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Tag: Vietnam

  • India, Vietnam race in rice market

    India, Vietnam race in rice market

    Rice prices gained this week in India as Bangladesh continued to lap up the staple grain from its neighbour, while prospects of deals with the Philippines saw rates climb for the first time in three weeks in a relatively quiet Vietnamese market.

    In Vietnam, benchmark 5 percent broken rice rose to $400 a ton, free-on-board (FOB) Saigon, ending a three-week flat trend within the $390-$395 range, and boosted by prospects of deals with the Philippines, traders said.

    “Prices edged up on market talk that the Philippines would invite tenders to buy 250,000 tonnes at the end of January,” a trader in Ho Chi Minh City said.

    However, trading remained thin due to depleted stocks in the world’s third-largest rice exporter, while Vietnam’s major winter-spring crop would be ready only by the end of February, traders said.

    Vietnam plans to sell close to a 23 percent stake in the country’s main rice exporter Vinafood II through an initial public offering.

    Top exporter India’s 5 percent broken parboiled rice prices rose by about $2 per tonne this week to $423-$427.

    Traders from Bangladesh are aggressively buying new-season crop since prices in Bangladesh are still elevated, said an exporter based in Kakinada in the southern state of Andhra Pradesh.

    India’s rice exports likely jumped 22 percent in 2017 to a record 12.3 million tonnes as Bangladesh ramped up purchases after flooding damaged its crops.

    As of the end of December, farmers in India had cultivated winter-sown rice on 1.88 million hectares, 44 percent higher than a year earlier.

    Prices were also higher in another major Asian exporter, Thailand, with the country’s benchmark 5 percent broken rice gaining to $395-$410, FOB Bangkok, from $393-$396 last week on an appreciating baht and lower supplies.

    The baht has gained 1.6 percent versus the U.S. dollar so far this year and been Asia’s best-performing currency.

    “Rice prices have increased due to a stronger baht, lower supplies due to the effects of floods, as well as a recent 200,000-tonne export deal with Indonesia,” a Bangkok-based rice trader said.

    The Ministry of Commerce forecast Thailand to export 9.5 million tonnes of rice, worth $4.7 billion, in 2018.

    “I think this target is achievable. It’s lower than last year’s record figure of over 11 million tonnes probably due to a stronger Thai baht and bad weather conditions affecting supplies,” said another trader based in Bangkok, adding, “Demand has remained fairly constant.”

    Thai prices are likely to be on an upward trend over the next few weeks, traders said.

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  • Korea’s Caffe Bene sees the end

    Korea’s Caffe Bene sees the end

    Korean coffee chain Caffe Bene has collapsed, filing for a court-led restructuring scheme on Friday.

    Yonhap news service reports the court will soon decide whether to put the ailing coffee chain under its receivership or commence liquidation.

    The legal move follows a protracted slump and mounting losses, the company said. In 2016, the company lost about US$32 million on sales of $73 million, down 32 per cent on the previous year. At that time it operated 800 stores in Korea, a figure it said would shrink as it restructured, and about 50 in the US.

    Launched in 2008, Caffe Bene expanded to become one of South Korea’s largest coffee franchises, opening more than 1000 stores in five years, but lost ground in the saturated coffee market. While its US website claims it has opened 1600 stores worldwide, the exact number still trading is difficult to ascertain. It has opened in Vietnam, the US, China, Canada, Brunei, Singapore, Japan, Indonesia, the Philippines, Saudi Arabia, Malaysia, Cambodia and Mongolia.

    But the international foray has met with mixed success. The Cambodian store has already closed and the last Facebook post by the Singapore cafe is dated February last year. In Vietnam several stores have opened and closed, including its downtown flagship which drew huge queues when it opened in 2014. Three outlets remain trading there, but it is not clear if they are franchised or company-owned.

    The company also appears to have exited the Canadian market.

    While rapid growth in the consumption of brewed coffee drove up the Korean coffee industry’s overall expansion, Caffe Bene was unable to match the growth rate at home.

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  • Red Wok invests in Quan Ut Ut chains

    Red Wok invests in Quan Ut Ut chains

    Vietnam’s F&B group Red Wok has invested in Quan Ut Ut Barbecue, which owns the American-style restaurant of the same name as well as craft-beer brand BiaCraft.

