Tag: Vietnam

  • Highlands Coffee posts first loss in 8 years

    Highlands Coffee posts first loss in 8 years

    Highlands Coffee chain lost VND19 billion ($812,069) last year, its first loss since 2014, VnExpress has learned.

    Its sales plunged by nearly 20 percent to VND1.7 trillion, which still made it the largest coffee chain in Vietnam, its earnings report, recently acquired by VnExpress, shows.

    It is not listed on the stock market, and typically such companies do not make public their financial reports.

    Highlands faced many issues with landlords who accused it of delaying rent payments of over VND1 billion for up to six months.

    It had admitted at the time, when social distancing restrictions were still in place, that it was facing financial difficulties.

    Highlands Coffee was established in 1999 to sell packaged coffee. It started opening cafes in 2002, and now has 522 of them, according to its website.

    It was acquired by the Philippines’ Jollibee Foods in 2012.

  • Vietnam considers $58.7 billion high-speed railway

    Vietnam considers $58.7 billion high-speed railway

    Vietnam is considering building a high-speed railway that runs along the country’s length with a possible price tag of up to $58.7 billion, the government said on Sunday.

    The Southeast Asian country’s transport ministry will next month submit a proposal to build the 1,545 km (960 miles) railway to the Politburo, the powerful decision-making body of the ruling Communist Party of Vietnam, the government said in a news release.

    Vietnam, a regional manufacturing hub, is ramping up its investment in transport infrastructure to support its fast-growing economy.

    The first two sections with combined length of 665 km (413 miles) and total investment of $24.72 billion would be open to traffic by 2032, the government said, adding that the entire project would be completed by 2045-2050.

  • Bamboo Airways appoints new chairman to drive international expansion

    Bamboo Airways appoints new chairman to drive international expansion

    Bamboo Airways on Saturday appointed Nguyen Ngoc Trong who has worked for the airline since the early days of establishment as its new chairman.

    Trong, 65, took the new position after his predecessor Dang Tat Thang resigned as chairman and general director.

    Trong served as the first deputy general director of Bamboo Airways from 2018.

    In April this year, he was appointed vice chairman after a series of senior leaders were arrested for allegedly manipulating the stock market.

    He has more than 40 years of working experience in the aviation industry and has held many senior management positions at major firms like Vietnam Airlines, Vietnam Airlines Engineering Company, Vietnam Air Petrol Company Limited and Noi Bai Airport Services JSC.

    Bamboo Airways currently operates nearly 170 flights a day on 40 domestic and 12 international routes.

    The carrier plans to continue launching new international services to tourism markets in Asia, Europe and Australia.

    It also plans to increase its fleet to 35 by the end of this year and triple its fleet size to 100 aircraft by 2028.

  • Jollibee Foods struggles to make profits in Vietnam with 4 brands

    Jollibee Foods struggles to make profits in Vietnam with 4 brands

    All four brands that Jollibee Foods Corp of the Philippines operates in Vietnam, including coffee chain Highlands Coffee, posted losses last year.

    The corporation, founded by Filipino billionaire Tony Tan Caktiong, established its first company in the country, Jollibee Vietnam, in 2005, as a fast food operator.

    Since then it has branched into other food and beverage brands: Pho 24, Highlands Coffee and Coffee Bean & Tea Leaf Vietnam. But Highlands Coffee is its only profitable brand (except for last year), while all three other chains have been making losses for years

    Jolibee Vietnam planned to have 300 outlets in the country by 2020, but it only has 150 as of now, lower than its competitors KFC and Lotteria.

    It posted a loss of VND43.9 billion (1.83 million) last year.

    Pho 24, which sells the traditional Vietnamese rice noodles soup, is also struggling to make profits nearly 20 years after it was established.

    At one point, it had targeted 1,000 outlets, but only has 22 now, mostly in Ho Chi Minh City. It also has outlets in South Korea, Indonesia and the Philippines.

    It posted a loss of VND89.4 billion last year.

    The Coffee Bean & Tea Leaf is in an even worse situation with just six outlets in HCMC after 14 years in Vietnam. Its prices are 1.5-2 times higher than that of Highlands Coffee and its outlets are mostly located in large malls.

    It has been reporting an annual loss of VND26-29 billion in the last four years.

