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Tag: Vietnam

  • Bulgari enters Vietnam with a comeback

    Bulgari enters Vietnam with a comeback

    Italian luxury house Bulgari has opened its first brick-and-mortar store in Ho Chi Minh City, marking its comeback in the country.

    Spanning 194sqm, the Bulgari Vietnam store is located at Union Square shopping centre, featuring the brand’s full range of jewelry, including its famous Serpenti rings, bracelets and necklaces.

    Bulgari first entered Vietnam in 2014 via local distributor Imex Pan Pacific Group and operated until March 2019. In this comeback, the brand set up a member company named Bulgari Vietnam in the country for direct import and distribution.

    According to the brand’s spokesperson, Vietnam is considered as a potential market for the luxury sector due to stable economy and rapid growth. According to data company Statista, Vietnam’s luxury goods market is estimated to reach US$1.14 billion this year and achieve 7.17 per cent growth annually until 2025.

    “We believe this is a good time to bring the brand back to Vietnam,” said the spokesperson. “Overcoming current obstacles will help us to reach a potential customer base that in normal circumstances, they would shop our products overseas.”

    Due to the on-going Covid-19 situation in the country, the brand operated without any launching event.

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  • VinFast eyes global market, to open car plant in US

    VinFast eyes global market, to open car plant in US

    VinFast plans to set up an automobile plant in the U.S. as part of its strategy to start selling there in 2022, Bloomberg reported on Tuesday.

    The company, a subsidiary of conglomerate Vingroup, did not provide details about when it will be set up or where.

    Bloomberg quoted its CEO Thai Thanh Hai as saying: “VinFast’s vision is to become a global smart electric car company and the U.S. is one of the first international markets that we will focus on.

    “We will initially develop high-end models for the U.S.”

    The company also plans to open 35 showrooms and service centers this year in California state where it has received a license to test autonomous vehicles on public streets.

    Malaysian newspaper The Star quoted Hai as saying VinFast believes it can win over American and other overseas customers leery of buying an automobile from a Vietnamese company they know little or nothing about by offering top-quality vehicles with high safety standards and advanced technology.

    The company has R&D centers in Australia, Germany and the U.S.

    VinFast, founded by Vietnam’s first billionaire Pham Nhat Vuong, began selling cars with BMW-licensed engines in 2019.

    Last year it sold 31,500 units, all in Vietnam, where 296,634 cars were sold in all.

  • Seafood Exports Edge up in Vietnam

    Seafood Exports Edge up in Vietnam

    Seafood exports in the first two months of 2021 rose by 2.2 percent year-on-year to over $1 billion, according to the Vietnam Association of Seafood Exporters and Producers.

    Pangasius fish accounted for 21 percent of the exports at $214 million, up 1.7 percent. Shrimp exports topped $380 million, a year-on-year decrease of 0.8 percent.

    VASEP explained that, due to the impact of Covid-19, global demand is high for products that could be preserved for long, are easy to cook at home and are reasonably priced such as frozen and processed white leg shrimp.

    Black tiger shrimp exports plunged due to high prices.

    VASEP estimated exports would be worth $640 million in March, with shipments to the U.S., E.U. and CPTTP trade deal member countries continuing to rise.

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  • Pawn shop chains raise big bucks to expand

    Pawn shop chains raise big bucks to expand

    Vietnamese pawn shop chains have been attracting increasing investment for several years now as large demand for quick loans prompt their expansion.

    Leading jeweler Phu Nhuan Jewelry (PNJ) recently announced that it would acquire a 30 percent stake in pawnshop chain Golden Friend Jsc.

    The Ho Chi Minh City-based pawn shop chain was founded in 2017 with a charter capital of VND1 billion ($43,400), which was raised after six months to VND10 billion.

    The company introduces itself as a strategic partner of PNJ. It has 21 pawn shops, all located inside PNJ stores.

    Earlier this month, HCMC-based pawn shop chain T99 raised VND20 billion from a famous singer, after having received a similar amount from another celebrity last year.

