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Tag: Vietnam

  • Ride-hailing services back on the road in HCMC

    Ride-hailing services back on the road in HCMC

    Ride-hailing firms have resumed their services in HCMC at a significantly lower scale than pre-pandemic times.

    Vietnam-based Be Group, which runs the eponymous ride-hailing app, has reopened its ride-hailing taxi service in Ho Chi Minh City with just 10 percent of its original fleet strength using 50 percent of its capacity.

    The Be Group said its car-hailing service beCar has begun operating in HCMC again on Tuesday, with drivers being given several financial incentives.

    Drivers who are online to receive a pick-up for a total of 48 hours will receive a support package worth VND1 million ($43.91).

    The GrabCar service has been functioning since Oct. 7 with a limited number of drivers as decided by the municipal transport department.

    GrabCar’s four-seaters can only carry one passenger per ride and a seven-seater can only carry two.

    Meanwhile, Gojek’s four-wheel ride-hailing service GoCar is operating on a trial basis since Tuesday. In the first stage of implementation, GoCar will serve customers who have participated in surveys and registered to experience the service.

    The service had been launched on Aug. 19 to provide free transportation for frontline medical workers to participate in epidemic prevention work.

    From Oct. 1, operators of tech-platforms operating vehicles with less than nine seats have been permitted. They can only use 10 percent of their registered number of vehicles.

  • Intel, Samsung to resume full production next month

    Intel, Samsung to resume full production next month

    Units of electronics manufacturing giants Intel and Samsung are set to fully resume operations by the end of November after months of social distancing-triggered production disruption.

    Saigon Hi-Tech Park is helping its tenants, many of which are currently running at about 70 percent capacity, to resume full operations next month, the park’s deputy manager Le Bich Loan said in an interview.

    The park is home to Samsung, Intel, and Nidec Sankyo Corp, a maker of magnetic card readers and micromotors.

    Nidec is also looking to resume full capacity by the end of next month, according to Saigon Giai Phong.

    Many companies operating in Saigon Hi-Tech Park lost about 20 percent of their export orders in July and August, Loan said.

    In the last several months HCMC has been imposing various levels of social distancing, which restricted the operation of factories.

    The city started resuming activities on Oct. 1.

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  • Gold price hits 12-month high

    Gold price hits 12-month high

    Vietnam’s gold price climbed to a 12-month high Monday even as global prices dropped.

    Prices at state-owned Saigon Jewelry Company rose 0.05 percent from Saturday to VND57.98 million ($2,552.79) per tael Monday. A tael equals 37.5 grams or 1.2 ounces.

    Other companies sold their gold 0.17 percent higher at VND58 trillion, a 12-month high.

    Vietnam’s gold price is now VND10 million higher than global rates, widening from VND8 million a month ago.

    Global gold prices were subdued Monday over fears the U.S. Federal Reserve would start paring its stimulus this year despite Friday’s weak job data.

    Spot gold inched 0.1 percent lower to $1,755.68 per ounce.

    Spot gold may bounce into the $1,763-$1,768 range, before resuming its fall towards a support of $1,724, according to Reuters technical analyst Wang Tao.

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  • HCMC restaurants, coffee chains struggle to reopen

    HCMC restaurants, coffee chains struggle to reopen

    Immediately after HCMC lifted its lockdown this month, beverage chain The Coffee House introduced Fresh Bottle, a new glass bottle designed for easy delivery of its best-selling drinks.

    This and other delivery-friendly products such as instant coffee and canned drinks are the solutions the company came up with to “survive and overcome difficulties,” CEO Le Ba Nam Anh said.

    “We have reopened 40 percent of stores in big cities such as Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, Bac Ninh, Hai Phong, but we have yet to reach pre-pandemic capacity due to social distancing in each city.”

    He still has to pay rents, salaries and for ingredients, because everything was ordered two quarters in advance, and the cash flow imbalance is a big challenge, he added.

    HCMC began allowing businesses to reopen on Oct. 1 after four months of lockdowns, but coffee chains and restaurants are still struggling to return to pre-pandemic levels of business due to difficulty in hiring people and people’s reluctance to spend.

