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World Bank raises Vietnam’s growth forecast for 2017

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Stronger domestic demand and robust export-oriented manufacturing are driving Vietnam’s economy.

The World Bank (WB) has increased its growth forecast for Vietnam this year from the 6.3 percent it projected in October to 6.7 percent, matching the government’s annual target following steady progress during the first nine months.

Stronger domestic demand, robust export-oriented manufacturing and a gradual recovery of the agricultural sector are driving Vietnam’s economy, according to Taking Stock, the World Bank’s bi-annual economic report released on Monday.

The manufacturing and services sectors respectively grew by 12.8 percent and 7.3 percent between January and September, the report said.

“Growth momentum picked up across major economies and global trade recovered in 2017,” said Ousmane Dione, World Bank Country Director for Vietnam. “With incomes rising and poverty falling, Vietnam’s economy had another good year of strong growth and broad macroeconomic stability.”

Vietnam expects economic growth of 6.5-6.7 percent next year, and thinks that the target of 6.7 percent set for this year is within reach, Prime Minister Nguyen Xuan Phuc said at a recent session of the legislative National Assembly.

Low inflation and rising wages sustained buoyant domestic demand and private consumption, while the stronger global economy has helped Vietnam’s export-oriented manufacturing and agricultural sectors.

Job growth has continued, with 1.6 million new jobs added in the manufacturing sector over the past three years, and 700,000 additional jobs in the construction, retail, and hospitality sectors, leading to higher aggregate labor productivity.

Despite progress in resolving non-performing loans, risks remain, including the lack of robust capital buffers in some banks, especially amidst rapid credit growth.

Fiscal tightening is underway, according to the report, and has led to a leaner budget deficit and containment of public debt accumulation. However, the decline in public investment – falling to 16 percent of total spending in the first nine months of 2017 compared with an average of 25 percent in recent years – may not be sustainable over time, as Vietnam needs significant investment in infrastructure to support future growth.

A slow-down in structural reforms could also impact the ongoing recovery, especially given the weaker growth in investment. Enhancing macroeconomic resilience and structural reforms could lift Vietnam’s growth potential over the medium term.

“Structural reform remains a central priority in view of tepid productivity growth,” said Sebastian Eckardt, the World Bank Lead Economist for Vietnam.

“Building on progress already made, Vietnam can further lift productivity growth through investments in needed infrastructure and skills as well as deeper reforms of the business environment, state-owned enterprise (SOE) and banking sector.”

Over the medium term, growth is projected to stabilize at around 6.5 percent, while inflation is projected to remain low.

Source: Ngan Anh

Thai Beverage unit to bid for at least 25 percent of Vietnam’s Sabeco

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The auction of up to 54 percent of Sabeco worth at least $5 billion is set for December 18.

A unit of Thai Beverage (TBEV.SI) has emerged as the only prospective bidder for state-owned shares in Sabeco (SAB.HM) that has declared that it could lead to it owning 25 percent or more of Vietnam’s biggest brewer, the Trade Ministry said on Monday.

The auction of up to 54 percent of Sabeco worth at least $5 billion, in what is set to be Vietnam’s biggest privatization, offers brewers access to a fast-growing market with a youthful population and beer drinking culture.

Investors who want shares that would lead to an ownership of 25 percent or more in Sabeco have to inform the local authorities and publicize the information a week before the auction date, which is set for December 18, according to the rules of the offer.

Other brewing groups including Anheuser-Busch InBev and Kirin Holdings have been preparing to bid for a stake, people familiar with the matter have said.

But the trade ministry said in a statement on its website that as of 1100 GMT on Monday the one prospective investor which has registered an interest in buying 25 percent or more of Sabeco that has publicized the information is Vietnam Beverage Company Limited.

Vietnam Beverage Company Limited is owned by Vietnam F&B Alliance Investment Company, which is 49-percent owned by BeerCo Limited, an indirect but wholly-owned subsidiary of Thai Beverage, official documents about the companies showed.

Foreign ownership in Sabeco is limited to 49 percent. That means overseas bidders can only bid for a minority stake of as much as 39 percent as foreign entities already own 10 percent.

Lack of control and the unorthodox way in which the Sabeco stake is being sold could put off some possible bidders, bankers, investors and lawyers familiar with the matter said.

The Vietnam trade ministry, which represents state shares in Sabeco, said foreign investors can link up with Vietnamese firms to buy shares in Sabeco, but have to comply with local laws and regulations.

Source: Reuters

Vietnam fuel distributors to shift to ethanol blend this week

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The country has been pushing for the E5 mixture as ethanol can be produced from cassava, making it renewable.

Vietnam’s biggest fuel distributors said they would complete a shift to an ethanol-blended product by Friday as part of a government program to promote a more eco-friendly fuel.

State-owned PetroVietnam Oil Corp (PV Oil), which sells oil and fuels, will replace RON 92 fuel at all of its fuel stations with E5, a mixture of 95 percent of RON 92 and 5 percent of ethanol, by December 15, its parent firm PetroVietnam said on its website on Monday.

Top fuel importer and distributor Petrolimex said on its website last week that its 2,400 stations across the country would have shifted to the ethanol-blended fuel by the end of this week.

