Author: Mei Ling Tan

  • Level 3 opens DDoS scrubbing centers in APAC

    Level 3 opens DDoS scrubbing centers in APAC

    Multinational companies located in the Asia-Pacific region now have access to Distributed Denial of Service (DDoS) mitigation solutions from Level 3 Communications.

    The new scrubbing centers in Hong Kong, Tokyo and Singapore signify an expansion of the company’s security service functionality. The company says its security solutions provide layers of defense through enhanced network routing, rate limiting and filtering that can be paired with cloud-based scrubbing for a more comprehensive mitigation solution.

    The Asia-Pacific region is key for both Asian and multinational enterprises which demand global security services — making Level 3’s cybersecurity solutions and global presence essential.

    Level 3 began operating in Asia Pacific in 2004. The company has 14 on-net markets throughout Asia Pacific with service reach to more than 50 markets in the region. Level 3 offers its customers in the region VPN, direct internet access, Ethernet VPL, managed services, unified communications, CDN and security solutions.

    Level 3 opened the additional scrubbing centers to provide customers with infrastructure in the region to quickly mitigate attacks with less disruption to business operations.

    Level 3’s DDoS ingest capacity, 4.5 terabits per second, provides a high capacity to ingest massive attacks so customers can get back to business as usual.

    The service is carrier agnostic and pulls all customer traffic into Level 3’s globally located scrubbing centers for cleansing before forwarding legitimate traffic through a private connection or the public internet.

    Level 3 now has 11 scrubbing centers on four continents. Other locations include São Paulo, Frankfurt, London, Chicago, Dallas, Los Angeles, New York and Washington, DC.

    24/7 Security Operations Centers detect anomalies in global NetFlow sessions, perform impact analyses, notify customers of threatening conditions and then help them mitigate the issue.

    Australia, China and Hong Kong are listed among the most vulnerable to cyberattacks, according to a report by Project Sonar.

    IoT-compromizing malware research by Level 3 Threat Research Labs reveals many connected devices are being compromised and enabling attacks reaching in excess of 600 Gbps.

  • Nice start to the year. Pity about the rest of it

    Nice start to the year. Pity about the rest of it

    There are too many uncertainties ahead to know whether it will continue or crumble, economists say. The world economy has begun the year in fine form. America is cruising along, China is growing faster than expected, Britain is muffling the Brexit downdraft. Even the usually lagging euro zone is perky.

    Pity about what lies ahead.

    Almost every major economy’s data releases these days seem to follow a similar pattern.

    First, they are generally positive – either better than previously or only a little weaker. Then, policymakers and economists come out and say there are too many uncertainties ahead to know whether it will continue or crumble.

    “Geopolitical risks are mounting and increasingly catching market attention in such fashion as to risk overshadowing most other developments,” Canada’s Scotiabank told its clients.

    The risks are primarily political. How will U.S. President Donald Trump’s “America First” protectionist talk translate into policy? Will Brexit finally come back to bite Britain by cutting off commercial growth and breeding inflation?

    For the euro zone, meanwhile, the risks are existential. Elections in France, Italy, Germany and the Netherlands could result in anti-euro political parties gaining significant ground or even taking office. And Greece’s hold on its place in the currency union remains flimsy.

    In the past week the extra money investors demand to buy French bonds rather than German ones jumped – much of it because of a comment by an official of the far-right National Front that it would put leaving the euro at the heart of its economic platform.

    Polls suggest National Front candidate Marine Le Pen will not win the presidency – but after the Trump and Brexit surprises last year nothing can be ruled out.

    Other risks are more Keynesian, revolving around whether years of stimulus from central banks in the form of asset-buying and negligible interest rates are finally producing inflation, which in turn will stop consumers from buying, slowing economic growth.

    Economics can be very much a game of whack-a-mole.

    Up next

    The coming week may well be dominated by China, which returns from a holiday with a large slate of data, including the services purchasing managers index – which implied steady if slightly slower growth – foreign reserves data and possibly trade figures.

    China grew a faster-than-expected 6.8 percent in the fourth quarter, boosted by higher government spending and record bank lending.

    But the economy still faces headwinds from a cooling housing market and possible protectionist measures from the U.S.

    The foreign exchange reserves, meanwhile, are on the verge of falling below $3 trillion, although the pace of declines could be slowed by capital controls and the dollar’s retreat.

    China is being cautious. It raised a number of policy rates on Friday against what Deutsche Bank described as a dilemma.