    The city has allowed eateries to resume delivery services from Sept. 8 after suspending them for nearly two months.

    Pho 79, a high-end Vietnamese-style restaurant chain, plans to function at 15 percent capacity starting on Oct. 15 as it expects demand to be low.

    “Over 70 percent of our employees have left for their hometowns,” Huynh Huu Thanh Phuong, chairman of the chain, said.

    “We do not have enough ingredients [for cooking], and demand has been falling”.

    Phuong plans to increase to 30-50 percent capacity before year-end, but expects revenues for the whole year to be 70 percent down from last year.

    “We are waiting for authorities to lift more restrictions. We are also concerned about the possibility of another resurgence in Covid-19.”

    Other restaurants are unsure whether it is even the right time to reopen.

    “It’s bad to remain closed, but it’s hard to reopen as the more we sell the more we lose,” Ly Nhat Hieu, owner of three high-end restaurants, said.

    He has been waiting for the city to reopen since closing for five months has cost him nearly VND2 billion ($86,206).

    But a shortage of employees makes it difficult for him to restart now: many have left for their hometowns, some have started their own eateries or work as delivery persons to make a living.

    “It is hard to find people for difficult positions such as head chef and station chefs. It is not easy for people to return to the city.”

    The food and beverage industry has been among the biggest victims of the fourth wave of Covid, which began at the end of April.

    With over 2,000 new cases found every day, the city continues to impose restrictions to prevent another outbreak.

    But with over 70 percent of the adult population vaccinated, the highest rate in the country, industry insiders have reason to expect that the difficulties will soon be over.

    The Coffee House plans to build a new store model specializing in takeout and delivery in Ho Chi Minh City, and plans to replicate this in other localities across the country next year.

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  • Air tickets sell fast after domestic routes reopen

    Air tickets sell fast after domestic routes reopen

    National flag carrier Vietnam Airlines has sold more than 80 percent of seats on domestic flights after ticket sales opened Oct. 10.

    Flights between Hanoi and HCMC, and HCMC and the central localities of Thanh Hoa and Hue, Hanoi and Da Nang, have been the most booked.

    Flights on these routes are almost full on Oct 10-12, according to a Vietnam Airlines representative. One-way tickets on the Hanoi – HCMC and HCMC – Thanh Hoa routes cost VND3.5 million ($154) each; HCMC- Hue and Hanoi – Da Nang, VND2.4 million each.

    “I have tried to book a flight back to Hanoi, but the Vietnam Airlines website informed me seats have already been fully booked till Oct. 13,” Bui Ngoc Quang, a quality assurance officer at the HCMC University of Social Sciences and Humanities said.

    Quang said he wants to fly back to his hometown, a village in Hanoi’s outskirts, as soon as possible, because his wife had recently given birth to a girl baby, their first child, but he has been unable to meet them for weeks. In late August, aviation authorities had instructed airlines to stop selling tickets until further notice as the Covid-19 outbreak raged.

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  • Mercedes-Benz Vietnam recalls 1,700 cars

    Mercedes-Benz Vietnam recalls 1,700 cars

    Mercedes-Benz Vietnam is recalling more than 1,700 C200 cars locally assembled from 2014 -2018 to remove a generator-related software bug.

    The recalled cars were produced between Dec. 2014 to Feb. 2018. Short-circuited diodes in their generator were making coils overheat, leading to fire risks, the carmaker said. The recall will run from Sept. 25, 2021 to Dec. 31, 2025.

    The solution is to update the engine control software to optimize generator operation. The free update would take about 30 minutes at authorized Mercedes-Benz dealers in Vietnam.

    These vehicles were manufactured from Nov. 2016 to Feb. 2017. The solution is to replace the entire steering shaft, a procedure lasting about 1.5 hours.The German carmaker also made two other recalls in Vietnam from Oct. 1-7. These relate to several different models, including 49 A-class cars, CLA, and the imported GLA that have an error in the steering shaft mechanism.

