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Tag: Vietnam

  • Thai super-star singer Ying Lee’s concert in the sky spices up Thai Vietjet’s inaugural Bangkok – Khon Kaen flight

    Thai super-star singer Ying Lee’s concert in the sky spices up Thai Vietjet’s inaugural Bangkok – Khon Kaen flight

    Thai Vietjet today inaugurated its maiden flight VZ210 from Thailand’s capital airport of Suvarnabhumi to Khon Kaen, the country’s commercial and political centre in the Northeastern region. Celebrating the new service, Thai Vietjet gave passengers a memorable surprise with a ‘Ying Lee’ concert in the sky, complete with a full team of dancers and cabin crew, along with nice corporate souvenirs.

    In celebration of the new route, the airline also launched a mega promotion from just THB 5 for a one-way ticket (approx. US16 cents) (*) for booking throughout the five golden days of 1st – 5th August 2020 at their website or Vietjet Air mobile app. The special promotion tickets are applied for all Thailand domestic flights of Thai Vietjet traveling during 1st August – 30th September, 2020.

    Aiming to facilitate domestic travel in Thailand, Thai Vietjet has constantly increased its flight frequency and destinations from Bangkok Suvarnabhumi Airport. Currently, the carrier serves 8 flights/day to Phuket/Chiang Mai, 3 flights/day to Chiang Rai, 2 flights/day to Udon Thani/ Krabi/ Hat Yai/ Khon Kaen in which the flight frequency for Suvarnabhumi – Hat Yai service will be increased to 3 flights/day from 15th August 2020. The airline will also inaugurate the Suvarnabhumi-Nakhon Si Thammarat flight on 6th August 2020. It has also introduced on-line check-in service for domestic passengers traveling out of Suvarnabhumi airport for more convenience.

    The new route Bangkok- Khon Kaen marks the airline’s 7th route from its Suvarnabhumi hub and is operated 2 flights daily, with a flight duration of around 1 hour 5 minutes per leg as per the schedule below:

    Flight No. Departure from Suvarnabhumi Arrival at Khon Kaen Flight No. Departure from Khon Kaen Arrival at Suvarnabhumi
    (Local time) (Local time)
    VZ210 07.30 08.35 VZ211 09.05 10.15
    VZ212 15.45 16.50 VZ213 17.20 18.30
  • Casino operator RIC posts $2.3 mln loss

    Casino operator RIC posts $2.3 mln loss

    Royal International Corporation (RIC), which operates the largest casino in Quang Ninh Province, posted a loss of VND54 billion ($2.3 million) in the first half.

    The second quarter was the third consecutive quarter the HCMC Stock Exchange-listed company had reported a loss. Its accumulated loss by the end of June totaled VND282 billion ($12.2 million).

    Revenue in the first half fell 38 percent year-on-year to VND49 billion ($2.1 million) as its hotel and casino complex in travel hotspot Ha Long Town was closed most of April due to the coronavirus pandemic.

    The company has been cutting down staff and salaries in recent months to reduce costs. In the first six months, its employee numbers fell by 334 to 1,059. It had earlier forecast revenues of VND294 billion ($12.7 million) this year, of which 64 percent would be drawn from the casino and 36 percent from hospitality. Last year Royal International Corporation had posted a loss of VND72 billion ($3.1 million), blaming it on the increasing number of casinos in Ha Long.

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  • Parkson to give up on full-scale stores in Vietnam

    Parkson to give up on full-scale stores in Vietnam

    Malaysian department-store operator Parkson is to quit operating full-scale stores in Vietnam after years of losses. At one stage the company had 10 stores in the country and was confident of long-term success given it was the first overseas department-store brand to enter the market.

