The HCM City People’s Court on Friday adjourned trial proceedings brought against ride-hailing service Grab by Vinasun taxi company, which has accused Grab of unfair business practices and demanded compensation of VND41.2 billion (US$1.756 million) for losses it has suffered.

The trial, which has been postponed four previous times, would be delayed for one more month, with the next date to be announced soon, the court said. The two parties told the court that they wanted to adjourn to consider the matter further.

Before the trial reopened on Friday, both Vinasun and Grab had submitted requests to delay the trial but a detailed plan for discussion between the two parties was not clear, so the court decided to hold the trial.

“The lawsuit has taken a very long time and we’re both tired. We would like to stop the trial for more discussions with Vinasun to seek a way to work and develop together,” a Grab spokesperson said at the court.

A Vinasun representative said: “Vinasun sued Grab because we would like to have a healthy business environment, but we’ve agreed to have more discussions with Grab.”

Vinasun, once a dominant player in the taxi market in the south, has seen its market share gradually taken away by Uber and Grab since 2016.

About 2,700 of its taxis are idle because of unfair competition, it has said.

Grab, which acquired Uber in Viet Nam earlier this year, continues to grow in popularity as the number of smartphone users in the country has steadily risen.

Vinasun told the court that Grab’s “illegal” operations caused losses of VND41.2 billion in 2016 and 2017 for the traditional taxi company.

Vinasun based its complaint on the Trade Law and the Government Decree 37 issued in 2006 which states that the duration of total promotions in a year must not exceed 90 days and each promotion should not last more than 40 days.

The Vinasun representative said that Grab had exploited the lack of clear regulations for software-based transport services, and had offered “rampant” promotion deals and discounts, including “zero fee” trips, activities that could be described as similar to the dumping of manufactured goods.

According to a survey conducted by market research company Quoc Viet, 74 per cent of Vinasun customers have moved to Grab due to low fares and frequent promotions.

In addition, Vinasun said that it must comply with 13 regulations, but that Grab only has to follow three, creating unfair competition.

At previous trials, Grab had asked for adjournment because Cuu Long Company, which was in charge of assessing losses suffered by Vinasun, was not represented in court.

Grab said that identifying the losses would be important and would affect the entire trial.

According to a report from the Ministry of Finance, in the 2014-17 period Grab announced losses of more than VND1.7 trillion ($74 million) while its registered capital was only VND20 billion ($870,000).

A crowd of drivers from Vinasun and Mai Linh, another well-known taxi company, waited outside the court on Friday, anxious to know the outcome of the trial.

Analysts said that online businesses like Airbnb in Viet Nam could be vulnerable if Grab is eventually penalised. 

The Mekong Delta province of An Giang has attracted 78 projects with total registered capital of VND24.8 trillion (US$1.06 billion) in the first 10 months of the year, a year-on-year increase of 6.85 per cent in the number of projects and 2.97 times in capital, according to the provincial Department of Planning and Investment.

Among the projects, two have foreign investors, with total registered capital of $3.01 million

Ten out of 78 new projects began operation this year.

The province has attracted 211 projects with total registered capital of VND45.35 trillion ($1.9 billion) in 211 projects since the beginning of 2016.

This represents an increase of 1.2 times (or VND24.73 trillion) in investment capital and 20.57 per cent in the number of projects compared to the 2011-15 period

The projects are mainly in agriculture, urban infrastructure, trade services, education, health, culture, sports and tourism.

With an aim to attract resources for development, the province will continue to strongly improve the business investment environment and accelerate administrative reform, according to the department.

As planned, the province will organise an investment promotion conference next month to solicit investment in many projects

According to local authorities, the province will introduce its socio-economic development achievements, strengths, and potential at the conference, and hopes to mobilise resources from domestic and foreign investors for rapid and sustainable growth.

An Giang is located west of the Mekong Delta between the Tien and Hau rivers and shares a 100km border with Cambodia in the northwest.

An Giang is part of the Mekong Delta rice basket. It also has corn and aquatic products such as basa fish, shrimp, and cuttlefish.

An Giang is renowned for its traditional handicrafts such as Tan Chau silk, Chau Doc fish sauce and other consumer products. The ethnic Cham have a long-standing weaving industry.