    Red Wok will support Quan Ut Ut with business services, technology and marketing management with the aim of helping it to expand. The level of investment has not been disclosed.

    Backed by Mekong Capital, Red Wok plans to invest in small-scale dining chains, with fewer than 10 restaurants, over the next three years. It so far has interests in Wrap & Roll, Cuon Viet and Lau Bo Sai Gon Vivu, which has 25 locations nationwide and six franchised outlets in Singapore and Shanghai.

    Founded in 2014, Quan Ut Ut Barbecue has four branches in Ho Chi Minh City.

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  • Vietnam to celebrate its new retail sales highest record US$129 billion

    Vietnam to celebrate its new retail sales highest record US$129 billion

    Spurred by a rising middle class and influx of international retailers, Vietnam retail sales hit a record US$129.6 billion last year.

    This was growth of 10.9 per cent over 2016, according to the Vietnam General Statistics Office (GSO).

    Vietnam’s largest real estate company, Vingroup, starting expanding its Vinmart Plus convenience store chain in 2016 and has already topped 1000 stores – it opened 100 last month alone. It is predicted the store network could reach 3000 this year.

    Meanwhile, Vietnam last year saw the arrival of a slew of foreign retail brands, headed by Japan’s Seven & I Holdings opening its first Vietnamese 7-Eleven convenience store in Ho Chi Minh City in June.

    Swedish fast-fashion brand H&M followed in September with a store in the same city, while Zara, the chain of Spanish rival Inditex, opened its second Vietnam location in Hanoi in November (its first store, covering two levels, launched at Vincom Centre Dong Khoi in Ho Chi Minh City in September 2016).

    Thailand’s Central Group has made several acquisitions in Vietnam, including the Big C supermarket chain and electronics retailer Nguyen Kim Trading. It also launched its first stationery and office supplies store in Vietnam last year.

    South Korea’s GS Retail partnered with Vietnam’s Son Kim Group 12 months ago to open the first of their convenience stores in Ho Chi Minh City this month. They plan to open 2000 locations within 10 years.

    Double-digit growth

    Since joining the World Trade Organisation in 2007 and opening up to foreign goods and businesses, Vietnam has seen continued double-digit growth, led by a 31.5 per cent spike in 2008. With the Association of Southeast Asian Nations Economic Community taking full effect this month, Vietnam has eliminated nearly all tariffs on goods from within the region.

    Meanwhile, supermarkets and convenience stores are selling meat and vegetables at prices that are 20 to 30 per cent higher than at traditional markets, and the number of specialty shops selling organic vegetables is growing.

    Spending on cars, home electronics and other consumer durables is also brisk, with 70 per cent of Vietnam’s GDP coming from personal consumption.

    The GSO says auto sales grew by 14 per cent in value, gemstone and precious metals by 13.2 per cent, food and foodstuffs by 11.1 per cent, cultural and educational products by 10.2 per cent, apparel by 9.6 per cent, and home products by 8.5 per cent.

    Vietnam still has room for growth as modern retail channels like supermarkets and shopping centres account for only a quarter of total retail sales, and most of these businesses are in big cities, reports VIetnamNet. By 2020, the proportion of modern retail channels is forecast to rise to 45 per cent.

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  • Vietnam to tighten tax control as it legalizes Grab, Uber after 2-year trial

    Vietnam to tighten tax control as it legalizes Grab, Uber after 2-year trial

    Ride-hailing apps Grab and Uber are to be officially authorized in Vietnam after completing trial runs, but the government has pledged to impose the stricter controls it currently imposes on local transport firms.

    The phone-based transport services have created healthy competition but they need to be regulated, the Ministry of Transport said.

    Director of the ministry’s transport department, Tran Bao Ngoc, said that ride-hailing services will have to register their businesses with investment authorities and the transport ministry and the tax authorities.

    “Tax agencies will keep track of fares so management can be more transparent,” said Ngoc.

    Ho Chi Minh City’s Tax Department is looking to collect more than VND53 billion ($2.34 million) in suspected back taxes from Uber by January 10. The department has asked five commercial banks to help retrieve the money.

