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Tag: Vietnam

  • Cars to enter airports fee free for 10-15 minutes

    Cars to enter airports fee free for 10-15 minutes

    From 2020, Vietnam’s airports will allow cars to wait 10-15 minutes while dropping or picking up passengers. Each airport will have its specific no-toll timeframe, which will be decided by the government, said Vu The Phiet, General Director of the Airports Corporation of Vietnam (ACV), which manages 21 civilian airports in the country.

    ACV is currently upgrading systems to collect fees digitally, including the function to record the time cars enter and leave the airports.

    For instance, cars entering and leaving Tan Son Nhat or Noi Bai airports will have their license plates photographed while entering. When leaving, if the cars are still within their allowed timeframe, the barrier at the fee collection point will lift on its own, otherwise the cars will have to pay to exit, Phiet said.

    Currently, cars are charged VND15,000 ($0.65) for the first 60 minutes after they enter the airports, and VND5,000 ($0.22) for every 30 minutes thereafter.

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  • Foreign brands eager to enter booming fashion market

    Foreign brands eager to enter booming fashion market

    Major international brands are setting up shop in Vietnam and expanding quickly to tap a rapidly growing fashion market.  Last week Japanese casual wear retailer Uniqlo announced it would open its first store in the country in Ho Chi Minh City’s District 1 on December 6. The 3,000-square-meter store would be one of its biggest in Southeast Asia, the firm said.

    Opening stores in Vietnam is critical to Uniqlo’s expansion plans in Southeast Asia. As of last year it had 213 stores in the region, and plans to have 400 by 2022, Tadashi Yanai, CEO of Fast Retailing Group, which owns a 75 percent stake in Uniqlo, said.

    It is the latest in an expanding list of around 200 foreign fashion brands that have entered Vietnam, including Zara, H&M, Giordano, Mango, Topshop, Gap, and Old Navy.

    Vietnam, with its young demographic, growing incomes and 95 million population, is considered a hugely promising market. Foreign brands are attracted to its 15-20 percent annual growth, according to the chairman of the Vietnam Retailers Association, Dinh Thi My Loan.

    Vietnamese consumers are also shifting towards prioritizing items like clothes and fashion. In a report released last year market research firm Nielsen said clothes were Vietnamese consumers’ third spending priority after food and saving.

    The survey also found that Vietnam ranked third globally in the number of people fond of branded goods after only China and India.

    Laura McCullough, a senior Nielsen executive, said: “The change in the level of wealth of Vietnamese people enables them to buy international standard products and services. More and more Vietnamese are choosing to buy luxury goods or exclusive products.”

    Thanks to the Vietnamese fondness for fast fashion, Zara’s revenues in Vietnam doubled to VND1.7 trillion ($73.27 million) last year, four times its Thailand sales, the company said in its latest financial report.

    In 2018, H&M announced revenues of over VND763 billion ($32.89 million), nearly four times higher than what it had collected in 2017 when it opened its first store in Vietnam. While British brand Topshop has filed for bankruptcy and closed all of its stores in the U.S., the former maintains four stores in Vietnam.

    Vietnamese retail group Seedcom estimates the fashion industry to be worth $5 billion in 2018 and to reach $7 billion by 2023.

    German market analysis firm Statistics Portal expects 22.5 percent annual growth in 2017-22 while Nielsen forecasts 15-20 percent growth.

    Foreigners buying up local units

    Foreign investors have also been trying to enter with a series of acquisitions in the last few years. In September Japanese fashion company Stripe International acquired Global Fashion, which owns women’s footwear brand Vascara, for an undisclosed sum.

    Vascara, launched in 2007, has 134 stores nationwide. Stripe first came to Vietnam in 2017, and earlier acquired another fashion brand, NEM, which has 90 stores.

    In February Japanese buyout firm Advantage Partners acquired Elise Fashion, one of Vietnam’s major women’s fashion chains, again for an undisclosed sum.

    Elise, founded in 2011, targets women in the 20-45 age range and has 95 stores across Vietnam, with operations vertically integrated from design and manufacturing to customer-facing sales and retail.

    With financing from Stripe, Elise hopes to double the number of outlets and quadruple revenues in the next four years.

