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Tag: Vietnam

  • Vietnam’s credit growth doubles

    Vietnam’s credit growth doubles

    Bank credit growth from January 1 to June 15 was 5.1 percent, double the rate recorded in the same period last year.

    The jump came despite the fourth wave of Covid-19 because the State Bank of Vietnam made monetary policy more flexible and directed banks to focus on funding manufacturing and reduce lending to sectors with high risks, its deputy governor, Dao Minh Tu, said Monday.

    Average loan interests in April fell by 0.3 percentage points from December, he added.

    The central bank has also directed banks to delay debt payment or lower or scrap interests on customers affected by the Covid-19 pandemic to help their business recovery.

    Nearly 676,700 customers have seen the interests of their debts removed or reduced with a total outstanding loan of nearly VND1,278 trillion.

    The bank will continue to pursue a flexible monetary policy until the end of the year keep inflation under control and support an economic recovery.

    The pandemic has boosted demand for online payment. In the first four months, internet payment value surged 31 percent year-on-year.

  • Amazon, Alibaba race to recruit Vietnamese merchants

    Amazon, Alibaba race to recruit Vietnamese merchants

    Global giants Amazon and Alibaba are racing to recruit more Vietnamese vendors on their platforms seeking to boost their share of a booming e-commerce market.

    Amazon saw the number of Vietnamese merchants exporting at least $1 million worth of goods from Vietnam triple last year. The surge was driven by demand for tools, kitchenware, handicrafts, home goods, and apparel.

    “Vietnamese sellers have enriched our global product selection,” Gijae Seong, head of Amazon Global Selling in Vietnam, told Nikkei Asia.

    Amazon Global Selling is a business set up to recruit more Vietnamese merchants on Amazon, seeking to boot e-commerce trade between Vietnam and its largest export market the U.S.

    The company opened a Hanoi office in March to train new sellers, adding to its Ho Chi Minh City branch.

    Seong said companies “have competitive advantages in manufacturing” in Vietnam, where a wave of factories have relocated from China to sidestep the trade war with the U.S. and to reduce other costs and risks.

    China’s Alibaba has also been making moves to have more Vietnamese sellers.

    In March, a company representative said that it planned to have over 10,000 Vietnamese small and medium-sized enterprises selling on its platform by 2025.

    It has been working with government authorities since last year to run training programs for Vietnamese vendors.

    As of March, over 300 companies have been provided consultancy in online cross-border sales.

    The competition between the two giants is heating up as e-commerce booms in Vietnam with rising demand for online shopping amid the Covid-19 pandemic.

    It’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the Covid-19 pandemic, according to the Vietnam e-Commerce and Digital Economy Agency.

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  • Bamboo Airways to trial digital health pass

    Bamboo Airways to trial digital health pass

    Bamboo Airways officially entered into cooperation with the International Air Transport Association (IATA) to trial the IATA Travel Pass, laying a solid foundation for the airline’s reopening of international routes.

    In coordination with IATA, Bamboo Airways will begin preparations to trial the IATA Travel Pass on international flights in the coming months. With this move, Bamboo Airways demonstrates its commitment to relaunching international routes, opening borders safely as well as reviving the battered tourism industry.

    IATA Travel Pass is a digital health wallet where passengers can upload and share their Covid-19 tests and vaccination certificates for travel. Health information is an essential factor for both governments and carriers to conduct safe flights during and after the pandemic.

    The IATA Travel Pass is considered a safer and more effective solution compared to current paper-based procedures, especially when it comes to a multitude of test and vaccination data that needs securing.

    The app has been developed with the highest levels of data privacy and security, so passengers always remain in control of their Covid-19 health information. Besides, governments can be confident that passengers who are OK to Travel are in full compliance of Covid-19 travel requirements, said Nick Careen, IATA senior vice president for Airports, Passenger, Cargo and Security.To create the digital health wallet, passengers download the IATA Travel Pass app, and register a digital identity using their passports. Once passengers have been tested and/or vaccinated, labs will securely send data to the individual’s app. It then verifies this information and checks that passengers meet the travel requirements for their destination. If they do, they will receive an “OK to Travel.” Passengers can also choose to share this with airlines and authorities.

