Ministry to auction sugar import quota 2017 in August

The Ministry of Industry and Trade yesterday announced that it would hold an auction of sugar import quota 2017 at the ministry’s headquarters in Hanoi on August 23.

This year, auction council will permit businesses to import 44,000 tons of raw sugar and 45,500 tons of refined sugar.

According to regulations, auction attendees will include traders using raw sugar to produce refined sugar and traders using sugar as a material for production.

Sugar producers will be only permitted to attend the auction of raw sugar. Those using sugar as production material will participate in the auction of refined sugar.

Starting prices will be VND1.4 million a ton for both raw and refined sugar.

Ministry issues wholesale electricity price 2017

The Ministry of Industry and Trade on Monday said that it has approved average wholesale electricity prices applied by the country’s largest power company Vietnam Electricity (EVN) to power corporations in 2017.

The price must swing from VND1,117-1,551 per kWh. EVN is responsible for specifying the wholesale price for each corporation according to current regulations.

In necessary cases, the price frame will be adjusted to suit fluctuations in electricity production and trading cost, revenue and profit norm of power corporations. EVN will calculate the adjustment and report to the Ministry of Industry and Trade for consideration and approval.

The new wholesale electricity price frame is applied from January 1 to December 31, 2017.

Angel investor network incubates startups in central region

An Angel investor network was launched by Songhan Incubator on July 21 in Da Nang city, aiming to incubate startups in the central region. 

On the occasion, Songhan Incubator inaugurated an incubator area where startup enterprises work and organise workshops, events and training programmes.

Director of Songhan Incubator Ly Dinh Quan said the centre has actively participated in startup support activities since it was established in January this year, significantly contributing to forming startup ecosystems nationwide. 

The centre is a member of the Vietnam Angel Investor Network (iAngel), which provides financial support and consultation for startup units, Quan noted. 

Songhan Incubator aims to promote cooperation and knowledge links among startup organisations and experts, and scientists and technologists, towards incubating entrepreneurial talents and creating high-quality startup projects, contributing to Vietnam’s creative development and renovation. 

It also provides start-up ecosystem development consultations for many provinces and cities, enterprises and other incubators, while implementing the Vietnam Tourism Startup 2017 programme which targets renovation and creativity-applied tourism startup projects. 

Meanwhile, iAngel, operated by experienced managers in Vietnam’s startup circle, is looking to build a strong community with angel investors for joint investment deals. 

The network receives technical assistance of the three leading start-up support programmes, including the Vietnam-Finland Innovation Partnership Programme 2 (IPP2), the Mekong Business Initiative (MBI) and the Swiss EP Startup Support Programme.

Binh Thuan looks to expand VietGap dragon fruit area

A conference discussing ways to expand the area of dragon fruit meeting Vietnamese Good Agricultural Practice (VietGAP) standards in the central Binh Thuan province was held in the locality on July 21. 

According to the provincial People’s Committee, Binh Thuan has more 27,000 ha of dragon fruit (up 135 ha compared to the end of 2016), with a total productivity of 277,000 tonnes per year. The area of dragon fruit meeting VietGAP standards accounts for 28.27 percent or 7,680 ha. 

The VietGap dragon fruit cultivation model in Binh Thuan is practised by over 9,000 local farmers, who have formed 382 cooperatives and farms.

In the first six months of this year, 75 cooperatives and farmers’ groups were assessed and granted with VietGAP certificates, with a total area of 1,442 ha, including 1,100 ha being re-certified. 

Participants to the conference said the cultivation of dragon fruit in line with VietGAP standards has contributed to changing farming practices of local farmers, thus improving the quality and prestige of the products as well as promoting export.

However, the provincial Department of Agriculture and Rural Development said the expansion of VietGAP cultivation area is slow, with less farmers seeking re-certification. The department attributed this to the fact that few enterprises are interested in purchasing safe dragon fruits, while local authorities failed to pay adequate attention to promoting the production model. 

Vice Chairman of the provincial People’s Committee Pham Van Nam asked the local agriculture sector to cooperate with relevant sectors to raise public awareness of the importance of producing clean farm products, including dragon fruit. 

