​Vietnamese official fined over $24k for villa construction violations, late tax payment

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An official has been fined over US$24,000 for violations in the construction of his villa complex in northern Vietnam and failure to pay tax on time.

The People’s Committee in Yen Bai Province on Saturday submitted a document to the prime minister and government inspectorate to report on a decision regarding the villa complex of Pham Sy Quy, former director of the province’s Department of Natural Resources and Environment.

Quy was fined VND507 million ($22,336) for multiple offenses, including going against the building permit and carrying out some constructions without formal permission from competent agencies, Ta Van Long, vice-chairman of the Yen Bai administration, told Tuoi Tre (Youth) newspaper.

He was also required to pay an additional VND50 million ($2,202) for late tax payment, Long added.

Quy is, however, allowed to keep the status quo of his imposing residence, the vice-chairman noted.

“In order to reach the decision, the administration had consulted the Ministry of Transport and some other agencies. Based on their feedback and current regulations, the administrative fines were given appropriately,” Long elaborated.

In late October, Quy was stripped of his post as head of the provincial environment department as a punishment over his failure to fully declare his assets.

He was then transferred to the position of a deputy head of the Yen Bai People’s Council Office.

The official made headlines in June after his family was found owning a 1.3 hectare villa complex in Yen Bai City, which is the provincial capital.

The official claimed that he had borrowed about VND20 billion ($887,000) in bank loans, another sum from friends, worked side jobs, and saved since he was young in order to build the property.

According to the results of a four-month investigation by the Government Inspectorate, Quy had not declared several portions of his assets since 2014, in violation of Directive No. 33 of the Politburo.

In Vietnam, officials are required to write down a list of assets they own in their profiles.

The inspection also revealed several violations regarding the construction of the villa complex.

Alongside the penalty for Quy, the Yen Bai People’s Committee also mentioned the punishment for 14 other individuals, namely officials and public servants at the tax department and other offices in Yen Bai City, for being involved in the violations.

Tran Xuan Thuy, chairman of the Yen Bai City People’s Committee and his deputy, Nguyen Yen Hien, were previously reprimanded for allowing the wrongful construction to continue at Quy’s villa complex.

The base salary of a public servant in Vietnam now sits at VND1.3 million ($57) a month.

Allowances for duty, ranking, seniority, positions, and others will be added when a civil servant’s pay is calculated on the basis of their salary bracket, governed by the government.

Many working in the public sector say they make ends meet with such salaries.

Source: Tuoi Tre News

Hanoi gets its first McDonald’s as influx of western fast food chains continues

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The fast food industry in Vietnam has seen double-digit growth annually for the past five years.

Global burger behemoth McDonald’s opened its first branch on Saturday in the historic heart of Hanoi, a conservative city renowned for its traditional — and cheap — Vietnamese staples beloved by food-obsessed locals.

Hungry customers lined up for Big Macs and Chicken McNuggets at the Vietnamese capital’s first location overlooking the tree-lined Hoan Kiem Lake, which draws millions of tourists annually to see French-era colonial buildings and sample street-food favorites like pho noodle soup and banh mi sandwiches.

The restaurant is the first outside of the southern commercial hub Ho Chi Minh City, where 16 branches have opened since McDonald’s first came to Vietnam in 2014 to much fanfare, especially among the rapidly-growing middle class and American-obsessed youth.

The global fast food chain received a similarly warm welcome in Hanoi on Saturday, as hungry diners crammed into the two-storey eatery for a first taste of the Golden Arches.

For 84-year-old Tran Dinh Luyen, who fought against the U.S. in the Vietnam War, the restaurant was a sign of warming ties with a former enemy.

“I am happy that McDonald’s has opened a restaurant in Hanoi. It’s a very famous American brand, so it shows how far U.S.-Vietnam relations have come,” he told AFP after mowing down on a Big Mac with his daughter and granddaughter.

But not everyone agreed.

“It’s a rip-off … this fast food is for kids only, it’s not good at all,” 90-year-old Ta Xuan Huong said, espousing his love for traditional cuisine.

Some curious tourists stopped to see what all the fuss was about, perplexed that a brand ubiquitous in the West would draw so much attention.

“It’s kind of random to see McDonald’s opening… it’s an interesting cultural experience to see how important it is that the store is opening here,” American Dan Moore told AFP, after his wife remarked she might not have expected to find one of the most salient symbols of capitalism in the country.

Vietnam has seen dizzying economic growth in recent years as it has opened its doors to foreign investment — which has included an influx of western chains like Starbucks, KFC and Burger King.

Growth in the fast food sector has been buoyed by rapidly rising incomes — annual per capita income has more than doubled in the past decade to about $2,200 today — especially among under-30s, who make up half of Vietnam’s population of 93 million people.

The fast food industry in Vietnam has seen double-digit growth annually for the past five years, and the country has the highest 2017 growth in Asia-Pacific for fast food chains, according to market research firm Euromonitor International.

Though meals can cost as much as three times the local fare, customers are still showing strong appetite.