    Uber Vietnam, a subsidiary of Uber International Services Holding B.V. based in the Netherlands, filed a lawsuit last month, saying that it is not subject to taxes according to Vietnam’s agreement on double taxation avoidance with the Netherlands.

    But the city court dismissed the lawsuit earlier this week, saying Uber Vietnam does not have the legal status for such action.

    Grab and Uber arrived in 2014 and operate both car and motorbike taxi services. The two services have been running on a trial basis since early 2016, but have been caught up in a war with traditional taxi drivers.

    Many taxi firms have accused Grab and Uber of “unfair competition” that has hindered their businesses and caused thousands of drivers to quit.

    Last September, Hanoi Taxi Association said Uber and Grab had been transferring around $150 million overseas every year to evade taxes. Grab denied the accusation.

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  • Vietnam’s credit growth hit 18.17 pct in 2017

    Vietnam’s credit growth hit 18.17 pct in 2017

    Vietnam’s banking sector posted an estimated 18.17 percent in loan growth in 2017, the Ministry of Finance said on Monday.

    On December 29, Vietnam’s General Statistics Office said that credit expanded by an estimated 16.96 percent during the year.

    At the same time, the statistics office announced that Vietnam’s economy grew by 6.81 percent during 2017, compared with 6.61 percent the year before, the highest in a decade.

  • Vietjet converts order for 42 A320neo to A321neo

    Vietjet converts order for 42 A320neo to A321neo

    Vietjet will convert its existing order for 42 A320neo to the superior and larger A321neo, bringing to a total of 73 A321neo and 11 A321ceo on order for future delivery. The agreement was signed recently by Vietjet President and CEO Nguyen Thi Phuong Thao and Fabrice Brégier, Airbus Chief Operating Officer and President Commercial Aircraft.

    The first A321neo “new engine option”, registered as VN-646, has also arrived at Tan Son Nhat International Airport from Hamburg recently, marking a major milestone for Vietjet as it has become the first airline in Southeast Asia to operate the Airbus aircraft powered by Pratt & Whitney’s latest-generation GTF engines.

    Fitted out with 230 comfy leather-covered seats and high-quality carpeting, the first five rows of Vietjet’s spacious new A321neo have been especially designed to accommodate passengers flying Skyboss, the airline’s premium service. The aircraft’s interior also features a unique color-changing LED light system and striking décor to create a comfortable and refreshing ambience throughout the whole cabin.

    The brand new A321neo incorporates the latest in engine design, advanced aerodynamics and cabin innovations. According to the aircraft manufacturer, its GTF engines offer a significant reduction in fuel consumption — at least 16 percent from day one and 20 percent by 2020 — as well 75% reduction in noise and 50% in emissions.

    The A321neo is also the 17th aircraft Vietjet has received in 2017 alone, increasing its total fleet to 55. The new aircraft has begun operating on domestic and international routes to and from Vietnam as of January 2018.
    “We are proud when a dynamic airline like Vietjet endorses our products,” said Fabrice Brégier, Airbus Chief Operating Officer and President Commercial Aircraft. “The A321neo combines higher capacity with the lowest operating costs in its class, offering unbeatable efficiency. This aircraft will be a real asset in Vietjet’s expansion plans in such a fast-growing market. We look forward to seeing the A321neo flying in Vietjet colours.”

    “The A320 family aircraft has greatly contributed to Vietjet’s impressive operation performances with the airline’s technical reliability rate standing at 99.6% in 2017. The aircraft have also helped us maintain some of the lowest operating costs in the airline world,” said Nguyen Thi Phuong Thao, Vietjet President and CEO. “The upgraded A321neo deal once again emphazises Vietjet’s ceaseless efforts to modernize our fleet. We believe that the technical reliability rate and other operation and safety indexes will continue to go up in order to bring maximum comfort, joy and safety to our valued passengers.”

    The A320 Family is the world’s best-selling single-aisle product line and comprises four models (A318, A319, A320, A321) seating from 100 to 240 seats. With more than 5,300 orders received from 95 customers since its launch in 2010, the A320neo family has captured some 60 percent share of the market.

