Retail News CRM

Author: Mei Ling Tan

  • Stocks, cryptocurrencies the new darlings as other assets remain in deep slump

    Stocks, cryptocurrencies the new darlings as other assets remain in deep slump

    With most traditional asset classes taking a beating from the economic downturn caused by Covid-19, investors are flocking to the stock and cryptocurrency markets.

    At lunchtime on a regular working day, a smartly dressed young woman was sitting in a corner in a downtown HCMC cafeteria, staring at a laptop in front of her. She was going back and forth between charts and messaging apps to check what her broker was sending.

    She was a newbie on the stock market, having begun just two weeks earlier.

    Thanh Dang, 26, a full-time administrative assistant, explained her decision: “These days no one in my office does any work except text or talk to each other about stocks, forex and cryptocurrencies.

    “Most investors I know follow others’ advice and learn things on the fly. Some of them initially made profits and became even keener. So I decided to give it a try and started modestly.”

    Doan Duong, 37, a Hanoi architect, quit the forex derivatives market after making a huge loss but shows no signs of being discouraged. When the stock market surged in 2020 and everyone seemed to make a lot of profits, he decided to jump in.

    When talking about a 20 percent profit he made in four months, he smiles confidently and asks rhetorically, “If you want to get rich then you need to take risks, right?”

    Doan and Thanh are just two of the millions of people who have begun to trade stocks and cryptocurrencies in the past few months.

    According to the Vietnam Securities Depository (VSD), they opened 393,659 securities trading accounts last year, a 20-year high in a market that is less than 21 years old.

    In February, they opened another 57,000 accounts, tripling that of the same period last year.

    The vast majority of domestic accounts, 2.73 million, belongs to individual investors.

    In the last six or seven months, retail investors have been piling into the market, helping it shrug off the effects of a sell-off by foreign investors. In fact, the Vietnamese stock market was one of the five biggest gainers in the world, according to StockQ.org.

    In the first quarter of this year retail investors kept the market up while trading value was consistently at VND18-19 trillion ($778.12-821.3 million) per session.

    German data company Statista said following a recent survey of 1,000-4,000 respondents each in 74 countries that Vietnam ranks second globally in terms of ownership of Bitcoin and other cryptocurrencies.

    Nhan Trong Nguyen, a financial consultant, skims through hundreds of messages daily from stock traders, brokers and cryptocurrency sellers, almost all asking him to represent consultancies or trading platforms for cryptocurrencies, derivatives and binary options.

    His blog on finance and banking has more than 50,000 followers.

    Nhan says: “If you look closely, Vietnamese are consistently in the top three list of most frequent traders at global BitCoin exchanges such as Poloniex and Bittrex.”

    In recent conversations with his followers he learned that Vietnamese are frantically switching from Bitcoin to other newer cryptocurrencies because it has become increasingly challenging to mine.

    PI is the most popular of the alternatives, supposedly mineable on smartphones.

    There are hundreds of groups calling on people on social media and online forums to join Pi mining networks.

    Dominic Scriven, chairman of HCMC asset management company Dragon Capital, explains: “This is a logical choice to cope with the changes in monetary policy worldwide and in Vietnam to protect their money.”

    Since the onset of Covid-19 in early 2020, the State Bank of Vietnam has cut its policy rates four times to keep the economy afloat, driving banks’ deposit interest rates to all-time lows in February 2021 before they recovered slightly this month.

    The real estate and gold markets too are stagnant and are also beset with difficulties.

    A note by the HCM City Real Estate Association said the number of property transactions plummeted between March and August 2020 before making a marginal recovery since September.

    All this meant that since the start of the pandemic only a tiny portion of investments have been flowing into traditional asset classes as investors sought profitable alternatives like stocks and cryptocurrencies.

    Many stocks gained sharply, making newcomers even more impatient and afraid of missing out, further increasing the number of accounts and causing a cycle in the market.

    In the beginning Vietnamese used the likes of Bitcoin, Ethereum, Litecoin, and Ripple to receive money from abroad since it meant no more bank hassles and exorbitant fees. But it is no longer the main reason for investing in them.

    Lawyer Truong Thanh Duc says: “The State Bank of Vietnam has warned that owning, trading and using cryptocurrencies are risky and not protected by the law, but that does not seem to deter investors.”

    A large number of people are investing now in cryptocurrencies because they want to get rich fast despite a sluggish economy.

