Tag: Vietnam

  • Bamboo Airways to launch US transit flights

    Bamboo Airways to launch US transit flights

    Private budget carrier Bamboo Airways plans to open flight routes to the U.S. with transit in Taiwan or Japan starting Q3.

    The airline has proposed to the U.S. Department of Transportation that is allowed to operate regular connecting flights – four to seven a week – carrying passengers and goods between Hanoi and HCMC to Los Angeles and San Francisco. The flights will have one transit point at Taiwan’s Taipei, or Japan’s Osaka or Nagoya.

    The flights would use the Boeing 787-9 Dreamliner aircraft.

    The proposal marks a change in plans because the carrier had been hitherto mentioning plans to launch direct flights between Vietnam and the U.S. It had acquired last month slots to operate regular direct flights from HCMC to San Francisco and Los Angeles starting September 1.

    The carrier is rushing to complete the final steps in the process of building its personnel apparatus, including pilot and flight crew training, for the direct flights, it had said.

    Bamboo Airways chairman Trinh Van Quyet had said the airline is considering an initial public offering of shares in the U.S. this year to raise $200 million.

    The IPO offering a 5-7 percent stake in the company is also expected to launch in Q3.

    It plans to expand its fleet from 30 aircraft to 40 this year and launch flights to other new destinations like Australia, Germany, Japan, and the U.K. if the Covid-19 pandemic is brought under control.

    It currently flies 60 domestic routes.

    Last year, it carried over seven million passengers to account for a 20 percent market share, and hopes to increase it to 30 percent this year.

    The carrier’s pre-tax profit last year rose by 30 percent year-on-year to VND390 billion ($17 million). Its total assets value at the end of 2020 was nearly VND13.4 trillion.

  • Vietnam stock market posts world’s highest gains

    Vietnam stock market posts world’s highest gains

    Vietnam’s benchmark VN-Index has surged 34.51 percent in the first half of this year, marking the highest increase in the world.

    Abu Dhabi was second with its stock market rising 33.06 percent, followed by Austria with 32.65 percent, according to China-based stock database StockQ.

    With an increase in five consecutive sessions in the past week, VN-Index reached 1,374.05 points last Friday, up 4.06 percent from a week earlier. Vietnam ranked third among the most active markets in the past week after Argentina and Hungary, according to the Chinese stock database.

    Abundant cash flow, constantly increasing number of new investors, and immediate measures to reduce congestion has propelled the stock market.

    The number of new investors entering the stock market in May scaled a new monthly record, with over 113,000 new trading accounts opened.

    The VN-Index’s continuous growth has broken most forecasts made by domestic securities companies.

    Citing geopolitical risks and complicated developments of the Covid-19 pandemic, the Viet Dragon Securities Company (VDSC) had forecast that the VN-Index could reach a high of 1,272 points, equivalent to a year-on-year increase of about 15 percent.

    Other securities firms like Ho Chi Minh Securities Corporation (HSC), Vietcombank Securities (VCBS) and Viet Capital Securities (VCSC) made similar forecasts of the index reaching 1,250-1,280 points.

    The index has surged rapidly, pushing the price-earnings (P/E) ratio to 18.8. While this figure is still much lower than other Southeast Asian countries, including the Philippines, Indonesia and Thailand, it shows Vietnam’s stock market is coming of age.

    In a newly released strategy report, VNDirect Securities said: “The market is no longer undervalued but also not too high, meaning that businesses need more time to improve their results and pull the valuation ground to a more attractive level.”

  • Industry ministry seeks Covid vaccination priority for retail workers

    Industry ministry seeks Covid vaccination priority for retail workers

    The Ministry of Industry and Trade wants employees at retailers selling essential goods to be prioritized for Covid-19 vaccination, saying they face a high risk of infection.

    It has made the proposal to the Government following demands from large retail chains and the Association of Vietnam Retailers.

    It said workers at supermarkets, convenience stores, traditional markets, and grocery stores come in contact with large numbers of customers on a daily basis. Vaccinating them would also ensure supply chains of essential goods are not disrupted.