    “Policy needs to be tightened for financial stability considerations, but (the central bank) wants to control the pace and magnitude so that … the tightening does not trigger disruptive adjustments (bubble burst), and … does not jeopardize the stabilizing growth outlook,” it said.

    In the euro zone, there will be German, French, Spanish and Italian industrial production data. All are expected to show growth.

    Germany’s volatile factory orders may be under particular scrutiny. They fell 2.5 percent month-on-month in November, a plunge from a 5 percent rise the month before.

  • Nearly 9,000 new companies launched in Vietnam in January

    Nearly 9,000 new companies launched in Vietnam in January

    A strong start for the economy in the new year after a record high number of new openings in 2016. Vietnam’s business community has hit the grounds running in the new year. Official reports showed that 8,990 companies opened in January, up 8 percent from last year. Their registered capital surged 52.3 percent to VND90.3 trillion ($4 billion) in total.

    The new companies are expected to create 104,100 jobs. In comparison, there were 8,320 new companies with 124,000 new jobs in January last year.

    Nearly 5,600 suspended companies also resumed operations last month.

    The number of businesses shutting down increased 18.3 percent year-on-year to 1,583.

    Vietnam hopes to see over one million businesses in operation by 2020. It is now halfway to that point.

    The country saw a record number of business openings of 110,000 last year, strengthening hopes for robust growth and strong investment in the near future.

    Officials from the labor ministry reportedly said that Vietnam aims to create 1.6 million jobs this year, roughly the same figure last year.

    More than 3 percent of the country’s urban adults are unemployed while the rural rate is nearly 2 percent.

  • Pakistan boosts orange exports to Indonesia

    Pakistan boosts orange exports to Indonesia

    Indonesian fresh fruit importers say Pakistan will face tough rivalry from China. Pakistan hopes to see an increase in exports of its famous Kinnow oranges to Indonesia, as it has started to infiltrate the market through giant retailers.

    A press statement from the Pakistani Embassy made available to The Jakarta Post states that consignments of the Pakistani Kinnow have started arriving in Jakarta, and are currently being sold in many major grocery chains, including Carrefour, Ranch Market, Hypermart and Giant.

    The Kinnow is a larger orange, touted to be extremely easy to peel and is cited as having a unique flavor as a result of the soil and climate in which they are grown.

    “The Pakistani Kinnow made its entry into the Indonesian market at New Year and the Chinese New Year, to make them more joyous occasions. Last year, Pakistan’s exports of Kinnow oranges to Indonesia amounted to US$23 million and this figure is expected to grow significantly in 2017,” the press statement read.

    Indonesia has a preferential trade agreement (PTA) with Pakistan, which began in 2013, and Pakistan’s Kinnow oranges are allowed access through the country’s main port in Tanjung Priok, North Jakarta.

    In exchange, Pakistan exempts Indonesia, the world’s largest crude palm oil (CPO) producer, from paying 10 percent import duty on that commodity.

    Following the PTA, imports of Kinnow oranges from Pakistan reached $19.3 million in 2014, from $3 million in 2013.

    However, Indonesian Fresh Fruit and Vegetables Exporters and Importers Association chairman, Kafi Kurnia, said that it was unlikely Pakistan could significantly boosts its exports of Kinnow oranges because of fierce competition from similar oranges from China.

    Kafi noted that since existing regulations limited the size of imports of certain fruits, importers tended to be choosier.

    “The Kinnow imports arrived during a very good time, at around Chinese New Year. However, they have a lot of fierce competition, mostly from Chinese exporters. If my importing quota was limited, especially during this time, I would definitely prioritize oranges from China,” he told on Monday.

    Even so, the Kinnow orange will remain a major competitor for locally produced oranges, as there was a lack of research and development that could help raise the quality of local fruit and vegetables.

    Indonesia is also home to many other tropical fruits such as mangosteen, rambutan, snake fruit, jackfruit, soursop, breadfruit, guava and starfruit, but they are not exported in great quantities or even consumed heavily at home.

    The government aims to boost tropical fruit production by expanding land for fruit plantations while also improving infrastructure and transportation systems to reduce high distribution costs, as part of efforts to become the biggest tropical fruit producer in Southeast Asia by 2025 and in the world by 2045.

    Meanwhile, National Agriculture Council chairman Benny Kusbini concurred that a lack of uniform quality among locally produced fruit was an obstacle when it came to competing with imported fruit sold in Indonesia.