He also urged the sector to work with the provincial Department of Industry and Trade and the Association of Dragon Fruit to build production chains, and encourage enterprises to cooperate with cooperatives in selling VietGap-dragon fruits.

Binh Thuan dragon fruit is exported to 20 countries and territories, including demanding markets like the US and Europe.

The locality aims to have 9,700 ha of dragon fruit meeting VietGAP standards.

Vietnam exports 2.66 mln tonnes of rice in first half

Vietnam exported nearly 2.66 million tonnes of rice in the first half this year with free-on-board value of 1.65 billion USD, reported the Vietnam Food Association. 

The figures were up 0.25 percent in volume and 1.85 percent in value, respectively. 

The growth was attributed to increased demand and limited supply. Notably, japonica rice export saw the highest increase by around 300 percent year-on-year, accounting for 4.57 percent of Vietnam’s total rice export compared to around 1 percent in late 2015. 

Japonica rice was shipped mostly to Australia, making up 5.24 percent of market share. 

However, Vietnamese rice was predominantly delivered to Asia (about 70 percent), including China (43.8 percent), the Philippines, Malaysia and Singapore. 

Premium white rice, glutinous and broken rice shipments also went up 34 percent, 51 percent and 127 percent, respectively. 

Among exported rice in the six months, jasmine rice made up 28.8 percent, followed by premium white rice (28.6 percent). 

As of June 30, 1.46 million tonnes of rice were registered for export but yet to be delivered, roughly 490,000 tonnes of which will be shipped to Cuba, Malaysia and Bangladesh.

Central Highland localities see 14 percent rise in tourism revenue

Central Highlands localities have welcomed nearly 1.9 million visitors since early this year, a rise of 9 percent year on year, with tourism revenue of over 2.9 trillion VND (127.57 million USD), up 14 percent.

Lam Dong was the most popular destination for tourists in the region, attracting 78.34 percent of total visitors to the whole region, according to the Steering Committee for Tay Nguyen (Central Highlands) Region.

Lam Dong has designed diverse tourism products such as mountain and lake exploration, adventurous tourism, and agricultural tourism.

Dak Lak province came second in the number of tourists, thanks to unique attractions such as elephant riding, rowing a dugout canoe in Lak River, Don Village, and gong performance by ethnic minority artists.

Along with promoting its strength in diverse terrain and rich culture heritage of ethnic minority groups, the Central Highlands region is also investing in building tourist sites and expanding transportation system serving tourism.

Currently, the Lien Khuong international airport in Lam Dong has been operational with a capacity of more than 2 million passengers per year. It is serving 27 flights each day.

The region is also actively promoting its tourism sector through coordination with media and travel agencies at home and abroad.

However, the Steering Committee for Central Highland Region assessed that tourism revenue still modest. The committee suggested that regional localities develop new and unique tourism products in agriculture, forestry and culture, while fostering regional connectivity to attract more visitors.

Japan-invested firm opens 42 mln-USD factory in Binh Duong

The Japanese-invested TPR Vietnam Co. Ltd on July 21 put into operation a factory producing gaskets, electric mattress pads and plastic products for daily use in the southern province of Binh Duong.

The plant, based at the Vietnam-Singapore Industrial Park 2 in Tan Uyen township, was built at a cost of more than 42 million USD.

Kishi Masanobu, General Director of Japan’s TPR Group, said his firm highly values Binh Duong authorities’ attention to creating a favourable investment climate. It decided to expand investment here by opening the fifth factory in Binh Duong.

The new factory manufactures about 120,000 electric mattress pads and 30,000 plastic products each month, along with some other products.

Chairman of the Binh Duong People’s Committee Tran Thanh Liem promised continuous efforts to improve the investment environment and upgrade local infrastructure to better serve investment demand and economic development.

Earlier, TPR Vietnam, set up in 2006 in Binh Duong, invested in four automobile component factories at different industrial parks in the province.

