Vietnam’s largest telecommunications company Viettel has received a license to trial its 5G services. The trial is licensed for a period of one year until January 21 next year. Viettel is the first company in Vietnam to receive this license. The military-owned company is allowed to trial the sevices in Hanoi and HCMC at not more than 73 locations and without charging for the services.
The company had earmarked $40 million for the development of its own 5G chipset, but was also considering using technology from Ericsson and Nokia, its president and CEO Le Dang Dung said.
Viettel has around 60 million subscribers in Vietnam and over 30 million more in 10 other countries, predominantly in Asia and Africa.
Speaking at a seminar on telecoms innovations at the end of 2018, Minister of Information and Communications Nguyen Manh Hung had expressed plans to introduce 5G by 2020, which would make Vietnam one of the first countries to deploy this technology.
5G is the latest generation in of mobile Internet connectivity, and should offer much faster speeds and more reliable connections on smartphones and other devices compared to the current 3G and 4G technologies.
Hyundai Mobis said Tuesday it logged $1.7 billion worth of orders for high-tech automotive parts from non-Korean customers last year, setting a new record for overseas sales. High-tech parts include sensors, display and lamps used for self-driving and electric cars. Last year’s figure is a 40 percent jump from $1.2 billion worth of orders in 2017. The parts company has been rapidly expanding its global presence over the years. Orders for high-tech parts from overseas customers totaled just $500 million in 2015.
The Hyundai affiliate said the record-breaking result is largely due to increasing demand from overseas electric vehicle companies and its focus on developing future car technologies.
According to Mobis, it received nearly $1 billion worth orders, 60 percent of its total overseas orders, from electric vehicle companies in North America, Europe and China.
Many electric car companies are start-ups. A Mobis spokesperson said companies at this stage of development tend to be more aggressive when it comes to investment in technology.
Recently, Mobis signed a deal to supply steering wheel-mounted displays and smart lamps to electric car companies. The products have yet to be commercialized.
Steering wheel-mounted displays are fit in the center of the wheel.
Smart lamps will be used for communicating with pedestrians or other cars through the display of light pattern messages.
The parts maker also signed a contract to supply lateral radars to a North American company. This type of radar extends the sensing coverage of autonomous vehicles.
The company said it will continue to expand sales of high value-added electronic parts this year as global automakers increasingly rely on digital features to differentiate their products.
Swedish-Chinese firm MobyMart is expanding its automated store format in China in collaboration with Shanghai fruit retailer Taoyuanming. Two stores are operating, one in Hefei and one outside Shanghai. While expansion in the region is the firm’s priority this year, its long-term sights are set on Europe and North America. According to brand co-founder Per Cromwell, MobyMart initially opened a corner-store-format mobile vending platform for coffee, which evolved into MobyMart, a mobile platform for “vending everything”.
“We found a very visionary fruit retailer in the suburbs of Shanghai, Taoyuanming, and basically they had physical stores but they wanted to have unmanned stores,” said Cromwell.
“We saw that we didn’t actually need to make too many adjustments to our existing system because basically what we had to do was pre-pack all the fruit — we needed to have fixed units and not have people buying by weight … and when we opened it up to the public it was an instant success.”
The store carries around 50 SKUs at a time.
Taoyuanming is reportedly so pleased with the results that two more automated stores are scheduled to open early this year, which may be followed by staffless stores if successful.
The firm’s strategy is to provide a platform to small retailers.
“If you are for instance a fruit store outside Shanghai and you want to expand from a few stores to 10 stores in your neighbourhood, then you can’t really start buying BingoBoxes because it’s quite complicated and expensive technology,” says Cromwell.
The MobyMart model relies on customers scanning their product, while cameras and sensors serve as a back-up. This “very simple technology” allows for opening “a lot of stores at a very low cost,” Cromwell says.
“It won’t be 100-per-cent staffless because you still need someone circulating the store and making sure everything’s fine and restocked, but one person in one day can operate eight to 10 stores depending on how spread out they are. So you have much more efficiency with the staff you do have.”
He added that AI and big data will help store operators know what products will be needed at what locations and at what time.
“If we have a request of some sort, that is something that will also solve the last mile problem,” he said.
The whole store and system is expected to retail for around US$15,000. MobyMart also has a prototype mobile store with automated driverless vehicle capacity – although its rollout is restricted by legislation around the technology.
