Tag: Vietnam

  • Vietnam IT graduates face unreasonable job experience requirements

    Vietnam IT graduates face unreasonable job experience requirements

    Many companies demand prior experience from their recruits but fail to provide opportunities for newcomers to gain it—creating a vicious cycle that exacerbates recruitment challenges.

    Vietnam produces a significant number of IT graduates annually, along with professionals from other fields transitioning into IT through short-term courses or training centers. Despite this, tech companies often face manpower shortages because they prioritize hiring experienced professionals and dismiss fresh graduates who fail to meet stringent requirements.

    Highlighting this paradox, a reader named Hanuan commented: “Every company demands employees with experience, expertise, and compatibility with their work culture, yet they offer very low salaries. Where does that leave fresh graduates? For someone to gain experience, companies must provide opportunities. Without offering jobs, how do they expect these graduates to acquire the required experience?

    “This approach complicates recruitment as the high standards are nearly impossible to meet. Meanwhile, the experienced professionals they prefer often pursue their own career paths, leaving businesses passively reliant on a limited talent pool.”

    Another reader, Hai Nam Trinh, described the situation as increasingly unreasonable: “How do employers define ‘skilled workers’? Do they expect candidates to master all programming languages, networks, and systems? How many people in Vietnam actually fit that description? Such expectations are unrealistic for fresh graduates. If someone does meet these demands, companies then brand them as overconfident for asking for higher salaries.

    “This year, with fewer job openings and employers holding all the cards, workers have little choice but to accept unfair conditions.”

    Similarly, reader Thainv said: “The truth is that companies today set the bar too high. My company only hires senior or mid-level staff. Applicants must demonstrate strong English proficiency, evidenced by a TOEIC score of at least 700 or being able to hold basic English conversations. They also need solid technical expertise, a strong foundation, and advanced skills. For senior roles, candidates must additionally be equipped with management and operational skills, akin to a project manager. Realistically, how many people with 3-4 years of experience meet all these criteria?”

    Reader Minhtrungpham echoed these concerns: “Companies now mainly seek technical staff with at least one year of experience. How can fresh graduates meet this requirement? IT is a field that relies heavily on self-learning and mentorship from senior colleagues when challenges arise. Businesses could assign senior staff to guide newcomers. Implementing such a system could partially alleviate the shortage of IT professionals while also creating more job opportunities. However, if companies insist on requiring specific years of experience, this issue will persist indefinitely.”

  • Vietnam high-speed railroad to cost $500M annually to operate

    Vietnam high-speed railroad to cost $500M annually to operate

    Vietnam’s north-south high-speed rail is expected to cost US$500 million a year to operate in the initial time, with the government footing a substantial part of the bill.

    According to the Ministry of Transport, in the first four years revenues are expected to cover only operational and rolling stock maintenance costs, and the government will need to provide funds for infrastructure maintenance.

    The 1,541 km line, running between Hanoi and Ho Chi Minh City, is estimated to cost $67.3 billion, with construction expected to last from 2027 to 2035.

    In 2037 the annual operating costs are estimated at $477 million, with the government providing $238 million.

    They are projected to rise to $524 million and $213 million, $571 million and $187 million and $618 million and $140 million in the next three years. Vietnam’s GDP last year was $430 billion, according to the General Statistics Office.

    The project is expected to take 33.61 years to break even if infrastructure costs are not considered, the ministry said in a new report addressing feedback from National Assembly deputies regarding the railway project.

    During the feasibility study phase, detailed calculations of financial indicators would be done based on investment plans, operational strategies and the conditions obtaining at the time the railroad begins operation, it said.

    The ministry was confident of the project’s economic viability, citing quantifiable benefits such as reduced travel time, lower logistics costs, fewer accidents, and reduced CO2 emissions.

    The economic internal rate of return is estimated at 12%, the benefit-cost ratio at 1.06 and net present value at $9.15 billion.

    The ministry said while economic and indirect benefits had been carefully considered, they could not be included in the financial calculations.

