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Tag: Vietnam

  • Many Korean goods to receive Vietnam tax exemption

    Many Korean goods to receive Vietnam tax exemption

    Many goods imported from the Republic of Korea (RoK) into Việt Nam will be exempted from import taxes in 2018, due to the Việt Nam-Korea Free Trade Agreement (VKFTA).

    The Government recently issued Decree No149/2017/NĐ-CP, which regulates a new special preferential import tariff, as agreed upon in the VKFTA, and to be put in place between 2018 and 2022.

    Under the decree, import taxes imposed on 704 types of products imported from the RoK to Việt Nam, will be eliminated in 2018. The groups of commodities that will enjoy tax exemptions this year are mainly in seafood, wheat flour, confectionery, diesel fuel, jet fuel, paint, laundry detergent, plastic, iron and steel products, power machinery and equipment, and electronic products.

    In 2018, an additional 653 products imported from the RoK will also have their tax rates lowered from last year.

    The preferential tax rates will be applied to commodities directly transported from the RoK to Việt Nam. The goods must also meet origin regulations, as stated in the agreement, and exporters must provide certificates of origin in a form stipulated by the Vietnamese Ministry of Industry and Trade.

    This year, Việt Nam has set several new preferential import tariffs to implement bilateral and multilateral FTAs with partner countries and territories, such as mainland China, Hong Kong, Japan and RoK.

    Under the Việt Nam-Japan Economic Partnership Agreement (VJEPA) and the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP) for 2016-19, nearly 4,000 import tariff lines for many groups of commodities imported from Japan will be also eliminated this year.

     

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  • Innisfree Vietnam to set footprint in online presence

    Innisfree Vietnam to set footprint in online presence

    Innisfree Vietnam today launches its first official online store, on Lazada.

    The South Korean cosmetics brand is offering its full range of products on the site, including bodycare, make-up tools, skincare and men’s categories.

    Online customers will be offered frequent promotions as well as gifts for bulk orders, says Innisfree.

    In its two years, Innisfree Vietnam has opened three stores in Vietnam, all in Ho Chi Minh City.

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  • Vietjet 2017 pre-tax profit reaches approximately USD209 million

    Vietjet 2017 pre-tax profit reaches approximately USD209 million

    Vietjet Aviation Joint Stock Company (HOSE code: VJC) announced its consolidated pre-audited financial statement report for 2017 with all indicators growing strongly compared with 2016 and exceeding the plan approved at the company’s Annual Shareholder Meeting.

    Specifically, total net revenue in 2017 reached nearly VND42,258 billion (USD1.86 billion), an increase of 53.7% year on year and exceeded the annual plan by 0.6%. Pre-tax profit stood at approximately VND4,755 billion (USD209 million), up 75.9% year on year and achieved a 126% increase over its yearly plan. After-tax profit of parent company’s shareholders reached VND4,527 billion (USD199 million), equivalent to VND10,065 (USD0.44) earning per share (EPS).

    Thanks to the expansion of its fleet by 17 aircraft in 2017 (including a modern A321 NEO – the first Airbus A321 NEO in Southeast Asia), Vietjet opened 22 new routes (one domestic and 21 international ones), increased its total operating routes to 82, including 38 domestic and 44 international ones. Vietjet carried over 17.11 million passengers in 2017. Air transportation revenue of the year was VND22,577 billion (USD995 million), up 41.8% year on year and exceeded the yearly plan by 4.6%.

    Up to December 31st, 2017, its total fleet consisted of 51 Airbus A320 and A321 aircraft. Vietjet received 39 aircraft out of the total of 219 aircraft ordered from Airbus and Boeing. On time performance in 2017 was 85.59%.

    Cost per available seat kilometers (CASK) excluding fuel decreased to 2.25 US cent, reduced by 7.3% year on year and at the lowest in the world due to the efficient cost control in 2017. CASK including fuel decreased by 2.27% to 3.79 US cent.