“Young people like to hang out in fast food restaurants as they are seen as a cool and nice place … and these customers also like the taste of the food,” Euromonitor analyst Samuel Huynh told AFP.

Source: AFP

Hanoi set to replace wartime loudspeakers with smart devices

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The capital’s residents find the loudspeakers obsolete in the digital age and, well, too loud.

Hanoi’s government has kickstarted a plan to switch its public communication methods from loudspeakers to modern internet devices.

The switch will be tried first in three districts Ba Dinh, Hoan Kiem and Cau Giay, where around 250 selected families will be given access to communication devices connected to the internet, the city government said in a statement issued on Friday.

Digital information screens at apartment buildings or cell phone messages will be among the alternatives.

Feedback obtained from the trial will decide if the program should be expanded or adjusted.

The loudspeakers in Hanoi date back to the 1960s and 1970s when they delivered air raid warnings during the U.S. – Vietnam War. But they have become unpopular in the digital age, when people consider them too noisy and redundant.

Hanoi government has expressed its intentions to completely phase out its loudspeakers, but a specific timeframe has not been set.

In August, the city’s chairman Nguyen Duc Chung approved a plan to restructure the broadcasting system, silencing the loudspeakers in four downtown districts Ba Dinh, Dong Da, Hai Ba Trung and Hoan Kiem, except only when the city has to deal with emergencies such as natural disasters or outbreaks of disease.

Speakers in the rest of the capital have continued to broadcast extra information about military enrollment, vaccinations and pension payments, but the city has cut off those standing near schools, hospitals, diplomatic agencies and neighborhoods inhabited by old people or foreigners.

Their broadcasts now only take place on weekdays, and last for 30-90 minutes per day.

Source: Vo Hai

Nha Trang streets flooded as heavy rain drenches the popular beach town in south central Vietnam

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Many residents had to move to higher grounds as some areas were under 2 feet of water.

On October 23 Street, a key road connecting downtown Nha Trang with Dien Khanh District and National Highway 1A, traffic police had to put up warning signs as most vehicles attempting to pass through would find their wheels completely underwater. “This morning I went to deliver goods to a client in Cam Lam District. The road was still normal back then but when I go back in the afternoon it’s already flooded. My car managed to drive for a short distance but then the engine died,” driver Nguyen Van Phuong said.

Some locals had to travel around by boat.

After seeing many motorbike engines die from flood water, Nguyen Van Chien decided to block his motorbike’s exhaust pipe. “This way water won’t be able to get in. I just need to walk it through the flooded section then I can ride it as normal,” he said.

Thuy, 34, was picking her son up from school when her motorbike’s engine died. Unable to walk the motorbike all the way home with her son on it, she eventually had to let the boy wade through the flood water on foot.

Many people hired freight tuk tuks to transport their motorbikes through flooded areas for VND50,000 ($2.2).

With the sidewalk flooded, customers at this noodle stall had to eat while standing or sitting in uncomfortable positions. “I already cooked a lot of fish noodle in the morning so I’m trying to sell them all to break even,” the vendor said.

Since his rented house in Vinh Hiep Commune had been flooded, this foreign man had to pack up and move to a higher area.

Khanh Hoa Provincial Steering Committee for Natural Disaster Prevention and Control, Search and Rescue said reservoirs in the province have been filling up after days of heavy rain, forcing some to discharge water. Cai River’s water level is therefore expected to reach level 3, the highest level of emergency.

Heavy rain also caused a landslide on Cu Hin Pass, according to Ngo Khac Thinh, deputy head of Nha Trang’s Urban Management Division. Traffic between Nha Trang and Cam Ranh Airport has therefore been jammed.

Another landslide also occured on National Highway 27C connecting Nha Trang and the Central Highlands’ resort town of Da Lat. Noone was injured by the landslides.

Khanh Hoa Province was among the hardest hit by Typhoon Damrey last month, which killed 45 people, destroyed 3,000 houses, damaged 12,000 houses and destroyed thousands of fish farms in the province. Local statistics estimated that the typhoon had caused nearly VND15 trillion ($661.5 million) in damages to the province.

Source: Xuan Ngoc

High-ranking officials punished as Ho Chi Minh City prepares for personnel reshuffle

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The city’s Party chief says a shake-up is needed to make the most of its greater autonomy.

Ho Chi Minh City has punished 15 officials for sub-par performances as it takes steps to clean up its political system and embrace the new power it has been granted as the country’s top economic driver.

The city’s Party unit, its most powerful agency, announced the list of senior members that have received reprimands and warnings for violations that caused losses to the Party on Friday. Vietnam’s Party has four levels of punishment, and repeated or serious offenses are subject to demotion or expulsion.

Most prominent on the list was Tran Trung Dung, deputy head of the Party unit’s Organizing Commission, an advisory body mainly tasked with nominating and approving the appointment of officials in the city.

Dung, together with Le Trong Sang, the head of the city’s business innovation board and Huynh Tan Dung and Luong Thi Toi from the city’s labor department were criticized for the method in which they had nominated and appointed officials.