Ride-hailing app Grab on Thursday announced the launch of its food delivery service, GrabFood, in the central city of Da Nang.

It comes a month after its launch in Ha Noi, the company said.

Customers in Da Nang can now enjoy on-demand transport, parcel delivery and food delivery through a single app.

Grab said soon it would offer promotions for GrabFood orders.

Cashless payment for food delivery via GrabPay by Moca has been beta tested in Hà Nội, and would soon be expanded to all three cities GrabFood currently operates in, it said.

“We are very pleased that within a short period of time, GrabFood has received strong support from consumers, delivery and merchant partners in HCM City and Ha Noi,” Jerry Lim, its Viet Nam country head, said.

“This generated strong motivation for us to launch GrabFood in Da Nang as soon as possible.”

Since its launch in June in the country GrabFood has grown 20-fold.

Outside of Indonesia, Viet Nam is Grab’s fastest growing country for food delivery.

In addition, as a tech company, Grab has the advantage of using data to thoroughly understand the diverse demands and tastes of Vietnamese consumers.

Grab is one of the most frequently used O2O mobile platforms in Southeast Asia. Its app has been downloaded into over 125 million mobile devices. 

HVC listed on HOSE     

More than 20 million shares in HVC Investment and Technology Joint Stock Company were officially listed on the Ho Chi Minh City Stock Exchange on Friday. The shares, coded HVH, will be traded from a starting price of VND15,600 (US$0.66) with a total listing value of VND200 billion ($8.59 million).

Speaking at the ceremony, Tran Huu Dong, the company’s chairman, said HVC’s listing marked an important step in its development process. It also continued to affirm its commitment towards transparency as well as its target of becoming one of the top 500 biggest firms in Viet Nam by 2022.

HVC operates in the field of general contractor for design and installation of high-end entertainment equipment such as swimming pool equipment, ice skating rinks, ocean aquariums and water parks.

Last year, the company saw high growth as its revenue increased from VND225 billion in 2016 to VND242 billion in 2017. Its after-tax profit rose from VND6.4 billion in 2016 to VND15.5 billion in 2017.

HVC has targeted revenue of VND320 billion in 2018, increasing 30 per cent from last year, and after-tax profit of VND32 billion, up 66 per cent.

The listing aims to help HVC improve its financial capacity, enhance transparency and strengthen its brand.

Established in 2010, the company has charter capital of VND200 billion. 

Retail banking boosts sector’s income     

The retail banking segment has contributed significantly to the national bank system’s revenue this year.

At some major banks in Viet Nam, the segment has contributed more than 40 per cent of total revenue.

The information was released during the Viet Nam Retail Banking Forum 2018, themed “Optimising Retail Banking Channels in the Branch Network, Adapting to the Digital Age”, co-organised by the Viet Nam Banks Association (VBA) and IDG Viet Nam from November 28-29 in HCM City.

The event brought together banking, financial experts and leading technology experts to work towards solutions to help bank branches optimise services and attract more customers with the aim of ensuring sustainable development.

In recent years, Vietnamese banks had focused on the retail sector, a step in line with the current development trend and the State Bank of Viet Nam’s policy, VBA general secretary Nguyen Toan Thang told the forum.

Furthermore, with non-cash payments trending along with the appearance of several fintech companies, Vietnamese commercial banks must focus on investing and co-operating on developing modern payment services to ensure safety and convenience for customers, he said.

Ha Huy Tuan, vice chairman of the National Financial Supervisory Commission, said Vietnamese banks regarded the retail banking segment as a vital part of their development strategies.

However, he added there were still issues that needed to be addressed, especially in terms of technology such as data mining and processing, product and services development, and risk analysis and management.

The Fourth Industrial Revolution had made a considerable impact and is anticipated to create opportunities and motivation for Vietnamese banks to improve the retail banking sector, especially enhancing the application of innovative solutions and breakthrough technologies with the aim of leveraging business administration, automating business process and offering seamless experiences for customers, said Can Van Luc, chief economist of the Bank for Investment and Development of Viet Nam.

The development of retail banking must focus on the synchronisation of databases and infrastructure, enabling banks to apply high technologies and catch up with market trends domestically and internationally.

