Tag: Vietnam

  • Hurom Juice Cafe expansion plan in Vietnam

    Hurom Juice Cafe expansion plan in Vietnam

    Vietnam’s eighth Hurom Juice Cafe has opened in the central coastal city of Danang.

    Close to the tourism hotspot My Khe Beach, the cafe serves Korean desserts, tropical fruit bingsu (ice flakes), paninis, sandwiches and brunch as well as juices.

    A second Danang outlet will open close to the Dragon Bridge near the end of this month.

    A Korean manufacturer of juicers and kitchen gadgets, Hurom entered Vietnam in 2014 and has established its cafes in Ho Chi Minh City and Hanoi.

    It also has cafes in Australia, China, Europe, Malaysia, Singapore, Thailand and the US. The company advocates fresh fruits and vegetables for healthier eating.

  • Vietnam’s economic growth to accelerate in 2018

    Vietnam’s economic growth to accelerate in 2018

    The forecasts are in and Vietnam can gloat again after a scare in early 2017.

    Economic growth next year will reach as high as 6.7% in 2018, better than in 2017, the prime minister predicted in October 2017.

    The Asian Development Bank forecasts 6.5%, but higher than 2017 and stronger than developing Asia overall. Even the more cautious World Bank estimates more growth next year than this year.

    As of early 2017, drought had afflicted farming while mining faced high production costs and declining sales prices abroad. U.S. President Donald Trumps decision in January to withdraw his country from the Trans Pacific Partnership trade pact further stood to whack Vietnam as a signatory and major exporter. Policymakers fretted that the country would miss growth targets.

    But those setbacks registered as blips at best for Vietnam’s overall $202 billion GDP. The nominally communist Southeast Asian country that opened to foreign investment in 1986 is still seeing a buildup of that capital from offshore.

    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 say. Growth has also helped make people wealthier, leaving just 13.5% in poverty, a boon to investors who sell locally.

    “We can reasonably infer that high registered foreign direct investment (FDI) in 2017 will result in high disbursed FDI in 2018, yet another year to post double-digit growth in FDI disbursement,” financial services firm SSI Research says in a note this month.

    Registered foreign direct investment increased 44% year-on-year through Dec. 20 to $29.68 billion, according to the Ministry of Planning and Investment.

    Foreign-operated factories make goods mainly for export and exports had risen 23% to $155.24 billion over the bulk of 2017, SSI Research says. Most offshore investment comes from South Korea, Singapore, Japan and Taiwan, all places where manufacturing costs more than in Vietnam.

    Investors come for a labor force that’s famously young, trainable and willing to work for a minimum wage of $172 per month. About 60% of the 93 million Vietnamese are of working age. Starting a business is getting more efficient permit-wise and most industries allow foreign investment of 100%, according to this guide by PwC (Vietnam) Ltd.

    It’s little wonder that Samsung Display made an “additional investment” of $2.5 billion this year, per SSI Research data. The display unit of of South Korean multinational Samsung Electronics will have parked $6.5 billion in Vietnam with the new outlay. In another major foreign investment move, Taiwanese-owned Polytex Far Eastern registered a $490 million factory for polyester yarn production.

    Thai Beverage’s proposed investment of 25% to 51% in the major Vietnamese brewery Sabeco, though not a direct factory sort of deal, points to further keenness on Vietnam itself.

    “The FDI scene in the economy continues to thrive,” says Dustin Daugherty, senior associate in business intelligence with the consultancy Dezan Shira & Associates in Ho Chi Minh City. “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.”

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

  • RoK’s GS25 to open convenience stores in Vietnam

    RoK’s GS25 to open convenience stores in Vietnam

    GS25 Vietnam says it will open its first store in Ho Chi Minh City in mid-January, after a two-month delay.

    Three more stores will open soon afterwards.

    Last July, GS25’s parent company GS Retail signed a JV agreement with Vietnam’s Son Kim group to open 2500 GS25 Vietnam stores during the next 10 years.

    Vietnam will be GS Retail’s first foreign market.

    After its Vietnam launch, GS Retail plans to seek opportunities in other markets.