    He also noted that poor infrastructure remained a problem as some fruits were cheaper to import than to transport from regions in Indonesia.

    “The Kinnow, for example, can be very cheap to import from Pakistan to Indonesia. Sometimes 10 kilograms of Kinnows can be imported for only $5 to $6. Compared to oranges from Medan, for example, it is difficult to compete with those prices,” he told the Post.

    Indonesia imported $666.37 million worth of fruit and $558.08 million worth of vegetables in 2015, according to data from Trade Map.

  • How Indonesians Became Richer than Filipinos

    How Indonesians Became Richer than Filipinos

    An Indonesian boom sparked by growing economic stability and falling corruption and debt levels has helped Indonesians catch up and become better off than Filipinos in per capita income in recent years.

    That hasn’t surprised those following emerging markets closely, though the Philippines’ equity market has outperformed Indonesia’s in the last ten years. Nor has it been a surprise seeing the Philippines leave behind the old glory days of the 1960s, and be bypassed by the one Asian country after another in per capita GDP.

    “There was a time when the Philippines was seen as an Asian trendsetter, and fashionable young Malays would sport the barong, the formal embroidered shirt favored by Filipinos, to look cool,” writes Ruchir Sharma in Breakout Nations. “But that was back in the 1960s, when the Philippines had the second highest per capita income in Asia, behind only Japan. The nation’s fortunes shifted since then.

    By the 1970s South Korea and Taiwan had passed the Philippines in per capita income terms. Malaysia and Thailand followed in the 1980s and China in the 1990s. Then in 2009, in a moment the Manila elite thought it would never see, Indonesia’s boom made Indonesians richer than Filipinos for the first time in history.”

    That’s a trend that continued beyond 2009. In 2016, Philippines per capita GDP was close to two-thirds of that of Indonesia’s; the gap is even bigger in ppp. What has Indonesia done right that Philippines’ hasn’t?

    To begin with, it has managed to shake off the economic and political instability that came with the breaking of the Asian financial crisis – a crisis which hit Jakarta hard, with GDP falling close to 20 percent over the 1997-1998 periods.

    Moreover, Indonesia managed to bring its government debt down, which accounts roughly for 60 percent of that of Philippines. Then there’s the battle against corruption and cronyism, big killers of emerging market growth, though it still remains high compared to that of China and India.

  • Garuda Indonesia axes first class on London routes

    Garuda Indonesia axes first class on London routes

    Garuda Indonesia will no longer be offering first class seating to London from June 20 onwards as it looks to switch from a three-class to two-class Boeing B777-300ER.

    The configuration change for flights GA086/87 on the carrier’s Jakarta-Singapore-London Heathrow route will increase the overall number of seats from 314 to 393 at the expense of its first class cabin.

    While airlineroute.net reported the change on Friday, February 3, at the time of writing Garuda is still offering first class seats on the route on its website.

    Garuda currently operates the route three times weekly, with its Tuesday, Saturday and Sunday schedule not expected to change.

    Full details for the Jakarta (CGK)-Singapore (SIN)-London Heathrow (LHR) route are as follows:

    Flight No. From To Departs Arrives Days
    GA086 CGK SIN 0745 1035 Tue, Sat, Sun
    SIN LHR 1200 1855
    GA087 LHR SIN 2110 1730+1 Tue, Sat, Sun
  • AXA Financial Indonesia seeks new customers from digital platform

    AXA Financial Indonesia seeks new customers from digital platform

    Life insurer AXA Financial Indonesia, part of the AXA Indonesia Group, launched a digital tool to expand its customer base on Monday.

    The tool provides easy access to information for several purposes, namely creating a children’s education fund, retirement fund, business capital and tourism or pilgrimage fund.

    AXA Financial Indonesia chief agency officer Nina Ong said the tool and products were directed at modern dynamic citizens, ages 25 to 45 years old.

    The company expects the tool to help attract 20 percent to 30 percent of such citizens as its new clients and expand its customer base, which is now served by about 14,000 agents.

    AXA Financial Indonesia’s move is part of an overall strategy by the insurance industry, which has continued to report low insurance penetration despite Indonesia’s status as the largest economy in Southeast Asia.

    Data from the Financial Services Authority (OJK) shows that the insurance penetration ratio stood at 2.63 percent only, as of September, below the ratios in Malaysia, Singapore and Thailand at over 5 percent.