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  • Vietjet introduces first A321neo “new-engine option” aircraft to Southeast Asia

    Vietjet introduces first A321neo “new-engine option” aircraft to Southeast Asia

    New-age carrier Vietjet has become the first airline in Southeast Asia to take delivery of an A321neo (new engine option) after the Airbus aircraft landed at Tan Son Nhat International Airport from Hamburg, Germany. The A321neo, registered as VN-646, is powered by Pratt & Whitney’s latest-generation GTF engines.

    Fitted out with 230 comfy leather-covered seats and high-quality carpeting, the first five rows of Vietjet’s spacious new A321neo have been especially designed to accommodate passengers flying Skyboss, the airline’s premium service. The aircraft’s interior also features a unique color-changing LED light system and striking décor to create a comfortable and refreshing ambience through the whole cabin.

    The brand new A321neo incorporates the latest in engine design, advanced aerodynamics and cabin innovations. According to the aircraft manufacturer, its GTF engines offer a significant reduction in fuel consumption — at least 16 percent from day one and 20 percent by 2020 — as well 75% reduction in noise and 50% in emissions. The engines were first introduced by Pratt & Whitney in 2016. Vietjet is one of the very first airlines in the world to incorporate the engines to its aircraft. The A321neo is also the 17th aircraft delivered to Vietjet from Airbus in 2017.

    The new aircraft will begin operating on domestic and international routes to and from Vietnam in January 2018. On receiving the aircraft, Vietjet also announced its decision to upgrade an existing order for 42 A320neo aircraft to the superior, and larger, A321neo models. Accordingly, the airline now has a total of 73 A321neo and 11 A321ceo on order for future delivery.

    “We are proud when a dynamic airline like Vietjet endorses our products,” said Fabrice Brégier, Airbus Chief Operating Officer and President Commercial Aircraft. “The A321neo combines higher capacity with the lowest operating costs in its class, offering unbeatable efficiency. This aircraft will be a real asset in Vietjet’s expansion plans in such a competitive market. We look forward to seeing the A321neo flying in Vietjet colours.”

    “The A320 family aircraft has greatly contributed to Vietjet’s impressive operation performances with the airline’s technical reliability rate standing at 99.6% in 2017. The aircraft have also helped us maintain some of the lowest operating costs in the airline world,” said Nguyen Thi Phuong Thao, Vietjet President and CEO. “The upgraded A321neo deal once again emphazises Vietjet’s ceaseless efforts to modernize our fleet. We believe that the technical reliability rate and other operation and safety indexes will continue to go up in order to bring maximum comfort, joy and safety to our valued passengers.”

    The A320 Family is the world’s best-selling single-aisle product line and comprises four models (A318, A319, A320, A321) seating from 100 to 240 seats. With more than 5,300 orders received from 95 customers since its launch in 2010, the A320neo family has captured some 60 percent share of the market.

  • H&M to open its third store in Vietnam

    H&M to open its third store in Vietnam

    H&M Vietnam is opening its third store, at Ho Chi Minh City’s Vincom Mega Mall Thao Dien.

    The fast-fashion outlet will open on January 27 with limited-edition gifts for its first customers.

    The Swedish brand arrived in Vietnam four months ago, launching at Vincom Dong Khoi in Ho Chi Minh City. A second store followed at Vincom Mega Mall Royal City Hanoi, with more planned to open across Vietnam in the next two years.

    H&M has more than 4500 stores in more than 63 countries.

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  • Xiaomi opens first authorised Mi store in Vietnam

    Xiaomi opens first authorised Mi store in Vietnam

    Xiaomi has officially opened its first Mi Store Vietnam, 10 months after entering the market.

    The authorised store is located in Ho Chi Minh City’s Crescent Mall and is operated in partnership between Xiaomi and local company DigiWorld.

    The partnership was signed in March, which allows DigiWorld to distribute Xiaomi products to other retailers such as Mobile World, Aeon and FPT, both online and offline.

    On opening day, the Mi Store attracted long queues of the Chinese brand’s fans thanks to new product launches and promotions.

    Apart from smartphones and accessories, the store also offers laptops and household items such as vacuum robots, smart scales, bedside lamps and air purifiers.

  • Economists predict bright outlook for Vietnam in 2018

    Economists predict bright outlook for Vietnam in 2018

    Vietnam’s economy has the potential to thrive this year with more foreign direct investment (FDI) and export revenue, but low productivity remains a concern, economists said.