    Another chain, F88, one of the earliest pawn shops chains in the country, raised VND10 billion from a celebrity in 2019 after receiving funds from foreign investors like Mekong Enterprise Fund III and Granite Oak. The chain has 180 shops in 25 localities.

    Pawn shop chains have become more popular in recent years, as they attract customers by offering more professional services than traditional pawn shops.

    Some of them say customers can get a loan money in 15-30 minutes via a quick review process for collateral assets, which can include smartphones, jewelry, motorbikes and cars.

    Most chains have been posting impressive growth figures. F88 last year saw outstanding loans rise 230 percent from 2019 while revenues rose 220 percent. The actual figures were not disclosed.

    The chain, which has nearly 2,000 employees, saw its equity rise 160 percent last year. It raised VND400 billion through bonds last year.

    Another chain, Vietmoney, saw its revenue rise 270 percent year-on-year last year. It has recently sold a 30 percent stake to two foreign investment funds.

    T99, which only entered the market earlier this year, targets having 500 shops nationwide in the next three years and to list on the stock market.

    Observers say that the pawn shop industry has high growth prospects thanks to a high demand for quick loans.

    Around 48 percent of the population has incomes of under $300 per month, and these are potential customers for consumer loans, according to financial data service provider FiinGroup.

    The CEO of F88, Phung Anh Tuan, said it is estimated that 70 percent of Vietnamese citizens still lack access to professional financial services, and this means there is great growth potential for the pawn shop industry.

    Le Dat Chi, deputy head of the School of Finance under the University of Economics Ho Chi Minh City, told local media that as there are many Vietnamese who are not eligible to receive loans from banks, pawn shop chains will serve their credit demand.

    However, more regulations are needed to manage this type of service so they will not be taken undue advantage of by loan sharks, which could have bad consequences for the financial system, he added.

  • State-owned banks lag behind in lending growth

    State-owned banks lag behind in lending growth

    State-owned lenders have been achieving slower credit growth than the industry average for the last five years while private banks are on the fast lane.

    Of the ‘Big Four’ state-owned banks, BIDV, Agribank and VietinBank recorded growth rates that were less than the industry average of 14.6 percent a year in 2016-20 period, according to a note by Rong Viet Securities.

    Vietcombank was the only one to buck the trend with growth of 16.2 percent.

    “Most of the increase in the credit market share in recent years went to private lenders, while the state-owned lenders’ share dwindled,” the report said.

    The latter lost a combined 1.42 percentage point of the market share, it said.

    Part of the reason has been state-owned lenders’ inability to increase capital and to dilute state ownership, it said.

    Meanwhile, private lenders like Techcombank, Military Bank and VPBank posted average growth of over 20 percent in the period, while Saigon Hanoi Bank achieve 18.8 percent and ACB, 17.4 percent.

    Some like TPBank and VIB even achieved growth rates of over 30 percent and 25 percent though their share of credit remained small at 1.4 percent and 1.9 percent.

    Rong Viet Securities analysts said since credit would continue to play an important role in helping the economy achieve GDP growth of 6-8 percent, lending growth is expected to remain in double digits.

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  • Casinos want entry for locals since foreigners cannot fly into Vietnam

    Casinos want entry for locals since foreigners cannot fly into Vietnam

    Casinos want the government to allow Vietnamese entry to make up for foreigners’ inability to come to the country due to Covid-19 flight restrictions.

    A group of casino owners recently petitioned authorities that their facilities in major travel destinations such as Quang Nam and Ba Ria – Vung Tau should be allowed to take advantage of domestic demand.

    Their revenues have plummeted due to the lack of foreign visitors amid flight restrictions, they said.

    Only two casinos, one on the southern island of Phu Quoc and the other in Van Don in the northern province of Quang Ninh, are now allowed to admit Vietnamese.

