Tag: Vietnam

  • Samsung wants to make its Vietnam R&D center global hub

    Samsung wants to make its Vietnam R&D center global hub

    It is his mission to turn the Samsung R&D Centerin Hanoi into the Korean company’s top global research and development center, its Vietnam chief, Choi Joo Ho, has said.

    “The first mission is to expand its research activities and enhance expertise,” the head of Samsung Vietnam Complex said at a conference on Sunday.

    The conglomerate opened the US$220-million research center in Hanoi last December.

    It would take Vietnam from being a global production hub for Samsung to a strategic base for major research and development, the company had said at the opening ceremony.

    Choi said the second mission is to help develop technology talent and industry in Vietnam.

    For this, Samsung plans to step up training through scholarships and internships for promising tech students and cooperation with universities, he said.

    “We wish to strengthen our partnership with Vietnamese businesses to help them develop and become part of Samsung’s global value chain.”

    By the end of last year the number of Vietnamese tier 1 and tier 2 suppliers in Samsung’s global supply chain had increased to 257, 10 times the number in 2014.

    Since 2015 experts from Samsung Korea have worked with some 400 Vietnamese companies to improve their product quality.

    Samsung established its first smartphone factory in Vietnam in 2008 and has invested $18.2 billion so far. The figure could rise to $20 billion by the end of this year.

    The company makes around half of all its smartphones in the country.

  • Airlines report losses in 2022

    Airlines report losses in 2022

    Vietnam Airlines and Vietjet incurred losses of VND10 trillion (US$423.7 million) and VND2.17 trillion last year mainly due to higher fuel prices and forex volatility.

    Vietnam Airlines reported consolidated revenues of VND71 trillion, higher than the combined revenues of 2020 and 2021 but only 70% of pre-pandemic levels.

    Last year, its losses of VND10 trillion took its accumulated losses to VND34 trillion.

    Vietjet reported revenues of VND39.34 trillion, more than triple the 2021 figure.

    The average price of jet fuel jumped to $130 per barrel last year from $72 the previous year. At one time in mid-2022 it was selling at over $160.

    The increase in bank interest rates and the soaring dollar also contributed to losses.

    Vietnam Airlines lost over VND2.25 trillion due to exchange rate differences last year as against only VND173 billion the previous year.

    Vietjet incurred exchange rate losses of roughly VND570 billion in the fourth quarter of last year compared with less than VND4 billion in the same period of 2021.

    Two other carriers, Bamboo Airways and Vietravel Airlines, have not released their financial reports for 2022, but experts said they are unlikely to have made profits.

    Vietnamese carriers transported 11 million foreign passengers in 2022, up 22 times from 2021 but down 70% from 2019, the year before the Covid pandemic began.

    They also carried 55 million domestic passengers, up 3.7 times from 2021.

    Many aviation-related service providers reported big profits, however.

    Southern Airports Services JSC (Sasco) reported pre-tax profits of VND230 billion, up 77 times from 2021.

    The profits of Saigon Ground Services (SGN) and Saigon Cargo Service Corporation (SCS) reached VND1 trillion and VND696 billion, respectively.

    The Airports Corporation of Vietnam posted pre-tax profits of over VND8.8 trillion as against less than VND1 trillion the previous year.

  • Auto dealers offer up to $4,000 in discounts to boost sales

    Auto dealers offer up to $4,000 in discounts to boost sales

    Auto dealers are offering discounts of up to VND100 million ($4,243) to boost sales after the Lunar New Year shopping season is over.

    As many Vietnamese bought their new cars before the annual Tet holidays, which fell from January 20-26, dealerships are seeing a decline in customers showing up or making inquiries online.

    Toyota

    Toyota dealerships are offering a VND20-VND30 million discount on the Vios, its best-selling model in Vietnam last year.

    The MPV Veloz Cross is on sale with a discount of VND35-VND45 million plus gifts.

    The SUV Fortuner, which accounted for 8% of Toyota sales in Vietnam last year, is being sold at some dealerships at a discount of over VND100 million.

    Honda

    Since earlier February Honda has been offering free registration for its two main models: the City and the SUV CR-V.

    Honda City is discounted by VND50-60 million, while the cost of bringing the CR-V home is now VND100 million lower than before Tet.

    Mitsubishi

    The Japanese automaker is offering a 50% discount on registration fees for its Attar, Triton and Outlander models.

    Rearview cameras are also being given as gifts.

    Buyers of the MPV Xpander, Mitsubishi’s best-selling model in Vietnam, will also receive VND10-VND20 million in fuel coupons.