    Mercedes-Benz sold 2,558 units in Vietnam in 2020.

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  • Vietnam footwear exports slip on Covid-19 impacts

    Vietnam footwear exports slip on Covid-19 impacts

    Vietnam’s footwear exports plunged 44.2 percent year-on-year to about $700 million in September, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).

    Meanwhile, handbag exports also decreased by 48 percent.

    However, the industry still recorded positive growth overall thanks to increased momentum in the first half of the year.

    In the first nine months of 2021, footwear exports crossed $13.3 billion, up nearly 10 percent over the same period in 2020, while handbags exports slipped 3.7 percent year-on-year to around $2.24 billion.

    The U.S. remained a major export market for Vietnamese footwear and handbags, accounting for 41 and 44 percent of the total, respectively. EU ranked second at nearly 23 and 22 percent of footwear and handbag exports.

    Lefaso said prolonged social distancing has forced 80 percent of leather and footwear factories in HCMC, Dong Nai, Binh Duong, An Giang, and Kien Giang, accounting for 70 percent of the industry’s import and export turnover, to stop production.

    Businesses in the northern and central regions reduced production by 30-50 percent due to labor shortages, supply chain disruptions and other factors.

    The lack of containers, high cost of logistics and international shipping (5-10 times), expensive fuel and the rising price of imported raw materials have majorly impacted the industry.

    The association also said that conditions for receiving Covid-19 relief were too tough and relevant administrative procedures too complicated, making it difficult for businesses to access the promised support.

    Although the situation has improved since the end of September, production under the “new normal” has a long way to go, it said.

    Lefaso recommended that leather and footwear businesses reduce costs, take advantage of supportive policies and create favorable conditions, in line with safety protocols prescribed by the Ministry of Health to attract workers back to work.

    Businesses also need to make good use of incentives under free trade agreements, especially CPTPP and EVFTA, to boost exports in the last months of 2021, the association said.

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  • The Ritz-Carlton Residences to arrive in Hanoi

    The Ritz-Carlton Residences to arrive in Hanoi

    The first Ritz-Carlton branded residences in Vietnam is set to open in late 2023. Masterise Homes and Marriot International on May 10 announced the signing of an agreement for The Ritz-Carlton Residences, Hanoi, a standalone luxury branded residential project that marks the debut of the Ritz-Carlton brand in Vietnam, slated to open in late 2023.

    The Residences at the Grand, Hanoi will be situated in the heart of the prestigious Hoan Kiem District, along popular Hang Bai Road and near Hoan Kiem Lake, one of the city’s most beloved landmarks. The anticipated 104-unit branded residences will feature one-bedroom Premier, two-bedroom Classic, and three-bedroom Presidential suites, to suit each resident’s needs and preferences.

    The project features award-winning architects, designers, and project management consultants. Once complete, the residences will be the country’s first Ritz-Carlton Residences and the fifth in Asia Pacific following Singapore, Bangkok (Thailand), Colombo (Sri Lanka), and Kuala Lumpur (Malaysia). The agreement leverages the long-term strategic partnership between Masterise Homes and Marriott International, combining the expertise of a pioneer in luxury real estate products and services in Vietnam and the global hotel management company, owner of the Ritz-Carlton brand.

    Jason Turnbull, deputy managing director cum CFO Masters Homes, commented: “The Ritz-Carlton Residences, Hanoi at The Grand is an ultra-luxury development set to offer an enduring legacy for residents and expected to be a masterpiece that matches the beauty of the facade’s classical architecture and modern design combined with the legendary service of The Ritz-Carlton. This project expects to change how we look at ultra-luxury living and elevate Vietnam’s position on the global real-estate map.”

    In line with the long-standing tradition of service excellence synonymous with The Ritz-Carlton brand, homeowners will be able to enjoy world-class amenities complemented by the legendary service from the Ladies and Gentlemen of The Residences. Its prominent location offers the best of the city within close proximity and allows residents to enjoy the vibrancy of Hanoi’s Old Quarter streets, and return to the comfort and privacy of their residences in mere minutes.