Their poor leadership had allowed their subordinates to commit “serious” financial violations, it said, without specifying further.

Five current and former members of the Party Committee of the Central Business Sector in HCMC and three key members of the Ministry of Construciton’s Party unit in the city were also punished for improper use of funds and assets.

In District 7, where a new urban area has been rising in recent years, a group of officials were criticized for poor land and construction management, and failing to stop illegal encroachment at two major projects that caused public anger.

Nguyen Thien Nhan, the city’s Party Secretary, addressed the decision at a meeting on Saturday, saying it was a “painful but fair” thing to do.

Nhan said the city will continue its restructing efforts to become more effective and make the most of the new privileges it has been granted.

Vietnamese legislators last month agreed to give Ho Chi Minh City, the country’s economic center, more autonomy to boost its development.

The decision will allow the city to make its own decisions on areas such as land management, investment and public spending from mid-January for at least five years.

The city will be able to raise special consumption and environmental protection taxes on certain products, though it will still have to consult the central government. It will also be able to set special salaries for industry experts and scientists, and raise salaries in the public sector as it sees fit.

Nhan said that the new power also means new challenges and demands.

The city will carry out a series of “personnel reshuffles in certain offices” by the end of the year to make sure it is ready for the bigger role, he said.

Ho Chi Minh City is among just 20 percent of cities and provinces in Vietnam that can cover their own expenditures and contribute to the national coffers. It was the country’s largest moneymaker last year, earning more than VND306 trillion ($13.48 billion), up 12 percent from 2015. It also accounted for 28 percent of all state budget contributions, according to its finance department.

Source: Thien Ngon

Fried Hanoi catfish worth traveling across the world for, says Bloomberg

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Pan-fried squares of sizzling fish with dill, onion, turmeric and galangal: What are you waiting for?

There’s a no-frills diner in Hanoi that’s been serving just one special dish for nearly 150 years: catfish.

It is possibly the finest and tastiest catfish in Vietnam and has amazed scores of local diners and tourists, as well as now it seems, Bloomberg writers.

The U.S. news site recently published a list of 12 restaurants “worth traveling across the world to experience”, and “Cha Ca La Vong” in Hanoi was among them.

Pan-fried squares of sizzling catfish made vibrant with the flavors of dill, onion, turmeric and galangal await diners from both near and far.

When the restaurant opened in 1871 as a rebel hideout during French colonial times, the owners decided to name it after Jiang Ziya (La Vong in Vietnamese), a Chinese noble who fished with a bare hook and helped King Wen of Zhou overthrow the Shang Dynasty.

The restaurant sits at 14 Cha Ca, the street subsequently named after the popular dish, in Hoan Kiem District.

Bloomberg said notable chefs such as James Beard Award winner Chris Shepherd from Houston have traveled to sample the fish there.

“It’s a very DIY experience,” the site added.

Diners sit at a communal table with a skillet set up over a burner. Turmeric-marinated fish is added to sizzling garlic oil, and then dill and shrimp paste is tossed in.

The diners’ job is to add herbs, marinated hot chilis, peanuts and vermicelli, which are all laid out on the table.

Catfish is pan-fried with dill and other herbs at Cha Ca La Vong in Hanoi. Photo by Quynh Trang

There are now around 15 restaurants specializing in the dish in Hanoi. The original Cha Ca La Vong has also opened a bigger outlet at 107 Nguyen Truong To in Ba Dinh District, where diners should expect to pay around $8 per head.

Hanoi’s “cha ca” shares the must-try collection with another restaurant famous for a legendary fish dish in Spain, a three-Michelin-star restaurant in Norway, a “farm to table” restaurant in California, a restaurant with “an impossibly scenic setting” in Maine, a throwback dining room serving local and home-made seafood in Canada, a renowned sushi restaurant in Japan, and other remarkable dining rooms in Austria, Bolivia, France, New York and Sri Lanka.

Bloomberg said that a restaurant bucket list sounds like a clichéd concept, but there are places “that were so good we want to shout about them.”

If you’re already in Hanoi, don’t bother globetrotting and indulge in a steaming skillet now.

Source: https://e.vnexpress.net/news/travel-life/food/fried-hanoi-catfish-worth-traveling-across-the-world-for-says-bloomberg-3678055.html

Vietnam: High cost of Sabeco shares makes its Dec 18 sale unpredictable

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Vietnam has picked a record high price for Saigon Beer’s share sale this month – at VND320,000 ($14) apiece – which has made it one of the most unpredictable share disposals.

The brewer, also known as Sabeco, will sell a 53.6 per cent stake on December 18, hoping to raise almost $5 billion for the state. This is the country’s biggest and most anticipated stake sale, nine years after Sabeco was privatised. The company currently enjoys a $9 billion valuation, making it Vietnam’s second largest listed company after Vinamilk.

The company went public late in 2016, and its rocketing stock price has become a debate since then. Sebaco’s shares have jumped 65% for the year to date, and market analysts are of the opinion that high prices are due the fact that only a limited number of its shares are currently available for trading.

