Author: Mei Ling Tan

  • Ban sugar imports, tax other sweeteners, Vietnamese government urged

    Ban sugar imports, tax other sweeteners, Vietnamese government urged

    Failure to stop cheap, smuggled sugar from flooding domestic markets has sent local inventories soaring, local reports say.

    The trade department of the Mekong Delta province of Hau Giang, which has more than 100 hectares (247 acres) of sugarcane farms, has asked the Ministry of Industry and Trade to strengthen its anti-smuggling forces in border areas.

    And as an immediate solution to help the domestic sugar sector, it suggested that the ministry temporarily halts all sugar imports, including temporary imports for re-export, as sugar supply has far surpassed demand.

    The ministry should also impose import tax on sweet substances that can replace sugar and control the quota of those products in the market, and reduce the value added tax on made-in-Vietnam sugar from 5 percent to zero, the department said.

    In addition, it proposed establishing a sugar and sugarcane development fund. “The ministry should instruct banks to loosen credit regulations and offer loans to individuals and firms in the sugar industry at preferential interest rates,” the department stated in its letter to the ministry.

    The total unsold sugar inventory volume in Vietnam is now at a record level of 700,000 tons, including 300,000 tons in Hau Giang alone, according to the department.

    And the situation won’t get any better with just two months before Hau Giang sugarcane farmers harvest a new crop, with no guarantee for the output.

    Sugar traders said that imported sugar was more attractive to both wholesalers and retailers because it was cheaper.

    Hoa, a retailer in Ho Chi Minh City’s Go Vap District, noted sugar prices in the domestic market has never been this cheap.

    Sugar imported from Thailand currently wholesales at VND135,000 (around $6) per ten kilo pack. Vietnamese sugar costs VND5,000-10,000 more for the same quantity.

    Apart from Thailand, Vietnamese traders also buy sugar from China and South Korea.

    In June, smuggled sugar from Thailand bankrupted three of 10 factories in Vietnam’s Mekong Delta, industry insiders noted, adding that not much has been done to improve the situation.

    Nguyen Bao Ve, agronomist and professor at the Can Tho University said that high production costs for Vietnamese farmers, low productivity, and uncompetitive manufacturing technology were also part of the problem.

    Ve argued that it was essential to restore fair trade and take immediate action to prevent smuggling. “At the same time, the companies need to reform themselves, reduce costs, and cooperate with farmers to reduce sugarcane production costs.”

    He also warned that apart from improving productivity and innovating technology to match daily consumption of 6,000 tons of sugarcane, mechanizing production was of great importance. “Cambodia has fully mechanized sugarcane farming, while 60 percent of Vietnamese sugarcane farming is still conducted manually.”

  • Hugo Boss Hong Kong shines the brightest growth

    Hugo Boss Hong Kong shines the brightest growth

    Hong Kong provided German fashion group Hugo Boss with its strongest market growth terms in the second quarter

    Sales in Hong Kong and Macau were not disclosed, but the company described growth as being in the double-digits. Sales in Mainland China rose 8 per cent, overshadowed slightly by Europe, where Hugo Boss enjoyed 9 per cent growth, proving that its strategic brand repositioning to focus on Hugo and Boss is starting to pay dividends. Sales also rose in Japan.

    Globally, Hugo Boss experienced a 6 per cent lift in sales in the second quarter, to €653 million with same-store sales up 5 per cent. Included in that was a 47 per cent surge in online revenue.

    “Our strategic realignment is taking effect. We are right on track,” said CEO Mark Langer.

    “The sales growth in the second quarter speaks for itself: we achieved almost double-digit growth in Europe and were also able to continue our recovery in the challenging German market. Our collections are very well received at home and abroad. This is reflected both in the positive feedback from our wholesale partners and in the robust momentum of our retail business. The performance of our online store is particularly encouraging.”

    For the first half-year, currency-adjusted sales growth reached 5 per cent and earnings reached €205 million, unchanged from the same period last year.

    As part of its new brand strategy, the company has opened more new Boss stores in Singapore, London and Munich, featuring a new ambiance and a variety of digital services.

    The first new Hugo store concept opened in Amsterdam at the beginning of June, featuring unconventional fittings and firmly integrated social-media offers, targeting fashion-forward customers. More will follow in selected European cities this year, including Paris and London.