    This is also true of stock investors, many of whom seem to believe they can somehow predict market movements and make big profits from short-term trading.

    Though it might be too early to hark back to the stock market bubble of 2007-08 the relentless rise in the market is definitely cause for wariness, according to some economists.

    “It is never a good idea to try to guess the market’s movements, and investors should have a long-term view instead,” Nhan warns.

    Cryptocurrencies are not protected by law, and so all trading in them need to be done with great caution and, most preferable, expertise.

    Decisions driven by rumors and greed might see inexperienced investors burn their fingers.

    The enthusiasm retail investors have had for stocks and cryptocurrencies since 2020 continues to draw in more newbies.

    But one piece of good news for those who fear they have missed out on the action is the prediction by Finland’s PYN Elite Fund that the market will continue to grow, with the VN-Index possibly reaching 1,800 points.

    Nevertheless, new entrants need to move their goalpost from “get rich quickly” to increasing the value of their assets over the long term and hedging inflation.

    Another sensible piece of advice from experts is to diversify one’s investment portfolio.

    Nhan says: “The ideal return from shares should be around twice the bond interest rate. Any broker who promises you way more than that could be scamming you.

    “VN30 stocks and companies with an excellent reputation are always a good choice for beginners.”

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  • BNY Mellon Invests in Crypto Storage Firm

    BNY Mellon Invests in Crypto Storage Firm

    BNY Mellon will further its inroads into the digital asset market with its latest investment into crypto storage firm Fireblocks.

    The world’s largest custodian bank was part of the latest funding round for Fireblocks which raised a total of $133 million, according to a statement.

    In addition to strategic investments from BNY Mellon and Silicon Valley Bank, other participants of the funding round include hedge fund Coatue Management, investment firm Ribbit Capital, growth equity firm Stripes and SVB Capital. Existing investors including Paradigm, Galaxy Digital and Swisscom Ventures also participated in the round.

    To date, Fireblocks has raised $179 million and according to a report citing unnamed sources, the latest funding round values the firm at nearly $1 billion.

    Currently, Fireblocks has a presence in Europe, North America and Asia with a wide range of clients including banks, neobanks, exchanges, hedge funds and market makers. Within Asia, it has over 35 clients including Hong Kong-based crypto financier Amber Group and Singapore-based hedge fund manager Three Arrows.

    Over the past three years, clients have entrusted Fireblocks to secure more than $400 billion in assets.

    «Fintechs and banks require not only a specialized custody and settlement infrastructure to ensure customer funds are safely managed, but a platform that enables new lines of digital offerings,” said Fireblocks CEO Michael Shaulov. «While we have no plans to become a bank, we believe our infrastructure will lend itself perfectly to power an entirely new era of financial services.»

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  • Time to Unlock the Payments Pocessing Conundrum

    Time to Unlock the Payments Pocessing Conundrum

    To say the industry has been through some seismic changes over the past decade is an understatement, to put it mildly. From ever-increasing defaults and regulatory changes to clearing and collateral, not to mention the continued use of technology and automation.

    Global financial markets have been exposed to a series of changes in what is an incredibly vast and complex landscape. However, if there is one thing that has remained constant is processing and lots of it.

    Processing, the plumbing that underpins the entire financial system, is vital to ensuring the health and stability of markets. It needs to be done in a timely fashion, and the data needs to be correct and in-line with any regulatory obligations. Some parts of the post-trade lifecycle are well-oiled, mainly due to regulatory pressures on specific focus points as well as the central network effect and interoperability between both asset-classes and process types. Others, though, simply are not.

    The evolution of derivatives has in other areas resulted in continued layered manual processing. Not only does it still rely heavily on email and excel spreadsheets, but also offers relatively low levels of control. If this was not enough, ever-rising volumes and the fragmented nature of these processes have led to costly and unscalable workloads. We all know volumes can be erratic.

    Too many factors to list constitute an impact on volumes, but decisions are often made that result in ‘quick and dirty’ layered manual processes that become really challenging to manage over time. Factor in the current global pandemic that has now surpassed a year in the making and the challenge only gets harder.

    The payments and settlements space is not only huge but also fundamental to all other parts of the trade-lifecycle. Ultimately, trades need to settle, yet a lot of inefficiencies exist. Traiana’s research from 2019 showed that $500 million a year is spent supporting certain inefficient payment and settlement processes for the top 450 financial firms (50 global investment banks/400 Global Investment management firms) and could be higher with continued challenges.