In HCM City, the banking sector had experienced rapid growth over the past decade in terms of expertise, quantity and quality with diversified products and services.

According to Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam’s branch in HCM City, the city has the largest banking network nationwide with over 2,200 transaction points and 49 head offices. From 2008–18, the city’s retail banking market had capital mobilisation growth and outstanding credit growth of 25 per cent and 24 per cent, respectively, higher than the national average, Minh said.

Retail banking is closely associated with consumer lending. In 2008, total outstanding loans for consumer lending accounted for only 3.8 per cent of total outstanding loans, but now it accounts for roughly 19.4 per cent.

However, according to experts, interest rates applied by some financial companies under banks are quite high, posing many risks.

The 6th annual Viet Nam Outstanding Banking Awards 2018 (VOBA) was also held at the forum. The ultimate purpose of the awards is to select and recognise banks reaching significant achievements in driving business growth and contributing to the development of the banking and financial sectors.

HDBank wins Vietnam Outstanding Banking Award for 2018     

Its constant efforts to create innovative and diversified products and services and offer optimal financial solutions have fetched the HCM City Development Joint Stock Commercial Bank (HDBank) the “Vietnam Outstanding Banking Award” for 2018 from IDG Vietnam and the Vietnam Banks Association.

The Việt Nam Outstanding Banking Awards ceremony was held concurrently with the Vietnam Retail Banking Forum in HCM City on November 29.

Given annually since 2012, the awards aim to recognise and honour banks that stand out with excellent performances and make significant contributions to the development of the banking sector and the financial sector in general.

In addition to helping banks look back on their performance, reviewing the quality of their products and services during the year, the award also helps customers find reputable banks.

To HDBank, the Vietnam Outstanding Banking Award once again affirms its position as a leading retail, SME and consumer finance bank.

In recent years HDBank has been outstanding in terms of its vision, strategies and management as shown by its acquisition of DaiABank and SGVF owned by France's Societe Generale Co.

In the five years since its acquisition HD SAISON has grown 10 times to become one of the top three consumer finance companies in Việt Nam, and it boasts high efficiency and the largest network in the country.

After its merger with DaiA Bank, HDBank has continued to enjoy the highest growth rate in the banking sector and provide retail products and services to millions of customers using its eco-system comprising finance-consumer-aviation-retail distribution.

By September 2018 HDBank had 280 transaction points and more than 14,000 financial transaction points nation-wide and had established relationships with more than 400 major financial institutions around the world.

HDBank serves nearly five million individual customers and hundreds of large, medium and small corporate customers.

Customers experience HDBank’s services on the sidelines of the Vietnam Outstanding Banking Award 2018’s awarding ceremony in HCM City on November 29.

Speaking at the awards ceremony, Tu Quoc Anh, director of HDBank’s retail business department, said: “In order to provide optimal financial solutions, HDBank always sets goals and commits to bringing the maximum possible benefits to customers and their eco-systems.

“In addition, HDBank has implemented a strong digital conversion strategy since 2017 and is continuing to accelerate this process, upgrading key applications to automate its operations and processes, reduce costs, enhance the customer experience, and improve its competitiveness to become a top retail bank in the region.”

The bank has won a number of awards in recent years, including for Best Cash Management in the Asia-Pacific in 2018 from Euromoney and Best Managed Company in Asia for two consecutive years from Asiamoney, Best Bank in Vietnam in 2017, and Best Cash Management in Vietnam for five consecutive years until 2016.

It also won the Platinum Award at the 2017 Vision Awards Annual Report Competition organised by the League of American Communications Professionals, and made it to the list of Best Companies to Work for in Asia compiled by HR Asia.

As of September 30 the bank had total assets of nearly VND200 trillion and equity of nearly VND16 trillion.

Its pre-tax profit in the first nine months of 2018 rose by 51 per cent year-on-year to VNĐ2.9 trillion.

Its non-performing loans ratio is only 1.39 per cent and bad debts ratio is 1 per cent, the lowest in the industry.

HDBank is expected to exceed the target of VND3.933 trillion in consolidated profit this year while bad debts continue to be tightly controlled.