Vietnam has been pushing for the E5 mixture as ethanol can be produced from cassava, making it renewable. Several factories have been set up specifically to process cassava into ethanol.

But critics and drivers argue the mixture could cause fire or damage vehicles’ engines and parts. The government has said the mixture is safe, adding that drivers should use vehicles from a certain year of production, depending on the model, to ensure they are safe.

Another type of non-ethanol fuel, RON 95, is still on sale, but in smaller volumes.

Vietnam plans to complete the shift to the E5 mixer across all fuel stations by January 1 next year.

Source: Reuters

100 percent of meat samples in Saigon, southern neighbors infected with E. coli: study

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150 duck, chicken and pork samples contained levels of the dangerous bacterium beyond the national safety limits.

Sweeping food hygiene tests in Saigon and four neighboring provinces revealed that all the samples of meat taken contained excessive amounts of the highly dangerous bacterium E. coli.

The research team took 150 duck, chicken and pork samples as well as 147 samples of bivalvia mollusks including clams and oysters from markets in the city and its neighbors Ba Ria-Vung Vau, Binh Duong, Binh Phuoc and Dong Nai between April and August this year.

They found the E. coli levels exceeded the national safety limit in all the meat samples and 64 percent of the clam samples.

The team from the Pasteur Institute in Saigon revealed the results at a recent conference, saying the tests demonstrate a massive threat from fresh and raw food sold at wet markets in the region.

They suggested that the whole supply chain from the slaughterhouses to the processors and vendors has poor hygiene protocols, and that authorities need to enhance surveillance of these practices.

Consumers are advised to cook their food thoroughly to reduce the risk of infection, they said.

E. coli is a rod-shaped, coliform bacterium of the genus Escherichia that is commonly found in the lower intestine of warm-blooded organisms. Most E. coli strains are harmless, but virulent strains can cause serious food poisoning, urinary tract infections, neonatal meningitis or hemorrhagic colitis.

Food safety is a national concern in Vietnam.

Official government data showed food poisoning killed 22 people and hospitalized 3,147 others in the first 11 months this year, almost twice the figure from a year ago.

Source: Staff Reporters

Karaoke sessions crank up the volume and tensions in Saigon’s neighborhoods

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When the love and passion for music goes wrong, karaoke at max volume can become an instrument of torture.

VnExpress received a letter on Tuesday from a man at his wit’s end over a karaoke dispute with his neighbor that has led to his wife being threatened for asking for the volume to be turned down a notch or two.

“My child has to study while my wife and I need to rest after we finish work,” Le Thanh Tung wrote in his letter, “but our neighbors have been singing on the microphone from 6 to 10 every night for more than a year now.”

“We just can’t stand the noise any longer.”

His wife asked the neighbors to turn the volume down, but that led to threats of violence, with the neighbors arguing that they can sing however they want before 10 p.m.

On Monday, Son Huynh, another reader, related to a similar story of how his neighbors’ karaoke sessions are “torturing” his family.

It turns out that the two men are not the only ones suffering from the problem in Saigon, Vietnam’s biggest city now packed with 6,200 people per square kilometer.

Fair enough, many people love music and singing their favorite songs, and it’s true that listening to a good voice at a reasonable level can be a treat. But when the love and passion for music goes wrong, karaoke at max volume can become an instrument of torture.

Commenting on these stories, many VnExpress readers said they have experienced the same kind of “noise pollution” created by karaoke sessions around their apartments for years, but still have no solutions to the situation because the law says only those making noise in residential areas after 10 p.m. are considered to be violating regulations.

Lots of readers said there is no way the miserable listeners will be able to convince their neighbors to stop the show or turn down the volume, so they suggested the two authors fight back with louder speakers. Some said the method has already worked for them, and their neighbors had given up when the decibels were ramped up.

This solution received applause from many readers, who said it might be the best choice because it’s difficult to get the authorities involved.

Thanh Hung said he realized the local authorities would not help him when they told him to either move or try to endure the noise. Hung said when he tried to report the matter to higher authorities, officials in his commune even disciplined him for damaging their reputation.

They did ask his neighbors to turn the music down, but the peace was short-lived and life returned to normal in the neighborhood after just three weeks, according to Hung.

Just last weekend, a big fight broke out after a man asked a group of workers near his home in the city’s Binh Tan District to turn down their karaoke speakers.

The argument quickly escalated and both men and women attacked one another with weapons, causing serious injuries on both sides.

The bloody aftermath of the fight has set alarm bells ringing among people who love to entertain themselves at the expense of their neighbors.

In Vietnam, noise pollution has become a serious threat.

A study conducted by the Institute of Occupational Health and the Environment in July found that out of the 52 million people working in Vietnam, between 10 million to 15 million have to deal with excessive noise.

Noise levels on 12 major streets and junctions in Hanoi were measured at between 77.8 and 78.1 decibels during the day, way beyond the safe level of 70, according to the study. The average noise level at night also exceeded limits by 20-40 percent, it said.

In HCMC, eight out of 14 spots also violated acceptable levels, according to measurements recorded in June.

The problem is even worse in industrial zones, officials said.

Doan Ngoc Hai, the director of the institute, said that noise pollution can have long-term impacts, such as loss of hearing. It can also lead to sleeping disorders and high blood pressure, while children can suffer cognitive impairment, he said.