Binh Duong attracted more than 1.72 billion USD of foreign investment in the first six months of 2017. It has so far housed 2,946 foreign invested projects worth over 27.4 billion USD, ranking second in Vietnam in foreign investment attraction after Ho Chi Minh City.

Vietnam aquatic, Tra fish festival scheduled for October

A Vietnamese aquatic products and Tra fish festival will run October 6-8 at the Vietnam Trade Promotion Centre for Agriculture on Hoang Quoc Viet Street, Cau Giay District, Hanoi.

Aiming to promote Tra fish in northern Viet Nam and foreign markets, especially China, the event, held by the Ministry of Agriculture and Rural Development, will showcase Tra fish, Tra fish-based products and other Vietnamese aquatic goods at 100 booths.

It is hoped to offer businesses opportunities to broaden their networks with producers, supermarkets, domestic and overseas customers while helping Tra fish become a high value product.

The event will also include workshops on Tra fish production and consumption and Tra fish-based dishes.

In the first half of this year, Vietnam’s fishery output reached 1.6 million tonnes, up 4.8 percent against the same period last year and fulfilling 54.8 percent of the yearly target. 

Tra fish output hit 583,503 tonnes, equivalent to the number recorded in the same period last year and 50.7 percent of the target set for the whole year.

During the reviewed time, aquatic products worth 3.5 billion USD have been shipped abroad since the beginning of this year, predominantly to the US, Japan, China and the RoK, marking a 14.1 percent rise.

Particularly, in Japan, Vietnam’s tra fish sold at Aeon supermarkets is listed among “TopValu” products which are goods with leading quality.

Vietnam reaching a heady high in the global beer business

With the Vietnamese thirst for beer seeming to know no limits, brewers are finding it hard to resist tapping into the country's potential market.

Vietnam is forecast to lead Southeast Asia to see volume growth of 2.3 billion liters over 2016-2021, market researcher Euromonitor International said in its July report. 

Southeast Asia’s volume gains will even surpass those of larger regions, such as North America, Europe, the Middle East and Africa, the report said.

An expanding Vietnamese middle class and youthful population have helped drive a 300% surge in beer demand since 2002, according to Euromonitor, which estimates the market was worth VND147.2 trillion (US$6.5 billion) last year.

It predicts per-capita consumption will reach 40.6 liters this year, making Vietnam the biggest beer consumer in Southeast Asia.

Vietnam will be “the next key battleground for brewers”, Bloomberg cited Euromonitor as saying in a report.

Saigon Beer Alcohol Beverage Corp. (Sabeco) and Hanoi Beer Alcohol Beverage Corp. (Habeco), the nation’s two largest beer companies, will submit IPO plans to the government this month, an official from the industry and trade ministry told local media last week.

“The stake-sales will create an opportunity for international companies to expand geographically, especially those still without a presence in Vietnam,” John Ditty, managing partner of KPMG Vietnam’s deals advisory unit, told Bloomberg.

A study jointly conducted by Vietnam's health ministry and the World Health Organization (WHO) last year showed that 77% of Vietnamese men drink liquor and beer, and nearly half of them drink at hazardous levels.

Nguyen Phuong Nam, an official from the WHO, said nearly 67% of the 1,840 traffic accident patients involved in the study had high concentrations of alcohol in their blood, and 45% had driven after drinking for two hours or more.

Vietnamese drank 3.8 billion liters of beer last year. That was an average of 42 liters per person, four liters more than 2015, according to data collected by the trade ministry.

Private-label products hold high potential

The development of private-label products, also known as “phantom brands” that are made by a manufacturer and sold under a retailer’s brand name, is considered an irresistible trend despite a small proportion in Vietnamese retail market.

A research by Kantar Worldpanel Vietnam shows that private-label products account for only 0.6% of total commodities at supermarkets in Vietnam compared to 50% in France, said Nguyen Huy Hoang, commercial director of the company.

However, the domestic rate is not too low compared to that in other Asian countries with 1.2% on average. The Republic of Korea and Malaysia are among countries with high rates of 2.7% and 2.2% respectively while the Philippines, Indonesia and China have a very low rate of 0.2%.