Indochina Kajima launches new Wínk hotel

Indochina Kajima Development Company, a real estate development company, held a groundbreaking ceremony in HCM City on November 30 for Wink Hotel, the first of a chain of “affordable luxury” hotels across Viet Nam.

The Wink 75 NBK hotel on 75 Nguyen Binh Khiem Street in District 1 is the first hotel product of Indochina Vanguard Hotels Pte Ltd, a joint venture established in 2016 between Viet Nam-based Indochina Capital Corporation (specialising in real estate, financial services and capital markets), and Singapore-based Vanguard Hotels Pte Ltd.

The 237-room hotel on Nguyen Binh Khiem Street will target business and leisure travellers and offer a luxury experience with a taste of the local culture at an affordable price range, featuring minimalist-style guestrooms equipped with modern technologies and co-working spaces. It will be finished within the first quarter of 2020.

A total of 20 Wink Hotels will be built across Viet Nam in the next five to seven years, and the chain may expand to other countries nearby such as Laos and Cambodia.

Indochina Kajima, a joint venture between Indochina Capital and Kajima Corporation, a leading Japanese construction company, said it would invest more than US$1 billion in Viet Nam over the next 10 years. 

Ha Noi hosts Bytecoin Gala Tech 2018     

Experts, investors and hundreds of technology lovers gathered at the “Bytecoin gala tech 2018” held in Ha Noi on Sunday to discuss and analyse the applicability of blockchain technology in Viet Nam.

The event was organised by Bytecoin Foundation Vietnam, a company specialising in the research and application of blockchain cryptonote, a technology platform for the creation of bitcoin, a type of cryptocurrency.

At the event, experts determined that blockchain could be applied in many fields, including finance, manufacturing, public services, supply chains, education and energy. Blockchain technology will play an important role in building the digital economy and the fourth industrial revolution.

At the event, Bytecoin Foundation Vietnam also introduced Bcnex blockchain trading floor.

“The blockchain trading floor has many features that are different from previous technology products. This is a place for firms to learn and exchange the values ​​of products using blockchain technology in Viet Nam and around the world. The floor also provides supports for blockchain technology-based startups,” said Ngo Hoang Quyen, founder of Bytecoin Foundation Vietnam and CEO of Bcnex.

Blockchain is a continuous series of information blocks using code technology to link and secure safety, thus effectively preventing data modification.

It is designed to resist data changes because information in blockchain can not be altered and can only be if there is consensus of all nodes in systems. 

Vietnam aims to attract more Turkish investors

Vietnamese Ambassador to Turkey Tran Quang Tuyen met more than 10 member enterprises of the Foreign Economic Relations Board of Turkey (DEIK)’s Turkey-Vietnam Business Council as part of his recent working tour to Istanbul. 

The enterprises have invested or plan to invest in Vietnam in energy, construction, trade, exhibition, telecommunications, real estate, interior decoration and medical equipment.

At the meeting, the ambassador thanked the DEIK and its members for their support in promoting economic-trade ties between the two sides, especially in the success of the Vietnam-Turkey Business and Investment Forum in Istanbul during the visit of National Assembly Chairwoman Nguyen Thi Kim Ngan in October this year.

Ambassador Tuyen said that over the past 10 years, trade between the two countries has grown 13 times to nearly 3 billion USD in 2017.

He said cooperation potential between the two sides is high, stressing that the Vietnamese Government always works with foreign investors, including those from Turkey, to facilitate their projects.

He expressed his hope that Turkish firms will visit Vietnam to explore the market, while calling for the businesses’ engagement in areas of Vietnam’s priorities, including infrastructure, agriculture, green energy, public heath, tourism and high technology.

The diplomat pledged that the Vietnamese Embassy in Turkey is always willing to connect Turkish firms with Vietnamese partners and support them in seeking opportunities in Vietnam.

The Turkish firms described Vietnam as a broad and promising market, and a gateway for them to reach Southeast Asian markets.

They expressed their hope to receive more support in applying for visas to Vietnam.

During his stay in Istanbul, Ambassador Tuyen also met with Travelshop, Rep Kaucuk and Turkish Airlines to explore their plans to invest in Vietnam.