    According to Le Tien Truong, general director of the Vietnam National Textile and Garment Group (Vinatex), foreign players have bigger strengths in finance and human resources, and modern management methods.However, industry insiders are worried that the rapid expansion of major global fashion brands could overpower local brands such as Viettien, Canifa, Ninomaxx, and YaMe.

    Besides, many local businesses still do subcontracting work for foreign brands, the lowest level in the value scale in the fashion industry, he told the media.

    Robert Tran, CEO of U.S.-based RBNC Consulting, said: “The textile and apparel industry is too focused on outsourcing, big orders, competing for exports, and collecting wages, and is not investing in fashion design. So the term ‘fashion technology’ seems to have been forgotten in Vietnam.”

    “Asian countries like Japan, South Korea, Singapore, and Thailand all have domestic fashion brands, while it is difficult for international visitors to come to Vietnam to find a true Vietnamese fashion brand other than in traditional products such as “ao dai”, which can be purchased at medium prices.”

    Truong warned that if Vietnamese fashion houses do not change their mindset, consolidate their brands and create their own designs, they would forever be outsourcers for other countries.

    Seedcom founder and CEO Dinh Anh Huan said to remain competitive, Vietnamese retailers should use technology to understand consumer behavior, focus on digital marketing and develop online shopping channels to bring a better shopping experience to customers.

    The Vietnam Retailers Association (VRA) estimates there were 200 foreign brands in Vietnam by 2017-end, accounting for roughly 60 percent of the market.

    Zara, H&M and Mango are the three most recognised brands in Vietnam, followed by Gap, Forever 21 and Giordano, according to a survey done by market research firm Q&Me in September.

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  • Feature phones remain popular in Vietnam

    Feature phones remain popular in Vietnam

    Feature phones still account for nearly four out of every 10 mobile phones sold in Vietnam. Around 1.7 million phones were sold in September, of which over 600,000, or 37 percent, were feature phones, according to market research institute GfK.

    While there have been predictions that feature phones will lose popularity with the advent of cheap smartphones, their sales remain steady at 620,000-700,000 a month, the institute said.

    In terms of market share, feature phones even saw a slight increase from 34 percent in July to 36 percent in August.

    Nokia remains the leading brand in this segment with a market share of 55-57 percent in recent months, with the Finnish brand accounting for over half of the 20 top selling feature phones in September.

    The second most popular feature phone was local brand Masstel with a market share of 14-15 percent. Other brands sold include Itel, Mobell, Fmobile and Coolpad each with a market share of below 10 percent.

    Nguyen Duy, an employee at a mobile phone supermarket in Hanoi’s Gia Lam District, said: “The main buyers [of feature phones] are usually ordinary workers, students, older people, and businesses buying phones for internal communication needs.”

    “A significant portion of them are first-time users who want a device that could make and receive phone calls so they could keep in touch, especially one that’s easy to use.”

    Besides, many people buy Nokia’s new products such as the 3310, 230 and 105 to use as backup for their smartphones, he said.

    Nguyen Tuan Anh, an experienced mobile phone seller, is confident that feature phones would perform well for at least a few more years.

    Since their customers often prioritize low price over brand, phones from China and nameless brands would continue to sell well if they meet buyers’ needs, he said.

    But revenues from feature phone sales remain low. According to GfK, 70 percent of them cost below VND500,000 ($21.5).

    The best-selling device in this segment is the Nokia 105 with a price tag of VND350,000 ($15). Itel, the third largest brand, has products costing below VND200,000 ($8.6) such as Value 100 and IT2161.

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  • Saigon to pilot public electric motorbike service

    Saigon to pilot public electric motorbike service

    The HCMC Transport Department will launch a public transport service using electric motorbikes at the end of this year. The service is part of a memorandum of understanding (MoU) signed last week between the department and Grab Vietnam, the local unit of Singapore-based ride-hailing firm.

    Under the agreement, the two parties will jointly roll out the electric motorbike service to support the city’s public transportation system in downtown areas, then consider expanding it throughout the city by the end of next year.

    They are also considering an electric bike rental service in the near future.

    Grab Vietnam will also share its data with the department, including the journeys of all vehicles registered with its ride-hailing technology, in order that the latter can create a traffic database.

    This database will allow the department to analyze, simulate and predict traffic on each route, and in turn, coordinate with Grab’s fleet to come up with solutions addressing the city’s current traffic constraints, the MoU said.