Hyundai’s Universe is about to get bigger. Hyundai Motor unveiled an updated version of its luxury coach, the Universe, on Tuesday, increasing its size and adding safety features. The updated coach, scheduled for release next March, has an extended wheelbase of 12.5 meters (41 feet), 0.5 meters longer than the existing model. Distance between seats has been increased.
The vehicle comes with a variety of new safety features applied for the first time in a coach in the local market, such as an engine fire extinguishing system, driver attention warning and a rear-view monitor.
Hyundai Motor explained that the Universe’s driver attention warning system and smart cruise control are now offered to prevent drowsy driving and other avoidable accidents. The new Universe also has a refreshed exterior design with headlight changes and will be available in three trims.
Eyeing the burgeoning US$ 100 billion global natural foods and drinks industry, Jitin Munjal, former Global Director for Sales and Marketing at DuPont has announced his natural nutrition food and beverage venture, Jus’ Amazin Foods and Beverages Pvt. Ltd. Co-founded with his wife, Shilpa Mogilishetty, Jus’ Amazin started in the kitchen, as the couple were developing nutritiously rich natural food products that are delicious, for their son, who is allergic to dairy and soy products. After a lot of R&D, the kitchen experiment has now grown (over the last few months), to be present in 75 retail stores, and 20 e-commerce sites, pan-India.
Speaking on the venture, Jitin Munjal, Co-founder and CEO of Jus’ Amazin said, “Most packaged food is highly processed, packed with chemicals and low in nutrition, and as consumer awareness about the ill-effects of chemicals in food is growing, they are demanding foods that are natural, nutritious and delicious. While trying to find dairy and soy free foods for our son, we realized how underserved the natural and nutritious food market is in India. Jus Amazin caters to the health and nutrition conscious consumer with natural wholesome foods, which are both delicious and nutritious.”
Jitin Munjal is a seasoned professional and entrepreneur with more than 20 years of rich experience in Business Management, Marketing, Sales & Distribution, Product Development and in leading global and regional teams. Jitin has received his education from premier institutes such as Indian Institute of Technology Delhi, Indian Institute of Management Ahmedabad, London School of Economics and Political Science, and has worked with blue chip companies such as P&G, Tata Group (as part of the prestigious TAS), Castrol & DuPont. In his last corporate role, Jitin was heading global marketing and sales excellence at DuPont, a leading multinational corporation with interested in varied industries. Shilpa Mogilishetty holds a Masters in Anthropology from the University of Sussex and has worked across the corporate and social sectors, in the areas of Market Research, Media Planning and Change Management.
Jus’ Amazin’s current product range includes 100 percent natural, gluten free, soy free, dairy free and plant based foods such as nut and seed butters/ spreads (almond butter, organic peanut butter, seed butter and cashew butter). The products are currently available both online at leading e-commerce websites and also in retail stores in Bangalore, Delhi NCR, Mumbai, Pune, Chennai, Hyderabad and Goa. Leading brands such as Foodhall, Spar, BigBasket, Namdhari’s, Modern Bazaar, Loyal World, Amazon, HealthifyMe, FirstCry, HealthKart, Qtrove, The Gourmet Box, among others have partnered with the company.
Gold prices rose on Thursday as the dollar declined due to concerns the prolonged U.S. government shutdown will limit economic growth at the same global growth is slowing as well. Spot gold was up 0.1 percent at $1,283.31 per ounce, as of 0326 GMT, while U.S. gold futures were down 0.1 percent at $1,282.60 per ounce. “We are seeing a weaker U.S. dollar for the moment, which is in general supportive for gold,” Michael McCarthy, chief market strategist at CMC Markets said.
However, McCarthy cautioned that bullion price gains are limited by slowing investor buying as indicated by price charts used by technical traders.
“The issue for gold is there is a very heavy resistance seen around $1,290 and $1,310. A further weakening of the U.S. dollar could be supportive. But, we need something to really push gold through the resistance level,” he said.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell for third day, dropping 0.3 percent during that period. However, Asian shares rose on Thursday after Wall Street managed to end higher.
On Wednesday, U.S. President Donald Trump said that the United States was doing well in trade talks with China, saying at a White House event that China “very much wants to make a deal.”
However, a prolonged U.S. government shutdown reminded investors of risks to growth to the economy.
