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Despite last year’s expansion to household goods and functional foods, Digiworld’s current revenues have completely depended on Xiaomi. Xiaomi has opened eight stores in Vietnam Retaining focus on mobile phones Digiworld Corporation (HSX: DGW) recently announced its highest sales figures to date. The company’s revenue for the second quarter was VND1.363 trillion ($60 million), up 72 per cent on-year. This increased the revenue of the first half of the year to VND2.628 trillion ($115.8 million), up 70 per cent on-year and equalling 56 per cent of the yearly plan. Digiworld’s profits also increased to VND23 billion ($1.01 million), up 13 per cent compared to the second quarter of last year. Profit after tax was estimated at VND42 billion ($1.85 million) for the first half of the year, equivalent to 42 per cent of the yearly plan. This business result records the efficiency of co-operation between Digiworld and Xiaomi while applying Market Expansion … [Read more...] about Can Xiaomi bring long term benefits to Digiworld?

The Ministry of Transport (MoT) has proposed to raise the foreign ownership limit for airlines to 49 per cent, as well as removing the difference in charter capital between international and domestic airlines. Vietnam to increase foreign ownership limit to 49 per cent at domestic airlines According to MoT's new draft decree, in a change from the previous limit of 30 per cent of charter capital, foreign investors in the aviation sector could own up to 49 per cent of charter capital in a Vietnamese airline. The draft decree amending Decree 92 also proposed to remove differences in the required minimum amount of capital for airlines providing international and domestic air transport services, which stipulates conditional business sectors or activities in the civil aviation industry. The draft decree stipulated the minimum amount of capital required for the establishment and maintenance of an airline operating up to 10 aircraft to be VND700 billion ($30.84 million). This … [Read more...] about Vietnam to increase foreign ownership limit to 49 per cent at domestic airlines

The backing of ThaiBev has not helped Saigon Beer, Alcohol and Beverage Corporation (Sabeco) to overcome fierce competition from foreign breweries, forcing Sabeco to decrease its profit target for 2018 to VND4 trillion ($173.5 million) - VND1 trillion ($43.38 million) less than 2017’s profits. Sabeco targets to decrease in profit in this year Sabeco recently published its business targets for 2018, showing the company targets to earn VND36.092 trillion ($1.56 billion) this year, up 2.4 per cent compared to 2017. Beer sales only saw a light increase to 1.8 billion litres compared to the 1.79 billion litres of 2017. This is the first year that ThaiBev has joined the Sabeco Board of Directors after completing the purchase of 53 per cent of the stakes in December 2017. However, Sabeco has lowered its profit target by 20 per cent year-on-year. In early May, Sabeco released its consolidated financial statement for the first quarter of this year, reporting an increase in … [Read more...] about Sabeco 2018 profits set to be lower than last year

Singaporean Frasers Property Limited of Thai billionaire, the new shareholder of Sabeco, recently announced plans to buy 75 per cent of Phu An Dien Real Estate JSC (PAD), a subsidiary of Tran Thai Land Company Limited, for $35.2 million. 32-storey residential-cum-commercial development in Thao Dien Ward in District 2 to be held by Thai billionaire Frasers Property Investments (Vietnam) 2 Pte. Ltd., an indirect wholly-owned subsidiary of Frasers Property Limited (FPL) of Thailand’s billionaire Charoen Sirivadhanabhakdi has already entered into a conditional share purchase agreement to acquire 45 million ordinary shares, representing 75 per cent of the issued share capital of Phu An Dien Real Estate JSC. If the proposed acquisition is successfully completed, PAD will become a subsidiary of Frasers Property Limited, and continue undertaking the development of a residential-cum-commercial project on a mixed-use development plot in Linh Trung Ward, Thu Duc District, Ho Chi … [Read more...] about Thai billionaire sets ambitions on Vietnam’s real estate sector

Lazada suffers largest loss on e-commerce playground E-commerce firms report massive accumulated losses The Vietnamese e-commerce market is one of the leading ones in the region for investment. According to Nielsen, the annual growth of the e-commerce market is 22 per cent and is expected to hit $10 billion in annual revenue by 2022 from the current $4 billion. Thus, the Vietnamese e-commerce market has received great attention from new investors. It has drawn in a large number of players to become a highly-contested segment with low profit margins while expenditures for sales, logistics, and promotion programmes are too large. The make-or-break factor is financial capacity, as players are expected to suffer heavy losses to maintain their market share until the retail market ripens and profit starts to roll in. The domestic e-commerce market is ruled over by big names like Adayroi, Lazada, Tiki, Shopee or Sendo. These firms are backed by foreign e-commerce firms as well as firms … [Read more...] about E commerce players keep burning money

Due to concerns about environmental pollution, the Haiphong Party Committee decided to withdraw its announcement related to the Haiphong People’s Committee’s support to Nine Dragons Paper (Holdings) Limited to develop a $800 million paper and pulp mill complex South Dinh Vu Industrial Zone. South Dinh Vu IP where the Chinese investor wants to develop the paper and pulp mill complex According to Le Thanh, Secretary of the Haiphong Party Committee, issuing the approval to Nine Dragons Paper (Holdings) Limited to develop the project right after the firm expressed its intention was a rushed decision by the Haiphong People’s Committee, drawing the public’s ire, according to diendandoanhnghiep.vn. Thus, the Haiphong Party Committee decided to withdraw the previous announcement and will organise a press meeting to issue an official opinion on the incident. Previously at a working session with leaders of the Haiphong People’s Committee on July 5, … [Read more...] about Haiphong backtracks on hasty promise to $800 million paper project

Vu Dai Thang, Deputy Minister of Planning and Investment Market value reaching $335 billion by 2025 The sharing economy is part of the digital economy, a result of applying creativity and innovation to improve productivity. Representatives of the workshop on “Sharing economy: Megatrends and Impacts on the Vietnamese Economy” took place on July 12 stated that the sharing economy is a new business form restructuring numerous economic sectors, especially the services sector towards improving performance and creating more opportunities for customers, increasing transparency and competitiveness. In Vietnam, the concept of the “sharing economy” has only emerged but carries great potential for development. Deputy Minister of Planning and Investment Vu Dai Thang said that the sharing economy started in Vietnam later than in the world, but it has been developing at an astounding pace with the appearance of Uber, Grab, and Airbnb, becoming popular among users. Instead … [Read more...] about Proactively taking advantages of sharing economy

Once the government approves the proposal of the Ministry of Transport (MoT), Grab will have to operate as a taxi firm and have to install a light box with the words “Electronic taxi.” MoT's new draft decree would identify Grab and other ride-hailing apps as taxi firms This information was in the amended draft decree built by MoT to replace Decree No.86/2014/ND-CP on business and conditions for transportation business by automobile. Accordingly, based on the need to recognise Grab as a taxi firm, MoT asks Grab’s taxi driver partners to install light boxes with the words “Electronic taxi”. Besides, they will have to install software to connect with customers and supply customers information about the drivers’ private information, vehicles, the route, general fares, as well as the fares for the specific routes. According to MoT, these requirements will create favourable conditions to develop the model of passenger transport cooperation … [Read more...] about Grab may have to operate as taxi firm

Keppel Land Watco II Co., Ltd., G.V.C Development Limited, Indochine Park Tower, Global Toserco Co., Ltd., and Somerset Grand Hanoi, all big real estate developers in Hanoi and Ho Chi Minh City, will be inspected by the Ministry of Finance. Keppel Land Watco is trying to raise its ownership in Saigon Centre The Ministry of Finance (MoF) has just sent a document to the Ministry of Planning and Investment (MPI) on the inspection of implementing financial mechanisms and policies in five foreign-invested companies in this July. Accordingly, MoF will check the value of contributed capital at each party, the profits of the state’s contributed capital in these companies, the preservation of the state’s contributed capital in economic organisations, capital and project transfers, and the observation of tax laws. These firms will be informed seven days before starting the inspection. They are foreign-invested real estate companies with numerous big projects in Hanoi and Ho … [Read more...] about Five foreign invested real estate companies to be inspected

As non-cash payments are the next new thing in Vietnam, will it be necessary for banks to increase service fees for ATM maintenance? Vietcombank, VietinBank, Agribank, and BIDV are increasing service charges to finance their ATM networks. Photo: nhipsongkinhte.vn Banks increase service fees once again Four giants, including Vietcombank, VietinBank, Agribank, and BIDV, last week announced hiking ATM transaction fees from VND1,100 ($0.04) to VND1,560 ($0.06) (including VAT) from July 15. Previously, in early May, the banks also announced increasing banking service fees. However, afterwards, the State Bank of Vietnam (SBV) directed them to halt the price hike to safeguard customers’ benefits. According to data released by SBV, the four banks hold 63 per cent of all bank cards on the market. If the plan to increase service fees is carried out, 49 million cards will be impacted. SBV has once again directed banks not to increase ATM transaction service charges to ensure … [Read more...] about Price hikes for ATM maintenance may be behind the times