Source: Minh Nga

Are young, urban Vietnamese spending too much?

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Vietnamese Generation Z grew up during an economic boom, does it justify their ‘urge to splurge’?

Young Vietnamese, especially those born from the mid-1990s, or Generation Z, prefer to spend rather than save, unlike their older generations who are known to be thrifty.

A recent poll of 16,000 respondents in Vietnam’s three biggest cities – Hanoi, Da Nang and Ho Chi Minh City – by Decision Lab showed that Vietnam’s Generation Z, which accounts for 15 percent of a population of roughly 93 million, spend on average VND890,000 ($40) a month eating out.

The HCMC-based market research firm said 56 percent of respondents earned no money or made less than VND3 million ($132) per month, and only 35 percent of them made between VND3 million and VND7.5 million a month.

Fast food restaurants were the most frequented diners, making up 25 percent of the venues of choice, followed by roadside restaurants with 18 percent and convenience stores with 17 percent.

Bubble tea is the queen of drinks, compared to coffee and alcoholic drinks that were preferred by older generations.

In a recent interview with VnExpress International, a group of four 19-year olds who meet up everyday in cafés defended their lifestyle, saying in Hanoi where public spaces are scarce, it’s the best way to maintain their friendship, which is “invaluable.”

One member of the group, Trung Hieu, put it bluntly: “I don’t think bubble tea is expensive. I only need to work for two hours to pay for it.”

The older generations see it differently. To them, it’s wasteful because a cup of bubble tea costs VND50,000-60,000, twice that of a typical office lunch.

Such contrast in perspectives could be explained by differences in the economic and social contexts of their upbringing.

Those born from the late 1970s to the early 1990s, grew up in a transitionary period when traditional Confucian values still largely shaped lifestyles and moral standards. These were tough times economically and belt-tightening was part of life, even a worthy “trait”. This generation was also the first to access the internet and western cultures and ideals.

But those born from the mid 1990s onward have welcomed a strong cultural wave that carried the concepts of freedom, individuality and right to indulge along with an economic boom.

The “bubble tea” generation “feel they are part of this booming wealth, more so than in the earlier days of austerity,” said Phan Tuong Yen, a psychologist at Hoa Sen University in Ho Chi Minh City. “Therefore, the notion of freedom between these two generations somewhat differs, and so does the concept of cautious spending.”

Also, psychologist say teenagers and twenty-somethings have always wanted to prove themselves through talent, character or social status.

“A decade ago, hip hop, Converse shoes and smartphones were considered cool,” said Yen. “Today, it’s the experience you get from fancy services.”

But is Generation Z crossing the line of what is acceptable level of spending? Are they taking sufficient responsibility over how they spend their money?

Let us know by casting your vote and leaving a comment.

Source: Editorial

Top 9 ways to celebrate Christmas in Saigon

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There are few obvious things to do in Saigon at Christmas, largely because Christmas just isn’t as big a deal here as it is in the Western world. This is hardly surprising given the relatively low population of Christians in Vietnam compared to the population as a whole, and while the West drives itself slightly insane with Christmas shopping frenzies and Christmas pudding cooking, Vietnam tends to be no more crazy than it is all year round.

But this doesn’t mean that Christmas isn’t celebrated at all. The Vietnamese are always ready to have fun, and Christmas is a great chance to get outside and celebrate! Saigon lights up at Christmas time with thousands of string lights and Christmas decorations, and the city fills with hundreds of people who are reveling in the chance to be festive.

So how can you best enjoy this Christmas excitement?

1. Embrace Your Inner Tourist

Christmas Eve and Christmas Day are two days of the year when being a shameless, photo-taking, gawking tourist is not only acceptable but almost mandatory.

Ho Chi Minh City is beautiful at this time of year, bedecked with strings of lights and dazzling banners, and dotted with the occasional gaudy santa or glaring Christmas tree. It can be hard to tell which decorations are for Christmas and which are for Tet, but at the end of the day it doesn’t really matter!

Christmas Day, like Halloween and all other Western celebrations, tends to bring masses of congestion to the already-bustling Saigon, so walking is the best option. Get outside with your camera, or just your eyes, and join the city in being happy.

2. Be Romantic on the River

Ho Chi Minh City is beautiful all year round, with its endlessly buzzing streets and thousands of twinkling lights, but during the festive season the city comes alive with decorations. However, sometimes the streets can be a little overwhelming!

Why not get away from the bustle of the city streets and onto the ancient, lazy Saigon River? The river itself, though definitely not as clear and blue as it once was, is a beautiful reminder of Saigon’s past and present, and a romantic cruise on one of Artisan Cruises luxurious barges is a great standpoint from which to watch the city in all its finery.

3. Sit in the Sky and Watch the Ants

Another way to get into Saigon’s Christmas festivities without getting lost under the feet of revellers is to sit at one of the city’s many rooftop bars and watch the ants. From the famous Chill Skybar and its incredible panoramic views to the homely rooftop at The View on Bui Vien, rooftop bars in general provide a great angle for watching people with a cool drink in hand. Check out for our piece on Saigon’s 11 best rooftop bars for a great selection this December!