    Last month, the Asian Development Bank (ADB) lifted its economic growth forecast for Vietnam to 6.7 percent in 2018 from its previous projections of 6.3 to 6.5 percent. The World Bank gave a more conservative forecast of 6.5 percent.

    After a 10-year high GDP growth of 6.81 percent in 2017, the government expects the economy to expand 6.5-6.7 percent this year.

    Being an export oriented economy, Vietnam’s somewhat surprisingly fast growth last year owed a lot to the recovering global economy, which expanded 3 percent in 2017, the highest rate since 2011.

    This trend will continue, said economist Vo Tri Thanh.

    Vietnam’s export revenue expanded by 21 percent last year against 2016 to $213.7 billion, the highest in the past five years. Following what Prime Minister Nguyen Xuan Phuc called a “year of records”, the country is targeting export growth of 7-8 percent this year.

    Favorable investment climate

    Investors are positive too, and the sentiment is forecast to continue in 2018 stemmed from confidence in Vietnam’s economic prospects, economist Nguyen Tri Hieu told VnExpress International.

    The favorable investment climate will be aided by projected stable foreign currency, inflation and interest rates in 2018, Hieu said.

    Following 10-year highs in the third quarter of 2017, the VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, surpassed 1,000 points on January 3 for the first time since the global financial crisis in 2007.

    RongViet Securities Corporation in Saigon said in a report that the VN-Index will increase at least 17 percent this year or even 67 percent in its best scenario, meaning it could end the year somewhere between 1,170 and 1,640.

    The market will be boosted by interests from the foreign sector, said Nguyen The Minh, a senior analyst at Saigon Securities Incorporation. Foreign investors made more than $1 billion of net purchases last year, the highest amount in five years, and they will continue to stick around for more privatization of public giants.

    Foreign direct investment inflow in 2017 also fared well by reaching $35.88 billion, up 44 percent against 2016, according to the Ministry of Planning and Investment – another 10 year high.

    “The FDI scene in the economy continues to thrive,” Forbes quoted Dustin Daugherty, senior associate in business intelligence with consultancy firm Dezan Shira & Associates in Ho Chi Minh City, as saying. “While a lot of attention is paid to big name deals, the number of small to medium-sized enterprises and smaller multinational company investors continues to tick up, and enthusiasm is very high.”

    Foreign investors in the likes of electronics and polyester yarn factories still love Vietnam for its low costs, abundance of labor and matter-of-fact permitting process, analysts on the ground said.

    “I think next year will be as good or better than this,” Daugherty said. “We are not yet at peak for the growth rate.”

    A recent report by auditing firm PricewaterhouseCoopers (PwC) echoed the enthusiasm, saying: “Vietnam is at a tipping point in its economic development led by free trade agreements (FTAs) such as the EU-Viet Nam FTA and an increasingly deregulated business environment.”

    Vietnam’s Greenfield FDI Performance Index has also topped emerging economies, surpassing Malaysia and Thailand on attracting foreign capital, the report found.

    Structural challenges

    However, Vietnam still faces many challenges in boosting economic growth, as the economy still depends on low-cost labor force, outdated technology, and exhausting natural resources, said Hoang Quang Phong, vice chairman of the Vietnam Chamber of Commerce and Industry.

    Most local enterprises remain small and uncompetitive, he added. Vietnam now houses some 700,000 operational firms, but 60 percent of them are not profitable.

    There may also be a slow-down in structural reforms as the government is trying to cut down on spending and investment for a leaner budget deficit and to contain public debt, the World Bank has warned.

    Public investment fell to 16 percent of total spending in the first nine months of 2017, compared with an average of 25 percent in recent years.

    “Structural reform remains a central priority in view of tepid productivity growth” said Sebastian Eckardt, the World Bank Lead Economist for Vietnam, “Building on progress already made, Vietnam can further lift productivity growth through investments in needed infrastructure and skills as well as deeper reforms of the business environment, SOE [state owned enterprise] and banking sector.”

  • VIMO to provide Wechat payment at Airport outlets in Vietnam

    VIMO to provide Wechat payment at Airport outlets in Vietnam

    Dealers are now turning their attention to the release later in the day of key U.S. jobs data, which is expected to show the world’s top economy continuing to improve.