    It also urged the Ministry of Health to assist retail businesses with sourcing vaccines and immunizing their workers.

    Some retailers have said they will pay for the vaccines.

    Enterprises in some other sectors like textile and garment, footwear, fisheries, and electronics have also called for prioritizing their workers since most work in industrial zones and face great risk.

    Le Tien Truong, chairman of the Vietnam National Textile and Garment Group (Vinatex), said delayed deliveries could result in contract cancellations and penalties running into billions of dollars, and so textile and garment workers should be prioritized for vaccination, especially in pandemic-hit areas like Bac Ninh and Bac Giang Provinces, HCMC and Hanoi.

    “Vinatex is willing to pay for the vaccines.” He said it is prepared to spend VND100-200 billion ($4.3-8.6 million) for the vaccinations.

    The Private Economic Development Research Board has recommended that the government should allow enterprises to directly buy vaccines from suppliers for their employees.

    Vietnam has had 5,008 Covid cases as of Friday morning in 37 cities and provinces since the new wave began on April 27.

  • Higher shipping fees hurt smaller firms

    Higher shipping fees hurt smaller firms

    Vietnamese exporters are struggling to send goods abroad despite high demand because of a nearly five-fold year-on-year surge in container shipping costs.

    Shipping costs from Asia to Europe rose above $10,000 per container for the first time on record last week, a 485 percent increase year-on-year, according to the Drewry World Container Index.

    Ho Van Hiet, CEO of Prime Logistics Vietnam, said that while foreign direct investment giants with established contracts are mostly unaffected by the price increase, small and medium Vietnamese exporters were fighting to secure container slots for their shipments.

    “Exporters who used to send 10 containers per shipment are having to cut it to a few as most ships are filled up,” he said.

    Nguyen Dinh Tung, CEO of fruit exporter Vina T&T, said that that rising transportation costs has become a global issue and it has pushing smaller companies out of the market.

    A shortage of containers also means longer transportation time and this affects the export of some products like fruits.

    Mangoes from Vietnam, for instance, can be preserved for 35 days. Before, it took 25 days to deliver the product to Western buyers, but now it takes 30-35 days, Tung told local media, adding that many buyers have stopped importing because there is not enough time to sell the products.

    Industry insiders say that container transportation charges have risen as demand rises in the Europe and the U.S., with their economies beginning to recover from Covid-19 impacts. Companies are beginning to restock and make more purchases.

    Nguyen Thi Anh, the spokeswoman for a HCMC-based logistics company, said that as container costs rise so do related fees like storing and moving them out of ports.

    Since last year, many exporters have been struggling to negotiate logistics costs with buyers; some have either left the market or accepted losses in order to retain customers, she told local media.

    Some small exporters of garment products, furniture and seafood have stopped exporting altogether after not being able to negotiate a contract with buyers, she added.

    Hiet said he sees another increase in shipping rates in June, sending prices of shipping a 40-foot container from Vietnam to Europe to around $11,000, up 10 percent from now.

    The rates could go even higher as demand typically peaks in August and September, he added.

    The only solution for Vietnamese exporters is to book their delivery soon so to ensure they have secure container slots on ship, he said.

  • Bamboo Airways on 5-star roadmap

    Bamboo Airways on 5-star roadmap

    Dubbed the most intriguing airline startup in 2020 by Forbes, Bamboo Airways is now among three leading carriers in Vietnam, proving an ideal option for a 5-star oriented flight experience.

    Inspired by its founder’s dream of exploring the sky at the age of 19, Bamboo Airways was established as the torchbearer leading Vietnamese airline service to the next level. Hence, the international 5-star rating has become Bamboo Airways’ ultimate goal since its earliest days.

    Bamboo Airways adheres to its target of quickly updating service quality and getting 5-star certification by 2023. Therefore, the airline has entered into official cooperation with Yates and Partners, the world’s premier aviation and hospitality consultancy with the most experience in 5-star service consultation and guest experience design. Bamboo Airways has taken drastic actions in achieving its initial goal, even during this period of turmoil for both domestic and international aviation.

