Retail News CRM

Tag: Vietnam

  • Vietnam Airlines wants caps removed on domestic ticket prices

    Vietnam Airlines wants caps removed on domestic ticket prices

    National flag carrier Vietnam Airlines has proposed that price caps on domestic air tickets be removed to allow carriers more pricing flexibility.

    The current price ceiling makes it difficult for airlines to diversify their prices, increase profits during certain periods of time like peak seasons, and in turn, lower prices on some routes, Le Hong Ha, Deputy General Director of Vietnam Airlines, said at a tourism forum on Monday.

    Vietnam should abolish the domestic price ceiling, and allow market forces to decide prices. “The aviation market is already operating like a free market, so airlines should be allowed to freely adjust prices based on supply and demand,” Ha said.

    The Civil Aviation Authority of Vietnam (CAAV) supports the proposal, as Vietnam is one of the few countries in the world still have a price cap, said Vo Huy Cuong, deputy head of the authority.

    The CAAV has proposed the removal of the price cap every time amendments or supplements are made to the Civil Aviation Law, but these were not approved because the National Assembly felt it was necessary to protect the interest of many classes of civilians traveling by air, he said.

    If this regulation is not amended, airlines will focus on operating and developing international routes rather than domestic ones, he added.

    In mid-2018, many airlines requested the government to raise domestic price caps because they were losing money on many routes after cost of fuel and labor increased, but this was not approved either.

    Currently, air tickets on routes under 500 km operated to promote socio-economic development have a maximum price of VND1.6 million ($69), ordinary routes under 500 km VND2.2 million ($95), while the highest ceiling is VND3.75 million ($162) for routes of 1,280 km or above.

    According to the government portal, the air distance between the northernmost point of Vietnam to the southernmost point is 1,650 km.

    Local airlines served 50.3 million passengers from January to November, up 10.7 percent year-on-year, according to the General Statistics Office.

    Lees ook:

    Lees ook:

  • Aeon opens second mall in Hanoi, Vietnam

    Aeon opens second mall in Hanoi, Vietnam

    Located in Hanoi’s southwestern district of Ha Dong, the three-story mall occupies a 22,700sqm area, featuring 221 retail tenants covering food, fashion, household goods and entertainment. The new mall brings more than 40 brands new to the city including Koi tea, The, Dune London, Idoome, Jack & Jones, Kipling and Typo.

    Before the opening ceremony, the general director of Aeon Vietnam, Nishitohge Yasuo, said the Vietnam retail market is changing and becoming increasingly competitive. He said Aeon Mall wants to bring new experiences to customers, not only for shopping but also for fun, entertainment and family connection.

    A spokesperson for the Japanese Embassy in Vietnam said he hoped Ha Dong Aeon Mall will become a place to provide information about Japanese culture. “And I hope more people in Hanoi come to Aeon Mall Ha Dong to be able to feel a very ‘Japanese’ atmosphere in Hanoi’s heart”.

    The first Aeon mall in Hanoi was opened in 2015. The Japanese group has expanded its network with three others in Binh Duong province and Ho Chi Minh City. Another Aeon shopping mall is under construction in the port city of Hai Phong.

    Lees ook:

  • American diner chain Chili’s makes Vietnam debut

    American diner chain Chili’s makes Vietnam debut

    American diner chain Chili’s Grill & Bar has opened its first Vietnam store in Saigon, looking to tap the country’s growing middle-class market.

    The restaurant, located in SV VivoCity mall in District 7, was launched in Vietnam as a part of the Golden Gate Restaurant Group, an operator of over 20 restaurant chains in the country.

    David Weston, a representative of Chili’s, said that Vietnam was an important part of its business in Asia, where over 60 Chili’s outlets have been opened in eight countries.

    Ha Thuc Tu, CEO of Golden Gate Red Hots, a unit of Golden Gate Restaurant Group, said that the chain targets middle-income customers, especially office workers and families.

    These customers have high standard demands in food and entertainment and prefer a multi-functional location that suits the needs of all family members, he added.

    Chili’s, operated by Texas-based hospitality company Brinker International, was founded in 1975, and specializes in Texas and Mexican food, with steaks, ribs and burgers among its signature dish.

