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Tag: Vietnam

  • Aeon Vietnam opening second HCMC mall

    Aeon Vietnam opening second HCMC mall

    Aeon Vietnam will inaugurate its second shopping centre in Ho Chi Minh City, Aeon Mall Binh Tan, on July 1.

    Larger than Aeon Mall Tan Phu Celadon, which opened in early 2014, it has an total investment exceeding US$120 million and covers 4.6 ha. at the Hi-Tech Healthcare Park of Hoa Lam Shangri-La. It will have four floors and a basement, with a parking lot designed to accommodate 1500 cars and 4000 motorbikes at any one time.

    About 80 per cent of goods on sale at the mall, Aeon’s fourth in the country, will be made in Vietnam with the rest imported from Japan.

    A feature will be a photo-taking area for children and families, plus painting classes for children.

    Aeon targets 20 malls across Vietnam by 2020. The Japanese retailer owns 49 per cent of the Citimart store chain and 30 per cent of another local chain, Fivimart, and also runs Ministop convenience stores.

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  • Vietnam shopping center linked to Lotte’s slush fund scandal

    Vietnam shopping center linked to Lotte’s slush fund scandal

    South Korea’s Lotte Group has come under suspicion of using a shell company that owns a mega mall in Vietnam to funnel money into a possible slush fund.

    Luxembourg-incorporated Coralis SA, the company in question, developed Lotte Center Hanoi at a cost of around US$400 million. The 65-story shopping and leisure complex was opened in September 2014.

    It recorded a net loss of 55.1 billion won ($47.31 million) last year, raising a suspicion that the conglomerate was exaggerating its losses to hide money, according to the report, citing sources from a Korean prosecutor’s office.

    According to another theory, Lotte Engineering & Construction, the project’s contractor, may have overcharged the developer to hide funds, The Korea Herald said.

    Coralis SA had been used for offshore tax evasion by Kim Seon-yong, the third son of former Daewoo Group chairman Kim Woo-jung, before being acquired by Lotte Asset Development in 2009 at 69.7 billion won ($59.86 million), according to The Korea Herald.

    Lotte Asset Development later sold a stake of 45 percent in the company each to Lotte Shopping and Hotel Lotte, it said.

    Lotte has denied the allegations, saying it bought Coralis SA to acquire the right to do business and lease land in Vietnam and that such practice is adopted by most companies when they invest overseas.

    The report came as South Korea’s fifth-largest conglomerate was facing an ongoing investigation for alleged corruption, illegal intragroup deals and embezzlement, according to Korean media.

    In Vietnam, Lotte has invested over $2 billion into more than 20 subsidiaries which operate in a wide range of sectors from retail to real estate. 

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  • South Korea’s Woori Bank to form Vietnam unit by July

    South Korea’s Woori Bank to form Vietnam unit by July

    South Korea’s Woori Bank expects to establish a Vietnam unit this month or in July, a bank official said on Tuesday, as part of the lender’s plans to expand its network in the expanding market of Southeast Asia.

    Woori Bank, South Korea’s largest bank in terms of consolidated assets as of the end of March, is awaiting approval from relevant authorities to established a wholly-owned unit in Vietnam, the official said.

    A Vietnamese banking source said the State Bank of Vietnam, the country’s central bank, was expected to grant a licence for the South Korean lender shortly.

    South Korea is now the biggest foreign investor in Vietnam, with large investments placed to turn it into a Southeast Asian production hub by Samsung Electronics Co Ltd and LG Electronics Inc.

    Other major Korean companies in Vietnam include Kumho Construction, Posco group, Hanjin Logistics and Kumho Tire.

    A free trade agreement between South Korea and Vietnam that came into effect last December gives more incentives for Korean firms to invest.

    Woori Bank’s Vietnam unit, once licensed, would most likely be a vehicle to expand South Korean investment in a country where it has been limited to operating two branches. Other competitors include HSBC, ANZ, Standard Chartered Bank as well as Shinhan Bank.

    With the expected approval, Woori Bank would seek to strengthen its localised service to Vietnamese retail customers through channels including its mobile banking platform Wibee Bank and chat app Wibee Talk.

  • H&M collaborates with Caitlyn Jenner for its newest athleisure range

    H&M collaborates with Caitlyn Jenner for its newest athleisure range

    A new H&M athleisure wear range is to be launched in July, developed with input from the Swedish Olympic team and fronted by personalities including Caitlyn Jenner.

