The business community looks to 2019 with great expectations Photo: Le Toan Ousmane Dione Country director, World Bank Under the leadership of the Vietnamese government, Vietnam’s socioeconomic achievements have been remarkable. Over the course of 30 years, the economy has expanded at an average of nearly 7 per cent annually. As a result, per capita income has increased almost five-fold. Vietnam today has emerged as a thriving lower middle-income economy and an export powerhouse. Growth has also been inclusive, with poverty falling to just below 7 per cent, compared to more than 60 per cent in the late 1980s. But Vietnam’s journey to become a modern, industrial economy has only just begun, and past achievements are no guarantee for future success. Domestically, Vietnam will have to tackle rising structural headwinds, including a rapidly-aging population, slow productivity growth and weak investment, as well as an increasing environmental toll on development. Leaning … [Read more...] about Business bigwigs on 2019 prospects
Cloud computing benefits and risks
FTAs to open up markets for Vietnam
Nguyen Minh Cuong, principal economist at the Asian Development Bank in Vietnam The early stages of the Fourth Industrial Revolution are now taking place and it will at the same time bring immense opportunities as well as formidable challenges to Vietnam. Over the past two years, there have been various discussions on the impact to the economy and how the country can be prepared to catch up and reap the benefits. Industry 4.0 by nature is aspirational and it reflects the advanced stage of Vietnam’s transformation. It does not happen on purpose at the beginning. Rather, it evolved naturally from the digital era in the early 2000s and expanding to include Artificial Intelligence, the Internet of Things (IoT), 3D printing, Big Data, and cloud computing, with more technical innovations to come in the future. This revolution is penetrating Vietnam incrementally and may fundamentally transform the economy. The country is enduring far-reaching economic restructuring, from labour and … [Read more...] about FTAs to open up markets for Vietnam
BUSINESS NEWS IN BRIEF 19/12
VN wood and furniture firms eye Mexico, Canada Mexico and Canada will be promising markets for Viet Nam’s wood and furniture products when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect in early 2019, according to the Ministry of Industry and Trade. Deputy Minister Tran Quoc Khanh said exports to Canada were worth over US$129 million last year and are expected to top $140 million this year. “The CPTPP will open opportunities for products such as wood flooring and bars to Canada because the market will immediately scrap the import tariff of 3.5 per cent when the agreement comes into effect. “Products such as plywood, picture frames, door frames and especially furniture will also have an opportunity because import tariffs of between 6 per cent and 9.5 per cent will be eliminated as soon as the agreement comes into effect. “Wooden handicrafts will also benefit when Canada agrees to abolish the 7 … [Read more...] about BUSINESS NEWS IN BRIEF 19/12
Prudential Finance at the forefront of innovation
Atul Dixit, CEO of Prudential Finance, at the forefront of Vietnam Retail Banking Forum 2018 The events, which were held in Ho Chi Minh City on November 28-29 with great success, provided a platform for expert-led sessions on knowledge economic trends shaping the region as well as technological developments that are geared to take the financial services industry to the next level. The Vietnam Cyber Security Forum 2018 was organised by the Authority of Civil Cryptography Management and Cryptography Product Evaluation (the Vietnamese government’s Cypher Committee), the Vietnam Computer Emergency Response Team, the Authority of Cyber Security and Information Security (Ministry of Public Security), and the International Data Group (IDG Vietnam). Now in its 10th year, the Vietnam Retail Banking Forum 2018 – organised by the Vietnam Banks Association and IDG Vietnam – is one of the leading influential retail banking events in the country. Senior executives and officials … [Read more...] about Prudential Finance at the forefront of innovation
BUSINESS NEWS IN BRIEF 15/11
Mai Linh launches cooperative to attract idle cars Mai Linh Group on November 15 will officially introduce and start the operation of Hoa Binh Xanh Taxi Cooperative in HCMC, which will call for the participation of owners of idle cars. According to the group’s press release, the cooperative is expected to offer more choices to the group’s customers. Early joiners of Hoa Binh Xanh Cooperative will be exempt from the management fee until December 31. They will also receive a uniform, free training courses and practicing certificates. After that, they will have to pay the management fee of only 13.9% of revenues for the duration of their contracts. Hoa Binh Xanh Cooperative will share Mai Linh’s taxi booking app and use call center 1055. The cooperative’s taxicabs will not be forced to have bright colors or be repainted in green, the traditional color of Mai Linh. However, they will have a lightbox highlighting the word “Taxi,” the Hoa Binh Xanh logo … [Read more...] about BUSINESS NEWS IN BRIEF 15/11
Future of business lies in the cloud
Pham Hong Phong Advanced technology is taking centre stage in almost all aspects of our daily lives. How far has it transformed the way businesses operate here in Vietnam? In Vietnam, I’ve seen that IT has won the trust of local residents, enterprises, and the government, as they all perceive the clear benefits of its application in everyday life and work. In an era of digital transformation, I’ve seen the local government be very active in welcoming and promoting Industry 4.0, embracing artificial intelligence (AI), deep machine learning, blockchain, and, above all, cloud computing. Cloud computing in particular has changed how businesses go about developing their IT system. It used to be complicated, requiring the enterprises to recruit IT specialists and invest in equipment and software to deploy and operate such systems. This was costly and time-consuming. Now, with cloud computing, these issues are all solved by simply signing up with a cloud provider which equips … [Read more...] about Future of business lies in the cloud
BUSINESS IN BRIEF 19/6
Nawaplastic still hungry for Binh Minh Plastic shares Owning a dominant stake in Binh Minh Plastic (BMP) did not quench Nawaplastic Industry Co., Ltd. (Nawaplastic)’s thirst for BMP shares. Most recently, Nawaplastic registered to buy an additional 1.17 million BMP shares to increase its holding to 44.525 million shares, equalling 54.39 per cent of the charter capital. The transaction is expected to occur between June18 and July16. The registered share volume is the remaining part of the 2.86 million shares that Nawaplastic failed to buy during previous transactions. Notably, Nawaplastic registered to buy 2.86 million BMP shares during transactions on May 14-June 12, however, the Thai investor ended up buying 1.69 million of the registered shares as BMP did not match Nawaplastic’s target price. BMP manufactures and trades civil and industrial products made of plastic and rubber. The company also designs, manufactures, and trades in plastic moulds for the casting industry; … [Read more...] about BUSINESS IN BRIEF 19/6
BUSINESS IN BRIEF 15/6
Commercial banks to support WB projects Sai Gon-Ha Noi Bank (SHB) and Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) have been assigned to support projects signed between Viet Nam and the World Bank. The decisions were issued by the State Bank of Viet Nam (SBV). Accordingly, SHB will support the project "Medium Urban Development" - Financing Agreement for Additional Financing Credit 6070-VN and Financing Credit Code 6071-VN, signed on December 15, 2017. In addition to this, SBV also assigned Techcombank to serve “Sustainable development of Da Nang City” - Financing Agreement for Additional Financing Credit 6032-VN, signed on September 29, 2017. The general directors of SHB and Techcomback are responsible for implementing the provisions of Decree 16/2016 /ND-CP dated March 16, 2016, of the government on the management and use of official development assistance (ODA) and preferential loans of foreign donors, guiding documents of the … [Read more...] about BUSINESS IN BRIEF 15/6
Cross border data flows: how to approach the digital economy
Digital transformation is now an inevitable trend in developing and developed countries alike. Lim May Ann, executive director of the Asia Cloud Computing Association, talked to VIR's Bich Thuy about its recent study on cross-border data flows: a review of regulatory enablers, blockers, and key sectoral opportunities in five Asian economies. Why did you choose India, Indonesia, Japan, the Philippines, and Vietnam for this report? These five countries were selected as a representation of a wide range of policy approaches towards cross-border data flows and the digital economy that are currently being considered by governments around the world. Additionally, these countries are at pivotal points in the development of their digital economy infrastructure, which is clearly affected by their regulatory environments. The Vietnamese legal framework for cross-border data flows is currently considered “not yet open.” How does this affect the participation of international service … [Read more...] about Cross border data flows: how to approach the digital economy
BUSINESS IN BRIEF 15/4
Saigon Co.op to open 50 more convenience stores Saigon Co.op, the country’s leading retailer, will open an extra 50 Cheers in convenience stores in HCMC in partnership with NTUC FairPrice of Singapore this year, said Nguyen Thanh Nhan, general director of Saigon Co.op. At a 2017 review meeting of Saigon Co.op last week, Nhan said Cheers stores would sell household and consumer goods and operate 24/7. In HCMC, there are already two Cheers stores. Besides Cheers, Nhan said this year Saigon Co.op would open 19 more Co.opmart supermarkets, two more Co.opXtra stores, 150 more Co.opSmile shops and at least one more Co.opmart hypermarket in a high-end residential area. To maintain its position as Vietnam’s leading retailer, Saigon Co.op must focus on expanding the retail network, diversifying products and developing logistics, said Nhan. Saigon Co.op is expected to achieve a 10% increase in total revenue. A report released at the meeting showed that in 2017 Saigon Co.op made some … [Read more...] about BUSINESS IN BRIEF 15/4