    Vietnam’s convenience store industry is currently experiencing annual growth of 70 per cent, fuelled by a youthful population.

    Last June, 7-Eleven opened its first Vietnam store, and now operates 11 in Ho Chi Minh City, with plans for 100 within 10 years.

  • Japanese, Thai goods reach every corner of Vietnamese market

    Japanese, Thai goods reach every corner of Vietnamese market

    Several years ago, fans of Thai and Japanese goods had only several choices – either buying the products carried across border gates, or going to a few select shops. But now, they can freely choose products at many specialized stores. Specialized shops are mushrooming

    A report from MOIT (Ministry of Industry and Trade) shows that the deficit in trade with Thailand in the first eight months of the year reached $3.5 billion.

    Thai products are available at 9,000 traditional markets, supermarkets and home appliance distribution centers. In large cities, Thai goods account for 30-50 percent of the market share.

    The others are run by world giants such as Lotte, Aeon and Emart. Metro alone has 19 retail points, while Big C has 32.There are about 100 retail points belonging to foreign invested supermarkets in Vietnam, half of which belong to Thai investors.

    Meanwhile, Japanese have been penetrating deep into Vietnam through big retail chains such as Aeon, Ministop, Family Mart, Tokyo Deli, Gyu Kaku, Oshaka Ohsho and 7-Eleven.

    The Sakura chain has opened 10 shops after six years in Vietnam, while Tokyo Life has 18 shops in Hanoi, two in HCMC and 35 in other provinces.

    Pham Chi Lan, a renowned economist, said Thai firms had been following a strategy to enter the Vietnamese market for a long time.

    Thai businesses understand that Vietnam, with high economic growth rate, young population and increasingly high consumption, will be a vast market once tariff barriers are removed.

    They have spent time studying Vietnamese consumer psychology and followed professional methods to win over customers.

    Vietnam imports a wide range of products from Thailand, from household electrical appliances to vegetable and fruits, and CBU cars and cosmetics.

    Vietnam also imports products which are locally made, such as household-use products, computers and plastics.

    Minister of Industry and Trade Tran Tuan Anh once asked why Thais could bring their products to the Vietnamese market but do not do this with other ASEAN countries, including Indonesia and the Philippines.

    Analysts believe the most important reason is the large distribution networks that Thais have set up in Vietnam.

    Thai corporations like Central Group and TCC Group have spent big money to take over the largest distribution chains in Vietnam, paving the way for Thai products to enter Vietnam.

    Meanwhile, a branding expert commented that Thai and Japanese goods can thrive in Vietnam because manufacturers receive support from their government agencies.

    “Japanese agencies have set up dedicated divisions to support small and medium enterprises in their country,” he said.

     

  • Saigon cafés, restaurants facing the heat for accepting Bitcoin payments

    Saigon cafés, restaurants facing the heat for accepting Bitcoin payments

    Authorities in Ho Chi Minh City will be working with the country’s central bank to “handle violations” at several restaurants and coffee shops in the city that have been accepting Bitcoin as payment, an official from the bank said on Tuesday.

    Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s Ho Chi Minh City branch, maintained that virtual currencies such as Bitcoin are illegal, and the issuance, provision and use of Bitcoin violates the rules.

    Several coffee shops and restaurants in the city have been accepting Bitcoin as payment so the municipal administration has agreed to cooperate with the central bank to deal with these violations, Minh told a meeting with the central bank’s deputy governor Dao Minh Tu.

    “We have also asked the city’s police department to work with us.”

    The heaviest punishment for using cryptocurrencies in Vietnam is a fine of VND200 million ($8,800).

    However, we found a restaurant in District 1 that allows customers to pay for their drinks and pizzas using Bitcoin.

    A staff there said customers only need a Bitcoin code to pay for their meals, adding that this method is more beneficial for the restaurant because Bitcoin payments do not appear on tax declarations.

    Prices at the restaurant follow the current value of Bitcoin on the world market, which was $16,500 on Wednesday.

    The value of the cryptocurrency has been rising rapidly this year, reaching an all-time high of $19,783 on Sunday, an increase of 20 times compared to January.

