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DNP, VRC, and HKB were all very active on the M&A scene, but with what results? DNP: Continuously engaging into M&As of water and plastic sector companies Dong Nai Plastic JSC (ticker DNP) is one of the businesses most active on the M&A scene in the past years. Within four years, its charter capital increased 25-fold from VND34 billion to VND880 billion, through three stock issuances to existing shareholders, two private placements, and one stock distribution to the company’s employees under the employee stock option plan (ESOP), besides several rounds of dividend and bonus payments in the form of stocks. Amid rapid capital hikes in the past four years, DNP has been actively engaged in a string of M&A deals with businesses in the water and plastics fields. By the end of June 2018, besides its Dong Nai Plastic Plant, the company possesses two other businesses, Tan Phu Plastic where it holds a 72.65 per cent stake and Dong Nai Mien Trung Plastic where it holds … [Read more...] about Where has the money gone after landmark stock issuances?

Incentives are among the vital tools to make Vietnam more attractive to foreign investors The Ministry of Planning and Investment (MPI) is now working on the latest draft of the next-generation foreign direct investment (FDI) strategy towards increasing investor confidence and the added value to the economy. The most important highlight of the strategy is the shift in the focus of FDI attraction from attracting investors suitable for products to attracting investors for products and kinds of investment that Vietnam needs in the future, thus contributing to maximising FDI influence and added value. To this end, investment incentives are among the vital tools to make the country more attractive to foreign investors, amid growing competition and changes in key global trends, while low salaries will no longer be an advantage. According to international experts, Vietnam relies heavily on profit-based incentives, like time-limited tax exemptions and tax reductions, as well as on … [Read more...] about Renewing Vietnam’s FDI strategy

Less than two weeks are left before Vietnam celebrates 30 years of FDI mobilisation with a large-scale conference reviewing performance so far and discussing strategies and opportunities in the future. Samsung is one of the biggest investors in Vietnam, with several billion-dollar projects The conference on 30 years of FDI mobilisation in Vietnam will take place on Thursday, October 4, 2018 at the National Conference Centre (NCC), 1 Thang Long Avenue, Me Tri ward, South Tu Liem District, Hanoi. Prime Minister Nguyen Xuan Phuc will attend and chair the conference, which will welcome the speakers, including leaders of ministries and provinces, business associations, domestic and foreign investors, and foreign direct investment (FDI) experts to discuss the strategy, directions, and future solutions for FDI in Vietnam. On the side-lines of the conference, the exhibition on 30 years of FDI achievements will also take place, including various images, graphics, maps, and artefacts … [Read more...] about 30 years of FDI in Vietnam: new vision and opportunities in a new era

Foreign tourists now do almost all of their bookings online rather than through traditional travel agents On a cool autumn day in Ta Hien street in the heart of Hanoi’s Old Quarter, Danny and Rebecca, two tourists from England visiting Vietnam for the first time, were enjoying draught beer and fermented pork rolls. Having just arrived in Hanoi that morning, they were armed with a list of interesting activities they wished to experience. Pointing to her smartphone, Rebecca said, “We want to try something very “Hanoi” and the smartphone brought us to this place.” Tourists like Danny and Rebecca can be found in most famous destinations in Vietnam. With just a simple digital device like a smartphone or tablet connected to wifi and 4G, tourists can easily travel everywhere without worrying about getting lost or language barriers, without needing a tour guide for support. A survey on international tourists to Vietnam in 2017 shows that 71 per cent searched … [Read more...] about Future of tourism is here

Consumer behaviour in Vietnam is leaving behind its focus on higher prices, Photo: Le Toan Fast fashion on the rise As Zara and H&M are thriving in the domestic fast fashion market, newcomer UNIQLO from Japan announced in late August its plans to open its first store in Vietnam in the autumn of 2019. Unlike H&M and Zara, which serve the latest fashion trends, UNIQLO will also meet other customer demands by offering innerwear, loungewear, and swimwear. UNIQLO’s different customer approach is expected to add dynamism to the market. Vinh Ha from Hanoi, who has three years of experience working in Japan, said, “UNIQLO is mainstream in Japan. People like UNIQLO’s products because of their comfortable and simple style. UNIQLO’s collections keep pace with new fashion trends. I once read a Japanese article saying that UNIQLO’s sales revenue in Japan is higher than that of Zara and similar to H&M. I think UNIQLO could really take the fight to Zara … [Read more...] about Fast fashion set to transform market

The Vietnamese youth is optimistic about the changes Industry 4.0 will bring, Photo: Le Toan Source: World Economic Forum and Sea, one of Southeast Asia’s leading internet companies Last weeks’ visit to Vietnam by Klaus Schwab, founder and executive chairman of the World Economic Forum (WEF), was quite special. He came to the country with a big gift, a great deal of novel ideas for Vietnam to go forwards sustainably within the unfolding Fourth Industrial Revolution. The gift was the Vietnamese-language version of his world-famous book titled “Shaping the Fourth Industrial Revolution,” which has already been translated into 29 languages. “Shaping the Fourth Industrial Revolution” draws on contributions by more than 200 of the world’s leading technological, economic, and sociological experts to present a practical guide for citizens, business leaders, social influencers, and policy-makers. It outlines the most important dynamics of … [Read more...] about Shaping future of Vietnam’s labour

The ASEAN’s startup community, including Vietnam’s, has great potential, but they still face a multitude of challenges-Photo: Duc Thanh At last week’s World Economic Forum on ASEAN (WEF on ASEAN 2018) held in Hanoi, Hachi was among the several Vietnamese startups on the list of the most creative startups selected by the WEF to partake in the WEF on ASEAN 2018. “This agritech startup has built more than 12 ‘smart farms’ in Vietnam. They use Internet of Things sensors and a hydroponic system, which is a way of drip-feeding plants water and nutrients, which saves waste. They claim the approach has led to a 300-per-cent increase in productivity,” the WEF explained picking Hachi on its website. During 2015-2016, Nguyen Xuan Truong, the founder of Hachi, began thinking about establishing this startup, when he saw that the domestic foodstuff market was flooded with unsafe products. “I saw that it would be quite feasible to apply IT to … [Read more...] about Vietnam grows into ASEAN startup hub

Despite high incomes, top-level bank personnel are witnessing rapid face changes this season. Choosing the right people and talent retention are growing concers among banks The Bank for Investment and Development of Vietnam (BIDV), a major state-owned commercial lender, has just announced changes in the top management. Accordingly, Doan Anh Sang was removed as deputy general director from August 31, 2018. Sang and his relatives currently hold more than 20,000 stocks of the bank (ticker BID). Sang also represents more than 31.8 million BID stocks possessed by the bank’s Securities JSC. The position of the bank’s chairman is still vacant after Tran Bac Ha, former BIDV chairman, retired in September 2016. On May 3, 2018 Bui Quang Tien, a member of the Board of Management who represents the 30 per cent state capital at BIDV, was assigned to manage the operations of the bank’s Board of Management to replace Tran Anh Tuan. A recent survey by Navigos Group, a … [Read more...] about Volatility in top management positions at banks

While businesses in Vietnam find it convenient and effective to advertise through social networks, it is getting difficult to prove that this kind of marketing is eligible for tax deductions. Online advertising expenses are posing a tough nut to crack for businesses in Vietnam as they find circulars guiding tax regulations on it vague to make claims for deductibles. On the side-lines of the Taxing Times Symposium 2018 held by EY Vietnam on September 12, Pham Thi Hue, chief accountant at water purification equipment provider AO Smith Vietnam Company Ltd., expressed her concerns that as her company regularly advertises products on Facebook, they may not be able to claim this as an advertising expense due to a lack of supporting documents like contracts signed with Facebook or invoices issued from the social networking service company. “We are paying up to VND1 billion ($44,247) a month to Facebook for advertisements. To be eligible for a tax deduction, we ought to have an invoice … [Read more...] about Deducting online advertising expenses: a tough nut to crack

PwC Vietnam's general director shared her expert views with the audience at the Vietnam, Business Summit 2018 Growth in ASEAN David Wijeratne Last year marked the 50th anniversary of the Association of Southeast Asian Nations (ASEAN), a unique achievement considering the regional conflicts and poverty which characterised the region in the first half of the 20th century. The ASEAN’s remarkable growth journey to become the world’s sixth-largest economy has been powered by its people, with the establishment of a formidable labour force and the subsequent creation of a wealthier middle class which has driven domestic consumption. Challenges to ASEAN’s growth However, against this backdrop, questions have been raised about the sustainability of the ASEAN growth story. Global economic growth has slowed in recent years and this has impacted all markets across the ASEAN. GDP growth in Singapore (or the developed ASEAN) dropped below the global average to 2.0 per … [Read more...] about Time to act for the future of ASEAN