    In addition to measurable benefits, the railroad is also expected to enhance Vietnam’s competitiveness, restructure its transportation and create new economic opportunities through effective land use.

    The construction is projected to boost the country’s GDP by an average of 0.97 percentage points annually.

    Addressing legislators’ concerns about prioritizing the high-speed railway over other infrastructure projects, the ministry explained that the funding would be spread over 12 years, averaging $5.6 billion annually, or 16.2% of the medium-term public investment plan for 2026-30, and only account for 1% of GDP in 2027, when construction is expected to begin.

    Besides, investment for 3,000 km of expressways has been arranged, and another 1,700 km are being built, meaning reaching 5,000 km of expressways by 2030 should not be difficult, it said.

    Allaying concerns about increasing public debts and potential cost overruns, it said public debt indicators are projected to remain within acceptable limits through 2030.

    While external debt obligations and budget deficits may see slight increases, these are manageable and considered reasonable compared to scenarios without the high-speed rail.

    The railroad is designed to integrate with regional and international networks, linking up with China through routes from Hanoi via Lao Cai and Lang Son, with Laos through the Vung Ang–Vientiane route and with Cambodia through Trang Bom.

    By 2050, even with significant investments in aviation and road transport, the north-south corridor is projected to have unmet passenger demand of 122.7 million trips annually.

    The high-speed railroad is expected to address this, the ministry said.

    It will have a double track with a 1,435 mm gauge, electrified for a designed speed of 350 kph and a load capacity of 22.5 tons per axle.

    The existing north-south railroad will continue to handle freight and short-distance passenger transport.

  • Honda Vietnam recalls nearly 2,700 CR-V Hybrid

    Honda Vietnam recalls nearly 2,700 CR-V Hybrid

    Honda Vietnam announced that it will recall 2,695 CR-V e:HEV RS hybrid SUVs (CR-V Hybrid) from Nov. 25 to examine and replace defective high-pressure fuel pumps.

    The affected vehicles were manufactured in Thailand between August 24, 2023, and September 11, 2024. Honda Vietnam imported and distributed those vehicles in Vietnam.

    Honda Vietnam has urged car owners to bring their vehicles to authorised dealerships for inspection and repairs. The replacement process expected to take approximately 30 minutes per vehicle.

    Although there have been no recorded cases of safety issues due to high-pressure fuel pump defects occurring in the Vietnamese market, Honda Vietnam recommends that for the benefit and safety of customers and passengers, customers should quickly bring their vehicles to Honda Automobile Distributors for inspection. The cost of inspection or replacement of affected parts will be paid by Honda Vietnam.

    The Honda CR-V e:HEV RS is a popular hybrid SUV in Vietnam. It was first available in Vietnam on October 25, 2023 and sold at VND1.26 billion (US$49,557). In the first ten months of 2024, Honda Vietnam sold 1,359 CR-V Hybrid.

  • Fruit, vegetable exports soar 27%

    Fruit, vegetable exports soar 27%

    Exports of fruits and vegetables were worth an estimated US$6.6 billion in the first 11 months of 2024, a 27% increase from a year earlier.

    The Vietnam Fruit and Vegetable Association came up with the estimate based on customs data, which shows exports to major markets growing at double-digit rates.

    In the first 10 months, for which official data is available, shipments to China rose by 30% year-on-year to $4.1 billion, while exports to the U.S., South Korea and Thailand jumped by 35%, 41% and 70%.

    Durian was the best-selling item, making up more than $3 billion worth of fruit and vegetable exports in the period, with China accounting for $3 billion.

    Vietnam has been the second largest supplier with a 39% market share, trailing Thailand’s 60.2%.

    Dang Phuc Nguyen, general secretary of the association, said China has very high demand for fruits and vegetables, especially Vietnamese durian.

    If exports to the country continue to grow at current rates, Vietnam could surpass Thailand as China’s top durian supplier in the next year or two, he said.