    The heat that Bitcoin has created globally has been felt in Vietnam, and 1,478 pieces of hardware were imported into the country to “mine” for the currency in the first ten months of this year, according to official government data.

    As explained by Business Insider and Investopedia, the process of mining Bitcoins involves miners solving complex mathematical problems, and the reward is more Bitcoins generated and awarded to them.

    The participant who solves the puzzle first gets to place the next block on the block chain, a public ledger that records all Bitcoin transactions, eliminating the need for a third party to process payments, and claim the rewards.

    Miners verify transactions and prevent fraud, so more miners equals faster, more reliable and more secure transactions. According to current Bitcoin protocol, 21 million coins is the cap and no more will be mined after that number has been reached.

    Yet as currently regulated, the hardware imported into Vietnam for Bitcoin mining is not prohibited.

    In October, the central bank issued a statement saying that “from January 1, 2018, the act of issuing, supplying or using illegal means of payment may be subject to prosecution in accordance with the provisions of Article 206 of the Penal Code 2015.”

    The only payment methods allowed in the country are issued or controlled by the State Bank.

    The central bank has warned organizations and individuals in Vietnam not to invest in Bitcoins or conduct transactions in the currency, saying they would be taking a huge risk with no legal protection.

    “Bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion and illegal payments,” the bank said.

    Also in October, Vietnam’s top technology university FPT said it was looking at ways to let its students pay their tuition fees using Bitcoin.

  • NBA Teams for Online Stores in APAC

    NBA Teams for Online Stores in APAC

    In partnership with the US National Basketball Association (NBA), sports merchandise e-commerce company Fanatics has launched official NBA online stores across Asia Pacific.

    Fanatics already runs the flagship NBA Store in New York City, the league’s global e-commerce site and its official online store for Europe.

    It has now opened official online stores in Cambodia, Japan, Laos, Malaysia, Singapore, Thailand and Vietnam, as well as Australia and New Zealand. These offer a range of men’s, women’s and youth products from all 30 NBA teams, including oncourt apparel from official outfitter Nike and products from a range of NBA merchandise partners including Mitchell & Ness and New Era.

    There are also exclusive products, including personalised team jerseys.

    As well as paying in local currency, online shoppers will benefit from quicker deliveries and cheaper shipping thanks to Fanatics’ centralised distribution point in Asia.

    “The NBA is becoming an increasingly global league, and we’ve seen a significant uptick in fandom across several regions throughout Asia,” says Fanatics International president Steve Davis.

    With the launch of the new online stores, the league now has 20 international e-commerce sites.

  • Vietnamese fruits struggle to gain foothold in international markets

    Vietnamese fruits struggle to gain foothold in international markets

    Vietnam is struggling to find international buyers for its tropical fruit, despite having been licensed to export by demanding markets such as the U.S, Australia, Canada and Japan.

    Starting December 29, the U.S. Department of Agriculture will allow imports of fresh mangoes from Vietnam, following in the footsteps of dragon fruit, rambutan, lychees, longan and star apple.

    Earlier this year, Australia also opened its doors to fresh dragon fruit imports from Vietnam after nine years of negotiations. Vietnam delivered its first dragon fruit shipment to the market in September, becoming the sole country allowed to ship the fruit to Australia to date.

    But despite these breakthroughs, strict requirements still make it difficult for fresh fruit to enter these markets.

    Mango exports to the U.S. are a prime example. Fresh mangoes from Vietnam will be subject to regulations that include orchard requirements, irradiation treatment and port of entry inspections.

    The fruit must also be imported in commercial consignments accompanied by a phytosanitary certificate issued by Vietnam’s Plant Protection Department.

    Even if these requirements are met, sales of Vietnamese mangoes are not guaranteed as they depend on consumer tastes and distribution, said Dam Quang Thang, CEO of fruit exporter Agricare Vietnam.

    In addition, local mangoes may find it hard to compete with those from Mexico, which has the biggest mango output in the Americas at over 1.5 million tons each year. Mexican mangoes are good quality and meet U.S. import requirements, he added.

    It’s too early to say if Vietnam will be able to export 3,000 tons of fresh mangoes to the U.S. each year as planned, equivalent to one percent of U.S. import volume and its total domestic output, Thang said.

