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Tag: Vietnam

  • VietJet stock jumps 20 pct on debut – exchange

    VietJet stock jumps 20 pct on debut – exchange

    That’s the maximum jump allowed for stock price on its debut day by Ho Chi Minh Stock Exchange. Vietnam’s biggest private airline, jumped by the maximum 20 percent limit in early trading on debut on Tuesday to hit 108,000 dong ($4.74), data from Ho Chi Minh Stock Exchange showed.

    The budget airline’s stocks rose from a starting price of 90,000 dong per share. A combined 103 shares were traded by 0233GMT, the data showed.

    The bourse allows the stock price to move a maximum of 20 percent up or down from the starting price on its debut day.

    On February 13, Vietnamese budget airline Vietjet Aviation VJC.HM would list on the domestic Ho Chi Minh Stock Exchange on February 28 at a starting price of 90,000 dong ($3.97) per share.

    The price announced by Vietjet would put the capitalization of Vietnam’s biggest private airline at $1.19 billion.

    The airline had intended to list overseas by last year, but the plan was put on ice. Singapore sovereign wealth fund GIC and a Morgan Stanley investment fund are among 26 foreign investors which recently bought a stake in VietJet.

    Company CEO Nguyen Thi Phuong Thao, the nation’s first female billionaire, is the biggest shareholder.

    The CAPA Center for Aviation has said that VietJet, which currently commands 40 percent of Vietnam’s domestic market, will likely surpass flag carrier Vietnam Airlines this year as the nation’s top domestic carrier.

    VietJet currently operates about 60 routes both locally and internationally, and expects to have a fleet of 200 aircraft by 2023. It had ordered billions worth of jets from both Airbus and Boeing in recent years.

    Its 2016 net profit jumped 96 percent annually to VND2.29 trillion on rising revenue, the filing showed, while its CEO Thao told the bottom line is expected to climb 30 percent this year.

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  • Vietnam’s annual e-commerce growth to reach 30-50%

    Vietnam’s annual e-commerce growth to reach 30-50%

    “The size of Vietnam’s e-commerce market may reach $10 billion within the next five years,” he added.

    Ms. Dang Thuy Ha, Chief Representative at market researcher Nielsen in Hanoi, said the e-commerce market was worth up to $4 billion last year.

    Of Vietnam’s 91 million people, she said, 45 per cent access the internet and 28 per cent use e-commerce.

    Each person spends $160 a year on shopping via e-commerce platforms. Therefore, growth in e-commerce is 22 per cent, according to Nielsen’s report.

    The report also notes that the number of people using smartphones has increased sharply, giving a boost to e-commerce.

    Thirty-two per cent of enterprises have set up business relations with foreign partners through online channels and 11 per cent have participated in electronic trade floor and website activities, according to a VECOM report.

    Ms. Tran Thi Phuong Lan, Vice Director of Hanoi Industrial and Trade, said that retail revenue via e-commerce in the capital stood at VND30 trillion ($1.3 billion) last year, representing 6 per cent of total retail revenue and up 15 per cent against 2015. More than 5,600 e-commerce websites are registered in Hanoi.

    VOBF 2017 had five sessions: Overview, Cloud Technology and Mobile Phones with E-commerce, Omni Channel, Cross Border E-commerce, and Online Startups. The Vietnam E-commerce Index 2017 was also released.

    This is the first time the Forum has been held. Speakers included representatives from the Vietnam E-commerce and Information Technology Agency, Nielsen, Google, Facebook, Vietnam Post, Verisign, and Lazada.

    Attendees had the chance to meet with representatives from Z.com, VeriSign, Matbao, Bizweb, Gimasys, TrustPay, Interspace, Netnam, and iNet. The special features of startups in the sector was also discussed.

    VOBF 2017 will be held in Ho Chi Minh City on March 3.

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  • Free trade agreements fuel cosmetics market in Vietnam

    Free trade agreements fuel cosmetics market in Vietnam

    The assessment was released at an event to introduce the Mekong Beauty Show 2017 in Ho Chi Minh City on February 23.

    Statistics show that Vietnam’s cosmetics market is potential with revenue of 26 trillion VND (1.14 billion USD) in 2015 and has maintained a double-digit growth rate for several years.