After the government announced the starting price of VND320,000 for the public auction of Sabeco’s shares, the stock has continued to grow, and was at VND330,000 as of Friday.

While the increase in price is beneficial to individual and financial investors, many experts have asserted that it does not truly reflect the business.

The success of this divestment appears to be unpredictable because the price is 73 per cent higher than that suggested by advisors for the deal – besides, it has has raised questions as to who would buy such a huge amount of shares.

“If the state really wants to open up Sabeco to private, overseas investors, it should have selected a more realistic price,” said an analyst who requested anonymity. Sabeco is currently the most expensive stock on the local market. Its P/E ratio is around 45x compared to the average of industry peers at 22x. It is also more expensive than Vinamilk, Vietnam’s biggest listed business, which is traded at some 32x, according to Kevin Snowball, CEO of PXP Asset Management.

In a note last week, Bernstein’s Trevor Stirling reportedly pointed out that the high price that translates to an EBITDA multiple of 30-fold could “inhibit interest… from the more economically rational”.

“Unless a foreign acquirer can achieve effective majority control by partnering with a local investor, which could be tricky to structure, we expect synergies will be minimal,” Bernstein was quoted as stating by portal Just-Drinks. The portal also said that in comparison, Japan’s Asahi last year paid around 15x EBITDA multiple for SABMiller’s European brands Grolsch and Peroni. Just last year, Vinamilk failed to sell the entire lot of its 9 per cent offer, seeing only Fraser & Neave purchasing 5.4 per cent. The was attributed to the tiny fraction of shares rather than an unrealistic price. Yet, it shows that past transactions have recorded undersubscribed sale.

This time, even as the 53.6 per cent stake of Sabeco is substantial, overseas investors will not be able to get a controlling interest in the brewer as foreign ownership limit is still capped at 49 per cent, and the government has said there are no immediate or future plans plans to raise this limit.

Currently, Vietnam’s Ministry of Industry and Trade owns 89.6% of the shares in the company. Even as it plans to sell 53.6% stake in the company, this implies that international investors can buy a maximum of 38.59% in Sabeco, as Heineken and other foreign players already hold around 9%.

Meanwhile, potential buyers for this deal are deep-pocketed strategic investors who want to solidify their presence in the industry.

However, some are believers of a successful auction, which will attract aggressive investors who would accept any price to acquire a meaningful stake at Sabeco, given the market perspective of over 90 million population with increasing consumption, and a dominant market share owned by the firm.

The biggest Vietnamese brewer currently has more than 40 per cent market share, followed by Heineken (28 per cent), which is also Sabeco’s 5 per cent shareholder.

Filipino beverage firm San Miguel has said that it would join the Sabeco auction, according to a Reuters said. In addition to the existing shareholder Heineken, several other prospective bidders include Belgium’s AB InBev and Japan’s Asahi and Kirin are also reportedly interested in the deal.

Nguyen Thi Bich Ngoc

Source: https://www.dealstreetasia.com/stories/vietnam-success-unpredictable-for-sabecos-5b-share-auction-on-dec-18-87609/

Vietnam learns from us; we can do same

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At a sidewalk cafe overlooking the leafy streets of Hanoi , my friend Thao and I share bowls of bun cha, a grilled pork and noodle dish for which this northern Vietnamese city is famous. We talk of our dreams and plans, as motorbikes clog the streets alongside us, rushing home as dusk falls In this 1,000-year-old city.

Here Chinese bridges link pagodas lining placid silver lakes. Crumbling Gallic buildings, strong cheeses and rich pastries recall the era of French colonialism. Stark Soviet-built apartment blocks and the ubiquitous statues of Ho Chi Minh serve as constant reminders of communism. It seems I am as far as can be from the raw hardscrabble Oklahoma red-dirt prairie towns where my parents grew to adulthood during the Great Depression.

And yet as I made friends among the professors and students at the Hanoi University of Mining and Geology where I taught last year, I felt I was hearing again the stories of my parents, retold on a different continent. Many of the values we admire in the Greatest Generation, who survived the Great Depression and World War II, now flourish in Vietnam.

Like the Greatest Generation, Vietnamese have lived through war and its aftermath, fighting what they called the American War on their own soil. The older generation, including many women, served as combat veterans. I was surprised when visiting a village where those damaged by dioxin (Agent Orange), were treated, to be greeted by so many women who had carried guns through the jungle.

The Vietnamese battled the austerity of the post-war period, when food was scarce and living was harsh in a manner similar to our own Great Depression. Although those shortages are a thing of the past, the processed and fast food on which Americans are so dependent is practically nonexistent in Hanoi. Ingredients are fresh and food cooked on the spot. Obesity isn’t an issue. And unlike our culture of drive-through eating, Vietnamese rarely dine alone. Even weekday lunches are two-hour social affairs. The wholesome local food culture Americans long for with such nostalgia flourishes in Vietnam today.
Those looking for more traditional moral values can find them in Vietnam. Drug abuse is a rarity, and none of my students even admitted trying marijuana. You wouldn’t either. Drug penalties are draconian, with death by firing squad a common punishment for those possessing large amounts. More minor offenses lead to mandatory incarceration in rehab facilities, which combine cold turkey withdrawal with hard labor. Violent crime is rare, and gun laws are some of the strictest on the planet. Terrorism is unknown.

