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Tag: Vietnam

  • Mobile World to close 200 unprofitable stores in Q4

    Mobile World to close 200 unprofitable stores in Q4

    Leading electronics retailer The Gioi Di Dong (Mobile World – MWG) has said it might close 200 stores with moderate sales this quarter.

    Its October income statement reveals plans to close the underperforming stores to optimize costs.

    It said: “These are stores that have low sales and profit. We will be closely monitoring their performances to adjust appropriately.”

    The company currently has over 5,600 stores, 1,158 of them belonging to electronic goods seller The Gioi Di Dong, 2,281 of them to appliances seller Dien May Xanh, 1,700 to supermarket chain Bach Hoa Xanh, and 540 to An Khang Pharmacy stores.

    Mobile World chairman Nguyen Duc Tai mentioned the possibility of reducing the sizes of the The Gioi Di Dong and Dien May Xanh chains at a recent meeting with shareholders,

    With demand expected to remain low until the economy recovers, it cannot afford to keep underperforming stores open, he told them.

    “Many of MWG’s stores cannot even break even, their performance is much poorer than before.”

    However, he claimed revenues would not be affected since they will merely “move from one store to another.”

    Mobile World’s stores are densely distributed with some situated only a few hundred meters away from each other, he said.

    Gross revenues for October were VND11,190 billion (US$446.3 million), the only month this year in which there saw year-on-year growth.

    The Gioi Di Dong and Dien May Xanh contributed over VND7,800 billion, a 5% decline from a year ago.

    But it was 8% higher than September sales thanks to the launch of the iPhone 15.

    In the year to date the two chains’ revenues totaled VND70,200 billion, 21% down year-on-year.

    But Bach Hoa Xanh’s revenues rose 13% to VND25,300 billion.

    Its October, sales jumped 29% from the previous month to VND3,000 billion, or an average of VND1.7 billion per store.

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  • Gasoline, diesel prices drop

    Gasoline prices went down for the second time in a row Thursday, while diesel declined for the third straight time.

    The popular gasoline RON95 fell 2.17% to VND23,020 ($0.95) per liter.

    Diesel went down 2.87% to VND20,280.

    Starting this week, the government will adjust retail fuel prices every Thursday instead of every 10 days as before.

    Global fuel prices dropped slightly in the last ten days due to a decline in demand caused by economic recessions and rising U.S. crude oil inventory.

    RON92 fell 2.9% to $91.09 per barrel, while RON95 dropped 2% to $97.26. Diesel declined 2.4% to $105.15.

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  • Vietnam Airlines joins the AAPA

    Vietnam Airlines joins the AAPA

    Vietnam Airlines is the latest member to join the Association of Asia Pacific Airlines (AAPA), as announced by a press release on 14 November, with immediate effect.

    As part of the AAPA, Vietnam Airlines will participate in the Association’s meetings and joint activities, where members can stay updated and exchange information about the trends in the aviation industry. Airline members also receive in-depth insights, forecasts, and advice from the group’s regular monthly distribution.

    On 9-10 November 2023, the AAPA organised its 67th Assembly of Presidents in Singapore, which gathered airline leaders to discuss relevant issues in air transport and aviation, with a core focus on sustainability. The conclusion of the event, which was hosted by airline member Singapore Airlines, saw the passing of a series of resolutions covering sustainability, aviation safety and regulatory impact.

    Airline leaders have agreed to a ‘collective’ target of 5 percent SAF utilisation by 2030, and the trade association is calling on governments, fuel producers, airports, and other industry organisations to come together globally, to accelerate the transition to renewable energy and push the ambitious goal to carbon neutrality by 2050.

    The AAPA’s membership now stands at 15 airlines, which include Air Astana, Air India, ANA, Bangkok Airways, Cathay Pacific, China Airlines, Eva Air, Garuda Indonesia, Japan Airlines, Malaysia Airlines, Philippine Airlines, Royal Brunei Airlines, Singapore Airlines, Thai Airways and Vietnam Airlines.

  • Limited edition Vespa sells for $29,000 in Vietnam

    Limited edition Vespa sells for $29,000 in Vietnam

    Limited edition 10th-anniversary Vespa 946s are selling at private dealerships for over VND700 million ($28,848) in Vietnam.

