Experts say there are several challenges: intense competition from the increasing number of domestic and foreign food companies, high prices (a burger goes for "four times a bowl of Pho"), and the fact that hamburgers and French fries are just not for Vietnamese people. Below are some major chains and their progress in Vietnam compared to other markets in Asia. Burger King Burger King has closed five restaurants in Ho Chi Minh City, Hanoi, and Danang in recent years, citing sub-optimal location, according to news reports, despite an ambitious US$40-million investment plan upon its entry in 2012. At the time, Burger King expected to open 60 restaurants nationwide, as consumers were excited to try the famous hamburger from the west. However, five years later, the fast food chain has only reached a quarter of this target with 15 restaurants: seven in … [Read more...]

Vietnam’s Ministry of Transport has demanded that Uber and Grab remove special features allowing passengers to share rides and split the costs with others. The ruling was made nearly two months after Grab Vietnam introduced its GrabShare service to local users in early May, while Uber Vietnam announced intentions to launch a similar service, UberPool, in the Southeast Asian country. GrabShare and UberPool both allow one passenger to share their ride and split the cost with another rider headed in the same direction. Grab launched GrabShare in Vietnam on May 9, claiming that the feature can help passengers save up to 30 percent on their ride. When Tuoi Tre News checked the Grab app on June 29, the feature was still available in the “ride type” options. In a dispatch sent to Grab Vietnam and Uber Vietnam, the transport ministry said the fare-splitting option is a violation of current legal … [Read more...]

Apple Inc's iPhone turns 10 this week, evoking memories of a rocky start for the device that ended up doing most to start the smartphone revolution and stirring interest in where it will go from here. FILE PHOTO - A salesman checks a customer's iPhone at a mobile phone store in New Delhi, India, July 27, 2016.  Apple has sold more than 1 billion iPhones since June 29, 2007, but the first iPhone, which launched without an App Store and was restricted to the AT&T Inc network (T.N), was limited compared to today's version. After sluggish initial sales, Apple slashed the price to spur holiday sales that year. "The business model for year one of the iPhone was a disaster," Tony Fadell, one of the Apple developers of the device, told Reuters in an interview on Wednesday. "We pivoted and figured it out in year two." The very concept of the iPhone … [Read more...]

There were 61,276 newly-established enterprises in Vietnam in the first half of this year with total capital of VND596.196 trillion ($26.22 billion), according to the Ministry of Planning and Investment (MPI). Numbers up 12.4% and capital up 39.4% year-on-year in first half. Numbers were up 12.4 per cent year-on-year while capital was up 39.4 per cent. Average capital was VND9.7 billion ($42,600), a 24.3 per cent increase year-on-year. There were also 18,100 enterprises adding capital in the first half, totaling VND859.186 trillion ($37.7 billion), for new and additional capital of some VND1,455 trillion ($64 billion). MPI’s figures also reveal that the number of newly-established enterprises and capital grew each year in the first half from 2013 to 2017.  The number of newly-established enterprises in the first half of 2017 increased 1.5-fold compared to the first half of 2013.  Registered … [Read more...]

Vietnam continues to slowly but steadily develop and will be Asia-Pacific’s next emerging market over the next five to ten years, according to the latest report from Cushman & Wakefield entitled “Betting on Asia Pacific’s Next Core Cities”. Cushman & Wakefield's "Betting on Asia Pacific's Next Core Cities" report tags Vietnam as next emerging market in region. Cushman & Wakefield selected the next core and emerging markets in the region that will remain relevant and dominant over the next five to ten years. As an emerging market, Vietnam displays many of the characteristics of its Asia-Pacific neighbors but perhaps is not as well understood.  Factors such as legal titles in the form of 50-year land leases granted by the State, a regulatory and tax environment that facilitates the placement of foreign capital, a real estate market cycle that is now at a stage of controlled … [Read more...]

A computer virus wreaked havoc on firms around the globe on Wednesday as it spread to more than 60 countries, disrupting ports from Mumbai to Los Angeles and halting work at a chocolate factory in Australia. Customers queue in 'Rost' supermarket in Kharkiv, Ukraine June 27, 2017 in this picture obtained from social media. Risk-modeling firm Cyence said economic losses from this week's attack and one last month from a virus dubbed WannaCry would likely total $8 billion. That estimate highlights the steep tolls businesses around the globe face from growth in cyber attacks that knock critical computer networks offline. "When systems are down and can't generate revenue, that really gets the attention of executives and board members," said George Kurtz, chief executive of security software maker CrowdStrike. "This has heightened awareness of the need for … [Read more...]

NDO – A national videoconference was held in Hanoi on June 29 to promote a thorough understanding of the resolutions of the fifth plenum of the 12th Party Central Committee (PCC) among senior officials nationwide. The conference focused on disseminating three resolutions on economics, including the resolution on developing the private economic sector into an important motivation of the socialist-oriented market economy; the resolution on continually restructuring, reforming and enhancing the operational efficiency of State-owned enterprises (SOEs) and the resolution on finalsing socialist-oriented market economy institutions. Addressing the event, Prime Minister Nguyen Xuan Phuc stressed the significance of thorough perception, clear mindset, strong determination, relevant methods and drastic actions in the effective implementation of the PCC’s resolutions. He emphasised that the core contents of these resolutions are big innovative orientations on the … [Read more...]