  • Amazon India announces ‘Amazon Freedom Sale’ from August 09-12

    Amazon India announces ‘Amazon Freedom Sale’ from August 09-12

    Amazon India is all set to celebrate the country’s spirit of independence with the ‘Amazon Freedom Sale’ from 12 am (midnight) on August 9 to 11:59 pm on August 12, 2018.

    With over 20,000 deals on Smartphones, Consumer Electronics, Fashion, Large Appliances, Groceries & Daily essentials, TVs and more, customers can enjoy shopping from over 170 million products across hundreds of categories on Amazon.in.

    Customers can look forward to new launches and exciting deals across brands such as OnePlus, Huawei, Honor, Samsung, Vivo, RealMe, 10.Or, Marks & Spencer, UCB, GAP, Shoppers Stop, Levis, Pantaloons, Red Tape, Sanyo, Casio, Puma, UCB, Prestige, LG, Bajaj, Pampers, Lego, Lakmé, Nivea, Philips, Pedigree, Bombay Dyeing, JBL, Sony and many more. Amazon Echo devices, Fire TV Stick and Kindle e-readers will be available at great discounts on all four days of the sale.

    “As the most trusted and visited shopping destination in India, we look forward to celebrating every occasion with our customers. The Amazon Freedom Sale has been curated to offer everything customers are looking for this season and more! With new launches, great deals, extra cashback, no cost EMI and convenient exchange options, customers can look forward to a grand celebration on Amazon.in,” said Manish Tiwary, Vice President – Category Management, Amazon India.

    This Amazon Freedom Sale, customers can save more with an additional cashback of 10 percent when they pay using SBI debit and credit cards. Millions of eligible customers can also enjoy EMI on using their debit card from select banks.

  • Nestle India Q2 net profit jumps 50 pc to Rs 395 crore

    Nestle India Q2 net profit jumps 50 pc to Rs 395 crore

    FMCG major Nestle India has reported 49.95 percent jump in net profit at Rs 395.03 crore for the second quarter ended June 30, helped by lower expenses.

    According to a PTI report: The company, which follows January-December financial year, had posted a net profit of Rs 263.43 crore for the April-June quarter of 2017-18.

    Total income during the quarter stood at Rs 2,758.63 crore. It was Rs 2,525.96 crore in April-June, 2017-18, Nestle said in a BSE filing.

    The company said financial results for the reported quarter are not comparable as sales for the June quarter 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales Tax. Excise duty was reported as a separate expense line item.

    “Consequent to the introduction of GST with effect from July 1 2017, VAT/Sales Tax, Excise duty etc have been subsumed into GST and accordingly the same is not recognised as part of sales,” the company said.

    “The market momentum continued to be favourable and…we have sustained our broad based volume growth across categories. There is an improvement in margins due to favourable cost of commodities and cost efficiency programmes.

    “However, we are now witnessing headwinds in commodity prices,” Suresh Narayanan, Chairman and Managing Director, Nestle India was quoted by PTI as saying.

    The company said its total sales and domestic sales increased 8.5 percent and 8 percent, respectively in the reported quarter.

    “The growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits.

  • Soaring 3G, 4G use to boost mobile ads, commerce

    Soaring 3G, 4G use to boost mobile ads, commerce

    Widespread adoption of 3G and 4G networks in Vietnam presents a lucrative growth opportunity for mobile advertising and commerce.

    Vietnam had more than 123.9 million mobile subscribers active on 2G, 3G and 4G networks as of June this year, according to the Ministry of Information and Communications.

    The number of 3G and 4G subscribers had soared by 29.2 percent year-on-year. Preliminary statistics showed that the combined adoption of 3G and 4G reached 51.5 million subscribers in early 2018.

    Mantosh Malhotra, Southeast Asia and Pacific head of telecom equipment giant Qualcomm, said the growth was impressive and predicted 3G and 4G numbers to rise to 120 million by 2020, or 67 percent of all mobile devices.

    Doan Duy Khoa, head of consumer insight, banking and technology industry division at Nielsen Vietnam, said that the extensive 3G and 4G adoption in Vietnam would create huge opportunities for mobile advertising and commerce.

    Vietnam is ranked third in consumers’ internet access in Southeast Asia, behind only Singapore and the Philippines, he said. “Vietnamese spend 24.7 hours a week on average on the internet compared to nearly 26 hours in developed countries like Singapore.”

    Two-thirds of local internet users surveyed by Nielsen said they regularly use smartphones to browse the net.