    In 2017, Vietjet paid 10% cash dividend, 40% share dividend for 2016 and advanced 20% cash dividend payment for 2017. With its positive business results, Vietjet has increased its 2017 dividend payment from 50% to 60% and

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  • New shopping center opened in Ho Chi Minh City

    New shopping center opened in Ho Chi Minh City

    Vietnam’s newest shopping centre, Van Hanh Mall, has opened in Ho Chi Minh City, on Su Van Hanh Street in District 10.

    Built on a 90,000sqm site, the shopping complex has 55,000sqm of retail space, which is 90 per cent occupied already, by more than 200 international and local brands.

    Tenants include Bata, Charles & Keith, Levi’s, Mujosh and Nike and a raft of dining options, including Buffalo Wild Wings, Crystal Jade, Sushi Kei, Starbucks and Phuc Long coffee.

    For entertainment, there is a CGV multiplex cinema, a Superbowl amusement center and a giant European-themed bookstore.

    A Co.opXtra hypermarket, operated by Saigon Co.op and Singapore’s NTUC FairPrice, also opened, marking the brand’s third outlet in the city.

    There are nine parking floors from basement to fifth floor, enough space for 350 cars and 3000 bikes.

    Built at the cost of VND1 trillion (US$43.9 million), Van Hanh mall rentals range from US$30-60 per sqm.

  • Korea’s PK Market to enter the US market

    Korea’s PK Market to enter the US market

    Shinsegae’s discount chain E-mart plans to enter the US by opening its premium food outlet PK Market.

    While mostly high-end products will be sold at the South Korean group’s outlet, some of its low-tier private brands such as No Brand and Peacock will also be offered.

    E-mart is eyeing cities with significant Asian communities, such as Los Angeles and San Francisco. It may also acquire a food factory in Portland, Oregon, for producing its Peacock products for the US.

    E-mart has also joined hands with US shopping mall giant Taubman, which helped establish Starfield shopping malls in Korea.

    The Korean company has been trying to diversify its global reach, particularly after closing down stores in China over the THAAD row. Its accumulated operating loss in China has reached more than KW150 billion (US$141 million) since 2013, according to industry sources. E-mart finally exited the Chinese market last month.

    Meanwhile, the company plans to open its second outlet in Ho Chi Minh City in May.

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  • Japanese firms mull over expansion plans in Vietnam

    Japanese firms mull over expansion plans in Vietnam

    Việt Nam maintained its position as an important investment destination for Japanese companies, with some 70 per cent of operational Japanese-invested firms making plans for business expansion here.

    This information was revealed by Hironobu Kitagawa, chief representative of Japanese External Trade Organisation (JETRO), in Hà Nội, at a meeting with the Ministry of Industry and Trade on January 29.

    According to the latest survey conducted by JETRO on the operation of Japanese firms in Asia and Oceania, 65.1 per cent of Japanese businesses operating in Việt Nam reported profits, up 2.3 points over the 2016 survey.

    Some 70 per cent of Japanese firms have mulled over expansion schemes in Việt Nam given the country’s market size, growth, stable political and social state of affairs, and cheap labour cost.

    This was a high rate in comparison with other countries where JETRO conducted the annual survey, Kitagawa said. “Việt Nam continues to be an important investment destination for Japanese businesses.”

    However, the head of JETRO in Hà Nội also pointed out the risks in the investment climate, concerns and obstacles that Japanese enterprises are facing during the investment process in Việt Nam.

    The latest survey was conducted with nearly 12,000 Japanese enterprises in 20 countries and territories in Asia and Oceania from October 10 to November 10, 2017. In Việt Nam, 1,345 Japanese firms participated in the survey.

    The full report will be made available next week.

    According to Deputy Minister of Industry and Trade Đỗ Thắng Hải, the survey provides comprehensive and objective information to help the Vietnamese Government and ministries to make effective and practical policies.

     

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  • Vingroup eyes stake in mobile device retailer Vien Thong A

    Vingroup eyes stake in mobile device retailer Vien Thong A

    VinPro, the electronics retail arm of Vietnamese conglomerate Vingroup, may invest in mobile device retailer Vien Thong A.

