Launching new ventures

New technology unicorns According to the Vietnam Innovation and Tech Investment Report 2021, venture investment totaled US$1.4 billion, four times that of 2020 and 60 percent more than the 2019 record of US$874 million. E-commerce and payment led the list with US$469 million and US$450 million respectively. The total number of transactions also increased significantly to reach 165 deals, up 57 percent compared to 2020. Last year also marked the appearance of two new technology unicorns - Momo (valued at nearly US$2 billion) and Sky Mavis (nearly US$3 billion), bringing the total number of unicorns in Vietnam to four. “This success affirms Vietnam's position as an emerging technology hub of the region,” stressed the report issued by the venture capital firm (Do Ventures Vietnam) and the Vietnam National Innovation Center (NIC). MoMo was one of two new technology unicorns in 2021 The total number of investment funds participating in Vietnam in 2021 grew 60 percent, … [Read more...] about Venture capital into innovative start-ups surges despite pandemic

Vegetarian food Smiling Mushroom's customers are urban, high-income consumers, 85 percent of them women. The company has launched distinctive products, such as plant-based meat and food made from mushroom protein, targeting 20-55 vegetarians and dieters concerned about their health and the environment. Emmay’s distribution strategy is both B2B and B2C, via both online and offline channels. So far, the company has established 230 retail points, seven distributors and compiled 800 end-consumers data. A product of the Emmay and Colleagues JSC Its products are currently distributed at big supermarkets, such as Aeon Mall, Saigon Coop or BigC, and at about 200 clean food outlets. Eighty percent of the company’s revenue is derived from wholesale distributors and supermarkets. According to Smiling Mushroom CEO, the brand is still in the early stages of food substitutes for animal meat, making it 50 to 70 percent more expensive than animal meat. For example, a 200-gram bag … [Read more...] about Startup sales mushroom as they adapt to ensure survival

Consumers buy products at a former export-only enterprise that has switched to also selling domestically. — Photo nld.com.vn HCM CITY — Vietnamese are tending to consume foods of clear origin and high quality after the COVID-19 pandemic, causing many export-oriented food brands to turn their attention to the domestic market. The market with a population of nearly 100 million is in fact attracting both foreign and local food companies. Phan Minh Thông, general director of Phúc Sinh Company, which has been exporting pepper, coffee and farm produce for the last 20 years, said Việt Nam is a very large market for coffee products. His company exports 65,000-70,000 tonnes of coffee products a year, whereas domestic sales account for less than 1 per cent of that. Phúc Sinh would focus more on promoting its Blue Sơn La Coffee brand in the domestic market, he added. Việt Nam may be the world’s second largest coffee exporter, but Vietnamese have to drink coffee mixed with other … [Read more...] about Food exporters turn focus to domestic market

Thao Nguyen - Senior investment manager Ascend Vietnam Ventures Social commerce, a subset of e-commerce that refers to the process of buying and selling goods or services directly within social media platforms, is not new. In Vietnam, long before traditional e-commerce established a foothold with tech-savvy consumers, such activities largely took place on major social media platforms. Serving both big-city shoppers and the majority of the population who live outside of core urban centres, social commerce made up about 65 per cent of Vietnam’s $22 billion e-commerce in 2020, presenting the highest rate in Southeast Asia, according to Bain & Co. Within the last two years, we have been seeing a new wave of startups emerging in this sector and beginning to harness the untapped potential of Vietnam’s social commerce playing field. Some of those have attracted almost $14 million in funding in Q1 this year. Compared to the regional rate of 44 per cent, Vietnam’s social commerce … [Read more...] about Vietnam poised for the next level of social commerce via innovative startups

Gold is yet again becoming a safe haven asset, and some customers want more ways to get involved, Le Toan The World Gold Council (WGC) believes that the appetite for gold is often hampered by the interest rate, as when interest rates rise, gold loses its appeal. However, inflation is also a tailwind to gold demand as a common safe-haven asset. The USD tends to weaken when the Fed raises interest rates, which enhances gold’s demand. “Furthermore, what happens in China’s consumer market has had a big impact as it’s the world’s largest consumer market for gold. We expect China to start to emerge from the worst of the pandemic and that will support consumer demand,” the WGC noted last week. “It is difficult to predict how the geopolitical situation will play out. It depends on where inflation goes, but inflation is certainly the biggest driver at the moment, which will probably support institutional investment demand in the next quarter.” Meanwhile, the demand for gold in Vietnam … [Read more...] about Gold appeal sparkles amid rise of inflation