    He expected fruit and vegetable exports to touch a record $7 billion this year.

    Vietnam gained approval to export frozen durian and fresh coconut to China in August,and many exporters have since reported signing large contracts to supply them. One company said it has a deal to ship up to 1,500 containers of coconut.

    Coconut, passion fruit and some other agricultural products are growing in popularity in the U.S, while Thailand has increased imports of fruits from Vietnam this year as its own production has been hit by unfavorable weather.

  • Vietnam gold price’s rally continues as global rates jump

    Vietnam gold price’s rally continues as global rates jump

    Gold prices in Vietnam continued to rise Tuesday as global rates surged to a one-week high.

    Saigon Jewelry Company gold bar price went up 1.19% to VND85 million (US$3,345.80) per tael.

    Gold ring gained 1.08% to VND84 million per tael. A tael equals 37.5 grams or 1.2 ounces.

    Globally gold prices climbed to a one-week high on Tuesday, buoyed by a softer U.S. dollar, while the market awaited comments from Federal Reserve officials for cues on the U.S. interest rate outlook, Reuters reported.

    Spot gold rose 0.4% to $2,623.54 per ounce, the highest since Nov. 12. Prices rose 2% on Monday.

    U.S. gold futures gained 0.5% to $2,627.60.

  • Vietnam spends $1.4B on meat imports

    Vietnam spends $1.4B on meat imports

    Vietnam imported nearly US$1.4 billion worth of meat and meat products in the first 10 months of 2024, up 14% from a year earlier.

    Most of the imports came from India, the U.S., Russia, and Germany, customs data shows. They are much cheaper than local products, making them highly attractive to consumers.

    Imported pork costs around VND52,000-62,000 (US$2-2.5) per kilogram on the retail market while domestic varieties are priced at VND80,000-180,000.

    The Dong Nai Livestock Association said the influx of cheap imported meat is putting further pressure on the domestic livestock industry, which has already been struggling with reduced supply due to African swine fever.

    If strict controls are not implemented, low-priced imports could hamper the industry’s growth and pose food safety risks, they warned.

    According to the Department of Animal Health, of the 6,679 batches of imported meats inspected between May and September this year, over 1% contained salmonella and was disposed of.

    The department is working with exporting countries to monitor quality, but experts want the government to tighten quarantine measures to protect public health and prevent disease outbreaks from contaminated food.

    In response to the sharp increase in meat imports, market regulators have also strengthened control measures to get rid of substandard products.

    In August HCMC authorities seized 400 kilograms of imported frozen pork intestines and udder meat that lacked documentation.

  • Vietnam stocks gain little as global markets steady

    Vietnam stocks gain little as global markets steady

    Vietnam’s benchmark VN-Index rose 0.08% to 1,245.76 points while global markets showed stability as investors waited for the result of the U.S. election. The index closed 1.05 points higher after dropping 10.18 points in the previous session.

    Trading on the Ho Chi Minh Stock Exchange decreased by 31% to VND10.982 trillion.

    The VN-30 basket, comprising the 30 largest capped stocks, saw 11 tickers gained.

    GVR of Vietnam Rubber Group led with a 1.7% rise, followed by SHB of Saigon Hanoi Commercial Bank, up 1%.

    POW of electricity producer Petrovietnam Power Corporation went up 0.9% and HPG of steelmaker Hoa Phat Group closed 0.8% higher.

    Nine blue chips fell. CTG of state-owned lender VietinBank dropped 1.8% and BID of state-owned lender BIDV declined by 0.6%.

    Foreign investors were net sellers to the tune of VND854 billion. They have been net selling non-stop for the last eight weeks.

    They mainly net sold MSN of conglomerate Masan Group and VHM of property giant Vinhomes.

    The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, rose 0.18%, while the UPCoM-Index for the Unlisted Public Companies Market went up 0.30%.

    Globally stocks were steady on Tuesday but implied volatility ratcheted up in currency markets in an early indication of the market frenzy to come, as the world awaits the outcome of a knife-edge U.S. election, Reuters reported.

