Tag: Vietnam

  • Tim Cook arrives in Vietnam

    Tim Cook arrives in Vietnam

    Apple CEO Tim Cook arrived in Hanoi Monday morning for a two-day business trip to meet notable content creators and app developers on App Store.

    Cook said upon arrival he was excited to meet with content creators, students and customers in Vietnam and learn about the way they use Apple’s products.

    Apple has unveiled plans to strengthen its commitments to Vietnam during his visit, including increasing spending for suppliers and fund a clean water initiative at schools.

    Since last year the company has been launching new major services in Vietnam.

    It opened the Apple Store Online in May and launched payment service Apple Pay in August, is taking pictures of Vietnamese streets to develop its Apple Maps and expanding recruitment to hire engineers to develop its Siri voice assistant in Vietnamese.

    Cook, 64, became CEO in 2011, and doubled the company’s revenues and profits by 2020. Under him, new products like Apple Watch and Apple Vision Pro, a virtual reality headset, were developed.

    In 2023 it became the first company in the world to achieve market cap of $3 trillion.

  • Vietravel Airlines reports first profits in 3 years

    Vietravel Airlines reports first profits in 3 years

    Vietravel Airlines has reported a profit of VND10 billion (US$400,128) for the first three months of the year, achieving its first profitable quarter since its inception in 2021.

    As a subsidiary of the tour operator Vietravel, the airline announced first-quarter revenues exceeding VND491 billion, surpassing its initial target by 42%.

    The profits stemmed from increases in domestic airfare prices, which typically reach their peak during the two or three weeks around the Tet (Lunar New Year) holiday. This year, the holiday period was from February 7 to 14.

    Typically, airfare prices start to decrease gradually after Tet. However, this year, prices have not followed the expected post-holiday downturn and have remained elevated.

    Factors contributing to sustained high prices include rising operational costs and a shortage of aircraft, particularly as numerous airlines have been forced to ground A321 planes, commonly used for domestic flights, for engine maintenance.

    With a modest fleet of just three A321 aircraft, Vietravel Airlines is nevertheless setting ambitious goals, targeting VND1.05 trillion in revenues for the next quarter. The airline is expanding its network with new routes and increasing the frequency of flights both within Vietnam and internationally.

    Currently, Vietravel Airlines operates charter flights to Japan, connecting Ho Chi Minh City with Takamatsu and Da Nang with Fukushima, among others.

  • Power demand expected to surpass forecasts on early onset of hot weather

    Power demand expected to surpass forecasts on early onset of hot weather

    Power consumption in Vietnam this summer is expected to increase by 13% year-on-year between May and July, 9.6% higher than forecast, posing possible supply challenges.

    This is because the weather is expected to become hot sooner than normal, and this could cause pressure on supply, especially in the north, Nguyen Quoc Trung, deputy director of the National Load Dispatch Center, said at a forum Monday.

    The north needs around 25,000 MW of power, rising by 10% annually.

    This means every year a new Son La hydropower plant, with a capacity of around 2,500 MW, needs to be built, a major challenge to the power sector, Trung said.

    Between April and July this year peak demand in the region might reach 27,500 MW, up 17% year-on-year, while production would only rise 10%, he added.

    But Minister of Industry and Trade Nguyen Hong Dien has ordered state-owned power monopoly Vietnam Electricity (EVN) to “ensure there are no power shortages under any circumstances.”

    To ensure supply, the National Load Dispatch Center has been storing water in dams. There are now 11 billion cubic meters, 2.7 times higher than a year ago.

    EVN plans to generate higher-cost power such as from oil and liquefied natural gas.

    Vo Quang Lam, its deputy director, said the Vietnam requires three times power as the global average to create its GDP, and so all consumers should conserve electricity.

  • Vietnam beats Thailand at durian exports to China

    Vietnam beats Thailand at durian exports to China

    Vietnam has surpassed Thailand as the top durian exporter to China, shipping 32,750 tons in the first two months of 2024.