Hoang attributed the low rate of private-label products in Vietnam to the limited number of modern distribution channels, currently accounting for only 13%.

The research by Kantar Worldpanel also reveals that 38% of Vietnamese consumers choose private-label products due to the strong confidence in retailers. 

Some common products are detergents and toilet paper while packaged food, milk and beverage products do not sell well.

According to Kantar Worldpanel, Vietnamese enterprises should attend to private-label goods and develop their own brands in the context of strong competition.

Cao Tien Vi, general director of Saigon Paper Corporation, told the Daily that the company accepts to manufacture products under supermarkets’ brands to fully utilize the company’s production lines, equipment and manpower, thereby earning more revenue.

Manufacturers need to invest in attractive packaging with limited cost and create new products as Vinamit, Saigon Food, VinaCacao and Lix have implemented successfully.

Retailers prefer medium and small manufacturers as a way to help these manufacturers get more experience in designing packaging, meeting customers’ demand and boosting production.

Many retailers not only provide products of domestic manufacturers but also cooperate with foreign enterprises to offer more private-label commodities.

Meanwhile, many foreign retailers such as Lotte Mart and MM Mega Market have had private-label products manufactured by enterprises in Vietnam for export to other markets.

Multinationals view ASEAN with renewed optimism

A growing middle-income class, increasing regional integration in tandem with solid economic growth over the past few years are some of the reasons multinationals are viewing ASEAN with a renewed sense of optimism, said the Business Times.

The Deloitte Global Manufacturing Competitiveness Index for 2016, the Business Times said, noted that by 2020 – Malaysia, Indonesia, Thailand, India and Vietnam – could quite possibly rank among the top 15 manufacturing countries in the globe.

Manufacturing labour costs in Indonesia, according to Deloitte, currently run about one-fifth of those in China, while in Vietnam and India they are about half the level of the most populous nation in Asia.

The five Southeast Asian countries have a few distinct longer term competitive advantages over China, Deloitte said, such as better prospects for a continued growing younger workforce over the next three decades.

In addition, a Regional Comprehensive Economic Partnership currently under negotiation among ASEAN and India, China, Australia, the Republic of Korea, Japan and New Zealand holds great promise for higher levels of commercial and services trade for the Southeast Asian regional bloc.

Executives of leading multinationals are also taking a long hard look at these same five countries, especially Vietnam, as alternative manufacturing bases, said the Business Times, based on its review of interviews published in Voice of Asia.

The executives cited by the Business Times all stated they were currently operating in ASEAN and were sanguine on continued prospects for their companies to prosper in terms of sales and earnings within ASEAN, especially expressing optimism with respect to Vietnam.

The list of executives included those from Borden Company (PTE) Limited, which has been successfully selling its green Eagle Brand medicated oil produced in Vietnam since the 1960s.

Similarly, Singapore-listed Darco Water Technologies said it is bullish on Southeast Asia, and Vietnam, even as it expands in China through a recent acquisition. The ASEAN market for environment solutions, whether water or waste, is very big, said CEO Thye Kim Meng.

Real estate firms are also eyeing opportunities in Vietnam and other ASEAN markets, said the Business Times. Real estate broker Huttons was one of the first agencies in Singapore to expand into the Vietnamese and Cambodian markets.

Wealth management and real estate services company ZACD Group, meanwhile, noted that the governments in ASEAN have started to liberalize their real estate markets in recent years.

In 2015, new laws opened the Vietnamese real estate market to expatriates. Restrictions on foreign investors in the region would continue to ease and most likely cause investments to rise, said ZACD Group chair Kain Sim.

Lastly, the Business Times cites Surbana Jurong, a Singaporean government-owned consultancy company focusing on infrastructure and urban development. It was formed in June 2015 with the merger of Surbana International Consultants and Jurong International Holdings.

Surbana Jurong is proposing an integrated resort in Vietnam and building hydro-electric dams in Malaysia, which have benefited tremendously by the formation of ASEAN and the consequent lowering of tariff and elimination of other barriers to market entry.

Our smart sustainable city initiatives have given us first mover advantage in addressing the ASEAN region’s growing urbanization, said Jeffrey Cheah, founder and chair of Surbana Jurong.