    Only 10 airlines have achieved the international 5-star rating in the world, accounting for roughly 4 percent. That number demonstrates the level of difficulty in reaching the 5-star rating as encountered by every airline, even in countries with the most developed aviation industry.

    Each carrier will identify and promote one or several decisive strengths. Qatar Airways takes the top spot in the “World’s Best Business Class” category. Singapore Airlines leads in the “World’s Best Cabin Crew” and the “World’s Best First Class.” Meanwhile, Hainan Airlines is rated the “World’s Best Business Class Amenities” airline.

    Bamboo Airways has identified two of its initial goals on the 5-star roadmap, which are “the airline with the best customer service” and “airline with best business lounges.”

    “5-star human” resources

    In the roadmap towards an international 5-star rating, numerous strict flight attendant requirements are mapped out regarding standard TOEIC score, appearance, BMI (Body Mass Index), female attendant number, etc.

    Bamboo Airways has selected and provided standardized training courses for its very first cabin crew, passing numerous criteria like communication skills, English proficiency, customer service, first aid…

    Flight attendants must reach a height above 1.7 meters (for males), and above 1.6 meters (for females) with an arm reach of at least 2.12 meters. The airline also focuses on criteria for appearance, customer interaction, problem-solving skills, taking women’s tenderness as the basic standard for customer service on each flight.

    “Bamboo Airways always prioritizes the sense of hospitality and responsibility when selecting its ‘sky ambassadors’. As Bamboo Airways aims to provide “more than just a flight” experience, its flight attendants need to provoke passengers’ feelings of trust, being secured and cared for through words, actions and professional problem-solving skills,” said Le Dang Khoa, captain of Bamboo Airways’ cabin crew.

    A hand on the heart with a broad smile has become the symbol of Bamboo Airways at every customer touchpoint, from ticket offices, waiting rooms to boarding gates.

    First Vietnamese private airline to operate business lounges

    In addition, Bamboo Airways has put its business lounge system into operation. In 2020, Bamboo Airways became the first Vietnamese private airline to launch a business lounge at Noi Bai International Airport and Con Dao Airport.

    The business lounge is a crucial customer touchpoint at airports for not only carriers but also business enterprises. Now, more and more leading banks in Vietnam aim to operate business lounges at airports to provide customer services for VIP guests.

    Acknowledging the importance of this customer touchpoint, Bamboo Airways has standardized its 5-star oriented business lounge service at airports. It offers first-class amenities and services, from restaurant-quality dishes, smoking and working areas to stunning runaway views.

    Despite the demanding period for the aviation industry, Bamboo Airways has constantly developed and expanded its lounge system at numerous domestic airports such as in Quy Nhon, Phu Quoc, etc. to provide consistent 5-star oriented services to customers.

    Even in the process of fleet expansion, the customer experience factor remains Bamboo Airways’ priority when choosing aircraft, apart from other factors that control the exploitation of resources.

    For instance, Bamboo Airways is a pioneer in utilizing Embraer jets in Vietnam. Built by the world’s third-largest manufacturer of civil aircraft, Embraer 190 and 195 not only attribute to Bamboo Airways’ monopoly on routes connecting Con Dao but also turns the airline into the first and only carrier to provide business class services to Con Dao.

    Bamboo Airways has made substantial investments in fleet expansion and pilot training courses to achieve excellent service quality. In 2019, Bamboo Airways welcomed the first Boeing 787-9 Dreamliner to its fleet, becoming the first Vietnamese private carrier to operate wide-body aircraft.

    Besides modern narrow-body aircraft like the A320NEO and A321NEO, Bamboo Airways expanded its fleet to 30 aircraft with the constantly upcoming Boeing 787-9 Dreamliners, aiming to increase capacity and service quality.

    Highly evaluated core value and service mindset

    According to aviation experts, passenger expectations regarding an airline service derives from the carrier’s prestige.

    In cooperation with Bamboo Airways, the chairman of Yates and Partners highly evaluated the airline’s core value and service mindset, which are important factors for any carrier in the path towards the international 5-star rating.