    Khoa said this trend has been fostered by the upgrades to the 3G and 4G telecom infrastructure and the increasing mobile connection speeds on smartphones.

    By 2020 some 60 percent of Vietnam’s population is expected to use smartphones.

    Khoa quoted statistics from market research company eMarketer as saying Vietnam’s mobile advertising revenues were worth $77 million last year, double that of the previous year.

    He presumed the growth is on the rise.

    Mobile advertising growth would be driven by new ad formats like in-app ads, mobile video ads and mobile search services, Khoa said. “The rising trends of connectivity and smartphone use also give impetus to mobile commerce growth.”

    Smartphones inspire consumers to search online for brands, products and services before buying, and share their impressions after a purchase, he said.

    Khoa recommended that marketers should use smartphones as a tool to build brands and loyalty programs and promote sales. “Many providers of air, accommodation, and tourism services are leading the mobile commerce charge in Vietnam.”

    eMarketer predicted the mobile retail sector to grow by 24.3 percent to $1.14 million this year. The figure is expected to climb to $1.8 million in the next three years.

    But Khoa warned that mobile advertising and mobile commerce sectors face challenges since consumers tend to quickly turn off ads or even block and skip them. “Thus, to get past this, the advertising content must be very good.”

    “Consumers’ attention span is very short when it comes to mobile phones, especially compared to tablets and laptops. So, ads must be designed to run for six or 12 seconds instead of the 30 or 60 seconds of traditional ads,” he added.

  • H&M opens second store in Hanoi, marks expansion

    H&M opens second store in Hanoi, marks expansion

    Swedish fast-fashion brand H&M Vietnam has opened it second store in Hanoi – its fourth in the country.

    The 2000sqm store is located in Vincom Mega Mall Times City, offering the latest summer items, and will host the upcoming H&M x GP & J Baker collection.

    The opening ceremony was attended by the Swedish Ambassador in Vietnam Pereric Högberg.

    Since its made its Vietnam debut in Ho Chi Minh City last November, H&M has opened two stores there and now two in Hanoi.

    Despite expansion in Vietnam, H&M is recording stagnated sales growth worldwide.

  • Asia leads Prada’s sales growth

    Asia leads Prada’s sales growth

    Asia has once again energised luxury fashion label Prada’s sales in the first half year.

    The company has reported net revenue up 9.4 per cent in the six months to June 30 (although a lesser 3.3 per cent at current exchange rates).

    However Prada Asia-Pacific sales surged 13.8 per cent at constant exchange rates, or 6.6 per cent at current rates, most of that growth coming from company-owned stores.

    Prada, which is listed on the Hong Kong stock exchange, singled out a recovery of inbound tourist flows into the city from the mainland as the primary contributor to Asia’s strong performance.

    Greater China sales rose 17.2 per cent at constant exchange rates, or by 9.2 per cent at current rates, to €344.4 million, while sales in Japan rose by 9.1 per cent at constant exchange rates.

    Global sales totalled €1.535 billion and net profit €105.7 million, up 10.7 per cent on the same period last year.

    By category, clothing sales increased by 19.5 per cent, with both both Prada and Miu Miu achieving double-digit growth at constant exchange rates. Sales of leather goods rose by 8.4 per cent at constant exchange rates.

    Prada group’s namesake brand achieved a 10.1 per cent improvement in sales, while

    Miu Miu made a return to positive growth across all product categories, net sales rising 8.2 per cent.

    The only poor performances were the Church’s brand, where sales were down 3.9 per cent, and income from royalties, which slipped 3.2 per cent with a healthy increase in fragrance sales offset by falling eyewear demand.

    “The [Church’s] decline was nearly entirely attributable to the results of the wholesale channel, which has still not recuperated from its reorganisation process,” said Prada in its earnings release.

    The Marchesi 1824 patisserie chain achieved double-digit growth.

  • Vietnam government likely to sell stake in PV Oil next year

    Vietnam government likely to sell stake in PV Oil next year

    The government is expected to reduce its stake in PV Oil, a major trader of crude oil and petroleum products, to 35.1 percent in 2019 from the current 80.52 percent.

    CEO Cao Hoai Duong told shareholders at the annual general meeting on July 30 that the firm is now seeking guidance on the foreign ownership cap.

    “After a maximum of 45 days from this meeting, we will send our proposal to state authorities. We will convince authorities to set the ceiling at 49 per cent,” he said.

    Last December PV Oil announced plans to sell a 44.72 per cent stake to foreign strategic shareholders.