    Providing this additional mode of public transport aims to limit the use of personal vehicles, reduce congestion, and limit environmental pollution, department director Tran Quang Lam said.

    HCMC, the country’s largest metropolis with 13 million people, has around 7.8 million motorbikes and about 750,000 cars, according to the city’s police department. Car registrations in the city increased 15 percent in the first six months, while motorbikes 6 percent, according to the transport department.

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  • E-commerce competition flares up as holiday shopping season begins

    E-commerce competition flares up as holiday shopping season begins

    Vietnam’s e-commerce platforms are going all out with promotions and other marketing campaigns to woo customers for the year-end shopping season. Immediately after Apple’s latest iPhone 11 was released in Vietnam on November 1 at midnight, CEO of Singapore-owned Lazada Vietnam James Dong was seen riding a bicycle delivering the first phones to promote his company’s two-hour delivery service.

    Lazada’s latest PR stunt, along with discounts on the newest iPhones, kicked off a series of promotions, many of which will begin deployment from November 11 as the company gears up for the year-end shopping season, generally a peak time for the retail sector.

    Vietnam’s e-commerce players have now latched onto promotional trends that have been ignited by major regional players like Chinese e-commerce giant Alibaba, which launched the first Singles’ Day shopping event on November 11, 2009, offering heavy discounts on its platform.

    In addition to Singles’ Day, Vietnam’s e-commerce sites have been offering heavy promotions on October 10 and December 12, both spin-offs, as well as Black Friday and Cyber Friday events that originated in the U.S.

    “The fourth quarter is always the most exciting time for the retail sector. There will be peak days when the whole market spills out to shop,” said Steven Tuan Nguyen, Senior Regional Manager for Southeast Asia of Paris-headquartered internet advertising company Criteo.

    Lazada has also followed up the night of discounts for the iPhone 11 with a strategy it calls “Shoppertainment”, hosting live game shows in which competitors guess prices, and inviting famous artists who give out nearly 10,000 discount codes worth a total VND300 million ($12,900).

    The retailer has also hosted promotional concerts in Ho Chi Minh City. Instead of hiring artists, Singapore-based Shopee has enlisted international football superstar Christiano Ronaldo. Ronaldo’s brand ambassador contract for Shopee in Southeast Asia was announced in mid-August.

    “Together with Cristiano Ronaldo, we look forward to making a positive and lasting impact on Shopee’s development in the region,” said CEO Chris Feng.

    Shoppers not only in Vietnam but also Malaysia, Singapore and Indonesia have seen CR7’s ads pop up everywhere through various online media channels. The player is also currently associated with Shopee’s November 11 “Super Sale, free nationwide shipping” campaign in Vietnam.

    Home-grown e-commerce platform Sendo, which saw a traffic surge last quarter, is also investing heavily in year-end promotions, prioritizing Black Friday (November 29). After diva My Tam, Sendo has just added actor Ninh Duong Lan Ngoc to its roster of celebrities.

    “This year, we’ve decided to invest a great deal in the Black Friday campaign, not just on the day but for the whole week. We will advertise on all channels, from mass media to social media, so that 90 percent of customers nationwide aged between 18 and 35 years will be reached by Sendo’s ads,” said Vo Dang Minh Tuan, Brand Communication and Social Media Manager of Sendo.

    Similarly, Vietnam’s Tiki announced it will also engage in year-end promotion peaks, having invested heavily in October 10 promotions.

    The company said it has primarily been focusing on promotions related to its two strengths: a two-hour express delivery service that applies to 70 percent of items in its shop; and sales of genuine branded items with a return policy.

    According to a recent report by Criteo, Black Friday last year saw online sales traffic in Vietnam spiking 64 percent, and online sales revenue 149 percent over the average day of the month.

    Traffic and sales revenue rose 23 and 64 percent respectively for Singles’ Day, and 34 and 97 percent for December 12, a trend that is expected to continue this year, the report said.

    “The year-end shopping season usually commences with October 10 sales. Singles Day remains the key shopping festival and post-Singles Day sales ride on the festivity’s traction,” said Steven Tuan Nguyen. “As we approach the year-end holidays, there is also a spike in online retail as part of the celebration. This sustained sales season presents retailers with more opportunities to engage their audiences.”

    However, they are also faced with a real challenge to differentiate themselves. This could be achieved with the power of data – by being able to identify top-selling categories amidst millions of products, predict shopping behavior and integrate online and offline shopping data, he added.