    The bulk of this is centered around the messaging and matching of cashflows. There are several key challenges and inefficiencies when it comes to the messaging and matching of these cash flows, including:

    • Different cashflows: these can be handled by different internal systems, which can use various data types. Typically, inefficiencies exist in uncleared products.
    • Margin management: inefficiencies exist in uncleared products. Depending on the asset class and the regulated domicile of the entities there may be some level of margin management occurring, but these are large exposures, often running uncovered and into the tens of millions of dollars that can remain unsettled past the expected settlement date due to the manual nature of the confirmation/affirmation process.
    • Settlement errors: with an increase in regulatory focus for late or incorrect settlement fines, inefficiencies can soon cost more than just the cost to manage.
    • Uncleared headaches: the OTC world, while under tighter controls from the phased-in uncleared margin rules (UMR), remains fairly antiquated in part. Many banks and buy-side firms are still using email and excel based processes to agree to, and then often instruct cashflow movements across all asset classes, including in OTC where products could be cleared but aren’t. These flows are often mismatched, unmatched, or sent to the wrong place entirely to agree and confirm.

    Large banks and buy-side firms are still using email and excel based processes to agree to, and then often instruct cashflow movements across all asset classes, including in OTC where products could be cleared but aren’t. These flows are often mismatched, unmatched, or sent to the wrong place entirely to agree and confirm.

  • 4 important things to do when starting an ecommerce business

    4 important things to do when starting an ecommerce business

    Creating a new ecommerce store is no longer an arduous task, as the processes to bring a store online have become more streamlined.

    You now have a variety of ecommerce out-of-the-box web builders pre-built with store pages, user login areas, payment systems, and promotional options. In most cases all you need to do is add your brand’s logo, upload your items on relevant pages, add a description, photo, and then set your price—you are ready to go!

    Although the process is easier than ever before, there is still a list of important prerequisites you need to research and implement before you launch your new site and create a new buzz in your chosen marketplace.

    1.           Choosing the right ecommerce website builder

    Most pre-packaged ecommerce stores are brilliant to put it simply. The architecture behind them is so good that even the lesser tech savvy of us out there can figure out how to create a fully operational store. However, that does not mean to say that you should just go out there and pick the first one you like the look of. And there are some good reasons why you need to choose the right one for your ecommerce project you need to take heed of.

    Although many ecommerce web builders are easy to set up, you may find that some features are not free. You should compare ecommerce platforms, use demos available, and take a close look at the monthly costs versus free tools that come with the package.

    The best ecommerce website builders, like Wix for example, offer free web hosting, 24/7 support, domain security via 128-bit SSL encryption HTTPS, and you can get a personalized business email with a custom domain name. You can even use the Wix business name generator and once you are happy with the name, you can then choose your domain name.

    Other sites may not offer the little things that matter, and save you time, which just complicates things and adds additional costs. Therefore, in the case of Wix, you are getting an all-in-one solution under one roof.

    2.           Create Social Media Profiles

    Social media is not just a way to promote your site, but it is also a way to build a brand presence. As long as you offer a top-quality service, you should get great reviews, and it also gives you a chance to connect personally with your customers via the comments section and personal messenger tools.

     

    Another reason social media is important is because each platform helps you to connect with different audience types, i.e., personalities, demographics, and those with varying buyer behaviors. Facebook, Instagram, Twitter, and Pinterest all have unique audiences and statistics.

    “Did you know? Shopping is a top priority for 48% of Pinterest users and Pinterest is most popular with women—especially moms (Source: blog.hootsuite.com)”

    It is these crucial facts about certain social media platforms that will determine whether your ecommerce product will fit or attract those using these platforms!

    3.           Use Consistent Marketing Messages

    Marketing is a strange game, and for those new to it, rookie mistakes are inevitable no matter how much you read up on the subject. That is, unless you have a marketing degree or experience in the field.

    Now marketing a product all seems straightforward, and in many respects it is. You are selling a product; it has unique selling points, and you need to highlight them. However, here is where it gets tricky causing your business to trip even when they have the best intentions in mind.

    Today we have little choice but to use multiple advertising and social media platforms. The problem is that messages across these platforms often get mixed up. Even large corporations are still guilty of sending out different brand/marketing messages across their digital and offline marketing platforms. By doing so, this only serves to confuse customers and tarnish your brand reputation.