    This aroused much interest among potential investors, including South Korea’s SK Energy, Japan’s Idemitsu, private lender HDBank, and multi-sector private group Sovico Holdings.

    They made bids to buy 2.78 times the number of shares PV Oil was offering.

    However, PV Oil’s proposal for a four-month extension of the strategic sales process to July 31 was rejected by the government.

    Foreign investors now own 6.62 percent of the company.

    The company held an IPO last year, and Duong said the earliest it is likely to list on the Ho Chi Minh stock exchange is 2019.

    Its shares are traded now on the Unlisted Public Company Market or UPCoM.

    At the AGM, shareholders approved a new board of directors for 2018-2023 made up of seven members – five from state-run PetroVietnam, one independent member and one representing other shareholders, Tran Hoai Nam, who is also deputy CEO of private carrier Vietjet Air.

    Duong said expanding to achieve 35 per cent market share in petroleum retail sales through mergers and acquisitions remains PV Oil’s long-term strategy.

    It now has 611 gas stations and a 22 per cent market share.

    Its major competitor, Petrolimex, has around 2,500 gas stations and about a 50 per cent share.

    Duong said quick divestment by the government would help the firm achieve its expansion ambitions more easily.

    PV Oil’s IPO fetched the government VND4 trillion ($172 million).

  • Apple is now a $1 trillion company

    Apple is now a $1 trillion company

    Apple has become the first US company with a market cap of more than US$1 trillion overnight, with a jump in stock prices pushing the company past the historic milestone.

    Following the tech giants Q3 earnings report in which it found a quarterly revenue of US$53.3 billion, the “best June quarter ever, and our fourth consecutive quarter of double-digit growth”, according to Apple CEO Tim Cook, stock prices jumped from approximately US$190 to approximately US$200, continuing to climb to a high of US$207.

    The large jump was enough to push the company over the line faster than Amazon, which is on track to reach a US$1 trillion market cap soon, currently sitting at approximately US$885 billion.

    Given the nature of the stock market, it is entirely possible the company will fluctuate below and above US$1 trillion mark, but the feather is now well in Apple’s cap.

    The company is not the world’s first US$1 trillion company though, with PetroChina having briefly reached the coveted position in 2007.

  • Malaysia’s June exports rise 7.6% year-on-year

    Malaysia’s June exports rise 7.6% year-on-year

    Malaysia’s exports in June 2018 was valued at RM78.7 billion increasing by 7.6% year-on-year (y-o-y), a reversal of the trend of the five previous months where export growth was stronger than imports, according to Statistics Department.

    Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said in a statement that re-exports increased 63.1% to RM15.7 billion y-o-y and accounted for 20% of total exports.

    However, he said that domestic exports was lower by 0.8% decreasing RM512.5 million to RM62.9 billion.

    Meanwhile, the department said imports growth registered a higher increase of 14.9% y-o-y to RM72.6 billion resulting a trade surplus of RM6 billion.

    Total trade which was valued at RM151.3 billion increased RM15 billion or 11% from June 2017, it noted.

    It said the export growth was contributed by expansion in exports to Hong Kong, China, Taiwan, Vietnam and Republic of Korea, while higher imports were mainly from China, Singapore, Taiwan, Republic of Korea and Saudi Arabia.

    The department said main products which contributed to the increase in exports were electrical and electronic products, refined petroleum products and crude petroleum.

    However, it said declines were recorded for these products; palm oil and palm oil-based products, liquefied natural gas (LNG), natural rubber, and timber and timber-based products,” it added.

    “While for imports, all the main categories of imports by end use and broad economic category classifications (BEC) recorded increases from a year ago, namely intermediate goods (RM1.2 billion), capital goods and cosumption goods,” it added.

  • First standalone Princi store in U.S. opens in Seattle

    First standalone Princi store in U.S. opens in Seattle

    Take a look at a map of Italy and you’ll find the region of Calabria at the toe of the boot, its rugged mountains jutting into a turquoise sea. Rocco Princi grew up in a small village here, surrounded by hillsides scented by wild herbs and groves of olives, figs and lemons. It was here that he discovered the art of artisanal bread-making as an apprentice at the local bakery.

    In 1986, Princi opened his eponymous boutique bakery and café in Milan at the historic Piazzale Istria. It was a feast for the senses, with crispy round loaves of sourdough bread leaning in rows, baskets of ciabatta bread alongside jars of olive oil and bins of flour. Princi uses the term ‘Spirito di Milano,’ the essence and energy of Milan, to capture the feeling from that first bakery, and infuses it into everything he creates.