    AXA Financial Indonesia booked Rp 1.44 trillion (US$108.03 million) in total revenue in the first nine months of 2016, a more than sixfold increase compared to the same period in 2015, supported by positive results in its investments.

  • SKT, Ericsson, BMW achieve 3.6Gbps for 5G connected car trial

    SKT, Ericsson, BMW achieve 3.6Gbps for 5G connected car trial

    SK Telecom achieved what it says is the world’s fastest 5G speed for a connected car during a demonstration conducted with Ericsson and BMW Korea.

    SKT said the trio has successfully tested its pilot 5G network on a connected car running at 170 kilometers per hour, reaching a 3.6Gbps transmission speed over the 28-GHz band.

    The demo was conducted at the German car maker’s driving center in Yeongjong Island, Incheon, where the trio first successfully tested its pilot 5G network for multi-vehicular communications last November.

    SK Telecom said with 5G avoiding obstacles is difficult at high speeds, but the operator achieved this through the application of advanced beamforming and beamtracking technologies.

    “Connected car is regarded as the barometer for 5G as it can only be realized through the combination of all 5G technologies. As ultra-high speed and ultra-low latency are prerequisites for realizing autonomous driving and immersive media services, the 3.6Gpbs transmission speed we successfully demonstrated today not only brings us a step closer to realizing autonomous driving, but will also have a great impact on a broader range of industries,” SK Telecom said in a statement.

    The demo significantly enhances the stability of connected car services by improving image recognition and V2X (Vehicle to Everything Communication) technologies, the operator added.

    “That is, a vehicle will be able to communicate, in real time, with other vehicles, traffic lights and surveillance cameras to understand and respond to unexpected situations and obstacles… in a much shorter time.”

  • Allphones Australia closing 18 stores as it undergoes administration

    Allphones Australia closing 18 stores as it undergoes administration

    Allphones closed its 18 stores on Monday after it has gone into administration. The decision took place after its new owner, Canadian company Glentel, has failed to improve the company’s status after a turnaround project. There are 66 stores that will continue to operate while PBB looks for someone who will take over the rest of the store network.

    “Despite financial support from the shareholder and significant efforts to deliver a successful turnaround, the shareholders are unable to continue funding the group’s losses. The Board of each entity (there are nine in total) has been left with no option other than to place each entity in the Allphones Group into Voluntary Administration this morning,” PPB Advisory said in a statement. Retaining an agreement to resell Vodafone services to help Allphones recover has failed that the company now entered into administration.

    There were 69 employees affected by the store closure. Phil Carter of PBB Advisory said that they were undertaking an urgent review of Allphones. They aim to ensure that the employees impacted were fully supported. However, the future of its employees was still uncertain.

    The company aimed to stabilise the current operations and store network. Carter said that their immediate priority was to work with the company’s key stakeholders, franchisees, licensees and staff to keep the store’s trading on a business as usual basis. Allphones group was acquired in May 2016 and it has employed 440 people. It owns 25 stores while seven were operated by franchisees. Allphones’ other stores were licensed to other parties.

    In 2013, the company has lost its contract to run 45 Virgin Mobile-branded stores in the country. It has suffered $25 million impairment due to the lost of contract.  In the same year, Allphones also ceased selling all Optus consumer products including mobile, broadband products and fixed telephony. Optus decided to end the contract to overhaul its retail strategy in improving customer relation. During this period, Allphones strengthen its partnership with Vodafone and expanded into the Philippines.

    “We’re contracted to do up to 250 Allphones stores in the Philippines for a telco,” CEO Shaun Colligan told in 2013 . “And the crux of that was this digital solution. You’re taking a quantum leap for those guys where retail has gone from being a very transactional prepaid environment and we’re helping to move them to a post-paid contractual environment.” The company currently has more than 60 outlets in the Philippines.

    Its naming rights sponsorhip of Sydney Olympic Park’s Superdome, now Qudos Bank Arena, has ended in 2016. The company’s first shopfront opened in 1989 in South Australia.

  • Cathay Pacific to launch new distribution capability to connect more effectively with customers

    Cathay Pacific to launch new distribution capability to connect more effectively with customers

    Cathay Pacific announced it will adopt New Distribution Capability(NDC) in order to significantly enhance its customers’ experience when making travel arrangements through a multitude of sales channels.

