By Minh Hy  February 21, 2019 | 12:00 pm GMT+7 VinFast's sedan is seen at the Paris Motor Show in France on October 2, 2018. Photo by VnExpress VinFast, Vietnam’s first indigenous car manufacturer, plans to test its first vehicle for safety parameters in Europe on March 6. According to company executives, the vehicle will be tested for international standards to ensure its highest safety. This announcement came after VinFast’s Hai Phong factory successfully manufactured the first body shell of the Lux A2.0, a sedan, Wednesday. Shaun William Calvert, deputy general director in charge of production, said the first body shell meets the highest quality requirements. VinFast, the car manufacturing unit of Vietnam’s largest private conglomerate Vingroup, showed off its first two car models, a sedan and an SUV, at the Paris Motor Show in France last October just a year after the company’s incorporation, grabbing the attention of the … [Read more...] about VinFast to test its first car for safety in Europe next month
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Spain struggles with spike in migrant arrivals
With police stations and makeshift emergency shelters full, many migrants have been forced to sleep inside a rescue boat docked in Algeciras, or on the pavement beside it AFP/JORGE GUERRERO The 18-year-old Cameroonian says he gets just two meals a day - milk and a biscuit for breakfast and juice and a sandwich for dinner - as he waits to be identified by police and allowed to leave the port, one of Europe's biggest. "As you can see it is difficult. It is so hot," he told AFP on Monday as he pointed to his makeshift bed, which was sheltered from the blazing sun by a Red Cross blanket he had tied between a fence and a concrete road barrier. "I did not expect to stay here for a long time like this. I am shocked. I can't believe it," said Alban, who lived in Morocco for two years before making the crossing to Spain, adding that he had expected a more efficient reception in Europe. He is part of a surge in the number of migrants arriving by sea on Spain's southern shores from North … [Read more...] about Spain struggles with spike in migrant arrivals
More players arriving in ride-hailing business
Uber’s recent exit from Vietnam has prompted many local and regional companies to eye a larger slice of the ride-hailing market in the country. The latest to arrive is FastGo, developed over the last three years and officially launched on June 12 in Hanoi. Mr. Nguyen Huu Tuat, CEO and Founder of FastGo, said the first 500 registered drivers will operate for free. “Those following will be charged a maximum of VND30,000 ($1.30) per day for operating costs, which is much more competitive than Grab,” he said. Mr. Tuat targets launching FastGo in Ho Chi Minh City in July and in Da Nang in August. He will expand to eight large cities and provinces, approaching 5 million customers and 20,000 drivers, in 2019. Its target customer segment is young office workers, who are generally tech-savvy. On the scene The new players in the ride-hailing game have created serious competition, with any monopoly Grab may have held soon disappearing. Aber announced its … [Read more...] about More players arriving in ride-hailing business
BUSINESS IN BRIEF 24/6
Wood exports continue expanding in first months of 2018 An upturn has been seen in exports of wood and wooden products, with export value in the first five months of 2018 reaching 3.3 billion USD, up 8.2 percent from the same period last year. The top four markets were the US, China, Japan and the Republic of Korea (RoK), together accounting for 78.1 percent of total export revenue. Strong growth was seen in the RoK and the US markets, with 45.3 percent and 9.7 percent respectively. In the first four months of 2018, Vietnam earned 1.1 billion USD from exporting wood and wooden products to the US, 367.3 million USD from China, 350.7 million USD from Japan and 288.8 million USD from the RoK. However, Nguyen Quoc Khanh, President of the Handicraft and Wood Industry Association of Ho Chi Minh City, warned that the US, the largest market for Vietnamese wood and wooden products, has prioritised the domestic wood sector by reducing corporate income tax from 35 percent to 25 percent. He … [Read more...] about BUSINESS IN BRIEF 24/6
BUSINESS IN BRIEF 21/6
Digital economy offers SMEs a bright new world of opportunity With the application of digital technologies and e-commerce, small and medium-sized enterprises (SMEs) will be able to compete on a more level playing field with major enterprises when accessing the market. Mr Trinh Duy Hoang, from Vietanalytics Market Research Company said the digital economy has developed rapidly in Vietnam but there remains limited application of digital technologies in small and medium-sized enterprises (SMEs). According to Mr Hoang, digital technologies have become perceived as ‘strange’ by many businesses and there has still only been a small-scale rollout of these technologies in production activities due to high investment costs. From the perspective of Mr Hoang, the biggest hindrance for businesses is the human resource factor. Currently, newly-emerging tech start-ups in Vietnam are mostly SMEs which originate from households. Especially, these businesses have not improved the capacity … [Read more...] about BUSINESS IN BRIEF 21/6
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 28/3
Fate of Ban Phuc Nickel remains murky The fate of Ban Phuc Nickel mine invested by Ban Phuc Nickel Mines Limited Liability Company (BPNM) remains uncertain. A representative of the Son La Department of Industry and Trade told VIR that the mine’s operation has been suspended since October last year. To date, the department has yet to receive any specific plans to resume the mine’s operation from the investor. Previously, in October 2017, BPNM officially decided to suspend the operation of Ban Phuc Nickel mine until September 30, 2018 due to the company’s massive losses. In 2007, Asian Mineral Resources Limited (AMR), a global mining group listed on the bourse in Toronto, Canada, was granted the licence to exploit and process ores in the Ban Phuc nickel ore mine, which has a reserve of more than 200,000 tonnes of nickel and 18,000 tonnes of copper. According to the initial plan, AMR will co-operate with domestic enterprise Son La Mechanical Engineering JSC to establish … [Read more...] about BUSINESS IN BRIEF 28/3
Local, foreign enterprises in fierce debate over Vietnam’s new car import regulations
A new decree issued by Vietnam designed to protect its own developing automotive industry does not comply with international rules, hindering the import of cars into Vietnam, said Toru Kinoshita, chairman of the Vietnam Automobile Manufacturers Association (VAMA) and CEO of Toyota Vietnam. The decree, which took effect on January 1, stipulates that traders are only permitted to import automobiles if they can provide valid vehicle registration certificates issued by authorities from the countries of origin. Original quality control certificates for each vehicle and letters of authorization regarding recalls of defective vehicles from the manufacturers are also required, along with copies of quality assurance certificates provided by the countries of origin. The decree also requires importers to have one car from each batch shipped to Vietnam to go through emissions and safety tests. Under the previous regulation, only one certificate was required for each model of car, … [Read more...] about Local, foreign enterprises in fierce debate over Vietnam’s new car import regulations
BUSINESS IN BRIEF 4/2
ADB helps urban infrastructure development in HCM CityVice Chairman of Ho Chi Minh City People’s Committee Tran Vinh Tuyen on February 1 received Eric Sidgwick, Asian Development Bank (ADB)’s Country Director for Vietnam.At the meeting, the municipal official affirmed that HCM City is committed to implementing cooperation deals with its partners, especially ADB. He added that the Vietnamese Government is revising projects using official development assistance (ODA) to ensure their effective implementation.Regarding the four major projects between HCM City and ADB, Tuyen noted that the city has asked the Ministry of Planning and Investment to allocate funding for the metro line No.2.It also approved the compensation plan for land clearance which the HCM City’s Management Authority for Urban Railway and ADB have agreed on. In addition, HCM City has worked on ADB’s recommendations on the first phase of the metro line No.5.For his part, Sidgwick affirmed to support … [Read more...] about BUSINESS IN BRIEF 4/2
BUSINESS IN BRIEF 9/1
Vingroup, T&T to develop urban railway projects in HanoiThe government of Hanoi City has proposed the Prime Minister allow Vingroup and T&T Group to develop three urban railway projects which the city plans to complete by 2025, Tuoi Tre newspaper reports.The two domestic investors will use their capital to make pre-feasibility studies for these projects.When the projects were announced, many investors expressed interest in Hanoi. However, only Vingroup and T&T Group have registered to take part.Both of them proposed implementing the projects in the build-transfer (BT) format. Particularly, Vingroup registered to build the 38.4-kilometer metro line No. 5 which connects Van Cao and Hoa Lac and metro line No. 2 from Tran Hung Dao to Thuong Dinh with a length of 5.9 kilometers. Meanwhile, T&T Group is keen on metro line No. 4 connecting Me Linh, Sai Dong and Lien Ha, and measuring 54 kilometers in length.The two investors said they would use their own finances to study the … [Read more...] about BUSINESS IN BRIEF 9/1