    While Vietnamese consumers’ spending on cosmetics is still four-five times lower than other regional countries, the middle class, which has high demand for beauty products, is growing strongly and forecast to double its current size to 33 million people in 2020.

    Ly Nguyen Lan Phuong, a representative of the Saigon Cosmetics Corporation, said despite such huge potential, domestic businesses’ technological capacity and financial strength remain modest. As a result, the local market is still dominated by foreign brands.

    Claudia Bonfiglioli, International Director of Informa Beauty, said to compete in the domestic market, aside from improving quality, cosmetics producers of Vietnam should keep innovating.

    Nguyen Van Minh, Vice Chairman of the Vietnam Association of Oils, Aroma and Cosmetics, said to help promote the industry’s development, the association has carried trade and investment promotion activities.

    Among those efforts, the Mekong Beauty Show 2017 is aimed to connect Vietnamese enterprises with other domestic and foreign partners to seek cooperation opportunities. It is also expected to become a leading trade forum on cosmetics and beauty products in the region.

    The show is slated for June 15-17 with the participation of more than 200 companies from the EU, the Republic of Korea, Thailand, Malaysia and Singapore.

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  • New regulations legalise betting services

    New regulations legalise betting services

    Previously, casinos were only open to foreign passport holders and gambling was illegal in Vietnam. The prime minister recently signed Decree 6 that allows eligible firms to sell tickets and provide betting services on horse and dog racing and betting on foreign football matches.

    However, firms are not allowed to determine the time to start and end the betting and only Vietnamese dongs are allowed to use in betting. The decree also states that the government does not encourage the development of these services. The project is still in the pilot stages, and customers would be able to participate in legal football betting from March 31.

    According to the Ministry of Finance (MoF), there are many illegal betting services and the authorities don’t have enough personnel to manage and control these services. The MoF said those services could cause negative effects on social order and lead to the illegal transfer of money abroad.

    The new regulations are expected to help the authorities better manage betting services. A new decree on casinos was also issued in January to attract investors into resorts projects and boost local tourism. The 3-year pilot programme allows Vietnamese to gamble in casinos.

    The MoF said legal betting would satisfy ‘entertainment demand’, reduce illegal gambling sites and stop people spending money abroad.

  • Tariffs are cut, import prices fall, but cars are still pricey

    Tariffs are cut, import prices fall, but cars are still pricey

    According to GDC, in January 2017 alone, Vietnam imported 1,000 cars from India, worth $3.7 million in total. The average import price was $3,700 only, or VND85 million, the price level described as ‘surprisingly low’ and ‘dirt cheap’. The imports from India are mostly Hyundai i10 and i20.

    However, Vietnamese cannot buy imports at VND85 million. The amount of money they have to pay will be four or five times higher.

    As explained by a car dealer, imports from India are taxed 70 percent. Besides, they are also subject to other kinds of tax, including luxury tax (35 percent for 1.0-1.5L cars) and VAT (10 percent).

    Imports also bear many other different kinds of fees, such as ownership registration fee (10-12 percent, or VND233-237 million), the number plate granting fee (VND20 million in Hanoi), registration fees (VND340,000 for the first time), and road maintenance fee (VND130,000 a month).

    At present, a Hyundai i10 is sold at VND350-450 million in the market, or five times higher than the factory price.As such, every import product from India would cost VND260 million on average after taxes and fees. Meanwhile, the selling prices will be defined after adding up distribution expenses, profits for distributors, storage fees, and marketing & advertisement costs.

    The same is occurring with imports from ASEAN. Though the import tariffs have been cut from 40 percent 30 percent since early 2017, the selling prices are still many times higher than the import prices.

    Nguyen Tuan, director of Thien An Phuc, a distributor, said a Toyota Fortuner from Indonesia has the CIF price of $27,500, or VND700 million. However, the selling price could be as high as VND1.3 billion.

    “Because of high taxes, Vietnamese have to pay high to own cars,” he explained, adding that the selling price in Vietnam is 2-3 times higher than in other regional countries.

    By 2018, when the import tariff goes down to zero percent, the price of one Fortuner would fall by VND290 million thanks to the tariff cut. Many people don’t buy cars at this moment, because they don’t want to waste hundreds of millions of dong on car tax.