    Therefore, the message here is clear—always remain consistent across every platform you use to project your brand name, be it Facebook, Google Ads, guest post blogging, or offline magazine/newspaper ads. And more importantly, ensure these messages match exactly what your website ‘says’, ‘displays’, and ‘offers’.

    4.           Customer Support

    The very last point to make is probably the most important for long-term success. Yet, we left it until the end because you need to get the above 3 points spot on before your customer services kick into action.

    In the past, ecommerce was great. You could set up a store, visitors come, they buy, and you kick back and enjoy the ride as your automated emails and online sales systems do all the hard work for you.

    Now while that worked in the past to some extent- having no live support, email support, after care, pre-sales care, and out of business hours support like chat bots used by Cebu Pacific. Without these vital customer care components in place, you could lose your clientele to your competition that have more efficient customer care solutions.

    Therefore, make sure you research customer services, how to scale your customer support, and how to reward as well as continue to retain your loyal customers. You should also look at how companies lost their reputation and ended up sinking ships because they implemented poor customer support solutions.

     

     

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  • HSBC Launches Fund Administration Services in Thailand

    HSBC Launches Fund Administration Services in Thailand

    This move is in line with the change in the securities services landscape in Thailand, which has relaxed outsourcing rules to boost the efficiency of local fund managers’ operations.

    By outsourcing their back-office operations to HSBC, asset owners and managers will be able to focus on their core offerings, the bank said in an announcement on Tuesday.

    The service will be available on HSBC’s Multifonds fund administration platform. HSBC clients already have access to custody and fund supervisory services offered by the bank.

    “Our clients have expressed a keen desire to improve efficiency and reduce cost, reduce operational risk, adapt to their investors’ need and manage regulatory changes effectively, Utumporn Viranuvatti, HSBC head of securities services, Thailand, said in the announcement.

    The bank said it has many other offerings planned as a part of HSBC Securities Services’ Asia-first strategy to accelerate growth in the region by ramping up its investment in additional solutions and capabilities.

    HSBC has been expanding its offerings in Thailand as part of its bid to strengthen its Asean coverage. HSBC Private Bank launched its onshore business in the kingdom in February 2021, the bank’s second onshore business in the region after Singapore.

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  • Buying Art Online Goes Mainstream

    Buying Art Online Goes Mainstream

    While overall art sales contracted in 2020 amid the Covid-19 pandemic, online sales doubled in value. Aggregate online sales reached a record high of $12.4 billion, doubling in value from 2019, while the share of online art sales grew from 9 percent of total sales by value in 2019 to 25 percent in 2020, according to the fifth Global Art Market Report, published by Art Basel and UBS.

    This was the first time the share of e-commerce in the art market exceeded that of general retail. This growth also came despite a 22 percent dip in sales of art and antiques globally, which stood at $50.1 billion in 2020

    According to Christl Novakovic, CEO UBS Europe SE, head wealth management Europe and chair of the UBS Art board, called 2020 a «turning point for digital innovation in the art market, which traditionally relies on discretionary purchasing, travel and personal contact.

    The crisis also provided the impetus for change and restructuring, the most fundamental shift being the rollout of digital strategies and online sales, which had lagged behind other industries up to now, said Clare McAndrew, founder, Arts Economics, who authored the report.

    The report incorporated a survey of 2,569 high-net-worth (HNW) collectors, of which 66 percent felt the pandemic had increased their interest in collecting, while 32 percent reported it had significantly done so. Some 57 percent said they planned on purchasing more artwork in 2021.

    And while the pandemic prompted the cancellation of high-profile art fairs – where the largest deals traditionally are sealed – some 45 percent of collectors also said they made a purchase through an art fair’s online viewing room.

  • Validus’ Indonesia Arm Wins Lending License

    Validus’ Indonesia Arm Wins Lending License

    The platform, which caters to the financing needs of micro, small, and medium enterprises (MSMEs) in the country, experienced strong growth in 2020.

    Batumbu, a subsidiary of Singapore-based Validus, has received regulatory approval to operate as a licensed digital financing platform in Indonesia, it announced in a statement.

    With the license, the startup will ramp up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia, Jenny Wiriyanto, CEO of Batumbu said.