White House economic adviser Kevin Hassett said in a CNN interview the U.S. economy could see zero growth in the first three months if the partial government shutdown lasts for the whole quarter.
Meanwhile, investor focus turned to the European Central Bank (ECB), which is widely expected to keep its monetary policy unchanged at its first policy meeting of 2019 that ends later on Thursday.
Market watchers also expect ECB to acknowledge growing threats to the euro zone economy.
“The ongoing trade war, Brexit and slow global growth narrative are supportive for gold at present levels, as is Chinese seasonal demand,” MKS PAMP Group said in a research note.
“That being said, Comex non-commercial and exchange-traded fund (ETF) holdings remain extended, so we expect a bit of tug of war in the short-term between $1,270-$1,300.”
Holdings of SPDR Gold, the largest gold-based ETF, was at its highest since June 2018.
Among other metals, palladium, which hit a record high of $1,434.50 an ounce last week on low inventories and rising demand, rose 0.1 percent to $1,348.50 an ounce.
Silver was down 0.1 percent $15.35 an ounce, while platinum was steady at $795.
Hong Leong Investment Bank (HLIB) Research anticipates slower growth in the technology sector due to downside risks in the macro environment coupled with waning data trends. However, it expects automotive and Internet of Things (IoT) to take the forefront while smartphone takes a backseat. The research house said in a note that for the first 11 months of 2018 (11M18) global semiconductor sales were outstanding after growing 16%, thanks to the explosive growth of memory followed by discrete and optoelectronics.
As for 2019, consensus is projecting 3% growth for that segment.
“However, we see further downside to this projection considering the US-China trade conflict, stagnant smartphone demand, industry-wide inventory adjustment and weaker memory prices,” HLIB said.
The automotive sector is expected to be the major growth driver for global technology industry supported by its development towards full autonomy. The equipment industry remained solid with billings increasing 11% in 11M18, supported by heavy investments in all regions except Taiwan.
“However, year-on-year growth has been on a snail’s pace for the past five months, translating into a significant deceleration from past 20 consecutive months’ double-digit growth rates,” the research house explained.
According to SEMI, this reflected the near-term weakening demand for personal computers, mobile phones and servers as well as pulled back investments in response to recent softening of memory prices.
“This is in line with its expectation of expansion in capital spending not outpacing sales growth on the long run and potentially lead to industry-wide overcapacity,” said HLIB.
The research house also highlighted that local semiconductor players may experience strong demand to support the disrupted global supply chain should the procurement levy and technology transfer restriction from US take effect.
Note that China sources substantial fabrication equipment from US players for its expansionary semiconductor industry towards the “Make in China 2025” vision. Vice versa, US fabless semiconductor players outsource their product fabrication and some are produced in China.
With strong greenback, HLIB expects tech firms to be marginally boosted thanks to their US dollar-denominated sales while partly offset by the US dollar cost items.
It estimates the ringgit to be weaker in FY19 with at full-year average of RM4.20 against US dollar.
Nonetheless, pricier commodities, compounded by stronger US dollar projection, will exert pressures on margins for traditional packaging.
Maintaining a “neutral” call on the sector, HLIB displayed a cautious stance in the absence of near-term catalyst as it expects global sales and capital spending to grow moderately.
As for stock picks, it gave Frontken a “buy” call at a target price of RM1.05 on the back of bullish global semiconductor market outlook, robust fab investment, leading edge technology, oil and gas recovery and strong balance sheet.
The Housing and Development Board of Singapore has awarded a parcel of land measuring 2.5ha to Sunway Bhd’s Singaporean unit Sunway Developments Pte Ltd (SDPL) and Hoi Hup Realty Pte Ltd after a successful bid.
The land is slated for the SG$434.45 million (RM1.32 billion) Executive Condominium Housing Development. The group told the stock exchange that the land located at Tampines Avenue 10 (Lot 7545K MK 28), Tampines, Singapore was awarded to Hoi Hup and SDPL following a successful joint tender submitted by the parties.
“The land will be acquired by a proposed new joint venture company to be incorporated, in which Hoi Hup or its nominee company(ies) and SDPL will have equity interest in the proportion of 65:35,” it noted.
The 99-year lease term Executive Condominium Housing Development project is scheduled to go on for 60 months, commencing Jan 22.
It is expected to contribute positively to the earnings of Sunway Group in the financial year 2023.
