Retail News CRM

Tag: Vietnam

  • Vietnam goes past Thailand, becomes Israel’s biggest tuna supplier

    Vietnam goes past Thailand, becomes Israel’s biggest tuna supplier

    Vietnam surpassed Thailand in the first half of this year to become the biggest exporter of tuna to Israel.

    It accounted for 31 percent of Israel’s imports while that country became Vietnam’s third largest market behind the U.S. and Italy.

    Israel bought less tuna from most countries amid the Covid-19 pandemic, but increased its imports from Vietnam, the Vietnam Association of Seafood Exporters and Producers (VASEP) said.

    Latest data from VASEP shows that Vietnam’s exports to Israel jumped by 34 percent during the year until Aug. 15 to nearly $25 million.

    Eight companies ship tuna fish to Israel, but have all complained about Covid-related restrictions hurting their production in recent months.

    VASEP has repeatedly been petitioning the government to quickly vaccinate workers in the fisheries sector to ensure the supply chain is not disrupted.

    Lees ook:

  • Covid causes first monthly loss for garment giant Thanh Cong

    Covid causes first monthly loss for garment giant Thanh Cong

    Major garment company Thanh Cong has reported its first monthly loss this year in August as housing workers at its plants as a precaution against Covid-19 spread increased costs.

    The company, formally known as Thanh Cong Textile Garment Investment, also saw revenues plummet by 26 percent year-on-year to $10 million, and, together with the ballooning expenses, this caused a loss of $282,000 for the month.

    The company said production fell due to a shortage of workers amid the tightened social distancing requirements in HCMC despite having many of them stay on-site.

    Its monthly net profit has not dipped below $600,000 this year. Its year-to-date profit is $5.48 million, only 44 percent of the full-year target.

    Thanh Cong’s biggest export markets are the U.S., South Korea, Japan, and China.

    It is looking for new buyers in Europe and countries that have signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

    It is also pushing head with e-commerce sales after tying up with U.S. e-commerce giant Amazon last year.

    Lees ook:

  • HSBC lowers Vietnam’s growth forecast

    HSBC lowers Vietnam’s growth forecast

    Lender HSBC has lowered its growth forecast for Vietnam from 7.1 percent to 5.1 percent given the ongoing fourth Covid-19 wave that has disrupted key economic activities.

    “The impact of the Delta variant as it spread across the country and in particular the economic heartland of Vietnam in the south meant a swift re-introduction of lockdowns and travel restrictions,” said CEO of HSBC Vietnam Tim Evans in a recent note.

    He forecast GDP growth would be in the range of 5-5.5 percent, depending on the speed and effectiveness of the vaccination rollout, re-opening of the economy and recovery and resumption of major export markets.

    But growth could only reach 3.5-4 percent if the vaccination programme is not fast enough and lockdown and social distancing continue to be lengthened, he said.

    This will cause more adverse impacts on the economy amid increased pressure on supply chains, he added.

    Vietnam in recent months has seen unprecedented disruption to its supply chain, which has caused declining industrial production while key global brands struggled to keep manufacturing going.

    In August, mobility in the country fell 60 percent on average from pre-pandemic levels, which resulted in a 40 percent year-on-year drop in retail sales, HSBC data shows.

    But there are positive signals that indicate an imminent recovery. Ho Chi Minh City, the Covid-19 epicenter, has given the first Covid-19 vaccination dose to nearly 90 percent of its population and is set to have the majority of residents fully vaccinated by the end of this month.

    The State Bank of Vietnam (SBV) has increased credit growth for some commercial banks from 10-12 percent to 14-15 percent this year, which would allow banks to lend more.

    Vietnam remains a highly attractive investment destination in the medium term, given the recent reports of investment from Samsung and LG Display, Evans said.

    “Strong foreign currency reserves coupled with a stable currency, inflation being under-control, continued strong FDI inflows with an emphasis on the manufacturing sector all position Vietnam will for the future.”

    HSBC forecasts next year’s GDP growth at 6.8 percent. It was 2.9 percent last year.