    Over the next three decades Princi built a legacy, expanding to five more locations across Milan and London. In 2016, Starbucks became an investor and global licensee of the business and opened the first Princi location in the United States inside the Starbucks Reserve™ Roastery in Seattle, where his artisanal baked goods are served alongside the freshly roasted small-lot Starbucks Reserve™ coffees. Starbucks made Princi the exclusive food purveyor in its Roasteries and Starbucks Reserve store locations, and since then, new Princi bakeries have opened in the Shanghai Roastery and Starbucks Reserve store at the company’s SODO headquarters (and coming soon to future Roastery locations in Milan and New York).

    Now, the first Princi standalone store in the United States is opening in the north end of downtown Seattle on Westlake at 9th Avenue. Starbucks store design team worked closely with Rocco Princi and his team to design the new location.

    “When you first walk into a Princi bakery, you’re suddenly hit by the energy, the theater, the smell,” said Christian Davies, Starbucks Vice President, Creative Global Design & Innovation. “Your first impression is the abundance and seduction of food. That’s what we’re trying to create with a distinctly Italian look and feel to bring that passion to life.”

    Davies and the design team took inspiration from Princi’s original Milan bakery and the nearby Starbucks Reserve Roastery, using natural materials and earth-colored stone. In every element of the space, the team tried to express Princi’s commitment to craftsmanship, from the hand-blown glass light fixtures to the hand-rubbed plaster on the walls.

    “We kept the palate neutral. The food becomes a ribbon of color and light that ties the whole space together,” Davies said.

    The oven is the centerpiece of the space, with fresh baking onsite throughout the day. A brightly-lit food case stretches along the width of the space, enough for a visual landscape of freshly baked cornetti, brioche and focaccia, pizzas and desserts. Commessas, Italian for ‘shop assistant,’ act as a guide through the journey of food.

    “We wanted to make sure every one of these elements is created with the same level of detail that Rocco puts into his food,” Davies said.

    The new store features the full Princi menu of artisanal baked goods, prepared with the highest quality ingredients sourced from Italy to Seattle, starting at breakfast with steel-cut oats with Italian jam, baked eggs in a spicy tomato sauce and cornetti sandwiches made with prosciutto cotto and fontina. At lunchtime, the menu offers soups, salads, focaccia sandwiches, pizza, and hot entrees. Afternoons expand to a wider selection of Italian cakes, tarts and other desserts. Starbucks Reserve Princi™ Blend is the signature coffee offering, along with handcrafted espresso beverages made on a manual espresso machine.

    Take a look at a map of Italy and you’ll find the region of Calabria at the toe of the boot, its rugged mountains jutting into a turquoise sea. Rocco Princi grew up in a small village here, surrounded by hillsides scented by wild herbs and groves of olives, figs and lemons. It was here that he discovered the art of artisanal bread-making as an apprentice at the local bakery.

    In 1986, Princi opened his eponymous boutique bakery and café in Milan at the historic Piazzale Istria. It was a feast for the senses, with crispy round loaves of sourdough bread leaning in rows, baskets of ciabatta bread alongside jars of olive oil and bins of flour. Princi uses the term ‘Spirito di Milano,’ the essence and energy of Milan, to capture the feeling from that first bakery, and infuses it into everything he creates.

    Over the next three decades Princi built a legacy, expanding to five more locations across Milan and London. In 2016, Starbucks became an investor and global licensee of the business and opened the first Princi location in the United States inside the Starbucks Reserve™ Roastery in Seattle, where his artisanal baked goods are served alongside the freshly roasted small-lot Starbucks Reserve™ coffees. Starbucks made Princi the exclusive food purveyor in its Roasteries and Starbucks Reserve store locations, and since then, new Princi bakeries have opened in the Shanghai Roastery and Starbucks Reserve store at the company’s SODO headquarters (and coming soon to future Roastery locations in Milan and New York).

    Now, the first Princi standalone store in the United States is opening in the north end of downtown Seattle on Westlake at 9th Avenue. Starbucks store design team worked closely with Rocco Princi and his team to design the new location.

    “When you first walk into a Princi bakery, you’re suddenly hit by the energy, the theater, the smell,” said Christian Davies, Starbucks vice president, Creative Global Design & Innovation. “Your first impression is the abundance and seduction of food. That’s what we’re trying to create with a distinctly Italian look and feel to bring that passion to life.”