    Highlands Coffee, meanwhile, has reported profits for seven of the last eight years.

    The chain topped the VND1 trillion revenue mark in 2017 and doubled it in two years to cross VND2 trillion.

    Except for last year when it posted a VND19 billion loss due to Covid-19, Highlands Coffee had posted annual profits of VND55-100 billion in the previous four years.

    The chain now has 525 outlets in Vietnam and the Philippines.

  • Apple appoints first ever Vietnam country manager

    Apple appoints first ever Vietnam country manager

    Nguyen Thai Hai Van has been appointed the first Country Director of Apple Vietnam, a source has confirmed.

    While no official announcement has been made, Van’s LinkedIn profile says without disclosing details that she has been holding the post since May, 2022; and some of Apple’s authorized retailers told VnExpress that they have been working with Van in the new role.

    Van recently resigned as managing director of Grab Vietnam. Earlier, she was marketing vice president at Unilever Vietnam.

    Insiders consider the appointment a move to expand the U.S. tech giant’s operations in Vietnam. Previously, its operations in the country were overseen by a regional director.

    Apple CEO Tim Cook has said that Vietnam was one of four emerging markets contributed to the company’s success in the second quarter of 2022.

    “We set June quarter records in the Americas in Europe and in the rest of Asia Pacific region. We also saw June quarter revenue records in both developed and emerging markets with very strong double-digit growth in Brazil, Indonesia and Vietnam and a near doubling of revenue in India,” Cook said during the company’s earnings call late July.

    There is no official Apple Store in Vietnam yet, and its products are distributed in the country via a network of authorized retailers.

    Apple is also recruiting for various positions for its Vietnam operations.

  • Gasoline prices hit six-month low

    Gasoline prices hit six-month low

    Vietnam gasoline prices on Thursday dropped 3.6-3.8% to the lowest since Feb. 11 as global rates kept falling.

    A liter of popular RON 95 gasoline now costs VND24,660 ($1.05), down VND940, while that of biofuel E5 RON 95 costs VND23,720, down VND900.

    Thursday’s was the fifth consecutive downward adjustment made to gasoline prices. Compared to this year’s peak on June 21, prices have fallen by 24.22-24.98%.

    Prices of diesel and kerosine also dropped 4.4-5.2%.

    On the global market, gasoline prices have decreased marginally in the last 10 days, according to data from the Ministry of Industry and Trade and the Ministry of Finance.

    On the global market WTI crude futures slipped toward $91 per barrel Thursday as concerns over supply disruptions eased and markets looked for evidence of improving fuel demand.

  • Emart plans 20 more hypermarkets in Vietnam

    Emart plans 20 more hypermarkets in Vietnam

    Emart Vietnam is planning to open two more supermarkets in Ho Chi Minh City – one in Sala Thu Thiem and another in Go Vap District – part of a plan to launch 20 hypermarkets by 2026.

    Emart Vietnam was acquired by Thiso International Commerce and Services Corporation (Thiso), a subsidiary of Thaco Group, last year after the South Korean-born chain experienced difficulties with its expansion ambitions in Vietnam.

    The plans were revealed at an Emart Partners Day earlier this month. Chun Byung Ki, general director of Thiso Retail, reports that by 2026, the chain wants to have 20 locations nationwide and generate US$1 billion in sales, becoming the hypermarket chain with the largest market share in the country.

    The Emart Sala Thu Thiem, which will occupy more than 6000 sqm, will be located in Thu Duc city’s Thiso Mall, while Thiso Retail Hypermarket, Trading and Service Center will house the new Emart Go Vap, which the company describes as the largest supermarket in HCM City.

    Chun said Thaco’s real estate fund and multi-industry ecosystem will enable Emart to expand into other provinces, including Hanoi. An automated pick-up system will debut in Vietnam for the first time, allowing customers to pick up orders efficiently, and a one-hour delivery promise will be guaranteed to customers within a 5km radius.

    Emart is one of the largest retailers in South Korea with locations across the globe. It was founded in 1993 by Shinsegae as the first low-cost retailer in the country. The company opened its first store in 2015 at Phan Van Tri in Go Vap District.

  • Gold producer SJC eyes 7% rise in profits

    Gold producer SJC eyes 7% rise in profits

    State-owned Saigon Jewelry Company targets pre-tax profits of VND60 billion ($2.6 million) on revenues of VND18.8 trillion this year, up 7% and 6% from last year.