4. Take me to Church

Christmas is a time for lights, smiles, family and merriment with communities all round the world, but for Christians it holds a whole other significance. The beautiful Notre Dame Cathedral in District 1 is a well-known historical icon of Ho Chi Minh City, but it is also a functioning Catholic Church and every Christmas it holds truly special services for its Christian congregation. For insight into Christianity in Saigon, or for a glimpse of the peaceful, religious side of this international celebration, visit the Saigon Notre Dame Cathedral this Christmas.

5. Indulge in Glorious Cake

As a previous French colony, Vietnam is known for its delicious French-influenced baked goods, of which the Bûche de Noël is a Christmas favourite. Why not buy yourself something sweet to enjoy with family and friends while you marvel at how two such different cultures could have been brought so very close?

6. Let me Take a Selfie

I saw a motorbike yesterday with two parents and one small child, all wearing matching, bright red and white santa costumes, hooning around District 1. This made me think – what if we all dressed up and took selfies? Selfies are ridiculously popular among the young Saigonese, as I’m sure you are aware, and dressing up is equally as popular! Join the slightly embarrassing Saigonese festivities this Christmas and slap on your red santa hat, or just find someone in a santa suit and ask them for a picture.

7. Escape!

Is Ho Chi Minh City too busy for you at Christmas time? Do you crave the beach, the sea, and nice cool glass of something that screams ‘I-am-classy-and-very-relaxed!’? Well, why not get away to beautiful Nha Trang this Christmas for a long weekend on the soft sand of Nha Trang Beach.

Luxurious Novotel Hotel Nha Trang is holding a range of special offers this December from their delicious Christmas buffet and drinks to a range of discount packages at the hotel. Stay with Novotel at famous Nha Trang Beach this festive season, relax in the shade, eat your fill and watch the sun fall behind the deep East Sea.

8. Take a Dip

Keen for a bit of a getaway but looking for something closer to home? Van Thanh Pool in Binh Thanh District, nestled in the palm of a beautiful quiet park and with an only VND60,000 entry, is a great place to relax this Christmas. A resort style pool, the deckchairs and palm trees are surrounded by green lawns and a random collection of karaoke booths, restaurants, art galleries and other miscellaneous attractions that are seriously wonderful, simply because they highlight how bizarre Saigon really is.

9. Get Local

Finally, why not make some friends this Christmas? Park 23/9 in District 1 is known for its gaggles of students looking to practise their english with native speakers. They roam the park, pouncing on unsuspecting foreigners, and often end up making friends with their victims and taking them for a beer. If you are a native speaker, go to the park this Christmas and wait for a group of festive students to befriend, before wandering off to the backpacker strip for a ridiculous amount of laughter, beers and dried squid.

Source: citypassguide

Steps to Set Up Company in Vietnam

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Registration procedures to set up a company in Vietnam have been simplified by authorities, but still be not easy. If you are not well-prepared, you cannot avoid problems when establishing and running business. Following are some basic steps to set up business in Vietnam that may help you.

Step 1: Information preparation

This step helps you reduce errors and lessen the time you spend on later registration process. There are some issues needed to consider before you set up company in Vietnam.

Choose the type of business entity. According to the Law on Enterprises, there are four common types of business entities at present: private enterprises, joint stock companies, partnerships, limited liability companies (multi-member limited liability companies and single-member limited liability companies). This decision plays an important role in making or breaking your business ideas in practice. Therefore, try consulting experts before you make decision. The number of members (shareholders) varies according to the kind of business. Based on that number, company owners prepare notarized copies of IDs or visas.
Choose the name for your company. The name should be short, easy to remember and pronounce. It is not allowed to resemble other companies’ names which are available. Learn more information about available companies’ names at “National business registration portal”.

In addition to type of business entity and company name, other issues you need to prepare carefully before you set up business in Vietnam are: choosing the office place, determining authorized capital for your business, selecting a title for company’s representative in law and choosing a legal industry to register.

Step 2: Registration process

After having prepared all the information needed to set up company in Vietnam, you can initiate to compile documents in accordance with Article 20 of Government Decree No. 43/2010/ND-CP (15 April 2010) on enterprise registration. Then, submit those documents at local business registration office (Article 25 of Decree 43). Submission can be done by the representative in law or an authorized representative as long as you have a power of attorney. If your application files are approved, you will receive business registration certificate after 5 working days.

Step 3: Make a company seal

Making a company seal is one of important steps when you set up business in Vietnam. Bring a copy of business registration certificate to seal-maker agency to make a stamp for your company. Then, the stamp will be sent to local police to verify and return to your company. Remember to bring along business registration certificate (original) and ID when you come to police station to get the stamp.

Step 4: Post-registration procedures

There are still several procedures needed to complete after having business registration certificate if you want to set up company in Vietnam successfully.

Register tax reports not only at local tax office as the time required but also online through digital signature service in accordance with Law No. 21/2012/QH13 on amending and supplementing a number of articles of the law on tax administration.

“Publish in the network of information on enterprises of the business registration body or a written or electronic newspaper” (Article 28 of Law on Enterprises)
Submit reports and pay business license tax (form 01/MBAI enclosed with Circular No. 156/2013/TT-BTC dated 06 Nov 2013 of the Ministry of Finance).
Lodge notification to apply VAT calculation methods (form 06/MBAI enclosed with Circular No. 156/2013/TT-BTC dated 06 Nov 2013 of the Ministry of Finance)
Buy, create, self-printed invoices in accordance with Circular No. 39/2014/TT-BTC dated 01 June 2014.