    Davies and the design team took inspiration from Princi’s original Milan bakery and the nearby Starbucks Reserve Roastery, using natural materials and earth-colored stone. In every element of the space, the team tried to express Princi’s commitment to craftsmanship, from the hand-blown glass light fixtures to the hand-rubbed plaster on the walls.

    “We kept the palate neutral. The food becomes a ribbon of color and light that ties the whole space together,” Davies said.

    The oven is the centerpiece of the space, with fresh baking onsite throughout the day. A brightly-lit food case stretches along the width of the space, enough for a visual landscape of freshly baked cornetti, brioche and focaccia, pizzas and desserts. Commessas, Italian for “shop assistant,” act as a guide through the journey of food.

    “We wanted to make sure every one of these elements is created with the same level of detail that Rocco puts into his food,” Davies said.

    The new store features the full Princi menu of artisanal baked goods, prepared with the highest quality ingredients sourced from Italy to Seattle, starting at breakfast with steel-cut oats with Italian jam, baked eggs in a spicy tomato sauce and cornetti sandwiches made with prosciutto cotto and fontina. At lunchtime, the menu offers soups, salads, focaccia sandwiches, pizza, and hot entrees. Afternoons expand to a wider selection of Italian cakes, tarts and other desserts. Starbucks Reserve Princi™ Blend is the signature coffee offering, along with handcrafted espresso beverages made on a manual espresso machine.

    As the day fades in the afternoon, Bar Mixato offers traditional Italian aperitivo, including cocktails, beer, wine and spirits accompanied by complimentary small plates. Customers can relax on the patio, which will open up to a planned new city park later this year. The smell of rosemary from nearby plantings evokes the hills of southern Italy where Princi’s journey began.

    “When you go to Italy, you’ll always find people on the patio,” Davies said. “I hope customers will come here and find the spirit of Milan.”

    The standalone Princi store makes Seattle the first city in the world to offer the full suite of experiences from Starbucks Siren Retail business, dedicated to its premium Reserve™ brand, which includes a Reserve Roastery, a Reserve store, Starbucks stores with a Reserve coffee bar, and now Princi stand-alone stores. Additional standalone Princi locations are expected to open this fall in Chicago and New York.

  • BreadTalk celebrates another quarter of growth

    BreadTalk celebrates another quarter of growth

    Singapore-headquartered F&B group BreadTalk has announced US$148.8 million in total sales for the second quarter, an increase of 0.8 per cent over last year.

    Henry Chu, BreadTalk Group CEO said the company ended yet another quarter of core earnings improvement powered by growth in its existing brands and contributions from new brands which have surpassed expectations.

    “This was achieved despite costs being incurred to consolidate certain underperforming businesses as well as investments made to boost the efficiency of our backend support infrastructure. On the back of the many corporate actions announced over the past six months, my team and I are excited to get on with the execution to see these initiatives to fruition.”

    While pursuing its global expansion plans with strategic joint-venture partnerships, the group will continue to broaden its business mix by developing new direct-owned brands such as Sergeant’s Kitchen in Hong Kong, Shanghai and Bangkok and Una-Yu in Food Republic Shanghai Tower.

  • Vietnam gives nod for $300mln railway upgrade

    Vietnam gives nod for $300mln railway upgrade

    Vietnam’s National Assembly has approved a $300 million budget for four railway upgrade projects on its transnational route.

    The four projects are to be implemented along the Hanoi-Ho Chi Minh City route. The funds will be sourced from the contingency budget of the Public Investment Plan 2016-2020 that the parliament approved in 2016.

    A total of VND1.95 trillion ($84 million) will be spent to reinforce over 100 weak bridges on the Hanoi-HCMC route. Propulsion systems on this route will also be improved.

    Another VND1.8 trillion ($77 million) will be spent on reinforcing 11 of over 22 tunnels on the route section between Vinh and Nha Trang provinces. New stations will also be opened along this route.

    The route section from Hanoi to Vinh will be upgraded at a cost of VND1.4 trillion ($60 million), which will be spent on reinforcing the current foundation, opening a third track in stations that currently have only two, and other upgrades.

    Similar upgrades will be applied on the route from Nha Trang to HCMC with a budget of VND1.85 trillion ($79 million).

    The Standing Committee of the National Assembly has also approved VND8 trillion ($343 million) for 10 road projects.