    The government has for long treated gambling as a “social evil” and prohibited Vietnamese from entering casinos. In January 2019, it began a three-year trial to open certain casinos to Vietnamese. The program does not specify the list of casinos, and licenses are instead given on a case-by-case basis.

    Vietnamese who want to gamble in a casino must be over 21, earn a minimum of VND10 million ($430) a month and have no criminal record or objections from their family.

    The entry fee is VND1 million ($43) for a day and VND25 million ($1,000) for a month.

    Vietnam has eight casinos which earned total revenues of VND2.5 trillion in 2019, according to Ministry of Finance data.

    At Casino Corona in Phu Quoc, the first to allow Vietnamese entry, locals accounted for 45 percent of gamblers in 2019.

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  • Steel giant to manufacture containers for first time in Vietnam

    Steel giant to manufacture containers for first time in Vietnam

    Steelmaker Hoa Phat plans to manufacture 500,000 twenty-foot equivalent unit containers a year to mitigate a shortage since containers are stuck at ports after Covid-19 hit trade.

    It plans to build its first container manufacturing factory in Binh Duong or Dong Nai province and near Cat Lai Port in HCMC and Cai Mep – Thi Vai International Port in Ba Ria – Vung Tau Province.

    The southern region has an especially high demand for containers. Market research by Hoa Phat in fact found that three out of every four containers are used there.

    Nguyen Manh Tuan, vice chairman of the Hoa Phat Group, said the containers would be made of weather-resistant hot-rolled coil steel with enhanced corrosion resistance produced at its Hoa Phat Dung Quat 2 steel plant to be launched in early 2022.

    The logistics sector is suffering from a severe container shortage since many remain in various ports around the world, unable to offload their goods, while demand for containers to export to Europe and the U.S. is high.

    At the end of 2020, the Vietnam Maritime Administration had to order container shipping lines to publicly declare their freight rates and surcharges, saying it had received numerous complaints about inflated prices due to a shortage of containers and warning it would not tolerate gouging.

    Most shipping lines have hiked freight by 2-10 times in the last three months.

    In Vietnam, there is no container production.

    Tuan explained that the price of weather-resistant hot-rolled coil steel used for making containers is high, and would cause losses for companies if they have to import it.

    “Hoa Phat can produce this type of steel,” he said.

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  • Sun Life Vietnam reveals strategy to increase insurance market share

    Sun Life Vietnam reveals strategy to increase insurance market share

    In December 2020, Sun Life Vietnam signed a partnership agreement with ACB to expand its budding bancassurance system.

    The new, 15-year partnership with ACB came into effect on the first day of 2021. ACB will distribute Sun Life Vietnam’s products at their 371 branches in 48 provinces, offering innovative and comprehensive financial solutions to millions of potential clients.

    The deal with ACB came after Sun Life’s first exclusive distribution deal with Tien Phong Commercial Joint Stock Bank (TPBank) just a year prior. The two partnerships prove what great stock Sun Life Vietnam puts into the emerging distribution channel and industry-leading collaborations.

    Larry Madge, CEO of Sun Life Vietnam, said: “We believe our cooperation with ACB and TPB will help us significantly expand Sun Life Vietnam’s client reach and enhance our position in the market.”

    Sun Life Vietnam products are now widely available to millions of TPBank and ACB customers, complementing the insurer’s extensive agency network.

    The two bank partners will also collaborate with Sun Life Vietnam on digitally enhancing their offering, client experience and training to ensure the best consultancy services.

    “The new partnership with ACB will be a powerful boost to our distribution capabilities and will enable us to scale up operations even faster. At the same time, we are accelerating the expansion of our agency network by opening new offices across the country and will also continue developing our existing partnership with TP Bank,” said Madge.

    Since the beginning of 2020, Sun Life Vietnam has been steadily increasing its charter capital while boosting investment in technology, branding, products, and services to meet changing client needs and adapt to new trends and a new working environment.

    For example, as Covid-19 was a complete game-changer for the entire industry, Sun Life Vietnam had to roll out several new solutions to adapt to the new landscape.