German menswear retailer Hugo Boss has seen sales growth accelerate in the fourth quarter of 2018, driven by Asia. Comparable-store sales rose 4 per cent compared to the previous corresponding period and online sales rose 37 per cent, marking the fifth consecutive quarter of double-digit e-commerce sales growth. Group sales also grew 6 per cent in the fourth quarter, adjusted for currency differences, to €783 million – compared to €735 million in the previous corresponding period.
On a comparable-store basis, Asia Pacific was the fastest growing region for the brand, with China achieving high single-digit currency-adjusted store-sales growth for the period.
Europe and the Americas saw comparable-store sales growth in the mid-single-digit and low-single-digit rates respectively, while sales in the business’ wholesale division increased 15 per cent.
The brand issued a preliminary full-year total sales figure of €2.79 billion for 2018 – an increase of 2 per cent compared to 2017 – with the “dynamic growth” of the brand’s retail business seen as the key contributor.
Hugo Boss expects operating income to remain flat at approximately €491 million – the same figure seen in 2017.
“We look back on a successful 2018. We increased our pace of growth and achieved our full-year targets, supported by a very good fourth quarter,” Hugo Boss CEO Mark Langer said.
The brand is to focus on sustainable growth and profitability this year, according to Langer, who notes that the new year will be focused on the execution of the business plan until 2020.
“We will personalise our offerings even more and accelerate important business processes. In doing so, we drive brand desirability and set an important milestone for achieving our mid-term targets,” Langer said.
Although Luckin Coffee, a chain of coffee shops in China, disclosed a loss of 857 million yuan (RMB) last year, they are still positive about the potential for growth in China. Meanwhile, a Canadian coffee brand, Tim Hortons, announced its expansion into the country, planing to open more than 1,500 stores in China in ten years.
Convenience store’s brewed coffee stand out in a crowded market
Coffee brand giants are everywhere, but coffee sales from convenience store never falls behind, occupying the lower level consumer market. According to the FamilyMart Co., Ltd., there are more than 2,000 stores in the country now selling freshly brewed coffee and the annual revenue in 2018 has exceeded 50 million cups. FamilyMart revealed that their goal is to sell 100 million cups of coffee in 2019.
Food plus coffee combo drives sales
Another profitable coffee sales business people usually neglected is the Western-style fast food restaurant. Since KFC, also known as Kentucky Fried Chicken, upgraded the coffee products in 2015, their coffee sales has grown rapidly. In the first three quarters of 2018, KFC sold more than 63 million cups of coffee at an average rate of 2.5 cups per second.
“The growth of coffee market among convenience store and western restaurant reflects the characteristics of current Chinese coffee market, a market with multi-level, multi-channel and multi-consumer profile.” China food industry analyst Zhu Danpeng said that this also proves the Chinese coffee market still have a big room to invest and develop.
The current high profit of the coffee industry leads to competition
Some industry consulting companies predict that the sales of the Chinese coffee shop will grow at a compound annual growth rate of 15% from 2017 to 2025, and will reach more than 100 billion yuan (RMB) by 2025. The number of coffee shops in China is expected to reach more than 80 thousand in the near future.
However, the competition between freshly ground coffee market cannot be avoided. Zhu believes that one of the fundamental reasons for tight competition is that the profit of the this particular beverage industry is extremely high.
Recently, Zhu went to Yunnan for site visit and he communicated with the local farmers. He said that the coffee bean purchase price of the famous coffee brand is about 12-16 yuan/kg, which can be used to brew 10-12 cups of coffee. In other words, the cost of coffee beans is less than 2 yuan (RMB) per cup. “It is obvious that the gross profit of this industry has reached several hundred percent.”
A lot of Hong Kong retailers are talking about technology right now, but before they even started, Pricerite founder and chairman Bankee Kwan was already embracing it. Now home to the first Pepper robot on customer service duty in a Hong Kong store and leading-edge online apps allowing shoppers to virtually place furniture in their home, Pricerite’s technology journey started way back in 1999.
The furniture retailer is part of Celestial Asia Securities Holdings (Cash Group) which was the first Hong Kong company to launch an online brokerage in 1999. Nowadays, trading shares online is an indispensable part of any brokerage business. Five years later, Cash Group was the first to introduce mobile trading for brokerages.
The company began developing a broader New Retail Concept back in 2012 and in 2014 became the first home furnishings retailer to launch an omnichannel business model.