    Batumbu has disbursed over S$207 million ($153.76 million) to MSMEs since starting its operations in April 2019. In the past year, it has grown by some 650 percent as MSMEs pivoted their businesses amid the COVID-19 pandemic.

    The strong performance is expected to continue as economic recovery and activity picks up, Validus said.

    Our “glocal” structure gives us a strategic advantage in implementing best practices, strong credit models and governance framework across our markets, Ajit Raikar, Validus’ co-founder and executive chairman, said in the announcement.

    Launched in 2015, Validus has since facilitated over S$775 million in SME financing through its entities in Singapore, Indonesia, Vietnam, and most recently, Thailand.

    Validus is backed by the likes of Netherlands development bank FMO and Temasek Holdings’ Vertex Ventures and Vietnam’s VinaCapital.

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  • IMAS’ Fintech Mentorship Program Returns

    IMAS’ Fintech Mentorship Program Returns

    The digital acceleration program gives fintechs the opportunity to work with professional mentors and develop solutions that can be rapidly commercialized.

    The Investment Management Association of Singapore (IMAS) has announced details of its 2021 edition of the Digital Accelerator Programme (DAP), which will focus on ESG, automated data management, and risk assessment.

    The Association-led buyside accelerator program is looking for fintechs with new approaches to improve and streamline operational processes, better manage data and risks, and create innovative tools to help managers manage their ESG regulatory requirements and reporting amidst fragmented global requirements. Partners for Track 1 include Nikko AM and Schroders. Interested fintechs have until 29 March 2021 to apply.

    In Track Two, which will take place in June/July, IMAS will invite asset management firms to work closely with fintech companies to create opportunities for the showcase of shortlisted solutions with the best fit.

    As many organizations operational processes change with the new CV-19 realities, we are creating a second opportunity for asset management firms to contribute problem statements which IMAS will then launch a global search for the relevant fintechs to solve, IMAS said in the announcement.

  • Citi Private Bank Loses China Heavyweight

    Citi Private Bank Loses China Heavyweight

    Citi Private Bank loses several within its mainland China coverage team, including a veteran relationship manager.

    Citi Private Bank’s global market manager for southern mainland China, Kevin King, has resigned from the bank, sources said. In addition, another four have also left the China team at the private bank.

    A spokesperson for the bank declined to comment.

    King spent a decade with Citi Private Bank covering the China market after kicking off his private wealth career with UBS and J. Safra Sarasin. Prior to joining the industry, he worked at the Hong Kong Trade Development Council where he focused on developing relations with the Greater China business community.

    The departures occurred in the midst of a new organizational structure for Citi’s private banking arm.

    Previously a standalone business, the American lender will now run all its wealth management businesses under a single unit, merging teams that cover the full range of clients from retail to ultra-high net worth individuals. The new unit will be led by ex-global head of investor sales and relationship management Jim O’Donnell.

    Last year, Citi’s merged wealth management businesses in Asia Pacific posted record-high net new money of $20 billion, a 10 percent year-on-year increase, according to the bank. This led assets under management to grow to $238 billion with a client base that includes approximately one-third of all billionaires in the region.

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  • Smart factories: The future of Asia’s manufacturing hub

    Smart factories: The future of Asia’s manufacturing hub

    Manufacturing is one of the key pillars of economies in the Asia Pacific (APAC) region. According to GlobeNewswire, APAC is the largest general manufacturing market in the world, accounting for 43% of the global market. With the advent of the Industry 4.0 revolution, the world’s largest manufacturing hub will experience significant shifts as connectivity becomes the backbone of next-generation factories, where artificial intelligence (AI), machine learning, cloud computing and the Internet of things (IoT) are being embraced to unleash technology-driven smart manufacturing.

    Founded on the interconnectivity of machinery sensors and intelligent systems, the Industrial IoT (IIoT) adds intelligence to traditional manufacturing processes and management. Smart manufacturing solutions help to connect, automate, analyze and monitor equipment and processes to yield informed decision-making, maximize operational efficiency and improve product quality. Advanced IIoT solutions offer real-time data and meaningful insights that accelerate response time to raise overall productivity and sustainability.

    Factories are moving towards real-time capabilities, virtualization, decentralization and modularity to facilitate productivity, precision and agility. At the heart of this revolution are 5G networks that deliver reliable, high-speed connectivity, greater bandwidth to accommodate massive data traffic, extremely low levels of latency between devices, network slicing for virtual separation of networks and mobile edge computing (MEC) to facilitate edge computing. As a key enabler in smart factories, 5G together with IoT bring about innovative technologies such as automation, collaborative robots (cobots) and real-time remote monitoring.