Da Nang determined to build startup city

The central city of Da Nang is determined to a build startup destination for innovation and creativity, said Secretary of the municipal Party Committee Nguyen Xuan Anh.

Anh made the statement at the Da Nang Start-up Conference and Exhibition themed “Startup Technology and Ecosystem” on July 21, attracting more than 400 young entrepreneurs and startups from 27 countries and territories worldwide. 

In order to achieve the goal of becoming a startup destination in ASEAN under a project on developing a startup ecosystem until 2020 with orientations to 2030, Da Nang is set to develop startup culture, raise young generations’ awareness of startups, continue refining relevant mechanisms and policies, develop startup network and expand cooperation to attract resources at home and abroad for the effort, he said. 

Vo Duy Khuong, Chairman of the Da Nang Startup Council, said the council will work with schools, universities and colleges to add startup into their curricula and urge the municipal authorities to launch a startup fund which helps startups access capital from domestic and foreign investment funds, financial and credit organisations. 

At the same time, conferences and exhibitions to share experience and introduce products to domestic and foreign markets will continue to be held. 

As part of the event, 10 most outstanding startups will enter the final round of the Pitching Competition to vie for awards worth VND200 million, and an exchange with tourism billionair Jeff Hoffman will also be organised.

The event was co-hosted by the Da Nang Startup Council and the municipal business incubator.

Vietnam beats France to crack China's top 10 travel destinations

Vietnam has become the 10th most popular destination among Chinese tourists, according to new statistics.

Figures from CLSA, a Hong Kong brokerage and investment firm formally known as Credit Lyonnais Securities Asia, showed Vietnam has overtaken France to enter the top 10, which is led by Hong Kong, Thailand and the Republic of Korea.

The survey polled more than 400 Chinese travelers across 25 cities with an average age of 35 and a monthly income of 20,000 yuan (US$2,900).

Safety remains the prime concern for mainland travelers, followed by cost and sightseeing opportunities.

A series of terror attacks last year in Europe had deterred Chinese travelers, it said, as cited by the South China Morning Post.

Last May, a MarketWatch report, citing data from American Express, also showed that summer bookings to Europe’s top destinations, notably France and Turkey, had been hurt by the attacks.

China has always been Vietnam's main source of tourists, and their numbers increased by 57% on-year in the first six months of 2017, reaching nearly 1.9 million and accounting for 30% of all foreign arrivals. 

Last year, Vietnam welcomed around 2.7 million Chinese tourists, a jump of 51% from the year before.

Vietnamese media said Chinese visitors have been encouraged by a new policy that allows groups of travelers to visit the border province of Quang Ninh, home to the popular Ha Long Bay, for up to three days without a visa.

CLSA reported that 135 million Chinese people traveled abroad last year, and with 200 million Chinese tourists expected to make outbound trips in 2020, Vietnam is set to become even more popular.

A Bloomberg report last December said Chinese tourists could have a big impact on Vietnam’s economy. It said a 30% increase in spending by Chinese tourists would boost Vietnam’s economic growth by nearly 1 percentage point. For Thailand, that would be around 1.6 points.

“Chinese tourism is pretty big for ASEAN now, and all the countries rely on Chinese visitors to keep coming and keep spending,” Edward Lee, an economist with Standard Chartered Plc in Singapore, was quoted as saying in the report.

PVN exports 355 million tonnes of crude oil in 30 years

The Vietnam National Oil and Gas Group (PVN) has exported 355 million tonnes of crude oil, worth US$145 billion, since the shipment of its first barrel from Bach Ho field in April 1987.

The PVN today not only ships crude oil abroad but also supplies oil for Dung Quat Refinery in central Quang Ngai province.

The firm has extracted 7.48 million tonnes of crude oil, both locally and overseas, in the first half of 2017, bringing home US$3.17 billion.

Of the amount, 3.04 million tonnes has been provided to Dung Quat Refinery, exceeding the plant’s designed capacity.