    Aside from the 28 units that franchise dealers imported last week, private dealers have procured several more Vespa 946 10° Anniversaries from Italy.

    One Ho Chi Minh City showroom on Hung Vuong Street in District 5 has priced the scooter at over VND700 million, while another dealership in the Mekong Delta province of Soc Trang listed it for VND710 million. The Vespa 946 10° Anniversario sells for just VND425 million at franchise dealerships.

    Vespa manufacturer Piaggio produced the limited-edition model mainly to sell to wealthy collectors, according to one showroom owner.

    “Prices for the Vespa 946 can fluctuate depending on collectors’ interest levels. In terms of popularity, the model is not as sought-after as the 946 Dior.”

    In 2022, the Vespa Christian Dior sold for VND1.6 billion at private dealerships, while franchise dealers priced it at VND700 million.

    According to a manager at franchise dealership Motoplex in HCMC, the Dior version garnered much more attention due its exquisite decor made in collaboration with luxury fashion brand Dior.

    Meanwhile, the Vespa 946 10° Anniversaries was designed solely by Piaggio, so it mostly piques the interest of Vespa fans. Piaggio only produced 1,000 units of the limited-edition model.

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  • Vietnam Airlines postpones annual general meeting for 4th time

    Vietnam Airlines postpones annual general meeting for 4th time

    Vietnam Airlines has canceled its annual general meeting for a fourth time this year pleading “unfinished” preparations even as it continues to struggle with losses.

    The state-owned carrier informed the Ho Chi Minh Stock Exchange Monday that its meeting scheduled for Nov. 22 has been moved to Dec. 16.

    The AGM was first scheduled for June 20 but the company has been postponing it repeatedly.

    Public companies are required to hold their AGM within four to six months from the end of the financial year.

    In the first nine months of this year the company posted a loss of VND3.3 trillion (US$135.34 million) as against VND7.75 trillion in the same period last year.

    Its revenues were up 32% to VND68.09 trillion.

    Vietnam Airlines’ HVN shares have been restricted to trading in the afternoons only as a penalty for its delay in submitting its financial reports. They have plunged 21% this year to VND10,950.

  • Purple star apple prices skyrocket

    Purple star apple prices skyrocket

    Purple star apples, popular both in Vietnam and its export markets, have seen prices rise by 30-40% from a year ago.

    The fruit is in season and sells in markets and stores for VND90,000-100,000 (US$3.58-3.97) per kilogram for type 1 (the highest quality), a 40% increase from a year ago, and VND40,000-50,000 for types 2 and 3.

    Oanh, who runs a fruit store on Pham Van Hai Street in HCMC’s Tan Binh District, said the star apples this year are bigger, of better quality and more eye-catching. “Every day I pick up 50 kilograms and sell them all. During holidays the demand is doubled, but there is not enough supply.”

    According to Hanh, a wholesaler at the Thu Duc Agricultural Product Market, type 1 is in short supply. “Every day I procure more than one ton but it is not enough to supply wholesalers. Purple star apple is very scarce at the beginning of the season.”

    A recent VnExpress survey of fruit farmers in Can Tho City and Soc Trang Province found that the highly sought-after fruit is 50% more expensive than last year at VND28,000-35,000 per kilogram.

    Phong, who owns a half-hectare orchard in Can Tho Province, expects to make profits of VND250 million, double the previous season’s. “This year not only is there a bountiful purple star apple harvest, but the price is also skyrocketing.”

    Similarly, farmers in Soc Trang Province, dubbed the “purple star apple capital” of western Vietnam, are overjoyed that exporters are buying their fruit at VND45,000 per kilogram. One-hectare orchards are making profits of VND500-700 million this year.

    Su Quoc Loc, director of the Loc Mai Agriculture Cooperative, which specializes in the fruit, said export prices of fresh star apples are 13% higher from a year ago and domestic prices, 50%.

    The cooperative’s members own 47 orchards that meet VietGAP quality standards, 60% of them more than one hectare.

    Loc attributed the rising prices to increasing exports to the U.S. and China.

    This year, instead of rushing to harvest, which leads to a spike in supply and fall in price, fruit growers have learned to stagger their harvest.

    As a result, the star apple season, which usually lasts from November to January, could extend all the way to April. This method provides a more stable supply and maintains high prices.