    The launch of For Every Victory makes H&M one of the first major multinational fashion brands to make a serious foray into the booming athleisure wear market, to date dominated by fast-growing specialist brands including Lululemon, UnderArmour and 2XU.

    H&M -For Every Victory

    H&M For Every Victory – described by the H&M as “high fashion performance sportswear made to inspire” has been developed with input from the Swedish Olympic team, and the campaign is fronted by inspirational personalities who have all achieved their own victories, whether in sport or life.

    H&M -For Every Victory 1

    The athletes advised on design, performance and wearability. H&M also designed outfits for the Swedish Olympic and Paralympic team for Rio 2016, including the opening ceremony uniform, selected competition pieces and the prize ceremony outfits.

    “This is a collection about performance with great style and the input of the Swedish Olympic team has been invaluable in the creation process,” said Pernilla Wohlfahrt, design and creative director at H&M. “The result is high fashion technical sports pieces for everyone to wear.”

    The For Every Victory collection has a similar visual expression and technical knowledge to the Swedish Olympic team collection, with its own colour palette in black, grey, dusty pink and gold. It is centered on performance T-shirts, running shorts and leggings, as well as sports bras for women.

    H&M -For Every Victory 3

    The quick-drying, breathable materials help to optimise performance and recycled polyesters prove that high-function sportswear can also be conscious and more sustainable − all showing that there’s no compromise on either fashion or performance.

    H&M -Olympic collection

    Among the personalities fronting the new range are Caitlyn Jenner with her Olympic gold medal in the decathlon; Chelsea Werner, a gymnast who has never let Down Syndrome halt her progress; surfer Mike Coots who still takes to his board even though he lost his leg in a shark attack and boxer Namibia Flores who has fought against prejudice to pursue her dreams.

    The new range and brand will be launched globally on July 21.

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  • Hotel complex to include Republic Plaza Saigon

    Hotel complex to include Republic Plaza Saigon

    A retail mall, Republic Plaza Saigon, will be part of a Ho Chi Minh City complex being developed byThuy Duong-Duc Binh Trading.

    Anchoring the project is a 350-room Holiday Inn & Suites hotel – the first of that brand in Vietnam.Holiday Inn is part of the InterContinental Hotels Group (IHG), which already has six properties in Vietnam including the award-winning InterContinental Asiana Saigon, InterContinental Danang Sun Peninsula Resort and Crowne Plaza West Hanoi.

    Another partner in the new project is low-cost carrier VietJet Air, along with HD Bank.

    Scheduled to open in 2018, the complex is close to Tan Son Nhat International Airport and major industrial park areas such as Binh Duong, Dai Nong and Saigon Hi Tech Park. It will be connected to the city via the upcoming metro system.

    There will also be apartments in the development, and the hotel will feature an all-day restaurant, cafe and pool bar. It will also have eight meeting rooms and a business centre.

    In the next three to five years, IHG plans to double its presence with another six hotels in Vietnam.

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  • Inflation erodes Vietnam retail sales rise

    Inflation erodes Vietnam retail sales rise

    Purchasing power is declining despite Vietnam retail sales and services revenue rising 9.1 per cent to VND1430 trillion (US$63.4 billion) in the first five months of this year.

    If inflation is excluded, the amount marks an increase of 7.8 per cent, according to the General Statistics Office (GSO). However, GSO expert Vu Manh Ha says the growth, with inflation excluded, was lower than the 8.2 per cent growth in the same period last year, showing weaker purchasing power.

    Growth was impacted by incidents affecting accommodation, catering and tourism services, as well as the mass fish deaths along Vietnam’s central coast. With the cancellation of beach tours, the spending power of tourism companies in the coastal provinces fell strongly.

    Meanwhile, there was a strong 9.5 per cent growth in the purchasing power of goods retailers in the first five months, amounting to VND1920 trillion and accounting for two-thirds of total retail sales and services revenue.

    Retailers of rice and foodstuffs saw growth of 13.6 per cent; garment retailers, 10.9 per cent; and home appliance retailers, 9.6 per cent.

    Ha says the total retail sales and services revenue next month will increase further because of a high demand for house construction and repairs, and recovering demand for beach tours.

    GSO director Nguyen Bich Lam says purchasing power this year is expected to have a lower growth rate than last year because of stability in prices, high supply and stable demand for most essential goods.