Although the midnight curfew was lifted this year in Hanoi, the streets generally are quiet by 10 p.m., perhaps from years of habit or because the city rises early, with many Vietnamese hitting the pavement by 4 a.m.

And while Vietnam often is ranked at the top of the most atheist countries, that seems to more a matter of slippery definitions than reality. Almost all practice ancestor worship and believe in spirits, and shrines to the spirits of trees are common on city streets. Although there may not be a belief in a western concept of a deity, life is shot through with spirituality. Divorce is rare. Confucian morality makes family the center of life. Upon returning to the States, one of the things that stood out most was the lack of children. In Vietnam, children are everywhere. They walk to school alone and play outside after dark as in an America of days gone by.

Neighbor helping neighbor still is reality as is hospitality to foreigners. When I arrived in Hanoi on a weekend and found my credit cards cut off because of “suspicious activity,” my taxi driver, Tuan, loaned me money until I could work things out with my bank.

“This is enough for 15 bottles of water and two meals, “ he told me, counting out the bills with the carefulness of one used to watching his money, and shoving them into my hand. “If you need a place to stay, you can sleep at my parents’ house.”

Just as our Greatest Generation experienced more buying power and an expansion of their horizons in post-war years, so do the Vietnamese today. As Westernization takes hold, young people sport designer sunglasses and American and European clothing brands. Hanoians take pride in their new malls, high-rises, and swank apartments. Many are buying cars for the first time. Travel abroad is a possibility, with vacations in Thailand and conferences in Singapore and China, and even study abroad in Europe. They often work several jobs, save like mad, and put their hopes into their children’s education, as parents in 1950s America did.

When I think of my father, selling his saddle and leaving the Oklahoma farm to work his way through college doing construction, eventually earning a Ph.d, I see my Vietnamese friends. While they look to America, admiring our prosperity, our educational system, and our freedoms, I look up to them. Their hope, tenacity and care for one another are qualities we would do well to recapture in our own national life.

Mary Lee Grant, a former Caller-Times reporter, is director of finance and coordinator for Amazonian programs for the Peru-based non-Profit, CERSI. She taught English and history at the Hanoi University of Mining and Geology in Hanoi, Vietnam.

 

Source: http://www.caller.com/story/opinion/forums/2017/10/19/vietnam-learns-us-we-can-do-same/779728001/

Southern Vietnam tollgate shuts down over repeated opposition from drivers

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A toll station belonging to a BOT (build-operate-transfer) project in southern Vietnam was forced to shut down again due to fierce opposition from commuters on Thursday, after a three month closure for the same reason.

The Cai Lay toll station on the section of National Highway 1 running through Cai Lay Town in the Mekong Delta province of Tien Giang resumed operations on Thursday morning following a three and a half month shutdown.

A BOT project upgrading the section of highway and building a detour across Cai Lay Town at a cost of VND1.389 trillion ($61.1 million) is currently operating the facility.

Drivers prepare small denomination banknotes to pay their toll.

BOT is a project-financing framework in which the developer receives a concession from the private or public sector to finance, design, construct, and operate a facility for a certain period, during which it can raise finances and retain all revenues generated by the project.

The facility is then transferred to the public administration at the end of the concession agreement.

At round 12:45 pm, three hours after re-opening, the tollgate was forced to close after too many drivers paid the fee in small denomination banknotes as a show of protest.

The station resumed operations at around 3:35 pm before being forced to cease the toll collection at 4:50 pm for the same reason.

Chaos occurs at the toll station on November 11, 2017 as drivers express their opposition.

At around 1:30 am on Friday, a group of commuters changed their protest tactics; this time requiring attendants to give them back VND100 in change.

As the smallest denomination note, the VND100 bill is effectively never used by members of the public, despite its validity.

Consequently, the employees did not have enough VND100 banknotes and were once again forced to close the facility for a third time since reopening it on Thursday.

The repeated incidents caused traffic backups from Ho Chi Minh City all the way down to the Mekong Delta city of Can Tho.

Police officers at the toll station

Ineffective measures

The Cai Lay toll station was first put into operation on August 1 despite fierce opposition from drivers over the tollgate being placed on the existing highway instead of the new detour.

The location of the tollgate means that a fee is collected regardless of the route chosen by drivers, rather than only being collected from drivers wanting to use the new detour.

Commuters believed that paying their regular road maintenance fees would give them the right to travel on the upgraded national highway without paying tolls.

Following continuous objection, the toll station was temporality shut down on August 15.

The Ministry of Transport later announced that the facility would not be relocated. Instead, the toll rate would be decreased.