    Europe’s benchmark STOXX index edged down 0.2% while MSCI’s broadest index of Asia-Pacific shares outside Japan inched 0.7% higher, as stock markets held their breath ahead of Wednesday’s open.

    China’s blue chip CSI300 jumped 2.5% and Hong Kong’s Hang Seng rose 1.4%.

  • Vietnam extends trial program for local casino players

    Vietnam extends trial program for local casino players

    A trial program which allows Vietnamese to play at a casino on the southern island of Phu Quoc has been extended until the end of the year, according to a recent government decree.

    Corona Casino began operation in 2019 in a trial program that allows locals to gamble. The trial ended in 2022 but was extended to the beginning of this year and has now been extended one more time.

    Of the country’s nine casinos, Corona remains the only one where Vietnamese can play if they meet income requirements. Other casinos only serve foreigners.

    The government has also approved for Van Don Casino, which has been earmarked in the China-bordering province of Quang Ninh, to begin the same trial program for three years after it receives operation permit.

    Casino development in Vietnam is considered a special business which requires a location approval from the Vietnam Communist Party’s Politburo and a policy approval from the Prime Minister.

    A developer needs to disburse at least 50% of projected capital on a casino project before commercial operation can begin.

    A Vietnamese player needs to be 21 years of age or older with a minimum income of VND10 million (US$395) a month.

    Corona Casino posted VND6.4 trillion in revenue between 2019 and 2023, with a third of it recorded in 2023 alone, according to the Ministry of Finance.

    It posted an accumulated loss of VND3.7 trillion by the end of last year.

  • Chinese online seller Temu not registered in Vietnam as required by law

    Chinese online seller Temu not registered in Vietnam as required by law

    Chinese e-commerce platform Temu is not registered in Vietnam but still allows local consumers to shop on it.

    We have asked the Vietnam e-Commerce and Digital Economy Agency about it and the latter confirmed the news Wednesday.

    The law requires cross-border e-commerce platforms to register in the country if it has a Vietnamese domain, uses Vietnamese as a display language or has over 100,000 transactions a year in Vietnam.

    Temu started allowing users in Vietnam to shop last month, and Vietnamese is among the four languages it offers them.

    The agency is studying the impact of Temu on the local market, especially its discount policy, to prevent sale of counterfeits, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan told reporters recently.

    Temu, owned by Chinese e-commerce giant PDD Holdings, launched the U.S. in September 2022 and is now present in 82 countries and territories, according to Singapore-based consultancy Momentum Works.

    It recorded gross merchandise value of US$20 billion in the first half of this year, up from $18 billion of last year’s total, it added.

    Indonesia earlier this month banned the platform to prevent an influx of cheap Chinese goods.

    Other countries have made moves to limit the platform to protect their small and medium-sized businesses.

  • South Korean doctors eye move to Vietnam

    South Korean doctors eye move to Vietnam

    Many South Korean doctors in various specializations, unhappy with working conditions back home, have been applying for jobs in Vietnam this year.

    More than 30 of them took a health test late last month and are now preparing for an English exam to be held at the HCMC University of Medicine & Pharmacy within two months. Foreign doctors from nations with advanced healthcare systems are not required to pass local qualification exams to work in Vietnam, but need to furnish the professional licenses issued in their home countries and undergo a health check and an English test.

    A representative of a company that helps translate and notarize documents for foreign doctors said many South Korean cosmetic surgeons, dermatologists, dentists, and emergency medicine specialists are interested in working in Vietnam.

    Many are looking for career opportunities in Vietnam this year, unhappy with the working conditions at private clinics in their country and enticed by those available in the latter nation.

    A private medical facility in Hanoi offers a 44-hour work week, a monthly salary of 30 million won (US$22,000) and $800 in housing assistance to South Korean doctors.

    In South Korea, doctors have been at odds with the government over a plan to boost medical school admissions by 2,000 per year.