Any questions or support need, contact GBS – a Business & Legal Services company for foreign investor in Vietnam at

Email: info@gbs.com.vn
Whatsapp | Viber | Call: +84903189033
Website: https://gbs.com.vn

Working as repairmen along busy streets in the motorbike kingdom of Saigon

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A common sight along many Saigon roads is that of a tire hanging from a tree branch, pole, or fire hydrant, along with a rustic air compressor prominently displayed on the sidewalk. These street-side repair ‘shops’ have been serving local drivers on their daily rides in the city for years.

Huy, a 33-year-old migrant living in Saigon for the last three years, was riding his ramshackle motorbike to work on a cool morning in December, when suddenly he heard a popping sound, like that of an exploded balloon.

The effect was immediate, and his wheel began to malfunction. However, remaining calm, Huy knew he could just ask around for the nearest roadside repairman.

Statistics from the Ho Chi Minh City Department of Transport reveal that in March 2017, there were 7.3 million motorbikes in the city.

Data from the General Statistics Office of Vietnam shows that the city’s official population in 2016 was 8.3 million, which translates to 87 motorbikes per 100 city residents.

A rustic compressor by the roadside in Ho Chi Minh City, November 30, 2017. Photo: Tien Bui/Tuoi Tre News

Well aware of the potential market, amateur repairmen have taken it upon themselves to ‘set up shop’ on busy sidewalks and at crowded crossroads, with their compact toolkits readily at hand.

Making it a career choice attainable to most is the fact that it does not cost an arm and a leg to invest in the basic equipment, as problems along the roads are relatively minor.

The most common services and replacements are of tires, spark plugs, oil and brakes. Bike parts are generally only purchased on request.

Not all repairmen have their own air compressor though. Prices vary by volume, and may range anywhere from US$140 to $250 for 35-liter to 100-liter versions, according to a search by Tuoi Tre News online.

A flat tire gets pumped for about 10 U.S. cents, meaning it takes 1,500-2,000 flat tires to break even on the investment.

How to qualify?

To become a motorbike repairman or woman, there is formal schooling available in vocational colleges, which offer four-month intensive courses for around $200.

A rustic compressor by the roadside in Ho Chi Minh City, November 30, 2017. Photo: Tien Bui/Tuoi Tre News

Such programs immerse learners deeply in the mechanics of motorbikes, issuing certificates recognized in Vietnam upon graduation.

However, as Tuoi Tre News understands, formal training directs those wishing to work in the industry toward registered premises or opening their own business.

Solving basic bike problems on the street does not call for much education.

Very little mechanics is actually required, as most often knowledge of compressors and the ability to fix a flat tire quickly will suffice.

One serviceman on Nguyen Huu Cau Street in District 1 said: “While I’m busy, it’s DIY for customers if they need a pump. It’s really simple: just take the tip of this hose and press it gently against the valve. A piece of cake!”

Wrong-doers

It has been reported that some repairmen overcharge customers, especially on rainy evenings or along empty streets.

Instead of 22 U.S. cents for a puncture, drivers might be forced to cover 10 times that cost. One way to avoid this trick is to agree on the price beforehand.

A brand-new tire resting on a fire hydrant, with servicemen off duty behind in Ho Chi Minh City, November 30, 2017. Photo: Tien Bui/Tuoi Tre News

Worse still, the unscrupulous have reportedly been damaging tires on the job and demanding payments for extra repairs.

Additionally, as it has been frequently covered in local media, some have even spread nails on roads, knowing all too well that a victim will drop by in no time.

Obviously, bike quality and endurance have improved thanks to state-of-the-art technology, which reduces the need for servicing on a regular basis.

But just as the roadside repairmen appeared 50 years ago when the first Honda hit Saigon, these men and women will continue to enjoy the job as long as the motorbike lives on in the city.

Source: Tuoi Tre News

Vietnam’s Generation Z may not make much money, but they have a weakness for eating out

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To make their decision on where to eat out, these internet-savvy post-millennials still prefer word of mouth to online tips.

Vietnamese youngsters born between 1995 and 2002, or Generation Z, have emerged as potential consumers for dining brands, according to new market research that found they are willing to spend a big chunk of their budgets on eating out, regardless of how much money they make.

Generation Z, also known as Post-Millennials, the iGeneration, Founders, Plurals, or the Homeland Generation, is the demographic cohort following the Millennials.

Vietnam’s average annual income was around $2,200 last year.

Unlike the previous generations who had their meals at home and at a fixed time, the new generation uses food services outside their homes at any time, the research found.

Interestingly, this internet-savvy generation say they do not trust advertisements, online feedback or recommendations from celebrities, and are much more interested in advice from their families to make their choice on where to eat out.

In the third quarter alone, the respondents dined out 133 million times.

Fast food restaurants were the most frequented diners, making up 25 percent of the venues of choice, followed by roadside restaurants with 18 percent and convenience stores with 17 percent.

Bubble tea is the queen of drinks, compared to coffee and alcoholic drinks that were preferred by older generations.

