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Tag: Vietnam

  • Vingroup reports first-ever loss

    Vingroup reports first-ever loss

    Vingroup made after-tax losses of over VND7.5 trillion ($326 million) in 2021, its first-ever loss, citing funding for the pandemic fight and heavier investments in electric car development.

    Vietnam’s biggest private conglomerate’s net revenues stood at VND125.306 trillion last year, up 13 percent over 2020.

    Vingroup said some of its businesses, including real estate for rent, resort, and entertainment, were greatly affected by the prolonged social distancing campaigns in many localities. Vincom Retail, the retail real estate arm of conglomerate Vingroup, spent up to VND2.115 trillion assisting tenants, which also affected total revenues.

    Last year, the group sponsored Covid-19 prevention and other activities to the tune of VND6.099 trillion. It also decided to stop producing gasoline-powered cars from the end of 2022 to focus resources on electric vehicles.

    By the end of 2021, the group’s total assets were valued at VND427.3 trillion ($18.87 billion), up 1 percent from the beginning of the year.

    Recently the group adjusted its orientation, redefining three focus groups of activities, namely technology and industry, trade and service, and social charity.

  • Public Bank Vietnam launches Visa cards

    Public Bank Vietnam launches Visa cards

    Public Bank Vietnam Limited has announced its cooperation with global payment technology company Visa to launch international debit and credit payment cards. Public Bank Vietnam’s latest offering is integrated with the convenience of contactless payment features and secured 3D Secure 2.0 authentication technology. The bank’s credit card range includes Public Bank Vietnam Visa Classic, Public Bank Vietnam Visa Gold, Public Bank Vietnam Visa Platinum and Public Bank Vietnam Visa Signature with premium privileges to suit the preference of customers both in the mass and affluent market segment.

    Apart from the convenience of hassle free payments when making purchases with a preferential interest-free period up to 51 days, all new Public Bank Vietnam Visa cardholders will enjoy benefits like unlimited cashback for customer spending within the same month for Gold level and higher.

    Public Bank Vietnam Visa Signature also provides customers with premium privileges like a complimentary airport lounge during travel, global insurance coverage for cardholders and family and preferential foreign transactions. In addition, cardholders will also enjoy a classy lifestyle with 6 percent cashback on dining and groceries spending and unlimited cashback on other spending.

    During the launch of the brand-new Visa cards, Public Bank Vietnam is also launching a promotional program, new Visa cardholders will enjoy free card issuance and first year annual fee for all credit card classes and many other attractive promotions.

    Chee Keng Eng, General Director of Public Bank Vietnam said: “Public Bank Group’s collaboration with Visa dates way back and we are glad that today this long rooted relationship will be further extended to Vietnam through the launching of the all new Public Bank Vietnam Visa Credit and Debit Cards. Through our network of 30 branches in all major cities and provinces of Vietnam, we are committed to not only bringing the best features and deals to our customers, but also being there to support when the need arises at all times.”

    “Visa is constantly striving to improve services in order to assist our banking clients and partners to provide a variety of innovative, secured and diversified offerings, product and service portfolios, and comprehensive solutions to customers,” said Dang Tuyet Dung, Visa Country Manager for Vietnam and Laos.

    Public Bank Vietnam is a fully-owned foreign bank of Public Bank Berhad (Malaysia), one of the top-tier banks in Malaysia reputed for its strong financial performance and consistent prudent management, with presence across Asia Pacific including Hong Kong, China, Cambodia, Laos, Sri Lanka and Vietnam.

    Established on March 25, 1992, Public Bank Vietnam, formerly known as VID Public Bank, was one of the first joint venture banks in Vietnam. Operating 30 branches and transaction bureaus, the bank has expanded its network to all major cities and provinces in Vietnam.

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  • Brewer Sabeco profits fall to lowest level since Thai acquisition

    Brewer Sabeco profits fall to lowest level since Thai acquisition

    Vietnam’s largest brewer Sabeco said after-tax profit fell by over VND1 trillion (US$443 million) last year to VND3.93 trillion, the lowest since it was acquired by a Thai billionaire.
    Its revenues were VND26.37 trillion, a decline of 6 percent. Thaibev owned by Charoen Sirivadhanabhakdi acquired the company in late 2017.