    Ngo Tri Long, a renowned economist, said people hope the car prices would be decreasing once the tariffs are cut. However, sharp price decreases may not occur, because the car prices not only depend on import tariffs, but also on luxury taxes, fees and pricing strategies followed by car distributors.

    “In Vietnam, you’d better not dream of cheap cars,” he said.

  • Vietnamese spend big on foreign high-street clothes

    Vietnamese spend big on foreign high-street clothes

    Huong, an office worker in Hoang Mai district in Hanoi, said she reserves a budget of VND2-3 million for buying new clothes every month. But she does not want products bearing Vietnamese brands, but preferably orders Zara and Mango products from overseas shops online.

    Huong said that the foreign high-street products are now affordable for office workers like her.

    “Why don’t you choose foreign brands if they have diverse design, good materials and reasonable prices?” she said.“Manufacturers and distributors often launch sale promotion campaigns with big discount rates. I can buy many products at the prices just equal to or even cheaper than Vietnam’s export products,” she explained.

    Oanh, an account executive in Hanoi, said she looks for Zara, H&M, Mango and Uniqlo products regularly, which allows her to buy high-quality products at reasonable prices.

    Sometimes she can buy products at just VND1 million or lower in sales campaigns.

    “I never buy Vietnamese goods during sale promotion campaigns because I am not sure about the actual value of the goods,” she said. “Meanwhile, no need to worry about this when you buy products from these brands. And the prices are very good”.

    Huong and Oanh order the products online and pay fees to have the products shipped to Vietnam. There are many shipping agents in Hanoi, who are in charge of receiving products, carrying to Vietnam and delivering to clients.

    Thuy Linh, one of the agents, commented that Vietnamese clients mostly order clothes and footwear, and 80 percent of ordered products bear high-street brands such as Zara, Mango, and Forever 21, while the remaining 20 percent are luxury brands.

    Linh said she is always busy so Vietnamese tend to favor foreign high-street brands. A T-shirt with Zara or Mango brand can be bought at VND180,000 only, including fees, which is cheaper than Chinese products.

    Understanding the Vietnamese taste and realizing the rapid increase of middle-income earners in Vietnam, a lot of high-street brands have been conquering the local market. Zara, the fashion brand from Spain, has been present in Vietnam since mid-2016. Mango, which targets customers aged 18-40, has been present in Vietnam since 2004 through a franchise contract signed with Maison JSC.

    In the latest news, H&M has begun employing workers to prepare for its landing in Vietnam. The Swedish brand’s first shop would be in Hanoi, cover an area of 2,000 square meters and employ 100 workers. The recruitment will also be implemented in HCMC.

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  • Malaysian bubble-tea stoush now question of loyalty

    Malaysian bubble-tea stoush now question of loyalty

    Malaysia’s Chatime bubble-tea stoush continues, with a fresh argument regarding outlet loyalties.

    Taiwanese Chatime franchise owner La Kaffa International says nearly 50 outlets will stay with it, while former Malaysian master franchisee Loob Holdings claims that only four outlets have opted to keep the Chatime banner.

    Loob CEO Bryan Loo says more than 95 per cent of the total 165 Chatime outlets in Malaysia have decided to quit the brand and adopt Loob Holding’s new brand.

    “Only three franchisees, who run a total of four stalls, do not want to move on with us. They will be handed back to the franchise owner,” he told journalists at Kuala Lumpur’s Pavilion Shopping Mall after launching his new brand, Tealive.

    He did not name the franchisees or pinpoint their outlets.

    Loo says the new name was chosen to appeal not only to Malaysians, but across the other regions – and internationally.

    “So we felt like we had to find a very good name; and it had to be different from Chatime. We started with over 300 names and over three days, we shortlisted it down to 30 names and then the last one. In the end, we wanted a name that was simple and easy to digest no matter who you are.

    “While shortlisting, we felt that we exceptionally liked the names that had different pronunciations.

    People used to pronounce Chatime in so many different ways and it stirred conversation. So we wanted the same spirit; and that’s how we landed on the name Tealive (live pronounced similar to ‘a live show’). Some people could pronounce it tea-live (as in live at home) but the important thing is the underlying meaning to it – we want to bring a new life to tea.”