    The insurer developed Sun Fast, a solution where their advisors and clients could conduct virtual meetings and the entire consultation and purchasing process digitally. They can fill out and sign applications virtually, without face-to-face interaction, so they are not left without protection even during social distancing.

    In December, Sun Life Vietnam also introduced a new QR payment method to improve convenience.

    According to Vietnam Report, there will be more large-scale collaborations between banks and insurance businesses, with an increasing proportion of insurance revenue generated through bancassurance. Deals between FWD and Vietcombank or Sun Life Vietnam, ACB and TPBank all point in this direction.

    The insurance market is still looking at excellent growth potential due to the low number of insurance policyholders in the country, while the middle-class ranks proliferate.

    Remarkably, bancassurance has been growing even more substantial and now contributes nearly 30 percent of total life insurance sales. The annual average growth rate in 2016-2019 was 30 percent, and while the segment was hit hard by Covid-19, it still grew by 19 percent throughout 2020.

    Madge commented: “The Vietnamese economy has been growing steadily by 6-7 percent in recent years, and with the great job the Vietnamese government has done to manage Covid-19 while maintaining the economy, we have high hopes this rapid growth will continue.”

    “Currently, the Vietnamese insurance market is underpenetrated and only accounts for 1.4 percent of the GDP. Simultaneously, the global average is 3.4 percent.”

    Bancassurance deals offer benefits to all three sides – the insurance company, bank, and clients. It provides an efficient distribution channel to the insurance company, increasing its market reach, revenue, and potential client base.

    Meanwhile, it brings significant investment to the bank partner and improves relations with clients via a comprehensive set of products and services. The client can also enjoy improved protection from daily risks through insurance products while accessing flexible services from both the bank and insurer.

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  • Vietnam beats global average in sustainable lifestyles

    Vietnam beats global average in sustainable lifestyles

    Vietnam is ahead of the global average in adopting healthy and sustainable lifestyles, a survey has found.

    Forty seven percent of respondents in Vietnam said they had supported a socially responsible company last year, against a global average of 33 percent, the survey by research company GlobeScan and digital payment firm Visa said.

    Eighty two percent said they had sought out information related to healthier lifestyles last year, well above the global average of 56 percent.

    The survey, which polled 27,000 people in 27 countries and territories, also found that people in Vietnam are taking proactive steps towards healthier and more sustainable lifestyles.

    Ninety percent said they had made changes to their lifestyles last year to be more environment-friendly, and 87 percent made changes to be healthier.

    Vietnamese also display a high interest in environment-friendly lifestyle choices, with 81 percent saying they had sought out information about them last year against a global average of 47 percent.

    “It is encouraging to see that consumers in Vietnam are already taking concrete steps to lead healthy and sustainable lifestyles,” Dang Tuyet Dung, Visa country manager for Vietnam and Laos, said.

    Asked what companies could do to help them live healthily and sustainably, Vietnamese listed a desire for new products that are better for both people and the environment as a top priority.

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  • Vietnamese banks continue to ascend global brand rankings

    Vietnamese banks continue to ascend global brand rankings

    Nine Vietnamese lenders, five of them state-owned, have risen up the list of the world’s 500 most valuable banking brands.

    State-owned Agribank, one of the ‘Big 4’ state-owned lenders, jumped 17 places to 173th in the annual ranking put out by U.K. consultancy Brand Finance.

    Fellow state-owned lenders Vietcombank and VietinBank rose 27 and 61 spots to 180th and 216th.

    BIDV was at 246th and MB at 374th, up 30 and 12 spots.

    Of the private lenders, VP Bank rose 37 places to 243rd and the country’s private player, Techcombank, jumped 57 spots to 270th.

    Sacombank and ACB rose 30 and 23 places to 392nd and 397th.

    The report said VietinBank was one of 10 fastest-growing banks globally last year.

    “Vietnam’s banking sector has seen the greatest year-on-year brand value growth of any nation in the rankings with 23 percent,” the consultancy said.