    “We are thrilled to continue working with Masterise Homes to amplify our luxury presence in Vietnam with the signing of The Ritz-Carlton Residences in Hanoi – embracing the growing demands for branded living in this burgeoning cosmopolitan city,” said Rajeev Menon, president, Asia Pacific (excluding China), Marriott International.

    “Vietnam is a dynamic market and we look forward to bringing the brand’s refined style and legendary services to residents in Vietnam.”

    The Residences at The Grand, Hanoi is the second Marriott branded residences in Vietnam, following the milestone dual- branded Grand Marina, Saigon announced earlier this year, which operates under two brands within the Marriot Bonvoy portfolio – JW Marriott and Marriott Hotels.

    The Ritz-Carlton Hotel Company, L.L.C., of Chevy Chase, MD., part of Marriott International, Inc., currently operates more than 100 hotels and over 45 residential properties in 30 countries and territories. With 100 years of history, an unshakeable credo and corporate philosophy of un-wavering commitment to service, both in their hotels and in our communities, The Ritz-Carlton has been recognized with numerous awards for being the gold standard of hospitality.

    Masterise Homes, a member of Masterise Group, is a pioneer in bringing world-class excellence to the development, operations, and management of luxury real estate products and services, in the Vietnamese market and beyond. With a one-of-a-kind portfolio comprising the largest Branded Residences in South East Asia, Masterise Homes demonstrates world-class capabilities via a strategic partnership with Marriott International, the largest hotel brand in the world featuring the iconic brands of Marriott, JW Marriott and Ritz-Carlton.

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  • Garment exports hit hard by labor shortage

    Garment exports hit hard by labor shortage

    Garment and textile firms face labor shortages and broken supply chains, and find it hard to fulfill their export orders, the Vietnam Textile & Apparel Association has said.

    The fourth and most intense wave of Covid-19, which caused many textile companies to close down or operate at partial capacity between July and September, remains a severe problem in many cities and provinces, especially in the south, and so migrant workers are making an exodus to their hometowns.

    Some one million workers in the sector, or one third the total number employed, have quit their jobs or are staying away from work with or without pay, VITAS estimated.

    Meanwhile, supply chains continue to be broken as a number of foreign clients shift their orders to other countries.

    Many companies in the south have adopted the stay-at-work and commute-to-work models, but managed to get only 10-30 percent of their employees, meaning they have found it hard to maintain production and ensure timely delivery of goods, VITAS said.

    Garment and textile exports fell 9 percent month-on-month in September to $3 billion. The figure for the year-to-date was $29 billion.

    VITAS has three different export scenarios depending on how the Covid situation pans out: it expects shipments of $33.5-34 billion this year if the pandemic continues until early December, $36-36.5 billion if until November and $37.5-38 billion if it is controlled by October.

    “It is very difficult for the sector to realize the export target of $39 billion set for this year,” Vitas vice chairman Truong Van Cam said.

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  • Vietnam eyes $13.7 billion port upgrade to boost trade

    Vietnam eyes $13.7 billion port upgrade to boost trade

    Vietnam needs VND313 trillion ($13.77 billion) by 2030 to upgrade and optimize its port system to reduce dependency on road transportation and boost trade.

    There will be two special graded terminals: Nam Do Son in the northern city of Hai Phong and Cai Mep in the southern province of Ba Ria-Vung Tau, according to a government plan for the 2021-2030 period with a vision until 2050.

    These terminals will act as international hubs for Vietnamese goods to be transported directly to Europe and the U.S. (the two biggest export markets) so businesses no longer need to send their goods to intermediate hubs in other countries.

    The remaining 34 ports will be divided into three categories: tier 1, 2 and 3, depending on their capacity and location.

    Special graded and tier 1 ports will be connected with smaller ports by newly prioritized railways and roads.

    The smallest ports located deep inland will be removed.

    Deputy Minister of Transport Nguyen Xuan Sang said the new plan will focus on developing a shipping route between localities instead of relying on roads.

    For example, Chinese imports could be shipped to Quang Ninh ports in the north and then to other localities along the coast, instead of being transported via road as in the current case.

    “Our country has a long coastline, why do we need to use roads while we can use sea routes?” he said, adding that on average shipping costs are lower than road delivery.

    The use of ports would also lower logistics costs and reduce pressure on roads, which would increase transport safety.

    The majority, around 95 percent, of funding for this plan will come from private companies and other legal sources, according to the transport ministry.

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  • Vietnam unemployment rate peaks since Covid onset

    Vietnam unemployment rate peaks since Covid onset

    Vietnam’s unemployment rate rose to 3.72 percent in Q3, the highest since early 2020 when the novel coronavirus was first detected in the country.

    The rate was calculated among the working-age population, defined as those aged 15-60 for men and 15-55 for women, according to the General Statistics Office (GSO).

    Vietnam had around 49.2 million workers aged 15 or more in Q3, down 1.9 million against Q2, and down 2.1 million against the same period last year.

    The unemployment rate in the first nine months of this year stood at 2.91 percent.

    The complicated Covid-19 situations significantly affected people’s lives in the first nine months of this year, the GSO said in a report.

    As of September 21, social security relief of nearly VND13.8 trillion ($600 million) was provided to roughly 17.6 million people. This included VND11.4 trillion spent in 23 cities and provinces hardest hit by the pandemic. Over VND5.446 trillion was spent on more than 4.8 million people in HCMC alone.

    More than 136,349 tons of rice from national reserves was distributed among more than 2.4 million households with nearly 9.1 million members.

    By the end of 2020, Vietnam had a population of 97.58 million, with 36.8 percent living in urban areas and the rest in rural areas. The unemployment rate among its working-age population last year was 2.48 percent.

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  • Vietnam private carriers seek zero interest loans

    Vietnam private carriers seek zero interest loans

    The Vietnam Aviation Business Association (VABA) has proposed an interest-free loan package for private airlines, similar to the one accorded national carrier Vietnam Airlines.

    The airlines are bearing high costs while revenue has declined drastically, but they have to maintain equipment and workforce so as to restart when the market recovers, VABA vice president and general secretary Bui Doan Ne, said at a recent meeting to discuss a bailout package for enterprises.

    Ne suggested stronger support from the government, including a preferential loan package with zero percent interest, similar to the one given to Vietnam Airlines.

    This year, the State Bank of Vietnam (SBV) has provided a refinancing loan of VND4 trillion ($173 million) at zero percent interest for one year to support Vietnam Airlines.

    The support for aviation businesses is necessary because this is an industry that has the ability to recover quickly when the economy opens and is also a major contributor to the state budget, Ne said.

    Vietnam Airlines, budget carrier Vietjet Air, the Airports Corporation of Vietnam (ACV), and the Vietnam Air Traffic Management Corporation (VATM) contributed over VND22 trillion in taxes and fees to the state budget in 2019.

    He said aviation development will spur tourism in particular and the economy as a whole. Some estimates say aviation growth of 2.5 percent will stimulate 1 percent of GDP growth.

    Nguyen Tuan Anh, head of the central bank’s Credit Department, said that it was planning a VND3 trillion aid package for enterprises.

    Nguyen Quoc Hung, general secretary of the Vietnam Banks Association, noted that not only airlines but a number of other businesses in the hospitality field were also severely affected by the pandemic and need support.

    “We should not support some industries while ignoring others as it would create inequality,” Hung said.

    The aviation industry has been among the hardest hit by the Covid-19 pandemic. In the first seven months of this year, Vietnamese carriers served 13.7 million passengers, down 32 percent year-on-year, according to the General Statistics Office.

  • iPhone 13 module production to pick up in October

    iPhone 13 module production to pick up in October

    The delay in iPhone 13 parts manufacturing in Vietnam is set to improve in mid-October as one key facility could resume production after months of Covid-19 disruption.

    The facility in southern Vietnam, a key iPhone camera module manufacturing facility in the country, has gradually resumed production in recent days, an executive familiar with the situation said.