    Another obstacle to fruit exports is high transport fees that raise retail costs in overseas markets.

    For example, Vietnamese dragon fruit is sold for $8 per kilogram in the U.S., 10 times higher than prices in the local market, while Vietnamese lychees are sold for $16 per kilogram in Australia, 16 times higher than at home, according to some fruit exporters.

    Vuong Dinh Khoat, director of local fruit exporter Hugo, said aviation fees often account for more than half of Vietnamese fruit export prices.

    A representative from a fruit exporter in the southern province of Binh Duong said her firm had to temporarily halt shipments of mangoes to Japan because of high transport fees that made the product uncompetitive.

    She said her firm had to pay an aviation transport fee of $1.8 per kilogram of mangoes shipped to Japan, 50 percent higher than that paid by Thai exporters despite the shorter distance.

    Explaining the issue, she said many countries like Australia and Thailand offer transport subsidies to domestic traders to boost exports.

    Together with high aviation fees, poor trade promotions have limited Vietnam’s fruit export expansion. Despite infiltrating the U.S., local fruits are only sold in a limited number of places, such as California and New York, due to inefficient promotional activities, according to the Vietnam Fruit and Vegetable Association.

    To boost exports, the Vietnamese government should subsidize transport fees for local fruit exporters without violating its international commitments, according to industry insiders.

    Meanwhile, producers should try to apply new cultivation models and set global food safety standards as their top priority, they added.

    Major foreign currency earner

    Vietnam’s total fruit and vegetable exports hit $3.2 billion in the first 11 months of this year, marking a jump of 43.1 percent on-year and leaving other key agricultural exports far behind.

    A growing appetite among foreign consumers for Vietnamese fruit is expected to reduce the country’s reliance on China, which accounted for 70 percent of Vietnam’s fruit and vegetable exports in 2016. Local fruits are now exported to 60 countries and territories.

    At a recent session of the legislative National Assembly, Nguyen Thien Nhan, the chief of Ho Chi Minh City’s Communist Party, called for the government to focus on helping farmers grow fruit and vegetables for export to combat rural poverty.

    Last year, total export revenue from fruit and vegetables surpassed that of crude oil, Vietnam’s key export, for the first time, he said, citing that Vietnam earned $2.4 billion from shipping crude oil and $2.45 billion from fruit and vegetable exports.

    The growth of crude oil exports has slowed over the past five years, while fruit and vegetable export revenue has increased 30 percent each year, he added.

    “Fruit and vegetable export value will reach an estimated $9-10 billion by 2020, higher than crude oil even at its peak,” Nhan told legislators.

    Minister of Agriculture and Rural Development Nguyen Xuan Cuong said his ministry is reviewing farming production to help rural areas make the most of their local conditions.

    Each commune should focus on certain products for export, he said.

    “We have nearly 9,000 communes nationwide with different climate conditions and the potential to grow specialty fruit and vegetables that would create huge export earnings,” he added.

  • Thai beer magnate extends SE Asia push with $4.8 billion Sabeco deal

    Thai beer magnate extends SE Asia push with $4.8 billion Sabeco deal

    Thai Beverage has won an auction to buy a majority stake worth $4.84 billion in Vietnam’s top brewer Sabeco SAB.HM, a lofty deal that adds a major asset to the beer-to-property empire of Thai magnate Charoen Sirivadhanabhakdi.

    The deal is a big step for Charoen, the son of a Bangkok street vendor, who is emerging as one of Asia’s biggest power players in brewing. He dominates his home market with Chang beer and owns Singapore’s Fraser and Neave Ltd. The Sabeco stake will give him control of brands like Saigon Beer and 333.

    The Sabeco deal will also help Thai Beverage (Thai Bev) tap into Vietnam’s beer market, worth about $6.48 billion last year, where a young population and booming economy are an attractive lure, despite political resistance, a high minimum bid price and a cap on foreign ownership.

    Thai Bev’s local unit, Vietnam Beverage Co Ltd, was named winner of the 54 percent Sabeco stake on offer at the auction on Monday after global brewing groups stayed away. It barely had any competition as the other investor, a Vietnamese individual, bid for only 0.003 percent.