President Tran Dai Quang met with members of the Russia-Vietnam Friendship Association and the Russia Union of Veterans who formely worked in Vietnam in Moscow on late June 28. President Tran Dai Quang (fifth, left) and his spouse (fourth, left) meet with members of the Russia-Vietnam Friendship Association and the Russia Union of Veterans who formely worked in Vietnam on June 28 Speaking at the Hanoi-Moscow multifunctional complex, President Quang, who is on an official visit to Russia, said he was happy to meet Russian war veterans who devoted their youth to the protection of their nation and the struggle for the independence and freedom of Vietnam. The Vietnamese people remember the enormous support that Russia has given to their national liberation and development efforts, he noted. Despite numerous difficulties over nearly seven decades, the friendship between the two countries’ people remains warm and is … [Read more...]

Vietnam Report has announced the top 10 commercial banks in Viet Nam in 2017, based on an evaluation of reputation, financial capacity and growth potential in the 2016-17 period. The top 10 banks all have bad debt ratio of below 3 per cent in the first quarter of this year.  The top 10 banks all have bad debt ratio of below 3 per cent in the first quarter of this year. However, Vietnam Report said more drastic measures needed to be taken to thoroughly handle bad debts in line with the credit growth target. A survey by Viet Nam Report carried out in May showed that there were three factors affecting the reputation of a bank - customers’ evaluation about service and product quality, evaluation by the media and business results. Vietnam Report said commercial banks were now paying more attention to customer experience rather than just focusing on expanding scale. Meanwhile, customers were more concerned … [Read more...]

High import taxes on auto components and parts, packaging and logistics expenses are major reasons behind locally-assembled cars costing 10-20 per cent higher than imports from Thailand and Indonesia. A corner of Vina Mazda factory in Tam Hiep Industrial Park in the central province of Quang Nam. It’s designed to produce and assemble 25,000 units per year.  As such, these are also factors hindering growth of the domestic automobile industry, the automobile working group said at the Vietnam Business Forum (VBF) 2017 recently. At the forum, a meeting between the Vietnamese Government and the business community held in Ha Noi, the group said higher prices made local automakers less competitive than imports from ASEAN members, and the situation will worsen when import taxes drop to zero per cent in the region next year. Sumito Ishii, general director of General Motors Viet Nam and head of the VBF automobile … [Read more...]

Agricultural productivity and quality should be increased by investing more in innovation and strengthening links between all stakeholders, including farmers, enterprises and research institutes, experts say. The MARD has granted licenses to 26 hi-tech firms while Thai Nguyen, Thanh Hoa and Lam Dong provinces have devised plans to establish hi-tech agricultural zones.  At a seminar held in Ha Noi on Tuesday, they also said that access to land, capital and markets were factors hindering hi-tech agriculture. Cao Duc Phat, permanent deputy head of the Party Central Committee’s Economic Commission, said that the agriculture sector had grown strongly in the 2011-15 period, with improved farm produce quality and increasing number of agriculture enterprises. He said that in 2013, the Government approved a restructuring master plan for the agriculture sector, oriented primarily towards value addition. One of the … [Read more...]

VietNamNet Bridge – The number of crimes dropped by nearly four per cent in the first six months of the year in comparison with the same period last year, reported the Ministry of Public Security at a press briefing in Ha Noi yesterday. Drugs confiscated by Nam Định Province Police after a drug raid of a home in Yen Tien Commune, Y Yen District last April.  Police investigated 20,595 cases involving more than 42,700 suspects in the period. This included 9,391 cases relating to economy and corruption, more than 2,000 cases of smuggling and more than 11,000 cases relating to drugs. The ministry also claimed traffic safety and order was secure in the period, despite more than 4,100 deaths on the roads. The fatalities came from more than 9,500 traffic accidents nationwide, with 7,900 people … [Read more...]

VietNamNet Bridge – A salary “bubble” is forming in the IT sector, posing challenges to employers, a workshop heard in HCM City yesterday. A JAVA programming class at Ha Noi’s FPT University.  Startups had hired these people at salaries many times higher than the industry standards, creating a salary bubble, according to Nguyen Phuong Mai, managing director of Navigos Search, a leading executive search and management consultancy company. “The fourth industrial revolution is inspiring IT startups, pushing up human resources demand and salaries,” Mai said. Start-ups need many employees to develop their business, and to attract human resources they offer “too high” salaries, according to Mai. The salaries of 20-25 per cent of IT specialists are higher than that … [Read more...]