    Because of consumer fears about environmental pollution and food safety, spending is expected to erode for such services as accommodation, catering, tourism and entertainment, says Lam.

  • Vietnamese broadcaster builds out OTT service offering

    Vietnamese broadcaster builds out OTT service offering

    Vietnam Television (VTV), Vietnam’s leading broadcaster, is using Harmonic equipment to support efficient delivery of high-quality content, including premium sports events, via its new live OTT offering. VTV has augmented its existing installation of Harmonic gear to accelerate deployment and the launch of new OTT services.

    “OTT TV has quickly become a popular choice among consumers in Vietnam, but the success of such services still depends on delivery of compelling content characterized by exceptional visual quality,” said Pham Anh Chien, MD, VTV Digital Center. “Harmonic addresses these requirements with its acclaimed portfolio of low-latency IP video products, which ensure that we can deliver even fast-paced live sports events with remarkable picture quality. As a result, we’re equipped to offer the best possible service to our OTT customers watching here in Vietnam and in overseas markets.”

    “Providing engaging content and ensuring exceptional video quality, VTV is setting a high standard not only for the Vietnamese market, but also for the markets worldwide that are tapping into its OTT services,” said Tony Berthaud, VP of sales, APAC, Harmonic. “As the company adds to its OTT offering, the readily scalable nature of Harmonic video infrastructure will facilitate smooth, cost-effective growth.”

  • New Zealand opens technology center in Vietnam

    New Zealand opens technology center in Vietnam

    New Zealand has opened a new technology center at Quang Tring Software City in Ho Chi Minh City.

    The Kiwi Technology Center is envisioned to be a hub for New Zealand tech companies investing and doing business in Vietnam and the ASEAN region.

    The first companies to set up shop in the center include software services business Augen Software Group which won the Vietnam IT Excellence award last year, healthcare technology companies Orion Health and HealthTech and apparel manufacturing optimization firm ShapeShifter.

    “This is a fantastic opportunity for New Zealand technology companies and I look forward to more of them utilizing the Kiwi Connection hub and meeting with businesses from around the region who want to work with New Zealand companies and use technology services from within ASEAN,” said New Zealand’s Economic Development Minister Steven Joyce in a statement.

    Joyce also announced last week a project to build a New Zealand-Vietnam friendship bridge in Ho Chi Minh City to celebrate the ties between the two countries.

    Vietnam is New Zealand’s fastest growing trade market in Southeast Asia, with merchandise exports reportedly doubling since 2007.

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  • Central Pattana plans to enter Malaysia

    Central Pattana plans to enter Malaysia

    Shopping mall developer Central Pattana, which runs 29 malls in Thailand, plans to open its first foreign outlet in Malaysia in 2018.

    It will work through a joint venture with a Malaysian company in which it holds a 60 per cent stake. The new mall, under the Central brand, will be in Shah Alam, west of Kuala Lumpur.

    To be built on about 44,000 sqm of land, the mall will have a net leasable area of 89,700 sqm, and cost about 8.3 billion baht (US$232 million) to build.

    Senior executive VP Naparat Sriwanvit says Central Pattana plans to open 15 malls by 2020, three of them outside Thailand. Indonesia and Vietnam have been listed as potential targets because of their large populations and rising incomes.

    As with Malaysia, the company plans to enter other markets through joint ventures with local partners.

    Naparat says the Thai market is still promising, with room for expansion in the suburban areas of Bangkok and the provinces. The company plans to open a 1.9 billion baht mall in the southern city of Nakhon Si Thammarat at the end of next month, as well as two other locations outside Bangkok next year.

    Central Pattana, with CentralWorld mall in central Bangkok as its flagship, saw its net profit rise 7 per cent last year.

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  • SC VivoCity Vietnam ‘trading well’

    SC VivoCity Vietnam ‘trading well’

    Singapore’s Mapletree has revealed how its SC VivoCity joint venture in Ho Chi Minh City is performing.

    The shopping centre, built in the heart of District 7, a area popular with expats from Korea and Singapore especially, opened in April 2015.

    In its recent annual results presentation, Mapletree said almost 90 per cent of SC VivoCity’s 440,000 sqft retail trading space was leased by March 31 this year. Cornerstone tenants include Vietnam’s first Hamleys toy store.

    Mapletree said its first shopping mall in Vietnam “has been enjoying strong footfalls since it first welcomed visitors”.