    Loo said in an interview that Tealive will be very different to other brands in the crowded bubble-tea market.

    “We want to be the brand that protects the weak and isn’t afraid of the strong; but also the brand that embraces changes. On the other side, with our hands untied, I believe that over the next quarters there is going to be a lot of innovation in terms of products, which we couldn’t do before.

    “When we used to collaborate with local brands, we were served warning letters; so moving forward that’s something we don’t have to worry about, so we can be innovative. I would also like to establish a regional R&D centre to come up with more creative drinks that will excite the market. Also, we’re looking to carry on with our aggressive expansion and move into other regions. We were already planning to do that with the previous brand, but now we get to do it with Tealive,” Loo said.

    La Kaffa contradicts claims

    At a press conference in a Kuala Lumpur hotel earlier this month, La Kaffa International executive VP Teresa Wang said the company was confident that nearly 50 franchisees would continue to collaborate with Chatime.

    At the same time, La Kaffa claimed Loob Holdings had stopped ordering the halal ingredients it supplied from Taiwan for Chatime’s Malaysia outlets. Loob Holdings has denied this, with Loo saying its products are certified by the Department of Islamic Development Malaysia (Jakim).

    The dispute bubbled to the surface in early December when the Taiwanese company terminated the master franchise agreement between the two parties, even though there was more than 20 years left on the deal.

    Loo has lodged a police report over the sudden termination, and both companies have taken the dispute to the Singapore International Arbitration Centre.

    Vietnam foray

    Meanwhile, Loo says Tealive will be opening its first overseas outlet in Vietnam before October.
    “We plan to deliver five outlets in Vietnam this year, and hope to increase that with another 20 outlets by the end of next year,” he says.

    Chatime is already in Vietnam with seven outlets in Hanoi, two in Ho Chi Minh City and one in Di An, Binh Duong province.

    Loo says Tealive will also venture into other Asean countries within the next few years.

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  • World’s largest container ship docks in southern Vietnam

    World’s largest container ship docks in southern Vietnam

    A giant container vessel arrived at Cai Mep International Terminal in Vietnam’s southern region Monday, helping mark the port on the world’s shipping map.

    The 194,000-DWT Margrethe Maersk of 399 meters long of the world’s biggest container ship family was built in 2015 and is owned by Denmark’s Maersk Line. The vessel can carry 18,300 TEU (twenty-foot equivalent unit).

    Cai Mep in the southern province of Ba Ria-Vung Tau is now among the world’s 19 ports which can accommodate Triple-E class container ships of more than 18,000 TEU.

    Vietnamese transport officials said the arrival marked “a milestone” in the country’s shipping history as they aim to develop Cai Mep into a transit port for cargo shipping between Asia and northern Europe.

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  • Taxis claim unfair competition

    Taxis claim unfair competition

    Ta Long Hy, chairman of HCM City Taxi Association, told a conference on Thursday that the taxi market has seen unfair competition between traditional firms and foreign companies with strong financial potential and state-of-the-art technologies.

    Hy said the number of licenced traditional taxis with less than nine seats in HCM was reduced from 20,000 in 2010 to 11,000 this year. The rapid development of Uber and Grab has quickly narrowed the traditional taxi market share, hurting cabs in their own playground due to decreasing number of passengers and incomes.

    Tax policies are also causing concern for traditional taxi firms, including a 10 per cent value added tax and 20 per cent corporate income tax. “The Ministry of Finance (MoF) levies 3 per cent VAT for Uber. We urge authorities to impose a common tax policy for both traditional and tech-based taxis of 5 per cent,” he said.

    Do Quoc Binh, chairman of Ha Noi Taxi Association, said taxi companies are bound by strict business conditions regarding parking areas, registration licences, logos, price lists, uniform and price registration, while Grab and Uber are not subject to any conditions.

    “The Government’s policies seem to be tightening the operation of traditional taxis while loosening management of Grab and Uber,” Binh said.

    He said Uber and Grab should be managed as regular taxi firms to create fair competition.

    Truong Dinh Quy, Vinasun Corp’s deputy general director, claimed Uber and Grab had broken the law to enjoy low tax rates, hurting the State budget.

    Figures from the General Taxation Department showed that the total tax collection from 15,000 Uber and Grab taxis in 2014-15 was VND19 billion (US$832,000), while Vinasun contributed VND692 billion from its 6,000 taxis.