    In 2020, the global smart factory market was valued at USD270.74 billion. According to Mordor Intelligence, this value is estimated to reach USD461.82 billion by 2026 – representing a CAGR of 9.33% during this period. During which, APAC dominates the market owing to increased foreign direct investment and industrial development. In conjunction with the deployment of 5G in countries, governments in the region are also encouraging smart manufacturing adoption through policies and assistance.

    As one of the earliest adopters of 5G innovation in the world, and an economy that relies heavily on manufacturing, South Korea unveiled a plan last year to leverage 5G and AI to roll out smart factory solutions alongside telecom providers to the country’s small and medium-sized businesses. The aim is to have 30,000 factories by 2025.

    In China, where manufacturing accounts for about 38% of the country’s gross domestic product (GDP) in 2020, and the world’s largest manufacturer in terms of output, strategies are in place to tap on advanced manufacturing to grow its position into a manufacturing superpower. Initiated in China, the “Made in China 2025” 10-year government plan was rolled out in 2015 to focus on rapidly developing the country’s manufacturing capabilities critical to its fourth industrial revolution. Reinforcing its efforts, China revealed a more comprehensive plan on 5 March 2021 as part of a new 5-year plan to enhance its manufacturing capabilities by 2025.

    Currently, smart manufacturing is adopted more widely in industries that emphasise high-volume and low-margin production. It is also deployed in highly-regulated industries such as the pharmaceutical and food and beverages industries, where tracking and traceability are critical. Entire value-chain processes can be automated to rely on robotic inspections, for instance, to reduce human errors. With automated inspection processes, smart factories harness machine learning and AI to accurately detect defects.

    Increasingly, innovations are focused on areas such as predictive maintenance, remote monitoring and control, real-time supply chain management, advanced process control and quality management.

    Using a network of IoT sensors, CCTVs and thermal imaging cameras, equipment wear and tear can be determined ahead of time to prevent disruption to production lines. In the event of failures, engineers from across locations can leverage remote augmented reality (AR) to troubleshoot problems so that maintenance can be carried out as promptly as possible to reduce downtime and eventually costs. Blockchain is also becoming relevant for manufacturers as the technology fosters transparency and accountability throughout the supply chain as massive information is shared simultaneously across large quantities of devices.

    Last year, disrupted supply chains owing to global lockdowns placed a tremendous strain on the manufacturing industry to respond to volatile market demands. Yet, manufacturers with fully-automated production lines that relied on AI, big data and remote operations managed to cope better. Manufacturers also saw the benefits of cobots working alongside humans, with cobots performing more repetitive tasks while humans attended to important decision-making to better respond to disruptive trends and deliver more optimal products.

    With 5G networks being critical to the digitalisation of the manufacturing industry, many tech providers are already expanding into the 5G space to provide private 5G networks. For telecom operators, this means tapping on its expertise to generate new revenue streams. Instead of simply providing manufacturers the 5G network capacity and connectivity required to power smart factories, telecom operators are partnering with strategic service providers to assist manufacturers in adopting transformation technologies that future-proof their processes.

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  • Bright prospects seen for Vietnam property market

    Bright prospects seen for Vietnam property market

    Economic stability, positive investor sentiment, strong demand, and a diverse range of products are keeping the property market robust. The assumption that Covid-19 would cause the market to slump has proven baseless, and market research aftermarket research shows property prices increasing across the board.

    Vietnam’s bright economic prospects and strategies adopted by many major property developers also contribute to the market’s strength.

    According to the World Economic Outlook Report, a survey by the International Monetary Fund (IMF), in 2020 Vietnam’s economy grew at 2.4 percent, one of the four highest rates in the world. Its effective anti-epidemic strategy and economic growth are expected to be highlights this year too. Fitch Ratings forecast Vietnam’s GDP to grow at 7.5 percent even of there is a new outbreak.

    “Vietnam has well-controlled the pandemic, so we think the economy will recover when domestic demand bounces back,” Sagarika Chandra, head of Vietnam analysis at Fitch Ratings, said.

    Nguyen Xuan Thanh, a Fulbright University lecturer and member of the prime minister’s Economic Advisory Group, said the positive investor sentiment despite the Covid-19 crisis is driven by the stable economy and sound financial system.