    This week, Singapore-listed Parkson Retail Asia announced that subject to shareholder approval, it will sell the Parkson TD Plaza Shopping Centre it anchors in the northern port city of Haiphong for US$10 million, representing a $500,000 loss on book value, but a $500,000 premium on local valuation. Parkson’s Vietnam operations are owned by Parkson Haiphong, a wholly-owned subsidiary of Parkson Retail Asia, which is two-thirds owned by Parkson Holdings of Malaysia. The purchaser is local company Thuy Dong Construction Trading.

    The disposal leaves just one property remaining in downtown Ho Chi Minh City, (pictured above), which used to house the brand’s flagship in the country. A large part of that store has since been leased out to Uniqlo and another Japanese retailer, Muji, is believed to be currently fitting out at least part of the remaining space.

    “Following the completion of the disposal of the [Haiphong] property, Parkson Vietnam will only continue its business of operating and managing the store in Ho Chi Minh City, and will cease to operate any Parkson brand department store on the property.”

    The way this statement is worded, it suggests that the company will no longer operate a department store in Ho Chi Minh City and by converting such large parts of the building into space leased to other retailers, it would appear the strategy is to morph into a property manager.

    However, local Vietnamese media are reporting the store will reopen this Friday, July 31, but only take up the ground floor, a compact area which previously housed only a beauty zone and a large part of which has been taken over by Uniqlo.

    Parkson Vietnam began renovating its six-story Ho Chi Minh City store in the Saigon Tourist Plaza building in April of last year. In recent months, a billboard has been placed on the remaining front of part of the building saying it will reopen soon.

    At the time the refurbishment was announced, the company said the aim was to deliver a new shopping experience featuring modern facilities, and a higher standard of service for shoppers. But it appears as if almost all the categories it once sold will be stripped out leaving just a beauty offer.

    Parkson said the new store design concept “will turn the store into an all-in-one destination that offers a combination of shopping, food & beverage, and entertainment” (translated).

    It appears that Parkson has finally admitted defeat in a market where it moved rapidly into neighborhoods with relatively low incomes, selling products that could be obtained cheaper elsewhere, and with archaic customer-service systems. One example was if a customer wanted to buy a set of towels from one concession, they had to walk to the opposite end of the floor and pay for them before being allowed back to browse other items on an adjacent display. Buying multiple items – as customers of a department store often to – required an endless series of return route marches, escorted by store staff, to a cashier’s counter, multiple debit-card transactions and multiple shopping bags – yet all transactions were processed by Parkson itself who would later reimburse concessions for goods purchased.

    In October 2018, Parkson Vietnam announced its fifth store closure, in the affluent expatriate suburb of An Phu. Three more followed before this week’s Haiphong announcement.

  • Masan fails to buy out Vinacafe

    Masan fails to buy out Vinacafe

    Conglomerate Masan has not been able to buy out instant coffee producer Vinacafe Bien Hoa JSC due to unfavorable market conditions. Its subsidiary Masan Beverage Company Limited could only purchase a 0.3 percent stake in the coffee producer via order matching between June 17 and July 16, against a plan to purchase 1.51 percent to fully own the company.

    Masan Beverage owns 98.79 percent of Vinacafe, in which it has been buying stakes since 2011.The most recent transaction occurred in February 2018 when it bought nearly eight million shares for VND1.6 trillion ($69 million) to increase its holding to 98.49 percent. Ticker VCF of Vinacafe on Friday closed at VND208,000 ($9), up 16.8 percent from the start of the year.

    The company, established in 1968 and among the most popular instant coffee brands in Vietnam, targets net revenues and net profits this year of VND3.3 trillion ($142 million) and VND780 billion ($33 million), respectively.

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  • Gold prices hit new peak

    Gold prices hit new peak

    Vietnam’s gold prices continued their ascent Thursday to reach a new peak as global rates rose, driven by the latest escalation in U.S.-China tensions.

    State-owned Saigon Jewelry Company sold its popular SJC gold at VND54.2 million ($2,341) per tael of 37.5 grams (1.2 ounces), up 1.3 percent from Wednesday. The country’s largest jewelry company, DOJI, sold at VND53.7 million ($2,319), up 1.6 percent.