    Hyundai

    The South Korean manufacturer is selling its i10 at a discount of VND15-VND35 million and the sedan Accent for VND20-VND55 million less.

    Discounts of VND25-VND60 million are being offered on the Elantra sedan and the crossover Creta.

    The company is also offering a VND70 million discount on the MPV Stargazer and up to VND120 million on the SUV Santa Fe.

    Kia

    The biggest discount in Kia’s lineup falls on the SUV Sorento at VND70 million.

    The crossover Sportage, which is assembled in Vietnam, is being discounted by VND50 million, and three SUV models, the Sonet, Seltos and Carens, are now priced at a VND40 million discount.

    The cheapest Kia car Morning has a discount of VND30 million.

    Suzuki

    A 50% reduction in the registration fee, which equates to around VND30 million, is being offered on the SUV XL7 and the MPV Ertiga.

    Nissan

    Nissan is giving a full discount on the registration fee on the Navara VL 4WD and the Pro 4X manufactured in 2022. The standard version is discounted by 50% on the fee.

    The sedan Almera also has a free registration fee.

    Volkswagen

    The German automaker is giving customers a cashback of VND35 million on its Polo Hatchback and VND100 million on the SUV Tiguan manufactured in 2022.

  • Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Rookie carrier Vietravel Airlines wants to gradually increase its charter capital nearly sixfold to VND7.64 trillion ($323.66 million) by 2025.

    The airline recently made this proposal to the government after two years of operating with a charter capital of VND1.3 trillion. It owns three narrow-body Airbus A321 jets.

    Viettravel made this proposal to boost development and enlarge its fleet, Chairman Nguyen Quoc Ky said.

    “Investing in fleet expansion is important for a new airline to survive and grow,” said Ky. “Only with a large fleet can we make profits.”

    For the last two years Vietravel Airlines has not been profitable but it expects that with a larger fleet it can take advantage of an expected surge in demand after Covid-19.

    The capital increase will come from a combination of shareholder investment, selling stakes to other investors, and financial tools.

    Shareholders of Vietravel Airlines plan to invest an additional VND700 billion by 2025, bringing their total investment to VND2 trillion.

    The airline also plans to increase its charter capital to VND8.25 trillion by 2030.

    Viettravel projects that by 2030, if business is favorable, it could record a VND2.2 trillion in accumulated profit which it could use it to pump up its capital.

  • Vietnam rice exports plummet on lower global demand

    Vietnam rice exports plummet on lower global demand

    Rice exports fell 17.4% year-on-year in January to US$203 million as global demand shrank.

    In volume terms, they declined by 20.9% to 400,000 tons, according to the Ministry of Agriculture and Rural Development.

    Global demand was lower since inventories remained high in many countries, it said.

    The U.S. Department of Agriculture said in its January report that the global rice trade is set to fall by 4% this year to 54.4 million tons, the first drop since 2019.

    The Thai Rice Exporters Association has lowered the export target for this year from 8 million tons to 7.5 million tons, fearing global crises would affect trade.

    Vietnam expects exports to recover by the end of March as the Thai baht continues to gain against the U.S. dollar, making that country’s rice less competitive.

  • Vietnam raises electricity price range

    Vietnam raises electricity price range

    Vietnam has raised its electricity price range by double-digits for the first time since 2017, paving the way for a hike in retail prices.

    The minimum electricity price was increased 13.7% to VND1,826.22 (7.8 U.S. cents) per kilowatt-hour beginning February 3, according to a decision signed by Deputy Prime Minister Le Minh Khai.

    The maximum price was raised 28.2% to VND2,444.09 per kilowatt-hour.

    An increase in the electricity price range does not necessarily equate to a retail price hikevi. However, the new range, along with an updated cost of electricity production in 2022, will be key inputs for the Ministry of Industry and Trade to determine Vietnam’s retail prices for this year.

    Vietnam’s electricity retail price had remained unchanged since 2019 at VND1,864.44 per kilowatt-hour.

    Vietnam Electricity posted a loss of VND31 trillion last year, which it blamed on rising input and production costs. It recently proposed an increase in retail prices.

    The industry ministry has said that it was reviewing the proposal and will announce a “reasonable plan” to raise prices.

    Prime Minister Pham Minh Chinh said last week that the electricity price hike should be kept reasonable and in line with real Vietnamese incomes.

    Vietnam’s electricity price is 50% lower than that of the Philippines, where electricity is more expensive than anywhere else in Southeast Asia. Vietnamese prices are also lower than those in Indonesia and Thailand, according to energy data platform GlobalPetroPrices.

    On the other hand, electricity costs more in Vietnam than it does in Laos, Russia, Bangladesh, India and Turkey.

  • Dragon fruit prices triple

    Dragon fruit prices triple

    Dragon fruit prices have tripled year-on-year in southern farms after China resumed border trading.

    Farmers in Tien Giang Province are selling red-fleshed dragon fruit at VND38,000 ($1.62) per kilogram and white-fleshed for VND32,000, up 10% from before the Lunar New Year holiday and triple from the same time last year.

    Nguyen Thi Hanh, a farmer said that she sold five tons at VND32,000 per kilogram and earned a profit of VND110 million.

    In Binh Thuan Province, prices of white-fleshed dragon fruit have also tripled to VND25,000.

    Industry insiders say that the resumption of border trade with China after three years of restrictions has helped boost prices. China accounts for around 90% of Vietnam’s dragon fruit exports.

    Binh Thuan’s Department of Agriculture and Rural Development said that as trucks can pass the border easily without having to wait for days as they did during the pandemic, dragon fruit is being sent to China quickly, and farmers are set to report large profits as the main harvest season approaches.

    “We are working to connect farmers with possible export locations in China to help them sell their fruit with ease,” said Mai Kieu, director of the department.

    Since January Chinese customs no longer requires goods to be tested for Covid-19 at border gates with Vietnam and it has also lifted all other pandemic safety measures.

    Vietnam’s exports to China rose 8% to $119.3 billion in 2022 compared to a year earlier, while imports climbed 4.5% to $58.4 billion.

  • Gold prices increase

    Gold prices increase

    SJC gold price rose 0.15% to VND67.3 million ($2,859.27) per tael Tuesday morning.

    Gold ring price went up 0.18% to VND54.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.

    Globally gold prices gained on Tuesday as the dollar pulled back slightly, with traders awaiting U.S. Federal Reserve Chair Jerome Powell’s speech later in the day for hints about future rate hikes after last week’s strong economic data.

    Spot gold was 0.4% higher at $1,873.96 per ounce, as of 0316 GMT, after hitting its lowest since Jan. 6 in the previous session.

    “Despite another round of upmove in the dollar and yields, the downside in gold prices is more limited, which points to some attempts to stabilise after recent sell-off,” said Yeap Jun Rong, a market analyst at IG.

    The dollar index was down 0.2% after touching its highest level in nearly a month on Monday. A weaker greenback makes dollar-priced gold more attractive for buyers holding other currencies.

  • Gold prices inch down

    Gold prices inch down

    SJC gold price dropped 0.15% to VND67.3 million ($2,865.05) per tael Monday morning. Gold ring price went up 0.46% to VND54.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.

    Reuters reported that global gold prices hit a more than four-week low on Monday, as the U.S. dollar firmed after stronger-than-expected jobs data fanned concerns that the Federal Reserve might keep hiking interest rates.

    Spot gold was little changed at $1,865.88 per ounce, as of 0045 GMT, after hitting its lowest level since January 6 earlier in the session.

    The dollar index was 0.2% higher, making gold less attractive for buyers holding other currencies.

    Data on Friday showed U.S. job growth accelerated sharply last month, with nonfarm payrolls surging by 517,000 jobs – well above an estimated 185,000. The unemployment rate hit more than a 53-1/2-year low of 3.4%.

  • Airports serve more than 9.8 million passengers in January

    Airports serve more than 9.8 million passengers in January

    Airports across Vietnam handled more than 9.8 million passengers in January, an increase of 13.8% compared to the previous month, according to the Civil Aviation Authority of Vietnam (CAAV).

    Of the total, the number of international passengers reached 2.3 million, a 10% rise month on month, while the number of domestic passengers was 7.5 million, an increase of 15% month on month.

    Domestic airlines carried 4.85 million passengers, up 13.4% including 1.1 million international passengers and 3.75 million domestic ones.

    About 112,000 tonnes of cargo were handled at the airports in the first month of 2023, up 11.6% compared to December 2022.

    During the 7-day Lunar New Year (Tet) holiday, airports across the country served more than 1.9 million passengers, an increase of 58%, and more than 7,600 tonnes of cargo, down 11.6% compared to the same period of the Lunar New Year in 2022.

    Particularly, Vietnamese airlines transported more than 967,000 passengers and 1,550 tonnes of cargo, an increase of 60.7% and 28.4% respectively compared to the same period last year.

    Tan Son Nhat International Airport in Ho Chi Minh City saw 20,975 flights, an increase of about 26.5% over the same period in 2022, and 3,147,014 passengers, up 61%.

    Noi Bai International Airport from January 19 to 29 (or the 28th day of the 12th lunar month to the 8th day of the first lunar month) saw 5,618 flights, an increase of 49% compared to the same period of last year. Nearly 900,000 passengers traversed the airport during the festive time, up 71%.

    According to the CAAV, although the number of passengers increased during the Tet holiday, there were no congestions at airports, especially Noi Bai and Tan Son Nhat airports.

    “Airports proactively prepared for the festive time and worked closely with airlines and ground service units to provide maximum support for passengers, especially large groups and last-minute guests,” said the agency.

  • Gold prices fall

    Gold prices fall

    SJC gold price dropped 0.44% to VND67.5 million ($2,878.46) per tael Friday afternoon.

    Gold ring price fell 0.54% to VND55.2 million per tael. A tael equals 37.5 grams or 1.2 ounces.

    Global gold prices steadied on Friday after a sharp sell-off in the previous session, as traders digested rate-hike remarks from global central banks, but the metal was set for its first weekly drop in seven amid a strong dollar.

    Spot gold was up 0.1% at $1,914.33 per ounce.

    “With gold prices delivering a stellar performance of more than 20% over the past three months, some positioning for softer rate-hike bets could already have been at play and having found the much-needed validation from the recent FOMC meeting,” said Yeap Jun Rong, a market analyst at IG.

    Therefore, it may trigger some near-term profit-taking, “but for gold prices, a greater conviction for sellers could be a break below the $1,895 level, where dip-buyers were seen stepping in this week just before the meeting,” the analyst added.

  • Vietnamese tech workers high and dry amid layoffs in Silicon Valley

    Vietnamese tech workers high and dry amid layoffs in Silicon Valley

    Hoang Tu said his “American Dream” lasted only six months. He was let go from Google two days before the Lunar New Year.

    “This is the worst Tet (Lunar New Year) of my life,” he said.

    The 27-year-old joined Google’s new project development team in Silicon Valley last year after passing a series of rigorous interviews.

    This Tet, which began on January 22 this year, he took time off work to visit his family in Vietnam.

    On January 20, however, he received a shocking email dismissal letter.

    “Before I was fired, I didn’t hear a word from the management team. I didn’t have time to ask my coworkers what was going on because I was too busy with other things during Tet. I didn’t know what to tell my loved ones about this news,” he lamented.

    Since his H-1B visa, a work visa with a cumulative maximum duration of six years, is set to expire in 60 days, he cut short his vacation and came back to the U.S. to complete the paperwork and get ready to start looking for a new job.

    Similar frustrations were felt by former Meta employee Hong Anh, who was in the U.S. with only a few weeks left on her visa when she was let go by the company.

    She said the Vietnamese engineering community in Silicon Valley isn’t as worried about money as it is about finding work in order to keep visas valid.

    “Getting an H-1B visa is really hard now, especially for recent graduates,” she said, adding that she had recently applied for positions at more than twenty companies but hadn’t heard back from any of them.

    Tech workers from Vietnam face tough competition from their counterparts in China, India, and even within the U.S.’s own IT community.

    Anh, an IT professional with three years of experience, said she would accept lower pay at smaller companies in exchange for a sponsorship that would allow her to remain in the country.

    There are no official numbers yet on how many Vietnamese tech workers were laid off during Silicon Valley’s record downsizing, but experts estimate the figure to be in the thousands.

    Meta software engineer Tai Nguyen revealed that even those such as himself who haven’t been laid off are anxious and making plans for the worst.

    He said that in his more than 15 years living in the U.S., this is the worst job cut he has ever seen.

    Those who are already working in the U.S. on an H-1B visa and whose spouses are able to lawfully remain in the country with the help of the sponsorship program are under even more stress, he added.

    “If the sacked H-1B worker doesn’t find a new job within 60 days, the whole family will have to leave the U.S.,” he said.

    The great downsize

    Mass layoffs have hit the tech industry in Silicon Valley recently.

    Both small businesses and multinational conglomerates like Microsoft, Google, MetaAmazon, etc., have announced job cuts.

    Around 150,000 tech workers in the U.S. may have lost their employment in January. Many engineers and skilled workers who entered the U.S. on H-1B visas are anxious they could lose both their jobs and their visas at the same time.

    From October 2020 through September 2021, United States Citizenship and Immigration Services (USCIS) reported that around 407,000 H-1B applications had been approved. Citizens of Asia submitted the vast majority of applications.

    Some 74.1% were of Indian descent, 12.4% were of Chinese descent, and the rest were citizens of other countries.

    Vietnamese tech workers who have been laid off now have three choices.

    Firstly, they need to start by rapidly securing new employment before their H-1B visas expire. In an effort to streamline the application process, they frequently target small and medium-sized companies. If they are not married to anyone, they can “prolong the American dream” by changing their visa status to that of a tourist and continuing to look for work in the U.S. under the B-2 category.

    Then there’s a second option for recent graduates like Hoang Tu.

    While waiting for an opportunity to present itself, he intends to return to school in order to renew his visa and further his education. He will be able to keep studying for over a year thanks to his savings and the severance pay he will receive from the company after being let go. However, he’ll have to apply and get into school first, which is no easy task, and also takes time.

    The third option is going back to Vietnam to look for jobs at home or elsewhere in Southeast Asia, like Singapore.

    If her visa deadline passes and Hong Anh still hasn’t landed the job she wants, she plans to return to Vietnam to take a break before looking for work again.

  • Vietcombank names new general director

    Vietcombank names new general director

    Vietcombank, Vietnam’s largest state-owned lender, named its current deputy general director Nguyen Thanh Tung as its new general director on Monday.

    Tung, 49, was the same day elected a member of Vietcombank’s board of management for the 2018-2023 term.

    He holds bachelor’s degrees in economics of international trade and English education, as well as a master’s degree in economics of Paris Dauphine University.

    His career at Vietcombank began 26 years ago in 1997. He became the office head of Vietcombank in 2008, then the deputy director of the bank’s operation center in 2013.

    He became the deputy general director of the sales division in April 2019, before becoming deputy general director of the board of management in August 2021.

  • Saigon Beer brewer sees revenue surge by a third

    Saigon Beer brewer sees revenue surge by a third

    Saigon Beer brewer Sabeco saw revenue jump 33% from 2021 to VND35.24 trillion ($1.5 billion) last year as consumption bounced back after two years of Covid-19.

    The brewer’s post-tax profit surged nearly 40% to VND5.5 trillion, the highest level since it was sold to ThaiBev in 2017.

    “The company has improved its production efficiency and implemented cost-saving measures to minimize the impact of higher input costs,” Sabeco said in a statement. “Many promotion and marketing campaigns also helped boost sales.”

    Before the pandemic, the company spent VND3 trillion on promotion and marketing last year, double that of 2019.

    Sabeco’s revenue last year was 8% shy of the 2019 level. However, its revenue quadrupled that of its major competitior in Vietnam, Habeco, which recorded a revenue of VND8.5 trillion.

    Thapana Sirivadhanabhakdi, CEO of ThaiBev, said last year that Sabeco was its “crown jewel” and rejected rumors that the Thai company would sell the brewer.

    Valued at $26 billion, Vietnam is the biggest beer market in Southeast Asia, and No. 3 in Asia behind China and Japan, according to 2021 figures.

  • Vietnam posts trade surplus of $3.6B in January

    Vietnam posts trade surplus of $3.6B in January

    Despite decreases in both imports and exports, the country still enjoyed a trade surplus of $3.6 billion in the first month of 2023, according to the General Statistics Office (GSO).

    The office reported that in the month, total import-export turnover reached $46.56 billion, with exports dropping 21.3% to $25.08 billion, and imports falling 28.9% to $21.48 billion.

    While the domestic sector saw a trade deficit of $1.04 billion, the foreign-invested sector (including crude oil) posted a surplus of $4.64 billion.

    Experts attributed the result to the long New Year and Lunar New Year (Tet) holidays, which were all in January, reducing the number of working days. Last year, the Tet holiday fell in February.

    The GSO reported that the manufacturing-processing sector earned the highest export revenue with 22.32 billion USD, accounting for 89% of the country’s total.

    Meanwhile, there were three goods groups with imports of over $1 billion.

    In January, the U.S. remained the biggest importer of Vietnamese goods with a revenue of about $7.6 billion, while China was the biggest exporter to Vietnam with $8.1 billion.

    The GSO held that many countries are facing the threat of inflation and economic recession, leading to reduction in global consumption, thus affecting Vietnam’s import-export activities.

    Export activities showed signs of slowing down from the fourth quarter of 2022 with fewer orders, it said, adding that 2023 is likely to be a tough year for Vietnam’s import-export.

    In 2023, the MoIT sets a target of a 6% rise in goods export revenue, with trade surplus maintained.