    The belief that everyone would surely get vaccinated this year further strengthens investor sentiment, he said.

    “Stocks and real estate are still good investments.”

    The market has seen a geographic shift from areas such as HCMC. If in the past the most important southern market was Saigon, it is now its satellites such as Binh Duong, Dong Nai and Long An provinces and others with tourism potential such as Binh Thuan, Ba Ria – Vung Tau and Khanh Hoa.

    Bui Nguyen Huyen Trang, senior director for Vietnam at JLL, stressed the importance of property developers in construction and urban planning.

    “They must carefully study urban planning to create sustainable value for their large-scale projects.”

    During Covid-19 times, businesses with strong foundation, offering a wide range of products towards demand for home ownership would have more opportunities to succeed.

    The eastern part of Ho Chi Minh City is forecast to be a property hotspot, when Thu Duc City has been officially established, pushing housing prices in this area to record levels.

    With rapidly improving infrastructure that boosts regional connectivity, satellite towns and tourist cities in Binh Duong, Dong Nai, Ba Ria – Vung Tau, and Binh Thuan are of immense interest to investors.

    Terence Alford, director of capital markets and investment services at Colliers Vietnam, said developers tend to search for alternative locations to HCMC to increase value.

    They also focus on creating living spaces to not only increase choices for customers but also contribute to improving the quality of life, setting new trends and offering new life experiences.

    Novaland, a property developer, has recently released its financial report. In 2020 the company achieved profit after tax of VND3.91 trillion, 7 percent higher than it targeted and up 15.3 percent from 2019.

    Total consolidated revenues from sales of units and projects and services were VND8.6 trillion. As of December 31, 2020, Novaland’s total assets were worth VND144.54 trillion, an increase of 60.6 percent from a year earlier.

    In 2020 Novaland disbursements were allocated for M&A activities and project development. The company continues to raise funding from reputed financial institutions at home and abroad despite Covid-19, showing the trust in which it is held by partners.

    Novaland introduced new products in the last few months of 2020. Despite pandemic impacts, resort real estate projects such as the NovaWorld Phan Thiet and NovaWorld Ho Tram still drew great attraction.

    Experts do not foresee the property market crashing this year despite an increase in price levels, but instead expect it to remain strong due to strong demand, economic growth and stability and businesses’ clever strategies.

    In a recent report titled ‘Ready for a new cycle from 2021,’ VNDirect Securities Company said Vietnam’s property market has a seven-year cycle.

    In 2021 it is getting ready to enter a cycle of high growth amid positive factors such as amendments to the 2020 Construction Law and 2020 Investment Law and a forecast of solid economic growth this year.

    “The development of infrastructure and lower mortgage interest rates will have a direct impact on the real estate market. The upward trend in prices will continue due to the growing demand for housing,” VNDirect added.

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  • Nearly half of Vietnamese fear job losses due to automation

    Nearly half of Vietnamese fear job losses due to automation

    Forty-five percent of Vietnamese are worried about losing their jobs to machines in the future, a survey has found.

    Most respondents, 83 percent, think technology would change their jobs in the next 3-5 years, and 90 percent think that would happen in the next 6-10 years, according to the survey by global accounting giant PwC, which polled over 1,100 people in November and December last year.

    This poses a demand for enabling a future-ready workforce, it said.

    Dinh Thi Quynh Van, general director of PwC Vietnam, said: “While an upgrade or investment in technology can be immediate, equipping people with the right skills to meet the needs of the future, helping them thrive in the changing conditions of the digital world require time and constant effort.”

    The evolution of technology also caused for optimism, with 90 percent saying it would improve their job prospects in the future.

    In comparison, a 2019 PwC report said the global rate was 60 percent.

    Grant Dennis, chairman PwC Vietnam, said: “Our survey findings reflect the accelerated presence and influence of technology in the workplace and the pace of change that is to come in Vietnam.”

    Nearly nine out of 10 people said they are provided with opportunities to various extents to improve their digital skills at work, indicating that businesses are doing their part to meet the upskilling needs of their workforce.

    Some 93 percent of respondents said they are already making efforts to reskill and upskill to adapt to technological changes.