    It has over 1,670 restaurants and serves over one million customers a day in 29 countries and territories.

    Market research firm Euromonitor said an increasing number of international chains are entering Vietnam, seeing it as a lucrative market.

    Popular American brands such as McDonald’s, KFC and Starbucks have already established their presence in the country.

    Vietnam had around 540,000 food and beverage businesses as of last year, 80 percent of the street vendors, according to Dcorp R- Keeper, a global company that provides technological solutions to food and beverage businesses.

    Lees ook:

    Lees ook:

  • Vietnam second among ASEAN members in attracting fintech funding

    Vietnam second among ASEAN members in attracting fintech funding

    Vietnam’s fintech firms secured $410 million, or 36 percent of the global capital pouring into Southeast Asia between January and September, behind Singapore.

    The country’s share of regional venture capital funding devoted to fintech soared from just 0.4 percent in 2018, according to a report prepared by the United Overseas Bank (UOB), PwC and the Singapore Fintech Association (SFA).

    Singapore remained the top destination for regional fintech investment, with 51 percent, down from 53 percent in 2018, with Indonesia in third place with 12 percent, down from 37 percent last year.

    ASEAN Fintech Funding 2019PercentageSingaporeVietnamIndonesiaOthersSource: Tracxn

    By the end of the third quarter this year, ASEAN had received $1.14 billion in funding for fintech firms, up sharply from $35 million in 2014, the report said.

    The surge in investments in Vietnam this year is attributable to two large deals, both in digital payments. In July, digital payment firm VNpay received $300 million in investment from Japanese multinational conglomerate SoftBank and Singaporean sovereign wealth fund GIC.

    And in January, e-payment app MOMO Pay landed $100 million from investors led by American private equity firm Warburg Pincus in its Series C funding round. The two deals accounted for 98 percent of Vietnam’s total fintech funding in the first nine months.

    In terms of the number of funding deals in 2019, Vietnam came third in ASEAN at 8 percent of total deals, up from 2 percent in 2018, behind Singapore and Indonesia with 51 percent and 28 percent respectively.

  • A third of Southeast Asian e-commerce traffic happens in Vietnam

    A third of Southeast Asian e-commerce traffic happens in Vietnam

    Vietnam accounted for 30.9 percent of e-commerce web traffic in Southeast Asia in Q3, second only to Indonesia, a report says.

    Compared to the second quarter, e-commerce web traffic in Vietnam has risen by 5.2 percentage points, the highest growth in the six countries studied, while that of top market Indonesia fell 10.6 percentage points, according to Malaysia-based iPrice Group.

    Both foreign and local companies are seeking to expand in Vietnam, but domestic firms account for 72 percent of the traffic, while that of international players, mostly Singapore-based Shopee and Lazada, make up the remaining 28 percent, according to “The Map of Southeast Asian E-Commerce Q3 2019” report.

    This makes Vietnam second only to Singapore in the share of local players in web traffic, far exceeding Thailand, Malaysia and the Philippines, where foreign companies dominate, accounting for at least 78 percent.

    Although Shopee still topped the chart in Q3 with 34.6 million visits in Vietnam, home-grown player Sendo for the first time climbed to the second place with 30.9 million visits, up 10 percent from Q2.

    Mobile World climbed two places to third place with 29.3 million visits, while both Tiki and Lazada fell to the fourth and fifth place respectively.

    Vietnam’s internet economy will reach a value of $12 billion this year, with an annual growth rate of 38 percent since 2015 and is expected to surge to $43 billion by 2025, according to the “e-Conomy Southeast Asia report 2019” by Google, Temasek – a holding company owned by Singapore’s government, and U.S.-based global management consultancy Bain.   A

    Lees ook:

    Lees ook:

    Lees ook:

  • Vietnam struggles to meet car localization target

    Vietnam struggles to meet car localization target

    Vietnam’s 20-year auto industry is still far away from meeting its localization target to better compete with regional competitors.

    Lees ook:

    Lees ook:

  • Maiden Uniqlo store opens in Ho Chi Minh City

    Maiden Uniqlo store opens in Ho Chi Minh City

    The first Uniqlo Vietnam store opened its doors today, marking the Japanese fast-fashion brand’s sixth market in Southeast Asia.