    Some 12,000 trainee doctors walked out in February to protest the change, resulting in widespread cancellations of surgeries and other essential treatments.

    The government has since made several attempts to alleviate the pressures on the country’s medical system. The strike is ongoing.

    The number of emergency room doctors has declined by 42% at hospitals across the nation, with seven of them contemplating partial closure of emergency rooms, Yonhap News Agency reported last month, citing a medical professors association.

  • Grab Vietnam chief says company ‘stronger than ever’

    Grab Vietnam chief says company ‘stronger than ever’

    Grab is now “stronger than ever” after 10 years of operations in Vietnam, its country chief said in the wake of competitor Gojek’s exit from the market.

    It now has more users and partners than ever, Alejandro Osorio, managing director of Grab Vietnam, said at the company’s recent 10th year celebration.

    They number in the millions, and tens of millions of transactions are conducted each month, he said. The Singaporean company entered Vietnam in 2014 as GrabTaxi, and has since grown to offer 15 services in 50 localities.

    The ride-hailing market has also seen many other competitors like Uber, Tada and Baemin come and go and now only Be and Xanh SM remain.

    Grab remains the predominant player with a two-third market share, according to research firm Q&Me. In the food delivery business, Grab faces competition from Be and ShopeeFood.

    Many competitors entered the market and spent a great deal of resources on discounts, but did not achieve sustainability, Osorio said referring to their exit.

    Grab on the other hand focused on giving users a number of reasons to open its app, not just for booking a ride, he said.

    Food, delivery, shopping, and other services help maintain a loyal group of customers and reduce the cost of acquiring new ones, he said.

    This complicated network of services helps create success and is difficult to duplicate, he said.

    Grab has also changed its discount strategy, and only has promotions when necessary instead of offering many, he said.

    It also works with partners such as restaurants and payment companies, and so the discounts come from them and not its pockets, allowing it to maintain a price advantage, he explained.

    However, it continues to pour “large investments and efforts” into improving tech solutions, he said, pointing to the new features it has been offering such as personalizing users’ experience and allowing them to order as a group as examples of this.

    But what competitors remain are not making things easy.

    ShopeeFood is backed by e-commerce giant Shopee, while Be and Xanh SM are widely supported since they are Vietnamese businesses.

    Xanh SM’s all-electric fleet also aligns with the government’s plans for future development.

    Le Hong Hiep, a fellow at the ISEAS – Yusof Ishak Institute in Singapore, told the Vietnamese media in June that Xanh SM has the potential to threaten the dominance of Grab if it maintains current growth rates.

    But Osorio said Grab believes competition is positive and fosters development.

    The company is considering helping drivers switch to environment-friendly vehicles, and combining food delivery orders to reduce travel for drivers, he added.

    Vietnam’s ride-hailing and food delivery market was estimated at US$3 billion last year and is expected to reach $10 billion by 2030, according to a 2023 report by Google, Temasek and Bain & Co.

  • Vietnam auto ownership triples in 13 years

    Vietnam auto ownership triples in 13 years

    Car ownership tripled in 13 years to 63 vehicles per 1,000 people last year, according to the Ministry of Industry and Trade.

    The number of registered automobiles reached 6.31 million by the end of last year, it said in a recent report.

    Last year 408,500 new vehicles were registered.

    The ministry expects annual sales to top one million by 2030 and five million by 2045.

    In 2022 record sales of 500,000 units propelled Vietnam into the list of the four largest auto markets in Southeast Asia along with Thailand, Indonesia and Malaysia.

    The ministry wants at least 80% of autos to be green by 2045 and the same ratio for domestic production.

    Now around 40% are imported as completely-built units, according to the Vietnam Automobile Manufacturers Association.

    The ministry wants supporting industries to manufacture key auto components such as transmissions, gearboxes, engines, and bodies.

    For now local firms are labor intensive and only capable of producing simple parts, it admitted.

    Thailand has 710 tier-one and 1,700 tier-two suppliers, while the comparable numbers for Vietnam are only 33 and 200.

