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.

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.

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

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.

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

Vietnam plans to raise over $570 million through IPOs in energy firms

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The three share sales are expected within three months, the government said.

Vietnam hopes to raise a total of more than $570 million by selling stakes in an oil refinery, an oil distribution firm and a power company, the government website said on Saturday.

The country has accelerated its privatization program in recent weeks, partly because of the need to fund a budget deficit and in the face of growing public debt.

Vietnam aims to raise at least $297 million by selling a 20 percent stake in PetroVietnam Power Corporation and at least $155 million by selling 7.79 percent of the Binh Son Refining and Petrochemical company, the government said.

In addition to the sale of those shares in initial public offerings (IPOs), the government said it planned to sell a 28.9 percent stake in the power company and a 49 percent stake in the refinery to strategic investors.

The government also approved an earlier planned IPO in oil distribution firm PetroVietnam Oil Corp (PV Oil), aiming to raise at least $122 million by selling a 20 percent stake.

The three share sales are expected within three months, the government said, without giving more precise details of the timing.

Last month, Vietnam unveiled plans to sell a stake of up to 54 percent, worth $5 billion, in the nation’s biggest brewer, Sabeco, in what is set to be the country’s largest privatization yet.

Source: Reuters

Saigon plans to double traffic fines to combat congestion and accidents

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The head of the city’s transport department says the increased fines are not aimed at boosting the city’s budget.

Ho Chi Minh City is deliberating a plan to double fines for traffic violations in an effort to sort out its streets and reduce gridlock and accidents.

According to the proposal, floated by the city’s transport department, drivers who park illegally or drive in the wrong lane, and contractors that do not clear barriers and signs from construction sites once work is completed, will all receive higher fines.

The plan, which was put forward at a meeting of the municipal legislative People’s Council on Monday, is to discourage drivers from violating the rules and has nothing to do with the city’s budget, Bui Xuan Cuong, the department’s director, told Tuoi Tre (Youth) newspaper on Friday.

3,960 traffic accidents were reported in the city last year, and 805 people were killed, up 5.54 and 14.6 percent, respectively, against 2015.

Part of the revenue from the increased fines will be used to train traffic officers, while the rest will be allocated to the city’s police and the National Traffic Safety Committee, he said.

The proposal will be open for public opinion.

Councilor Le Nguyen Minh Quang, head of the HCMC Urban Railway Management Authority, agreed with the proposal, saying that the current fines are too low.

“Traffic chaos worsens during rush hour as drivers ride onto the sidewalk and drive into oncoming traffic,” he said.

The city’s mayor, Nguyen Thanh Phong, said in August that up to 7.6 million motorbikes and 700,000 cars were being used in the city.

Traffic congestion has plagued HCMC for a long time, so the city has been trying to find different ways to deal with the problem.

Aside from building overpasses, its latest effort is a plan to impose a congestion charge in the center during rush hour to restrict the number of four-wheel vehicles.

When the plan was rolled out in September, it said the charge could come into force at the same time the city’s first metro line is launched in 2020.

In July, the city came up with a roadmap to limit private vehicles. But Cuong, the transport director, said that the city would not ban motorbikes before 2030.

Source: Staff Reporters

Nielsen: Smartphone growth continues upwards

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Recently-released Nielsen Vietnam Smartphone Insights Report 2017 reveals latest trends in smartphone use around the country.

Growth in the number of smartphone users in Vietnam continues, with rural smartphone users reaching up to 68 per cent of mobile phone users, according to the latest Nielsen report released on November 24.

According to the Nielsen Vietnam Smartphone Insights Report 2017, the number of people using smartphones among mobile phone users enjoyed growth of 84 per cent in 2017, compared to 78 per cent in 2016.

In secondary cities, 71 per cent of local people use a smartphone among 93 per cent of people using mobile phones. More notably, in rural areas, while 89 per cent of the population owns a mobile phone, 68 per cent possess a smartphone.

“The rapid up-take of connected devices, especially smartphones and tablets, is inevitable in Vietnam,” said Mr. Doan Duy Khoa, Director of Consumer Insights at Nielsen Vietnam. “This could correspond with the fact that smartphone brands are offering consumers abundant choice at an affordable and reasonable price. Another reason is that consumers are enjoying increasing standards of living and expressing their desire for connectivity anywhere, anytime.”

Nielsen conducted another study earlier this year in cooperation with Younet Media to shed light on evolving trends in rural consumption. The study revealed that social media has emerged as one of the key platforms for obtaining information, being entertained, and keeping in touch with family and friends, with 22.5 million Facebook users compared to 23.5 million Facebook users in urban areas.