    Setting its foot in one of the fastest-growing economies in the region, parent Fast Retailing hopes to strengthen its presence in both the country and the region at the same time as Vietnam becomes a manufacturing hub in the face of the ongoing US-China trade war.

    “I think Vietnam has massive potential and will be one of the biggest consumer markets in the world,” said Tadashi Yanai, chairman and CEO of Fast Retailing prior to the opening.

    Yanai described Vietnam as the key market in the region and an important part of the group’s development strategy.

    He said Uniqlo is now producing US$3 billion worth of products in Vietnam annually and plans to increase that even further. However, this does not mean that Vietnamese consumers will experience lower prices for Uniqlo products.

    “We implement a medium- and long-term pricing strategy to ensure revenue and profit for each store… We want to compete with high quality, sustainable products at reasonable prices, not [by] discounting,” said Osamu Ikezoe, Co-CEO of Uniqlo Vietnam.

    Uniqlo is already planning its second store in the country, which will be located in the capital city of Hanoi.

    “We are not talking about 100 stores in Vietnam,” said Yanai. “Much more.”

    The company says it is focusing on physical stores, with no plans to deploy an e-commerce sales channel as yet.

    Located opposite stores of rival fast-fashion chains H&M and Zara, Uniqlo Vietnam’s first store in Ho Chi Minh City is also its largest outlet in Southeast Asia to date, with a gross floor area of 3107sqm across three storeys.

    Lees ook:

    Lees ook:

  • Viec.Co scoops Vietnam Startup 2019 title

    Viec.Co scoops Vietnam Startup 2019 title

    Viec.Co, a platform connecting employers and freelancers, scored the highest in a startup competition organized by VnExpress, Vietnam’s most-read online newspaper.

    Viec.Co surpassed other contestants in the top 5 to be named the winner of the Vietnam Startup 2019, which concluded in the final Gala on December 2 in Ho Chi Minh City.

    Themed “Unicorn to be”, the final gathered the top 5, including Viec.Co, TripHunter, Liberzy, Tez and Sphacy for a debate in front of judges. Viec.Co was chosen as winner, based on criteria including leadership ability, uniqueness, new technology, product feasibility, global reach and community contribution

    Specialized in helping freelance workers access employment opportunities, Viec.Co provides a one-touch experience via a human resources platform. It is also a tool for employers to evaluate and recruit candidates at the lowest cost and simple procedure.

    Viec.Co has further applied the API (Application Programming Interface) to the Momo ecosystem, Vietnam’s mobile, e-wallet and payment application, to provide simple and convenient payment solutions.

    After one year of operation, the startup grew 30 percent per month, now boasting over 40,000 registered users, 10,000 employable freelancers, and 30 customers.

    Tez, the online library startup, is an educational platform that provides a comprehensive system of online lectures and materials for teachers and learners at all levels. It aims to create a “social network” that connects students, teachers, and the community to share knowledge more easily, conveniently and broadly. Of the top 5 in Vietnam Startup 2019, TripHunter is a tool to automatically build travel schedules, based on web and application platforms. The tool enables users to manually adjust their own schedules, and compare prices between online travel agents (OTAs), booking and managing all services such as airline ticketing and hotel reservations all via one application.

    Tez’s business model consists of two channels, which include selling user accounts and advertising revenue. Accordingly, 85 percent of Tez’s revenue comes from users and the rest from advertising services for English schools, institutes, and organizations.

    Tez has collated 83,000 lectures, 115,000 documents, 175,000 registered members over 10 months of operation. It has a turnover of VND8.3 billion ($358,000) and more than 18 million website and app visits.

    Operating similarly to the Grab ride-hailing platform and food ordering apps, Sphacy developed a pharmaceutical ordering application. It allows users to buy drugs anytime, anywhere via ordering – delivery using a mobile app.

    Sphacy directly connects customers with pharmaceutical suppliers, including wholesalers and retailers, along with quality control regulations. “It provides a solution to modern pharmaceutical problems, such as unknown origin, incorrect dosage, high level of antibiotic resistance,” said Sphacy’s CEO and founder Vu Van Thanh.