    However, Vien Thong A GM Hoang Ngoc Vy has denied the media reports, before enigmatically adding that further information would be forthcoming.

    VinPro was launched in March 2015 as part of the property giant’s foray into the nation’s US$4.5-billion electronics retail market. It has two brands: VinPro for big stores in Vincom Retail’s shopping malls, and VinPro+ for smaller stores.

    Established in November 1997, Vien Thong A has nearly 200 stores across Vietnam and 100 warranty centres.

    Vietnam’s electronic and electrical appliances market is expected to expand by 11.9 per cent by 2020, according to Boston Consulting Group and consumer information company GFK Vietnam.

    Meanwhile, the market is dominated by FPT Retail and Mobile World, which has just acquired about 95 per cent of Hanoi-based Tran Anh Digital World. Earlier, Thailand’s Central Group bought a 49 per cent stake in electronics retailer Nguyen Kim Trading.

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  • Vinamilk set to expand abroad

    Vinamilk set to expand abroad

    Dairy giant Vinamilk will continue to expand abroad, especially in emerging market like Laos and Myanmar, this year.

    “Vinamilk will build a plant in Myanmar and an organic cow farm of several thousand hectares in Laos this year,” Đỗ Thanh Tuấn, the company’s PR director, told a press conference in HCM City on Thursday.

    All procedures have been completed for the farm, which will be just 100km from another Vinamilk farm in the central province of Nghệ An.

    “We will expand our [farms in Việt Nam] to meet demand.” Tuấn said.

    Now dairy production in the country only meets 35 per cent of the demand.

    “Vinamilk can collect 750 tonnes of fresh milk from its 10 farms and 8,000 farming households daily, and that is enough to meet the national demand for pasteurised milk,” Tuấn said.

    The company already has plans in place to process coconuts for export, especially to the United States.

    “Việt Nam has huge potential in coconut products, but only one domestic company, TTC, is exporting them. We recognise that demand for coconut products in the US is huge, and Vinamilk decided to enter the market and a large raw material supply area will be set up soon in the southern province of Bến Tre.”

    In the last 20 years, 2017 was the first time the company’s exports declined due to political fluctuations in the Middle East, a big market for it, he said.

    “We only achieved 67 per cent of the year’s export target, but thanks to an immediate change in strategy to focus on the domestic market, Vinamilk’s turnover still increased by 10 per cent from 2016.”

    At the end of last year, the company also marked its presence in the sugar industry by acquiring a 65 per cent stake in the Khánh Hòa Sugar Company for nearly VNĐ1 trillion (US$44 million) and changing its name to the Việt Nam Sugar Joint Stock Company (Vietsugar).

    “Every year, Vinamilk consumes around 130,000 tonnes of sugar, but the price of sugar in Việt Nam is always 30-40 per cent higher than in neighbouring countries, especially Thailand.

    “We will be very active in producing sugar and even plan to triple the capacity of Vietsugar to 500,000 tonnes a year,” Tuấn said.

    He promised that the sugar made by Vinamilk would be cheaper than others’ and the company could take advantage of its 260,000 retail shops to sell the product.

    Last year, the company had a 58 per cent stake of the estimated $4 billion dairy market.

     

  • Vietnam phone exports to China surge eight-fold

    Vietnam phone exports to China surge eight-fold

    Customs data shows China became the second largest importer of phones and phone parts from Vietnam last year, just behind the European Union with US$11.96 billion, a year-on-year increase of 6.4%.

    Exports of the products to South Korea also rose by a staggering 45.4% year-on-year to US$3.97 billion and shipments to the United Arab Emirates edged up a slight 1.6% to US$3.89 billion.

    The report indicates Vietnam spent US$8.75 billion importing phones and phone parts from China and US$6.18 billion from South Korea last year, up 42.4% and 72.6% from a year earlier.

    Therefore, for these products alone, Vietnam ran respective trade deficits of around US$600 million and US$2.21 billion with China and South Korea.

    Notably, according to the report, China has accounted for around half of phone and phone part exports to Vietnam in recent years.