    Several other organizations including the World Bank and Asian Development Bank have lowered their growth forecast for Vietnam because of Covid-19.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Covid restrictions put the brakes on car sales

    Covid restrictions put the brakes on car sales

    The Vietnam Automobile Manufacturers Association said its members sold only 7,714 vehicles in August, the lowest number in seven years.

    Their sales were down 68 percent year-on-year for the month and 47 percent from July.

    The Vietnam Automobile Manufacturers Association said its members sold only 7,714 vehicles in August, the lowest number in seven years.Their sales were down 68 percent year-on-year for the month and 47 percent from July.

    It marked the fifth consecutive month of decline for the industry, which attributed the slump to social distancing amid Covid-19 in many provinces and cities, especially Hanoi and Ho Chi Minh City.

    The country’s largest automaker and non-member TC Motor, which assembles Huyndaicars, saw sales plummet by 60 percent year-on-year in August to 2,182.

    VAMA members have sold 157,777 vehicles so far this year, up 8 percent from 2020.

    Car sales increased sharply in the second half of 2020 after a 50 percent cut was made to registration fees, which are substantial at 10-12 percent of the vehicle price. There have been no rate cuts this year.

    TC Motor’s sales for the year were down 2 percent to 40,248 units, the first time ever its sales have declined.

    Lees ook:

  • Government fund subscribes to Vietnam Airlines right issue

    Government fund subscribes to Vietnam Airlines right issue

    Vietnam’s sovereign fund has subscribed to Vietnam Airlines’s rights offering amid its accumulating losses due to Covid-19.

    The State Capital Investment Corporation (SCIC) paid VND6.89 trillion ($303.56 million) to acquire 689.5 million shares and kept its ownership rate in the state-owned carrier at 31.08 percent.

    The airline’s HVN ticker rose by the maximum allowed 7 percent Monday, its sixth consecutive day of gain.

    HVN’s issued VND8 trillion worth of stocks to existing shareholders to increase its capital.

    Japan’s ANA Holdings, the operator of All Nippon Airways which owns an 8.77 percent stake in Vietnam Airlines, sold its rights to buy 70 million shares to Vietnam Airlines employees since it is itself facing financial difficulties.

    The carrier estimates its losses for the first half of 2021 at around VND10.79 trillion.

  • Experts warn of risks to premature economic reopening

    Experts warn of risks to premature economic reopening

    Reopening the economy is necessary but any untimely decision amid low vaccination rates and high contagion risks could stymie the country’s efforts to defeat Covid-19, experts warn.

    “The premature lifting of the lockdown and reopening the economy while the full vaccination rate remains low, new infections and fatality rates are still soaring and the health system is overburdened may even endanger the economy and people’s lives more badly,” Nguyen Minh Cuong, principal country economist at the Asian Development Bank said.

    But the country stands at a crossroads since lengthening strict social distancing is likely to inflict further socio-economic costs and endanger its medium- and long-term growth prospects, he told VnExpress International in an emailed statement.

    Prime Minister Pham Minh Chinh and Ho Chi Minh City leaders have spoken about letting economic activities resume gradually and how the lockdown “cannot go on forever.”

    Vietnam has been struggling in its Covid-19 fight since the end of April when a fourth wave began and infected nearly 609,000 people and killed over 15,000.

    HCMC, the largest city and major manufacturing and exporting hub, has imposed strict social distancing for over two months but still thousands of new cases are being found every day.

    This is why analysts are reluctant about resuming economic activities now.

    “It is complicated to find the perfect moment to reopen the economy,” Tim Evans, CEO of HSBC Vietnam, said.

    The risks of doing this too early at a time when vaccination is not up to optimum speed and the medical system is overwhelmed could lead to additional Covid cases resulting in a further increase in mortality rates, he said.

    Other experts concurred.

    “In our view, reopening the economy, especially in the epicenter HCMC, is a risky move,” Jason Yek, senior Asia country risk analyst at market research company Fitch Solutions, said.

    The rate of full vaccination in Vietnam is low, and reopening before the outbreak has been suppressed would possibly elicit a lukewarm response from consumers, he said.

    Vietnam has vaccinated 24 percent of its population, but only 5.2 percent have received two doses.

    The country has received 29.8 million doses of vaccine, or only one-fifth of its target of 150 million doses to vaccinate 70 percent of the population.

    This is why a premature opening risks a surge in infections which would overwhelm the healthcare system and could force the government to tighten restrictions again, Yek said.

    Lees ook:

  • Vinamilk ramps up R&D to win big globally

    Vinamilk ramps up R&D to win big globally

    The Vietnam Dairy Products JSC is stepping up R&D to create innovative products enriched with local flavors to satisfy the diverse range of global tastes.

    With its strategic investment in product development, international expansion, and commitment to sustainability, Vinamilk has become the only Vietnamese dairy company in the top 50 global dairy producers. This year it is ranked 36th.

    Vinamilk’s R&D efforts have developed customized products tailored to the Asian, African, and Middle Eastern markets despite the challenges of limited research data in some of these regions.

    Starting with only one infant cereal SKU, the company has since successfully developed and established 66 SKUs in multiple markets. One of Vinamilk’s successful innovative products is the Ridielac infant cereal with banana and date flavors.

    Launched in the Middle East five years ago, this infant cereal with a distinctive local flavor has been well received, and it underpinned the subsequent penetration into North Africa.

    The dairy giant has also fortified its African products with vitamin A and minerals to help tackle the challenge of vitamin A deficiency. This problem threatens 42.4 percent of sub-Saharan African children with an increased risk of mortality.

    In the Middle East, which accounts for 80 percent of Vinamilk’s export revenues, the company’s localized Ridielac is a favorite among locals, especially for the variety in flavors that enables people to switch their babies’ daily diet regularly.

    In Asia, Vinamilk has introduced sweetened condensed coconut milk in Japan to address the demand for plant-based milk amid local consumers’ dairy allergies.

    “Our long-term relationship with Vinamilk was built upon accurate and flexible export services and high-quality products meeting all Japanese standards,” Jun Hamada, Vinamilk’s Japanese partner, said.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Vietnam coffee exports to UK drops

    Vietnam coffee exports to UK drops

    Vietnam’s coffee exports to the U.K. have declined in H1 after its products failed to meet quality requirements and consumer preferences. The fourth wave of Covid-19 that hit the country also affected export activities.

    Coffee exports to Britain fell by 48.4 percent in volume terms and 49.3 percent in value to 16,400 tons and $29 million. Vietnam’s share of that coffee market decreased from 27.32 percent to 16.35 percent.

    The U.K.’s coffee imports from most of its suppliers increased during the period, except from Vietnam and Honduras. Vietnam’s exports to the country are in the form of raw or semi-processed coffee, while the British mainly consume instant coffee.

    Experts said the Vietnamese coffee industry should strive to meet its increasingly stringent requirements and British consumers’ tastes to boost exports.

    Vietnam is the second-biggest coffee producer globally behind Brazil. Last year, its exports fell marginally and were worth $2.74 billion.

    Lees ook:

    Lees ook:

    Lees ook:

  • LG, Samsung are hiring again in Vietnam

    LG, Samsung are hiring again in Vietnam

    Two Korean technology giants are seeking to hire thousands of people in Vietnam, including workers, engineers and IT staff. In September, Samsung announced it is looking to hire 1,000 production staff for its Bac Ninh factory. A month earlier it said it wanted to recruit 3,000 workers for its Thai Nguyen plant.

    The company plans to expand operations at the former to increase production of flagship phones Z Fold and Z Flip to 25 million units a year.

    It is also looking to recruit thousands of employees to work in R&D. It is building a $220-million R&D center in Hanoi with 2,200 – 3,000 researchers and other staff, and plans to open it in 2022.

    LG’s factory in Hai Phong is also hiring new laborers, including IT and R&D engineers.

    It is offering VND9,5-13 million for a technician’s position. The LG Display factory in Hai Phong also announced that it is in need of 5,000 more production workers.