    Vietnam’s e-commerce market is estimated at $5 billion this year and is set to reach $23 billion in 2025, according to a recent report by Google, Singapore-based investment firm Temasek, and U.S.-based consultancy Bain.

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  • Masan struggles to grow in Vietnam’s competitive beer market

    Masan struggles to grow in Vietnam’s competitive beer market

    Vietnamese food giant Masan is struggling to grow its beer business, which is suffering losses and could drop out of the domestic market.

    Masan expects a loss of $15 million this year from its White Lion beer brand, Danny Le, board member of Masan Consumer Holdings, said at an investors’ meeting last month.

    If the company cannot create a new and competitive product, it will have to withdraw from the market, he added.

    “The beer business costs a lot of advertising money, and we do not want to spend tens of millions of dollars a year for a brand that cannot be in the top 3,” he said.

    Masan’s beer brand, White Lion, launched five years ago, is becoming less significant in the group’s financial reports as longer-established players retain a firm hold in the market.

    When it was first launched, a crate of White Lion cost VND40,000 ($1.7) less than the cheapest domestic brand at the time, resulting in large sales in the southern region.

    Orders were so high that Masan’s beer factory, which it acquired from another beer producer in 2014, was operating at maximum capacity of at 50 million liters a year in the first year, but still failing to keep up with demand.

    The company then built a second plant with four times the capacity in the southern province of Hau Giang.

    Helped by regular promotions featuring celebrities and gifts, sales reached VND1 trillion ($43 million) after two years, and industry observers at the time considered White Lion a threat to major brewers such Sabeco and Heineken.

    “Consumers welcoming the product is the foundation for Masan Consumer Holdings to expand its market nationwide and to enter the high-end beer segment,” the company said in a report in 2017.

    But the company’s expansion strategy has hurt sales badly.

    In order to reduce inventory to launch new products, Masan increased the commission for distributors, making its 2017 H1 beer revenue falling 15 times year-on-year.

    Although the company targeted revenue of VND1-1.2 trillion ($43-51.6 million) in 2018 with new products, its leaders admitted that expanding the business could take 12-18 months as they had to restructure a distribution system and employ experienced salespeople.

    At the end of last year, White Lion revenue was VND388 billion ($16.7 million), just 39 percent of its annual target.

    The company had planned to employ about 150-200 salespeople this year to focus on marketing in street eateries, targeting double last year’s revenues. But by September, its revenue had fallen 7 percent year-on-year.

    Meanwhile, top brewer Sabeco’s nine-month revenues rose 10 percent year-on-year to VND28.3 trillion ($1.22 billion), while that of the Hanoi Beer Company (Habeco) also posted a 10 percent increase to VND2.7 trillion ($114.89 million).

    Vietnam consumed 4.1 billion liters of beer in 2017, making it the biggest alcohol market in Southeast Asia and the third biggest in Asia after Japan and China, according to the Ministry of Health.

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  • Vingroup begins making smart televisions

    Vingroup begins making smart televisions

    VinSmart, the smartphone producing unit of Vietnam’s biggest private conglomerate Vingroup, has revealed its first 55-inch smart TV.

    The smart TVs are currently being manufactured in a factory in Hanoi’s Hoa Lac Industrial Park, and are set to be released around December this year, according to a Vingroup source who wished to remain anonymous.

    They will run on the Android TV operating system, which is currently being used by smart TVs produced by Japanese electronics-maker Sony, according to information leaked on tech forums on Wednesday.

    Users will be able to install applications from the Google Play Store, as well as issue voice commands in Vietnamese.

    The new smart TV has garnered thousands of comments on internet forums, many of which said it should be affordable so that it can compete with existing products of Sony and South Korean electronics-maker LG.

    VinSmart was established by Vingroup in June 2018, and produced its first smartphones just six months after. It has produced a total of eight models thus far. Last month, the company began selling four of its Vsmart models in Russia.

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  • WeWork to open 2 coworking offices in HCMC

    WeWork to open 2 coworking offices in HCMC

    Coworking startup WeWork plans to open two more offices in Ho Chi Minh City’s District 1 this month. One of them will be at Lim Tower 3, and rents will start at VND6.9 million ($297) per month for a single-seat, according to the company’s website. Another will be on Sonatus Building, with prices starting at VND7.8 million ($336).