“So we have always had the mindset to embrace technology to help the business become more competitive and to serve the customers better,” Kwan said.
“That’s why during the Sars epidemic (2003), Pricerite was the first company to introduce online shopping so that our customers could purchase necessities and have them delivered to them. That was 13 years ago, and now online shopping has become popular and common place for housewives to purchase goods.
“So I can actually say we go back a little bit regarding our group philosophy on technology. We always treat our customers’ concerns and feelings as our number one priority.
“New retail concepts will become much more popular. That’s why were are moving ahead with Pepper, with Augmented Reality (AR) and Virtual Reality (VR) to create an impact.”
Concept store
Pricerite’s two-story 20,000sqft New Retail Concept Store in Mong Kok’s Chong Hing Square has been trading for about a year now, a testbed for apps and in-store technology that is constantly being revised, enhanced and added to.
Pepper, the smiling robot with the female Cantonese voice, is probably the most visible execution Pricerite’s customer-centric digital transformation journey. To the delight of children it can dance on request and answer customer questions about the company’s loyalty program from its workspace outside the membership counter.
But it is the less visible execution of Pricerite’s digital strategy that is the most breathtaking: an innovative app which allows you to place furniture items in your own apartment virtually – and order direct from your phone or tablet, from in store or home. It is a great solution for Hongkongers facing shrinking apartment footprints, which make planning a layout that suits one’s lifestyle a challenging task.
The made-to-order zone on the Mong Kok concept store’s level B2 is equipped with a large display screen for app users to preview their selected product from all angles. Using VR technology, the system also provides customised furnishing solutions for medium and small-sized apartments. Guests can take a virtual tour of homes to gain an accurate glimpse of products in situ and see a product’s intelligent functions in action – for example, tables that convert to sleeping spaces and furniture with storage space built in. The AR mode uses cutting-edge mobile 3D Space-Tracking technology, including Apple’s iOS ARKit, which cuts out the hassle of product scanning while generating an “actual” 1:1 preview of an item, allowing simple and easy mix-and-matching for different home styles.
“Technology advances have transformed consumer behaviour and shopping patterns while e-commerce has changed the consumption value chain, creating a complementary retail channel to bricks-and-mortar stores,” observes Kwan.
“Using leading-edge retail technologies to combine online and offline shopping experiences, coupled with a modern supply chain, and big data and artificial intelligence innovations, we have created a pioneering all-round omnichannel retail network for home furnishing.”
The concept store also features multiple digital kiosks and touch-screens around the store augmenting the customer service roles of floor staff by suggesting alternative or complementary products, and providing specifications. AR features in several innovations in store, including creating 3D images of items in the company’s catalogue.
Centres of experience
Kwan says the company’s long-term investment in new technologies has been driven by asking how the company can serve its customers better in terms of information and engagement.
“It’s my experience that the physical store remains the centre of experiences and engagement.” Technology, he says, can make purchasing decisions easier.
“Many traditional retailers are still unsure about whether the innovations will take on, whether they should invest in the technology. But it is essential if we are to remain competitive, especially when we look at millennials and how they shop and interact online.”
Kwan believes that despite the slow uptake of online shopping in Hong Kong, online and mobile shopping will be significant in the future. He cites the Hong Kong government’s Smart City initiative to boost wi-fi connectivity and encourage e-payments as a major driver in years to come.
“With all those facilities established and enabled, fast retailing through mobile is the trend. It is gaining momentum in Hong Kong and we have everything quite well developed, but the market will dictate the change and if you do not accept that [as a retailer], you will fade out and become history.
“So I say, wait another three years and you’ll see the landscape of the retail market will change a lot. I was at a retail summit in Hong Kong recently where we had Facebook and Google and online marketers joining. We were all coming to roughly the same conclusion: technology is a must to keep you competitive.”
Kwan can only guess what percentage of Pricerite’s sales are online versus in-store now – and for good reason. So many transactions begin online and end offline – or the other way around – that it is no longer possible to attribute a sale to either channel. Perhaps retailers who do are missing the whole point of omnichannel. If pushed to nominate a figure he’d say 20 per cent online, 80 per cent offline and he expects that ratio to change to 40/60 within a year or two.
Pricerite’s customers do not make a distinction between online or offline, so it stands to reason the company should not do so either.