    Global rates went up by 0.3 percent to $1,873.97 on Thursday, the highest in nearly nine years, after the U.S. gave China 72 hours to close its consulate in Houston amid accusations of spying. China has vowed to retaliate.

    The fear of missing out “is driving a flood of speculative money into gold, piling on top of January-June’s heavy physical demand,” Bloomberg quoted Adrian Ash, director of research at BullionVault, as saying.

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  • Vietjet recognized as most impactful Vietnamese brand worldwide

    Vietjet recognized as most impactful Vietnamese brand worldwide

    Vietjet has achieved another major accolade – winning the ‘Vietnam Brand, Global Impact’ award under the PR Newswire Awards 2020 in recognition of its achievement as a trailblazer in expanding its flight network and brand name proven by creative, meaningful and inspiring activities across the globe.

    The prestigious award is judged by a panel comprising international experts and leaders in the communications and public relations industry.

    Speaking at the award ceremony, Vietjet Group’s Vice President Nguyen Thi Thuy Binh said: “With our mission of constantly expanding our flight network across Asia and boosting trade activities globally, Vietjet has been an inspiring ambassador to bring Vietnam to all international friends as well as contribute towards global tourism and economic development. We achieved this thanks to our expanding network with over 200 routes, more than 100 million passengers transported to-date, many large-scale business deals signed with international partners as well as tens of thousands of jobs created in Asia, Europe and America. We are proud that Vietjet, a Vietnamese brand in the aviation industry, has been favored by millions of customers and partners and has truly become the inspiration for the young generation around the world.”

    Vietjet is also one of the few enterprises and only Vietnamese carrier that brings its brand beyond the country’s border to add more value and inspire others in the international market. In Thailand, Vietjet has established Thai Vietjet, leveraging the Vietnamese brand name of Vietjet.  The carrier has extended both the domestic and international flight network with its base in Suvarnabhumi Airport, Thailand’s largest and busiest airport. The airline has transported more than eight million passengers in Thailand and other countries to famous destinations across the Land of Smiles. It has been welcomed and trusted by the country and people of Thailand.

    The 2020 awards is hosted by PR Newswire, a Cision Ltd. Company which is a leading global provider of news distribution and earned media software and services. It has the world’s largest media distribution network, covering over 300,000 media outlets in more than 170 countries and over 40 languages.

  • Vietnam Airlines wants $500 mln government bailout

    Vietnam Airlines wants $500 mln government bailout

    Vietnam Airlines is seeking an urgent VND12 trillion ($518 million) bailout from the government as the coronavirus continues to hit its revenues. It is likely to report a loss of VND13 trillion ($561 million) this year, with revenues falling by half from last year to around VND50 trillion ($2.2 billion), CEO Duong Tri Thanh said at a meeting on Monday.

    It has stopped all regular international flights since April when it operated only four domestic flights a day on average.

    In June the number of passengers rose to 84 percent of the number a year earlier. “Since 1975 there have never been fewer flights in Vietnam’s skies,” he said, referring to the year the Vietnam War ended.

    He expected the domestic market to recover to pre-pandemic levels only by the end of 2021, and the international market a year later.

    Government advisors said at the meeting that other options to rescue the airline include issuing more shares to existing shareholders or allowing investment by sovereign fund State Capital Investment Corporation.

    One of them, Nguyen Dinh Cung, said many other governments have bailed out airlines and Vietnam should do the same.

    Thanh said Vietnam Airlines has taken up the issue of funding with All Nippon Airways, which owns an 8.6 percent stake in it, but since the Japanese carrier is also in trouble it cannot provide loans now.

    In Vietnam, the aviation industry has been among the hardest hit by the coronavirus pandemic. Airlines served 14.6 million passengers in the first six months, down 46 percent year-on-year, according to the General Statistics Office.