    SC VivoCity is the first phase of Saigon South Place, a 4.4-ha integrated mixed-use development project that Mapletree is developing in District 7. When completed, Saigon South Place will comprise retail, office, serviced apartments and residential space.

    Construction of the adjoining office complex has started and is expected to be completed by end 2016, while work on the serviced apartments and residential block will commence soon and both buildings are scheduled for completion by end 2017, Mapletree said.

    SC VivoCity is a joint venture between local company Saigon Co Op Investment Co, a supermarket operator, and Mapletree, bearing the same brand as the award winning VivoCity centre on Singapore’s waterfront.

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  • Global telcos eye stake in Vietnam’s Mobifone

    Global telcos eye stake in Vietnam’s Mobifone

    A number of international telecoms operators have reportedly expressed an interest in participating in the privatization of Vietnamese state-owned operator Mobifone.

    Companies including Norway’s Telenor, Sweden’s Comviq and Australia’s Telstra have shown interest in acquiring stakes in the company.

    Mobifone has an estimated brand value of $539 million. Plans for the privatization of the company have been in consideration since 2005 but the process has been repeatedly delayed.

    Now the government is pushing to complete the process in 2016-2017 as part of a push to hasten the privatization of state-owned enterprises.

    Australia’s Telstra could be a key partner for the operator. Telstra had previously been involved in the Vietnamese market as part of a partnership with Viet Nam Post and Communications, but exited the market in 2003. Now the operator is looking to return to the market by participating in the privatization of Vietnam’s telecom enterprises.

    Comviq is meanwhile a former partner to Mobifone and so it also has history in the market, while Telenor has been aggressively pursuing Asian expansion.

  • Southeast Asian economies lure Alibaba

    Southeast Asian economies lure Alibaba

    Southeast Asian economies are reaching a stage similar to China’s at the end of the last decade, when eCommerce began to take off, according to Alibaba Group executive vice-chairman Joseph Tsai.

    “I don’t blame you guys for having some degree of excitement about Southeast Asia when you look at the economies here,” he has told a Singapore conference staged by Google and local sovereign wealth fund Temasek.

    For example, he said, the per-capita GDP of Indonesia, the world’s fourth most-populous country, was about $2900. “That’s roughly the same as China’s per-capita GDP in 2009 and into 2010, a period when Alibaba’s C2C marketplace Taobao began to soar, adding about $50 billion in gross merchandise volume.”

    This was one reason Alibaba had invested about $1 billion in Singapore-based Lazada Group last month. Launched in 2012, Lazada now has shopping websites in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. It began by selling inventory to customers from its own warehouses but now also runs marketplaces for third-party sellers, as well as using its own logistics networks for deliveries.

    “We’re very excited about our investment in Lazada,” Tsai said. “It is starting from a very small base, but the potential is very, very big.”

    By adding marketplaces in Southeast Asia, Alibaba can offer merchants already selling on its platforms a chance to sell into new markets. “It’s very, very helpful to be able to present something that is more of a geographically diverse platform,” Tsai said. Online healthcare and fintech companies such as Alibaba-affiliate Ant Financial, poised for rapid growth in China, could expand their services to Southeast Asia.

    Tsai said he sees promise in the wide use of the mobile internet in Southeast Asia, a trend that typically gives rise to greater engagement and more purchases by online shoppers.

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  • Central Group Vietnam halts buying spree

    Central Group Vietnam halts buying spree

    Thai retailer Central Group Vietnam is putting the brakes on its acquisition spree to focus on consolidating profit, according to media reports.

    Deputy group CEO Prin Chirathivat says Vietnam is shaping up as a second home for the Central Group, with the company having established three Robins Department Stores there, acquired a 49 per cent stake in electronics retailer Nguyen Kim, taken over fashion eCommerce site Zalora Vietnam from Germany’s Rocket Internet, and bought out Big C Vietnam for $1.1 billion.

    Prin has told The Nation that he realises it is time to reap profit from the businesses in Vietnam, with the depreciation of fixed assets putting pressure on profitability despite positive cash flow.

    But while Central has decided to pull back on buying, he says it does not want to miss any interesting inorganic growth opportunities.

    Its biggest equity investment has been taking over 30 Big C Vietnam supermarkets, for which it secured a bridging loan from Bangkok Bank, according to the Bangkok Post. Central will use Zalora to strengthen the channels of local partner Nguyen Kim as well as its Robins stores.