“This is whole model is an O2O model, so our customer can shop online, understand we have a promotion, understand the product meets their requirements and then they will come down to the store for the physical experience and to touch the products, then maybe go back home and place an order. So you cannot say this is offline or online,” says Kwan.
“But I believe application of technology to enhance the customer’s experience and engagement, is definitely the road to go and to develop together with more applications and technology, just like Pepper so as to reduce the customer service burden on store staff.”
Kwan stresses Pepper and any other technology implemented at Pricerite must integrate with human staff, not replace them, what he describes as “a balanced fusion of technology and people”.
“Pepper I believe will become popular to provide instant information and master data about product features, etc. That will allow our people to migrate into higher added-value areas.” Kwan says customer response to the AR and VR technology to date has been “really good” and it is driving sales of goods after people look at them either online or instore. “It boosts their confidence buying because they have seen on a screen how a sofa will look in one part of a room and a rug in another.
“The technology is constantly improving and getting much easier to use. I understand our competitors also shop at our stores on and off and they are now also developing the same sort of technology. That, together with efforts by the Hong Kong Government to encourage startups working to develop technology for the service and retail sectors will help drive its adoption in years to come.”
Pricerite’s technology quest is ongoing. The apps will continue to be refined and upgraded with more features and made as user-friendly as possible. Other initiatives are under development but not yet ready to be revealed publicly just yet. And more Peppers are on order, with expanded functions – most of them will speak English, too.
View the gallery below for full images (5 images) :
AirAsia Group Bhd and its affiliate AirAsia X Bhd are seeking over RM400 million in counterclaims against Malaysia Airport Holdings Bhd (MAHB) in relation to the suit filed against them over the passenger service charges (PSC) collection. AirAsia and AirAsia X told Bursa Malaysia that they had filed a statement of defence against Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly-owned subsidiary of Malaysia Airport Holdings Bhd (MAHB).
“In the statement of defence, AirAsia Bhd (AAB) contended, amongst others, that the claim by MASSB is misconceived, invalid and/or premature as MASSB has not complied with and/or availed itself of the statutory provisions for dispute resolution within the Malaysian Aviation Commission Act 2015 (Mavcom Act). Accordingly, AAB has filed an application to strike out the suit on the above grounds,“ said AirAsia.
“Further, AAB together with its affiliate AirAsia X Bhd (AAX), will be availing themselves of the statutory provisions for dispute resolution within the Mavcom Act to seek more than RM400 million in counter-claims against MASSB and/or MAHB for losses and damages experienced by AAB and AAX due to operational disruptions at klia2,” it added.
Last month, AirAsia was being sued for refusing to collect the additional RM23 PSC per passenger at klia2.
AAB was served with an unsealed copy of a writ of summons in the sum of RM9.4 million by MASSB pertaining to PSC that AAB has not collected and refuses to collect from traveling passengers. Meanwhile, AAX was served with an unsealed copy of a writ of summons in the sum of RM26.7 million for alleged PSC arrears.
AirAsia yesterday closed up 1.33% to RM3.05 with 5.17 million shares done; while AAX closed 1.72% lower at 28.5 sen with 12.17 million shares traded. MAHB was up 0.25% at RM8.12 with 3.33 million shares changing hands.
Founders of Wisepass, Base.vn and WeFit are educated overseas, drawn back to Vietnam by its startup potential. Lam Tran, 34, is a French overseas Vietnamese with over 10 years’ experience in marketing at Google Europe. He returned to Vietnam and founded Wisepass, a lifestyle app that connects users to a wide range of dining, leisure and entertainment services through paid membership packages.
In 2018, Lam made WisePass available in Thailand and the Phillipines. “I believe to succeed businesses must lead their home market first, before thinking of expanding overseas,” said Lam.
Having set up the business in HCMC and then expanded to Hanoi, Lam regularly flew to the capital city to attend events and promote his products. After selling 10 memberships in a day, Lam was able to show employees the direction and potential of WisePass.
“Global expansion may sound intimidating, but after all, founders must start from the smallest things: talk to customers, selling products,” Lam said. There is no need to wait for big events, he added, “all you need to do is show up and market your product at appropriate places.”
WisePass currently operates in three countries, with 300 partners and over 1,000 monthly active users.
The founder of Base.vn, Pham Kim Hung, is well-known in Vietnamese math circles. He won Gold and Silver medals at the International Mathematical Olympiad and is the author of a math textbook published in four languages. Graduating in computer science from Stanford University, Hung did not stay on to work in Silicon Valley but decided to return to Vietnam.