    Late on Sunday, Singapore-listed Thai Bev had said that the Vietnamese unit had submitted the registration form to participate in the bidding.

    Vietnam Beverage is owned by Vietnam F&B Alliance Investment Company, which is 49-percent owned by BeerCo Limited – an indirect but wholly-owned unit of Thai Bev, official documents about the companies showed.

    “We are very grateful for the opportunity to participate in the future of Sabeco,” a legal representative for Vietnam Beverage told reporters after the auction.The government had set a minimum sale price of 320,000 dong or $14.1 per share for Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, whose shares have jumped almost three fold to 309,200 dong since its listing a year ago.

    That priced the target at about 36 times core earnings, more than double the trading multiples for global peers, indicating Charoen had to pay a hefty premium to secure the prize.

    “We see this as an example of a successful equitization process,” said Fiachra Mac Cana, head of research at Ho Chi Minh City Securities. “The sums involved are huge and this is also good news for government coffers at the end of the year.”

    Thai Bev, controlled by Charoen, was keen to buy Sabeco in a bid to expand outside its home market.

    Sabeco’s foreign ownership is capped at 49 percent. With 10 percent already in foreign hands, only 39 percent was on the table for overseas buyers at Monday’s auction. Local bidders could bid for a majority stake of up to 54 percent. Heineken holds a 5 percent stake.

    ‘Disconnect’

    It was previously reported the auction was drawing interest from brewing groups such as Anheuser-Busch InBev, Kirin Holdings, Asahi Group Holdings and San Miguel, but in the end they all stayed away.

    “There’s a disconnect between what the government wants to achieve and how international brewers view this auction,” said one person familiar with the matter.

    “In a normal auction, bidders are fully aware of what stake they’ll end up owning and bid for it accordingly,” said the person, who was not authorized to speak to the media.

    Unlike similar sales in developed markets, where investors are whittled down over several rounds and offers can be adjusted, Sabeco bidders needed to submit a single offer for a specific number of shares in a sealed envelope in one round.

    Truong Thanh Hoai, an official at Vietnam’s trade ministry, said there was a level playing field for bidders in the auction, but added the price on offer was not attractive for everyone.

    “Some investors see Sabeco fitting with their business philosophy and they can exploit its potential, while some others don’t see it as a fit and feel they can’t make a profit from the amount of capital they’re paying, so they don’t participate. ”

    Charoen, who has shown an adept hand at cultivating ties with governments, started trading and supplying distilleries in the 1960s and was able obtain concessions to produce liquor at a time when production was under strict state control.

    The Thai King bestowed a royal name on the family in 1988, recognizing service to the country.

    In Vietnam, Charoen already owns nearly 20 percent of the country’s biggest-listed firm Vinamilk VNM.HM through Fraser & Neave. He has also acquired the Metro supermarket chain as well as other consumer goods and convenient stores in the country.

    The current deal, however, looks expensive, a Singapore-based financial source said, but could bear fruit if Thai Bev had come to certain agreements with its Vietnamese partners.

    “These multiples only make sense if there is a concession available,” said the source, adding there would likely be job cuts and re-allocation of employees from Sabeco to other state firms, helping Thai Bev improve efficiencies.

    Still, getting the firm in line with rivals’ valuations would be tough, said the person, who did not want to be named due to rules on talking to media.

    “He would have to double EBITDA to get the multiple below 20 times. That’s where the highest global peers are trading.”

  • Vietjet launches two routes from Ho Chi Minh City  to Phuket and Chiang Mai in Thailand

    Vietjet launches two routes from Ho Chi Minh City to Phuket and Chiang Mai in Thailand

    Today, at Tan Son Nhat Airport (Ho Chi Minh City), Vietjet held a jubilant inaugural ceremony to celebrate the debut of the airline’s Ho Chi Minh City – Phuket (Thailand) route. On the inaugural flight, passengers were thrilled to receive lovely, surprise gifts from Vietjet.

    Prior to that, Vietjet also welcomed the first flight of the Ho Chi Minh City – Chiang Mai (Thailand) route, which arrived to great excitement of both passengers and onlookers. Both these new routes serve the transportation and travel demands of locals and tourists while contributing to the promotion of trading and integration in the region. With the two new routes, Vietjet now operates six flights to “the Land of Smiles” from Vietnam.

