales of fast-moving consumer goods will top that of retail stores in the next five years.

Source: Thuy Tho

Ho Chi Minh City to pilot safe-food markets

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Authorities in Ho Chi Minh City have approved a pilot project to adopt a market model that sells clean food, in a bid to enhance food safety.

The safe-food market model will be first applied to Ben Thanh Market in District 1 and Hoc Mon Produce Wholesale Market, located in the namesake district, and is expected to be implemeted at other markets by 2020.

According to a representative of the Food Safety Management Authority of Ho Chi Minh City (FSMA), merchants at the two marketplaces will first need to meet three basic requirements to be able to run their businesses.

Similar to most markets across the city, sellers must have a legitimate business license, food safety certificate, and ensure that their products have a clear origin.

At the Hoc Mon Produce Wholesale Market, which is the city’s prominent supplier of pork and vegetables, a team of 14 food safety officials will be tasked with managing the quality of food sold at the venue.

They will assist merchants in the supervision of pork products via a QR-coded label, which is part of a plan by the municipal Department of Industry and Trade.

Thanks to this, customers are able to access information regarding where the pigs were raised, when and where they were slaughtered, and from which wholesale market their meat was distributed, through a mobile phone app.

For fruit and vegetables, merchants will be instructed on noting down the origin of their produce.

Meanwhile, managers of Ben Thanh Market will be in charge of ensuring product quality instead of a team of food safety officials.

The market managers, in coordination with the FSMA and district-level bureaus of health, will show sellers how to monitor the origin of their merchandise.

The FSMA will carry out regular inspections of the two markets and impose stern punishments upon those violating the regulations on food safety.

Lan Hue, a food vendor at Ben Thanh Market, expressed her excitement at the food-safety model, stating that mangers of the venue should list the necessary criteria for sellers to prepare for the plan.

However, many small-scale traders are worried that they would be unable to meet all the requirements due to limited financial capacity.

Some vendors stated they have been fetching products from various sources, thus keeping track of their origin would be really difficult.

Nguyen Thi Lan, a pork seller at Hoc Mon Market, said she does not have enough money to afford proper tables to display the meat as required.

Meeting other equipments for food safety is out of her reach as well, Lan admitted.

Many agreed that local authorities should support merchants in terms of finance to help them adapt to the new model, thus maximizing the efficiency of the project.

Source: Tuoitrenews