    A forecast-smashing reading Thursday on private take-ups boosted optimism, which had already been bolstered by U.S. tax cuts, healthy corporate profits and strong manufacturing figures from around the world.

    Global markets powered ahead in 2017 as economies showed long-running improvements after years of faltering.

    Greg McKenna, chief market strategist at AxiTrader, said in a note that data from the manufacturing and services sectors “suggests economic strength across the globe remains robust”.

    He noted that an index of world factory activity was at its highest level in seven years.

    On Wall Street the Dow ended above 25,000 for the first time, leading records across Wall Street.

    In Tokyo the Nikkei ended up 0.9 percent at a 26-year high following its more than three percent jump Thursday, while Sydney added 0.7 percent.

    Seoul rose 1.3 percent, with dealers buoyed by news that North Korea had accepted the South’s offer of talks next week, further easing geopolitical tensions in the region.

    Shanghai closed 0.2 percent higher but Hong Kong lost 0.1 percent and Singapore eased 0.2 percent.

    Pause in oil?

    While oil prices inched down in Asia they remain elevated after recent rises to around three-year highs thanks to Middle East tensions, while the U.S. sees stockpiles fall as it is hit by a severe cold snap.

    The latest gains have given impetus to petroleum-linked firms, sending them rallying this week. In Hong Kong Sinopec was up two percent while CNOOC was also higher. Woodside Petroleum in Sydney was up along with Santos, though Tokyo-listed Inpex eased.

    However, Ric Spooner, a Sydney-based analyst at CMC Markets, said: “There’s been a one-way, very steep and uninterrupted rally off the last minor low in mid-December near $56, so it won’t be surprising to see a pause here.”

    On forex markets the dollar rose slightly against the euro, but the single currency remains buoyant with the eurozone continuing to improve, which raises the chances of a reduction in the region’s massive stimulus programme, bringing monetary policy in line with the Federal Reserve.

    McKenna added: “It’s again the story of a weaker U.S. dollar as the fact its data is solid and improving is lost on traders focused on expectations that the EU strength will drive the European Central Bank to chase the Fed, and that synchronised global growth will, in fact, drag most central banks along the tightening path.”

  • HCMC court drops Uber’s lawsuit against tax demand

    HCMC court drops Uber’s lawsuit against tax demand

    A court in Ho Chi Minh City has dismissed a lawsuit against the city’s tax department by Uber after the ride-hailing firm asked the court to stop the department from charging it with a million-dollar sum of tax.

    The HCMC’s tax department earlier asked five local commercial banks to help collect more than VND53 billion ($2.34 million) of what it believed was back taxes from Uber between January 1 and 10 of 2017.

    Instead, Uber Vietnam, a subsidiary of Uber International Services Holding B.V. based in the Netherlands, then filed a lawsuit against the department.

    On December 29, the department received an emergency notice from the court, saying that its collection of tax from Uber would be put on hold.

    The court has since dropped the lawsuit because Uber Vietnam “does not have the required legal status for such a case.”

    At the same time, it has also removed the suspension on tax collection, a source from the department said on Wednesday.

    “With this new decision from the court, the HCMC’s Tax Department will continue to force Uber to pay tax by asking for help from commercial banks,” said an official from the department who wished to remain anonymous.

    Specifically, Uber will have to transfer its income into the bank accounts of the tax department instead of handing it over to its headquarters in the Netherlands as it has been doing so far.

    This process will last until the tax authorities collect enough $2.34 million in tax from the company.

    In September, the department ordered Uber to pay VND66.7 billion of back taxes and tax evasion penalties by December 23.

    But the company has only paid VND13.3 billion. It has complained to Vietnam’s Ministry of Finance that it is not subject to paying taxes according to Vietnam’s agreement on double taxation avoidance with the Netherlands, where it is based.

    Uber International Services Holding B.V. has been repeatedly accused of tax evasion since bringing its ride-hailing business to Vietnam in mid-2014.

    Yet Vietnam’s finance ministry said the company has to pay taxes for the income it generates in Vietnam.

    Traditional taxi companies in Vietnam have used the tax issues to accuse Uber and Grab for putting up unhealthy competition.