    NDC is the International Air Transport Association’s (IATA) programme that improves communications between airlines, travel agents and web-based travel service providers by addressing the industry’s current limitations around product differentiation, time to market, access to full and rich content and the transparency of the shopping experience.

    Developed in response to key changes in the industry’s operating environment – including the customer shift towards travel comparison websites, their widespread use of social media when making travel decisions, and many airlines’ desire to offer more ancillary products – NDC has redefined travel technology standards and enables a more vibrant travel technology ecosystem.

    Cathay Pacific’s development and subsequent use of NDC will enable it to connect more effectively with customers by providing agents and other third-party sales outlets with detailed, image-led product content, promotions and advanced service information. By doing so, customers will have a better understanding of the airline’s premium ground and inflight products and will subsequently be able to make a more informed purchasing decision, wherever they shop.

    Cathay Pacific General Manager, Sales and Distribution, Toby Smith, said: “We continually strive to enhance our passengers’ experience at every stage of their journey with us – and that starts from the moment they plan their travel arrangements. Through NDC, Cathay Pacific will be able to provide customers with a wealth of detailed information about our flights and product offerings at all points of sale, which will enable us to deliver on our brand promise of a Life Well Travelled.”

    IATA’s Director NDC Program, Yanik Hoyles, offered his support: “We welcome the decision by Cathay Pacific to implement the NDC Standard. NDC is modernizing the way that airline products are presented through travel agents, providing consumers with greater access and transparency. With NDC, travelers will be able to compare the full product offering regardless of shopping channel.”

    After a thorough commercial and technology evaluation of potential vendors, Cathay Pacific selected Dublin-headquartered OpenJaw Technologies as its NDC platform partner. The airline has an existing relationship with the company, a wholly-owned subsidiary of Hong Kong-listed TravelSky Technology, with its product powering the Cathay Pacific Holidays website and flight-booking feature on the Cathay Pacific mobile app. OpenJaw recently achieved Level 3 NDC capability certification, the highest level of certification offered by IATA.

  • Vietnam’s top brewer Sabeco posts record profit in 2016

    Vietnam’s top brewer Sabeco posts record profit in 2016

    Together Sabeco and Habeco, both controlled by the state, account for about 60 percent of the domestic market. The country’s biggest brewer Sabeco has reported a profit of VND4.6 trillion ($205 million) for last year, a 33 percent jump from 2015 and 27 percent higher than its target, according to a statement filed at the Ho Chi Minh Stock Exchange.

    Saigon Beer Alcohol Beverage, as the company is officially known, just listed its shares on the country’s main bourse in December, eight years after its initial public offering. It reported VND30.66 trillion in revenue last year, up 13 percent from a year ago.

    Sabeco, one of a few state-owned companies which have performed relatively well, currently remains 89.59 percent owned by the government.

    With a share of nearly 41 percent of the domestic beer market, Sabeco is among the most sought-after companies by foreign investors, with suitors including Japan’s Kirin Holdings, Thai Beverage and Dutch beverage giant Heineken, according to an official from the trade ministry.

    In an attempt to accelerate the privatization of state-owned enterprises, the Vietnamese government said it would sell its entire stake in Sabeco this year.

    Meanwhile, Hanoi Beer Alcohol Beverage, or Habeco, posted a net profit of VND740 billion, down 20 percent from 2015.

    Habeco, with a 19.8 percent market share, is the third largest brewer in Vietnam, behind Sabeco with a market share of 41 percent and Heineken with 21.6 percent, according to the Vietnam Beverage Association.

    That means as combined, Sabeco, known for Bia Saigon and 333 brands, and Habeco account for about 60 percent of the domestic market.

    According to market research company Nielsen, while Sabeco has managed to raise its market share in northern provinces to 15.5 percent in the first half of last year from 10 percent in 2014, Habeco has failed to strengthen its dominant position in the north. The latter controlled 50 percent of the northern market in the first six months of last year, down from 55 percent in 2014.

    Beer consumption in Vietnam rose 12 percent year-on-year to reach 3.8 billion liters last year, according to the trade ministry.

    Vietnam is Asia’s third largest beer consumer by volume after China and Japan.

    Industry expects annual growth of 4 percent to 5 percent for the next five years. The country’s annual beer output is forecast to hit 4.1 billion liters by 2020, according to  government projections.

    The stock market debuts of both Sabeco and Habeco have been sped up in the government’s latest attempt to boost investment and increase transparency.