    Its targeted net profit margin is only 0.25%, much lower than the 5.11% for competitor Phu Nhuan Jewelry.

    This year the government tasked SJC with privatizing and expanding into neighboring countries, but in July director Le Thuy Hang said the only focus currently is on achieving the sales and profit targets to be able to pay salaries.

    Since 2012 SJC has been the sole gold bullion producer in Vietnam and its gold production is being closely monitored, Hang added.

    Last year its profits fell 25% to VND17.7 trillion, the lowest since 2015, as the Covid-19 pandemic hindered forced it to close several stores.

  • Vietnam needs $8 bln-$14 bln power investment a year through 2030

    Vietnam needs $8 bln-$14 bln power investment a year through 2030

    Vietnam will need investment of between $8 billion and $14 billion a year through to 2030 to develop new power plants and expand its grid, its deputy industry minister said on Wednesday.

    Of the amount, 75% would be spent on new power plants, with priority given to renewable sources, and 25% on grid expansion, Deputy Minister of Industry and Trade Dang Hoang An said in a statement.

    He said the country will seek to raise funds from private investors for the new power projects, without elaborating.

    Vietnam, a regional manufacturing hub, needs to increase its installed power generation capacity by around 10% a year to support its fast-growing economy and population.

    An said Vietnam, which pledged last year to become carbon-neutral by 2050, will raise its offshore wind capacity to 7 gigawatts (GW) by 2030 and to 65 GW by 2045, while cutting the proportion of coal in its energy mix.

    “Vietnam will not add new coal-fired power plants to its master power development plan, and will only continue coal projects that are under construction until 2030,” An said.

    The ministry last month asked the government to remove future coal projects with a combined capacity of 14.12 GW from the master power development plan that is being drafted.

    Under the latest draft of the master power development plan, Vietnam’s total installed power generation capacity would be raised to 121 GW by 2030 and to 284 GW by 2045, from 76.6 GW at the end of last year, according to state media.

  • HCMC lottery firm reports record H1 profits

    HCMC lottery firm reports record H1 profits

    The HCMC Lottery Company Ltd. earned profits of VND736 billion (over $31.46 million) in the first half of the year, an increase of 27% year-on-year.

    The company recorded H1 revenues of VND5.46 trillion, completing nearly 54% of the year’s target, the company said in its financial statement.

    The main source of income was the sale of traditional lottery tickets and scratch-off tickets; and the rest from office leasing and printing.

    The company leaders said that from the beginning of the year until mid-July, the company had paid out more than VND2.8 trillion to lottery winners

    After deducting all expenses, the company made a profit of VND736 billion. This was a record high in the company’s history.

    The company’s revenue and profits have been increasing steadily over the last 10 years.

    Current sales are twice as high as they were in the first half of the year 10 years ago, and profits have increased three-fold.

    The company’s management said demand for lottery tickets in the southern region has grown continuously, and the Ministry of Finance has increased the ticket volume by 10% to cover a larger area and expand its agent network.

    The scratch-off lottery, which has been in operation since the end of 2018, has also been successful, covering nine provinces and accounting for 4-5% of annual revenue.

    The company’s total assets exceed VND2.6 trillion, while its liabilities exceed VND900 billion. Cash and bank deposits account for a sizable portion of the asset structure.

    This year, the company expects revenues of VND10.15 trillion and pre-tax profits of VND1.17 trillion. Its payment to the state budget is estimated at around VND3.04 trillion.

  • Rice exports jump 20 pct

    Rice exports jump 20 pct

    Vietnam exported 4.2 million tons of rice in the first seven months, 20 percent up year-on-year, according to the Ministry of Agriculture and Rural Development.

    But earnings were only 9 percent higher at US$2 billion since global rice prices have fallen by over 10 percent to $489 a ton.

    Exports to the U.S. grew fastest at 65.3 percent, followed by the Philippines, Vietnam’s top market, at 48.6 percent.

    Domestic prices also fell as adverse weather affected rice quality and demand was low compared to previous months.

    Exporters have slowed down purchases from farmers and await the peak harvest season.

  • Vietnam imposes anti dumping duty on Thai-origin sugar

    Vietnam imposes anti dumping duty on Thai-origin sugar

    Vietnam has imposed an anti-dumping and anti-circumvention levy on Thai sugar imported via 5 ASEAN nations.

    The final verdict was made Monday, and the duty of 47.64 percent will become effective between Aug. 9 and June 15, 2026.

    The probe was launched last September after local firms reported sugar products imported from Laos, Cambodia, Indonesia, Malaysia, and Myanmar did not originate in those countries.

    Sugar imports in Vietnam jumped five times year-on-year to 527,200 tons in the period between October 2020 and June 2021, according to the Ministry of Industry and Trade.

    Imports from Thailand, however, slumped 38 percent in the same period.

    This was the period that Vietnam was investigating Thai sugar for dumping and subsidizing.

    “The sugar industry has provided evidence showing signs of Thai sugar’s trade remedies evasion through five countries mentioned above, especially the sudden jump in sugar imports,” the trade ministry said in a statement.

    Last June, Vietnam imposed an anti-dumping levy of 47.64 percent on some sugar products from Thailand for five years.

    Around 3,300 Vietnamese farmers lost their jobs, and 93,225 farming households were affected due to difficulties in the domestic sugar industry, according to the trade ministry.

  • Tourism recovery dogged by lack of staff

    Tourism recovery dogged by lack of staff

    The number of new hospitality businesses is rising, but a shortage of staff and tourists from pre-Covid major markets are hampering the tourism industry’s revival.

    The number of foreign tourists rose 582 percent year-on-year to 602,000, while over 3,000 new accommodation and hospitality businesses were registered, up nearly 28 percent year-on-year, according to the General Statistics Office.

    However, as 60.8 million domestic tourists started to travel after two years of Covid-19 constraints, businesses are struggling to recruit enough staff to cater to the surging demand in many localities.

    “Recruitment is difficult for the whole industry. In our hotel chain, each staff has to undertake several different jobs,” said Vo Thi Thien Huong, director of business and marketing at Fleur De Lys Hospitality hotel chain.

    Jakob Helgen, Marriott International area vice president for Thailand, Vietnam, Cambodia and Myanmar, said many companies are experiencing a labor crisis as employees were forced to quit in droves during the Covid-19 restrictions.

    Other hotels have reported staff shortage in the reception, housekeeping and food and beverage departments.

    The reason for the shortage is erstwhile staff had left for other jobs over the last two years, said Le Thi Ngoc Cuong, director of business and marketing at The Secret Con Dao hotel.

    “Many former tourism staff have found other stable jobs and so it is unlikely that they will return.”

    Phan Trong in Ho Chi Minh City is one of the former tourism staff who is unlikely to return.

    The 33-year-old had worked as a tour guide for five years before leaving for a new job last year, when most tourism activities were shut down.

    He now works as a group leader for a call center with a salary of VND13 million ($556) a month.

    “My salary is the same as before. Even though the new job is a little bit more demanding, I have settled down with it and do not want to go back.”

    Le Nguyen Ngoc Thanh, country director at headhunting platform Adecco Vietnam, said that demand for tourism, hospitality and accommodation staff has increased since the first quarter, but many companies were struggling to fill the empty positions.

    Adding to the shortage is the lack of skill among workers, with many receiving no training or the last two years and fresh graduates having no experience, she added.

    In addition, many workers who left for their hometowns are reluctant to return to major cities because of high living costs and inadequate salary offers, she said.

    Missing tourists

    Another key problem for the industry is the lack of foreign tourists.

    The 602,000 foreign tourist arrivals in the first six months marked a decline of nearly 93 percent over the same period in 2019, when the pandemic had yet to hit the world.

    The four major markets of China, South Korea, Japan and Taiwan together accounted for 66 percent of foreign tourists in the first six months of 2019, but as these countries and territories still maintained quarantine policies for returning tourists, people were not eager to fly.

    The Russia-Ukraine crisis has also blocked Russian tourists, who used to pack Nha Trang and Mui Ne beaches.

    The Russia-Ukraine tension and China’s ‘zero Covid’ policy has had a major impact on Vietnam’s tourism recovery, said HSBC’s country head of markets and securities services Ngo Dang Khoa.

    Inflation and Covid-19 are other factors that keeps tourists from traveling globally, he added.

    One of the solutions the Vietnam National Administration of Tourism has proposed is better utilization of the markets that Vietnam has resumed air travel with, such as South Korea, Japan, Western Europe, Australia and ASEAN.

    New markets that should be focused are India, U.S. and the Middle East, it has said.

    Thanh suggested that tourism companies provide trading for college graduates and employ part-term workers.

    “Businesses should conduct surveys on workers’ expectations in terms of salary and benefits and make necessary changes.”

    Thanh also proposed that companies try to reach out to former employees and convince them to come back.

    Trong said scenario was unlikely, at least for now.

    “There are still so many global issues like geopolitical tensions, diseases and natural disasters. If I go back and the industry freezes again, that would be a tragedy.”

  • Grocery chain Bach Hoa Xanh revenues drop on store closures

    Grocery chain Bach Hoa Xanh revenues drop on store closures

    Grocery chain Bach Hoa Xanh suffered an 8 percent fall in sales year-on-year in the second quarter to VND6.76 trillion (US$289.47 million) following its closure of hundreds of outlets.

    The subsidiary of electronics retailer Mobile World closed 251 unprofitable outlets in May and June as it restructured and also changed the layout of the remaining stores.

    It has so far renovated nearly 1,500 outlets and it plans to close down more this quarter, keeping only 1,700-1,800 stores open.

    Nguyen Duc Tai, its chairman, has said there will be no expansion this year to focus on improving efficiency and customer service.

    The company is preparing for nationwide expansion in 2023 from its current predominant presence in the south.

    Bach Hoa Xanh reported revenues of VND12.8 trillion for the first half, accounting for 18 percent of Mobile World’s revenue.

    Mobile World’s revenues rose 13 percent to VND70.8 trillion, while profits were up 1 percent at VND2.68 trillion.

  • Used O2O motorbike trade debuts in Vietnam

    Used O2O motorbike trade debuts in Vietnam

    OKXE has pioneered the online to offline (O2O) sale of used motorbikes, rejuvenating the market.

    The inadequacies and bad experience of users when buying used motorbikes are the reason why Wooseok Kim, CEO of OKXE launched an online platform trading used motorbikes in Vietnam.

    “We want to solve the inconvenience of users when trading used motorbikes, providing an easier, safer and more enjoyable online platform,” said the OKXE CEO.

    Founded in August 2018, the initial goal of this start-up is to create a more explicit and secure second-hand motorbike market for users. At the time, OKXE was one of the first mobile platforms in Vietnam in the field. However, a lot of Vietnamese still consider motorbikes to be assets of great value, and online transactions can be problematic due to fraud, subpar autos, and inaccurate prices. The company’s CEO admitted his online platform has only met about 50-60 percent of the original target.

    Operational for more than five years, OKXE Vietnam opened a motorbike service station, put into operation at the end of May 2022, creating a complete O2O model.

    This was a bold strategy, because the O2O model has not been applied by many in the field, said a company representative. “While focusing on the new model, OKXE maintains investment in expanding the market. This is a dual goal that we want to achieve in future.”

    The OKXE service station is expected to provide users with a more comprehensive experience based on the expanding and evolving ecosystem. The service station offers extra services in addition to its online offerings, including quality checks on used motorbikes, price recommendations, consignment acceptance, and sales negotiations.

    The first OKXE Station covers 500 square meters, including: service reception, motorbike wash, refurbishment repair, quality inspection, consignment display, cafe counter…

    This company’s research indicates the majority of Vietnamese frequently pick traditional motorcycle marketplaces or secondhand motorbike shops. By cooperating with this trading approach, OKXE opted to create a national network of collaboration rather than viewing it as a rival.

    To be more precise, this business leverages a plentiful source of clients and used vehicles from its partners, gradually enhancing and perfecting its service chain. On the other hand, OKXE uses a platform with millions of users to assist partners in selling motorbikes more quickly. Additionally, the service center aims to help partners with financial assistance packages for motorbike purchases, warranties, after-sales, photography support, and online sales.

    According to an OKXE representative, the company’s platform has experienced steady growth from the time of launch until now and is always improving. “Currently, the OKXE app has reached seven million downloads on iOS and Android platforms. More than 500,000 motorbikes have been registered and sold successfully through the application”, it was added. “As of July 2022, OKXE Vietnam has nearly 2,000 partner stores nationwide.”