    The ceremony was witnessed by Mr. Manopchai Vongphakdi – Ambassador of the Kingdom of Thailand to Vietnam, leader of Aviation Administration of Vietnam, Culture, Sport and Tourism Department of Ho Chi Minh City and leaders of industries of Vietnam and Thailand.

    The Ho Chi Minh City – Phuket route operates a return flight every Monday, Wednesday, Friday and Sunday involving about two hours per leg. Flights depart Ho Chi Minh City at 10.15 am and arrive in Phuket at 12.10 pm. Return flights take off at 1.05 pm from Phuket and land in Ho Chi Minh City at 3.10 pm.

    The Ho Chi Minh City – Chiang Mai route operates a return flight every Tuesday, Thursday, Friday and Sunday with a flight time of just under two hours per leg. Flights depart Ho Chi Minh City at 11.35 am and arrive in Chiang Mai at 1.30 pm. Return flights take off at 2.20 pm from Chiang Mai and land in Ho Chi Minh City at 4.25 pm.

    Customers can also call the Vietjet hotline +84 19001886 or visit any authorized domestic or international ticketing office/agent.  Payment can be made immediately with debit or credit cards Visa/ MasterCard/ AMEX/ JCB/ KCP or an ATM card issued by one of 32 Vietnamese banks that have been registered for internet banking.

    Aiming to become a leading consumer airline, Vietjet has continually opened new routes while adding brand-new aircraft to its fleet, investing in modern technology and offering more added-on services and products to serve all customers’ demands. Since its establishment just a few years ago, Vietjet has continuously contributed to the community and created flying opportunities for tens of millions of domestic and international passengers.

  • Monthly salaries in Vietnam rise fastest in Southeast Asia

    Monthly salaries in Vietnam rise fastest in Southeast Asia

    Salaries in Vietnam are rising faster than in any other Southeast Asian country, according to a recent survey released by employment website Jobstreet.com.

    The average annual growth rate of Vietnam’s payroll stands at 20-24 percent, compared to 14-20 percent in Thailand, the Philippines, Indonesia, Myanmar and Singapore.

    In Vietnam, management and executive salaries grew fastest, at 26 and 35 percent respectively.

    The survey found that 68 percent of companies operating in Vietnam want to expand their businesses in the future, so they have high recruitment demands. Jobstreetforecast that salary growth will continue with this demand.

    Vietnam’s minimum wage, however, doesn’t enjoy such a large jump. On Monday, the prime minister signed off on a decree raising the minimum wage for 2018 by 6.5 percent, the lowest nominal bump in 11 years.

    The rise brings the minimum wage for Region I to VND3.98 million ($175) a month. Region II to VND3.53 million, Region III to VND3.09 million and Region IV to VND2.76 million.

    In Vietnam, there are four different minimum wage regions, which are supposed to reflect the cost of living in each area. Region I, including Hanoi and Ho Chi Minh City, has the highest minimum wage, while region IV, which is for rural areas, has the lowest.

  • Net giants ‘must pay for news’ from which they make billions

    Net giants ‘must pay for news’ from which they make billions

    Nine European press agencies, including AFP, called Wednesday on internet giants to be forced to pay copyright for using news content on which they make vast profits.

    The call comes as the EU is debating a directive to make Facebook, Google, Twitter and other major players pay for the millions of news articles they use or link to.

    “Facebook has become the biggest media in the world,” the agencies said in a plea published in the French daily Le Monde.

    “Yet neither Facebook nor Google have a newsroom… They do not have journalists in Syria risking their lives, nor a bureau in Zimbabwe investigating Mugabe’s departure, nor editors to check and verify information sent in by reporters on the ground.”

    “Access to free information is supposedly one of the great victories of the internet. But it is a myth,” the agencies argued.

    “At the end of the chain, informing the public costs a lot of money.”

    News, the declaration added, is the second reason after catching up on family and friends for people to log onto Facebook, which tripled its profits to $10 billion (8.5 billion) last year.