    With Liberzy, users can design trips according to their needs, with itineraries and notes visually displayed on the map. Each user has a personal page to share destinations, experiences and connect with others. Libezy also connects with suppliers to recommend suitable services such as airline tickets, hotels and restaurants based on a user’s schedule. Also specialized in tourism, Liberzy is a platform that helps create schedules and provides useful information about a specific trip, gathering together people with similar travel interests. “Liberzy stands for Liberty and Easy, denoting traveling with freedom and ease. In addition, the ‘S’ of ‘Easy’ has been changed to ‘Z’ to represent a travel platform for Generation Z, who love self-sufficient travel using modern technology,” Truong Duc Thang, Liberzy’s CEO and founder explained.

    At Vietnam Startup Gala 2019, Thinsulin, a startup that provides blood sugar lowering and weight loss methods, was named as the startup with the most audience votes. As a part of the Gala, a series of “Speed Dating” activities opened opportunities for Vietnamese startups to meet and present their ideas and projects to investors.

    Vietnam Startup 2019 is a voting event, annually organized by VnExpress. It underwent eight months of registration, online submissions, training and voting to find the top 25 and top 15 best startups in 2019.

    The five judges are well-known investors or mentors with great experience of the local start-up community, including Truong Gia Binh, chairman of FPT Corporation; Pham Phu Ngoc Trai, founder and chairman of Global Integration Business Consultants (GIBC); Tran Ngoc Thai Son, founder and chairman of e-commerce firm Tiki; Nguyen Lan Anh, CEO of Endeavor Vietnam; and Bui Kim Thuy, country representative of the US-ASEAN Business Council in Vietnam (USABC).

    The event is sponsored by Tiki (diamond sponsor), Grab (gold sponsor), IMAP (silver sponsor), Sun*Startup and LG (copper sponsors). AIM and Zone Startups Vietnam also act as partners.

    Lees ook:

    Lees ook:

  • Bamboo Airways expects profits to take off in 2020

    Bamboo Airways expects profits to take off in 2020

    Private budget airline Bamboo Airways says it expects profits in the first quarter next year as its fleet expands to 30 aircraft.

    The carrier’s deputy chairman Dang Tat Thang said at a press conference Tuesday that it was operating 20 aircraft with over 100 trips a day, but an airline typically needs to operate at least 25-30 jets.

    “We hope that by having 30 aircraft in the first quarter next year we will record profits. By expanding our fleet to 30, we can stabilize operations and launch more routes.”

    The airline had recorded cumulative losses of VND329 billion ($14.2 million) at the end of April, three months after its first flight, according to the Ministry of Finance.

    Bamboo Airways chairman Trinh Van Quyet explained the losses at a shareholders’ meeting in June, saying the airline had to pay salaries for a team big enough to operate 30 aircraft, while the fleet was just 10 then.

    Quyet also expects profit from its direct U.S. flights. The airline is set to receive its first wide-body Boeing 787-9 Dreamliner this month, which will be used for direct flights to the U.S. in late 2020 or early 2021.

    Bamboo Airways is in the process of selecting an U.S. airline partner for its direct route, Thang said Tuesday. It is also mulling direct routes to Germany and the Czech Republic.

    The airline plans to launch an initial public offering next year to raise around $100 million. It is eyeing investors from Japan, the U.S., and Europe, he added.

    Foreign investors can own up to 34 percent of a Vietnamese airline, according to a government decree set to take effect January 1, 2020.

    The entrance of Bamboo Airways earlier this year has eaten into the market share of national flag carrier Vietnam Airlines and budget carrier Vietjet.

  • Central bank cuts compulsory reserve interest rates

    Central bank cuts compulsory reserve interest rates

    The State Bank of Vietnam (SBV) announced Monday it has lowered the interest rates on compulsory reserves at banks by 0.4 percentage points.

    The new compulsory reserve interest rate has been reduced to 0.8 percent per annum for dong deposits, down from 1.2 percent prior. This change came into effect on Sunday.

    A compulsory reserve is a minimum amount calculated on the ratio of total deposits that credit institutions must deposit with the SBV to ensure solvency and reduce risks in savings activities. In Vietnam, this ratio is 3 percent.