    Apart from hi-end gadgets of tech giants like Samsung, Apple and HTC, industry watchers said Chinese brands such as Oppo, Huawei, Xiaomi and Vivo have dominated the mid-end and feature-phone market segments.

    Although some major Korean phone producers like Samsung and LG have set up shop in Vietnam, many parts suppliers of these tech firms have yet to come to the country. Therefore, analysts forecast Vietnam will have to continue importing phone parts from the Northeast Asian nation this year.

    Customs data shows Vietnam exported phones and phone parts worth US$45.27 billion last year, a year-on-year increase of 31.9%, while the country saw a 54.8% rise in imports of these products at US$16.34 billion. The products made up over 21% of the country’s export revenue last year.

  • ASEAN companies face US$750b risk from cyberattacks

    ASEAN companies face US$750b risk from cyberattacks

    Companies across the ASEAN bloc face a growing risk of cyberattacks, which can expose the region’s top-listed firms to a US$750 billion erosion in current market capitalisation.

    This was revealed on Tuesday in a new research commissioned by Cisco.

    Conducted by global management consulting firm A.T. Kearney, the research underlines that ASEAN’s growing strategic relevance, driven by economic expansion and ongoing digital adoption, make it a prime target for cyberattacks.

    A combination of nascent policy preparedness, absence of a unifying regional governance framework, shortage of skilled talent, underestimation of risk and lack of adequate investment are among the factors contributing to the heightened risk.

    The research report, titled “Cybersecurity in ASEAN: An Urgent Call to Action”, emphasises that cyber-security risk across the bloc will continue to escalate as the bloc gets more digitally interconnected.

    ASEAN countries underspend on cyber security. The region currently spends an average of 0.07 per cent of its collective gross domestic product (GDP) on cyber security annually. It will need to increase the spending to 0.35-0.61 per cent of GDP between 2017 and 2025 to be in line with the best benchmark (based on spending levels as percentage of GDP for Israel).

    The research estimates that this translates to $171 billion in collective spending needed across ASEAN countries during the period. Limited sharing of threat intelligence, often because of mistrust and a lack of transparency, will lead to even more porous cyber-defence mechanisms.

    Naveen Menon, ASEAN President at Cisco, said: “Digital innovation and adoption are central pillars of economic growth for ASEAN. Its success hinges in large part on the bloc’s ability to combat cyber threats. Cyber security needs to be an integral part of policy discussions at the semi-annual ASEAN Summit, with the aim of developing a unified policy framework for the region. The corporate sector also needs to start treating cyber security as a business wide issue that can only be tackled by adopting a risk-centric approach to building resilience, rather than just an IT problem.”

    Lương Thị Lệ Thuỷ, general director of Cisco Việt Nam, said: “Việt Nam has fallen to rank 101 among 195 countries in the Global Security Index 2017 compiled by the UN International Telecommunication Union, down 25 places from 2016.”

    “The National Assembly (NA) has been discussing the need to formulate a law on cyber security. It has been put under consideration at the fourth session of the 14th NA. However, all stakeholders need to work together to help build cyber-security capabilities in Việt Nam to ensure that we are able to combat these threats,” Thủy said.

     

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  • South Korean group acquires Prudential Finance in Việt Nam

    South Korean group acquires Prudential Finance in Việt Nam

    Prudential on Tuesday announced that it had reached an agreement to sell 100 per cent of its Prudential Vietnam Finance Company (PVFC) to Shinhan Card Co Ltd, a subsidiary of the Shinhan Financial Group (Shinhan), at a cost of US$151 million.

    The United Kingdom-based financial services group’s PVFC was launched in 2006 as the first foreign non-bank financial institution licensed for consumer finance lending in Việt Nam. Today, it is the fourth-largest consumer finance company by outstanding loan balance.

    “Prudential and Shinhan will work closely to ensure a smooth transition of the business. PVFC remains committed to all of its customer obligations and operations will continue as normal until the transaction has been completed,” Prudential said in a statement.

    It remains fully committed to the Vietnamese market through its life insurance business, Prudential Vietnam Assurance Private Limited, and asset management business, Eastspring Investments Fund Management Company.