    Yet it is the giants of the net who are reaping vast profits “from other people’s work” by soaking up between 60 and 70 percent of advertising revenue, with Google’s jumping by a fifth in a year.

    Meanwhile, ad revenue for news media fell nine percent in France alone last year, “a disaster for the industry”.

    ‘Pillar of democracy at risk’ 

    “Years have passed (without anything being done) and free and reliable newsgathering is now threatened because the media will simply no longer be able to pay for it,” the news agencies added.

    “Diverse and reliable news sources, a pillar of democracy, risk being undermined.”

    Attempts by news outlets in France, Germany and Spain to force internet giants to pay have only resulted in them coughing up a “few symbolic crumbs”, they added.

    The press agencies insisted that some of the vast imbalance could be rectified if the EU gives them and other media “related rights” copyright to their work.

    However, some European Parliament members were worried that the proposed directive would threaten free access to news for internet users.

    But that would not be the case, the agencies insisted.

    “Internet users would not be touched… simply those who now pocket a disproportionate part of advertising revenue would have to share a significant part of it with those who actually produce the information” on which the money is made.

    The appeal was signed by AFP; the German agency DPA; Britain’s Press Association; the Spanish agency EFE; Italy’s Ansa; the Swedish agency TT; Belga of Belgium, Austria’s APA, and the Dutch agency ANP.

  • Google opens AI center in China as competition heats up

    Google opens AI center in China as competition heats up

    Google announced Wednesday that it will open a new artificial intelligence research centre in Beijing, tapping China’s talent pool in the promising technology despite the US search giant’s exclusion from the country’s internet.

    Artificial intelligence, especially machine learning, has been an area of intense focus for American tech stalwarts Google, Microsoft and Facebook, and their Chinese competitors Alibaba, Tencent and Baidu as they bid to master what many consider is the future of computing.

    AI research has the potential to boost developments in self-driving cars and automated factories, translation products and facial recognition software, among others.

    Google’s move to open a Beijing office focused on fundamental research is an indication of China’s AI talent, widely seen as being neck-and-neck with the United States in research capability.

    “Chinese authors contributed 43 percent of all content in the top 100 AI journals in 2015,” Li Feifei, a researcher leading the new center, wrote in a blog post on Google’s website.

    “We’ve already hired some top experts, and will be working to build the team in the months ahead.”

    Li noted that Chinese engineers formed the backbones of the winning teams in the past three ImageNet Challenges, an international AI competition to test which computing technology is better at recognizing and categorizing pictures.

    Chinese search engine Baidu’s team was banned for a year for breaking the rules during the 2015 competition.

    The country’s large population and strong mathematics and sciences education has nurtured a slew of engineering talent.

    Google operates two offices in China, with roughly half of its 600 employees working on global products, said company spokesman Taj Meadows.

    Its job board in China shows about a dozen openings in the AI field. The China center will join Google’s other research facilities outside of its Silicon Valley hub, including in New York, Toronto, London and Zurich.

    Google’s search engine and many of its services are blocked by China’s Great Firewall, but internet regulators have recently allowed access to its translation product, one that has made leaps and bounds in accuracy by incorporating the company’s AI research.

  • Vietjet Honored as the Most Favorite Airline

    Vietjet Honored as the Most Favorite Airline

    Vietjet was recently honoured with the title of “Most Favourite Airline” at the “2017 Trust and Use Award” ceremony organised by the Vietnam Economic Times – the leading economic publication in Vietnam.

    This marks the airline’s second consecutive year of receiving the award, a true testament of Vietjet’s commitment towards providing top-notch service for its customers. Driven by the theme “Connecting consumption, sharing values”, the 2017 Trust and Use Award surveyed reliable, high-quality goods and services that have been greatly appreciated by consumers.

    Launched in 2006, the annual Trust and Use Awards aims to recognise enterprises with top quality products and services that are trusted and used by consumers. It nominates outstanding products and services within seven main fields namely, Finance – Banking – Insurance; Food and Retail; Fashion – Cosmetics – Beauty Services; Household Appliances – Interior Décor; Pharmaceuticals and Healthcare; Tourism – Resorts – Real Estate, and Telecommunications – Technology.