The new fees now range from VND25,000 ($1.1) to VND140,000 ($6.17), about 30 percent lower than the original rates, said Nguyen Phu Hiep, director of the National Highway No.1 Tien Giang Investment Company, developer of the road project.

On the Thursday reopening, security guards and traffic police officers were mobilized near the tollgate to prepare for potential disorder.

Vehicles rush through the station following its shutdown on the early morning of November 12.

Developers also reserved two areas covering 800 square meters at the toll station for drivers wishing to pay in small change.

However, the preventive measures proved ineffective against commuters’ refusal to follow the directions.

Police also apprehended two drivers, Nguyen Minh Trung and Trinh Hong Phuong, for stirring public disorder.

Trung and Phuong were released on the same night and are expected to be summoned again on Saturday.

Source: Tuoi Tre News

Vietnam’s PV Oil hoping to strike it rich with $92 million share sale in January

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The sale is part of Vietnam’s broader privatization program that seeks to divest from hundreds of state-owned firms.

Vietnamese state oil distribution firm PetroVietnam Oil Corp (PV Oil) plans to offer 20 percent of its shares in an initial public offering (IPO) in January that aims to raise at least $92 million, its parent firm said on Friday.

PV Oil will also offer up to an additional 44.72 percent to strategic investors and another 0.18 percent to employees, state oil and gas group PetroVietnam said on its website.

The sale is part of Vietnam’s broader privatization program that seeks to divest from hundreds of state-owned enterprises to improve their performance and to help raise funds for the tight state budget that is struggling to support growth.

The government plans to reduce its stake in PV Oil to 35.1 percent, PetroVietnam said. Nineteen companies have submitted applications to become strategic investors, three quarters of which are foreign, the firm added.

PV Oil is Vietnam’s sole crude oil exporter and among the country’s top oil products retailers with a 22 percent market share, the company said on its website.

PV Oil is one of several state energy firms earmarked for privatization, along with PetroVietnam Power Co and refinery operator Binh Son Refining and Petrochemical Corp (BSR), whose IPO is also targeted for January at the latest.

PV Oil said earlier this year its first half pre-tax profits reached an estimated VND202 billion ($8.89 million), down 6 percent from the same period in 2016, while its revenue rose 43 percent on-year to VND23.4 trillion.

Source: Reuters

Natural disasters cost Vietnam $2.3 billion from Jan-Nov: report

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The losses, including 390 people dead or missing , have already surpassed last year’s numbers.

Vietnam has suffered deadly and expensive damage from natural disasters this year, as floods and typhoons challenged the country’s limited defenses.

A report from the General Statistics Office said natural disasters, mostly flooding and tropical storms, left 390 people dead or missing in Vietnam in the first 11 months of the year, and injured 657 others.

The disasters caused damage worth around VND52.2 trillion ($2.34 billion), with around 620,000 houses either destroyed or damaged, 309,000 hectares (763,500 acres) of farmland flooded, and hundreds of thousands of farm animals, fishing boats and infrastructure simply washed away.

Stormy weather has hit Vietnam hard this year, with 14 tropical storms affecting the country and hitting areas usually thought of as safe.

Typhoon Damrey hit the popular resort town of Nha Trang in Khanh Hoa Province in early November and was the worst storm to hit the region in 20 years.

Damrey alone left 108 people dead or missing and caused damage worth VND22 trillion (nearly $1 billion), accounting for nearly half of the damage incurred from the disastrous weather this year.

This video shows a trail of destruction just a day after the storm made landfall on November 4.

The stormy season has been over, but the 11-month toll has already surpassed last year’s losses, when disasters killed 264 people and caused nearly VND40 trillion ($1.75 billion) in damage. In 2015, the damage to property was five times less.

Vietnam is one of the five countries most vulnerable to climate change. Despite this, the country simply isn’t well prepared for these scenarios, raising questions about its forecasting capabiltities and disaster response mechanisms.

Prime Minister Nguyen Xuan Phuc said at a meeting in mid-November that Vietnam’s weather forecasting capability “has not met the demands.”

“Several localities were unprepared or didn’t buckle down in the face of disasters,” he said at a meeting with legislators.

In the wake of the huge damage caused by Typhoon Damrey, officials from the transport ministry have blamed incorrect weather forecasts that did not leave fishermen enough time to flee, but the environment ministry said people in the region were also unprepared.

UNICEF said in a statement last month that the lack of communication at community level had led to poor preparations for Damrey, leaving 150,000 children still at risk of malnutrition more than 10 days after the storm had passed.

In October, late forecasting was also blamed after flooding and landslides killed 68 people in one week in northern Vietnam, making it one of the deadliest floods to ever hit the region.

Source: Vi Vu

Multimillion-grossing teen comedy wins top prize at Vietnam Film Festival

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Em Chua 18 (Jailbait), a Vietnamese teen comedy that tackles the themes of friendship, family and love, has won the Golden Lotus for Best Picture at the 20th Vietnam Film Festival in the central city of Da Nang.

