They have been prompted to do so by the government’s firm stance on boosting domestic production and the placing of stricter import controls via Decree 116 issued last October. The auto industry, including supporting industries, has accounted for the lion’s share of the foreign direct investment in the manufacturing sector in the first seven months of this year, according to the General Statistics Office (GSO). Newly-registered FDI and expanded capital of existing projects flowing into manufacturing during this period amounted to $8.43 billion, or 46.4 percent of the total, the GSO said. In terms of equity acquisitions, $1.2 billion came into the auto manufacturing, predominantly ($1.1 billion) for the repair, maintenance and servicing of motor vehicles, motorcycles and other vehicles. The auto industry has attracted new entrants to the market, registering their investment plans. Pyeong Hwa Automotive Co., Ltd of South Korea, in June, got a license to build a $16.7 million … [Read more...] about Foreign-invested auto firms make a U-turn in Vietnam
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The Association of Vietnam Retailers says that there has been an exponential increase in the number of people ordering food online in Hanoi and HCMC in the last few years, and it is foreign firms that are cashing in on delivering it. The food delivery market is now dominated by Delivery Now, and Vietnammm.com. Delivery Now is a product of Foody Corporation, once a Vietnamese food service startup that was acquired by Singapore-based internet firm Sea LTD last year, while Vietnammm.com is a subsidiary of Takeaway.com, one of the world’s largest online food ordering websites based in the Netherlands. Invested in by Ho Chi Minh City-based Scommerce Group, an information technology and services firm, Lala is considered a rising star in food delivery sector by industry insiders, having the advantage of hi-tech knowhow from its parent firm. Lala connects its users directly with restaurants before its shippers from Ahamove, also a child of Scommerce Group, delivers food. Delivery Now has … [Read more...] about Will Vietnamese firms miss the food delivery bus?
Vietnam’s e-commerce sector grew by more than 25 percent last year and can maintain this growth rate in the next two or three years, according to the Vietnam E-Commerce Association (VECOM). It says online sales is set to hit $10 billion by 2020, accounting for five percent of the country’s total retail sales. Yet the four top firms that have built up the nation’s e-commerce so far, Lazada, Tiki, Shoppee and Sendo, have repeatedly reported accumulated losses. Market observers explain that in a “primitive market with high growth rates,” top companies are not afraid to accumulate losses in order to entrench themselves in positions of strength by focusing on expanding their market share at “at all costs.” Singapore-based Lazada entered Vietnam in 2012 when it was still owned by Germany's Rocket Internet. In April 2016, China’s Alibaba Group Holding Ltd bought a controlling stake in Lazada for about $1 billion to support its expansion plans in … [Read more...] about E-commerce booms in Vietnam but top firms stay in the red
US President Donald Trump on Wednesday (Jun 27) said he supported tougher restrictions on foreign investment in sensitive technology, as well as export controls on those goods, but he stopped short of imposing specific restrictions on China. US President Donald Trump seeks to protect "critical technology". (Photo: AFP/Nicholas Kamm) Following a report that raised "very serious issues" on China's trade and investment practices, Trump decided a plan in Congress to enhance the powers of the so-called Committee on Foreign Investment in the United States (CFIUS) was "the best approach to protect critical technology." In a statement, Trump said that if Congress fails to pass strong enough legislation to protect "the crown jewels of American technology and intellectual property" then he will take further action. After a year-long investigation into China's trade policies, the White House on May 29 said it planned to announce "specific investment restrictions and enhanced export … [Read more...] about White House favors tougher foreign investment oversight
Bui Mai Phuong is an avid online shopper, ordering anything from clothing to personal-care products from her smartphone. But she prefers to pay with cash. She is among hundreds of millions of people whom firms such as Softbank Group-backed Grab and China’s Tencent want to win over as they try to tap into Southeast Asia’s burgeoning internet sector. More than 70 percent of the region’s 600 million-plus people do not use banks - higher than the global average of about 30 percent - and e-commerce is projected to hit $88 billion by 2025. But convincing consumers like Phuong, who lives in Hanoi, could be tricky. “I have never tried using mobile payments because I don’t know how to use it and it seems a bit complicated to use,” said Phuong, 36, a manager at a construction material supplier in Vietnam. Mobile payments are ubiquitous in China; a consumer can spend a day without using cash at all in Beijing or Shanghai, and even some beggars accept mobile … [Read more...] about Mobile payment firms struggle to dethrone cash in Southeast Asia