    “We can see that the State budget has lost a big tax amount. This has been unfair to traditional taxi firms,” Quy added.

    Nguyen Van Thanh, chairman of the Viet Nam Automobile Association, said the association would work with the MoF’s agencies to review tax calculation and ensure their fairness.

    “We should ask legal agencies to resolve the issue. We should prevent Uber from conducting tax evasion. We will not ask to stop Uber operations in Viet Nam but require that they complete their business registration,” he added.

    In addition, he urged taxi companies to update their business systems, improve service quality and thus enhance their competitiveness.

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  • First Japanese apartments in Phu My Hung launched

    First Japanese apartments in Phu My Hung launched

    Prestigious real estate developer Phu My Hung plans to launch its new apartments, developed in cooperation with three leading Japanese partners, in Ho Chi Minh City in the coming weeks.

    The Grande is built over 5,540 square meters. The 26-floor building, with two basements, has 309 apartments and 13 shops. There are options for apartments ranging from 69 and 249 square meters with one to four bedrooms. Two-bedroom apartments account for 62 percent of all the units.

    Customers will have 28 months to pay for half of the prices, the investors said. They will pay another 45 percent when receiving the apartment and the remaining 5 percent when receiving the ownership certificate.

    The project is guaranteed by Vietcombank’s South Saigon Branch and Vietnam International Bank, which also work with the investors to provide interest rate support for customers seeking bank loans.

    Midtown, a complex of condos, office and retail space and amusement centers, is Phu My Hung’s biggest investment the past three years, with many high-end facilities, some of which have never appeared at any Phu My Hung projects.

    Phu My Hung Midtown hopes to bring a new concept about living space, which should be a perfect combination of facilities instead of an individual house.

    The complex is the first one built with cooperation from three leading Japanese property developers – Daiwa House Group, Nomura Real Estate Group and Sumitomo Forestry Group, which together account for 50 percent of the property market in Japan.

    A Phu My Hung executive said Japan is a country with good infrastructure and great experience in infrastructure development, especially for complex and high-rise buildings.

    “Our meaningful cooperation with strong, experienced partners will help achieve desired goals and quality in our construction projects,” he said.

    The complex is designed as a multi-facility zone at different levels, allowing its residents to access all kinds of services from inside to outside the house without having to go far.

    Golf simulation studio inside The Grande.

    Golf simulation studio inside The Grande.

    The Grande, for example, is designed with many exclusive services for its residents such as swimming pools, BBQ areas, gardens, yoga courts, golf simulation studio and libraries.

    All the facilities are built based on careful research of the habits and interests of residents, making sure all members of a family can find some activities that suit them.

    The residents will also be able to enjoy the value of Sakura Park, which stands across the apartments with riverside views of beautiful trees and flowers.

    There are other facilities such as a sports complex, a recreational area for children with sections for different ages, a flower square, a water fountain and a pavilion. The project is entirely protected with a security system that will guarantee the privacy of all residents.

    Sakura Park runs 602 meters along the Ca Cam River. It covers 11,722 square meters, with construction on 6,414 square meters or 54.7 percent of the area, and natural plants on 5,308 square meters (45.3 percent). The park comprises three parts – the main square, a kids playground and a sports area.

    Facilities around the complex, including a cherry blossom park, represent a new style in Phu My Hungs quality housing development.

    Facilities around the complex, including a cherry blossom park, represent a new style in Phu My Hung’s quality housing development.

    The recreational area for children and two gardens nearby allow residents to relax while watching their children. Sakura Plaza, a square at the center of the park, carries the shape of a cherry blossom. The square features a fountain with beautiful jets at different heights, dotted by colorful flowers.

    Besides the sports complex and the mini football court, the sports area of the park also gives families some space if they want to have a picnic day and enjoy the fresh air.

    The park also has parking space for more than 150 cars, which is conveniently connected to other parts in Midtown.

    “Phu My Hung Midtown complex with the impressive Sakura Park promises to be a must-visit place for Saigon residents in the future. Here we have a lot of green space, natural harmony and many interesting activities for sports, dining and entertainment,” the investor said.