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  • Vietnam among world’s 10 largest aviation markets

    Vietnam among world’s 10 largest aviation markets

    Its effective pandemic response has seen Vietnam become the 10th largest aviation market with a week-on-week growth of 12 percent in domestic seat capacity.

    Vietnam registered an additional 117,000 seats between March 8-15, raising its total scheduled capacity to 1.07 million seats, according to data released Tuesday by British aviation analysis company OAG.

    Despite this impressive growth, the figure was still down 31.4 percent against the pre-pandemic level in January 2020, the company said.

    China is still the world’s largest aviation market, with over 16 million seats, followed by the U.S. and India. Indonesia and Japan rounded out the top five.

    “The recent steady if not earth-shattering increases in global capacity are very welcome and reflect as much optimism rather than confidence in the recovery process through the next few months,” OAG said.

    “There remain far too many variables for anyone to be really confident about the shape of a recovery, but vaccine passports and other initiatives are all helping to build some momentum.”

    Experts have suggested that Vietnam test “vaccine passports” on certain groups of entrants before adopting an official policy for the holders.

    Vietnam has recorded 904 cases in its latest Covid-19 outbreak since Jan. 28, but most of the 13 affected localities have gone through many days without any domestic transmission of the novel coronavirus.

    With the pandemic more or less contained, air travel demand has returned to normal, with many cities and provinces, including Hai Phong, Hanoi, Ho Chi Minh City, and Quang Ninh, allowing tourism services to resume.

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  • Alibaba has major ambitions for Vietnamese businesses

    Alibaba has major ambitions for Vietnamese businesses

    Chinese e-commerce giant Alibaba wants to have over 10,000 Vietnamese small and medium-sized enterprises selling on its platform by 2025.

    Its government relation and business development manager, Vu The Tung, who revealed this at a ceremony to sign a memorandum of understanding with the Vietnam Trade Promotion Agency on Tuesday, said his company would help Vietnamese businesses increase their exports by promoting their products.

    The two signatories have been running a training program since August last year to enhance Vietnamese businesses’ ability to participate in global e-commerce.

    Vu Thi Minh Thuy, manager of the agency’s information technology application center, said through the training program over 300 companies have been provided consultancy in online cross-border sales.

    Fifty agriculture, aquaculture, food processing, and packaging companies became ready to sell on Alibaba’s e-commerce platform after completing training in October, she said. The two sides hope to have 1,200 Vietnamese enterprises on the platform by the end of 2021.

    Deputy Minister of Industry and Trade Do Thang Hai, who hailed Alibaba’s support, said: “The Vietnam Trade Promotion Agency and Alibaba will continue to look for enterprises to take part in the training program, and create recognition for Vietnamese brands on Alibaba’s e-commerce platform. They are also planning to create an exclusive section for Vietnamese products on the Alibaba website.”

  • BMW’s New-Gen iDrive System To Provide Level 2 Autonomous Capability

    BMW’s New-Gen iDrive System To Provide Level 2 Autonomous Capability

    BMW has shown off its next-generation iDrive system, which is the software and hardware platform which comprises the infotainment system and in-car experience that has been prevalent since the dawn of the new millennium. Now, approaching its eighth generation, it has a new curved display that starts behind the steering wheel extending across the dashboard.

    BMW has basically merged the 12.3-inch instrument cluster with the 14.9-inch infotainment system — curved into a single unit facing the driver. Of course, not every vehicle will have the same screen size, but the panels will have the appearance of being “floating”.

    This new system will debut on the iX electric SUV as well as the i4 electric sedan. The big deal here is that the onboard computer will be able to process 20 to 30 times, more data than the previous models. This will enable greater synergy with the sensors that the cars will come equipped with enabling higher levels of autonomy.

    BMW’s chief technology officer Franker Weber himself describes the new iDrive as a major step towards fully autonomous technology — with support for level 2 and level 3 systems.

    “It is not an evolutionary step from what we had in the previous generation,” Weber said. “It’s an all-new, all-new system when it comes to sensors, computing, and the way it was developed,” he added.

    Level 2 systems include lane-keeping, blind-spot detection, automatic emergency braking, and adaptive cruise control. Level 3 autonomous driving involves more automation called conditional automation where the driver still has to be in a position to take over the control of the vehicle when requested. This feature is however is contingent on approval from local authorities.

    Weber hasn’t confirmed whether BMW will be providing access to level 3 automation however, he has hinted that level 3 testing is ramping up on the new version of iDrive.

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