    “Vietnam’s ability to effectively control and constrain Covid-19 has allowed it to buck the sector-wide trend of declining brand value.

    “Internal reforms have strengthened accountability in the Vietnamese financial sector, which has had the knock-on effect of boosting not just revenues, but brand reputation and trust.”

    Vietnam’s banking sector has recorded cumulative brand value growth of 753 percent in the last five years, the second-highest rate in the rankings.

    “Since the Vietnamese government introduced its strategy to boost accountability and the strength of the banking sector, including more stringent capital requirements and greater transparency, customer perception has improved,” Brand Finance said.

    China’s ICBC was the world’s top bank brand.

    Chinese banks maintained their dominance in the rankings, accounting for 33 percent of total brand value and seven of the 10 top climbers.

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  • Vietnam Airlines to invest $430 mln to offer ground services at Long Thanh airport

    Vietnam Airlines to invest $430 mln to offer ground services at Long Thanh airport

    Vietnam Airlines plans to invest VND9.9 trillion ($430 million) in the under-construction Long Thanh International Airport to become a provider of ground services and in-flight meals.

    It plans to provide aircraft maintenance services, supply jet fuel and meals, serve passengers in lounges, and set up duty-free shops, the carrier said in a proposal to authorities.

    These are services the state-owned carrier already provides at major airports in the country.

    It will bring in 30 percent of the amount from its own resources and borrow the rest.

    Its subsidiaries can either set up facilities at the airport or joint ventures with the Airports Corporation of Vietnam (ACV), which oversees the construction and would operate the airport, the proposal said.

    It hopes to get a dedicated area at the airport to build hangars for aircraft maintenance and in the terminal to prioritize its customers.

    Construction of the first of three phases of Long Thanh International Airport in the southern province of Dong Nai, 40 kilometers east of Ho Chi Minh City, began in January.

    The $4.6-billion first phase of the airport is set to be completed by 2025 when it will be able to handle 25 million passengers and 1.2 million tons of cargo a year.

    The final phase will be completed by 2040, when the airport will have four runways and four passenger terminals. It will have a capacity of 100 million passengers and five million tons of cargo.

  • Workers in high demand as factories expand production

    Workers in high demand as factories expand production

    Several localities have reported demand for thousands of workers as manufacturers seek to scale up production.

    In some industrial parks in the southern provinces of Dong Nai and Binh Duong, hundreds of companies have put up hiring notices this week.

    South Korean textile firm Taekwang Vina in Dong Nai is looking for 3,000 workers as it plans to establish four more production chains this year.

    The company offers a minimum monthly salary of minimum VND7 million ($304). Anyone with basic literacy can apply.

    Another South Korean textile firm in the province, the Chang Shin Vietnam Company, which has 35,000 workers, is also recruiting an unspecified number of new workers as the number of orders received by the end of this year has already exceeded capacity, prompting it to build two new workshops.

    In Binh Duong, official data shows local companies are looking for nearly 40,000 workers in several sectors including textiles, wood processing and household products manufacturing.

    Companies are sending recruiters to sit near main roads to increase the chances of contacting candidates.

    “Businesses are struggling to find workers even though they are offering high salaries of VND7-13 million a month plus benefits,” Nguyen Kim Loan, chairwoman of the Binh Duong Labor Federation, told local media.

    In the northern province of Bac Ninh, where many multinational manufacturers have set up plants, the demand for workers is estimated at 15,000.

    Foxconn, a major supplier for Apple, is hiring 1,000 workers in Bac Ninh and the neighboring province of Bac Giang. It received a license in January to build a $270-million plant produce laptops and tablets in Bac Giang.

    Nguyen The Quyet, chairman of the union of workers at industrial parks in Bac Ninh, said that many companies were unable to complete orders last year due to disruptions caused by the Covid-19 pandemic and were seeking to make up now.

    Another reason is a surge in new orders this year from many countries, pushing factories to expand production and employ more people, he added.