    The first phase of Sakura Park will complete in 2019, around the same time with the first apartment building of the complex, The Grande.

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  • Image leak suggests new Samsung phone ‘made in Vietnam’

    Image leak suggests new Samsung phone ‘made in Vietnam’

    A leaked picture would suggest Samsung’s latest smartphone, the Galaxy S8+, is being manufactured in Vietnam, despite last year’s Galaxy Note 7 saga.

    The picture shows the back panel of a phone tagged with “Made in Vietnam” below the “Galaxy S8 6” branding.

    The number “6” has been interpreted by people familiar with the matter as the 6 GB RAM variant of the Samsung Galaxy S8.

    Samsung is expected to officially unveil its next flagship devices, the Galaxy S8 and Galaxy S8+, on March 29 in New York. The phones will go on sale on April 21.

    Other leaked images of purported technical specifications have fueled rumors of a 5.8 inch and 6.2 inch display, backed by a 3000 mAh battery or 3500 mAh battery.

    Samsung’s production in Vietnam incurred a loss of $122.6 million in the third quarter of last year after it was forced to recall 2.5 million Galaxy Note 7s globally following battery explosions.

    The recall affected production at its two plants in the northern provinces of Bac Ninh and Thai Nguyen, which produce a combined 35 percent of all smartphones that Samsung supplies to the global market.

    However, that did not affect Samsung’s dominant position in Vietnam’s export sector last year. The company earned $39.9 billion in revenue from shipping electronics, up 10 percent against 2015 and contributing 23 percent to Vietnam’s total export revenue.

    Samsung Vietnam said no jobs had been cut due to the Galaxy Note 7 incident. The company is targeting an export growth rate of between 7 and 10 percent this year.

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  • Vietnam now ranks among the world’s top 5 most optimistic nations

    Vietnam now ranks among the world’s top 5 most optimistic nations

    Vietnamese consumers’ higher confidence late last year has helped lift the country to be among the world’s five most optimistic nations, Nielsen said.

    The ranking is measured for the fourth quarter of 2016, with Vietnam’s Consumer Confidence Index moving up five percentage points from the July-September quarter to a score of 112, the global information and measurement company said in a statement following a survey that ended last November.

    The Southeast Asian nation now ranks behind India, the Philippines, the U.S. and Indonesia. At 112, Vietnam ranks third in Southeast Asia after the Philippines and Indonesia, Nielsen said in the poll attended by more than 30,000 online consumers in 63 countries.

    Vietnam’s growing middle class population with rising disposable income, higher education level plus the country’s stable economic outlook remain the main drivers for its ranking, Nguyen Huong Quynh, Nielson managing director in Vietnam, said in the statement.

    Up to 76 percent of the Vietnamese consumers surveyed said they would place spare cash in savings, down from 78 percent in the previous quarter. Vietnam remains in its top position globally on keeping savings, the survey found.

    It also found that, after covering essential living expenses, around two in five Vietnamese consumers were willing to spend big on holidays and vacations (35 percent), new clothes (33 percent), new technology products (30 percent), home improvements (27 percent) and out of home entertainment (26 percent).

    “Vietnamese consumers have a strong desire for a better life,” Quynh said. “This reflects in their saving intention to prepare for the better future.”

    Health and job security topped the list of Vietnamese consumers’ concerns, the survey showed.

    “As consumers are looking to lead healthier lives, the need for food safety and product’s quality arise,” Quynh said, suggesting manufactures and retailers could get opportunity to tap into new markets to meet the consumer’s demand.

    Just 20 percent of the respondents in the survey expressed concern over Vietnam’s economic growth prospect, down from 26 percent in the second quarter.

    Vietnamese consumers’ rising confidence is in line with the trend in Southeast Asia, which grew five points between the first and the fourth quarter to 115, the index showed.

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  • 7-Eleven starts hiring ahead of Vietnam debut

    7-Eleven starts hiring ahead of Vietnam debut

    Japan’s convenience store chain 7-Eleven has started hiring staff for its Vietnam operation, as it seeks to expand retail business to one of Asia’s fastest-growing economies.

    The retailer is looking for full-time staff, including shop manager, salesperson, shop developer, marketing associate and trainer, all to be based in Ho Chi Minh City, Seven System Viet Nam Company said in a statement Monday.