  • Bullish investors can bring Vietnam’s stock market to record high in 2018

    Bullish investors can bring Vietnam’s stock market to record high in 2018

    Vietnam’s stock market is expected to keep its upbeat sentiment of 2017 and drive the benchmark VN-Index to an all-time high at year end, analysts said.

    The Vietnam Stock Index (VN-Index), a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, already reached 1,000 points on Wednesday, the highest since the global financial crisis in 2007.

    It closed at 984.24 on the last working day of 2017, wrapping a bullish week and setting a 10-year high.

    Analysts believe the momentum will continue and bring the index to surpass the record 1,178 points in 2007.

    The market is seeing very low risks, and high confidence for growth, they said.

    RongViet Securities Corporation in Saigon said in a report that VN-Index will increase at least 17 percent this year or even 67 percent in its best scenario, meaning it could end the year somewhere between 1,170 and 1,640.

    Nguyen The Minh, a senior analyst at Saigon Securities Incorporation, was more specific.

    “VN-Index can reach 1,050 points in the short term and 1,300 at year end,” he said.

    Minh said stocks that have not received much attention last year should create big potentials now.

    The market in 2017 was driven by consumer goods stocks, but banking and energy will take the lead this year, he said.

    Minh said the market will be boosted by interest from the foreign sector. Foreign investors made more than $1 billion of net purchase last year, the biggest in five years, and they will continue to stick around for more privatization at public giants.

    Bloomberg called Vietnam a “frontier market” in Asia last year, as it was the biggest gainer in percentage terms: a 47 percent gain in the VN-Index. The market capitalization increased almost double to nearly $150 billion, fueled by state-owned company sales and listings, it said.

    Vietnam’s economy grew 6.8 percent in 2017, breaking its own 6.7 percent target which both government officials and economists had considered ambitious.

    The country remains one of the fastest growing economies in the world and has set the goal to expand another 6.7 percent this year.

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  • Vietnam confirms plan to fly non-stop to California in 2018

    Vietnam confirms plan to fly non-stop to California in 2018

    Vietnam’s government has approved plans to expand its air network to major markets including Australia, China, Europe and the United States starting from this year.

    According to the plan, Vietnam Airlines will go through with its proposal to open non-stop services to the U.S., starting with direct flights to the west coast in 2018. The national carrier is considering between San Francisco and Los Angeles.

    The U.S. proposal was revealed a couple of years ago and received much excitement, given busy travel between the countries. The U.S. is the fourth largest source of foreign visitors to Vietnam, with more than 614,000 people coming in 2017, up 11 percent from the previous year, according to the General Statistics Office.

    Aircraft manufacturer Airbus said in September 2016 that it had signed an MoU with Vietnam Airlines to deliver 10 A350-900 aircraft, which will be used for non-stop flights to the U.S.

    But the giant economy across the Pacific is just part Vietnam’s sky plan.

    For its neighbor China, Vietnam is set to open dozens of new flights by 2020.

    The new routes will connect Can Tho, Da Lat, Da Nang, Hai Phong, Hue, Nha Trang and Phu Quoc Island of Vietnam with at least 17 Chinese destinations: Changchun, Chongqing, Dalian, Fuzhou, Guilin, Guiyang, Haikou, Hainan, Harbin, Lanzhou, Ningbo, Shenyang, Wuhan, Xi’an, Xiamen, Xishuangbanna and Zhengzhou.

    Current flights to Beijing, Chengdu, Guangzhou and Shanghai will increase passenger load by adding to their frequency and using bigger aircraft, according to the development plan which has been approved by Prime Minister Nguyen Xuan Phuc.

    Chinese passengers to Vietnam surged nearly 50 percent to more than 4 million in 2017, accounting for nearly a third of foreign arrivals to the country.

    Vietnam’s aviation development plan also involves new flights to Australia, France, India, Japan, Malaysia, Russia, South Korea, Thailand, and the U.K., all of which now benefit from Vietnam’s e-visa and visa waiver programs.

    The country welcomed nearly 13 million foreign visitors and raked in nearly VND515 trillion ($22.7 billion) from tourism in 2017. It hopes the new air routes will bring the number of visitors up to 17-20 million in the next two years, when tourism money will contribute 10-12 percent to the economy, compared to the current 7 percent.

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