“This plays an instrumental role in media consumption shifting beyond traditional media formats such as broadcast and cable TV, and also beyond traditional time parts,” said Mr. Khoa. “For media owners and advertisers, it is becoming increasingly important to understand both urban and rural consumers’ viewing habits in order to deliver the right content at the right time.”

The Nielsen Vietnam Smartphone Insight Report, which looks at the market landscape, smartphone brand performance, and smartphone use and attitudes, reveals major trends on smartphone penetration, segment movement, product life cycle, purchasing factors, brand satisfaction, and expectations from consumers towards a brand.

A sample of 1,882 frequent online users in key cities, 1,930 users in secondary cities, and 2,027 users in rural areas aged 16 years or older and who used the internet in the last month were captured using online survey methodology.

Source: http://www.vneconomictimes.com/article/business/nielsen-smartphone-growth-continues-upwards

Small change or candy? Debates spark as Vietnam’s long lost smallest banknote reemerges

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The next time you are offered one or two tiny pieces of candy in lieu of small change from a supermarket or grocery store in Vietnam, insist on getting the banknotes, no matter how small the denomination.

Vietnam’s biggest banknote

is the VND500,000 bill, equal to US$22, while those with smaller face values, such as VND200 and VND500, are often ignored or considered nearly worthless.

That attitude has led to retailers, ranging from supermarkets to sidewalk stalls, offering candy in place of small change.

Unbeknownst to many, however, is that the lowest value Vietnamese banknote in circulation is actually VND100, a fact that sparked serious debate when the ‘forgotten’ bill grabbed headlines following a ‘tollgate scandal’ in southern Vietnam.

Vietnamese dong with small face values and their issuing dates. Photo: Tuoi Tre

Surprise comeback

In a show of protest against what many believe is an unfairly positioned toll station in Tien Giang Province, many drivers chose to pay the VND25,000 toll fee with VND25,100 before insisting on receiving their VND100 change.

The Cai Lay toll station was forced to temporarily shut down after failing to meet the demand, due primarily to the fact that the VND100 banknote has been effectively absent from circulation for nearly a decade.

The situation led the State Bank of Vietnam, the country’s central bank, to issue a statement asserting that the VND100 bill is still valid as legal tender and immediately provided a huge stock of the banknotes to the operator of the contested tollgate.

The 100 dong bill is currently listed in the “Vietnamese banknotes” section of the central bank’s official website.

A driver (right) poses with a VND100 bill he receives from the Cai Lay tollgate. Photo: Tuoi Tre

Currency is national sovereignty

Protests at the toll station are one issue, but the refusal of many businesses to use banknotes with small face values is becoming a hot topic across the country.

Many businesses employ a ‘candy as change’ policy that many local consumers oppose, yet still accept rather than waste energy on insisting they be given a VND200 or VND500 banknote.

However, with the ‘return’ of the VND100 banknote, a call to end the policy is beginning to circulate amongst the public.

Those who welcome the low value notes say the issue runs deeper than just what one can buy with 100 Vietnamese dong, or 1/220 of a U.S. dollar.

“In other countries businesses are expected to give every single cent of change back to customers. This shows respect for that nation’s currency,” one reader wrote on news outlet VnExpress.

The 100 dong banknote is seen in this photo taken from the website of the State Bank of Vietnam.

Many countries also have laws against destroying national currency or refusing to pay in the national currency on home soil.

“National currency is a designation of a country’s sovereignty, aside from its national flag and official name,” Assoc. Prof. Vo Tri Hao, told Tuoi Tre (Youth) newspaper.

In Vietnam, the erstwhile Penal Code 1985 criminalized such activities, but the current law only slaps a civil fine on violators, according to Hao.

“Money, of a small or large denomination, is national currency and no one is allowed by law to refuse payment in small change,” Hao underlined.

The professor added that those drivers who protested the Cai Lay tollgate will not be fined, because “it is those who refuse to use small change, such as supermarket cashiers or tollgate attendants, are the real law offenders.”

“There are no legal documents that ban the use of small change in payment,” he added.

Source: Tuoi Tre News

 

​Vietnam struggling to force Internet giants to pay local taxes

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Industry insiders and experts are calling on the government to rewrite local tax rules to force major Internet companies to pay tax on profits they make from the Vietnamese market.

As more and more Vietnamese holidaymakers get used to booking their trips online, hotel booking platforms such as Agoda and Booking.com earn hundreds of millions of U.S. dollars per year in the country.