President Tran Dai Quang (fifth, left) and his spouse (fourth, left) meet with members of the Russia-Vietnam Friendship Association and the Russia Union of Veterans who formely worked in Vietnam on June 28 (Photo: VNA) Moscow (VNA) – President Tran Dai Quang met with members of the Russia-Vietnam Friendship Association and the Russia Union of Veterans who formely worked in Vietnam in Moscow on late June 28. Speaking at the Hanoi-Moscow multifunctional complex, President Quang, who is on an official visit to Russia, said he was happy to meet Russian war veterans who devoted their youth to the protection of their nation and the struggle for the independence and freedom of Vietnam. The Vietnamese people remember the enormous support that Russia has given to their national liberation and development efforts, he noted. Despite numerous difficulties over nearly seven decades, the … [Read more...]

HCM City Party Committee Secretary Nguyen Thien Nhan has urged the city to focus on the role of the private sector and continue to improve competitiveness and administrative reform at a meeting of the 10th HCM City Party Committee on Tuesday. — Photo hochiminhcity.gov.vn HCM City Party Committee Secretary Nguyen Thien Nhan has urged the city to focus on the role of the private sector and continue to improve competitiveness and administrative reform. Nhan was speaking at a meeting of the 10th HCM City Party Committee on Tuesday. The two-day meeting discussed the city’s development in the first half of the year as well as key solutions for tasks in the second half. The meeting also discussed the medium-term public investment plan for the 2016-20 period, as well as results of the five-year implementation of an action programme by the Party Central Committee for infrastructure development. It also … [Read more...]

The Government will offer all possible support to businesses, start-ups and create jobs for workers, Prime Minister Nguyen Xuan Phuc has said. — VNA/VNS Photo The Government will offer all possible support to businesses, start-ups and create jobs for workers, Prime Minister Nguyen Xuan Phuc has said. He made the statement during a working session in Ha Noi yesterday with the Presidium of the Viet Nam General Confederation of Labour (VGCL) to discuss work between the government and VGCL and set tasks for 2017-18. The PM hailed VGCL chapters for improving workers’ lives and dealing with workers’ complaints. The VGCL was asked to join the Government’s mechanism building, with a focus on ensuring rights and interests of workers in the process of building a transparent, constructive and action-oriented government in service of the people and businesses. The VGCL should step up campaigns to … [Read more...]

Bosch, a leading global supplier of technology and services, ended its 2016 fiscal year with $98.9 million in consolidated sales in Vietnam, thus registering a growth of more than 40 per cent. Bosch Group grew by more than 40 per cent in Vietnam RELATED CONTENTS: Germany's Bosch sells subsidiary to China's ZMJ First generation of Bosch apprentices graduates Bosch Remote Portal updated with support for additional devices and services Bosch Security Systems introduces intelligent solutions at Airports Indochina Conference 2017 Bosch Rexroth showcases cutting-edge technology at ProPak Vietnam … [Read more...]

NDO – Six products of military-run telecom group Viettel were honoured at the 2017 IT World Awards held in San Francisco, the US, on June 27. This is the second time a Vietnamese IT product has been honoured with the prestigious award. Among the six products, the ‘Healthcare Ecosystem’ product won the gold prize for the ‘Best IT Products and Services in Healthcare’ category. This is a product of high social significance in the medical field. The product aims to be deployed at 17,000 vaccination establishments and more than 13,000 healthcare establishments. The system helps reduce 29 documents and the waiting time of patients by 50%. Another product of Viettel, vOCS 3.0, was also highly appreciated in the ‘Most Creative IT Service’ category by the organising board. The vOCS 3.0 software is able to manage up to 24 million subscribers/sites, doubling the capacity of the most powerful existing charging system in the world. Moreover, … [Read more...]

The Airports Corporation of Vietnam (ACV) plans a 25 percent year-on-year increase in revenue to 13.3 trillion VND (583.6 million USD) this year. The 2017 Annual General Meeting of Shareholders of the Airports Corporation of Vietnam was held on June 28 in HCM City The corporation released this information at its annual general meeting of shareholders held on June 28. The company also targets pre-tax profits of 3.66 trillion VND, an increase of seven percent over 2016, and expects to pay a dividend of nine percent. The corporation expects to welcome 27 million international passengers in 2017, a surge of 14 percent year-on-year while the number of domestic passengers is projected to reach 64 million, up 12 percent year-on-year. The revenue target does not include income from the operation of airfields. The financial plan released at the meeting does not take into account the effect of exchange rate differences … [Read more...]

Vietnamese and Shandong business executives meet at the Viet Nam-China (Shandong Province) business meeting held in HCM City on June 28. — VNS Photo Executives from 12 companies and business associations in China’s Shandong Province on Wednesday met with more than 50 Vietnamese counterparts in HCM City to discuss the possibilities of collaboration. The visitors specialise in solar energy, farm produce, gantry cranes, small and light lifting equipment, agricultural machinery, vehicle accessories, building materials, CNC cutting machines, food imports and others. Speaking at the meeting, Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry’s HCM City chapter, said trade between Viet Nam and China had grown rapidly in the last few years to US$71.6 billion last year, with China’s exports being worth $49.8 billion. As of last March Chinese companies were the eighth … [Read more...]