  • Apple beats Xiaomi in China; Oppo takes lead

    Apple beats Xiaomi in China; Oppo takes lead

    Apple has finally halted the dream run of Xiaomi in China, the largest smartphone market in the world, edging the Chinese phone giant from the fourth slot by shipping nearly 45 million iPhones to the Communist nation, a report by market research firm IDC said.

    OPPO, Huawei, and Vivo lead other smartphone brands in China in 2016, latest International Data Corporation (IDC) Quarterly Mobile Phone Tracker report said.

    “Xiaomi was China’s hottest phone brand in 2014 and 2015, but it couldn’t maintain the momentum in 2016,” tech news portal CNET quoted IDC data as saying.

    Shipping 41.5 million smartphones, Xiaomi once known as ‘the Apple of China’ was the No. 5 brand in China last year. Apple, which took the fourth slot shipped 44.9 million iPhones to China (vs.58.4 million in 2015), the world’s largest phone market, it said.

    “The big winner was Oppo, which shipped 78.4 million phones more than double the 35.4 million it shipped in 2015. Huawei came in at second, shipping 76 million phones, while Vivo managed to almost double its shipments, going from 35 million in 2015 to 69 million last year,” it said.

    “2016 was the first time ever that Apple saw a YoY decline in the Chinese market. Even though the new black coloured iPhones caught the attention of consumers, overall, the new launches did not create as much of a frenzy compared to the past,” the IDC report said.

    “Despite the decline, IDC does not believe Chinese vendors have actually eaten away Apple’s market share. Most Apple users are expected to be holding out for the new iPhone that will be launched this year, and that will help the brand to see a growth in 2017.”

    “Apple’s 10-year anniversary iPhone will also likely attract some of the high-end Android users in China to convert to an iPhone,” it said.

    Chinese market grew by 9 per cent last year.

    “Most brands are now using a combination of channels to increase their shipments. Xiaomi, previously focused on online channels, has opened more Mi Home stores to drive offline growth. Apple has also been aggressive in increasing its offline retail presence,” it said.

    The top three Chinese brands grabbed a total of 48 per cent of the Chinese market last year.

    Jin Di, a research manager with IDC China, said another reason behind the success of Chinese brands was their willingness to share profits with distribution partners.

    Apple dropped from third in 2015 to fourth in 2016, as shipments to China plunged 23.2 per cent to 44.9 million units.

    Xiaomi was top in 2015, but fell to the bottom of the top-five vendors, with a 36 per cent plunge in sales in China.

    Total smartphone shipment volume in China rose 8.7 per cent to 467.3 million handsets last year.

    The IDC forecast that the volume in 2017 will continue to grow as consumers replace old phones, but that the growth will be slower than 2016.

    Worldwide, the top five smartphone vendors in terms of shipments last year were Samsung, Apple, Huawei, OPPO and Vivo.

  • Winter Olympics: South Korea builds it but will fans come?

    Winter Olympics: South Korea builds it but will fans come?

    Most venues for the 2018 Pyeongchang Games are virtually finished and the organisers are about to launch a domestic and international marketing blitz, touting Korean technology, culture and food as they seek to persuade sports fans from around the world to make the long journey to north-east Asia.

    Lee, though, has his doubts. Dried pollack — dessicated during the biting chill of winter — is a speciality of the area, but he thinks Westerners would find his signature product “a bit hard to eat”.

    He is not planning to increase production for next winter, he told AFP, despite his prime retail location and a chance to attract thousands of potential customers.

    With a year to go, many South Koreans express pride that they are hosting the games, and workers are already installing the upper levels of the Olympic structure opposite Lee’s premises.

    The only sporting facility still awaiting completion is a new ski slope for the downhill events — none of the existing resorts have high enough mountains to provide the vertical drop required according to regulations — but even that is 85 percent finished.

    A roomy show flat in the Olympic village, complete with bedspreads covered in sports symbols, has two sets of double glazing to protect against the cold.

    Looking out from the top of the vertiginous K125 ski jump, tiny staff in dayglo green jackets far below prepare the landing area snow for a test event, the cross-country course runs through wooded hills nearby, and wind farm turbines line the horizon.

    But marketing has so far been conspicuous by its absence. On the road from Seoul, the first mention of the Winter Olympics is a plain white sign on a hillside around 30 kilometres (19 miles) from Pyeongchang.

    It is a notable contrast to the next host China, where multicoloured billboards already line highways more than an hour from the venues, despite the fact that its Games are not until 2022.