Making it a win-win for these international companies is the fact that they do not have to pay taxes, with the responsibility shouldered by their Vietnamese partners due to loopholes in current tax rules, according to pundits.

Understanding ‘foreign contractor tax’

It’s essential to understand ‘foreign contractor tax’ in Vietnam before digging deeper into the issue.

Foreign contractor tax consists of value-added and corporate income taxes, with rates set by tax authorities depending on the type of services.

The current rate is 5 percent for both value-added and corporate income tax for foreign companies that generate income via services offered in Vietnam.

When a Vietnamese entity contracts a foreign party that does not have a licensed presence in Vietnam, the payment the contracting party makes to the contractor is subject to foreign contractor tax.

As the contractor does not have a legal presence in Vietnam, the contracting party has to pay the tax on its behalf.

The Vietnamese entity can offset this obligation by deducting the foreign contractor tax when calculating the payment it has to make to the contactor.

For example, if a Vietnamese company has to pay a foreign contractor of $1,000, the foreign contractor tax will be $100.

According to the law, the Vietnamese company must negotiate the payment at $900, setting aside the $100 to pay the local taxman.

However, local hotels have claimed that it is not so easy to do so when working with companies like Booking.com.

Two tourists look up information on online booking platforms prior to taking their trip to Da Nang. Photo: Tuoi Tre

Local firms take the burden

Booking.com, which is based in the Netherlands, collects a 20 percent commission from Vietnamese hotel owners on every room booked through its platform, and this income is subject to foreign contractor tax.

However, Pham Ha, CEO of Luxury Travel, said Booking.com will not accept the tax deduction by its Vietnamese partners, saying it should enjoy a tax exemption thanks to a double taxation avoidance agreement between the Netherlands and Vietnam.

The online platform will regularly threaten to cease their partnership if Vietnamese companies insist on the deduction, Ha said.

“Many local companies have been forced to use money from their own pocket to pay the taxes, fearing that the contract termination with Booking.com will affect their sales,” the insider said.

“This is a double whammy for Vietnamese companies as they already have to pay their own corporate income tax. “

Pham Xuan Anh, chairman of Viet Excursions Co., confirmed the phenomenon that Vietnamese companies have no choice but to pay the tax for Booking.com, as the online service insists they receive a 20 percent commission without tax deduction.

“Some Vietnamese companies have to accept smaller profits as they have no other choice,” Anh said.

Tax losses

Le Dac Lam, CEO of the hotel booking website Vntrip.vn, said revenue from the Vietnamese hotel sector is expected to reach US$21 billion by 2020, with 50 percent, or $10.5 billion, coming from online booking platforms.

Supposing that domestic tourists contribute 50 percent of the revenue, online booking companies will rake in approximately $1.25 billion, which leaves a significant amount of tax Vietnam is unable to collect.

Lawyer Tran Xoa, principal at the Minh Dang Quang law firm, said many Internet companies have taken advantage of loopholes in current tax rules, including the double taxation avoidance agreement, in order to avoid paying foreign contractor taxes on incomes generated in Vietnam.

According to the law, a foreign company is still recognized as not having a permanent presence in Vietnam even when it has a representative office or a subsidiary in the country.

Booking.com or Uber have said they only work with local hotels and drivers rather than having a presence in the country, so they should be able to enjoy the tax exemption.

Source: Tuoi Tre News

​Ho Chi Minh City to auction landscaping contracts

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Authorities in Ho Chi Minh City plan to open bidding on contracts for the management and maintenance of green trees across the metropolis.

Deputy Chairman of the municipal People’s Committee Tran Vinh Tuyen recently approved auctioning contracts in order to select suitable contractors to care for trees in 12 out of 24 districts in the southern city.

The plan will take effect on January 2, 2018.

Areas included in the scope of work include District 2, District 7, District 9, District 12, Tan Phu District, Tan Binh District, Thu Duc District, Hoc Mon District, Cu Chi District, Binh Chanh District, Nha Be District, and Can Gio District.

Bidding for tree management in Tao Dan, Gia Dinh, and Le Van Tam, three of the city’s major parks, will begin in the second quarter of 2018, following flower festivals and markets held in the parks in celebration of the Lunar New Year holiday in mid-February.

City officials will evaluate the effectiveness of the maintenance plan after the first year in order to determine whether it should be conducted in the remaining districts, Tuyen said.

The municipal Department of Transport will be charged with the process, the official continued.

The management and maintenance of green trees in Ho Chi Minh City was previously overseen by Greenery Parks Company and a local public services firm.

However, an unofficial auction of the management tasks was carried out and several other organizations now oversee the process.

Source: Tuoi Tre News

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