    Since its inception in 2007, Vietjet has established a favourable reputation not only for offering reasonable fares but also creating breakthroughs within the Vietnam aviation industry. Currently servicing a total of 73 international and domestic routes, the airline has bridged the gap in easing air travel, connecting passengers to a colourful selection of interesting destinations across the globe.

    Offering one of the most modern and brand-new fleets in the region, Vietjet has also been recognised for its services over the years through a number of prestigious international and domestic awards including ‘The Best Asian Low Cost Carrier’, ‘Asia’s Best Employer Brand’ and ‘The Best Place to Work in Vietnam’.

  • Vietnam plans to raise over $570 million through IPOs in energy firms

    Vietnam plans to raise over $570 million through IPOs in energy firms

    Vietnam hopes to raise a total of more than $570 million by selling stakes in an oil refinery, an oil distribution firm and a power company, the government website said on Saturday.

    The country has accelerated its privatization program in recent weeks, partly because of the need to fund a budget deficit and in the face of growing public debt.

    Vietnam aims to raise at least $297 million by selling a 20 percent stake in PetroVietnam Power Corporation and at least $155 million by selling 7.79 percent of the Binh Son Refining and Petrochemical company, the government said.

    In addition to the sale of those shares in initial public offerings (IPOs), the government said it planned to sell a 28.9 percent stake in the power company and a 49 percent stake in the refinery to strategic investors.

    The government also approved an earlier planned IPO in oil distribution firm PetroVietnam Oil Corp (PV Oil), aiming to raise at least $122 million by selling a 20 percent stake.

    The three share sales are expected within three months, the government said, without giving more precise details of the timing.

    Last month, Vietnam unveiled plans to sell a stake of up to 54 percent, worth $5 billion, in the nation’s biggest brewer, Sabeco, in what is set to be the country’s largest privatization yet.

  • World Bank raises Vietnam’s growth forecast for 2017

    World Bank raises Vietnam’s growth forecast for 2017

    The World Bank (WB) has increased its growth forecast for Vietnam this year from the 6.3 percent it projected in October to 6.7 percent, matching the government’s annual target following steady progress during the first nine months.

    Stronger domestic demand, robust export-oriented manufacturing and a gradual recovery of the agricultural sector are driving Vietnam’s economy, according to Taking Stock, the World Bank’s bi-annual economic report released on Monday.

    The manufacturing and services sectors respectively grew by 12.8 percent and 7.3 percent between January and September, the report said.

    “Growth momentum picked up across major economies and global trade recovered in 2017,” said Ousmane Dione, World Bank Country Director for Vietnam. “With incomes rising and poverty falling, Vietnam’s economy had another good year of strong growth and broad macroeconomic stability.”

    Vietnam expects economic growth of 6.5-6.7 percent next year, and thinks that the target of 6.7 percent set for this year is within reach, Prime Minister Nguyen Xuan Phuc said at a recent session of the legislative National Assembly.

    Low inflation and rising wages sustained buoyant domestic demand and private consumption, while the stronger global economy has helped Vietnam’s export-oriented manufacturing and agricultural sectors.

    Job growth has continued, with 1.6 million new jobs added in the manufacturing sector over the past three years, and 700,000 additional jobs in the construction, retail, and hospitality sectors, leading to higher aggregate labor productivity.

    Despite progress in resolving non-performing loans, risks remain, including the lack of robust capital buffers in some banks, especially amidst rapid credit growth.

    Fiscal tightening is underway, according to the report, and has led to a leaner budget deficit and containment of public debt accumulation. However, the decline in public investment – falling to 16 percent of total spending in the first nine months of 2017 compared with an average of 25 percent in recent years – may not be sustainable over time, as Vietnam needs significant investment in infrastructure to support future growth.

    A slow-down in structural reforms could also impact the ongoing recovery, especially given the weaker growth in investment.  Enhancing macroeconomic resilience and structural reforms could lift Vietnam’s growth potential over the medium term.

    “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, state-owned enterprise (SOE) and banking sector.”

    Over the medium term, growth is projected to stabilize at around 6.5 percent, while inflation is projected to remain low.