    By ensuring passengers meet Covid-19 health requirements for their destination, Travel Pass will facilitate more seamless transportation, playing a crucial role in the reopening of international routes in the near future.

    As of June, more than 60 airlines in the world have announced the pilot of IATA Travel Pass, including Singapore Airlines, Qatar Airlines, Air New Zealand, Air Serbia, Emirates, Etihad, Ethiopian Airlines, Iberia, Korean Air, Malaysia Airlines, Qantas, et

    As a member of IATA, Bamboo Airways is closely collaborating with the body, authorities and related units to pilot the Travel Pass app in line with government regulations on “digital health passports” or “vaccine passports”. With this trial, Bamboo Airways aims to establish an area to check the compliance of passengers at the airport and provide the government with valid information to ensure safe flights and repel the pandemic.

    Bamboo Airways is promoting the digital transformation process and effectively fulfilling the market demand and practical requirements of a “new normal” phase.

    “Alongside the valuable partnership with IATA, it’s our conviction that Bamboo Airways will substantially contribute to the revival and sustainable development of aviation in the future,” said Dang Tat Thang, CEO of Bamboo Airways.

    Thang believes the tech solution would be the cornerstone of international routes reopening, especially Bamboo Airways’ non-stop flights connecting Vietnam and the U.S.

    Bamboo Airways has successfully conducted many repatriation charter flights from South Korea, Japan, Taiwan, Australia, the Philippines, Poland, Norway, etc. The airline is also completing procedures to launch non-stop flights to many countries in Asia-Pacific, including Australia, exploit the European market, and gather pace in the operation of non-stop flights connecting Vietnam and the U.S. as soon as the government allows. Complying with the Civil Aviation Authority of Vietnam on the three-phase plan for restarting international routes, Bamboo Airways has prepared a corresponding scheme and suitable strategy based on close observation of the market and pandemic.

    At the same time, Bamboo Airways is implementing Covid-19 vaccinations for all employees and related affiliates.

    Bamboo Airways strictly complies with disease prevention measures as guided by the National Steering Committee for the Prevention of Covid-19, the Ministry of Health, the Steering Committee of the Ministry of Transport, and the Civil Aviation Authority of Vietnam, including temperature screenings at the airport, providing hand sanitizers and masks at check-in areas, departure gates and on planes, spraying disinfectant after flights, regularly maintaining HEPA filters on aircraft, etc.

    As of now, Bamboo Airways’ Covid-19 prevention process is considered the most comprehensive and effective, achieving an absolute level of 7/7 by Airlines Ratings.

    Bamboo Airways currently operates over 60 domestic and international routes, transporting 7.5 million passengers on safe flights. The airline has also maintained the highest on-time flight rate in Vietnam’s aviation market in three years up to 2021.

    The airline’s international 5-star standard-oriented service has been recognized by domestic and international passengers and media with a customer satisfaction rate of 4.5/5. Bamboo Airways was honored as Vietnam’s Best Airline, Asia’s Leading Regional Airline, and the favorite airline voted for by golfers.

  • Laos to supply Vietnam power from Mitsubishi-built wind farm

    Laos to supply Vietnam power from Mitsubishi-built wind farm

    Japan’s Mitsubishi Corporation will develop Southeast Asia’s largest wind farm in Laos to supply electricity to Vietnam, where demand is expected to grow continuously.

    The 600-megawatt onshore project, the first wind farm in Laos, will be located in the southern provinces of Sekong and Attapeu, the company said in a statement.

    By installing a dedicated transmission line to Vietnam, power from the wind farm, which is set to begin commercial operations by 2023, will be sold to national utility Vietnam Electricity for 25 years.

    It is expected that Vietnam’s growing economy will have high demand for power, especially during the dry season, when hydropower generation is limited.