    The New York-based startup opened its first working space in the city in District 4 in March. WeWork’s move comes in a market that has some serious players with a lot of locations.

    Vietnam’s Toong, backed by private-equity firm Indochina Capital, has 12 locations besides one each in Laos and Cambodia.

    Hanoi company UPGen, with funding from Singapore PE firm Northstar Group last year, has 13 offices in Hanoi and HCMC.

    Coworking spaces are becoming popular in HCMC’s central districts since the limited traditional office space there is unable to meet the burgeoning demand.

    As of the end of September, coworking companies had rented 52 percent of all office space in the central area, including in under-construction buildings, according to a report by real estate firm Savills Vietnam.

    HCMC has been ranked the 41st fastest-growing coworking markets in the world this year by consultancy Co-working Resources, which said a new coworking space opens in the city every 47.5 days.

    WeWork has added 114 new sites in the past four months, according to its website, and is planning to open another 208 in the next few months, bringing its total number to 850.

    The announcement came in the backdrop of the company’s failed IPO amid investor concerns that its valuation was inflated.

    WeWork owed $18 billion in a long-term lease at the end of June and is expected to lay off 4,000 of its more than 12,500 employees

  • Uniqlo Vietnam annouced launch date

    Uniqlo Vietnam annouced launch date

    Uniqlo has signed up a raft of Vietnamese celebrities to launch its much-awaited first store in the country.

    Uniqlo Vietnam will make its debut on December 6, opening in a three-level, 3097sqm space previously occupied by a Parkson department store. It is located opposite the local flagship stores of rival chains H&M and Zara.

    The new store, to be called Uniqlo Dong Khoi after the street it is located on, will be the Japanese apparel brand’s largest in Southeast Asia.

    To support the opening, Uniqlo has launched a campaign video ‘Elevate Everyday’ to introduce LifeWear to Vietnamese consumers, emphasizing how the label is suited to local climate conditions and lifestyle.

    The video features a cast including artist Ngo Thanh Van, footballer Tien Dung, model, actress and entrepreneur Helly Tong, model and activewear enthusiast Tran Hien, writer and interior designer Qui Duc, photographer and skater Pixself, and model and actress Thu Anh.

    While the cast are from different backgrounds, the video shows how LifeWear suits their own unique lifestyles.

    The Elevate Everyday campaign video can be viewed at Uniqlo Vietnam Facebook page.

    “The store will offer both Saigonese people and international visitors a unique shopping experience, with a full line up of LifeWear on three levels,” said Osamu Ikezoe, co-COO at Uniqlo Vietnam. “We look forward to welcoming our first customers on December 6.”

  • Vietnam suspects $4.3 bln worth of aluminum imported for origin fraud

    Vietnam suspects $4.3 bln worth of aluminum imported for origin fraud

    Vietnamese authorities suspect $4.3 billion worth of aluminum has been imported with the intent of being exported to the U.S. relabeled as made-in-Vietnam products.

    Vietnam Customs recently discovered signs of origin fraud in 1.8 million tons of aluminum imported by Global Vietnam Aluminum Ltd in the central Ba Ria-Vung Tau Province.

    General Director of Customs Nguyen Van Can say at a press briefing Monday that although the company has a production chain to produce aluminum bars, it was still importing billions of dollars worth of the same products from China and other countries, possibly because it wants to gain from the different duties the U.S. imposed on them.

    The U.S. imposes a duty of 15 percent on Vietnamese aluminum, but up to 374 percent on Chinese aluminum.

    Apart from China, the company also imported aluminum from Mexico, Australia and Russia to be exported to Canada, the U.S., Egypt and India.

    However, data from Vietnam Customs show that although the company has been importing 488,000 tons a year since 2015, the volume of its exports is only 80,000 tons or 16.3 percent of imports.

    For this reason, the 1.8 million tons of aluminum remain in the company’s storage space and is being closely surveilled by Vietnam Customs.

    Vietnamese authorities are increasing scrutiny on product origins and tightening issuance of a certificate of origin for exports as part of efforts to stop trade fraud, Deputy Minister of Trade and Industry Tran Quoc Khanh said in July.

    Vietnam recorded a trade surplus of $37.9 billion with the U.S. from January to October, up 33.4 percent year-on-year, according to the General Statistics Office.

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  • Vietcombank to pull out of BNP Paribas insurance joint venture

    Vietcombank to pull out of BNP Paribas insurance joint venture

    Vietcombank is selling its stake in a JV with French life insurance firm BNP Paribas as part of a possible bancassurance deal with a foreign buyer.

    Its board of directors passed a resolution approving the divestment of an unspecified stake in Vietcombank – Cardiff Life Insurance Co., Ltd (VCLI), the state-owned lender said in a release last Thursday.

    VCLI is a 45:55 joint venture between Vietcombank, Vietnam’s largest lender by market capitalization, and BNP Paribas Cardif, part of France’s BNP Paribas banking group.

    Although Vietcombank’s announcement did not identify a buyer, Bloomberg reported in late September that Hong Kong-based insurer FWD Group Ltd. was nearing an agreement to pay around $400 million for VCLI as part of a long-term bancassurance agreement with the bank.

    A bancassurance transaction is typically an arrangement between a bank and an insurance company in which the latter pays an upfront amount for exclusive rights to sell its products to the bank’s clientele.

    FWD Group, owned by Hong Kong billionaire Richard Li, had outbid several firms, including British insurance giant Prudential, which had been vying to obtain exclusive rights to distribute life insurance products through Vietcombank’s branch network, Bloomberg quoted sources as saying.

    According to VCLI’s latest financial statements, as of the end of 2017 it had VND950 billion ($40.79 million) in assets and accumulated losses of nearly VND3 billion ($128,800).

    Recently major international life insurance companies have been expressing interest in entering the growing Vietnamese market through bancassurance and acquisition deals.

    German insurer Allianz and Japanese insurers Nippon Life and MS&AD Insurance were among several vying to buy the Singapore and Vietnam businesses of Britain’s Aviva in a deal estimated to be worth $2-2.5 billion.

    Earlier Prudential had signed an agreement with South Korea’s Shinhan Bank Vietnam to distribute its insurance products through its network and Canada’s Manulife struck a similar deal with local lender ACB.

    Phung Ngoc Khanh, general director of the Insurance Supervisory Authority (ISA), said the country’s insurance market has huge potential due to the low penetration and people’s rising incomes and awareness.

    In the first half of this year the industry’s premium income was VND71.15 trillion ($3.06 billion), up 24.4 percent year-on-year. Last year’s growth was also around 24 percent, according to the ISA.

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  • Vietnam urged to stop building new coal-fired power plants

    Vietnam urged to stop building new coal-fired power plants

    A halt to investment in new coal-fired power plants is required to check the trend of increasing coal consumption, a report warns.

    The report, released on Monday by the Ministry of Industry and Trade in collaboration with Denmark’s Energy Agency, said the country needs early action to reduce future coal demand, which could include taxation on the use of coal or limits on new coal-based power generation.

    Vietnam’s coal imports could triple between now and 2030 as demand for power rises in lockstep with a rapidly growing economy, Jakob Stenby Lundsager, an adviser in Vietnam to the Danish Energy Partnership, said at the release of the Vietnam Energy Outlook Report 2019.

    The figure would rise eight times by 2050, meaning three-fourths of Vietnam’s energy needs would depend on imports, he said.

    Renewable energy could account for 10 percent of total supply by 2030 and 20 percent by 2050, but the country needs to invest in expanding its grid and transmission to absorb the new supply, he said.

    The report noted liquefied natural gas could be used instead of coal in the power sector through at a higher cost, but it would cause less pollution.

    Vietnam became a net importer of coal in 2015 and imports have been rising to meet electricity needs.

    Imports cost $2.27 billion last year, up 71.6 percent year-on-year, with coal bought mostly from Indonesia, Australia and Russia, according to the trade ministry.

    Since power shortages are expected from 2021, the country might need to import 3.6 billion kilowatt-hours of power in 2021 and 9 billion kWh in 2023 from Laos and China to meet demand, the ministry had said in July.

    The World Bank has estimated that Vietnam needs $150 billion for energy sector development by 2030, with electricity demand growing by 8 percent a year in the next decade.