In 2016, he launched Base.vn, a business management software under the Software-as-a-Service (SaaS) model, where software is leased under a subscription instead of installed. The app is built to unify corporate governance processes, from administration to human resources, task management, financial management to sales marketing.
Base.vn currently serves over 500 enterprises, including many large organisations like VIB, VPBank, ACB, The Coffee House, McDonald’s and VinCommerce.
Base.vn currently has the highest investment in all business-to-business startups in Vietnam.
“After Indonesia, Singapore and Malaysia, we believe that Vietnam can become the next major technology powerhouse in the region,” Chandra Tjan, co-founder and partner of Indonesian fund Alpha JWC Venture said.
In addition to Base.vn and WisePass, in the past few years, the Vietnamese startup community has received many other innovations: WeFit (fitness), Elsa (language learning), Logivan (van hiring), GotIt (gift delivery), and Uiza (video streaming). Most of these entrepreneurial efforts have been successful at carving their own niche in the Vietnamese startup ecosystem.
Experts have said that with over 100 million people, Vietnam has great potential for socio-economic development, and with a rapidly growing middle class combined with quick adaption of digital developments, the ground is fertile for new ventures, especially startups.
Apart from the economic potential, young people returning to Vietnam also have a sense of duty and obligation to their homeland, as also a realization that their efforts here can have greater positive impact on society as a whole, according to experts.
Investment in Vietnamese startups rose to $889 million in 2018, three times that of 2017, according to a report recently released by Topica Founder Institute (TFI), a startup accelerator program in Vietnam and Thailand run by Hanoi-headquartered multinational educational technology company Topica.
Retail shopping continues to be the largest expense for tourists from China, according to a survey from Nielsen and Alipay, accounting for almost a quarter of total spend. The 2018 trends of Chinese mobile payment in outbound tourism survey revealed that retail spending took up 24.6 per cent of Chinese tourists average spend, followed by accommodation, dining and tourist attractions.
Interestingly, the report found that Chinese millennials are no longer the single most dominant user of mobile payments.
“In 2017, 55 per cent of Chinese tourists born between 1960-1979 used mobile payments while travelling overseas – significantly lower than the proportion of millennial tourists,” the report reads.
“In 2018, the usage rate rose to 68 per cent, almost equalling their younger peers.”
Average budget for the typical Chinese tourist increased 15 per cent to AU$9,382 over the year, and a familiarity with mobile payments drove increased spend, with 56 per cent of surveyed merchants claiming improved sales after adopting mobile payment system Alipay.
However, a study by Coresight research in October 2018 found that, while Chinese tourists were travelling more often they were spending around 18 per cent less in the retail environment – a figure driven by a recorded 24 per cent decline in average shopping trip spend.
RAM Ratings, which expects inflation to inch up to 0.3% in December 2018 from 0.2% in the previous month, has revised its full-year headline inflation forecast for 2019 to 2.0% from 2.7%. The rating agency said in a statement that inflation in December 2018 is estimated to rise to 0.3% from 0.2% in the preceding month due to dissipation of deflationary pressures from the transport fuel component.
The price of RON95 petrol fell 3.3% year on year in December, after a 4.5% drop in November.
On that note, overall inflation is envisaged to come in at 1.0% in 2018.
As for 2019, RAM Ratings has revised its headline inflation projection downwards to 2.0%, mainly due to changing expectations on global oil prices, which are increasingly pointing to a lower average range of US$60-US$65 (RM248-RM269) per barrel for 2019.
RAM head of research Kristina Fong said the rating firm’s sensitivity analysis indicates that for every US$5/barrel move in the price of Brent crude, headline inflation potentially changes 0.3 percentage point.
“The move back to the weekly Automated Pricing Mechanism for pump prices – effective January 2019 – is not expected to exert any significant downward pressure on inflation given the short period it will be in place ahead of the anticipated targeted fuel subsidy mechanism to be implemented in second quarter 2019.
“Moreover, global oil prices are expected to trend a little higher compared to the start of the year, An escalation in oil (petrol) prices beyond RM2.20/litre will trigger the use of subsidies to maintain this ceiling. This will also contain inflationary pressure,” she added.
The Department of Statistics released the December inflation data yesterday.