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  • Coal imports rise to record levels

    Coal imports rise to record levels

    Vietnam’s coal imports surged to a record high in the first half of the year, showing its rising reliance on coal-fired power plants.

    They rose 53.8 percent year-on-year to 31.57 million tons, according to Vietnam Customs. The imports, mostly from Australia, Indonesia, and Russia, exceeded local production by 25 percent.

    Vietnam turned from a net coal exporter to an importer five years ago as the number of its coal-fired power plants rose to meet the surging power demand from one of the world’s fastest-growing large economies. Its GDP growth last year was 7 percent.

    Though the government has been seeking to reduce the reliance on coal and encourages the construction of solar and wind power plants, coal plants accounted for 36.1 percent of the electricity generated last year, according to the Vietnam Energy Association.

    The Ministry of Industry and Trade has warned of shortages between 2021 and 2025 after the construction of new plants fell behind schedule.

    In a plan it is drafting, the ministry has ruled out building coal-fired power plants after 2030, when it will prioritize renewables and liquefied natural gas.

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  • Central Retail Vietnam revenues surpass US$1.1 billion after rapid expansion

    Central Retail Vietnam revenues surpass US$1.1 billion after rapid expansion

    Thai retail conglomerate Central Group plans to cover 90 percent of Vietnam’s provinces within five years via subsidiary Central Retail.

    Central launched in Vietnam in 2012, initially with fashion merchandising before taking stakes in local electrical appliance chain Nguyen Kim (which it now owns 81.5 percent of) and Lanchi Mart supermarket in 2015.

    As of last month, Central Retail Vietnam operates 35 malls (most anchored by Big C hypermarkets) and 230 stores across 39 out of the nation’s 63 provinces. It is the largest multinational retail company operating in Vietnam with a customer base of about 12 million and revenues of US$1.17 billion last year. The country already accounts for about 20 percent of the parent company’s sales.

    The company’s new Go! brand already encompasses 32 hypermarkets (Hyper Go!) and seven supermarkets (Super Go!). Six more Go! hypermarkets are scheduled for Tra Vinh, Quang Ngai, Buon Ma Thuot, Ben Tre, Ba Ria, and Thai Nguyen, while four more Big C stores will soon be rebranded to Go!”

    Central Retail Vietnam CEO Philippe Jean Broianigo says Central Retail will continue to focus on growth via outlet expansion.

    The company is bullish about its prospects in Vietnam which recorded 3.82-per-cent economic growth in the first quarter of this year despite a four-week shutdown of most retail from late March. No community transmission of Covid-19 has been recorded since April 16.

    The plan includes technology and omnichannel platform developments and achieving business synergies with leading partners such as Grab and GrabMart to launch delivery services for customers.

    “Central Retail will have a full multi-format platform that can seamlessly reach customers via offline and online channels,” said Broianigo.

    Central Retail CEO Yol Phokasub said the company is “constantly seeking expansion” and will continue to invest in Vietnam because it foresees the size of the potential.

    “By staying true to our vision, we will drive the country’s prosperity simultaneously with improving the quality of life of Vietnamese people.”

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  • Massive fake luxury goods ring shut down in Vietnam

    Massive fake luxury goods ring shut down in Vietnam

    Government authorities have raided a warehouse storing thousands of fake luxury goods in Lao Cai City, northern Vietnam, which were being sold online.

    The 10,000sqm warehouse was divided into several areas including rooms for selling fake luxury goods via live-streaming on Facebook. Most of the items are copies of major brands including Gucci, Chanel, Nike and Adidas.

    One of the employees from the warehouse admitted that there were more than 40 people processing orders during the live-streaming and some 1000 packages being shipped each day.

    Although the exact number of fake goods smuggled from China has yet to be confirmed, authorities discovered the ring sold more than 90,000 products each month at a profit of around US$432,000.

    An official said the ring was professionally organised and took advantage of online platforms for both wholesale and retail as online shopping has become increasingly popular in Vietnam.

  • Moc Chau Milk wants to allow 100 percent foreign ownership

    Moc Chau Milk wants to allow 100 percent foreign ownership

    Moc Chau Milk, a subsidiary of Vietnam’s biggest dairy company Vinamilk, wants to increase its foreign ownership cap to 100 percent in order to raise funds.

    It seeks to do this by removing some business registries in which the government restricts 100 percent foreign ownership, such as wholesale trade of fertilizer and pesticides.

    A company statement said it is seeking shareholders’ approval for plans to raise funds for expansion. It plans to issue more shares to existing shareholders this year to raise 1.2 trillion ($52 million), which will be used to invest in a farm with a capacity of 4,000 cows, upgrade the existing farm and build a new factory.

    It is also eying a listing on Vietnam’s main bourse, the Ho Chi Minh City Stock Exchange, within nine months after it receives shareholders’ approval.

    Moc Chau Milk became a subsidiary of dairy giant Vinamilk in December last year. At that time, Vinamilk had more than half the nation’s dairy market share, and Moc Chau Milk had 9 percent.

    Mai Kieu Lieu, CEO of Vinamilk and chairwoman of Moc Chau Milk, had said earlier that Vinamilk has a strong distribution network in the south that will help Moc Chau Milk, which is based in the northern province of Son La, to expand nationwide.

    Vietnam’s dairy market value rose 8.9 percent to VND121 trillion ($5.2 billion) last year, according to market research firm Euromonitor.

  • Vingroup produces first 5G smartphones

    Vingroup produces first 5G smartphones

    VinSmart, a subsidiary of Vietnam’s largest listed company Vingroup, has produced its first 5G smartphones in cooperation with the U.S.’s Qualcomm.

    The Vsmart Aris 5G model is equipped with a Snapdragon 765G 5G module platform and a quantum security chip, the company stated, adding it also features a Super Amoled 6.39″ display, 8GB RAM and a 4,000 mAh battery.

    Nguyen Phi Tuyen, director of the measurement center of the Department of Telecommunications under the Ministry of Information and Communications, said the unit has repeatedly tested Vsmart’s Aris 5G, showing the network speed was eight times higher than 4G.

    VinSmart has not yet announced the official price of the Aris 5G, nor when it would hit the market, or how many units it intended to produce.

    No 5G smartphone has been manufactured or officially distributed in Vietnam so far, instead, they are hand-carried on overseas flights.

    VinSmart’s move came as local telecom firms compete in the 5G race. Telecom giant Viettel for the first time broadcast from its network of 5G base transceiver stations in Ho Chi Minh City last September while competitor VNPT has announced similar plans.

    VinSmart, which launched its first products at the end of 2018, is currently focusing on the low-end segment of the market, with 12 Vsmart phones all priced at below VND5 million ($212).

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  • Bamboo Airways banks on Con Dao Island flights

    Bamboo Airways banks on Con Dao Island flights

    Bamboo Airways plans to launch regular flights to Con Dao Island, a tourism hotspot in southern Ba Ria-Vung Tau Province, starting August 1.

    The airline is waiting for Civil Aviation Authority of Vietnam (CAAV) approval to fly to the 16-island archipelago, according to a company spokesperson.

    It plans to operate flights from the northern and central region using four twin-engine Embraer jets holding up to 120 seats.

    Currently, Vietnam Air Services Company (VASCO), a subsidiary of Vietnam Airlines, is the only airline operating regular flights to the islands from Ho Chi Minh City and the southern city of Can Tho using the ATR 72 short-haul aircraft that could carry up to 78 passengers.

    Con Dao Airport has a 3C classification, meaning it can only receive ATR 72 aircraft or equivalent. It functions for 12 hours a day and closes at night since it has no runway lighting system.