Centered around a playboy who takes pride in being a womanizer, Jailbait tells the story of his transformation after he meets and, so he believes, sleeps with an underage high-schooler who is troubled by family problems.

Praised for its light-hearted approach to issues like alcohol and sex, as well as for the performances of its young cast, Jailbait has become a box-office hit, taking VND100 billion (US$4.41 million) in its first 11 days of release.

By the end of May, the movie overtook Hollywood blockbuster Kong: Skull Island to become the highest-grossing film of all time in Vietnamese cinemas, earning more than VND169 billion ($7.44 million) in ticket sales.

At the awards ceremony of the 20th Vietnam Film Festival (VFF) in Da Nang on Tuesday evening, the film was honored with its highest award to date – the Golden Lotus for Best Feature Film.

Lead actress Kaity Nguyen, who played the underage high-schooler in her acting debut, also won the night’s award for Best Actress in a Leading Role.

Em Chua 18 actress Kaity Nguyen receives the Best Actress prize.

The success of Jailbait signifies a rise in the production value of commercial movies in Vietnam, with 2017 the first year the VFF didn’t feature any films from the public sector.

Established in 1970 and held every two or three years, the VFF is considered one of the most prestigious events in Vietnamese cinema with awards for categories ranging from feature film, direct-to-video and documentary film.

The awards were previously dominated by state-funded movies, which did place an emphasis on artistic value, but were essentially moral lessons and deemed out of touch with a general audience. As a result they had very limited screenings in state-run cinemas, and made very little profit.

This year, however, every nominee for the Golden Lotus award was a privately funded commercial film, the first time in the festival’s 47-year history that a state-funded film failed to make the prestigious awards.

Winning directors receive prizes.

Held from November 24 to 28, the 20th VFF was also the first time the awards ceremony honored films by directors from the Association of Southeast Asian Nations (ASEAN).

Vietnam hosted the 1st ASEAN Film Awards this year, before passing the honor to other ASEAN members.

Running with the theme, ‘Cinematography Connecting the ASEAN Community’, the awards are testament to the work of regional filmmakers and the inspiration they give newcomers to the industry.

The next VFF will the held in the southern province of Ba Ria – Vung Tau in 2019.

Source: Tuoi Tre News

Vietnam’s ministry details Grab app’s losses ahead of tax inspection

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The Ministry of Finance has released a detailed report on Grab Vietnam’s consistent annual losses since it began operating in the country, despite the ride-hailing app’s mushrooming popularity among local commuters.

During the fourth session of the lawmaking National Assembly which wrapped up last week, a delegate demanded that the finance ministry explain why Grab Vietnam, with a total registered capital of only VND20 billion (US$881,057), has accumulated VND938 billion ($41.32 million) in losses after three years of operating in the country.

The ministry has responded to the question with the release of a document on Wednesday detailing the company’s financial situation.

Grab made its Vietnam debut in 2014, launching in Hanoi and Ho Chi Minh City. Since then, the Malaysia-based company has adjusted its registered capital five times, totaling VND20 billion as of March 2017, according to the finance ministry.

In 2014, Grab Vietnam logged losses of VND51.6 billion ($2.27 million). The company managed to take that number to VND441.8 billion ($19.46 million) and VND444.7 billion ($19.59 million) in 2015 and 2016, respectively.

The finance ministry attributed the steep losses to massive marketing expenses and service prices set deliberately low to undercut conventional taxi operators.

Grab Vietnam, financed by its parent company in Malaysia, has borrowed $50 million from Grab Malaysia with zero interest, the finance ministry said, citing Grab Vietnam’s financial statement.

The Vietnamese ministry underlined that Grab Vietnam is considered a business with high operational risk, thus categorized as needing special tax oversight.

The finance ministry said it will cooperate with the State Bank of Vietnam and relevant agencies to review the company’s ‘borrowing’ and crack down on tax evasion or trade fraud, if any.

Grab Vietnam’s Ho Chi Minh City headquarters are in District 10. According to the district’s tax division, the company paid more than VND142 billion ($6.26 million) in taxes between January 1 and November 24, 2017.

Last week, the General Department of Taxation requested that local tax departments countrywide focus their 2018 tax inspections on ‘special’ businesses, such as Grab, Uber, online shopping platforms, and multilevel marketing companies.

Source: Tuoi Tre News

Coffee supply steady in Vietnam, Indonesia premium rises

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The continuing harvest kept coffee bean supply steady in Vietnam, the world’s second biggest producer, while trading in Indonesia remained subdued on low stockpiles, traders said on Thursday.

Vietnamese farmers have been ramping up their harvest of coffee beans in the Central Highlands, the country’s coffee belt. Traders said the weather had been supportive.

Farmers in Daklak, Vietnam’s main coffee growing province, were offering coffee beans at a price range of 37,100-37,700 dong ($1.63-$1.66) per kg, widening from a range of 37,300-37,500 dong a week earlier, traders said.