    The SBV will continue not paying any interest on dong deposits from banks that exceed the minimum 3 percent requirement.

    But all deposits by the Vietnam Development Bank (VDB) and Vietnam Bank for Social Policies (VBSP), both state-owned banks; People’s Credit Funds and microfinance institutions will receive the 0.8 percent interest.

    Conversely, for foreign currency deposits with the SBV, no interest is paid on minimum reserves, but anything in excess is now subject to 0.05 percent interest per annum, which has been slashed from 0.5 percent, according to the central bank statement.

    The reduction of compulsory reserve interest rates to 0.8 per year will not have a significant impact on the profits of banks by the end of the year because the required reserve ratio is currently at a low 3 percent, Dr. Can Van Luc, chief economist at BIDV, Vietnam’s biggest state-owned bank, told the local press.

    Banks also do not maintain reserves at the SBV higher than the minimum requirement, as it would be a waste of resources because investing or lending this money would bring more returns, he added.

    The reduction in compulsory reserve interest rates is most likely a move by the SBV to reduce the burden on the state budget because interest payments are taken from there. “But like the impact on profits of commercial banks, the savings will not amount to much,” Dr. Luc said.

    Last month, the SBV also lowered the interest rate cap on 6-month dong deposits from 5.5 percent to 5 percent, prompting many banks in the sector to cut deposit rates across various terms.

  • Vietnam Airlines asked to spell out details of plan to buy 50 jets

    Vietnam Airlines asked to spell out details of plan to buy 50 jets

    The Ministry of Transport has asked Vietnam Airlines for details about its plan to acquire 50 narrow-body aircraft by 2025.

    The national flag wants to buy 50 Airbus A3210/321 or Boeing 737 MAX 8/9/10 aircraft in 2021-2025 at a cost of VND88.13 trillion ($3.83 billion).

    It seeks to replace its 26 existing aircraft and expand the fleet by 24, with four or five airplanes delivered every year.

    But the ministry said the airline needs to furnish information about the routes it plans to use the new aircraft on and detailed plans about hiring more staff to operate them.

    It warned against the purchase of Boeing 737 MAX 8 saying it is still unclear whether the grounding of the model would be reversed.

    The carrier also needs to consider that technical issues have been reported in some Pratt Whitney engines used in Airbus A320/321 NEO by some airlines, the ministry said.

    Vietnam’s surging travel demand has caused airlines to expand their fleets. Bamboo Airways has inked a deal with Airbus to buy 50 aircraft, while Vietjet last month signed a $140 million loan with foreign banks to finance its Airbus order for 20 aircraft.

    Last year the country’s 21 state-run airports handled 103.5 million passengers, according to the Airports Corporation of Vietnam, and the number is set to rise to 112 million this year.

  • Vietnam needs more qualified workers

    Vietnam needs more qualified workers

    Vietnam should improve its workforce quality and create better jobs if it’s to escape the middle-income trap, experts say.

    As of 2018, only 12 percent of jobs in Vietnam were high-skilled, while 54 percent were medium-skilled jobs and the remaining 34 percent were low skilled ones, Valentina Barcucci, an economist with the International Labour Organization (ILO), said at the Vietnam Labour Forum 2019 on Wednesday.

    The percentage of high-skilled jobs was low compared to the global average for upper-middle-income countries, who have 20 percent of their jobs in this category, she said.

    “Vietnam does not need more jobs but needs better jobs. Although its unemployment rate is very low, job quality is still a challenge,” Barcucci said.

    The unemployment rate stood at 1.99 percent in the first nine months of the year, according to the General Statistics Office.

    With the rise of Industry 4.0, a large amount of low-quality, low-cost labor in Vietnam would stop being an advantage. As such, developing high-quality labor is an inevitable requirement to ensure Vietnam can develop strongly, said Vo Tan Thanh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI).

    “To become a high-middle-income country by 2030, Vietnam needs social improvements in parallel with economic development. Fortunately, Vietnam is taking the right steps such as improving the skills for the workforce, expanding social security coverage, and modernizing labor institutions,” said Chang-Hee Lee, ILO Vietnam Director.