    Consultants of Yates and Partners will accompany Bamboo Airways on a long-term roadmap, supporting the airline in setting international 5-star service standards at all customer touchpoints, including standards for business and economy class services, F&B strategies, catering services on each flight, personnel training for staff and cabin crew on domestic and international flights.

  • Vietnamese restaurant chain Roll’d launches FMCG range through Coles

    Vietnamese restaurant chain Roll’d launches FMCG range through Coles

    Vietnamese restaurant chain Roll’d, has rolled out a range of pantry staples at Coles, allowing customers to recreate restaurant favoritesnoo at home.

    Starting this month, shoppers can now purchase the same ingredients and condiments used at the restaurant, including a range of four sauces – Sticky Hoisin, Spicy Hoisin, Nước Mắm, and Chili Mayo (at RRP $6) – rice papers ($4), vermicelli noodles ($3.50) and rolling trays ($10).

    According to Roll’d, the products are simple to use, free of preservatives, additives or gluten and suitable for vegetarians and vegans.

    In addition, customers can scan the QR code at the back of any Roll’d product to access tutorials and recipe ideas designed to suit different skill levels.

    “Teaching Australians to roll their very own Roll’d Vietnamese Soldiers through this new Coles grocery partnership is a natural extension for us beyond the traditional QSR arena,” said Bao Hoang, Founder and CEO, Roll’d.

    “We’re excited to be sharing our authentic Vietnamese eats and recipes to the wider community, going into homes, lunchboxes and onto dinner tables with fresh, family eats options that are healthy and guilt-free.”

  • Vietnam Airlines to sell 11 aircraft

    Vietnam Airlines to sell 11 aircraft

    National flag carrier Vietnam Airlines has said it will auction 11 Airbus A321 CEO aircraft manufactured in 2004, 2007 and 2008.

    The sale, which is set to take place this year, is part of its program to replace old-generation aircrafts that have been used for over 12 years. It also aims to increase its cash flow at a time of trouble for the pandemic-hit aviation sector.

    The carrier had sold nine aircraft last year and five in 2019. It had a fleet of 107 aircraft at the end of last year, including 51 Airbus A321 CEO aircraft.

    The carrier posted its largest quarterly loss ever in Q1 at VND4.97 trillion ($216 million), pushing its accumulated loss to VND14.22 trillion, marginally surpassing its charter capital.

    If its performance continues in the same vein, the airline’s HVN ticker on the Ho Chi Minh Stock Exchange (HoSE) might be delisted. It has already received a warning from the bourse on April 15.

  • Online groceries shopping booms as HCMC practices social distancing

    Online groceries shopping booms as HCMC practices social distancing

    Many HCMC residents have turned to online shopping for essential goods following a two-week social distancing order across the city, and e-commerce platforms are reporting a boom.

    Data from e-commerce platform Tiki shows sales grow by 30 percent last weekend, just before social distancing was implemented in Ho Chi Minh City on Monday, with a rise in the number of searches for fast-moving consumer goods, fresh food, mom and baby products.

    E-commerce platform Lazada’s sales of fast-moving consumer goods in the past few days were three times higher than during social distancing period in April last year. Sales of fresh food and frozen products have increased tenfold.

    Tran Tuan Anh, CEO of e-commerce platform Shopee, confirmed that there has been high demand for essential goods, especially fast-moving consumer goods, healthcare products and house appliances.

    A Tiki representative who did not want to be named said that they have been working with suppliers to increase the supply of essential goods, fresh food as well as tech products that serve work and entertainment at home by up to 50 percent, while supply of hand sanitizers will increase 25 times.

    Shopee said it has been selling essential goods at reasonable prices and providing free shipping for customers. It is also implementing free advertising programs for its sellers.

    Lazada has affirmed it will continue expanding goods supply, besides implementing discount programs, no-contact delivery and boosting cashless payments.

    Latest data from Malaysia-based market research firm iPrice shows consumers have grown accustomed to buying essential goods online, with the groceries segment the only one to see a 13 percent year-on-year increase in the number of web visits in Q1.

    Meanwhile, web visits related to non-essential goods like mobile phones and electronics appliances dropped 9 percent and 6 percent, respectively.