    The onshore wind farm is being developed as part of a memorandum of understanding on power interchange signed between the Vietnamese and Lao governments in October 2016.

    It is expected to be the first cross-border electricity interchange from wind power generation in Southeast Asia.

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  • Vietnam gets set to tax e-commerce revenue

    Vietnam gets set to tax e-commerce revenue

    Vietnam plans to tax 1.5 percent of annual e-commerce revenues of VND100 million ($4,297) and higher as part of leveling the field between traditional and online retail merchants.

    A decree with new regulations is set to take effect on August 1, but authorities have said they might give e-commerce platforms more time to prepare for the taxation regime.

    E-commerce platforms will need to provide authorities with monthly reports on their merchants, revenues, bank accounts, and types of goods.

    Tax officials had said earlier that the current taxation regime is unfair to traditional sellers who have to pay other overheads, while online sellers have been escaping several taxes.

    Taxing sellers through e-commerce platforms would also help prevent the sales of contraband and fake goods, the officials said.

    Vietnam’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the pandemic, according to the Vietnam e-Commerce and Digital Economy Agency.

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  • Vietnamese rice faces competition from India in Philippines

    Vietnamese rice faces competition from India in Philippines

    The Philippines is set to import a lot of rice from India at $100 cheaper per ton than Vietnamese rice as it diversifies its supply sources.

    A report by the Agricultural Products Processing and Development Department (Agrotrade) shows that in the first five months of this year, Vietnamese rice exports reached 2.7 million tons at $1.48 billion, down 11.3 percent in volume and 5 percent in value over the same period last year.

    There’s no significant demand by foreign traders as they wait for the summer-autumn harvest season, the report said.

    On the other hand, the price of Vietnamese rice is much higher than that of India and Thailand. A ton of Vietnamese rice is $20 higher than that of Thai rice and over $100 per ton over Indian rice.

    On average, Vietnam’s rice export price in the first four months of this year reached $543 per ton, up 15.4 percent year-on-year. The Philippines is Vietnam’s largest rice-consuming market, accounting for 35.6 percent, but export to this market decreased 20.7 percent in volume and 4.9 percent in value over the same period last year. Similarly, rice exports to Indonesia also decreased sharply by 71.1 percent year on year.

    According to Agrotrade, market demand in the coming time will be high, but Vietnamese rice will face competition in the international market when the prices of Thai and Indian rice are more attractive to buyers.

    Recently, the Philippines eliminated import duties for ASEAN, non-ASEAN, and “Most Favored Nation” (MFN) nations with the goal of increasing imports of cheaper rice from India and Pakistan.

    Specifically, the Philippines has lowered import duties for MFN on rice to a single rate of 35 percent. It had previously imposed a 40 percent in-quota tariff rate and 50 percent out-of-quota tariff rate.

    On June 7, Philippines Finance Minister Carlos Dominguez announced that the country would seek more rice from countries outside Southeast Asia with the goal of diversifying supplies and keeping import prices at a reasonable price. Accordingly, India is a country with cheaper rice that can become a main supplier.

    Vietnam has been the main rice supplier to the Philippines so far. In addition, the Philippines also buys rice from Thailand and India, apart from other countries outside Southeast Asia.

    Vietnam is set to produce 43 million tons of paddy and export 6.5 million tons of rice this year, according to the Ministry of Agriculture and Rural Development.

    The nation was the world’s second-largest rice exporter last year at 6.25 million tons.

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  • Airlines carry freight, charter flights to survive Covid hit

    Airlines carry freight, charter flights to survive Covid hit

    Airlines have strengthened freight services and offer charter services and discounts on passenger fares as they seek to recover from the slump caused by Covid-19.

    Vietnam Airlines recently converted one of its Boeing 787-9 aircraft to transport 40 tonnes of lychee from Hanoi to Ho Chi Minh City.

    Before the pandemic its Dreamliners had a busy schedule, flying to Europe, Australia and the ultra-busy Hanoi-HCMC sector, and few thought lychees will replace passengers on the modern airplane with a capacity up to 270.