    The Ministry of Labour, Invalids and Social Affairs estimates Vietnam’s current workforce at 56 million people.

  • Making cars costs more in Vietnam than other ASEAN countries

    Making cars costs more in Vietnam than other ASEAN countries

    Cars assembled and produced in Vietnam cost 20 percent more than in Thailand and Indonesia because a large number of parts have to be imported.

    Do Thu Hoang, Vice President of Toyota Vietnam, said at a forum Thursday that suppliers in the country are capable of making simple parts such as seats and wires, but for other parts like fuel caps, costs in Vietnam are 2-3 times higher than in Thailand and Indonesia.

    The country has to import about $2 billion worth of car parts each year, mostly components like the breaking and steering system, from countries like Japan, China and South Korea, according to a report submitted at the forum by the Ministry of Industry and Trade.

    Pham Tuan Anh, deputy head of the ministry’s industry department, said that the large portion of imports puts the localization rate of cars with nine seats or less at 7-10 percent, even though the country had targeted a 60 percent rate by 2010.

    Anh said that the reason for the imports is the country’s small market size, making suppliers unable to produce large volumes to lower prices.

    Hoang proposed that the government provides financial support for suppliers to upgrade their machinery and equipment to produce more advanced parts.

    “Without support, local car producers will continue to rely on imports, and local suppliers will struggle to grow.”

    Pham Van Tai, CEO of Truong Hai Auto (THACO), suggested that the country should scrap imports tax on car parts that local producers are not capable of producing.

    Vietnam began developing its car industry in 1991, 30 years later than other countries in the region.

    The sales of imported cars in the first 10 months surged 2.2 times to 106,100 units, while that of locally-assembled ones fell 12 percent to 153,100, according to the Vietnam Automobile Manufacturers Association (VAMA).

  • Pork prices push November inflation to 9-year high

    Pork prices push November inflation to 9-year high

    Rising prices of pork and processed meat raised the November consumer price index (CPI) a record 0.96 percent over the previous month.

    Dwindling supply of pork following the African swine flu outbreak in Vietnam saw prices of pork and other processed meat products to soar in November, leading to the biggest CPI increase in 9 years, according to the latest report by the General Statistics Office (GSO).

    However, over the last 11 months, the CPI had only risen by 2.57 year-on-year, the lowest increase in the last three years. The CPI in November, compared to December-end 2018, had increased by 3.78 percent.

    Speaking to VnExpress, merchants in Ho Chi Minh City said that prices of pork substitutes such as beef and seafood rose as customers made the switch, coupled with heightened demand as the New Year approaches.

    Vietnam has had to cull 5.9 million pigs infected with African swine fever since the beginning of the year, equivalent to 337,000 tons of pork, according to Phung Duc Tien, Deputy Minister of Agriculture and Rural Development.

    This has resulted in pork prices rising by 19 percent since last November and could rise by a further 10-15 percent by the end of this year with an expected shortage of 200,000 tons, according to the GSO.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Ministry proposes major upgrade to airport in central Vietnam

    Ministry proposes major upgrade to airport in central Vietnam

    The Dong Hoi Airport’s capacity should be increased four-fold to 2 million passengers a year, the Transport Ministry says. Le Dinh Tho, Deputy Minister of Transport, said at a meeting Thursday, adding that the airport’s current capacity of 500,000 was too low, given Quang Binh Province’s strong tourism potentials.

    The domestic Dong Hoi Airport, rebuilt in 2008, is located on a 173-hectare plot. Last year, it exceeded its capacity by 200,000 passengers, according to official figures.

    The Airports Corporation of Vietnam (ACV) had proposed to Quang Binh authorities in July that the airport be upgraded at a cost of VND2 trillion ($86.3 million), making it capable of receiving international flights and up to 3 million passengers a year.

    Quang Binh is home to Son Doong Cave, the world’s largest, and other spectacular cave systems. The province welcomed over 4 million visitors in the first nine months, up 28 percent year-on-year.

    ACV last year proposed a VND56.7 trillion ($2.4 billion) upgrade to 16 of the 21 state-owned airports in the country to meet rising air travel demand.

    Lees ook:

    Lees ook: