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Tag: Vietnam

  • Phuc Long Danang to open soon

    Phuc Long Danang to open soon

    Vietnamese coffee and tea chain Phuc Long is expanding into Danang next month.

    The brand will open two stores inside Lotte Mart and on Nguyen Van Linh Street in the city’s Hai Chau district.

    The chain has also enriched its food menu, offering traditional Vietnamese banh mi sandwiches alongside croissants, cookies, waffles and tiramisu.

    Targeting younger customers, Phuc Long is considered a competitor with international chain Starbucks and local rival The Coffee House.

    Established in 1968 in the highlands of Lam Dong, Phuc Long started by selling packaged Vietnamese traditional coffee and tea through retail stores. Phuc Long expanded to Ho Chi Minh City during 1980s with both retail stores and a coffee chain. The brand now has 25 stores across the city.

    Starbucks opened its first store in Danang last month.

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  • Japan invests big in Vietnamese real estate

    Japan invests big in Vietnamese real estate

    Việt Nam’s real estate sector has witnessed significant participation from Japanese investors through cooperation with Vietnamese businesses recently, promising to bring benefits to the real estate market.

    According to real estate company Savills Việt Nam, over the past years, Asian investors, including Japanese ones, were only involved in commercial real estate like commercial centres, serviced apartments or office buildings. However, at present, these investors are increasing their activity in the residential segment due to the country’s young population and an increasing middle class, presenting an extremely attractive opportunity.

    Presence of big investors

    Shinichi Sakaki, deputy general director of the City Bureau, at Japan’s Ministry of Land, Infrastructure, Transport and Tourism, said the Japanese Government now has policies to support real estate developers promoting investment abroad. In addition, Japan has the experience of developing large-scale satellite towns, so it is trying to ‘export’ that technology abroad.

    One of the projects attracting not only investors but also the governments of Việt Nam and Japan is the cooperation agreement for the development of Nhật Tân – Nội Bài, aiming to build a smart city north of the Red River.

    The project was signed between Việt Nam’s BRG Group Joint Stock Company, Japan’s Sumitomo Corporation Asia and Oceania Group and the People’s Committee of Hà Nội.

    With total investment of nearly US$4.2 billion, this project is considered Japan’s largest foreign investment.

    Prior to that, another large Japanese investor, Mitsubishi Corporation, had co-operated with Vietnamese property developer Bitexco, to develop 240 low-rise housing units and two high-rise condominiums among a total of more than 1,000 low-rise and 17 high-rise condominiums at Hà Nội’s The Manor Central Park project.

    Bitexco and Mitsubishi established a joint venture company, of which Bitexco holds a 55 per cent stake and Mitsubishi holds the remaining 45 per cent.

    Recently, Nidec Group, one of the world’s leading hi-tech corporations and the second largest Japanese corporation on the Tokyo stock exchange (2017), joined forces with escalator firm Alpec to conquer the Vietnamese elevator market.

    With many years of experience in the field of high technology as well as research and development of lifts, Nidec will send foreign experts to support Alpec in quality management, labour safety, as well as the research and development of elevator equipment. The cooperation between the two sides promises to launch modern and environmentally-friendly elevator products, in accordance with the aesthetics and economic conditions of the Vietnamese people.

    Regarding potential cooperation between the two countries, Lê Hoàng Châu, president of the HCM City Real Estate Association (HoREA), said, in 2017, Japan replaced the Republic of Korea as the largest foreign investor in Việt Nam in general, and in the real estate market in particular. Many Japanese enterprises have participated in the implementation of major urban infrastructure projects funded by the Japanese Government, such as Obayashi, Shimizu, Hitachi, Sumimoto Construction, Mitsui and Maeda.

    In addition, there are enterprises that have invested in developing big projects such as Nomura Hải Phòng Industrial Zone, or Idemitsu Kosan Company Limited’s investment in Nghi Sơn Refinery and Petrochemical. Especially, in the past five years, some Japanese investment funds and enterprises have cooperated with real estate companies in Việt Nam in the form of buying shares, contributing to investment or lending for developing real estate projects in accordance with Japanese standards and suitable to consumers’ needs.

    The potential for investment and business cooperation among real estate companies in Japan and Việt Nam is very large, with 1,200 real estate development projects of Vietnamese enterprises in need of cooperation, joint ventures or teaming up with domestic and foreign businesses, especially Japanese ones.

    Potential cooperation

    The cooperation between Việt Nam and Japan will bring benefits to both sides, especially in creating opportunities for Vietnamese consumers to access high quality Japanese housing products, according to Châu.

    Meanwhile, regarding cooperation with Japanese units in the field of building management, Nguyễn Quang Huy, deputy general director of Property and Management Company (PMC), said cooperation with Japanese businesses brought benefits such as giving motivation to develop service standards and customer service strategies in a Japanese style, improving the prestige and company’s brand name, and being able to improve the foundations of implementing management, training or improving the quality of human resources.

    “However, we also face many challenges; the most fundamental difficulty is the different approaches between the two sides. Vietnamese people tend to focus on a short-term approach, expecting to see results quickly. Japanese people, on the other hand, appreciate the importance of long-term planning, so they start with the smallest things,” Huy said.

    “For example, in the field of building management, they teach staff how to cut nails, wash toilets, walk and serve customers. Therefore, Vietnamese businesses intending to cooperate with Japan should also pay attention to differences in the approach and find ways to create a workforce that loves the job, accepting career development on a long-term basis rather than short-term,” he said.

    According to the HoREA chairman, there is enormous opportunity for co-operation between HCM City and Japanese property developers and construction companies since the city now has some 1,200 projects, including infrastructure upgrades and beautifying works,

    Speaking at a meeting with a delegation of executives from 40 Japanese companies, Châu said the projects had been undertaken by local firms who want to tie up with foreign partners.

    Additionally, from 2018, the city was set to implement the National Assembly’s resolution No54 on special mechanisms and policies, which would give it almost complete autonomy in deciding and awarding projects.

    The city had already planned 21 programmes including removing houses along canals and giving itself a facelift.

    He cited the examples of Tokyu investing in Hưng Thịnh Corporation and Becamex’s projects and Hankyu and Nishi Nippon Railways tying up with Nam Long, Misubishi Corporation with Phúc Khang Corporation, and ACA with Sơn Kim Land.

    Concurring, Lê Trần Kiên, deputy director of the city’s Department of Construction, said the city aimed to relocate 20,000 people living along canals and in old apartments by 2020.

    “Some 21,850 houses are located along canals and need to be moved, mostly in Districts 8, 4 and Bình Thạnh,” he said.

    The city was considering ways to attract more foreign investment in public-private partnership projects (PPP), he said, adding that six PPP projects were underway to upgrade the city.

    HCM City is now soliciting Japanese investment in a project to upgrade the Cầu Dừa Canal in District 4.

    Speaking about the potential of co-operating with city-based companies, Keiji Kimura, chairman of J-CODE, said Việt Nam was set for rapid modernisation like Japan achieved 50 years ago.

    So Japanese companies would like to share their experience with HCM City partners in handling problems like traffic jams and pollution, he said.

    They were committed to apply modern technologies to develop HCM City’s infrastructure, he assured.

     

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  • Vietnam Airlines to introduce flights to Singapore, Taiwan

    Vietnam Airlines to introduce flights to Singapore, Taiwan

    National carrier Vietnam Airlines will add four flights per week from HCM City to Singapore and Taiwan each from March 27.

    A spokesperson of the carrier said the firm wanted to diversify its products to meet the demand of passengers as Singapore and Taiwan had recently become favourite destinations for Vietnamese tourists.

    The new flights to Singapore will depart from HCM City at 7.25pm every Monday, Wednesday, Thursday and Sunday, while the return flights will depart at 11.25pm on the same days.

    The flights from HCM City to Taiwan will depart at 2.05am every Tuesday, Thursday, Saturday and Sunday. The return flights will depart from Taiwan at 10.10pm every Monday, Wednesday, Friday and Saturday.

    With the introduction of the new flights, Vietnam Airlines will have a total of 11 flights per week on the HCM City-Taiwan route and 25 flights between HCM City and Singapore. All flights will be Airbus A321 with four-star international levels.

    On June 30, the carrier will launch a special promotional programme, in which the return ticket between HCM City and Singapore will cost VNĐ2.79 million and that between HCM City and Taiwan will cost VNĐ4.56 million (US$200), including taxes and fees.

     

  • E-business of Giordano International looks good

    E-business of Giordano International looks good

    E-business last year was particularly strong for apparel retailer Giordano International.

    Overall, consolidated sales reached HK$5.4 billion, up 5.2 per cent. Group comparable-store sales and comparable-store gross profit rose  by 5.2 and 5 per cent respectively.

    Consolidated gross margin edged up by 0.1 points to 59.5 per cent.

    Profit after income taxes attributable to shareholders of the company was $500 million,
    an increase of 15.2 per cent over 2016.

    Operating profit rose by 21.3 per cent, with most regions having double-digit growth, particularly Southeast Asia, Mainland China and Taiwan. The group’s business in Vietnam was acquired on July 1.

    With an improved merchandise assortment, Indonesia and Malaysia delivered good results.

    Operating profit increased by 18.6 and 26 per cent for Indonesia and Malaysia respectively. In Singapore, operating profit increased by 31.2 per cent, attributable mainly to the gross margin improving by 1.7 points to 63.7 per cent.

    Unusually strong sales from Thailand in 2016 resulted in an unfavourable year-on-year comparison. Operating profit declined by 20.1 per cent in local currency terms.

    A surge in net profit for South Korea – a 48.5 per cent JV under an independent management team – resulted from better cost control, closure of non-performing stores and enhancement in gross margin.

    Giordano had a network of 2414 stores at the end of December, of which 1268 were standalone outlets. Most stores were in Greater China, South Korea, Southeast Asia and the Middle East.

    Meanwhile, the group’s e-business is directly managed and derived mainly from third-party platforms as well as its own proprietary website in Greater China. This channel generated $310 million in revenue at a 31.4 per cent growth rate.

    Accounting for 93.2 per cent of the group’s e-business sales, Mainland China continued its momentum and recorded a 28.2 per cent increase in sales on various platforms combined.

    Giordano’s e-business in Taiwan was revamped during the year to become its second-largest online presence.

  • Happy Women’s Day flying with Vietjet’s 1.5 million HKD0 tickets

    Happy Women’s Day flying with Vietjet’s 1.5 million HKD0 tickets

    Celebrating International Women’s Day on March 8, Vietjet is to offer a 3 golden days promotion from March 6 to 8, 2018 with 1,500,000 tickets priced from HKD0. The promotional tickets are for all domestic and international routes flying from Vietnam to Hong Kong, Seoul, Busan (South Korea)/ Kaoshiung, Taipei, Taichung, Tainan (Taiwan)/ Singapore/ Bangkok, Phuket, Chiang Mai (Thailand)/ Kuala Lumpur (Malaysia)/ Yangon (Myanmar)/ Phnom Penh, Siem Reap (Cambodia) with the flight period from April 10 to December 31, 2018.

    Especially, the first 1,000 female passengers buying tickets on the website on March 8 and paying via international cards (Visa, Master, JCB, UnionPay) will receive the promo code to purchase discount tickets through email provided when booking.

    The promotional tickets are available during the golden hours from 13:00 to 15:00 (GMT+8). Payment can be easily made with debit and credit cards of Visa/ MasterCard/ AMEX/ JCB/ KCP.

    Aiming to become the “Consumer Airline”, Vietjet is continually opening new routes, adding more aircraft, investing in modern technology and offering more added-on products and services to serve all demands of customers. Vietjet is a pioneering airline that is loved by many for its exciting promotional and entertainment programs, especially during the festive season. With high-quality services, diverse ticket classes and special low-fare tickets, Vietjet offers its passengers flying experiences on new aircraft with comfy seats, delicious hot meals, beautiful and friendly cabin crews, and other interesting added-on services.

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  • Asset quality, profitability of Vietnam banks improved: Moody’s

    Asset quality, profitability of Vietnam banks improved: Moody’s

    The asset quality and profitability of 14 Vietnamese banks rated by Moody’s improved moderately year-over-year, driven by robust macroeconomic conditions and growth in core income, Moody’s Investors Service said on Tuesday.

    However, the banks’ capitalisation deteriorated because of rapid asset growth and cash dividends, Moody’s said in the “Banks – Vietnam: 2017 results show widening divergence in asset quality and profitability performance” report, adding that the banks’ funding profiles weakened mildly, as they increased their reliance on market-sensitive liabilities — mainly borrowings from other banks — to fund loan growth with cheap short-term funding sources.

    “In 2018, we expect the banks will continue to improve their asset quality and profitability, while capitalisation will weaken,” said Eugene Tarzimanov, a vice president and senior credit officer at Moody’s.

    “However, the credit profiles of banks with stronger capital buffers and lower asset risks will be further distanced from the other banks,” said Rebaca Tan, a Moody’s analyst.

    On asset quality in particular, Moody’s said that the improvement in 2017 versus 2016 was helped by problem asset recoveries and write-offs, as well as credit growth. The asset weighted-average problem loans ratio at the 14 rated banks fell to 5.7 per cent at the end of 2017 from 6.7 per cent the year before.

    Notably, four banks fully wrote off the bonds of Việt Nam Asset Management Company that they had received in exchange for problem assets, and Moody’s expects more such write-offs in 2018.

    The problem loan coverage ratios also improved, although they are still at levels which are weak by international standards.

    Moody’s said the banks’ asset quality will improve further in 2018, due to recoveries, but rapid credit growth could mask asset risks.

    With profitability, Moody’s points out that the banks’ asset weighted-average return on assets rose to 0.9 per cent in 2017 from 0.7 per cent in 2016. Profitability will continue to improve in 2018, on the back of the same factors that drove up profitability in the prior year; in particular, robust macroeconomic conditions and growth in core income.

    As for capitalisation, the asset weighted-average ratio of tangible common equity to total assets for the banks slipped to 5.5 per cent in 2017 from 5.7 per cent in 2016, pressured by declines at Government-owned banks in particular.

    Nevertheless, some banks, such as Vietnam Prosperity JSC Bank (B2 stable, b3), Vietnam Technological and Commercial Joint Stock Bank (B2 stable, b2), and HCM City Development JSC Bank (B2 stable, b3), strengthened their capital bases through the sale of new shares.

    Moody’s expects that more Vietnamese banks will increase capital by issuing new shares in 2018. However, the overall capitalisation levels will remain under pressure over the next 12 months from credit growth and dividend payments.

    Moody’s explains that in terms of funding, the banks’ funding profiles weakened moderately, as seen by the system-wide asset weighted-average loans-to-deposits climbing to 86 per cent in 2017 from 85 per cent in 2016. This trend could continue in 2018, because loan growth remains rapid.

    Read more at https://vietnamnews.vn/economy/423887/asset-quality-profitability-of-vietnam-banks-improved-moodys.html#a6iJMG6IBeduJdR1.99

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  • Amazon to enter Vietnam

    Amazon to enter Vietnam

    The world’s leading e-commerce player, Amazon, is planning to enter the Vietnamese market, announced the Việt Nam E-commerce Association (VECOM).

    Amazon will also support Vietnamese enterprises in exporting online through the platform, VECOM chairman Nguyễn Thanh Hưng said.

    Accordingly, Amazon will kick off a co-operation programme to support Vietnamese small- and medium-sized enterprises to sell and export goods through its ecosystem at the Việt Nam Online Business Forum 2018, which will be held on March 14.

    According to an evaluation of VECOM and prestigious research companies in the world, the growth of Vietnamese e-commerce is at a high rate. VECOM estimates the growth rate of 22 per cent per year.

    The Vietnamese e-commerce scale is predicted to reach US$10 billion in the next five years, making Việt Nam a lucrative market to many e-commerce enterprises in the world.

    Before Amazon, Lazada entered Việt Nam and dominated some one third of the country’s online shopping market. Later, Alibaba paid $1 billion to buy stakes at Lazada to enter the Southeast Asian market, including Vietnam.

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  • Vietnam’s fruits getting popular in Japan

    Vietnam’s fruits getting popular in Japan

    Vietnamese fruit is making its presence felt in the Japanese market, with the country registering a turnover of US$170 million in 2017 through the export of fruits and vegetables, a year-on-year increase of 70 per cent.

    This was revealed by Tạ Đức Minh, Vietnamese trade counsellor to Japan, during Japan’s largest international food and beverage exhibition, Foodex Japan 2018, which opened on Tuesday in Chiba city.

    Up to 20 Vietnamese enterprises from various cities and provinces, such as HCM City, Hà Nội, Nghệ An, Bắc Giang, Ninh Bình, Đồng Tháp, Bến Tre, Cần Thơ, Kiên Giang, Lâm Đồng and Cà Mau, which are active in the field of agro-fisheries and food export, took part in the event.

    The event offers Vietnamese businesses opportunities to promote their exports in the Japanese and other Asian markets. Besides this, it is an opportunity for Việt Nam’s firms to develop new export items, sign valuable export contracts, and promote a wide range of Vietnamese food and agricultural products.

    At the expo, Vietnamese firms displayed products such as fruits and vegetables, seafood, cod-liver oil, organic pepper, seedless lemons, rice products, Phú Quốc sauce, various biscuits and juices.

    Earlier, Vietnamese products were exported to Japan in the form of semi-finished products; however, recently, Vietnamese enterprises have focused on investment and technology cooperation with Japanese enterprises, helping Vietnamese products meet the quality standards of the Japanese market, Minh added.

    The four-day exhibition attracts 3,350 firms from 80 countries and territories worldwide, and is expected to welcome some 85,000 visitors.

     

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  • Vietnam expects to export 6.5 million tonnes of rice in 2018

    Vietnam expects to export 6.5 million tonnes of rice in 2018

    The Ministry of Agriculture and Rural Development expects Việt Nam to export 6.5 million tonnes of rice in 2018, Deputy Minister of Agriculture and Rural Development Hà Công Tuấn said at the ministry’s monthly meeting on Friday in Hà Nội.

    To get high export value, high-quality rice will still account for a large proportion of the total export volume, while normal rice makes up less than 20 per cent, Tuấn said.

    He also said the export prices of Vietnamese rice had increased as their quality had improved.

    The export price of Vietnamese rice rose from US$435 per tonne in 2016 to $450 per tonne in 2017 and $475 per tonne during the January-February period.

    This was achieved by restructuring efficiently the production of rice to improve its quality and value.

    At the same time, in the past two years, more local private enterprises have joined the global export market. Businesses have also invested more into the processing of rice but the percentage of processed rice is still low.

    Việt Nam is doing well to improve its rice quality, he said, suggesting the country focus on improving the brand name of its rice.

    According to the Ministry of Agriculture and Rural Development, Việt Nam shipped 861,000 tonnes of rice abroad in the first two months of this year, earning $419 million, up 17 per cent in volume and 34 per cent in value, compared with the same period last year.

    The Philippines was the biggest importer of Vietnamese rice, accounting for 26.9 per cent of the market share. It was followed by China with 23.5 per cent.

    Last year, Việt Nam earned $2.6 billion by exporting 5.8 million tonnes of rice.

     

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  • Lucky Vietjet Passenger wins VND100,000,000 in “Enjoy Sky Festival” campaign

    Lucky Vietjet Passenger wins VND100,000,000 in “Enjoy Sky Festival” campaign

    Travelling on flight VJ378 from Ho Chi Minh City to Chu Lai (Quang Nam Province) on 13 February 2018 proved to be an auspicious day for Mr Nguyen Hong Quang, when the lucky passenger won VND100,000,000 in cash thanks to Vietjet’s “Enjoy Sky Festival” campaign.

    The two-month campaign which ran from 28 December 2017 to 28 February 2018, received tremendous support from passengers as super promotional tickets priced from only VND0 were offered during the golden hours of 1pm – 3pm (Malaysian time). On top of that, a whole host of freebies valued at up to VND1 billion were also up for grabs including free domestic and international return tickets, “lucky money” prizes worth VND10, 000,000, as well as other Vietjet merchandise.

    Modeling itself as a ‘Consumer Airline’, Vietjet will continue to meet the growing demands of consumers by opening new routes, expanding its fleet, investing in modern technology, and offering greater value-added products and services. The airline also prides itself in offering diverse promotional programs on tickets and entertainment especially during the festive seasons.

    Vietjet is favored and known as a pioneer for its many interesting entertainment activities and special promotions during the festive seasons. With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers passengers enjoyable flights with a dynamic and friendly flight crew, comfy seats, amazing hot meals and special surprises from the airline’s inflight activities.

  • Vietjet announces route expansion plan with direct flights and Bangkok – Krabi route

    Vietjet announces route expansion plan with direct flights and Bangkok – Krabi route

    Vietjet has announced its plan to operate direct flights connecting Vietnam and India, while its subsidiary, Thai Vietjet, is to launch a new direct domestic service between Bangkok and Krabi from April 5, 2018. Both plans are designed to become part of Vietjet’s long term development program to be a “Consumer Airline” that serves all demands of its customers.

    The India route will connect Ho Chi Minh City with New Delhi with four flights a week, serving the growing travel demands of the two peoples and contributing to the region’s integration and trade exchange. The announcement was made at the Vietnam – India Business Forum which was witnessed by Vietnam President Tran Dai Quang and senior leaders of Vietnam and India. It also came as a highlight of the 45th anniversary of the establishment of Vietnam – India diplomatic relationship and the 10th anniversary of strategic partnership between Vietnam and India.

    India, the country with the world’s second largest population, is famous for its diversified culture, religions, cuisine and tourism. Also, the country is well-known for its marvelous nature and grand architectures that are certified as world heritages. Among them are the Valley of Flowers National Park (Uttarakhand), Lotus Temple (New Delhi), Taj Mahal (Uttar Pradesh), Red Fort (New Delhi), etc.

    For the Thailand route, Thai Vietjet will launch a new direct domestic service between Bangkok (Suvarnabhumi) and Krabi, starting from April 5, 2018. The service will operate with two daily return flights and a flight duration of one hour twenty minutes per leg. Departure times from Bangkok (Suvarnabhumi) are 07:10, 19:25 and departure times from Krabi are 09:05, 21:20. Thai Vietjet will deploy an A320 aircraft with 180 seats for the route, representing the airline’s determination to meet passenger demand for popular routes. Krabi is an eternally popular holiday destination, offering great beaches, clean air, beautiful temples, stunning views of both lush mountains and stunning coastlines. It is also a getaway for Bangkok residents to escape the city smog for some clean coastal relaxation. Krabi is also renowned for its world class seafood, beach barbeques and popular nightlife attractions in Krabi Town. With the new Bangkok (Suvarnabhumi) to Krabi flight addition, the airline will be flying five Thailand domestic routes, including Bangkok (Suvarnabhumi) to Chiang Mai, Chiang Rai, Phuket, Krabi and a daily direct flight connecting Phuket and Chiang Rai.

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  • Vietjet entices more B-leisure travellers into Vietnam with its expanding flight routes

    Vietjet entices more B-leisure travellers into Vietnam with its expanding flight routes

    When it comes to the MICE (Meetings, Incentives, Conferences and Events) sector, Singapore and Malaysia are widely regarded as the “MICE tigers” of the Southeast Asian region. Hot on their heels is another rapidly-rising economy in this region, Vietnam, which envisions emerging as a serious threat in the coming years.

    According to the Vietnam National Administration of Tourism (VNAT), MICE tourism brings in up to four or five times more than other types of tourism, because this segment of travellers tend to spend more. This has made MICE a catalyst for development in countries like Singapore, Malaysia and Thailand.

    Vietnam has also cast its eyes on this lucrative pie having played host to many big events such as APEC (Asia Pacific Economic Cooperation) 2017, ASEAN Summit 2010, and ASEAN Tourism Forum-ATF 2009.

    The International Congress and Convention Association (ICCA) has stated that Vietnam is emerging as a safe destination in the world and an attractive place for foreign investors. The country’s tourism sector is also actively looking into refining their infrastructure and services to improve their ability to host large-scale MICE events.

    While the major cities of Hanoi and Ho Chi Minh have been the obvious go-to destinations for corporate companies and business travellers to Vietnam in the past, cities in the central region such as Danang, Hoi An and Nha Trang are becoming increasingly affable choices.

    In 2016, Vietnamese cities like Hanoi, Danang, Nha Trang and Ho Chi Minh added to their array of 4 and 5-star international hotels. Nha Trang’s airport was also recently expanded to include more regional and international flights.

    “Business travellers typically outspend the holiday traveller by four or fivefold. So we see plenty of opportunities in MICE tourism, and with the world economy getting back on its feet, there is a renewed demand for exhibitions, meetings and events. Vietnam has great potential in MICE tourism which we have to actively and strategically explore, in order to entice more international organisations to host their events on our shores,” said Vietjet founder and CEO, Nguyen Thi Phuong Thao.

    One way to do this, she adds, is to improve accessibility into Vietnam’s major cities apart from Hanoi and Ho Chi Minh City, which offer greater unexplored natural beauty and cultural experiences for travellers seeking more authentic experiences in business and leisure (B-leisure).

    In hopes to entice more travellers to visit the less-explored cities of Vietnam, Vietjet continues to expand its wings within the country and internationally. The airline currently operates over 350 flights per day connecting passengers to 38 local destinations including Nha Trang, Danang, Hanoi and Ho Chi Minh City, among others, as well as 35 international routes including Kuala Lumpur. In the coming months, Vietjet will continue adding new routes to its ever-expanding list of destinations, connecting passengers to even more destinations across the globe.

    Its innovative in-flight activities and seamless travel experience has garnered many fans across the region, making Vietjet one of Southeast Asia’s increasingly popular airlines for business and leisure.

    There is no denying the vast potential of Vietnam’s MICE industry. The country’s ancient, traditional culture, friendly and hospitable people, safe environment, rich natural resources and beach resorts certainly offer great opportunities for the country to tap into, as it surges ahead to take its place as a favourite MICE destination in this region.

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  • Vietnam commercial banks boost retail banking segment

    Vietnam commercial banks boost retail banking segment

    Commercial banks have adjusted their service fees to individual customers since beginning of the year in order to focus on the retail segment.

    For money transfer services in the same banking system, some commercial banks, such as VIB, VietinBank and Techcombank, do not charge for individual customers when using electronic services.

    These banks charge VNĐ8,800 for the maintenance of their accounts. In addition, the fee for money transfer services among different banks is VNĐ9,900 or higher per transaction, or as a percentage of the transaction amount ranging from 0.1 to 0.3 per cent.

    The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) has increased its service fees since the beginning of this month.

    The monthly fee of its SMS banking service increased from VNĐ8,800 to VNĐ11,000, including VAT (value-added tax).

    Vietcombank has begun charging VNĐ2,200 per transaction from Vietcombank account holders via its mobile banking app from March 1.

    For internet banking service, Vietcombank’s customers will have to pay VNĐ2,200 for each transaction worth less than VNĐ50 million (US$2,196) and VNĐ5,500 for each transaction worth more than VNĐ50 million.

    The fee for an inter-bank transaction of below VNĐ10 million is VNĐ7,700, and when the amount is more than VNĐ10 million, it charges 0.02 per cent of the total amount per transaction.

    Financial expert Bùi Quang Tín said that the competition among bank service fees was quite fierce as some banks offered free of charge inter-bank money transfer services in order to attract more customers.

    “The recent increase in banking service fees at several commercial banks is understandable as the banks must invest more money to ensure security systems to meet stricter requirements from customers,” he said.

    According to the State Bank of Việt Nam, commercial banks issued 132 million cards as of the end of last year.

    Last year, the number of transactions, including withdrawals and transfers, via ATMs was over 206 million transactions valued at VNĐ563 trillion; while there were 43.5 million POS and EDC transactions with a total value of VNĐ95 trillion.

    As for domestic transactions for non-cash payments, bank cards ranked second in terms of the number of transactions.

    Individual deposit account balances increased by VNĐ42.6 trillion to VNĐ325 trillion in the fourth quarter of last year.

    With a population of more than 93 million and rising consumption, Việt Nam is considered a destination in the retail banking segment.

     

  • First Vietnam’s duty-free cars arrive from Thailand

    First Vietnam’s duty-free cars arrive from Thailand

    Over 2,000 Honda cars from Thailand—the  first batches of cars to enjoy zero per cent import duty under the ASEAN Free Trade Agreement (AFTA)—have been imported to Việt Nam.

    Under the AFTA commitments, a zero per cent tax is applicable to cars imported from the bloc, with a localisation rate of 40 per cent or more in the country of origin, starting January 1 this year.

    The current batch has Jazz, Accord, CR-V and Civic models.

    A representative of Honda Vietnam said that to import the autos to Việt Nam, the firm had completed procedures to meet the requirements of Việt Nam’s Decree 116 on the conditions for production, assembly, import, business of warranty service, car maintenance and particularly the Vehicle Type Approval certificate granted by the Thailand Department of Land Transport.

    A consulting staff member at Honda’s Mỹ Đình agent said that the new vehicles would be rolled out to the market in May or early June, as it will take one or two months to complete checks on emission, quality and technical safety at ports.

    “The price of each car is expected to fall by more than VNĐ200 million.  This will be a turning point in the Vietnamese automobile market,” said the staff member.

    Earlier, the insiders calculated that with the zero per cent import tax, the price of imported cars from ASEAN countries to Việt Nam would fall by 20-25 per cent.

    Toyota Motor Vietnam and Ford Việt Nam are completing procedures to meet the requirements of the Decree 116 to import cars which are favourites in Việt Nam, such as the Ford Explorer, Everest, Ranger, Toyota Fortuner and Yaris.

     

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  • Acquisition threat real for Vietnam FMCG brands

    Acquisition threat real for Vietnam FMCG brands

    The Sa Giang Import and Export Joint Stock Company has reported a net profit of VNĐ30.5 billion ($1.34 million) on a turnover of VNĐ290.7 billion (US$12.8 million) last year.

    They were almost 4 per cent and 11 per cent up respectively.

    For Sagrimexco, as the company is known, the biggest earner was bánh phồng tôm (shrimp crackers).

    The Sài Gòn Food Joint Stock Company (Sài Gòn Food) also achieved positive business results with domestic sales soaring by 30 per cent.

    Hotpot was its main product.

    Sagrimexco and Sài Gòn Food are among many domestic companies that are leading the Vietnamese fast moving consumer goods (FMCG) market.

    Reports released recently by market analysis firms also show that in the FMCG sector, Vietnamese brands hold the upper hand over their rivals from multinational corporations in both rural and urban markets.

    Kantar Worldpanel’s Asia Brand Power report released on January 15 said in rural areas, Vietnamese brands hold a 78 per cent market share. In large cities, the figure is 71 per cent.

    Kantar Worldpanel’s David Anjoubault said the strengths of Vietnamese brands lie in good understanding of local markets and distribution networks.

    The success is also attributed to their close co-operation with retailers.

    After analysing the four largest market segments — food, beverages, home care and personal care products — Nielsen came to the conclusion that Vietnamese manufacturers earned 42 per cent of the FMCG sector’s total revenues.

    In the food and beverage segments, Vietnamese enterprises have a market share of 69 per cent and 45 per cent respectively. In the home care and personal care segments, multinational brands have advantages, but their growth rates are lower than those of domestic ones.

    Analysts said Vietnamese brands’ domination is easy to understand since they possess many advantages.

    Their quality has improved recently and their prices have become more competitive while they have always had large distribution networks that take them to consumers in the remotest areas.

    More and more modern retail chains are also becoming distributors for local FCMG manufacturers, thus actively helping them expand their market share.
    Besides a good understanding of consumers’ customs and tastes, the local players also understand the importance of investing in technology and being flexible, all of which have helped them quickly capture the imagination of the fickle modern consumer.

    With the current low consumption level in the Vietnamese market, the FCMG sector still offers huge prospects to investors.
    Many analysts fear however that their impressive achievements have put many local FMCG enterprises on the radar of foreign investors, who could easily buy them lock, stock and barrel.

    For instance, in just the last seven months South Korean conglomerate CJ Corp acquired over 70 per cent shares of food processor Cầu Tre Foods and 100 per cent of kimchi distributor Ong Kim.

    In March last year it had shelled out $13.44 million to acquire a controlling interest in Minh Đạt Food.

    CJ also bought a 4 per cent stake in Việt Nam’s leading meat processor, Vissan, when the State giant held an IPO in March 2016.

    To help ward off predatory foreign investors while not violating the country’s World Trade Organsiation commitments, the analysts said the Government should have practical support policies.

    They also stressed the need to simplify administrative procedures to create a fair and healthy competitive environment and help enterprises cut down unnecessary costs.

    In the meantime, the Government should create conditions that enable local FMCG businesses to access loans with preferential interest rates.

    Bank loans remain out of agricultural businesses’ reach

    According to the State Bank of Việt Nam (SBV)’s credit department, as of June 2016 bank loans outstanding to the agricultural sector had been worth over VNĐ1.1 quadrillion (US$48.5 billion), accounting for nearly 20 per cent of the total loans outstanding.

    Loans from Agribank alone made up almost 50 per cent of the total, with the remaining banks accounting for only VNĐ500 trillion ($22.03 billion).

    But a study by the Ministry of Agriculture and Rural Development (MARD) found that 70.1 per cent of enterprises involved in agriculture have faced difficulties in getting bank loans, with 49.4 per cent unable to borrow at all.

    Why do companies in the farm sector find it difficult to get bank loans?

    According to some businesses, the process of borrowing capital from banks remains very complicated with many stringent requirements, one of which is that borrowers have to put up assets for collateral.

    An SBV official said many agricultural enterprises are unable to borrow because of this requirement since they do not have assets.

    Though the central bank has instructed banks to offer unsecured loans to agricultural businesses, they still make up of only 20 per cent of the outstanding loans to this sector, he said.

    Analysts said banks remain apprehensive about lending without collateral despite the Government’s many support policies.

    For instance, it issued Decision No.68/2013/QĐ-TTg on fully subsidising interest on loans for buying machinery and equipment to reduce agricultural losses.

    But a banker revealed that the central bank is tardy in paying the interest subsidies.

    Agricultural companies said the biggest problem for them in getting bank loans are the interest rates.

    Though the rates for loans to agricultural projects with high feasibility are only 6-6.5 per cent, even these are too high for them because the profitability of these projects is very modest, they said.

    Concurring with this, analysts suggested the Government should continue to slash interest rates and bring them down to 3.5-4 per cent.

    MARD has proposed some measures in a draft decree to be submitted to the Government for approval to resolve collateral-related problems for agricultural enterprises and improve their access to bank loans.

    The decree also includes interest rate support policies for them, one of which is that the rates should be 1.5-2.5 per cent lower than for other sectors.

    The Government would bridge the difference in interest rates.

    Analysts said it is imperative to lower interest rates for enterprises involved in agriculture and industry, thus attracting more investors to these sectors.