    Due to Covid-19, the recruitment is only in Hai Phong and candidates from elsewhere cannot apply this time, an HR official said.

    LG has three large factories in Hai Phong, mainly producing phones, TVs, air conditioners, vacuum cleaners, washing machines, and refrigerators.

    Samsung has six production facilities in Ho Chi Minh City, Hanoi and Bac Ninh and Thai Nguyen provinces that make handheld devices and home electronics, and employ more than 160,000 workers.

    Lees ook:

  • Alibaba-backed fund invests in retail chain Homefarm

    Alibaba-backed fund invests in retail chain Homefarm

    An Alibaba-backed fund has invested an undisclosed amount in Vietnamese retail chain Homefarm.

    The investment by eWTP Technology and Innovation Fund is a “seven-digit figure,” the company’s CEO Tran Van Truong said.

    Homefarm, which has around 150 stores that sell meat, fish and groceries imported from several countries including the U.S., Australia and South Korea, plans to have 1,000 by 2025, he said.

    The funding was through ReDefine Capital Fund, a Singapore-registered investment entity controlled by eWTP.

    The $600-million eWTP Technology and Innovation Fund was set up in 2018 with Chinese billionaire Jack Ma’s Alibaba and Ant Group as cornerstone investors.

    It reportedly invested recently in Vietnamese retail company Ficus Asia Investment and ed-tech firm Educa Corporation.

    Lees ook:

    Lees ook:

  • Be Group appoints new CEO

    Be Group appoints new CEO

    Vu Hoang Yen has been appointed the new CEO of Be Group, which runs the eponymous ride-hailing app, starting Wednesday.

    She replaces Nguyen Hoang Phuong who has resigned citing personal reasons.

    A graduate of the London School of Economics, Yen has previous work experience in e-commerce, finance, banking, and digital conversion. She was one of Forbes Vietnam’s top 10 professional women managers in 2019.

    The group’s targets for the fourth quarter of 2021 and the next year include introducing optimal operational solutions for technology-based transport; and developing digital ecosystems including finance, banking, insurance, flight, and hotel bookings.

    The group says the Be app has been downloaded to 10 million mobile devices and the ride-hailing service currently has 300,000 drivers who work in nearly 30 cities and provinces.

    Lees ook:

  • E-commerce platforms cater to large groceries demand in Vietnam

    E-commerce platforms cater to large groceries demand in Vietnam

    Leading e-commerce platforms in Vietnam saw bigger demand for groceries, including fresh foodstuffs and beverages, in the second quarter of this year, a market research firm says.

    Google searches for keywords relating to online grocery stores in the second quarter of this year surged 223 percent against the first quarter, Malaysia-based market research firm iPrice Group said. Searches for fresh foodstuff, drinks, pre-packaged items, and fruits and vegetables rose 99 percent, 51 percent, 30 percent and 11 percent, respectively.

    According to a second-quarter e-commerce report by, online grocery has been the only goods segment with continuous growth since the pandemic broke out.

    When HCMC started applying social distancing rules in early July, demand for buying groceries online increased sharply. E-commerce platform Lazada Vietnam sold 120,000 fresh milk cartons in the first three hours of July 7, and 10,000 poultry eggs in the first 12 hours of the day.

    According to iPrice researchers, the surge in searches for online grocery stores and supermarkets is linked to the social distancing regulations imposed by municipal and provincial authorities. Retail sales of essential goods will also go online rapidly, they said.

    The higher demand for groceries prompted e-commerce platform Tiki to open fresh groceries stalls (September 2) that would deliver the products within three hours in Hanoi.

    To lure more customers, online shopping platforms have held shoppertainment (shopping in combination with entertainment) activities since early July. Lazada and Shopee have launched online mini-game contests and music shows, and conducted more livestream sales in combination with recreational activities.

    Lazada’s livestream channel reported that its daily views in the second quarter of this year rose 2.5 times over the same period last year. Shopee said the number of Shopee Live users in the first half of this year surged over 200 percent on-year.