Bilal Eksi, Deputy Chairman and CEO of Turkish Airlines said due to rising demand, the firm plans to double the number of flights from Istanbul to Ho Chi Minh City and Hanoi to 14 flights per week after September 2019, and to 28 flights per week in the future.

He showed his desire to sign more cooperation agreements will Vietnamese carrier Vietnam Airlines – a firm with a rising number of routes to European region.

Da Nang city attracts Japanese enterprises

The central city of Da Nang always appreciates the contributions of Japanese enterprises to its socio-economic achievements in 30 years attracting foreign direct investment (FDI) into Vietnam.

The statement was made by Vice Chairman of the Da Nang City People’s Committee Ho Ky Minh at an investment promotion conference held recently in Hanoi.

Minh said they also considered Japan as an important strategic partner for concentrating investment attraction.

By the end of November 2018, Da Nang has attracted 670 FDI projects with total registered capital of 2.88 billion USD. Of which, Japan has invested in 163 projects with a total registered capital of more than 675 million USD and is the country with the largest investment projects in Da Nang.

Japan’s investment projects focus on manufacturing and processing industry as well as information technology and communication.

These projects have created jobs for more than 20,000 local workers, providing advanced management models, modern business methods and having a positive impact on domestic enterprises in terms of technology innovation and product quality.

They have also contributed to increasing export turnover and actively contribute to enhancing the image of Da Nang in the region and also in the world.

“Although the contribution of Japanese FDI enterprises to the development of the city is considerable, the attraction of Japanese FDI to Da Nang is still limited,” Minh added.

The city continues to improve infrastructure, preferential investment policies, actively support existing investors, promote administrative reform as well as build a transparent and favorable investment environment.

Da Nang wants to attract Japanese investors from small and medium enterprises to multinational corporations with advanced finance and technology capabilities to learn about investment environment and opportunities of the city in the fields of precision mechanics, automation, information technology, hi-tech in general and high quality services in line with the planning orientation of the central city in the future, according to the vice chairman.

Speaking at the conference, Hironobu Kitagawa, Chief Representative of the Japan External Trade Organisation (JETRO) said Da Nang City was very potential for investment, however, not many Japanese firms knew about the existence of this central city.

JETRO was trying to promote the investment opportunities to Da Nang for Japanese companies to come here and start their business.

“Da Nang City has significant potential for developing some areas such as information technology, food and beverages, and hotel and resorts,” Kitagawa told Vietnam News.

The event was organised by the People’s Committee in cooperation with JETRO. It drew the participation of more than 100 delegates from the associations and investors from Japan.

Vietnam Business Forum to convene year-end session on Dec. 4: VCCI

The year-end session of the Vietnam Business Forum will convene at Lotte Hanoi Hotel in the capital city on December 4, according to the Vietnam Chamber of Commerce and Industry (VCCI).

The event will be held by the Vietnam Business Forum Alliance in partnership with the Ministry of Planning and Investment, the World Bank, and the International Finance Corporation. It will be chaired by Prime Minister Nguyen Xuan Phuc.

The forum’s three sessions will focus on following topics: resources for infrastructure investment, improving knowledge towards the modern industry, and removing barriers for enterprises. 

Various presentations will be delivered by working groups on infrastructure, electricity and energy, capital market, banking, trade and investment, tax and customs, education, agriculture and tourism. Representatives from the European Chamber of Commerce in Vietnam (EuroCham), the American Chamber of Commerce (AmCham), the Korea Chamber of Business in Vietnam (KorCham), the British Business Group Vietnam and the Japan Business Association in Vietnam (JBAV) will also address the event.

The forum will discuss a range of pressing issues, such as promoting public-private partnership, high-quality financing, enhancing competitiveness and reducing burden of bureaucracy to optimise free trade agreements, tax and customs transparency, and reform of direct power purchase agreements (DPPA).

Vietnam Airlines wins big at World Travel Awards

A plane of Vietnam Airlines (Photo: Vietnam Airlines)

National flag carrier Vietnam Airlines has won the World’s Leading Airline – Premium Economy Class 2018 and the World’s Leading Cultural Airline 2018 titles of the World Travel Awards (WTA).

The awards were presented at the WTA Grand Final Gala Ceremony 2018 recently in Lisbon, Portugal.