Vietnam’s 5 percent black and broken grade 2 robusta was traded at a discount of $50-$65 per tonne to the ICE March futures contract , expanding from a $40 discount a week earlier, traders said.

Falling London prices kept farmers from releasing too many beans into the market but supply was still enough for buyers, said Phan Hung Anh, a deputy director of Anh Minh Co based in Daklak, adding demand had been quite good.

But another trader based in Ho Chi Minh City said demand from roasters, the main buyers of the more bitter robusta beans, were not as high as usual at this time of year when buyers boost purchases before the Christmas holiday.

January robusta coffee slid as low as $1,699 a tonne this week, the weakest for the second position since June 2016, on expectations of a large crop in Vietnam and an improving outlook for next year’s Brazilian crop. Coffee exports from Vietnam this month are expected to reach 85,000 tonnes, down 26 percent from the same time last year but up from October’s 79,000 tonnes.

January-November exports of the bean fell an estimated 22.4 percent annually to 1.27 million tonnes, the government said. In Indonesia, the grade 4 defect 80 robusta beans traded at a premium of $80-$90 a tonne to the January contract, expanding from a $50 premium a week earlier, a trader said.

Premiums in Lampung were set higher to balance a big drop in London prices, although trade activity was still thin due to depleted stock, a trader said.

Source: Tuoi Tre News

​Eyebrows raised over Vietnam’s flight subsidy policy

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Industry insiders have warned that using state money to provide subsidies for empty seats on flights to and from unpopular airports, a scheme widely adapted in provinces across Vietnam, is not a viable policy.

The alarm was raised after the administration of Can Tho, the economic hub of the Mekong Delta in southern Vietnam, proposed setting aside VND8 billion (US$352,423) a year as subsidy to airlines flying to and from the city’s international airport.

The move is intended to encourage carriers to open new routes to the Can Tho International Airport, which continues to operate well below capacity seven years after its inauguration.

The airport is expected to serve just over 600,000 passengers by the end of 2017, less than 20 percent of its design capacity of up to five million passengers a year.

Common trend

What worries experts is that many other provinces have been, or in several cases still are, applying similar subsidies to encourage airlines to keep routes to their local airports open.

The north-central province of Quang Binh, home to Dong Hoi Airport, is currently subsidizing services to Cat Bi Airport in the northern city of Hai Phong and Thailand’s Chiang Mai.

The subsidy to the Dong Hoi-Cat Bi route, operated by Jetstar Pacific, is VND5 billion ($220,264) a year, while the grant for the Chiang Mai service is undisclosed.

In 2016, the administration of the central province of Thua Thien – Hue offered subsidies worth VND10 million ($440) a month to all flights to its Phu Bai Airport, under the condition that the carriers offered at least two flights per month.

In late September last year, the Hai Phong administration also began subsiding new flights, both domestic and international, to its Cat Bi Airport. Recipients of the subsidy have been airlines that have committed to operating at least three flights a week to and from Cat Bi for at least three years.

Domestic services will have 30 percent of the seats on every flight covered by the city’s budget, and international ones, 25 percent. The maximum subsidy for any domestic services is VND5 billion a year per new route, and VND10 billion ($440,500) a year for international flights.

Despite the subsidies, airlines remain cautious when planning new services to unpopular airports as the support from local authorities is not enough to cover their expenses.

For instance, few airlines operate flights to Can Tho due to low demand, given that the airport is only 180 kilometers away from the busy Tan Son Nhat International terminal in Ho Chi Minh City.

The administration of Lam Dong Province has recently offered to subsidize a local airline if it agrees to open a new route to connect the provincial capital of Da Lat and Can Tho.

However, the carrier is unsure, as the subsidy may fail to offset potential losses, one of its officials told Tuoi Tre (Youth) newspaper on Tuesday.

Similarly, low-cost carrier Vietjet, which operates two flights daily between Hanoi and Can Tho, and one daily flight from Da Nang to Can Tho, said the subsidies are not enough to make up for the expense of opening and maintaining the two routes.

Subsidy policy must be reconsidered

Commenting on the proposed subsidy plan Associate Professor To Trung Thanh, from the National Economics University, said the policy may work in the short term but it cannot be sustained.

“Can Tho does not have any competitive tourism products compared to other locations in the region, and the city is already easily accessed via expressways,” he explained.

In addition, a new international airport has been planned for construction in Dong Nai Province, which is only 50km away from Tan Son Nhat. Once this new facility is inaugurated, the number of passengers choosing to fly to Can Tho will decrease significantly, Thanh said.

Aviation expert Dr. Nguyen Thien Tong, said that the flight subsidization policy using state money delivers no socio-economic benefit and goes against the operation of a free market.

“An airline will open a new route of its own volition if it finds that the service will be viable, without waiting for a subsidy,” he said.

Tong added that the policy may lead to a scenario whereby airlines will stop flying if the financial support stops.

“We cannot subsidize airlines forever,” he said.

“In the long term, the plan will put more pressure on our state budget, which should be used to invest in education or healthcare.”

Source: Tuoi Tre News

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