    Covid-19 has served as a catalyst for e-commerce, boosting online shopping demand for essential goods, iPrice stated.

  • Vietnam stops live pig imports from Thailand

    Vietnam stops live pig imports from Thailand

    Vietnam has decided to stop importing live pigs from Thailand starting June 30 after 980 of them were found infected with African swine fever.

    The Ministry of Agriculture and Rural Development took the decision to stop imports to try and prevent the disease from being transmitted to domestic herds.

    Enterprises with signed contracts for pigs to be transported to Vietnam before June 30 can still implement them. The ministry has asked the Department of Animal Health to place imported pigs under strict quarantine.

    The department had detected the disease among 980 pigs during the quarantine process on May 19. The pigs were imported by livestock firm Senat Limited Liability Company and worth VND6.2 billion ($269,500). The infected pigs were destroyed May 21.

    Vietnam allowed the import of live pigs for the first time starting mid-June 2020 to contain rising pork prices as a result of the African swine fever.

    The country imported over 503,000 live pigs from Thailand last year, according to the Ministry of Agriculture and Rural Development.

  • Vietnam Airlines signs up for international vaccine passport program

    Vietnam Airlines signs up for international vaccine passport program

    Vietnam Airlines has signed an agreement with the International Air Transport Association to trial a vaccine passport next month.

    It will implement the IATA Travel Pass initiative that allows people to store verified Covid-19-test and vaccination certificates on a smartphone app.

    They must be issued by authorized facilities registered with IATA.

    Le Hong Ha, CEO of Vietnam Airlines, said: “The most important goal of the initiative is to revive people’s faith in air transport and ensure safe and smooth travel.”

    Nick Careen, an IATA board member, said it is a solution for facilitating international travel during the pandemic.

    Three countries have signed up for the use of the IATA Travel Pass, Singapore, Panama and Estonia, and 30 airlines.

  • Vietnam might lose entry to global rice contest

    Vietnam might lose entry to global rice contest

    Vietnam might lose its right to enter the World’s Best Rice Contest because of the large number of unauthorized companies selling the ST25 variety on the market.

    U.S.-based The Rice Trader, organizer of the annual contest that started in 2009, said only the ST25 rice variants produced by the company of Ho Quang Tri, the son of the main developer of the rice, Ho Quang Cua, is allowed to use the “World’s Best Rice” title in promoting this product.

    However, many Vietnamese companies have been printing this title on their product packages without permission from The Rice Trader, which is a copyright infringement, it said in a statement.

    Should these actions persist, the organization will release the names of the infringers and take away Vietnam’s rights to participate in the contest in upcoming years, it warned.

    The ST25 variety from Vietnam won the World’s Best Rice Contest in 2019 and secured second place last year, losing first place to a jasmine fragrance variety from Thailand.

    The ST25 variety is the result of 25 years of work by Cua and his colleagues who cross-bred the premium fragrant rice, described as having a sweet taste and a hint of pineapple flavor, in the Mekong Delta province of Soc Trang.

    Other countries that have won the contest in previous years include Thailand, the U.S., and Cambodia.

  • Vietnamese consume more meat, beer despite falling incomes

    Vietnamese consume more meat, beer despite falling incomes

    Although incomes have fallen because of the pandemic, a survey has found living standard improvements with Vietnamese people consuming less rice but more beer and meat.

    The GSO estimates per capita monthly income fell 2 percent from the previous year to VND4.2 million ($182), because of the Covid-19 pandemic, according to the 2020 living standards survey conducted among 47,000 households nationwide by the General Statistic Office (GSO).

    The survey found that per capita monthly rice consumption declined from 9.7 kilograms in 2010 to 7.6 kilograms last year.

    On the other hand, per capita meat consumption rose from 1.8 kilograms per month in 2010 to 2.3 kilograms last year. Per capita beer and alcohol consumption reached 1.3 liters per month last year from 0.9 liters in 2018.

    The GSO reported that there were significant wealth discrepancies between urban and rural areas. The per capita monthly income in urban areas last year was VND5.5 million, 1.6 times higher than that in rural areas.

    A HCMC-based economist said that farmers should reduce rice farming and shift to produce with higher returns in order to increase per capita income in rural areas.

  • Vietnam exports 20 tons of lychees to Japan

    Vietnam exports 20 tons of lychees to Japan

    Twenty tons of lychees from the first batch of the 2021 season harvested in the northern province of Bac Giang have been shipped to Japan.

    This is the second year that the fruit has been exported to far east economic giant from Bac Giang, the premier lychee growing province in the country.

    The lychees were grown in the province’s Tan Yen District and shipped by the Global Export and Import Foodstuff JSC and Chanh Thu Export and Import Fruit Company.

    The two companies said that they would export more Bac Giang lychees to Japan by air and sea this year.

    Tan Yen District cultivates lychees on 1,300 hectares and expects to harvest 14,000 tons of the fruit this year. Its early harvest season will last until mid-June.

    Nguyen Viet Toan, chairman of the district People’s Committee, said they have quarantined everyone who’s come into contact with Covid-19 patients, set up checkpoints on roads leading to lychee cultivation areas, and are checking the health of every visitor to ensure the orchards are unaffected by the pandemic.

    Under regulations set by Japan’s Ministry of Agriculture, Forestry and Fisheries, Japanese experts have to directly supervise phytosanitary certification of exported produce in Vietnam. However, during the pandemic, Japan has authorized Vietnam’s Plant Protection Department to do it because Japanese experts cannot come to the country now.

    Bac Giang has so far harvested 2,000 tons of lychees in the early harvest season, half of which has been exported. China is the largest buyer of lychees from Vietnam.

    Vietnam aims to export 20,000 tons of lychees this year to China, Japan, Australia, the E.U., and the U.S.

  • New fund to support startups in Vietnam

    New fund to support startups in Vietnam

    Two partners at U.S. venture capital fund 500 Startups have founded Ascend Vietnam Ventures with plans to invest in 25 local companies.

    Their early-stage investments will range from $500,000 to $2 million and be in tech startups in areas like finance, education, healthcare, productivity, and future of work, according to a statement.

    Around a third of the startups will receive follow-up investments of $4 million, it added.

    The fund was set up by Binh Tran and Eddie Thai, general partners at 500 Startups Vietnam, which was launched in 2016 by the Silicon Valley startup accelerator and VC fund to capitalize on Vietnam’s growing market.

    500 Startups Vietnam raised $14 million in 2018, which has been fully invested in more than 70 companies.

    Some of its notable investments have been in language learning app ELSA, Base.vn, which was acquired by IT giant FPT Corporation, and Axie Infinity, whose latest round includes Mark Cuban as an investor.

    Investment in startups in Vietnam jumped by 34 percent year-on-year in the first quarter to $100 million, according to a report by South Korean venture fund Nextrans.

  • Vietnam’s TNI King Coffee makes US debut

    Vietnam’s TNI King Coffee makes US debut

    Vietnamese coffee label TNI King Coffee has entered the US, opening its first store in Anaheim, California.

    The launch marks the brand’s second international venture after South Korea. King Coffee said it aims to increase its US store network to 20 this year and 100 by next year via a franchise model.

    “The opening of the first restaurant in the US marks a strong development of TNI King Coffee in the global market,” said Le Hoang Diep Thao, founder and CEO of TNI King Coffee.

    Located in the heart of Orange County, the new King Coffee store is a 10-minute walk away from Disneyland. The store design was inspired by the ‘East-meet-West’ culture.

    King Coffee US houses a selection of coffee, including Vietnam’s famous iced milk coffee, black iced coffee, and egg coffee, together with a full-day menu of Vietnamese and Western food. The store also offers King Coffee’s FMCG product range, including instant and whole-bean coffee.

    After the US, the coffee chain also plans to expand its footprint to other markets, including China, Southeast Asia, the Middle East, and Europe.

    King Coffee is known for its Vietnamese coffee range, which is distributed in more than 120 countries and regions.

    Le Hoang Diep Thao previously co-founded Vietnamese coffee conglomerate Trung Nguyen Group with her now estranged husband. King Coffee now operates more than 50 stores in Vietnam.