This is the third straight year Vietnam Airlines has been honoured by the WTA, the firm said on December 3, noting the prizes were voted on by experts of the World Travel & Tourism Council and passengers from February 1 to October 24.

Vietnam Airlines has offered premium economy class on international flights using Boeing 787-9 and Airbus A350 planes since this year’s beginning, offering larger seats and more conveniences to passengers.

It has also promoted Vietnamese culture through cuisine, the carrier said, adding that it chose Vietnamese-Australian chef Luke Nguyen as its Global Cuisine Ambassador in March. He has created a menu imbued with cultural values of the country’s northern, central and southern regions and taken part in Vietnam Airlines promotion events around the world.

The carrier has also offered seasonal fruits of Vietnam on its flights this year. Luc Ngan lychees and Hung Yen longans were the first to be served.

WTA Founder and President Graham Cooke said Vietnam Airlines has made great strides in improving customer services and upgrading its fleet.

For his part, Deputy Director General of Vietnam Airlines Le Hong Ha said the awards not only affirm the carrier’s quality but are also a driving force for it to improve further.

Veggie exports hit 3.5 billion US in 11 months

Vietnam’s fruit and vegetable export value hit 3.5 billion USD in the first 11 months of 2018, up 11.6 percent year-on-year, said the Agro Processing and Market Development Authority (AgroTrade) under the Ministry of Agriculture and Rural Development (MARD).

China remained the leading market for Vietnam’s fruit and vegetable exports, accounting for 73.8 percent of market share with more than 2.4 billion USD, an increase of 11.3 percent against the same period last year.

A forecast from the MARD said that in 2018, vegetable and fruit export value will grow about 10 percent year-on-year, much lower than last year’s figure of 42.4 percent. 

Many fruits like durian, rambutan and mangosteen will enter harvest period soon, possibly causing declines in the prices of fruits. 

During January-October, Vietnam earned some 3.3 billion USD from vegetable and fruit exports, up 15.5 percent from the same time last year, said AgroTrade. Of the total, 90.3 percent was raw products while processed ones only accounted for 9.7 percent.

Vietnam aims to attract more Turkish investors

Vietnamese Ambassador to Turkey Tran Quang Tuyen met more than 10 member enterprises of the Foreign Economic Relations Board of Turkey (DEIK)’s Turkey-Vietnam Business Council as part of his recent working tour to Istanbul. 

The enterprises have invested or plan to invest in Vietnam in energy, construction, trade, exhibition, telecommunications, real estate, interior decoration and medical equipment.

At the meeting, the ambassador thanked the DEIK and its members for their support in promoting economic-trade ties between the two sides, especially in the success of the Vietnam-Turkey Business and Investment Forum in Istanbul during the visit of National Assembly Chairwoman Nguyen Thi Kim Ngan in October this year.

Ambassador Tuyen said that over the past 10 years, trade between the two countries has grown 13 times to nearly 3 billion USD in 2017.

He said cooperation potential between the two sides is high, stressing that the Vietnamese Government always works with foreign investors, including those from Turkey, to facilitate their projects.

He expressed his hope that Turkish firms will visit Vietnam to explore the market, while calling for the businesses’ engagement in areas of Vietnam’s priorities, including infrastructure, agriculture, green energy, public heath, tourism and high technology.

The diplomat pledged that the Vietnamese Embassy in Turkey is always willing to connect Turkish firms with Vietnamese partners and support them in seeking opportunities in Vietnam.

The Turkish firms described Vietnam as a broad and promising market, and a gateway for them to reach Southeast Asian markets.

They expressed their hope to receive more support in applying for visas to Vietnam.

During his stay in Istanbul, Ambassador Tuyen also met with Travelshop, Rep Kaucuk and Turkish Airlines to explore their plans to invest in Vietnam.

Bilal Eksi, Deputy Chairman and CEO of Turkish Airlines said due to rising demand, the firm plans to double the number of flights from Istanbul to Ho Chi Minh City and Hanoi to 14 flights per week after September 2019, and to 28 flights per week in the future.

He showed his desire to sign more cooperation agreements will Vietnamese carrier Vietnam Airlines – a firm with a rising number of routes to European region.