    The firm blamed the Covid-19 outbreaks and subsequent restrictions in many provinces and cities across the country for the decline in performance.

    The firm has undistributed profits of over VND13.66 trillion.

    Vietnamese consumed 1.3 liters of beer per capita in 2020, according to the General Statistics Office. The country has a population of over 98.5 million.

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  • Fuel distributors seek foreign supply amid refinery production trim

    Fuel distributors seek foreign supply amid refinery production trim

    Vietnamese fuel distributors are negotiating with foreign suppliers to ensure adequate inventory for the holiday after the country’s biggest refinery cease imports due to cash shortage.
    PVOil, the second-biggest fuel distributor in Vietnam behind Petrolimex, has secured a deal with a foreign supplier to import more gasoline amid the expected shortage.

    The supplier gave an acceptable price with reasonable delivery time, said Cao Hoai Duong, company chairman, without revealing details of the supplier and price.

    The fact that Nghi Son Oil Refinery has cut down its production from 105 percent to 80 percent due to insufficient funds is urging fuel distributors to scramble for solutions to have enough inventory for the upcoming nine-day Tet holiday, which begins Saturday.

    “The imports, together with our backup inventory, is enough for PVOil to cover the expected market shortage before, during and after Tet,” Duong said.

    An anonymous director of a central distributor said the company has finally been able to secure a deal with a supplier and will have enough inventory for the holiday.

    A media representative of leading distributor Petrolimex did not say whether it would import more as the company is still receiving the agreed amount of inventory from Nghi Son.

    “In whatever scenario we will strive to ensure there would be sufficient inventory to distribute to the market.”

    Nghi Son said that it had to cut production because state-owned energy giant Petrovietnam has not approved import contracts and therefore it has to cancel two crude oil imports this month.

    Therefore the factory might have to shut down in mid-February.

    However, Petrovietnam stated Wednesday that the factory canceled the two shipments and that it had nothing to do with the approval of import contracts.

    Matters concerning the contracts are part of Nghi Son’s restructuring plan, which is under negotiation, the statement read.

    Nghi Son Oil Refinery has a capacity of 200,000 crude oil barrels a day, or 10 million tons a year, twice that of Vietnam’s other refinery Dung Quat Oil Refinery in Quang Ngai Province.

    State-owned fuel company Petrovietnam has a 25.1 percent stake in the plant, while the rest are owned by three foreign firms: Kuwait Petroleum International (35.1 percent and Japanese companies Idemitsu Kosan (35.1 percent) and Mitsui Chemicals (4.7 percent).

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  • iPhone 12 Pro, Pro Max out of stock in Vietnam

    iPhone 12 Pro, Pro Max out of stock in Vietnam

    Major iPhone authorized resellers in Vietnam have stopped importing iPhone 12 Pro and Pro Max models, seeking to boost iPhone 13 sales.

    “Most retail chains told me iPhone 12 Pro and Pro Max are out of stock. Some chains still sell them but in only a few stores,” said Que Chi in Hanoi.

    The salespeople she talked to all referred her to the new iPhone 13 models, which are readily available.

    iPhone 12 Pro Max, the best-selling iPhone model in Vietnam last year, is now marked as “out of stock” on the websites of major retail chains.

    A media representative of FPT shop said iPhone 12 Pro and Pro Max are sold out and the chain does not plan to import more.

    The same comment was given by other chains like ShopDunk and Minh Tuan Mobile.

    Although there is still high demand for these products in Vietnam, most buyers now only have the option to buy used phones or pay more for the latest iPhone 13, a media representative of Minh Tuan Mobile said.

    Nguyen Lac Huy, the media representative of CellphoneS, said the chain still has iPhone 12 Pro and Pro Max but in low quantity.

    “We cannot buy more as Apple does not have plans to continue production of these models.”

    iPhone 12 Pro Max with a storage of 128 gigabytes is being sold at around VND28.5 million, while the iPhone 13 Pro Max with the same storage is on sale for just VND2 million higher, which explains why distribution chains are focusing on the newer model.

