Vietnam’s e-commerce websites are still receiving heavy investment to develop despite big losses, but when will these projects stop losing? The Vietnamese e-commerce market is one of the leading markets in the region for investment. According to Nielsen, the annual growth speed of the e-commerce market is 22% and is expected to hit US$10 billion in annual revenue by 2022 from the current US$4 billion. The Vietnamese e-commerce market shows huge potential for development and receives great attention from new investors. In a recent report by Topica Founder Institute, e-commerce attracted US$83 million of foreign investment through 21 deals. Startup SEA (used to be Garena, which was termed as a unicorn in Asia), ranked first among investors pouring capital into Vietnamese startups in 2017. SEA spent US$64 million acquiring 82% of the shares in Foody, a food delivery website and app. CyberAgent Ventures, a Japanese venture investment fund, continues its activities in Vietnam. In … [Read more...] about When will Vietnam’s e-commerce players stop “burning money”?
When will money market rates increase
Viet Nam News “Everyone, I will sell rose bouquets tomorrow in celebration of International Women’s Day. Those who are looking to give flowers to their girlfriends or classmates, please come to support me in front of Gate A of Hải Phòng University.” So wrote 26-year-old Trần Thị Hoa in one of her last Facebook posts on March 6. Early on the morning of March 7, Hoa and her friend Trần Thị Trang rode on motorbike to the flower market Đằng Hải in Hải An District in the northeastern port city of Hải Phòng. Not born to wealthy families, the pair intended to buy flowers and utilise their craft skills to make elaborate bouquets, aiming to make some money to cover their study and living expenses. On that fateful morning, Cao Huy Hoàng was driving a container truck for an export-import company along his usual route. Stopped at a red light, he saw that two trucks ahead of him were already occupying … [Read more...] about Road accidents: When will the pain end?
High fees, countless inactive cards Data from the State Bank of Vietnam shows that the total number of cards issued as of the end of June was 106 million, which means some of the 90 million Vietnamese people possess more than one card. Such a high figure is the result of a race between banks to boost their card issuance in recent years. In 2010 the number of cards stood at 31 million, but it has more than tripled in five years. Along with an increase in card numbers, payments made through cards have also seen continuous growth. Data from the Vietnam Bank Card Association shows that in 2011 payments made by card reached VND895 trillion (over US$39 billion) and jumped 88% in four years to nearly VND1,700 trillion (US$74.8 billion). The number of cash machines and payment terminals also respectively increased by 23% and 181% compared with 2011 to 16,573 and 217,470 devices as of early 2016. But according to official estimates, just above 20 million out of Vietnam’s population of 90 … [Read more...] about Bank cards: When will quality match quantity?
VietNamNet Bridge – The National Finance Supervision Council has reassured the public by affirming that there will be no need to adjust the exchange rate further until the end of the year. The most important message the head of the National Finance Supervision Council Le Duc Thuy and his deputy head Le Xuan Nghia released at a recent workshop discussing the macro economy and the management of monetary policies was that the interest rate and the exchange rate will be stabilized this year. Interest rates will go down from Q3 Thuy, who once worked as the Governor of the State Bank of Vietnam for many years, believed that if the measures to curb inflation initiated by the government will be followed strictly and this will soon bring the desired effects. There are many reasons for the high inflation rate, but the central bank must take the main responsibility for fighting inflation. Stabilizing the dong is one of the main functions of the … [Read more...] about Economists say interest rates, exchange rate will be stabilized
VietNamNet Bridge - Samsung Securities and Caldera Pacific will become the second largest investor when they acquire a 40 percent stake in Dragon Capital fund management company. According to an MPI (Ministry of Planning and Investment) report, there were 3,374 stake purchases and capital contribution deals made by foreign investors by the end of August, worth $3.5 billion, an increase of 101.3 percent compared with the same period last year. Japan, Singapore and South Korea are three of the biggest foreign investors in Vietnam. While the Japanese are well known for the portfolio investments in Vietnamese businesses (Bank of Tokyo-Mitsubishi UFJ holds a 20 percent stake in VietinBank, Mizuho holds a 15 percent stake in Vietcombank and ANA a 8.7 percent stake in Vietnam Airlines), Singapore and South Korea are known for direct investment projects. These include Samsung’s electronics and smartphone manufacturing projects and the five VSIP industrial zones developed by … [Read more...] about Is there a new South Korean investment wave in the stock market?