    A Gallup Korea survey released Tuesday said nearly half of South Koreans — 49 percent — were not interested in the Winter Olympics, with 19 per cent having “no interest at all”. Only 48 percent were interested.

    The question of promoting the Pyeongchang Olympics — taking place an intercontinental flight away from the traditional markets of North America and Europe — is increasingly important.

    “It’s a fundamental issue,” IOC Olympic Games executive director Christophe Dubi told AFP.

    “We must sell these Games, and the challenge today — and we have spoken openly about this with the Pyeongchang organisers — is to engage this effort both at the Korean level and internationally,” he said.

    Even South Korean media have expressed concerns. In a stinging editorial, the Chosun Ilbo newspaper lamented that there was “no excitement or buzz around the Games that are only about a year away” and warned of the risk of “international embarrassment”.

    – ‘Games for Asians’ –

    The push will begin on Thursday, said Lee Hee-Beom, president and CEO of the Pyeongchang Organising Committee for the Olympic Games (POCOG), when tickets go on sale in South Korea. International availability depends on each country’s national Olympics committee.

    Top category seats for the opening ceremony and men’s ice hockey final cost 1,500,000 Korean won ($1,300) and 900,000 won ($800) respectively, but several disciplines ranging from biathlon to skeleton have tickets as cheap as 20,000 won.

    “From February 9th we will have promotions and we will expedite promotional activities around the nation and all around the world,” Lee told AFP, with advertisements on Seoul buses and international television networks.

    Pyeongchang will be the 23rd Winter Olympics, he pointed out, but the Games have only been held in 12 countries so far, all of them in Europe or North America aside from Japan, which has hosted them twice, at Sapporo in 1972 and Nagano in 1998.

    So far winter sports have been “games for the Europeans, games for the Americans”, he said. But with China to follow South Korea as host country, it meant “winter sports become games for Asians”.

    Beijing has declared its intention to have 300 million winter sports fans by the time it hosts the event.

    But at the Yongpyong resort where the slalom events will be held, tour guide Uno Wang — who has been escorting groups from China for 15 years — warned against relying too much on South Korea’s giant neighbour.

    “We usually introduce the Olympics to the people that we bring here but they don’t show that much interest,” he said. “It’s generally like that in East Asia. China is a country that’s not that into sports, especially winter sports.”

    And Chinese tourism to South Korea is under a cloud, with Beijing infuriated by the country’s planned deployment of a US missile defence system, THAAD, in response to nuclear-armed North Korea’s atomic tests and rocket launches.

    Beijing has imposed measures seen as economic retaliation, and Wang says his visitor numbers have fallen by 30 to 50 percent as a result.

    “If the South Korean government goes ahead with the THAAD deployment maybe the numbers will decrease even more — 70 or 80 percent,” he said. “It’s a very serious problem.”

  • Vietnam’s government approves Samsung extra pouring

    Vietnam’s government approves Samsung extra pouring

    According to SDV’s plan, the firm will carry out the expansion for five years starting in 2018, bringing the sum to be invested in this project to $6.5 billion and making it the largest project invested in by the South Korean giant.

    “Government approval will be officially announced soon,” said Minister-Chairman of the Government Office Mai Tien Dung at a press meeting on February 3.

    The provincial government earlier asked for government permission to offer tax incentives for the additional investment, which will enable the project to be classified as large-scale project.

    The plan for expansion is likely to be finalized as soon as the first quarter of 2017, according to local media.

    Samsung Display in 2014 set up the factory to assemble AMOLED panels into modules for use by Samsung Electronics’ smartphone factories in Bac Ninh and Thai Nguyen, which is also in northern Vietnam.

    The AMOLED panels are transported from its factories in South Korea. The South Korean company has dominated the global supply of smartphone AMOLED panels.

    In order to maintain the market status and viewing that Apple is very likely to adopt AMOLED panels for the new iPhone to be launched in 2017, Samsung Display plans to expand the factory of AMOLED modules in Vietnam.

    Companies setting up plants in Vietnam, such as Samsung Electronics, are transforming the country into a manufacturing hub for electronics goods, including smartphones.

    From a trade deficit of $3.5 billion in 2015, Vietnam returned with a trade surplus of $2.68 billion in 2016.

    Wage cost competitiveness is the key reason it’s attracting capital away from countries with worsening demographic transitions in East Asia.

    Institutional reforms have also contributed to making Vietnam more foreign investor friendly.