    The Vietnamese government has recently initiated efforts to upgrade the country’s outdated railway system. Many experts, including former senior railway officials, have said that the sector has suffered government neglect for a long time.

    Vietnam’s railway sector has not received any major investment in the last 140 years.

    Fifty-five percent of 7,200 coaches are equipped with an outdated brake system, while 72 percent of almost 400 locomotives are high on emissions and low on economic efficiency, according to the Vietnam Register.

    Vietnam currently has over 3,000 kilometers of railway tracks, none of them high-speed.

    All Vietnamese trains run on diesel, while Malaysia, Thailand, Korea, Japan and China have electric railway systems.

  • China says US disappoints the world by upping the ante in trade war

    China says US disappoints the world by upping the ante in trade war

    China warned the United States today that upping the ante in a tit-for-tat trade war will “only serve to disappoint” the world as Washington threatened to raise the tariff rate on the next US$200 billion (RM814 billion) of Chinese imports.

    Beijing said it would be forced to take countermeasures to defend Chinese interests, free trade and the international order.

    “The US has no regard for the world … playing both soft and hard ball with China will not have any effect, and only serve to disappoint the countries and territories opposed to a trade war,” China’s Ministry of Commerce said in a statement, adding that it still hopes to turn the situation around.

    Foreign ministry spokesman Geng Shuang called Washington’s actions “blackmail” and urged the US “to return to rationality and not act on impulse. It will only hurt themselves.”

    President Donald Trump asked the US Trade Representative to consider increasing the proposed tariffs to 25% from the planned 10%, USTR Robert Lighthizer said on Wednesday.

    “We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against US workers, farmers, ranchers and businesses,” Lighthizer said in a statement.

    Officials, however, downplayed suggestions the move was intended to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Trump’s tariffs by making imports cheaper.

    The US dollar has been strengthening since April as the central bank has been raising lending rates, which draws investors looking for higher returns.

    “It’s important that countries refrain from devaluing currencies for competitive purposes,” a senior administration official said. “But I wouldn’t draw the conclusion that the announcement we’re making today is directly linked to any one practice.”

    Washington and Beijing are locked in battle over American accusations that China’s export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.

    Trump has threatened to slap tariffs on virtually all of China’s exports to the US.

    Officials said they remained in regular contact with their Chinese counterparts but could announce no new meeting.

    The US already imposed 25% tariffs on US$34 billion in Chinese goods, with another US$16 billion to be targeted in coming weeks.

    On July 10, Washington unveiled a list of another US$200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10% import duties.

    Increasing the rates to 25% could make them significantly more painful.

    The comment period on the proposed penalties, which includes public hearings where business can ask for exemptions, due to take place later this month, would be extended into September, the officials said.

    Much of American industry and many members of Trump’s own Republican Party have expressed outrage but have so far been unable to thwart Trump’s trade policies.

    The US Senate last week passed legislation which if enacted would lower trade barriers on hundreds of Chinese imports.

    Jake Colvin, vice-president of the National Foreign Trade Council, said the Trump administration could be boxing itself into a corner.

    “It’s hard to see how this action lends itself towards a resolution to what is increasingly a trade crisis,” he told AFP.

    Trump and senior administration officials believe the volume of US imports and vigorous health of the American economy give Washington an advantage in the current confrontation.

    But Fred Bergsten, founding director of the Peterson Institute for International Economics, told CNBC that China would be able to absorb blows more easily than Washington.

    “They can expand their stimulus, fiscal spending, bank lending,” he said.

    “They can compensate much better than we can. They come from a much higher base.”

    And Bergsten warned that the US economy is likely to slow and a trade war only makes that expected decline worse.

  • Indonesia’s Bekraf opens pop up in Singapore with fashion start-ups

    Indonesia’s Bekraf opens pop up in Singapore with fashion start-ups

    Bekraf, the Indonesian Creative Economy Agency, has joined with the Indonesian embassy in Singapore to open a pop-up store showcasing Indonesian fashion startups.

    Joshua Puji Mulia Simanjuntak, Bekraf’s marketing division deputy head, described Singapore as an important market for Indonesian creative industries, particularly for fashion, as a prospective hub to reach Asean and global markets.

    The fashion industry in Indonesia contributes over half of all creative exports from the country, an economy that generated US$20 billion to 2016 figures.

    At least 14 brands will participate in the event running at Paragon Mall during August.