    The delay in making the new sensor-shift optical image stabilization module is causing buyers of iPhone 13 to face longer delivery times, it said.

    “There’s nothing we can do but to monitor the situation in Vietnam every day and wait for them to ramp up the output,” one of the executives with direct knowledge told the news outlet.

    The module is used on all four new iPhone 13 models. Previously, it was only in the premium iPhone 12 Pro Max.

    Vietnam has suffered severe Covid-19 impacts in the fourth wave, resulting in strict restrictions being imposed on factories and transportation in many localities, especially in HCMC and neighboring Binh Duong Province.

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  • Italian brand Frette opens doors in Singapore

    Italian brand Frette opens doors in Singapore

    Italian home accessories and lifestyle brand, Frette, has expanded its footprint in Singapore with its first boutique in Marina Bay Sands.

    The store also marks the brand’s first mono-brand boutique in the territory. Designed by Milan-based architecture studio Archibrando, the new Frette store features elements used in the brand’s global flagship boutique on Milan’s Via Manzoni and custom furnishings crafted from natural Afara wood, “encapsulating the luxurious ambience and timeless elegance and essence of the brand”.

    Frette Singapore occupies a 65sqm area of the shopping centre, offering crafted linens and decorative home accessories, ranging from embroidery bedding, bath towels, to men’s and women’s loungewear. The Marina Bay Sands boutique also offers custom embroidery and personalisation, bedroom styling as well as installation.

    The 160-year-old brand is known for its “chic, original designs and inimitable finish and feel”. Frette operates nine retail locations in the US and 25 in Asia. The brand has flagship stores in China, South Korea, Taiwan, Vietnam and Cambodia.

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  • Airlines want minimum fares, no one else does

    Airlines want minimum fares, no one else does

    While economists fear having lower limits for airfares will distort competition, some airlines worry safety is at stake. If fares do not make up even the fuel costs of a flight, aviation safety would be affected, Dang Ngoc Hoa, chairman of Vietnam Airlines, said at a meeting held on Monday to get feedback from economists on proposed minimum fares.

    The Civil Aviation Administration of Vietnam (CAAV) has proposed minimum fares of VND320,000-VND750,000 ($14.06 – $32.95) for domestic flights between November 1 and October 31 next year to help airlines overcome the difficulties caused by the Covid-19 pandemic.

    Too low prices would weaken all airlines, Hoa said. Many countries like China and India have floor prices for air tickets, he pointed out.

    He said amid the pandemic fares are very low at just 40 percent of those in 2018-19, and 250 airplanes are parked in airports, some of which are running out of parking space.

    But despite the low fares, airlines have to keep operating to maintain parking space, minimum cash flows and planes, he said.

    During the first Covid outbreak in March 2020, there were three flights a day in total, while during the fourth wave starting in April 2021, especially July-August, “there were no flights”, he said.

    All carriers have been hit and most airlines are facing losses, he said.

    Vietnam Airlines made a loss of VND7 trillion ($301.7 million) in the first half of the year, while private airlines reported losses of a trillion dong, he added.

    But despite his impassioned argument, economists at the meeting said minimum fares are not acceptable.

    Can Van Luc, chief economist of BIDV, said floor prices could cause confusion and be unfair to both state-owned and private enterprises, and even violate the Law on Prices and the Law on Enterprises.

    Nguyen Sy Dung, former deputy head of the Office of the National Assembly, said: “it is unfair to impose a floor price on air tickets”.

    If minimum fares are applied, a three-star airline must sell at the same price as a five-star airline, and no customer would spend money to travel in the former, he pointed out.

    “We might kill an airline through price policy. It’s unacceptable”.

    In a recent communication to the Ministry of Transport, three airlines agreed to apply floor prices airfares while two others disagreed.

    The Department of Transport admitted that since costs and services are not comparable, it would be difficult to determine common minimum fares applicable to all airlines.

    In the first seven months of this year Vietnamese carriers carried 13.7 million passengers, down 57.7 percent from the same period in 2019.

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