According to the state-run group, a barrel of crude oil earns Vietnam US$54.4 on average during the period, higher than the expected rate of US$50 and global prices.

Crude oil prices are projected to hover around US$46 – 50 per barrel in the remaining months of this year, lowering the entire year’s average to about US$50 per barrel.

Saigon Plant Protection company opens branch in Myanmar

The Ho Chi Minh City-based Saigon Plant Protection JSC? (SPC) has recently opened a representative office in Myanmar, after obtaining a local licence earlier this year.

Currently, 20 SPC products can be used on paddy fields, vegetables and fruit trees in Myanmar.

In the past 15 years, the SPC has worked with Myanmar companies to introduce its products, including pesticides, farming equipment and rice and vegetable seeds, in the country. 

The company also worked with the Myanmar Government to present new cultivation methods for dragon fruit, mango and longan.

In 2005, the SPC established branches, then subsidiaries, in Cambodia and Laos. 

To date, its annual export revenue is estimated at US$10 million.

Selling price of social housing may rise     

Social housing is expected to get more expensive soon as investors have not received preferential interest rates for loans, experts have said.

The Ministry of Construction has allowed investors to factor in the normal interest rate of loans into selling prices, which may cause prices to exceed those of commercial housing projects, reported Tien phong (Vanguard) newspaper.

According to regulations on social housing policies issued in 2011, enterprises that develop social housing projects are exempt from land use tax and enjoy preferential interest rates for loans for the projects.

Then in 2013, the State provided a credit package of VND30 trillion (US$1.32 billion) to loan 70 per cent of credit for apartment buyers and 30 per cent for investors of the projects at low interest rates, the moves which stimulated the social housing market..

With those policies, social housing projects were sold at VND10 million per sq.m.

After the package ended on June 30, 2016, the Government announced a policy of preferential interest rates for investors of social housing projects.

Under this policy, enterprises can take State loans from the Social Policy Bank or credit organisations designated by the State. However, this policy has yet to be implemented.

Therefore, Binh Tan Consumer Goods Production Co, Ltd has asked the Ministry of Construction for support as the company has borrowed capital from banks at interest rates of 6.9 per cent for the first year and 9-10 per cent per year from the second year to complete its social housing projects after the VND30 trillion package ended.

With the high interest rate, the company could not continue developing the project and sell apartments at low prices.

However, the ministry replied that investors who used commercial loans could factor the high interest rate into the selling and rental price of apartments.

Thus, apartments in social housing projects can now be sold at commercial prices, leading to prices in projects like Tam Trinh and Rice City Song Hong in Ha Noi to increase to more than VND15 million per sq.m.

Nguyen Chi Dung, deputy director of Ha Noi Construction Department, said there is no ceiling price for social housing apartments, though legally investor’s profits from a social housing project can not exceed 10 per cent of total investment in the project.

However, social housing projects have enjoyed many incentives so the selling price has often been lower than in commercial housing projects with similar levels of investment, Dung said.

Investors of social housing projects have proposed ceiling prices for the projects and are waiting on approval from city authorities, he said.

Tran Ngoc Hung, chairman of the Viet Nam Construction Association, said the State should encourage enterprises to build cheap, small apartments without tax incentives, and instead convert tax revenue paid by investors in the projects to a fund for poor buyers. The State can then offer loans from the fund at low interest rates, even zero interest in the first year and 1-2 per cent from the second year.

The State should let enterprises compete according to market rules, Hung said. All tax revenue paid by investors’ projects should be converted into loans for buyers that need social housing instead of being used to support firms that build the houses.

According to a Ministry of Construction report, the Ministry of Planning and Investment is building a plan to allocate funds from the Bank for Social Policies to provide loans for buying social houses.

Meanwhile, the Construction Ministry has asked the bank to create favourable conditions for low-income people and labourers in industrial zones to take loans as soon as possible. 

VN property market looks to up transparency     

The Vietnamese property market must improve market information transparency to attract investment and develop sustainability, experts said.

Although there are currently many sources for market information--real estate associations, property services firms such Savills, CBRE, JLL and Cushman Wakefield as well as the Ministry of Construction--the information is rarely consistent among market research firms.