On a typical morning, 15.6 percent of respondents said they drank milk tea, 12.5 percent said fresh milk and 12.1 percent said coffee with milk.

Decision Lab predicts that milk tea will continue to be the beverage of choice in the future.

Urban Vietnamese have recently found themselves at the center of online criticism over their “wasteful spending habits” because they are willing to spend VND50,000-60,000 on a cup of bubble tea and do so several times a week.

The cost is claimed to be twice that of a typical office lunch in a country where the average annual income is expected to reach $2,400 this year.

The majority of comments criticizing the “wasteful spending” came from young people who had been working for quite a while, aged from 28-40. Those who defended these habits were mostly aged from 18-25, or young people with high incomes.

The former, born from the late 1970s to the early 1990s, grew up in a transitionary period when traditional Confucian values still largely shaped lifestyles and moral standards. These were tough times economically and belt-tightening was part of life, even a worthy “trait”. This generation was also the first to access the internet and western cultures and ideals.

“What we see here is an interesting generational gap, but not the gap between parents/grandparents and their children,” Phan Tuong Yen, a psychology lecturer at Hoa Sen University in Saigon, told VnExpress International in October. “It’s much closer than that and it’s clearly a conflict of personal values.”

It’s those born from the mid 1990s onward who have welcomed a strong cultural wave that carried the concepts of freedom, individuality and right to indulge along with an economic boom.

The bubble tea generation “feel they are part of this booming wealth, more so than in the earlier days of austerity,” said Yen.

“Therefore, the notion of freedom between these two generations somewhat differs, and so does the concept of cautious spending.”

Source: Staff Reporters

Vietnamese hacker jailed for stealing Australian airport data

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He was also found to have hacked into banks and telecommunications infrastructure in Vietnam.

A Vietnamese man was jailed last week after an investigation found he had hacked into Perth Airport’s security system and stolen sensitive information.

Le Duc Hoang Hai was sentenced by the Vietnamese military court to four years in jail for illegally accessing the airport’s systems by using the credentials of a third-party contractor in March 2016, The West Australian reported on Monday.

The report cited Alastair MacGibbon, a cybersecurity adviser for the Australian prime minister, as saying on Sunday that Hai had stolen “a significant amount of data” relating to the airport, including building schematics and details of physical security at airport buildings.

He said Hai had not accessed radars or other systems linked to aircraft operations, or the personal details of passengers.

The investigation suggested he had been attempting to steal credit card data, but a full risk assessment deemed him not a threat to the public.

Perth Airport detected the breach and the Federal Government’s cybersecurity center in Canberra later traced the hack to Vietnam.

Vietnamese police arrested Hai after receiving a tip-off from their Australian colleagues.

The investigation found that Perth Airport was the only target in Australia, but he had hacked banks, telecommunications system and an online military newspaper in Vietnam.

Source: Staff Reporters

Foreign convenience store chains continue rapid expansion despite losses in Vietnam

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‘It’s not time to make a profit yet. It’s time to grab more market share.’

Nguyen Thu Ha has abandoned traditional markets on her afternoon shopping trips in favor of a more convenient option.

Uncomfortable with the crowds and dubious origins of the food, the 35-year-old from Hanoi now prefers to spend her money in the convenience stores that are mushrooming across the city.

“The quality in convenience stores is guaranteed, unlike grocery shops and traditional markets,” she said. “That’s why I go to them now.”

Like Ha, many shoppers are turning to convenience stores, encouraging foreign retailers to expand their presence in the market.

The number of convenience stores had increased to over 1,500 as of June 2016, according to market research firm Nielsen Vietnam. Famous foreign brands now occupy 70 percent of the market.

In June, Seven & i Holdings, which operates Japan’s biggest convenience store chain 7-Eleven, opened its first outlet in Ho Chi Minh City.

Kyodo News quoted a company representative as saying that it plans to open 100 stores in Vietnam within three years and expand the number to 1,000 in the next decade.

American chain Circle K has around 250 stores, mostly in the country’s two biggest cities, Ho Chi Minh and Hanoi.

FamilyMart, Japan’s second largest convenience store chain, has a combined 130 stores in Ho Chi Minh City, the nearby resort town of Vung Tau and Binh Duong Province.

Southeast Asian chains Shop&Go and B’s mart are running another 300 stores.

South Korea’s GS Retail also plans to enter the market in the near future with the first outlet bearing its GS25 convenience store brand in Ho Chi Minh City.

GS25, which will be the first Korean convenience store chain operator to enter the Vietnamese market, is expected to open 2,500 outlets in the next 10 years.

“We have received requests from many countries, including China and other Southeast Asian countries, to export our brand,” said a GS Retail spokesman. “After months of research, we concluded that Vietnam had the largest potential for growth.”

A.T. Kearney’s Global Retail Development Index this month named Vietnam the sixth most attractive retail market in the world. The country made headlines worldwide when it topped the list in 2008.

International market research organization IGD forecasts double-digit compound annual growth rate over the next four years in Vietnam, reaching 37.4 percent in 2021.

“Convenience stores in Vietnam have become popular destinations for young consumers to shop and hang out, as the stores provide them with an air-conditioned environment, well-organized shelves and seating areas, high quality products and, in some stores, free Wi-Fi,” said Nick Miles, head of Asia-Pacific at IGD. “It is also easier to get licenses for stores under 500sq.m, which is why retailers have been expanding to gain market share.”