    Recruitment demand was highest among electronics and vehicle parts producers, he said.

    Vietnam’s industrial production index rose over 22 percent year-on-year in January as the economy recovered from Covid-19 impacts, according to the General Statistics Office.

    The country’s GDP growth could hit 7.5 percent this year, compared to 2.9 percent last year, according to credit rating company Fitch Ratings.

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  • Vietnam, New Zealand to expand fruit trade this year

    Vietnam, New Zealand to expand fruit trade this year

    Vietnamese limes and pomelos could be exported to New Zealand soon, following a commitment made Wednesday during the first agricultural dialogue between the two countries.

    The virtual dialogue was co-chaired by Ray Smith, Chief Executive of the New Zealand Ministry for Primary Industries, and Dr Le Quoc Doanh, Vice Minister of Vietnam’s Ministry of Agriculture and Rural Development (MARD).

    A New Zealand embassy press release said the two leaders had confirmed their shared commitment to finalizing new fruit access for each other this year, so consumers can enjoy New Zealand strawberries and squash in Vietnam and Vietnam’s limes and pomelos in New Zealand.

    The two sides signed an Agriculture Cooperation Arrangement (ACA) after the dialogue.

    The ACA will enable both sides to advance their key agricultural interests in enhancing bilateral trade, reducing agricultural greenhouse gas emissions, promoting food safety, utilizing agriculture research and technology, and fostering rural development, the release said.

    The New Zealand Ministry for Primary Industries is already supporting agriculture cooperation with MARD through activities in plant health, veterinary epidemiology and electronic certification.

    These activities complement New Zealand’s ongoing development program in the country, which has a number of agriculture projects including one on premium fruit development in the southern province of Tien Giang, another on rural dam safety project in central Vietnam, and yet another on safe vegetables in central Binh Dinh Province.

    Smith and Doanh affirmed that the strategic partnership between the two countries has created a solid foundation for increasing bilateral agricultural cooperation and connections.

    Vietnam is New Zealand’s 14th largest trading partner, with two-way trade valued at over $1.4 billion as of September 2020.

    Vietnam has received licenses to export fresh mango, dragon fruit and rambutan to New Zealand so far. It imports apple, kiwi fruit, kiwi berry, blue berry, cherry and persimmons.

  • Three VinSmart phone models make US debut

    Three VinSmart phone models make US debut

    Three smartphone models produced by VinSmart, a unit of Vietnamese private conglomerate Vingroup, have been sold in the U.S. since earlier this year.

    Carrier AT&T distributes the phones under the names Fusion Z, Motivate, and Maestro Plus through its own stores and some retail chains like Walmart.

    The model codes match those of three VinSmart models licensed by the U.S. Federal Communications Commission (FCC) to be sold in the U.S.

    Their prices range from $39 to $89, including promotions and a two-year warranty.

    All three 4G models have six-inch screens and operate on the Android 10 operating system.

    VinSmart was partnering with AT&T to produce smartphones, with around two million units in the first batch.

    VinSmart declined to comment on the reports.

    The three phones are part of 10 smartphone models approved by the FCC, including Vsmart Aris, the latest mid-range model produced by VinSmart and is being sold in Vietnam.

    VinSmart’s factory, located in Hoa Lac Hi-Tech Park in Hanoi, is capable of producing 125 million smartphone units annually.

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  • Bamboo Airways hikes capital by 50 pct

    Bamboo Airways hikes capital by 50 pct

    Bamboo Airways has increased its charter capital by half to VND10.5 trillion ($458 million), its fifth hike in less than four years since establishment.

    The airline, in which conglomerate FLC owns a 51.29 percent stake, posted a pre-tax profit of over VND400 billion last year, up 34 percent from 2019.

    The airline began flying in 2019, and carried over four million passengers last year, a 40 percent increase from the previous year.

    It has a fleet of nearly 30 aircraft and plans to expand it to 50 this year. It has the best on-time performance in the country.

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