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  • FLC launches jewelry brand

    FLC launches jewelry brand

    Conglomerate FLC on Wednesday entered the jewelry industry with the new brand FJC, establishing its first store in Hanoi.

    Located at Bamboo Airways Tower in Cau Giay District, FJC’s first store sells 24-karat gold, jewelry, diamond and fengshui accessories.

    The jewelry business will help FLC complete its ecosystem, which already includes real estate, aviation and tourism, said FLC Deputy Chairwoman Dang Luu Van, who is also the chairwoman of FJC.

    More FJC stores will be set up at FLC resorts and urban areas across the country, she added.

    The main competitors of FJC will be long-established jewelry brands like Saigon Jewelry Company (SJC), Phu Nhuan Jewelry (PNJ) and DOJI.

    FLC targets a revenue of VND27 trillion and profit of VND2.1 trillion this year, double from last year.

  • Gold prices hit new peak

    Gold prices hit new peak

    Vietnam’s gold price hit a new historic peak of VND62.7 million ($2,769.32) per tael Tuesday, surpassing the previous record in August 2020, even as global rates went flat.

    Saigon Jewelry Company (SJC) sold its gold at VND62.7 million per tael Tuesday, up 1.2 percent to a new record. A tael equals 37.5 grams or 1.2 ounces.

    Jewelry company DOJI sold its gold at around VND62.6 million and Phu Nhuan Jewelry, for VND62.3 million.

    Global rates were little changed at $1,840.49 per ounce Tuesday afternoon as concerns about a faster pace of policy tightening by the U.S. central bank countered safe-haven demand, fueled by escalating tension over Ukraine.

    Vietnam’s gold is now VND12 million, or 23.7 percent, higher than global rates.

  • Uniqlo set to come to Hai Phong

    Uniqlo set to come to Hai Phong

    Japanese fashion brand Uniqlo plans to open its first store in the northern city of Hai Phong this summer.

    It will be a 2,000-square-meter outlet at Aeon Mall Le Chan.

    Uniqlo, which came to the Vietnamese market two years ago, now has 10 stores in Hanoi and HCMC.

    Globally, it has over 2,300 in 25 countries and territories.

    German research firm Statista estimates Vietnam’s fashion industry to grow at an average annual rate of 22.5 percent in 2017-22 to reach US$988 million.

  • Rents for Hanoi serviced apartments plunge to three-year low

    Rents for Hanoi serviced apartments plunge to three-year low

    Hanoi serviced apartment rents fell by 3 percent to a three-year low of VND547,000 (US$24.16) per square meter per month last quarter, according to Savills Vietnam.

    Compared to a year earlier the average rents for grades A-C apartments decreased by 4 percent to VND705,000, and 11 percent to VND233,000.

    The average occupancy remained unchanged from the third quarter at 69 percent but increased by 2 percent year-on-year.

    Nam Tu Liem District saw the highest rate of 83 percent, followed by Hai Ba Trung with 79 percent and Long Bien with 78 percent.

    Ten grade A and B projects has an occupancy of more than 90 percent.

    Post-Covid-19 tenants have higher requirements of the place they live in, prioritizing a good healthcare system, air quality and green space, according to a global survey done last year. Branded serviced apartments that collaborate with epidemiologists to improve their healthcare and safety quality are thus favored by tenants now.

    Savills said investors are opting to build serviced apartments on a smaller scale, and studio and one-bedroom apartments account for 49 percent of the market now.

    Apartments with two and three bedrooms account for 35 percent and 14 percent.

    The four projects that came into the market last year have small units with an area of 15-56 square meters accounting for some 65 percent.

    The revenue per square meter from small apartments is 4-15 percent higher than from larger ones.

    Studio and one-bedroom serviced apartments are becoming flexible, offering dual keys and both long-term and short-term lease.

    Savills said thanks to having double the space (kitchen, living room and office), dual-key apartments serve tenants’ demand for working remotely.

  • Manufacturing, IT firms rush to recruit workers

    Manufacturing, IT firms rush to recruit workers

    Manufacturing and tech companies are rushing to recruit workers as foreign companies show rising interest in setting up or expanding their factories in Vietnam.

    Electronics manufacturer Jabil Vietnam is recruiting 500 workers in Ho chi Minh City, with a bonus of VND3.3 million ($145.62) promised to each new employee.

    Other companies in Saigon Hi-Tech Park Training Center, including drugs company Sanofi, along with electronics manufacturers Platel Vina and Intel are also looking for technicians.

    HCMC companies need around 30,000 new workers before the annual Tet holiday, which falls in the first week of February this year, according to the city’s Department of Labor, Invalids and Social Affairs.

    After Tet, they need up to 75,000 more, it said, adding that information technology, electric and electronics are the main sectors recruiting.

    A recent report by recruitment company Navigos shows that in the north, many new electronics manufacturing projects from China are looking to recruit staff.

    But these factories have difficulties in finding the right people as they are located far away from big cities and there are few fluent Chinese-speaking workers.

    Navigos says there is large competition for workers in the IT industry, especially in artificial intelligence, Big Data and blockchain, due to the shortage of talents.

    Since the last quarter financial companies are also looking for IT personnel, which shows the sector could post higher demand for these workers this year, the report said.

    Global IT companies are investing in Vietnam by establishing representative offices or research and development centers in Hanoi, HCMC and Da Nang City, it added.

    In manufacturing, multinationals are looking for senior Vietnamese leaders to hold key positions like director of the Asia Pacific region or Southeast Asia, Navigos stated.

    “This shows Vietnamese capabilities have risen to secure key regional positions.”

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  • Vietnam steps up dragon fruit exports to Australia

    Vietnam steps up dragon fruit exports to Australia

    Large volumes of dragon fruit are being exported to Australia though it is currently the harvest season there for the fruit.

    Twenty-eight tons were shipped to Western Australia and South Australia last week by 4 Ways Fresh and Australia Flower, according to the Vietnam Trade Office in Australia.

    Australia Flower is set to export another 14 tons this week.

    Several retailers like Dai Phat and MCQ are selling the fruit at the equivalent of VND200,000 ($8.84) per kilogram.

    The exporters said they are targeting young consumers in Australia. The Vietnam Trade Office is offering promotions to retail buyers that include air tickets, toys and other gifts.

    Last year Vietnamese dragon fruit exports to Australia grew by 14 percent despite the Covid-19 pandemic.

    Vietnamese farmers grow nearly 1.4 million tons of the fruit every year, and most of it ends up exported to China.

    However, industry insiders said China has been increasing its area under the fruit in the last three years and would become self-sufficient in another five years, meaning Vietnamese exporters need to look for other markets.

  • Tobacco giant pursues green growth

    Tobacco giant pursues green growth

    The circular economy model helps production and business activities develop sustainably and creates added value ​​in the community, said a representative of British American Tobacco (BAT).

    Vietnam has been integrating more and more deeply into the global economy through free trade agreements that include provisions on sustainable development and oblige all parties to comply with emissions standards.

    These constraints are also consistent with the contents mentioned in the United Nations 17 Sustainable Development Goals for the period 2015-2030 that Vietnam and its businesses are pursuing.

    These include eradicating hunger, ensuring food security and improving nutrition, developing sustainable agriculture, ensuring sustainable production and consumption patterns, and promoting long-term, inclusive and sustainable economic growth as well as productive and good work for all.

    Currently, 90 percent of tobacco plantations in Gia Lai is invested in by businesses following the cooperation model with the participation of enterprises, farmers, authorities and scientists. Vietnam Tobacco Corporation (Vinataba) is working with joint venture partners like British American Tobacco (BAT) to support farmers through seed investment (creation of new varieties with high yields), investment in fertilizers, agricultural mechanization (from gardening to irrigation), and organizing technical training for farmers to show them how to tend to their crops for the best quality and highest productivity.

    Besides, the Vinataba-BAT joint venture is interested in conserving biodiversity, saving irrigation water, protecting forests, and committing to not using natural forest firewood, while improving soil fertility, managing energy, and reducing water pollution in their plantations.

    After more than 15 years of developing tobacco plantations in Vietnam, BAT has helped to provide incomes 30 percent higher than the investment norm, and now over 90 percent of farmers are attached to the industry since its inception.

    In 2020, after 10 years of implementation, the use of BAT’s new hybrid varieties reached 54 percent. Meanwhile, the implementation of mechanization had helped save more than 20 percent of costs and labor for farmers.

    Pham Hung Anh Tuan, head of operations, BAT East Asia, said the application of circular economy principles needs to be adapted across the entire value chain, thereby providing opportunities for innovations and reducing overall environmental impact.

    “Effective application of sustainability has helped BAT on a global scale to be continuously recognized on Dow Jones Sustainability Index and continuously recognized as a Diversity Leader by Financial Times,” said Tuan.

    In addition to these efforts to develop sustainable growing areas, the BAT-Vinataba tobacco joint venture factory in Bien Hoa (Dong Nai) has implemented a range of initiatives focused on sustainable production and consumption, such as reducing water use (2 percent per year) and collecting rainwater to use instead of source water, production wastewater being reused instead of being discharged into the environment.

    Along with meeting the environmental A standard, the wastewater system at the BAT-Vinataba factory has been used for deodorizing and other water-saving activities. Kitchen waste, leaves, tobacco dust, sewage sludge, etc. are collected and transferred to the fertilizer production company.

    Up to now, BAT’s factories in Vietnam have completely switched to using biomass in the combustion boilers, contributing to increasing the rate of renewable energy use in Vietnam by the end of the third quarter of 2021 by 26 percent, doubling the plan set out for the year.

    A total 100 percent of lighting systems in factories have switched to LEDs, saving more than 40 percent of lighting energy compared to using conventional light bulbs.

    Thanks to the activities, 2021 was the third year that BAT was honored on the list of the 100 Most Sustainable Companies (CSI) in Vietnam organized by VCCI-VBCSD.

    Towards 2025, BAT in Vietnam will continue to make efforts to achieve its sustainable development goals. BAT aims to eliminate all unnecessary single-use plastics in packaging, achieving an average recycling rate of 30 percent for all plastic packaging. All plastic packaging products will be recyclable, reused, or biodegradable so they are environmentally friendly. A total 100 percent of BAT plants, including in Vietnam, will have zero landfill waste and 95 percent of waste will be recycled.

    As a member of the CSI organizing committee, Nguyen Quang Vinh, general secretary of Vietnam Chamber of Commerce and Industry, shared more about the Sustainable Business Index, developed by the VCCI and leading domestic and international experts to provide the community with an effective management tool and a measure to evaluate the level of sustainable development regarding aspects of the economy, society and environmental protection of enterprises.

    “We acknowledge BAT’s contributions to the sustainable development of Vietnam over the years in terms of environment, society and corporate governance,” said Vinh.

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  • Vietnam to begin 6G technology research and development

    Vietnam to begin 6G technology research and development

    Vietnam will start researching 6G wireless networks in 2022, says Information and Communications Minister Nguyen Manh Hung. Addressing a 2021 telecom review conference last weekend, Hung said Vietnam’s telecom industry should “be in the top group in terms of deploying 5G and developing 6G networks in the world.”

    He said Vietnam will carry out 6G research this year alongside nationwide deployment of the 5G network. According to the ministry Department of Telecommunications, a steering committee for 6G research development has been formed. Vietnam is one of the world’s first ten countries to set up this committee.

    Hung also set a target of 6G frequencies being licensed by 2028 before moving on to its commercial rollout.

    “Telecom networks must quickly transition to cloud-based and software-based architectures, so that the network becomes intelligent and flexible, and can be software-configured into numerous specialized sub-networks. Open RAN will be used as a technology for 5G, 6G development,” he said.

    Vietnamese companies should target to successfully research and manufacture 5G and 6G equipment, transmission equipment, and terminal equipment, he added.

    A representative of the department said that Vietnam will commercialize 5G this year and aim to have 25 percent of the population using the technology by 2025. He said 4G services currently cover 99.8 percent of the country.

    Three major telecom providers VNPT, MobiFone, and Viettel have been commercially trialing 5G services in 16 provinces and cities.

    6G technology is the next step after 5G that is being researched in a few countries including the U.S. and China.

    In theory, 6G could reach speeds of one terabit per second, it has been reported.

    The 6G network is expected to lay the groundwork for an “intelligent era” in which AI and robots become commonplace. However, no technical standards or frequencies for 6G have been agreed upon as yet.

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  • Vietnam grocery platform Mio secures US$8 million in Series A funds

    Vietnam grocery platform Mio secures US$8 million in Series A funds

    Mio, a Vietnam-based social commerce startup, has raised US$8 million in a series A funding round led by Jungle Ventures. Patamar Capital, angel investor Oliver Jung, and existing investors such as Golden Gate Ventures, Venturra Discovery, Hustle Fund, iSeed SEA, and DoorDash executive Gokul Rajaram also participated in the round.

    The investment boosts Mio’s total funding raised to US$9.1 million.

    Founded in June 2020, Mio uses a network of resellers to sell fresh produce such as fruit, vegetables, and meat. The company was set up by former IDG Ventures associate Trung Huynh, Scommerce co-founder An Pham, ex-DigiPay executive Tu Le, and former Uber Vietnam operations lead Long Pham.

    Around a year after its inception, when the company raised a US$1 million seed round, it had 150 active resellers. Today, that number has grown by 10x to 1,500. Mio’s gross merchandise value (GMV) has also increased by more than 50x in the last 12 months.

    Huynh credits the company’s growth to its referral programs, which offer a fee to resellers who can onboard other people to the platform. Existing resellers also get additional bonuses if the individual they refer performs well. In a statement, Mio said that each reseller can earn up to US$400 from these referral bonuses as well as from the 10% commission they get for every order they facilitate.

    “We spend very little in marketing. We don’t use digital marketing or billboards – we focus on the referral,” Huynh told Tech in Asia.

    Mio has around 240 employees, an increase of 5x since May last year. Around 50% of its headcount consists of its operational taskforce who work in the company’s warehouses and fulfillment centers.

    Mio plans to use the fresh funding to put up more fulfillment centers and tap into new cities in Vietnam. It currently covers Ho Chi Minh and its satellite cities, such as Binh Duong, Dong Nai, and Long An, which are located in the southern region of the country. This year, it plans to enter the northern region, where the country’s capital city of Hanoi is located.

    “Hanoi has similarities with Ho Chi Minh, and it also has several satellite cities. We aim to be present in 10 cities by the end of 2022,” Huynh noted.

    The company also wants to improve its logistics and supply chain, which Huynh said is important for Mio in the long run. That’s why the company prefers to control fulfillment centers and the delivery process itself. Today, its delivery courier can handle almost 80% of the company’s total transactions.

    “During the time when the order is spiked, or there is a special event, we cooperate with third-party logistics,” Huynh said.

    The company currently sells more than 10,000 products every day, and it targets to fulfill 100,000 orders per day by the end of 2022.

    Huynh revealed that he sees interest from businesses in the hotel, restaurant, and cafe sector that want to source fresh produce from his company in bulk due to the attractive prices. With the pressure to increase GMVs after raising a significant amount of funding, Huynh finds the offers tempting.

    However, he consistently rejects such requests to keep the company focused on using its reseller network and reaching customers nationwide.

    Mio has expanded its offerings to FMCG products due to requests from its customers. However, these offerings only occupy around 10% of Mio’s total stock keeping units. Huynh explained that while FMCG products are easier for fulfillment – as they typically have a longer shelf life than other categories – they bring lower margins.

    “Majority of our GMV still comes from fresh produce, so it will still be our focus,” Huynh added.

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  • Value-added tax to be cut to 8 pct from February

    Value-added tax to be cut to 8 pct from February

    A draft government decree reduces value-added tax on many products and services from the current 10 percent to 8 percent from Feb. 1.

    The decree on tax reduction to foster economic recovery approved by the National Assembly will also make expenses on pandemic prevention deductible.

    The VAT cut will lead to a loss of some VND49.4 trillion (over $2.1 billion) in revenues, according to the Ministry of Finance.

    The deductible expenses will lead to a loss of VND2 trillion.

    The lower VAT rate will not apply to telecommunications, information technology, financial activities, banking, securities, insurance, real estate, metal, and prefabricated metal products, mining (excluding coal), coke, refined petroleum, chemicals, and chemical products, and goods and services subject to excise tax.

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