Vu Vinh Phu, former chairman of the Hanoi Association of Supermarkets, said convenience stores have expanded with the growing middle class, who are increasingly willing to pay a little more for the convenience of mini-marts that are open for longer hours and can be found in more locations.

Economists say Vietnam has great potential for convenience store expansion, considering the number of existing stores now is still small compared to the population.

There is one convenience store for every 2,100 residents in South Korea, 2,300 in Japan, and 24,900 in China. The ratio in Vietnam is one per 54,400 residents, according to a recent report by international property research firm Savills.

Vietnam’s trade ministry has projected the country’s retail market will hit $179 billion by 2020, a jump of 52 percent from last year.

Uneasy to earn

Despite bright prospects for convenience stores in Vietnam, their development has not always been smooth, as in the case of FamilyMart. Japan’s second largest convenience store chain plans to stay focused on its domestic market after reporting losses in several Southeast Asian countries, including Vietnam.

Koji Takayanagi, the company’s president, said the firm is reviewing its loss-making businesses in Indonesia, Thailand and Vietnam. “If we can get them to rally we will, but we cannot continue to pour in resources,” he was quoted by Reuters as saying.

Another example is the case of a joint venture between Ministop, an affiliate of Japan’s second largest retailer AEON, and G7, an arm of local coffee producer Trung Nguyen. The joint venture aimed to develop 500 convenience stores across the country within five years from 2011. However, the partnership ended in 2015 when Trung Nguyen withdrew from the deal after only 17 stores had been opened. The venture reportedly failed to reach the target because of difficulties in finding premises in Hanoi and Ho Chi Minh City.

Ministop now has only 80 convenience stores in Ho Chi Minh City and Binh Duong Province.

As well as the difficulties they face finding retail space, convenience stores must also compete with other retail channels, which are also expanding rapidly, especially online shopping, said head of the Association of Vietnam Retailers, Dinh Thi My Loan.

Explaining why retailers are continuing to expand in the convenience store market, despite losses, an industry insider said their current goals is to stretch their influence in the market. Retailers often suffer losses in the first four to seven years, he said. “It’s not time to make a profit yet. It’s time to grab more market share.”

Ho Chi Minh City residents getting in Christmas spending spirit

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Hundreds of real Christmas trees imported from temperate-climate countries have been sold out

With two weeks left until Christmas, families and business owners in Ho Chi Minh City are already getting in the Christmas spending spirit as an air of joy and festivity lingers about every corner of the southern hub.

Some stores selling Christmas decorations have reportedly sold out their stock, while shoppers spare no expense in getting their homes ready for the festive season.

Fake Christmas trees are especially hunted for this year, with stores introducing a wide variety of designs at prices ranging from VND600,000 to one million (US$26.43 – 44.05) to appeal to consumers of all backgrounds.

“Home decorators typically opt for those between 1.2 and 1.5 meters in height, while those who want to decorate their stores would go for trees taller than 1.8 meters,” said Oanh, owner of a Christmas decoration shop in District 10.

According to Oanh, minimalistic designs are in style this year, with the colors white and red being consumers’ favorites.

Those with more money at hand may even go for a real Christmas tree, imported from regions with temperate climate such as the U.S. or Europe.

Since Wednesday, over 500 real Christmas trees have arrived at Ho Chi Minh City from Denamark to meet local demands for the luxury decoration.

The trees had been kept hibernating in cold storage for four weeks while they were transported by sea over the long distance.

According to Diep, an importer of real Christmas trees, real trees have a pleasant aroma and an appearance superior to fake ones, while their branches are much more durable, making it easy to put on decorations.

Diep’s imports last year had been positively received by the local market, giving her confidence that this year’s shipment would also sell like hot cakes.

Prices for a real Christmas tree can range from VND1.5 million ($66) to over VND20 million ($880) depending on its size, which can be anywhere between 1.2 meters and over five meters.

Diep said over 80 percent of her imports had already been sold, while the rest will be put on display at public areas for everyone to enjoy the Christmas spirit.

Other Christmas ornaments such as wreaths, baubles, decorative strings and Santa Claus statues are also selling fast across the southern hub, with prices being maintained at almost the same level as last year’s thanks to abundant supply.

Those with less time to shop for decorations can buy pre-packaged Christmas combos at the price of VND85,000 – 3 million ($3.74 – 132) each, which includes all ornaments necessary to lighten up one’s house for the season.

Christmas services see gold

Nguyen Hoang Ngoc, sales executive at an event management company in Ho Chi Minh City, said 60 percent of their Santa Clause impersonators had been booked for December 24 and 25.

Hiring a Santa Clause to host a Christmas event can set one back VND1 – 3 million ($44 – 132), while gift-delivering Santa’s are hired at around VND500,000 ($22) per three hours on average.

“The presents are prepared by the customers, as we only carry out the delivery,” Ngoc said.

Santa Clause costumes can also be rented at from VND150,000 ($6.61) per set a day, with deducted price for those renting for more than one day.