    “PVFC is a high-quality business, but it is not core to our strategy in Việt Nam. We are delighted that Shinhan will be able to lead this consumer finance business through to the next stage of its development. Việt Nam remains an attractive and important market to Prudential where we have high-quality and fast-growing life insurance and asset management operations,” Nic Nicandrou, Chief Executive of Prudential Corporation Asia, said.

    “As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Việt Nam and Indonesia to continue serving the growing savings and protection needs of the Asian population,” he said.

    Shinhan is a financial institution in South Korea with a diversified business portfolio across banking, credit cards, securities brokerage, life insurance, asset management and leasing. It is one of the largest financial institutions by market capitalisation in Korea, and Shinhan Card is the largest credit card company in the country. Shinhan has had a presence in Việt Nam since 1993.

    Last year, Shinhan Bank Vietnam, a wholly owned unit of Shinhan Bank, also acquired the retail division of ANZ, a major Australian bank, in Việt Nam.

    Currently, Prudential Finance Vietnam, FE Credit, HomeCredit and HDSaigon are four companies ruling the Vietnamese consumer finance market. According to StoxPlus, the total outstanding loan of consumer finance companies was more than VNĐ56 trillion ($2.47 billion) at the end of 2016.

     

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  • Vietcombank to sell 7.6 million Vietnam Airlines’ shares

    Vietcombank to sell 7.6 million Vietnam Airlines’ shares

    Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) has registered to sell 7.6 million shares of Vietnam Airlines Corporation, which is listed as HVN on the stock market.

    The transaction is expected to take place from January 24-February 22.

    This is part of more than 22.4 million shares, equivalent to 1.8 per cent of charter capital of Vietnam Airlines that Vietcombank bought in the airline’s initial public offering in late 2014. The bank spent VNĐ544.12 billion (US$23.9 million) to buy the shares, or VNĐ22,300 for each share.

    At the current market price of Vietnam Airlines’ shares at some VNĐ63,700 each, Vietcombank can earn an estimated VNĐ484 billion from the sale of its 7.6 million shares after more than two years of holding. Compared to six months ago, the stock has nearly tripled in terms of market value.

    If successful, Vietcombank’s holdings at Vietnam Airlines will reduce to 1.2 per cent.

    The shares of Vietnam Airlines and VJC shares of budget carrier Vietjet Air are two aviation stocks that have grown fast in the past few months. The growth of share prices comes mainly from positive business results in late 2017 and early 2018 in the aviation industry.

    Last year, Vietnam Airlines Corporation, including Jetstar Pacific and Vietnam Air Services Company (VASCO), recorded a consolidated revenue of VNĐ88.4 trillion (US$3.88 billion) and pre-tax profit of more than VNĐ2.8 trillion, exceeding 72 per cent of its plan and up 8.3 per cent year on year, respectively. This is the highest level of revenue and profitability the firm has made in its history.

    According to stock investors, the increasing demand for air transportation during Tết (Lunar New Year) holiday is another reason for the acceleration in prices of aviation shares in recent times.

    Vietnam Airlines has traded more than 1.2 billion shares on UpCOM, making it a large-scale public company in the leading group of capitalisation value in the stock market. The airline plans to put all of its shares on HCM Stock Exchange (HOSE) in the second quarter of this year.

    Meanwhile, it will continue to issue additional shares to existing shareholders to increase charter capital and reduce State ownership. Accordingly, in the first quarter of this year, Vietnam Airlines plans to increase charter capital by issuing additional 191 million shares at VNĐ10,000 each to existing shareholders.

    Vietnam Airlines has a charter capital of nearly VNĐ12.28 trillion, of which the State holds 1.057 billion shares, equivalent to 86 per cent of charter capital. Of the remaining shareholders, ANA Holdings Inc., Japan’s largest aviation group, holds 107 million shares, representing nearly 8.8 per cent of charter capital.