    The carrier has also deployed other planes to transport lychee.

    Budget airline Vietjet has also been offering freight services to compete with leading logistic providers as demand balloons by the day. It has set up an online freight service, Swift247, in which it owns a 67 percent stake.

    In the first three months of 2021, Vietjet transported over 18,000 tonnes of cargo, with its cargo subsidiary contributing nearly 50 percent of total revenues.

    Since May, Bamboo Airways has been offer charter flights.

    To compete in the summer, the high season for air travel, carriers have offered big discounts on fares and promotions like free check-in baggage to attract customers back.

    Bamboo Airways reduced fares by 35 percent when booking five seats or more.

    Vietjet offered free insurance to all domestic passengers, including VND1 million compensation per day for loss of income in case of forced quarantine or Covid-19 infection as a result of traveling with it.

    Newcomer Vietravel Airlines, which has a fleet of three airplanes, is pricing tickets at below breakeven level, according to Nguyen Quoc Ky, its chairman.

    Vietnam Airlines and Vietjet have joined the effort to trial a vaccine passport.

    Next month, Vietnam Airlines will implement the International Air Transport Association’s Travel Pass initiative that allows people to store verified Covid-19 test and vaccination certificates on a smartphone app.

    This is seen as one of the keys to convincing countries to reopen borders to international travelers.

    According to Planespotters, an online database on commercial aviation based in Berlin, Germany, over half of all aircraft in Vietnam are idling in near-empty airports.

    Vietnam Airlines is currently operating only 47 of its over 100 planes, including 15 of its 29 wide-body airplanes (A350 and B787).

    In the case of Vietjet Air, over 50 out of its 74 airplanes are not flying.

    In the first quarter, Vietnam Airlines suffered losses of nearly VND5 trillion ($218,4 million). To generate sufficient cash flows, it is now selling 11 of its A321 CEO planes.

    Bamboo Airways has the least number of idle aircraft, nine out of 27.

  • Vietnam Airlines cleared for 12 repatriation flights from US

    Vietnam Airlines cleared for 12 repatriation flights from US

    National flag carrier Vietnam Airlines has received permission from U.S. authorities to conduct 12 repatriation flights this year, the first of which is scheduled for this month.

    The first flight will leave Hanoi on June 22 for Washington D.C. with a stop in Alaska before returning to Vietnam on June 24.

    The airline will use its biggest wide-body aircraft – the Boeing 787 or the Airbus A350 for these flights.

    It remains the only Vietnamese carrier to receive flight permits from the U.S. Transportation Security Administration (TSA), which is said to have stringent requirements. The examination process for the 12 flights took one month.

    Vietnam Airlines expects the flights to help evaluate the possibility of conducting regular flights between the two countries after the Covid-19 pandemic has been contained.

    Last year, it conducted 20 flights between Vietnam and the U.S. to serve Vietnamese citizens and U.S. experts, and to transport goods.

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  • HCMC stock exchange to test South Korean system

    HCMC stock exchange to test South Korean system

    Vietnam’s overloaded main bourse, the Ho Chi Minh Stock Exchange, next week will begin testing a new system from South Korea which it plans to use later this year.

    The system would have the capability to handle “many times more” transactions than now, Le Hai Tra, CEO of the exchange, said.

    A temporary system from FPT, which has been tested in recent months to deal with the overload, would serve as a backup, he added.

    HoSE signed a deal for the system in 2012 with the Korea Exchange at a cost of VND600 billion ($26.16 million).

    But since last year South Korean experts could not come to Vietnam due to the Covid-19 pandemic, and so installation was delayed.

    A record number of new investors in recent times has placed an extreme strain on HoSE’s outdated system.

    The bourse increased the trading lot from 10 shares to 100 and instructed brokerages to stop order changes and cancelations to reduce the number of transactions.