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  • iPhone 11 orders double that of iPhone X in Vietnam

    iPhone 11 orders double that of iPhone X in Vietnam

    Orders for iPhone 11 models soar to twice that of iPhone X last year, with more customers preferring authorized resellers for post-sale services. As of October 31, data from electronics chain FPT showed that customers have put down deposits for 12,300 iPhone 11 models, 2.5 times that of iPhone XR, XS and XS Max last year.

    In major chain Mobile World, customers have put down a deposit for 6,000 new iPhone 11 models, three times that of iPhone X last year. Another chain, CellphoneS, received 2,500 orders with deposits, twice that of last year.

    The iPhone 11 was officially released in Vietnam on Friday via authorized resellers. FPT said it could deliver up to 5,000 devices on Friday alone. Industry insiders say official iPhone 11 orders have reached a new peak in Vietnam, with the total number of these three major chains already surpassing 20,000 devices, higher than in previous years.

    Many Vietnamese are used to buying iPhones via unofficial channels, mostly hand-carried on overseas flights. There is a change in this trend, with the increase in official channel orders showing customers care more about post-sales services such as the one-year warranty from Apple. Data from the chains also show that iPhone 11 Pro Max is the most favored model, accounting for half of all orders, followed by iPhone 11. Only 10 percent of buyers ordered the iPhone 11 Pro.

    At authorized resellers, the iPhone 11 is priced from VND22 million ($951), the iPhone 11 Pro, VND31 million ($1,340) and the iPhone 11 Pro Max, VND38 million ($1,643). Apple’s market share in Vietnam fell to 5.6 percent in September, its lowest level this year, with buyers apparently waiting for the new iPhone 11 models, according to a report by market research firm GfK.

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  • Vietjet to expand fleet with 20 long-range Airbus jets

    Vietjet to expand fleet with 20 long-range Airbus jets

    Budget airline Vietjet has ordered 20 Airbus long-range A321XLR aircraft to expand its international reach as Vietnam’s aviation market keeps growing.

    With a range of up to 8,700 kilometers, the aircraft will serve Vietjet’s plans to expand its international flights network, the airline said in a statement Thursday.

    The contract increases Vietjet’s order book with Airbus to 186 aircraft, with the first A321XLR to be delivered in 2023.

    The single-aisle A321XLR will “modernize Vietjet’s fleet as we look to strongly grow our international flight network,” Vietjet CEO Nguyen Thi Phuong Thao said. The airline currently operates 66 Airbus jets.

    Also Thursday, the carrier ordered two A320/321 aircraft simulators for pilot and technician training on top of the one simulator it already has.

    A321XLR’s range is 15 percent more than the previous model A321LR, it also burns 30 percent less fuel per seat compared with older generations.

    Vietjet’s order follows similar moves by other Vietnamese airlines to expand their fleet as air travel heats up. Private airline Bamboo Airways has ordered 50 narrow-body Airbus A320neo aircraft and is expected to receive the first next month, while national flag carrier Vietnam Airlines plans to get 50 new narrow-body aircraft by 2025.

    Vietnam’s fleet of over 200 aircraft last year could quadruple by 2038, aircraft maker Boeing said last week.

    Last year, the country’s 21 state-run airports served 103.5 million passengers, up 11 percent year-on-year, and the figure is set to rise to 112 million this year, according to the Airports Corporation of Vietnam.

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  • Vietnam Airlines Jan-Sept profit highest in five years

    Vietnam Airlines Jan-Sept profit highest in five years

    Vietnam Airlines Group posted pretax profits of VND3.29 trillion ($142 million) in Jan-Sept, up 35.7 percent year-on-year.

    This is the highest profit it has earned in the last five years. The group, comprising Vietnam Airlines, Jetstar Pacific and Vietnam Air Services Company (VASCO), saw its net revenue rise 3 percent to VND76.7 trillion ($3.3 billion).

    The group managed to reduce sales and financial costs down by 30 percent in Q3, resulting in this quarter’s profit surging 2.5 times year-on-year to VND1.13 trillion ($48.88 million).

    The group, accounting for 51.7 percent of Vietnam’s aviation market, served 21.4 million passengers in nine months, up 3.2 percent year-on-year.

    Vietnam Airlines this year has received two new wide-body Boeing 787-10 aircraft and 10 Airbus A321neo jets. It is set to get one more Boeing 787-10 and four more Airbus A321neos by the end of the year.

    The group targets serving 23.4 million passengers this year, earning revenues of VND104.59 trillion ($4.52 billion).