Tag: Vietnam

  • China cryptocurrency craze drives hard drive shortage in Vietnam

    China cryptocurrency craze drives hard drive shortage in Vietnam

    Large capacity hard drives are virtually out of stock in Vietnam because of a cryptocurrency mining craze in China.

    Customers and market observers say local people have been buying large-capacity hard drives in bulk and reselling them to the Chinese amidst a new mining craze for the Chia cryptocurrency in China.

    People who need to buy large space hard drives have commented on online groups for computer component buyers that they could not find any 6TB or larger-spaced hard drives, so they were having to buy smaller ones to merge into a large one.

    Hoang Lam, Subject Matter Expert of data storage company Seagate Vietnam said that Seagate’s 4TB hard drives have been out of stock since last month because “many of our customers bought the hard drives in bulk, from hundreds to thousands in one order, instead of a few units in one order as usual.”

    A computer component distributor in HCMC said that their hard drive sales surged by 50 percent last month despite prices rising 10-20 percent, and now the store is out of stock.

    Thanh Phong, a cryptocurrency miner and cryptocurrency mining gear seller, said the chokehold on large capacity hard drives supply in Vietnam was caused by the cryptocurrency mining boom for Chia in China.

    Chia is built around a cryptographic technique called Proof of Space and Time, which allows the cryptocurrency to be mined with unused storage space on hard drives rather unlike others like Bitcoin or Ethereum that use graphics cards. The more unused storage on the hard drive, the more Chia can be mined.

    Phong said that the Chia craze is yet to spread to Vietnam. Therefore, Vietnamese were buying hard drives in bulk to sell them to China.

    The Chinese miners have been stockpiling hard drives, preparing for Chia’s launch in May. As a result, hard drives with large capacities, from 4TB to 18 TB, have already been sold out on many Chinese e-commerce platforms.

    According to manmanbuy.com, a Chinese website that tracks and compares historical prices of products on China’s popular e-commerce platforms, the price of hard drives has surged 300 percent since the end of last year.

    Chia is the brainchild of Bram Cohen, the creator of BitTorrent, a peer-to-peer protocol that allows users to distribute data and electronic files over the Internet in a decentralized manner. Cohen created Chia in 2017 with the aim of making a cryptocurrency that consumes less energy and generates less carbon when mining, compared to Bitcoin or Ethereum.

  • Vietravel posts $3 mln loss in Q1

    Vietravel posts $3 mln loss in Q1

    Tourism company Vietravel has already posted a loss of VND72.8 billion ($3.15 million) this year, or 81 percent of the loss it suffered in the whole of last year.

    Revenues fell nearly 65 percent to VND277 billion as the Covid-19 outbreaks in the first quarter hit travel.

    Its accumulated losses as of the end of March were over VND102 billion, or higher than its equity.

    The company targets an increase of 411 percent in revenue to VND6.24 trillion this year and a pre-tax profit of VND10 billion.

    In the first quarter it spent nearly VND59 billion on its new carrier, Vietravel Airlines, which began operations at the end of last year.

  • European companies in Vietnam say confidence en route to pre-pandemic levels

    European companies in Vietnam say confidence en route to pre-pandemic levels

    The Business Climate Index of European companies in Vietnam has climbed back to near pre-pandemic levels amid the economic recovery.

    It rose 10.3 percentage points in the first quarter from the previous quarter to 73.9 percent, according to a survey released by the European Chamber of Commerce in Vietnam (EuroCham).

    This is the fourth straight quarterly increase since the index plunged to a historic low of 26.7 points in the first quarter of last year due to Covid-19.

    “The Business Climate Index confirms once again that Vietnam is open for business,” EuroCham Chairman Alain Cany said.

    While countries continue to struggle with the impact of Covid, Vietnam has ensured that companies could continue to operate as close to normal as possible, and this is driving the confidence of European business chiefs, he added.

    Sixty-seven percent of respondents said their business outlook for the second quarter is either “excellent” or “good”, up 12 percentage points from this quarter.

    Forty-one percent expected their payroll to expand in the second quarter.

    “The fact that more business leaders are anticipating a rise in their headcount and investment plans are a vote of confidence in Vietnam’s long-term prospects,” Thue Quist Thomasen, CEO of YouGov Vietnam, which conducted the survey, said.

    Over 60 percent of EuroCham members have benefited from the EU-Vietnam Free Trade Agreement since it came into effect in August last year.

  • Doors open wider for Vietnam exports to the US

    Doors open wider for Vietnam exports to the US

    A large demand for agricultural produce and electronics products as well as rising e-commerce potential give Vietnamese exporters greater opportunities in the U.S. market, experts say.

    The U.S. is a market with much potential for Vietnamese companies, especially as Vietnam has been able to keep the Covid-19 pandemic under control, said Nguyen Huu Tien, director of the HCMC Investment and Trade Promotion Centre.

    The U.S. was Vietnam’s largest export market in the first four months with the value of shipments surging 50 percent year-on-year to $30.3 billion.

    Top export categories included machinery and equipment, textile and garment, and computers and electronics.

    Last year, Vietnamese exports to the U.S. ranked third in Asia after China and Japan.

    Ken D. Duong, director of international law firm TDL, said that traditional categories such as agriculture produce and fisheries were posting strong figures despite the pandemic.

    U.S. companies have stopped purchasing some hardwood products from China and are looking for alternative markets, he said, adding that last year, many Vietnamese companies were able to take advantage of this and got large orders.

    Many Vietnamese-Americans are looking for suppliers in Vietnam to export products to the U.S., he added.

    There are a lot of opportunities for electronics export because a number of American and Taiwanese firms have established factories in Vietnam to research and develop internet of things products.

    “There are signals that indicate that Vietnam could become a hub for researching and manufacturing advanced tech products,” Duong said.

    Amazon Global Selling Wednesday announced a new campaign in partnership with the Vietnam e-Commerce and Digital Economy Agency (iDEA) that would help Vietnamese sellers sell more products on Amazon.

    But other experts said there were challenges that Vietnamese exporters face, such as trademarks. They cited the latest example of a Vietnamese rice brand, ST25, which won an international contest as the world’s best variety, being trademarked by a U.S. company.

    Duong said that usually it costs $1,000-1,800 to register a trademark in the U.S. Around 50 percent of mid-sized Vietnamese companies in the U.S. register their brand and the ratio is just 10 percent for small firms.

    Vietnamese suppliers need to understand U.S. regulations on intellectual property to step up in the global supply chain, he added.

    Dang Hoang Hai, head of the iDEA, said that as many Vietnamese sellers are reluctant to export their products to the U.S. via e-commerce, his organization will provide more training to help hundreds of small and medium companies sell their products on Amazon.

    Although there has been speculation about the U.S. rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), U.S. officials have said that this would not happen in the short term.

    Mary Tarnowka, executive director of American Chamber of Commerce in Vietnam, cited a report by a Fulbright University professor to show that U.S. President Joe Biden will not consider signing another free trade agreement until the middle of his term.

  • Online concierge pharmacy platform POC raises $4.5 mln to improve services in Vietnam

    Online concierge pharmacy platform POC raises $4.5 mln to improve services in Vietnam

    Pharmacy Online Concierge Pharma has secured $4.5 million in an equity financing round to digitize pharmacies in Vietnam.

    Based in Vietnam and Hong Kong, the platform helps stakeholders such as pharmacies, drug manufacturers, distributors, wholesalers, and consumers to digitally manage their interactions.

    It raised the money from Picus Capital of Germany, Goat Capital and FJ Labs that of the U.S., Febe Ventures 500 Startups Vietnam of Singapore, and several unnamed angel investors. It is one of the biggest rounds at this stage in Vietnam.

    POC Pharma said it would use the money to improve its services in Vietnam, focusing on selling pharmaceutical products online first and then aiming to launch in more countries.

    Its services include trade programs and trade offers management, content and information sharing, data integration and visualization, customized customer engagement, multichannel commercialization, and order management. Established in 2020 by Thomas Miklavec and Charles Defrance, POC helps pharmacists manage all their processes, increasing revenues and profits while improving their quality of service.

    The startup said it has five global pharmaceutical company customers, including Bayer and Pfizer, and more than 20,000 pharmacies in 22 different markets use its platform.

  • Bamboo Airways hikes capital yet again

    Bamboo Airways hikes capital yet again

    Private carrier Bamboo Airways has increased its charter capital by 28 percent to VND16 trillion ($695 million), the highest in the industry.

    Since it was set up in May 2017 with a capital of VND700 billion, this is the airline’s seventh hike.

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

    It is expected in the third quarter, with the company likely to offer a 5-7 percent stake.

    It also plans to expand its fleet from 30 aircraft to 40.

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

  • Habeco chairman blames low profit target on Covid-19

    Habeco chairman blames low profit target on Covid-19

    The chief of the company that produces Hanoi Beer, Habeco, expects sales to be hit badly by Covid-19 this year and profits to plummet to a decade low.

    The brewery targets post-tax profits of VND255 billion ($11 million), down 64 percent from last year.

    Its chairman Tran Dinh Thanh said a fresh outbreak of Covid-19 in January means tourism companies, hotels and restaurants continue to languish, directly causing a decrease in the sales of alcoholic beverages.

    The company’s revenues in the first quarter of this year were down 39.6 percent from the previous quarter to VND1.1 trillion ($48.5 million).

    Rising competition with many brewers introducing new products in the mid-priced market segment in which Habeco mainly operates is also a reason for falling sales, he said.

    “If the pandemic is contained this year, the company will definitely surpass the profit target.”

    It is striving to maintain its position as one of the biggest brewers in the northern and central regions, and working to expand its business in the south, he added.

    Last year, beer consumption fell 22.6 percent because of Covid-19 impacts as well as the impact of a law increasing fines for driving under the influence.

  • Vinhomes revenues double, but profits sharply down

    Vinhomes revenues double, but profits sharply down

    Property giant Vinhomes reported a 99 percent year-on-year rise in first-quarter revenues to VND12.9 trillion ($564.6 million).

    But pre-tax profits were down 30 percent to VND7 trillion due to rising selling expenses.

    At the end of last year, the company had claimed to have 16,800 hectares of lands for residential and commercial projects.

    It recently received approval from the government to develop the Dai An urban area in the northern province of Hung Yen, which will spread over 294 hectares, cost VND32.6 trillion and be completed in 2027.

    It plans to complete and hand over three other urban areas this year, one in Hung Yen and two in Hanoi.

  • VietinBank Securities expects surge in profits

    VietinBank Securities expects surge in profits

    VietinBank Securities targets pre-tax profits of VND180 billion ($7.8 million) this year, up 20 percent from 2020, as the stock market continues to rise.

    The company secured a $30-million loan from a consortium of four Taiwanese banks in March and another $60 million from Korea’s Woori Bank and Taiwan’s Fubon Bank and Cathay United Bank a month later.

    It is its highest profit target since 2017, with CEO Tran Phuc Vinh explaining that the low deposit interest rates which are diverting funds into the stock market, and the increasing number of new investors are the factors for the optimism.

    The loans provide it with funds for margin financing and investing in corporate bonds and certificates of deposit, Vinh said.

    It reported a 20 percent rise in revenues to VND610 billion last year and an 8 percent increase in pre-tax profits to VND151 billion.

    Vietnam’s benchmark VN-Index has risen 10.5 percent from the end of last year to 1,219.75 points Tuesday. Brokerage FPT Securities forecast that VN-Index could hit 1,351-1,400 points this year.

    The stock market saw nearly 258,000 new trading accounts opened in the first quarter, accounting for 65 percent of the figure recorded in 2020 as a whole, according to the Vietnam Securities Depository (VSD).

    This took the total number of accounts to nearly 3.02 million as of last month, equivalent to 2.8 percent of Vietnam’s population.

  • Airport ground services firm targets $4.1 mln profit

    Airport ground services firm targets $4.1 mln profit

    Its revenue target is VND795 billion, a 7 percent rise. The targets were announced at the company’s annual general meeting on Tuesday.

    It is set to benefit from the start of the new Vietravel Airlines by leading tour company Vietravel last January and the gradual resumption of international flights from July.

    “Many countries including Vietnam are considering issuing vaccine passports to resume international flights, which will enable the aviation industry to recover,” the company’s chairman Dang Tuan Tu, said.

    Last year the company reported revenues of VND746 billion, a 53 percent decline, and profits of VND88 billion, down 74.5 percent as international flights were grounded and tourism came to a standstill.

    The average number of flights it served per day last year was 70 percent down from the normal 350.

  • Major seafood firm reports 25 pct profit fall

    Major seafood firm reports 25 pct profit fall

    It attributed the falling profit to a 20 percent drop in income from financial activities and a 27 percent increase in cost of goods sold during the period.

    The company also said that the pandemic has changed consumer behavior in its main export markets like the U.S., Japan, Canada, Australia and New Zealand. They have prioritized buying essential products.

    Seafood exports to these markets fell by half in the first quarter of the year, contributing to a year-on-year revenue drop of 12 percent to VND1.6 trillion.

    The company aims to export $638 million worth of shrimp this year.

    Its total asset value at the end of March was nearly VND7.4 trillion.

    It has targeted revenues of VND15.7 trillion and post-tax profit of VND1.4 trillion this year.

  • Mobile World sets sights on significant 2021 improvements

    Mobile World sets sights on significant 2021 improvements

    The Mobile World Investment Joint Stock Co. targets VND125 trillion ($5.4 billion) in net revenues and VND4,750 billion ($206.6 million) in after-tax profits this year. The targets are respectively 15 and 21 percent higher than the company’s 2020 figures.

    The company has said in a statement that while the market still carries risks amidst the Covid-19 pandemic, it is determined to return to double-digit growth. This is the tenth consecutive year that it has set growth goals with increased revenue and profit targets.

    The firm plans to establish the Dien May Xanh Supermini chain with more than 1,000 stores by the end of this year. Their Bach Hoa Xanh chain that sells vegetables, seafood, meat and fast-moving consumer goods (FMCG) will be expanded with large stores with areas of more than 500 square meters in major metropolises.The company’s backbone business is retailing of smartphones and electronics, and this is expected to contribute around 75 percent of sales, with the rest coming from food and consumer goods.

    Mobile World will also focus on online sales, develop its Bluetronics chain in Cambodia, its high-tech agricultural project named 4KFarm and pharmacy chain An Khang.

    Last year, Mobile World earned VND108,546 billion ($4.72 million), up 6.2 percent year on year. Its after-tax profit was VND3,920 billion ($170.5 million).

    Mobile World has over 4,000 outlets in Vietnam and 37 in Cambodia. It opened nearly three new outlets a day on average last year. The company plans to become the top retailer in Southeast Asia by 2030.

  • Nuclear energy, an option for Vietnam in the long run

    Nuclear energy, an option for Vietnam in the long run

    Clean and reliable nuclear energy could help Vietnam meet its growing power demand over the long term and ensure its development is not derailed, experts say.

    Prof Sheldon Landsberger of the University of Texas at Austin, the U.S., an expert in nuclear and radiation engineering, said: “With a population of nearly 100 million people, Vietnam will need a lot of energy. The country has to figure out what is the best way of getting electricity.”

    It is crucial for Vietnam to sustain the growing standard of living of its people and have competitive industries, he said.

    While renewable energy sources such as solar and wind could be unreliable depending on the climate, nuclear plants could work 24 hours on all 365 days a year, he pointed out.

    It is a stable source like coal, and enables electricity storage as well, he said.

    However, unlike coal, nuclear energy is free from carbon emissions and does not pollute, he said.

    Talking about the status of nuclear energy around the world, he said it is “very mixed” with parts of Western Europe planning to continue with it but others phasing it out.

    The world would run out of coal and gas, maybe later this century, Landsberger said.

    “For that reason, Vietnam, like other countries, has to look not five or 10 years down the road but 30 or 40 years.”

    Dr. Steven Biegalski, nuclear and radiological engineering, and medical physics program chair, Georgia Institute of Technology, the U.S., said in his country nuclear power is still coming out on top today. Americans are seeing a significant reduction in using coal and natural gas, two main competitors of nuclear energy.

    Dr. Sama Bilbao y Leon, director-general, World Nuclear Association, said nuclear energy could help ensure not only the grid stability of a country but also produce heat used in industrial processes and transportation. With this, countries could decarbonize various sectors, she said.

    Vietnam could also use nuclear energy to produce fresh water, something that Middle Eastern countries are looking into, she said.

    Prof Ken-ichi Fukumoto of the Research Institute of Nuclear Engineering, University of Fukui, Japan, said nuclear power is a realistic solution for Vietnam to ensure power supply.

    In fact, despite the Fukushima accident in 2001, Japan still uses nuclear energy because it is reliable and reduces carbon dioxide emissions, he said. However, new plant development is now restricted as the public are concerned about their safety.

    Germany, despite abandoning nuclear power at home, buys nuclear power from neighbor France, he pointed out.

    Author of “A Question of Power: Electricity and the Wealth of Nations,” Robert Bryce, said Vietnam, like other developing countries in Asia, is seeing rapid growth in electricity demand and should include advanced nuclear reactors in plans to expand its electric grid.

    There are several challenges to building new nuclear reactors, including cost, the time required and fuel production and disposal, but if Vietnam is to help reduce global greenhouse gas emissions, it should include nuclear in its electricity portfolio, he said.

    Jennifer Gordon, a senior fellow at the Global Energy Center, Atlantic Council, the U.S., said it is now an important time for Vietnam to start discussions about investment in nuclear energy.

    In 2009 Vietnam had planned to build two nuclear power plants in the south-central province of Ninh Thuan at a cost of several billion dollars, but the National Assembly shot down the proposal in 2016 on cost grounds.

    Vietnam would not build old types of reactors if it is starting a nuclear program now, Gordon pointed out. To ensure safety, the newer types of reactors shut down automatically without human management, she said, citing the example of the sodium-cooled fast reactor.

    “Advanced reactors are in development that should be taken into account by Vietnam.”

    Landsberger said in Vietnam, nuclear energy could be a combination with wind, solar and tide.

    Vietnam should keep in mind that the climate is changing and so being dependent on renewable energies, including hydropower, would be shortsighted, he said, suggesting that Vietnam should consider a baseload, or the minimum amount of electric power delivered, of 30-40 percent from nuclear plants.

    South Korea and Japan are good examples of successful economies partly thanks to nuclear energy development, he said. They have steady electricity prices over long periods of time and do not have to rely on other countries, he pointed out. Vietnam should look at all areas of energy and choose the best path forward based on economics, he said.

    Speaking about costs, he said nuclear power would be expensive, but Vietnam should weigh all factors. For instance, people would have health expenses if the country has pollution (caused by fossil fuels), and Vietnam could get a lot of support as a developing country from the International Atomic Energy Agency.

    “Nuclear power is a very long-term plan.”

    Biegalski said there is a significant and earnest desire in the U.S. to look at the next generation of nuclear power technologies.

    He said he understood there is a fear in various countries after the accident in Fukushima, but when people look at the data they would see no one died as a result of the reactors, whereas the tsunami claimed 15,000 lives.

    Leon said small modular reactors offer an advantage since they are scalable.

    Fukumoto said it is desirable to examine the latest technologies if Vietnam is considering nuclear energy. Small modular reactors, which are being opted in the U.S, Canada and Japan, offer greater economic benefits and have higher safety standards including in the disposal of nuclear wastes and while decommissioning, he said.

    Bryce said nuclear energy is the safest form of electricity generation, adding that Vietnam, like other countries, would need to adhere to safety protocols around the handling of nuclear materials and operation of nuclear plants.

    Biegalski said Vietnam needs to build regulatory frameworks and develop a workforce before producing nuclear power. So it should start investing in training programs in universities, he said.

    “It is a long process; it is not like you can turn a switch and it happens today.”

    Landsberger said Vietnam needs to invest in nuclear engineering programs to train technicians, reactor operators, regulators, and environmental scientists. It should have an open discussion about the public health benefits of nuclear power compared to burning fossil fuels, he said.

    Fukumoto expressed optimism that Vietnam and Japan could begin cooperation in training that had been discussed before when the projects in Ninh Thuan Province were under consideration.

    It is necessary for the Vietnamese government and other related stakeholders to have a deep understanding of nuclear power generation and Japan’s experience, he said.

    Leon said when a country wishes to develop nuclear energy, there is a lot of international support and co-operation, and newcomers could learn best practices from other countries that have effective nuclear power programs.

    Leon said if people in Vietnam and other countries feel uncomfortable about using nuclear energy after the Fukushima accident, it is completely reasonable.

    So, if the Vietnamese government is looking at nuclear energy, the first thing that needs to be done is talking to the public, making sure people understand the facts about nuclear energy, she said.

    “There should be a consensus on how Vietnam wants to move forward with different energy choices.”

  • TPBank posts 41 percent surge in profits

    TPBank posts 41 percent surge in profits

    The bank said a surge in net interest income and a cut in operational expenses has boosted its Q1 performance.

    Its net interest income grew 30 percent in the period, while operational expenses dropped 10 percent, according to the bank’s financial statement.

    It said that its pre-tax profit growth was average compared to other lenders’ growth rates of 50 percent or even over 100 percent during the same period.

    For example, the increase in Q1 pre-tax profit was 135 and 110 percent respectively for the state-owned VietinBank and Military Commercial Bank (MBBank). Private lender ACB, meanwhile, saw a 61 percent increase in its Q1 pre-tax profit.

    TPBank’s Q1 revenue was up 15.2 percent year-on-year to VND2.78 trillion.

    By March end, both its outstanding loans and capital mobilization increased 4 percent to VND124.3 trillion and VND120 trillion, respectively. Non-performing loans were at 1.19 percent.

    The bank has set a target of VND5.5 trillion in pre-tax profit for 2021, a year-on-year increase of 25 percent.

  • Global firms dominate Vietnam electronics exports

    Global firms dominate Vietnam electronics exports

    In the first quarter this year, exports of phones and components were worth $14.1 billion, 99 percent of it by foreign firms.

    Exports of computers and parts exports topped $12 billion, with foreign companies accounting for 98 percent.

    The agency said the rate of use of local parts in the industry is 5-10 percent, with Vietnamese businesses in the supply chain mostly producing low added-value products.

    There are several domestic smartphone brands like Vsmart produced by VinSmart, a subsidiary of conglomerate Vingroup, and Bphone by cybersecurity company BKAV, but the market is dominated by foreign brands.

    The agency said: “The products made by domestic firms do not meet the demand in terms of quality or design. The linkages between foreign firms and their local counterparts remain weak.”

    But it admitted Vietnamese businesses have been striving to improve quality so that they could enter the supply chains of foreign companies, pointing out for instance that the number of local tier-1 suppliers (who supply products directly to a company without going through intermediaries) of Samsung had increased from four in 2014 to 35 last year.

    Local electronics firms should identify their core products, target their market segments, stay ahead of consumer trends, and keep up with the global technological development to create competitive products, it said.

    “They should take advantage of trade deals such as the EU–Vietnam Free Trade Agreement,” the agency stressed.