A panel discussion at the conference on strengthening ‘Public-Private Partnership for sustainable healthcare transformation’ in Hanoi on May 18. (Photo: VNA) Opening the event, the newspaper's editor-in-chief Le Trong Minh said that Vietnam's health sector faced many challenges, such as increasing infectious and non-communicable diseases, hospital overcrowding, shortage of supplies and equipment, the ageing population as well as the disparity between regions and healthcare levels in terms of quality of medical services and standardisation of modern equipment. “For the health system to be capable and always ready to respond to future situations, towards a comprehensive and sustainable health care system, it is necessary to have new investment orientations in social resources for the health system, as well as stronger cooperation from the parties involved, including the Public-Private Partnership (PPP) method,” said Minh. At the event, MPI deputy minister Tran Duy Dong said it … [Read more...] about Conference discusses Public-Private Partnerships in healthcare

Ambassador Luong Thanh Nghi and DAVIFO President Trine Glue Doan (Photo: VNA) Hanoi (VNA) – Ambassador Luong Thanh Nghi has suggested the Vietnamese Embassy in Denmark and the Denmark-Vietnam Friendship Association (DAVIFO) coordinate with relevant agencies in organising forums for young people of the two countries to serve as nucleus for their bilateral ties. The two sides should join hands in launching activities like cuisine festivals, photo exhibitions and dialogues between prestigious writers and artists, and audiences to promote the Vietnamese and Danish cultures, he said at a meeting with DAVIFO President Trine Glue Doan on May 17. The diplomat noted with pleasure the close coordination between DAVIFO and the Vietnam-Denmark Friendship Association under the Vietnam Union of Friendship Organisations (VUFO), with practical activities held in Hanoi, Da Nang, Ho Chi Minh City and other Vietnamese localities. Vietnam always pays attention to improving living … [Read more...] about Vietnam, Denmark forge people-to-people exchange

An overview of the event to launch the report (Photo: WB) Hanoi (VNA) - For Vietnam to realise its aspiration for reaching high income status by 2045, the country will need to shift its economic growth model and sharply improve the government’s capacity to coordinate and implement economic policy reforms and public investments, a World Bank Group report says. The World Bank Group ’s Systematic Country Diagnostic Update , entitled "How Will Vietnam Blossom? Reforming Institutions for Effective Implementation”, emphasises that Vietnam's traditional growth model faces major challenges from the COVID-19 pandemic, slowing globalisation, and the country’s increasing vulnerability to external shocks, especially climate risks. After identifying a series of policy responses and reform priorities, many of which are not new, the report argues that adapting institutions will be the key to success. Vietnam’s GDP per capita has increased five fold over the past three … [Read more...] about Vietnam should shift economic growth model for further development: WB report

"Even in the very tough environment we are seeing, our employees have maintained a high quality and reliable service for our customers and this is helping us deliver stellar performance year after year," said Jens Lottner, CEO of Techcombank. Last year, the bank continued to reduce costs while focusing on building deposits in its current accounts and savings accounts (CASA), which Lottner described as a "stable and cheap" source of funding. Techcombank’s CASA ratio, which reflects the percentage of the bank’s total deposits that are CASA, jumped from 46.1 percent in 2020 to 50.5 percent last year, on its way to the bank’s target of 55 percent by 2025. Techcombank’s net interest margin (NIM), a measure of the difference between the interest received by the bank and the amount paid out to lenders, also increased 69 basis points to 5.6 percent during the year. "Together, these improving metrics, along with our effective cost management, translated into an excellent profit before tax … [Read more...] about Techcombank eyes seat at top Southeast Asian banking table

Pham Viet Tuan-Associate, Indochine Counsel Many of the negative risks arise because of the complicated Vietnamese land laws, which prevent not only foreign investors but also local developers from developing projects. This article will give some hints on how they could properly tackle issues related to land in property project development through the contribution of land. In the Vietnamese real estate market, it is common for a property developer to have land but not the budget or experience/resources needed to develop the project. In this case, such developers might seek other ways to conduct their business plan. Some solutions may be to secure a loan facility from a bank; to cooperate with other developers who have experience/resources in the project development; or to call for financial aid from funds, and foreign/local investors or to issue bonds in the capital market. Each solution has its pros and cons. From a foreign perspective, project land is essential to project … [Read more...] about Making better decisions in real estate