    The Thai group still considers Vietnam as an important market, buoyed by a growing economy and high purchasing power. But it still has plans for Indonesia, including opening five more department stores in Jakarta and Surabaya by 2017.

    Back in Thailand, Central Group no longer owns Big C SuperCentre, but has acquired the Zalora business there.

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  • Central Group halts its acquisition spree in Vietnam, gets bridge loan for Big C deal

    Central Group halts its acquisition spree in Vietnam, gets bridge loan for Big C deal

    Thai retailer Central Group said it will put a hold on its acquisition spree in Vietnam, after the recent aggressive expansion in the country, to focus on making profit over the next three years, according to different media reports.

    The recent forays in Vietnam include the establishment of three Robins Department Stores, the acquisition of a 49 per cent stake at Vietnam’s largest electronics retailer Nguyen Kim, the takeover of fashion e-commerce site Zalora Vietnam from German group Rocket Internet, and a $1.1 billion buyout of Big C Vietnam.

    Vietnam was now shaping up as a second home for Central, Prin Chirathivat, deputy group CEO, reportedly said.

    He realised it was time to reap profit from the businesses in the neighbouring country, adding that the depreciation of fixed assets was enough to put pressure on profitability, despite the positive cash flow, according to a report on The Nation.

    However, according to the executive, Central Group will not want to miss any interesting inorganic growth opportunities in Vietnam even as it has decided to slow down the buying pace.

    Its biggest equity investment in Vietnam was the $1.1 billion deal to own over 30 Big C Vietnam supermarkets, which was reported to be accommodated by the sale of Big C Thailand unit to rival TCC Holding and its subsidiary Berli Jucker. But the 50 billion baht realisation from offloading the remaining 25 per cent in Big C Thailand will be used for other purposes, while Central Group secured a bridge loan from Bangkok Bank to finance the Vietnam deal, according to the Bangkok Post.

    Meanwhile, it will use Zalora to strengthen the channels of its local partner Nguyen Kim and Central Marketing Group’s unit in Robins, the media reports said.

    Despite the halt in further acquisitions, the Thai group still considers Vietnam as a very important market, buoyed by a growing economy and high purchasing power.

    “In Indonesia, we don’t have an opportunity to acquire retail businesses because there are no sellers unlike in Vietnam. Our expansion in Indonesia is slower than in Vietnam,” The Nation cited Prin as he compared Vietnam with Southeast Asia’s largest market.

    However, he also revealed the group’s plan to have five more department stores in Jakarta and Surabaya by 2017, as the retailer is currently operating only one store in the capital city.

    In Thailand, Central Group no longer has ownership in Big C Supercentre but has also acquired Zalora business in the country.

     

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  • Woori Bank to offer insurance products in Indonesia, Vietnam

    Woori Bank to offer insurance products in Indonesia, Vietnam

    South Korea’s commercial bank Woori Bank will join hands with local insurance companies to provide insurance service and products from its global outlets starting with its local unit in Indonesia.

    According to bank sources, the bank will be able to sell insurance products of Hanwha Life Insurance Co. through its Indonesian unit Bank Woori Saudara in the second half of this year. The bank wants to establish up to 300 outlets across the globe and decided to add insurance service, a bank official said.

    Hanwha Life Insurance’s Indonesian operation was established in October 2013 and currently has eight branches and 1,200 insurance planners. It will sell savings insurance products like variable annuity through 131 Bank Woori Saudara outlets. The partnership will be a win-win arrangement for the two since they can save costs by mixing business and sharing business.

    Depending on demand, Woori Bank will also sell non-life insurance products of Samsung Fire & Marine Insurance Co. and KB Insurance Co. via its Indonesian operation.

    Woori Bank will also target Vietnamese bancassurance market in partnership with Hanwha Life Insurance. The bank has two branches in Ho Chi Minh and Hanoi in Vietnam. Since the branches have the license to sell bancassurance products, it plans to sell saving insurance products of Hanwha Life Insurance and later products of Samsung Fire & Marine.

    Hanwha Life ranked eighth in terms of new insurance contracts in Vietnam last year. The insurer has 12,500 insurance planners in 54 branches.

    According to Woori Bank, the Indonesian life insurance market has almost doubled from $5.3 billion in 2010 to $9.8 billion in 2014. Vietnam showed similar growth.