    This accounted for 57% of China’s imports, up from 32% last year, according to Vietnam Customs.

    Vietnam’s export of the fruit to China rose by 2.4 times year-on-year.

    Thailand saw its exports plunge by half to 19,000 tons.

    At US$4,916 per container, Vietnam’s export price was almost 20% lower than Thailand’s.

    Dang Phuc Nguyen, general secretary of the Vietnam Fruits & Vegetables Association, said Vietnam’s weather allows durian to be grown all year round.

    It shares a border with China, which offers it an advantage in transportation.

    Farmers have been hiking durian prices in recent months thanks to high demand from China.

    In March the prices of the highest quality Monthong variety in the Mekong Delta were up 15% from a year earlier to VND218,000-230,000 ($8.7-9.2) per kilogram.

    Vietnam’s durian exports are expected to top $3.5 billion this year, up 66% from last year.

  • Vietnam’s overseas graduates face job-finding struggles at home

    Vietnam’s overseas graduates face job-finding struggles at home

    Holding a high school diploma from Canada and a university degree in Chinese commerce language from China, Tat Dat has faced difficulties securing a fulfilling job upon his return to Vietnam.

    After moving back to his hometown of northern Quang Ninh province in 2022, it took him four months and over 20 job applications to land a position in e-commerce, with a starting salary of VND8 million ($320) per month – less than he hoped for.

    “I diligently monitored job platforms every hour, in search of an e-commerce trade position, hoping for a monthly salary of VND12 million to VND20 million,” Dat said. “Upon eventually securing such a position, the employers informed me that what they could offer me would be VND8 million, a figure not open to negotiation.”

    Dat said he believed that the salary he was offered would never compensate for the VND15 billion invested in his education, yet he remained at the position for six months.

    However, the unsatisfactory salary was merely one of several challenges he encountered in the Vietnamese job market, including difficulties adjusting to workplace culture, being tasked with duties not outlined in his contract, and frequently working overtime without additional compensation.

    “In practice, although the company’s policy stated an eight-hour workday, the actual hours frequently extended to 10-12 hours a day, with no additional overtime compensation,” Dat said. “This was a stark contrast to my previous experiences where an eight-hour workday strictly meant eight hours, nothing more.”

    Dat discovered that being bilingual was no longer a distinctive advantage, facing competition from peers fluent in three or four languages.

    “Encountering peers fluent in English, Chinese, Korean, and French made me feel less competent,” he admitted.

    Dat’s experience aligns with the results of a survey conducted by recruitment agency SHD involving 350 Vietnamese graduates of foreign institutions. The study revealed that 87% experienced cultural and workplace adaptation challenges within Vietnamese corporations, while 83% were dissatisfied with their salary and benefits.

    Ngo Thi Ngoc Lan of headhunt service Navigos Search observed that although graduates returning from abroad bring confidence, language skills, and open-mindedness, they often face difficulties adjusting to Vietnam’s distinct workplace culture. Such graduates require additional time to acclimate compared to their domestically-educated peers, due to the substantial differences in business practices between Vietnam and other countries.

    Ha Vy, a U.S. taxation degree holder, had experiences similar to Dat. After investing VND6 billion in her degree, Vy returned to Vietnam confident in her ability to get a well-paying position. Nonetheless, her lack of practical work experience meant it took her up to four months to find employment offering a monthly salary of VND10 million.

    “My expectations were set on a starting salary of at least VND20 million, but such opportunities proved elusive,” she said.

    After enduring over a year of dissatisfaction due to the mismatch between her efforts and remuneration, the 27-year-old embarked on a job search in Malaysia, driven by her frustration with the undervaluation of her degree in Vietnam.

    “I had anticipated that my degree would garner greater appreciation and financial reward in Vietnam,” Vy said.

    She further explained that despite her proficiency in English, the absence of practical experience posed a significant barrier. Consequently, she said that she now deems it unrealistic for overseas-educated graduates to expect salaries ranging between US$2,000-$3,000 upon their return to Vietnam.