    Online payment and shopping platform MoMo attracted eight million players in one month after organizing a game contest with prizes totaling VND10 billion (nearly $435,000). “We will continue to organize similar programs,” said co-founder and vice chairman Nguyen Ba Diep.

    According to rankings complied by iPrice Group and Israel-based digital intelligence provider SimilarWeb, Lazada Vietnam saw its website visits in the second quarter of this year increase 14 percent against the first quarter to 20.4 million, ranking second after Shopee. Shopee ranked the first for the 12 quarters, with 73 million web visits in the second quarter, up 9.2 million visits against the previous one.

    Among e-commerce platforms in Vietnam, Lazada and Shopee have been the most active in terms of shoppertainment events in recent months. They are expected to host more such programs on September 9, the super shopping day.

    The visits to top 50 shopping websites in Vietnam in the first half of this year totaled over 1.3 billion, the highest number so far. Specifically, web visits in the second quarter rose 10 percent over the first.

  • General director of VietinBank appointed new chairman

    General director of VietinBank appointed new chairman

    Vietnam Bank for Industry and Trade (VietinBank) has elected General Director Tran Minh Binh as the bank’s new chairman for the 2019-2024 term.

    The appointment came Tuesday, two months after the bank’s former chairman, Le Duc Tho, was appointed secretary of Ben Tre Provincial Party Committee from July.

    Tran Minh Binh, 47, holds a Master’s degree in Business Administration from National Economics University – Belgium’s ULB University.

    Binh has more than 22 years of experience working at VietinBank, including 17 years as a professional manager at the head office and branches and eight years as a senior manager.

    On the same day, the bank also assigned Nguyen Hoang Dung, its deputy general director, as general director in charge of the executive board, replacing Tran Minh Binh.

    VietinBank, the third-largest lender by total assets in Vietnam, made a consolidated net profit of VND10.81 trillion ($473.69 million) in the second quarter of 2021, up 44.52 percent compared to the same figure in 2020, according to the bank’s financial report.

    Lees ook:

    Lees ook:

  • German companies in Vietnam look to diversify supply chain due to Covid

    German companies in Vietnam look to diversify supply chain due to Covid

    Ninety percent of German companies in Vietnam are seeking new or additional suppliers in Asia Pacific due to mobility restrictions in the country.

    The majority of respondents, 83 percent, reported supply bottlenecks and price increases caused by transport problems, according to a survey by the Association of German Chambers of Industry and Commerce (DIHK).

    What has led to the current transport problems is a lack of freight capacity and containers.

    Other issues that caused supply bottlenecks are increased demand or insufficient production capacity (67 percent) and halted supplier production (58 percent).

    The impacts of supply bottlenecks on German companies are longer waiting times, higher purchase prices, and production halts or downsizing, according to 58 percent of respondents.

    Half of the respondents have no choice but to either increase or plan to increase the manufacturing prices of their products.

    Two-thirds of German companies are also considering relocating their production to the E.U.

    The Vietnam survey is part of the global inquiry by DIHK, which polled 3,000 business leaders from Jul. 22 to Aug. 9.

  • Vietnam’s biggest auto expo canceled again

    Vietnam’s biggest auto expo canceled again

    The Vietnam Motor Show, the biggest automobile expo in the country, has been canceled for the second year running over Covid-19 impacts.

    This year’s show was originally scheduled to be held next month.

    Members of the Vietnam Automobile Manufacturers’ Association (VAMA) and the Vehicles Importers Vietnam Association (VIVA) said in a joint statement the VMS 2021 has been canceled as was VMS 2020.

    Earlier, the VMS 2021 organization board had planned to postpone the expo to the last week of November or the second week of December, but found that such plans were not feasible. The board is expected to make an official announcement about the cancellation soon.

    The VMS 2019 in HCMC drew the participation of 15 firms that displayed over 100 new cars. Many firms in the supporting industry also participated in the event that drew over 200,000 visitors.

    Vietnam’s car sales rose 27 percent year-on-year to over 166,500 units in the first seven months, thanks to a surge in the first quarter.

    Lees ook: