South Korean giant Lotte Mart’s accumulated losses hit VND800 billion at the end of 2017. VIR’s Bich Ngoc talked with Jeong Seong Won, chief financial officer of Lotte Mart Vietnam, on the company’s development strategy and its views on its losses. In light of your reported VND800 billion ($35.2 million) losses, will Lotte Mart withdraw or at least reduce your investments in Vietnam? No, we will not withdraw or reduce investment capital. Lotte Mart is committed to long-term investment in Vietnam, so there will be no backing down. We anticipated difficulties in the initial stage of investment, however, with the strong potential of the parent company in South Korea, we will continue to develop, invest, and do business in Vietnam. All issues so far have been calculated into the long-term investment plan of Lotte Mart in Vietnam. Lotte Mart in District 7 of Ho Chi Minh City. Photo: Le Toan We heard that Lotte Mart has reduced its investment capital in China. … [Read more...] about Lotte Mart does not falter in the face of “planned” heavy losses
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While GIC Private Limited cut its losses in Vinasun last week, Ho Chi Minh City Securities Corporation (HSC) spends around VND100 billion ($4.4 million) becoming the third largest shareholder of Vinasun. 2018 is the fourth consecutive year that Vinasun approves lower business targets HSC has just announced buying 7.2 million shares of Vietnam Sun Corporation (Vinasun, code: VNS), equalling 10.61 per cent. It held only 8 VNS shares before. The transaction took place on May 25, when GIC Private Limited sold a total of 5.4 million VNS shares on the Ho Chi Minh City Stock Exchange (HSX). This Singaporean investment fund fully divested Vinasun at only 40 per cent of the original purchasing price, losing approximately VND120 billion ($5.3 million) in four years. At the average price of VND14,000 apiece, HSC is estimated to spend over VND100 billion ($4.4 million) becoming a large shareholder of Vinasun. After this “low-cost” transaction, HSC became the third largest … [Read more...] about What does HSC expect from loss making Vinasun?
Joint winner of the 2004 Nobel prize in Economics, Prof. Finn Kydland.(Source: VNA) Hanoi (VNA) - Joint winner of the 2004 Nobel prize in Economics, Prof. Finn Kydland, spoke to Viet Nam News about the Vietnamese economy and growth on the sidelines of the 2018 Recontres du Vietnam – a development initiative that has brought world-renowned scientists to Vietnam for discussions since 1993. Q: What are your impressions of Vietnam’s economic growth in recent years? A: About two years ago I read on Viet Nam News (I think) about the willingness of the Vietnamese Government to let foreign companies set up shop in Vietnam, which I think is a good idea in developing economies. In the initial stages, typically an economy doesn’t have all the skills needed for growth to get momentum. It’s a good way to be willing or receptive to let foreigners become entrepreneurs in a country like Vietnam and they can help get growth going and Vietnamese can learn from them. Q: What … [Read more...] about GDP not an ideal indicator for growth, says Nobel laureate
Washington and Beijing are going toe-to-toe in a trade spat, and Vietnam is set to become embroiled in the conflict, for better or for worse. The row is likely to deal a blow to export-reliant Vietnam, as its overseas shipments form part of China’s value chain. “If the U.S imposes high tariffs on China’s broader cross-border supply chain, Vietnam, which exports goods that serve as inputs for China’s exports, will be badly hit,” said economist Le Dang Doanh. It’s unclear whether Washington will tax Chinese firms alone or their wider supply networks. About 2.2 percent of Vietnam’ shipments abroad are part of China’s value chain, Bloomberg quoted date from RHB Bank Bhd as saying. Sharing the same opinion, Steven Schwartz, senior director of sovereign ratings for Asia at Fitch Ratings, said South Korea, Taiwan, Vietnam and Malaysia, all of which export goods – such as machine parts and components for communications equipment … [Read more...] about What does Vietnam have to lose or gain from US-China trade war?
VietNamNet Bridge - The government needs to continue its efforts to reform the business environment in order to have more billionaires, experts say. Chair of Hoa Phat Group Tran Dinh Long Four Vietnamese are on Forbes’ 2018 list of the world’s billionaires. These include two familiar names – Pham Nhat Vuong and Nguyen Thi Phuong Thao, and two new names – Tran Ba Duong, chair of Truong Hai Automobile and Tran Dinh Long, chair of Hoa Phat Group. Four Vietnamese are on Forbes’ 2018 list of the world’s billionaires. These include two familiar names – Pham Nhat Vuong and Nguyen Thi Phuong Thao, and two new names – Tran Ba Duong, chair of Truong Hai Automobile and Tran Dinh Long, chair of Hoa Phat Group. Dang Dinh Dao, former head of the Institute for Economic & Development Studies, said the appearance of billionaires reflects the country’s high and stable economic growth in recent years. RELATED NEWS Tran Dinh … [Read more...] about What does Vietnam need to do to produce more billionaires?
Beijing unveiled a hit list that could face duties of up to 25 percent, from fresh fruit to pork and wine, though it stopped short of pulling the trigger as it indicated its readiness to negotiate an agreement. The latest trade action sent stocks diving as fears rise that the US, which accuses China of mass theft of intellectual property and other unfair practices, could provoke a damaging trade war. The Dow Jones Industrial Average plunged more than 700 points, while Hong Kong and Shanghai stocks sank when they opened. "China does not want to fight a trade war, but it is absolutely not afraid of a trade war," the commerce ministry said. Hours earlier, Trump signed an order that also could result in restrictions on Chinese investment in the US, saying it would be the "first of many" trade actions. "We have a tremendous intellectual property theft situation going on," Trump said as he signed the new trade order, which could include duties as high as 25 percent. The action did not … [Read more...] about China threatens US with tariffs, says ’not afraid of trade war’
The Angolan Ambassador to Vietnam has said that his country continues to welcome Vietnamese workers and the country is willing to sign a labour co-operation agreement with Vietnam.João Mamel Bernardo, Angolan Ambassador to Vietnam João Mamel Bernardo made the statement in a recent interview after Nguyen Ngoc Quynh, Director of the Vietnamese Ministry of Labour, Invalid and Social Affairs (MoLISA)'s Overseas Labour Department said that the African country had not agreed to sign labour co-operation agreement with Vietnam in 2010. How have Vietnamese workers contributed to socioeconomic development in Angola? Vietnamese workers have worked in Angola since the 1980s. When Angola was in difficulties, Vietnam sent education and medical experts to the country. We’ve never complained anything about Vietnamese citizens in Angola. For me, Vietnamese workers are very diligent. Vietnamese experts have never left their jobs despite deferred payment or improper … [Read more...] about Ambassador says Angola willing to sign labour agreement with Vietnam
U.S. President Donald Trump took his "America First" message to the world's elite on Friday, telling a summit of business and political leaders that the United States would "no longer turn a blind eye" to what he described as unfair trade practices. Trump became the first sitting U.S. President to address the annual conclave of the rich and powerful at the Swiss ski resort of Davos for 18 years, closing the summit with a mostly upbeat speech that declared the United States "open for business". "Now is the best time to bring your money, your jobs, your businesses to America," he said, singling out tax cuts and curbs to regulation as boosting the investment climate. "The world is witnessing the resurgence of a strong and prosperous America." He said he would always promote "America First", as he expected other world leaders to do on behalf of their own countries, but added: "America First does not mean America alone. When the United States grows so does the world." But he swiftly … [Read more...] about Trump warns Davos on unfair trade, says U.S. ‘open for business’
It was a cold winter night and the stray dogs were barking endlessly. It wasn't unusual for the dogs in this rural village on the outskirts of Saigon to be noisy, but there was something about their tone that night that prompted a guard to go and check. He flashed his torch at the window of a nearby orphanage and spotted a small plastic basket. Inside was a screaming baby, a little bit bigger than an ear of corn and wrapped in an old towel. The umbilical cord was still hanging from her belly, and she was bruised, wrinkled and cold. The watchful guard quickly woke the staff inside the house, and they attempted to warm the tiny baby up by hugging and massaging her, but to no avail. Eventually, they had to drive the baby more than 20 kilometers (12.4 miles) to a major hospital, where she was treated for pneumonia. She’s a healthy two-year-old now, and lives with more than 60 other children who have been left at the orphanage over the past seven years. The orphanage is named … [Read more...] about At Saigon orphanage, babies are left with no names and lots of questions
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