    Property developer FLC, the parent company of Bamboo Airways, earlier proposed to invest in a lighting system so the airport could operate at night.

    A 4C upgrade is planned for the airport by 2030 so that it could receive Airbus A319 jets carrying up to 156 passengers.

    Budget airline Vietjet had made a similar request in 2018 to operate flights to Con Dao with the same aircraft model but is still awaiting approval.

    Ba Ria-Vung Tau Province received 15.5 million tourists in 2019, up 15.2 percent year-on-year. A total of 500,000 were foreigners.

  • Vietnam gold prices climb to new peak

    Vietnam gold prices climb to new peak

    Gold prices have risen to new highs in Vietnam as they track recent rises in global prices triggered by the coronavirus pandemic. SJC gold on Tuesday rose to VND50.3 million ($2,170) per tael to surge past the previous record of VND49.5 million ($2,137) in 2011, when global prices soared to historic highs.

    Gold prices held steady near an eight-year high on Tuesday as investors weighed a spike in Covid-19 cases around the world against a survey showing a rebound in U.S. services industry activity and expectations of a revival in China’s economy.

    Spot gold was almost unchanged at $1,784.06 per ounce by 0453 GMT, just $4.90 shy of a near eight-year high hit last week.

    Phan Dung Khanh, head of the investment advisory at Maybank Kim Eng Vietnam, said falling deposit interest rates are increasing demand for gold.

    The four state-owned lenders, Vietcombank, BIDV, Vietinbank, and Agribank, recently lowered their rates on 12-month deposits from 6.5 to 6 percent. Private banks have cut them by 0.4-0.8 percentage points.

    Experts also pointed to the falling stock market, which has lost nearly 11 percent this year, for turning gold into a safe haven.

    Tran Thanh Hai, chairman of the Vietnam Gold Investment and Trading Corporation, forecast gold prices to remain volatile for the next three months and start falling at the end of October before the U.S. presidential elections.

    Other analysts expected prices to rise further due to the uncertainties caused by the pandemic and geopolitical tensions.

    Goldman Sachs last month forecast that gold price could reach $1,800 in three months and $2,000 in a year.

    “Gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates,” it said in a note.

    Vietnam’s gold bar and coin demand in the first quarter fell 8 percent year-on-year to 12.3 tonnes, according to the World Gold Council.

  • Vietnam’s rapid retail recovery melts Covid virus gloom

    Vietnam’s rapid retail recovery melts Covid virus gloom

    Vietnam retail and service revenues surged by 5.3 percent in June over the same month last year – and by 6.2 percent over May.

    The figures are extraordinary given the advent of the Covid-19 pandemic on retailers and services during the first half of this year, with the country’s stores effectively shut down from late March to late April, and tourists banned from mid-March.

    Year to date, Vietnam retail and service revenues have dropped by just 0.8 percent compared to last year, generating US$103 billion despite the month-long shutdown.

    The figures were released by the General Statistics Office, and show retail revenue reached $18.67 billion last month. Vietnam traditionally releases figures for retail and service revenue within a couple of days of the end of the month covered, faster than most other countries, which tend to take a month or more to calculate the data.

    Sales of consumer goods accounted for 79.6 percent of retail revenue, increasing 3.4 percent year on year. Growth sectors include fresh-food products and home appliances. Sales of apparel and educational products fell by 1.2 percent and 6 percent respectively.

    Vietnam’s retail industry has seen a significant recovery since Covid-19 restrictions were eased in May. Most businesses in the country, except tourism, have resumed and some of them even expanded. Since April’s reopening, Uniqlo has opened three new stores in the country, and fellow Japanese retailer Muji is set to open its first store within weeks.

    One source said that a factor in June’s growth in the absence of tourists is that unlike countries like Thailand, Malaysia and Singapore, tourists to Vietnam don’t purchase a lot of higher-end luxury goods.

    “So the hit to retail from the decline in tourism would be a lot softer.”

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