    Star apples are mainly being harvested in the Can Tho City and Tien Giang and Soc Trang provinces, according to data from the Plant Protection Department.

    Tien Giang is notable with over 3,000 ha while Soc Trang Province has 2,300 ha, both with different varieties of star apple, such as purple, Lo Ren and pink butter.

    The purple variety is highly valued due to its exquisite shape and is available year-round.

    Star apple is exclusively a Vietnamese export and imported by China and the U.S., with prices paid by the latter reaching nearly VND500,000 per kilogram at one point.

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  • Honda Vietnam’s automobile, motorbike sales drop in October

    Honda Vietnam’s automobile, motorbike sales drop in October

    Honda Vietnam has revealed that its retail sales of motorcycles and automobiles in October dropped by 7.5% and 15.9% respectively compared to previous month due to market difficulties.

    In the reviewed period, Honda Vietnam sold 180,881 motorbikes, with 18,452 exported and 2,148 automobiles of all kinds.

    In the fiscal year of 2024 (from April 2023 to March 2024), the company has posted sales of 1,171,108 motorbikes, marking a year-on-year decrease of 12.9%.

    It has sold 12,850 automobiles of all kinds in the fiscal year, a decline of 27.3% over the same period in fiscal year 2023.

    The Honda City sedan continued to be its best-seller with 751 units sold, followed by Honda CR-V and Honda BR-V with 477 units and 468 units, respectively.

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  • Imported fruit prices plummet on burgeoning supply

    Imported fruit prices plummet on burgeoning supply

    Imported kiwis, apples, pomegranates, and pears only cost a few tens of thousands of dong (VND24,000=US$1) per kilogram, or a fifth of the prices two years ago.

    Hanh, a seller of imported fruits on Bach Dang Street in HCMC’s Binh Thanh District, said golden kiwi imported from New Zealand is selling at VND200,000 ($8.21) per box of 3.5 kilograms, or VND57,000 per kilogram.

    For those buying more than 10 boxes, the price comes down to VND160,000. “This price is down 15% from a year ago,” she said.

    Imported pomegranate and pear are also becoming cheaper, she said.

    Chinese and Tunisian pomegranates currently sell for VND60,000-70,000 and VND35,000-50,000 per kilogram.

    In 2021, imports from the North African country had cost up to VND250,000.

    First-grade pears imported from South Korea are sold for VND60,000-80,000 per kilogram, and second-grade varieties for VND30,000-40,000, the lowest prices ever.

    The prices of apples imported from New Zealand have also dropped sharply to VND40,000-60,000 per kilogram.

    Envy apples, the most expensive imports along with Japanese apples, cost VND200,000-350,000 two or three years ago, but only VND70,000-110,000 now.

    Thanh, who sells imported fruits at the Thu Duc wholesale market in HCMC, said prices have declined because supply is abundant while demand has not gone up much.

    India and New Zealand have recently sought to export more fruits to Vietnam, and so their prices are attractive, he said.

    Recent deals between Vietnam and China have helped Chinese fruits enter the Vietnamese market easier and at lower prices than before.

    Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said the country’s accession to free trade agreements has brought down import taxes on fruits and vegetables virtually to zero.

    According to statistics from the General Department of Vietnam Customs, the country imported fruits and vegetables worth $1.6 billion in the first 10 months of this year.

    Imports of fruits at low prices from countries such as India, New Zealand and South Korea were up 4-62% year-on-year.

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  • Vietnam’s power prices increase by 4.5%

    Vietnam’s power prices increase by 4.5%

    Starting Thursday, Vietnam’s power prices increased by 4.5% to over VND2,000 (8.2 U.S. cents) per kWh, the second time they went up this year.

    Average power prices have increased from VND1,920.37 to VND2,006.79 per kWh, just six months after prices increased by 3% in May, state-owned Vietnam Electricity (EVN) announced.

    Nguyen Quoc Dung, head of the business department of EVN, said the government would continue to support those in circumstances through cash financially, their values being 30 kWh worth of power use a month.

    Nguyen Dinh Phuoc, EVN’s head accountant, said that power prices for domestic use are still lower than those for industrial use after the increase. He also said EVN proposed the 4.5% increase to ensure social security and socio-economic criteria.

    The price increase will help EVN earn an additional VND3.2 trillion (US$131.39 million) until the end of this year.

    EVN said certain factors impacted its costs this year, including hydropower production dropping by 17 billion kWh, while fuel prices remain high.

    Production costs account for 83% of energy pricing, it said. The firm adds that with current fuel prices, each kWh of energy produced costs around VND2,098.

    Last year, EVN reported over VND26 trillion of losses.

    In a recent report by the Ministry of Planning and Investment, its losses have increased by another VND28 trillion in eight months.

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  • Coconut prices fall on bumper crop

    Coconut prices fall on bumper crop

    It is the coconut harvest in the Mekong Delta, but with exports falling, prices have halved from a year ago to VND1,500-2,900 (US$0.06-0.12) for a nut, causing farmers losses.

    Phan Van Dinh, 68, of Giong Trom District in Ben Tre, Vietnam’s biggest coconut-growing province, has an orchard of 2,000 square meters.

    “At present, we only manage to sell VND1 million worth of coconuts a month, enough only to cover costs, not profit,” he said.

    Traders are buying at VND2,500-2,900 apiece, down from VND5,000-5,800 a year ago, he said.

    Le Van Trong, owner of a 6,000-sq.m orchard in Ben Tre, does not want to sell the 2,500 fruits he has harvested because traders are offering only VND1,500, saying they are too small.

    He is now drying the coconuts to sell them as seedlings for cultivation.

    Huynh Quang Duc, deputy director of the Ben Tre Department of Agriculture and Rural Development, said it is the coconut harvest season with large output, causing prices to fall.

    Ben Tre has over 74,000 hectares of orchards, or 80% of the total coconut growing area in the delta and 50% of Vietnam’s.

    Besides some exports to the U.S., coconuts are mainly exported to China via border trade.

    “We are waiting for exports to China through the official quota with a much bigger volume, so that the life of coconut growers will improve,” Duc added.

  • EV maker VinFast to invest $1.2B in Indonesia

    EV maker VinFast to invest $1.2B in Indonesia

    Vietnam’s first electric vehicle (EV) maker VinFast plans to build a plant with an investment capital of 18.6 trillion Rp (US$1.2 billion) in Indonesia, according to Presidential Chief of Staff of Indonesia Moeldoko.

    Moeldoko told a press on Nov. 6 that the construction will begin as soon as possible. He, however, did not reveal further details of the plan.

    Vinfast is one of the largest EV manufacturers in Southeast Asia, with its cars exported to Europe and America, the official said, adding its investment in Indonesia can help form an EV ecosystem in the country.

    Indonesia’s media reported that in early September, Vinfast leaders had a meeting with Indonesian Trade Minister Zulkifli Hasan who pledged to facilitate the automaker’s operation.

    Secretary General of the Association of Indonesia Automotive Industry (Gaikindo) Kukuh Kumara said in late October that Vinfast has discussed and expressed its willingness to join the association.

    The manufacturer is completing necessary procedures with the Indonesian government before officially entering the country’s auto market, he said.

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  • Shrinking Chinese exports halve dragon fruit prices

    Shrinking Chinese exports halve dragon fruit prices

    Vietnamese red-fleshed dragon fruit is selling for VND10,000-13,000 (US$0.41-0.53) per kilogram, down 50% against same period last year, due to reduced imports from China.

    Hoang, who sells fruits from a cart on Go Vap District’s Thong Nhat Road in Ho Chi Minh City, said this is the first time red-fleshed dragon fruit has been sold at stalls on roads and streets in the city.

    Thuan, another mobile fruit seller on Pham Van Dong Road in Thu Duc City, said: “Many dragon fruit growers in the Mekong Delta province of Tien Giang sell the fruit at such a low price that they barely want to harvest them anymore.”

    In the province’s Cho Gao District, traders are buying red-fleshed dragon fruit from orchards at prices of VND4,000-8,000 per kilogram.

    Huu, who grows 4,000 square meters of red-fleshed dragon fruit in the district, said he does not make a profit at current prices.

    If earnings from the fruit continue to decrease, his family may switch to other crops.

    According to the Long An Dragon Fruit Association, the province has 9,000 hectares of dragon fruit, down from the peak of 12,000 hectares some years ago.

    Fruit exporters said the prices have fallen because China has reduced imports, meanwhile, Vietnamese demand for the fruit is weak since many other tropical fruits with attractive prices are currently in season.

    Last year, Chinese authorities said the nation had grown the fruit on 67,000 hectares, producing 1.6 million tons. The figures exceeded Vietnam’s current output.

    Chinese newspaper The People’s Daily reported that farmers in Cixi, part of the eastern province of Zhejiang, worked all night to artificially pollinate dragon fruit, ensuring a bumper crop.

    Red-fleshed dragon fruit is selling for seven renminbi (nearly $1) per kilogram, while white-fleshed dragon fruit imported from Vietnam goes for around nine renminbi in Nanning, the capital of Guangxi Province.

    Vietnam’s dragon fruit exports in the first eight months declined 4.4% year-on-year to $442 million. Specifically, red-fleshed dragon fruit exports to China dropped by 36.5%.

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  • FedEx speeds up Vietnam-Singapore service with B767F

    FedEx speeds up Vietnam-Singapore service with B767F

    FedEx Express is further enhancing its services between Vietnam and Singapore as well as the wider Asia, Middle East, Africa (AMEA) and Europe market, with the introduction of a new flight offering expedited delivery times.

    The new service will use a dedicated B767 freighter starting October 31 to fly four times a week in the evenings from Ho Chi Minh City to Asia and Europe through the FedEx hub in Guangzhou, China.

    Exporters shipping from Southern Vietnam will benefit from faster transit times for shipments to Singapore and major Asian markets in just one business day, and two business days to Europe.

    These new flights offer additional capacity on top of the current five flights to Asia, Europe, and the US. These include four daily morning services through the FedEx hub in Singapore and the existing evening flight through the Guangzhou hub.

    FedEx has been supporting cross-border trade to and from Vietnam since it established operations in the country in 1994.

  • More global digital platforms pay taxes in Vietnam

    More global digital platforms pay taxes in Vietnam

    Seven four cross-border digital platforms, including Meta, Google, Netflix, and TikTok, have paid taxes of VND8.02 trillion (US$334.1 million) this year, more than double the amount last year.

    The General Department of Taxation said as of June some 57 had paid taxes, and urged others who had yet to declare and pay taxes to do so.

    Since March 2022, when the department’s electronic information portal for foreign service providers to pay taxes online easily was set up, a total of VND11.5 trillion has been paid.

    Also, 375 e-commerce platforms have provided tax authorities with information about organizations and individuals that did business through them.

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  • Vietnam pho, milk tea franchised for first time in Philippines

    Vietnam pho, milk tea franchised for first time in Philippines

    The famous noodles dish pho has been franchised for the first time in the Philippines along with milk tea and spa services by three Vietnam’s companies.

    Pho’S, Phuc Tea and Care With Love have signed franchise contracts with Philippine businesses through the ecosystem of Go Global Holdings, a company that helps small and medium-sized businesses become franchisers, its CEO, Nguyen Tuan Quynh, said Thursday.

    Many foreign brands have been rushing into Vietnam to franchise their products and services in recent years, but there have been few such efforts in the reverse direction, and even fewer have succeeded, he said.

    “These franchise contracts are therefore positive signs for Vietnamese firms.”

    Tran Thao Vi, founder of spa service provider Care With Love, told VnExpress that a franchise deal has been signed with a Philippine partner specializing in medical services.

    “In two months we will launch our first franchise in the Philippines and open another three in the first quarter next year, and eventually have dozens of spas in the country.”

    Care With Love has been operating for 11 years with 13 branches. It plans to increase the number to 20 by the end of this year, 80% of them franchises.

    Tran Nhat Vu, co-founder of beverage chain Phuc Tea, which has 140 stores in Vietnam after six years since opening, said the franchise partner would open around 20 stores in the Philippine capital Manila next year.

    The franchise fee for each Pho’S and Phuc Tea store is US$7,000-10,000.

    The three companies said the Philippines partners were interested because their business models are “unique” with their focus on middle-class customers.

    Pho’S is the first major company to use ginseng in its recipe, while Phuc Tea has been making new beverages from unusual ingredients.

    The three companies are also in talks for franchising in Indonesia and Malaysia.

    Vietnamese companies to launch franchises overseas so far are footwear and leather company T&T, Pho 24 and Vu Giang Jsc under the brand Bobby Brewers coffee chain.

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