    In 2015 7-Eleven’s U.S. subsidiary signed with the firm a licensing agreement to open stores in the Southeast Asian country.

    The date of opening or the number of outlets planned for the city are not yet disclosed. 7-Eleven has said the first store was expected in spring 2017.

    The launch of 7-Eleven stores is believed to heat the stiff competition among foreign investors in Vietnam’s retail market, which has grown at around 10 percent annually in recent years, and sales are likely to reach $109 billion in 2017, according to the Economist Intelligence Unit.

    7-Eleven, owned by Japan’s Seven & I Holdings, is an international chain of convenience stores with over 60,000 stores across 17 countries and territories. It has stores in five Southeast Asian markets, namely Thailand, Malaysia, the Philippines, Singapore and Indonesia.

  • Ho Chi Minh City seeks to tax sales on Facebook

    Ho Chi Minh City seeks to tax sales on Facebook

    The Ho Chi Minh City government should work with Facebook on how to collect tax from businesses running on the social media site, officials said.

    The city currently hosts a dynamic e-commerce scene with more than 80,000 websites, half of which have stable business, but tax collection from the segment is low, said Pham Thanh Kien, head of the city’s trade department.

    “In particular tax collection has not been done from sales via Facebook,” Kien said at a meeting with the city’s tax authority. “(We) propose the People’s Committee work with Facebook on a mechanism to control tax collection.”

    Ho Chi Minh City, where the most active e-commerce in Vietnam takes place, should find out measures to prevent losses in tax revenues, Deputy Finance Minister Vu Thi Mai told tax officials at the meeting on Sunday.

    Just a quarter of Vietnam’s non-state businesses have declared value-added tax, Mai was quoted by the Tuoi Tre (Youth) newspaper as saying at the meeting.

    A majority of online businesses using social networking sites such as Facebook do not issue invoices, which has prevented the authority from collecting tax.

    Vietnam’s e-commerce market, which has one of the world’s fastest growth rates, jumped 37 percent in 2015 to around $4 billion, based on government statistics.

    The growth rate is about 2.5 times faster than that in Japan, according to Tran Duc Tam, an industry expert.

    The government has projected revenue by Vietnam’s online retail to hit $10 billion by 2020, accounting for 5 percent of the country’s retail market. Last year retail sales rose 10.2 percent from 2015 to $118 billion, based on government data.

    The online tax tightening plan has received mixed responses.

    “Facebook is just a channel to advertise products and communicate with customers. With no electronic invoicing, how to tax them?” a reader’s comment.

    Others raised concerns that many online retailers use anonymous accounts for transactions, while some others could be one-time or small-time sellers with insignificant revenues, making it hard for tax authorities to regulate activities.

    Online marketplaces such as Facebook have made it easy for small businesses and start-ups to set up business due mainly to the convenience they provide and the opportunity to connect with customers, Tuan Anh Pham wrote in another comment. He suggested market regulators take a cautious approach when it comes to requiring online retailers to pay taxes.

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  • Vietnam’s fast moving consumer goods market ends 2016 on a high note

    Vietnam’s fast moving consumer goods market ends 2016 on a high note

    Fast moving consumer goods (FMCG) sales showed the best improvement in three years in the last quarter of 2016, with 7.3 percent growth against the same period last year, according to the latest Market Pulse quarterly report released by Nielsen on Thursday.

    “The build-up and positive sentiment towards the Tet period was one of the key drivers for FMCG growth,” said Nguyen Anh Dung, Nielsen Director of Retail Measurement Services.

    Beverages continued to be the key contributor to the total FMCG sales in the last quarter, accounting for 40 percent, followed by food and milk based products, which made up 15 percent each of the total.

    After being hit by a year of adverse weather conditions, growth in rural areas experienced a strong bounce-back from October-December with a 7 percent on-year jump, contributing 51 percent to total FMCG sales nationwide.

    “Rural areas are still the biggest consumer base and these consumers have increasing incomes that give them higher spending power,” Dung said.

    The Market Pulse Report is published quarterly based on the results of a Nielsen Retail Measurement study of FMCG in six cities across the country: Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Nha Trang and Da Nang.

    Fast-moving consumer goods refers to products that are sold quickly and at a relatively low cost.

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