     

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  • Vietjet Offers 500,000 Promotional Tickets to International Destinations

    Vietjet Offers 500,000 Promotional Tickets to International Destinations

    In continuation of Vietjet’s biggest promotional program of the year – “Enjoy Sky Festival”, the airline is offering 500,000 tickets priced from only VND0 (*) for three golden days starting 24 to 26 January 2018.

    The promotion is applied for all international routes flying from Ho Chi Minh City to Kuala Lumpur (Malaysia); Seoul, Busan (South Korea); Hong Kong; Kaoshiung, Taipei, Taichung, Tainan (Taiwan); Singapore; Bangkok, Phuket, Chiang Mai (Thailand);  Yangon (Myanmar); Phnom Penh and Siem Reap (Cambodia) from 1 March to 31 December 2018 (**).

    Passengers flying with Vietjet from now until 28 February 2018 will stand a chance to win a host of attractive prizes with a total value of up to VND1 billion. Moreover, lucky passengers on board selected flights will also have a chance to participate in a lucky draw and walk away with special prizes such as free domestic return tickets, “lucky money” prizes worth VND10,000,000 as well as a special cash prize worth VND100,000,000.

    On top of that, from 30 January to 28 February 2018, passengers will also have an additional opportunity to win domestic and international return tickets via the “Vietjet Sky Fun” game which can be downloaded from the Apple App Store and Google Play Store.

     

     

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  • Jollibee celebrates 100th store in Vietnam 

    Jollibee celebrates 100th store in Vietnam 

    Jollibee Vietnam is celebrating the opening of its 100th store, in the Mekong Delta city of Can Tho.

    “Vietnam is home to our largest Jollibee network outside of the Philippines, and as such will always hold a special place in Jollibee’s history,” says Jollibee Foods Corporation (JFC) CEO Ernesto Tanmantiong. “From our humble beginnings as an ice-cream parlor in the Philippines, it gives us joy that more and more people are loving Jollibee, helping us grow to become one of the major global foodservice companies.”

    To mark the milestone, Jollibee Vietnam is giving away 100 buckets of its chicken, branded ‘Chickenjoy’ and other freebies at all of its outlets in the country.

    “Our business in Vietnam has been a core pillar of our international work and will continue to be one of our most important markets globally,” says JFC head of international business Dennis Flores.

    Jollibee opened its first branch in Ho Chi Minh City in 2005, and is now one of the three largest convenience-food chains in Vietnam.

    With a home network of 1000 stores, Jollibee Foods Corporation is the largest Asian foodservice company and the largest restaurant owner in the Philippines. It has has more than 3600 stores globally as well as investments in such brands as 12 Hotpot, Highlands Coffee, Pho 24, Dunkin Donuts in China, and US-based burger chain Smashburger.

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  • Vietnamese tourism to be showcased in Thailand

    Vietnamese tourism to be showcased in Thailand

    Việt Nam will participate in an ASEAN Tourism Forum (ATF) in Chiang Mai, Thailand, from January 22-26 by hosting artistic performance to promote Việt Nam tourism.

    This will help promote Việt Nam’s integration into ASEAN, helping define its role as an active member state of the eastern community.

    The involvement also aims to promote Việt Nam as a safe, friendly and attractive destination to ASEAN countries and help prepare the country’s role in hosting ATF 2019.

    The Chiang Mai forum is also an opportunity for localities and Việt Nam tourism agencies to work with international tourism agencies and organisations.

    Việt Nam will join a series of activities, including a meeting of ASEAN national tourism organisations with China, Japan and South Korea, talking to ASEAN tourism ministers, and meeting with consultation teams from Russia and India.

    The Việt Nam Department of Tourism will co-operate with localities and businesses to organise a Việt Nam tourism booth in a Travel Exchange (TRAVEX) trade fair.

    Việt Nam will also host a press briefing on its tourism and services as well as promoting the Hà Nội – Ninh Bình – Hạ Long triangle. The event introduces Việt Nam as the host of the forum next year in Hạ Long city.

    The Ministry of Culture, Sports and Tourism will also host a Việt Nam Night for more than 700 people. Traditional arts performance and an áo dài catwalk show will be featured.

    ATF is hosted on a rotational basis among the ASEAN countries.

     

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