Source: https://tuoitrenews.vn/news/business/20171210/ho-chi-minh-city-residents-getting-in-christmas-spending-spirit/43085.html

Saigon tax man slaps Facebooker with $400,000 bill in rare online retail management victory

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Facebook is the most popular social network in Vietnam and an e-commerce platform that tax authorities have struggled to keep track of.

Ho Chi Minh City’s tax department has handed a bill of VND9.1 billion ($401,300) to a Facebook retailer in a rare successful attempt to levy sales on social media.

A source from the department said that the tax declaration submitted by the cosmetics retailer was millions of dollars short compared to information acquired from the retailer’s banks.

Le Thi Thu Huong, deputy director of the department, said the sum was the biggest amount ever to be claimed by her agency from an online retailer for tax evasion.

The department contacted nearly 13,800 Facebook accounts earlier this year asking them to pay tax for businesses they were running on the social network, but few complied.

Facebook is the most popular social network in Vietnam with more than 52 million active accounts, and is also used as an e-commerce platform that tax authorities have struggled to keep track of.

Vietnam levies a 0.5 percent income tax and a 1 percent value added tax on sales of more than VND100 million ($4,400) per year.

Local tax authorities have recently stepped up efforts to collect taxes from online businesses that use Facebook and other social media sites such as Instagram and YouTube.

Tax departments in both Hanoi and Ho Chi Minh City have sent out tax demands to around 27,000 Facebook retailers in a move to target tax avoidance by online businesses.

Online sales in Vietnam have expanded rapidly in recent years, currently accounting for 3.39 percent of the country’s retail market. The total retail market grew 10.2 percent last year to $118 billion, mainly fueled by a growing middle-class with expanding disposable incomes and an increasing number of internet users.

In an effort to minimize tax losses, the Ministry of Finance is considering a plan to impose value added tax and income tax on sales with a value of VND1 million ($44) upwards, or multiple sales of a lesser value.

Source: Thanh Le

Global brewers line up bids for Vietnam’s Sabeco sale: sources

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The auction of up to 54 percent of Sabeco offers brewers access to a fast-growing market with a youthful population and beer drinking culture.

Brewing groups including Thai Beverage, Anheuser-Busch InBev and Kirin Holdings are gearing up to bid for a stake in Vietnam’s largest brewer, Sabeco, people familiar with the matter said, with the $5 billion sale process by the government opening this week.

The auction of up to 54 percent of Sabeco, in what is set to be Vietnam’s biggest privatization, offers brewers access to a fast-growing market with a youthful population and beer drinking culture.

Thai Bev, controlled by tycoon Charoen Sirivadhanabhakdi, is shaping up as a strong contender, the people said, as it is familiar with the Vietnam system and sees Sabeco as key to expanding outside its home market.

“They have been around this situation for many years and are very keen to get this asset,” said one of the people, none of whom wanted to be named as they are not authorized to speak to the media.

Last month, a Thai Bev unit bought a 49 percent stake in a Vietnamese company which, the people said, could be used as a vehicle to bid for Sabeco as a domestic player, giving it an advantage over international rivals.

Thai Bev had no immediate comment, but said in October it was keen to grow through acquisitions in markets such as Vietnam. Firms controlled by Sirivadhanabhakdi also hold a 19 percent stake in Vietnam’s Vinamilk.

A spokeswoman for AB InBev, the world’s biggest brewer, said the company was committed to Vietnam and to growing its business for the long-term. A spokesman for Japan’s Kirin said it was carefully considering its options.

Other potential bidders include Asahi Group Holdings, San Miguel and Heineken, though several people said Heineken already had a strong business in Vietnam and could sit out an expensive auction that values Sabeco at about 36 times core earnings – more than double the trading multiples of around 15 for some global brewers, according to Reuters data.

Heineken, which already owns 5 percent of Sabeco, did not respond to requests for comment.

Asahi could not be immediately reached for comment, but the Japanese firm’s president told Reuters in September it was studying Sabeco.

San Miguel’s president Ramon Ang said the Philippine conglomerate was interested to bid for Sabeco. Kirin owns around half of its affiliate San Miguel Brewery.

The Sabeco auction is on December 18, and bidders who are keen to own a stake equal to 25 percent or more of Sabeco’s shares need to inform local authorities a week before the auction.

Ownership cap

Foreign ownership in Sabeco is limited to 49 percent.

That means overseas bidders can only bid for a minority stake of as much as 39 percent as foreign entities already own 10 percent.

Lack of control could put off some possible bidders, the people said.

“Having control of the business is very important for these international brewers because the multiple is very high. If you’re going to pay that much you want to be able to institute your plans,” said one of the people, who expected international firms to sell their own premium beers like Budweiser, Heineken and Kirin through Sabeco’s distribution network, in addition to Sabeco’s beers, which include the Bia Saigon and 333 brands.

Vietnam’s Ministry of Industry and Trade, which represents state shares in Sabeco, said foreign investors can link with Vietnamese firms to buy Sabeco shares, but have to comply with local laws and regulations.

Sabeco’s share price has nearly tripled since its listing a year ago, with analysts citing a small float as inflating its market value.

The brewer’s sky-high valuations and a complicated sale process could pose challenges for some potential bidders, the people said.

The Sabeco sale could also set the pace for peer Habeco, in which Danish brewer Carlsberg A/S owns 17.3 percent.

Source: Reuters