    “To make good cars, we need quality materials for manufacturing as well as strong capabilities in robotics and quality control,” the ministry added.

  • Viettel to gift 4G phones to 700,000 2G subscribers

    Viettel to gift 4G phones to 700,000 2G subscribers

    State-owned telecom giant Viettel will spend VND300 billion (US$12.2 million) to gift 4G phones to 700,000 of its subscribers who still use 2G devices.

    The military-owned company announced Friday that the program, which aims to support a rapid switch to 4G networks, is meant for customers still using 2G phones who lack access to 4G devices due to their remote location or financial status.

    It plans to gift feature phones but with added cloud phone features that allow the use of some OTT apps.

    The program will run from now until the 2G network is shut down on Oct. 15, with eligible users getting a message instructing them to go to the nearest Viettel store or contact its local employees for support.

    Viettel said it would prioritize subscribers in mountainous regions affected by recent storms, like Lao Cai, Yen Bai, Tuyen Quang, Hoa Binh, Bac Kan, Son La, Dien Bien, Lai Chau, Cao Bang, and Ha Giang provinces.

    The Ministry of Information and Communications and telecom firms have been taking a number of measures to promote the shift from 2G. The number of 2G users declined from 11 million in July to three million now.

    Viettel has the most 2G subscribers of any network operator, but has seen over eight million switch to 4G devices this year.

    It recently installed over 6,000 new base stations nationwide to expand its 4G network coverage to 96% of the population, including four million new users in remote and rural areas.

    Pulling the plug on 2G will promote the adoption of 4G, which can help familiarize people with digital and online public services, and free up resources for network providers to focus on developing 5G and 6G technologies.

  • Vietnam rubber exports hit $1.7B in 8 months

    Vietnam rubber exports hit $1.7B in 8 months

    Vietnam exported 1.12 million tons of rubber worth US$1.76 billion in the first eight months of 2024, customs data show.

    This marked a 7.2% year-on-year decline in volume but a 8.4% growth in value from the same period last year, according to the General Department of Customs.

    Vietnam shipped out 209,726 tons of rubber worth nearly $345 million in August alone, up 12.7% in volume and 12% in value from the previous month.

    The average export price was $1,637 per ton, a 1.1% month-on-month decrease but up 26.8% from a year ago.

    Rubber exports are forecast to reach $3-3.5 billion this year, a $200-400 million increase from 2023.

    The country currently has a latex output of 1.3 million tons per year from 910,000 hectares of rubber plantations, according to the Vietnam Rubber Association.

    Every year, more than 300,000 tons of rubber are used in processing and manufacturing, leaving a large amount of raw material for export. This has opened up considerable export potential for the local industry, especially in the context of potential global supply shortages in the 2024 – 2025 period.

  • Samsung to invest $1.8B more in northern Vietnam

    Samsung to invest $1.8B more in northern Vietnam

    A subsidiary of South Korean electronics giant Samsung that has operations in the northern province of Bac Ninh is set to invest another US$1.8 billion there.

    The memorandum of understanding for investment by Samsung Display Vietnam, which was signed Sunday and witnessed by Prime Minister Pham Minh Chinh, is meant for expansion.

    Samsung Display Vietnam reported profits of $283.6 million on revenues of $6.8 billion in the first half of this year.

    Samsung, the biggest foreign investor in Vietnam, has $22 billion in the country, half of it in Bac Ninh province.

    Four factories in Vietnam contributed around 30% of Samsung’s global revenue in the period.

    Bac Ninh authorities on Sunday announced approvals for $5.5 billion worth of foreign investments in various projects, including by Apple suppliers Foxconn and GoerTek.

    The government seeks to make the province a dynamic economic and cultural hub of the north linked with Hanoi.

    By 2050 Bac Ninh hopes to become among the economic leaders of Vietnam. It also aspires to become one of the top global centers for high-tech industries, research and development and smart manufacturing.