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  • Taxes on securities up 320 pct

    Taxes on securities up 320 pct

    Capital gains taxes on securities surged 320 percent year-on-year in the first five months as new investors flocked to the stock market.

    They were one of the major contributors to personal income tax collection in the first five months, which rose by nearly 13 percent, Cao Anh Tuan, head of the General Department of Taxation, said.

    Vietnam imposes a flat 0.1 percent capital tax on every stock sale.

    Other contributors were real estate (up 183 percent) and personal investment (up 169 percent), Tuan added.

    In May, an average of 3,600 individual stock trading accounts was opened each day, the highest ever. The number of accounts now has risen 11-fold since January 2020 to 3.2 million, or one each for 3.26 percent of the population.

    In the first five months of this year, 480,000 accounts were opened.

    In the period, the benchmark VN-Index gained over 20 percent, the highest in Asia.

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  • Apple supplier Pegatron to expand Vietnam operations

    Apple supplier Pegatron to expand Vietnam operations

    Pegatron Corp, an assembler for Apple, Microsoft and Sony, plans to increase its investment in Vietnam for electronics production by $101 million.

    Taiwan’s Ministry of Economic Affairs, which has to approve overseas investments by local companies, as saying Pegatron’s investment in Vietnam would be for the production of computers and peripherals, communications equipment and electronic components.

    The company has not disclosed details of the investment.

    It invested $19 million to build its first plant at the Dinh Vu Industrial Zone in Hai Phong City in March last year to produce computers, communications equipment and consumer electronic products.

    It plans to build its second and third plants at a cost of $481 million and $500 million and also move its research and development center from China to Vietnam.

  • New cargo airline to advance Vietnam logistics

    New cargo airline to advance Vietnam logistics

    A fully-fledged cargo airline in Vietnam would boost logistics development and stir up competition in the aviation sector amid an e-commerce boom, experts say.

    “Vietnam needs a cargo airline to boost the transport of goods domestically and internationally. It will bring about many economic benefits,” said aviation expert Nguyen Thien Thong.

    He was commenting on a proposal by retail company Imex Pan Pacific Group (IPPG) to establish a cargo airline by next year, the first fully-fledged such company in Vietnam.

    With an initial investment of VND2.4 trillion ($103.6 million), IPP Air Cargo will start with five freighters. It estimates revenues of $71 million in the first year of operation.

    It would be the only cargo-dedicated airline in Vietnam, where all six carriers prioritize passenger transport.

    Vietnam ranks eighth among the top 10 emerging logistics markets globally, but 80 percent of the market is in the hands of foreign companies, according to the Vietnam Logistics Association.

    Logistics costs in Vietnam account for over 20 percent of its GDP, while the global average is 11 percent.

    This shows that there is a need for domestic companies to step up and take over the industry from foreign companies and reduce costs, experts say.

    Former Prime Minister Nguyen Xuan Phuc had in September last year ordered the Ministry of Transport to research the possibility of establishing a cargo airline to help distribute agriculture and electronic goods.

    In 2008, Trai Thien Air Cargo had received a permit for domestic and international transport, but it was not active for three years and the permit was canceled in 2011.

    IPP Air Cargo seeks to be the cargo airline the country needs. IPPG chairman Johnathan Hanh Nguyen said that the company will focus exclusively on cargo and not branch into passenger transport, avoiding competition with other airlines.

    Nguyen, a professional with experience in logistics and aviation, said he targets claiming 38 percent of Vietnam’s logistics market.

    The company will negotiate with foreign airlines to establish linked routes to 16 airports in Vietnam which will help transport goods directly from localities of origin instead of through big airports, he said.

    He also told the Thanh Nien newspaper that he had been developing a logistics network over the past year to prepare for the airline.

    However, his airline will not be the only cargo carrier in the sky. Vietnam Airlines has long been eyeing the establishment of its own cargo fleet, and during the pandemic, it removed seats from 12 wide-bodied aircraft and converted them into cargo carriers.

    Both Bamboo Airways and Vietjet have also mentioned plans to develop their own cargo fleet, but neither has made any concrete move towards this.