    Revised investment and enterprise laws have cut the time needed to establish a new business. Lower corporate income tax rates and streamlined payments have also helped.

    South Korean companies have deployed 592 projects worth a combined $8.6 billion in Bac Ninh, accounting for 65.6 per cent of the total foreign direct investment (FDI) in the province.

    Samsung has been the largest single foreign investor in Vietnam, with its investments totaling some $15 billion.

    This is not the first time the Korean giant has asked for incentives for its projects in the country.

    The FDI sector continues to lift Vietnam upwards, with it making a contribution of more than 20 per cent to GDP growth since 2010.

    Last year, disbursed FDI rose by 9 per cent to a record $15.8 billion and committed FDI increased 7.1 per cent, to $24.4 billion.

    The Foreign Investment Agency at the Ministry of Planning and Investment announced that 2,547 FDI enterprises bought stakes of more than 50 per cent in Vietnamese companies or in conditional investment sectors last year, totaling $3.425 billion.

    But while exports rely heavily on specific FDI enterprises, the technology absorption and enhancement of human capital that Vietnam was supposed to acquire from FDI inflows are nowhere to be found.

    Vietnam’s workforce is largely engaged in the final assembly of products for export, which are primarily low value-added, labor-intensive and use low-level technologies.

    The foreign sector plays a crucial role in the Vietnamese economy, but considerable tax incentives granted to overseas investors may lead to distortions of the overall investment climate, the World Bank has said in a report.

  • Local retailers must prioritize selling online for 2017

    Local retailers must prioritize selling online for 2017

    As first blush, the arrival of transnational retailers in the metropolitan centres of Vietnam appears to be a boon for consumers who want wider choices and a death sentence for local retailers, most of whom are small.

    These local smallholders suddenly find themselves facing foreign rivals wielding a daunting array of advantages including – substantial financial resources, advanced technology, superior products, powerful brands, and professional staffs with seasoned marketing and management skills.

    Most of these small business owners think they cannot compete with their larger foreign rivals and are left calling on the government to reinstate trade barriers or provide some other form of support.

    Still others seek strategic alliances with the so-called ‘big and mighty’ transnationals, while a significant number of local companies just throw in the towel and shutter their doors.

    But experts advise that small retailers by the tens of thousands around the globe have managed to develop winning strategies to successfully defend their home turf against the same brand name transnational retailers the likes of Lotte, AEON, MM Mega Market and Big C that are gaining market entry into Vietnam.

    Defending with the Home Field Advantage

    The key to success say the owners of these small but successful companies is to concentrate on the advantages they enjoy in their home market.

    In the face of aggressive and well-endowed foreign competitors, they with near unanimity suggest to local retailers that they will do better by focusing on consumers who appreciate the local touch and ignoring those who favour global brands.

    Give effect to a strategy that concentrates on the large group of consumers who remain loyal to traditional products and stock the store shelves with brands positioned around beliefs in long-standing Vietnamese ingredients.

    Recognize the importance of Online Sales

    Recognize that the internet continues to attain more and more users with each passing month and online sales is growing faster than any other retail sector in Vietnam, say the experts. Local retailers should expect this trend to continue and recognize that their business needs to be part of it.

    The internet is growing very fast in Vietnam, says Vu Xuan Truong from the Institute for Brand and Competitiveness strategy. Nearly 50 million Vietnamese use the internet frequently to make purchases and internet sales are on a steep upward trajectory.

    With more than 60% of today’s youth shopping online and that percentage expected to grow at an astronomically fast rate, local retailers in Vietnam cannot afford to underestimate the importance of selling online.

    Truong says that 2017 should be the year that all local retailers throughout the country set up shop online and discover how to drive online domestic sales and access new export markets via social media, search engine optimization and ecommerce.

    Local retailers need to understand that the internet is the biggest supermarket in the country (and the globe). If they want to compete in retail with the large transnational retailers making market entry into Vietnam— they must be online.

    Truong adds that if they are not online, they simply cannot win in retail in Vietnam or anywhere around the globe.

    Though selling products online may seem a little daunting at first, a beautifully designed and developed website is indispensable for all local retailers in Vietnam, says Le Doan Hop, president of the Digital Communications Society.

    Local retailers must learn to master web technology to help their businesses increase sales utilizing an effective ecommerce online sales strategy if they are to successfully compete with the large transnational retail giants in this digital age, Hop concludes.