    Le Thanh Ngan, the Head of Recruitment at FPT Education, said that foreign degree holders frequently aspire to high-ranking positions straight out of college, overlooking entry-level opportunities despite their lack of experience, which further complicates their job search in relation to salary expectations.

    But there are more reasons than that for graduates returning from abroad’s challenging job seeking journeys. Vu Hanh Hoa, CEO of a leadership training institute in Hanoi, pointed out that the ongoing economic downturn has been an additional hurdle for this group. As companies streamline operations, they favor experienced employees over those with overseas degrees who necessitate comprehensive training.

    “Major corporations are also facing challenges and have been compelled to reduce expenses to optimize their functions,” she commented. “They prioritize retaining efficient, versatile staff capable of delivering immediate value.”

    Hoa noted that many graduates returning from abroad come from affluent backgrounds, thus lacking the resilience and perseverance deemed essential in the challenging Vietnamese job market. Only a small fraction exhibit the endurance and tenacity valued by employers in today’s global economic climate, she added.

    Another challenge for holders of foreign degrees is their limited experience in communication and building connections within the Vietnamese context.

    “Students who have spent significant time abroad tend to understand foreigners better than their own compatriots, necessitating a considerable period to re-acclimatize to Vietnamese society, its people, attitudes, and work culture,” Hoa explained.

    Thus, many employers estimate that international graduates require six to 12 months to adapt, during which they incur significant training expenses without providing immediate benefits to the company. This in turn leads to employer’s reluctance to offer high initial salaries.

    Hoa advised that instead of focusing solely on the prestige of their foreign degrees, graduates returning from abroad should pursue opportunities to gain practical work experience to alleviate their employment challenges.

    “Often, these graduates return with the expectation that their “higher” qualifications merit positions at renowned, large companies with substantial salaries,” she said. “This expectation creates a barrier to employment.”

    Hoa thus encouraged returning graduates to adjust their expectations and recognize that a foreign degree serves merely as an additional credential. In the face of the economic downturn, as companies increasingly prioritize actual work performance over academic qualifications, Hoa said the ability to “genuinely contribute” was the key factor in getting hired.

    Thus, overseas degree holders should consider the importance of accruing work experience and evaluate how they can add value to a company based on their strengths. Hoa advised against holding out for positions in their preferred fields that meet their salary expectations.

    “Set aside your degrees and avoid becoming ensnared in delusions of grandeur,” she counseled. “Don’t become overly fixated on your foreign education.”

    Otherwise, such graduates risk enduring continuous challenges similar to those faced by Dat.

    Disheartened by his comparatively lower earnings in relation to his domestically-educated counterparts, he opted to take out loans from his parents and other sources to launch a homestay business.

    “The overwhelming financial pressure left me with no choice but to venture into entrepreneurship,” he said. “Starting this business has put me in debt of VND7 billion.”

    Although the financial success of his new business remains uncertain, the venture’s costs have accumulated to the total amount Dat has spent on his education and business startup, making it even more difficult for him to earn back what he has invested.

  • PepsiCo to invest $400M more in two new plants in Vietnam

    PepsiCo to invest $400M more in two new plants in Vietnam

    U.S. food and beverage giant PepsiCo has committed to investing an additional US$400 million to build two new plants powered by renewable energy in Vietnam, its government said.

    The announcement came last Friday as delegations of more than 60 U.S. enterprises, including Suntory PepsiCo Vietnam Beverage, paid a 3-day work visit to Vietnam last week.

    The Vietnamese government said one beverage manufacturing factory will be in southern Long An Province and cost over $300 million, and another for food processing will be in northern Ha Nam Province, with an investment of $90 million.

    The report did not give details on the commissioning time of the two factories.

    Late last year, the company said it had been granted an investment certificate for the Ha Nam factory, which was scheduled to start operating in the third quarter of 2025.

    PepsiCo, which runs five factories across Vietnam, entered the country in 1994.

  • How The Body Shop Vietnam does business

    How The Body Shop Vietnam does business

    Operated by a Malaysian firm in some Southeast Asian locations, cosmetics retail chain The Body Shop Vietnam posted its first loss last year after three years of declining profits.

    InNature Berhad, which owns The Body Shop Vietnam, said that the company has been unaffected by the shutdown of The Body Shop U.S. operations last week. The company also operates The Body Shop in Malysia and Cambodia.

    The Body Shop, a 50-year-old brand founded in the U.K, has been scaling down its operations in the U.K. and Canada.

    The first The Body Shop store in Ho Chi Minh City opened in 2009. After 15 years, it now has 41 outlets nationwide.

    Revenues before Covid-19 were on the rise from VND112 billion in 2018 to VND162 billion in 2020. Its annual growth rate of over 20% were higher than InNature Berhad’s revenue, which dropped 8.8%.

  • Vietnam Airlines to launch new routes to Europe

    Vietnam Airlines to launch new routes to Europe

    Vietnam Airlines will launch two new routes connecting Hanoi and Ho Chi Minh City with Germany’s Munich starting October.

    The state-owned carrier said Tuesday that it will use the wide-body Boeing 787 aircraft for the routes.

    The Hanoi-Munich route will have two flights per week, departing on Friday and Sunday and returning on Monday and Saturday.

    The HCMC-Munich route will have one flight per week, leaving on Monday and returning on Tuesday. Starting in December, another flight will be added every Wednesday.

    Vietnam Airlines is the only Vietnamese airline to have direct routes to Europe.

    Private carrier Bamboo Airways used to operate flights to Germany and the U.K. but had shut them down since the end of last year as part of its business strategy change.

    Munich is the third-largest city in Germany and an economic, cultural, and transport hub. It is also famous for its mix of ancient and modern architectural structures and for the Oktoberfest beer festival, which is held every October.

    With the new routes Vietnam Airlines will have four routes from Vietnam to Germany, including the Hanoi and HCMC routes to Frankfurt. It also has flights from Vietnam’s two biggest cities to Paris and London.

    The carrier’s chairman Dang Ngoc Hoa said in January that it would open more international routes this year, with possible destinations being Milan, Copenhagen, Seattle and Vancouver.

  • Ministry of Finance wants 50% tax on e-cigarette atomizer

    Ministry of Finance wants 50% tax on e-cigarette atomizer

    The Ministry of Finance has maintained its proposal to impose a 50% Most-Favored Nation (MFN) tariff on electronic atomizer, the device used to heat up liquid solution used for vaping.

    In a recent response to the Ministry of Health, which has advised the government to ban the imports of e-cigarettes due to health concerns, the finance ministry said that as the code of e-cigarette products were included in Vietnam’s list of exported and imported goods, it needed to impose a tax on such products in case the government allows their import in the future.

    The MFN is what countries promise to impose on imports from other members of the World Trade Organization.

    Vietnam now imposes a 50% MFN tariff on the liquid solution used in e-cigarettes and on the e-cigarettes in which the atomizer and the solution are inseparable.

    The tariffs, however, have mostly no practical impact as Vietnam does not allow the imports of e-cigarette components. These products, however, are widely popular in the country, mostly because of smuggling.

    The Ministry of Industry and Trade has reminded the finance ministry that atomizers should be regulated as electronic products already subject to an MFN tariff of 5% according to Vietnam’s commitments to the WTO.

    But the finance ministry said that e-cigarette components were new products that did not exist when Vietnam made commitments with the WTO.

    Government officials estimate that smoking is the cause of over 40,000 deaths in Vietnam every year.

    Experts say that the rising popularity of e-cigarettes means they should be regulated to prevent smuggling.

  • Gasoline prices fall

    Gasoline prices fall

    Gasoline and diesel prices dropped Thursday afternoon.

    The popular fuel RON95 gasoline fell 1.55% from a week ago to VND23,550 ($0.95) per liter.

    Biofuel E5 RON92 declined by 1.05% to VND22,510.

    Diesel dropped 1.44% to VND20,470.

    In the last seven days fuel prices swinged due to concerns that China would struggle to regain growth momentum, a rise in gold and cryptocurrency investment, and a reduction in OPEC production.

    Globally gasoline prices dropped by 1.8-2.1% per barrel while oils dropped 1.1-1.9%.

  • Electricity bills double for Hanoians on meter reading date change

    Electricity bills double for Hanoians on meter reading date change

    Households in Hanoi have received electricity bills two or three times higher than usual this month after national utility Electricity Vietnam (EVN) postponed its meter reading date.

    Minh of Ha Dong District said the power consumed and bill for January are both more than double the usual at 2,127 kWh and VND6.7 million (US$271.4) though consumption has been completely normal and he bought no new electrical devices.

    The same thing has happened to Hanoi’s nearly 2.8 million electricity users, and EVN’s change in meter reading date seems to be the reason.

    The reading date has been moved to the end of each month from the beginning.

    Thus the January bill is for until Feb. 29 and not metered until Feb. 7 as used to be the case, meaning the bills are for two months.

    It is a one-time occurrence, EVN noted

    However, many consumers have correctly pointed out that combining two months’ bills would place their electricity usage in a higher tier. The pricing system is in slabs with higher per unit cost with increasing consumption.

    In Huong’s case, the first 350 kWh would be charged at multiple rates from tier 1 to 5 (VND1,806-3,050 per kWh).

    But if the extra 400 kWh is added, it would be charged entirely at tier 5 and 6 (VND3,050-3,151 per kWh) rates.

    EVN Hanoi has however reassured consumers it has made allowance for this, and the bills would be normal.

    For example, the tier 1 rate would be applied for the first 85 kWh instead of the usual 50, it said. Last year the reading date was changed in several provinces and cities. EVN had planned to effect the change in Hanoi last November but postponed it.

    EVN plans to apply the new date across the country by 2025, when electronic meters are installed in every household.

  • Vietnam encourages Australian airlines to establish routes to its cities

    Vietnam encourages Australian airlines to establish routes to its cities

    The Vietnamese Government creates favourable conditions for airlines to develop and compete healthily, and encourages Australian carriers to fly to Vietnam, according to Prime Minister Pham Minh Chinh.

    This statement was made during a ceremony commemorating 30 years of direct air travel between Vietnam and Australia in Melbourne city on Tuesday morning. The event was part of activities in the Prime Minister’s trip to attend the ASEAN – Australia Special Summit and his official visit to Australia.

    He expressed his hope that Vietnam’s airlines will cooperate and compete fairly, especially in the current context – when the two countries will upgrade to a comprehensive strategic partnership.

    Currently, Vietnamese airlines do not use domestically trained pilots, engineers, and mechanics, so he hoped Australia to support the training of pilots, mechanics, aviation managers.

    He also urged Australian banks, investment funds, and investors to invest indirectly in Vietnamese airlines, saying that the Vietnamese ministries and sectors will strengthen their role in state management, remove difficulties, and proactively support airlines to overcome challenges and promote rapid and sustainable development.

    The PM took the occasion to thank Australia, specifically Australian citizens who choose Vietnamese airlines such as Vietnam Airlines and Vietjet, to visit Vietnam, saying that this has contributed to boosting cultural connections and aviation economic development of the two countries.

    Vietnam Airlines has been strengthening cooperation with partners in Australia to develop products and diversify services, thereby continuously bringing benefits to passengers.

    It has paid attention to coordinating with agencies, travel companies and Australian partners to strengthen tourism promotion and promote destinations of both countries.

  • Vietnam Airlines to ground 12 planes for maintenance

    Vietnam Airlines to ground 12 planes for maintenance

    Vietnam Airlines has to ground 12 A321 aircraft, representing 20% of its domestic fleet, for up to 300 days due to engine issues, as supply chain disruptions have doubled the maintenance time, its CEO said.

    Le Hong Ha said engine issues are plaguing over 3,500 A321/A320neo aircraft worldwide with Pratt & Whitney engines.

    Vietnam Airlines uses 24 of the engines, he said Thursday on the sidelines of the 2024 International Airline Symposium in Hanoi.

    The engine problems have also impacted Vietnam Airlines’ Airbus A350 aircraft, he added.

    The problem is caused by a rare condition in the powder metal used to manufacture certain engine parts, a concern flagged by Pratt & Whitney in July 2023 as affecting engines produced between October 2015 and September 2021.

    This has caused numerous airlines globally to ground or inspect their aircraft.

    Budget carrier Vietjet may also have fleet trouble due to the engine issues.

    A shortage of aircraft has been partly blamed for the recent jump in domestic airfares, which is turning passengers away.

    Before and after the Lunar New Year holidays airlines carried 13% fewer passengers than last year.

    But Ha pointed out that Vietnam is among the few countries still capping airfares, adding the ceilings should be scrapped in future.

  • Motorbike dealerships offer steep discounts in post-Tet sales

    Motorbike dealerships offer steep discounts in post-Tet sales

    Dealerships are slashing the prices of numerous motorbike models to stimulate demand in the quiet post-Tet (Lunar New Year) season.

    Standard Honda Vision models are on sale for VND30 million (US$1,218.2) at some dealerships, down VND1-2 million from before the Tet holiday, which ran from February 8 to 14.

    Notably, all versions of the Honda Winner X have had their prices cut by VND3-5 million to VND31-36 million, nearly 35% lower than their suggested retail price of VND46-50 million.

    The 2023 Yamaha Exciter 155 VVA is currently subject to a VND5 million discount, while the Suzuki Raider and Satria have had their prices reduced by VND3-5 million at some showrooms.

    Dealerships are eager to offer more discount to boost sales and get rid of remaining inventory.

    The steep price cuts are necessary to spur demand as the motorbike market is usually inactive in the first quarter, especially after the Tet holiday.

    The market has also slowed in general as sales of motorbike decreased by 16.21% from 2022 to 2.51 million units last year, according to the Vietnam Association of Motorbike Manufacturers.

    The downtrend continued in January, with Honda Vietnam reporting motorbike sales of 227.560 units, down 0.8% from the previous month.

    Despite the slumping sales, Vietnam is still the second largest motorbike consumer in Southeast Asia, according to data recently published by market intelligence firm MotorCycles Data.

  • Opportunity for Vietnam as Indonesia to import 1.6M tons more rice

    Opportunity for Vietnam as Indonesia to import 1.6M tons more rice

    Indonesia plans to increase rice imports by 1.6 million tons this year, giving Vietnamese exporters a big opportunity, the Vietnam Trade Office in that country said.

    The import licenses for the additional quota would be issued soon by its Ministry of Trade once legal procedures are completed, it said.
    It will increase the country’s rice imports to 3.6 million tons this year.

    Vietnamese exporters could capitalize on this opportunity, but would have to compete on price with many other countries, according to the head of a government agency in Dong Thap Province, one of the largest rice producers in the Mekong Delta.

    According to the official, Vietnam has advantages in terms of delivery times and quality, but its prices are high.

    “If businesses offer competitive prices, the chances of winning bids will be better.”

    The trade office advised businesses to push exports in the early months of the year since Indonesia’s main rice harvest has been delayed by two to three months due to a water shortage caused by the El Nino phenomenon.

    Indonesia imported 441,930 tons of rice in January, an 82% increase year-on-year, including 32,340 tons from Vietnam.

    Thailand accounted for 129,780 tons.

    Last month seven Vietnamese companies won a bid to export 300,000 tons of rice to Indonesia.

    Last year Indonesia was the second largest importer of Vietnamese rice, buying over 1.1 million tons or nearly nine times the volume it had imported in 2022.