    Tong said that there could be competition in the industry, but eventually, it will benefit the development of e-commerce when a network of air cargo transport is established.

    “Coffee from the central highlands, lychee from the northern province of Bac Giang and seafood from the Mekong Delta region can be transported within a day to any locality if cargo air routes existed,” he said.

    Having a cargo airline is a necessity as most countries have at least one, and the recent boom in e-commerce means there is high demand for such transportation. This is the right time, therefore, for Vietnam to establish its own cargo airline, he added.

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  • Vingroup sets up drug company

    Vingroup sets up drug company

    Vietnam’s largest private company, Vingroup, has established pharmaceutical company Vinbiocare with a charter capital of VND200 billion ($8.6 million).

    Its focus will be on medicine, vaccines.

    Vingroup owns 69 percent of Vinbiocare Biotechnology JSC, its formal name, which is headquartered in Hanoi, while Phan Quoc Viet, CEO of tech firm Viet A Technology Corporation, owns 30 percent. The remaining 1 percent is held by an individual investor, Phan Thu Huong.

    Mai Phuong Noi, deputy CEO of Vingroup, is its chairwoman.

    Vingroup entered the pharmaceutical industry in 2018 by establishing Vinfa JSC and setting up a plant in Gia Binh District in the northern Bac Ninh Province.

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  • Ride-hailing platform Emddi raises $2 mln

    Ride-hailing platform Emddi raises $2 mln

    Vietnamese ride-hailing platform Emddi has raised $2 million at online fundraising event Virtual Investment Day hosted by venture capitalist ThinkZone Ventures.

    The fund will be used to invest in human resources and expand its market share, Emddi spokesperson said.

    The company had completed last year its Series A funding round, led by ThinkZone Venture. The amount of investment raised was undisclosed.

    It also reached a cooperation agreement with ride-hailing firm Be Group and Vietnam Taxi Alliance in April as part of efforts to increase its market share.

    Emddi is a ride-hailing application developed in 2016 by scientists of Vietnam National University’s Centre for Information Technology. It provides a ride-hailing platform for transporting companies, allowing them to set their own prices and types of services. The platform receives ride requests from both ride-hailing orders on the application and phone calls to the transporting firms’ switchboard.

    It allows customers to access the services of various transporting firms with one application.

    Emddi currently operates in over 40 cities and provinces in Vietnam and Laos with 30,000 drivers. It provides car-hailing services and two additional services in Hanoi – ride-hailing service to airports and round-trip transport between Hanoi and other provinces.

    The application allows cashless payment through e-wallets like VNPay, MoMo, Viettel Pay and Mobile Banking.

    It plans to expand to motorbike-hailing service once its car-hailing has developed its market position, said its representative Le Van Nam. It is currently focusing on car-hailing since it does not have enough resources, he added.

    Emddi expects Vietnam’s ride-hailing industry to grow by 16 percent to $4 billion in the next five years.

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  • Hanoi metro tickets to cost $0.35-0.65

    Hanoi metro tickets to cost $0.35-0.65

    Fares on Hanoi’s first metro will range from VND8,000-15,000 ($0.35-0.65).

    City authorities have also decided that a day pass on the Cat Linh – Ha Dong metro line for unlimited trips will cost VND30,000.

    A monthly pass will cost VND200,000 and half that for students and workers at industrial parks.

    For businesses buying the monthly pass for its employees, the rate will be VND140,000.

    Travel will be free for seniors, children under six, people with disabilities, and people designated by the government as poor.

    Fares are subsidized to boost the use of public transport, city authorities said.

    People using non-cash payment methods will get a discount of VND500 per trip.

    Travel will be free for the first 15 days after the metro begins operation, though the start date has not been announced yet.

    The full trip from Cat Linh to the south-western district of Ha Dong through 12 stations will take 25 minutes.

    A train can carry 960 passengers.

    Trains will run from 5 a.m. to 11 p.m every day.

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