In addition, the construction ministry has failed to provide regular market updates and transform the real estate market and housing information system into a reliable source.

Ultimately, experts say that real estate market information of Viet Nam still lacks accuracy and reliability.

Economist Le Ba Chi Nhan said that property market supply and demand information remains very confusing. Consultant firms provide their own sales figures every quarter, but the figures largely differ.

For example, Savills Viet Nam’s report revealed that nearly 11,600 apartments were sold in the second quarter in HCM City, touching a six-year high. The CBRE Viet Nam figure was 9,522.

Savills forecasted that mid-end segment would dominant the supply in the future, while CBRE said high-end segment would improve the second half of this year, and JLL said low-priced housing would lead the market.

Nhan said that these figures were mainly not verified by any independent organisations. Thus, they lacked reliability.

Dang Hung Vo said that market information must be provided adequately to prevent misunderstanding.

For instance, Ha Noi and HCM City recently announced projects at banks, but the announcements failed to mention details and caused confusions and misunderstandings.

Market transparency requires that information be regularly updated, accessed easily and equally, Vo said.

Le Hoang Chau, President of HCM City Real Estate Association, said the Law on Real Estate Business does not specify which organsations and companies can provide market reports. This means anyone can provide their own figures. Of course, each has their own statistical method.

Chau said the construction ministry must develop a market information system, which would provide regular updates about transactions, mortgaged projects as well as planning and policies as a reliable source to ensure market development on the right track.

However, a ministry representative said that real estate price index is just being developed, and it will take time to complete the database.

In 2016, the JLL global real estate transparency index ranked Viet Nam 68 among 109 countries, indicating that Vietnamese property market has low transparency due to difficult access to planning information and the lack of market database. 

TAC announces 34% rise in profits in Q2     

Tuong An Vegetable Oil Joint Stock Company has reported a 34.2 per cent year-on-year jump in profit before tax in the second quarter to VND63 billion (US$2.7 million).

Net sales grew by 4.7 per cent. The gross profit margin increased from 9.1 per cent to 10.9 per cent.

The company attributed the increase in profitability to a change in its product strategy to focus on higher margin products. It said it would be launching new oil products that are nutritious and healthy in the second half of 2017 to cater the ongoing increase in demand and consumers’ expectations.

The company also plans to introduce new packaged products this quarter as part of its larger strategy to increase utilisation of its distribution network. 

SSI reports robust performance in 2nd quarter     

Saigon Securities Inc. (SSI) reported pre-tax profits of VND402.3 billion (US$17.7 million) on revenues of VND762.1 billion (US$33.57 million) in the second quarter of the year, up 9.5 per cent and 10.3 per cent year-on-year.

Securities services and principal investment continued to be the biggest contributors to its revenues, with the latter accounting for VND328.5 billion.

Revenues from brokerage services doubled to VND185.9 billion and from securities services were up 52 per cent at VND316.1 billion.

SSI retained its leading position on both the HCM City and Hà N?i exchanges with a 15.35 per cent and 13.67 per cent market share.

Following its solid performance in the first half of the year -- revenues topped VND1.31 trillion ($57.79 million) and profit before tax was estimated at VND735 billion, or 69.5 per cent of the full-year target -- the company is confident of achieving its 2017 business plans. 

VEIL inducted into FTSE 250 Index     

The Vietnam Enterprise Investments Limited (VEIL) announced it has been inducted into the FTSE 250 Index under the London Stock Exchange (LSE).

"We are extremely pleased to be the first Vietnamese focused investment company to warrant inclusion into the FTSE 250,” Dominic Scriven, executive chairman of Dragon Capital, said in a statement.

“Since moving on to the London Stock Exchange in July 2016, VEIL has gone from strength to strength, benefitting from the strong underlying economic fundamentals of the Vietnamese economy and a highly rigorous investment approach,” he said.

“VEIL’s inclusion in the FTSE 250 should help build on the progress we have made to narrow VEIL’s discount to NAV as a higher profile investment company."

FTSE 250 Index includes 250 stocks that are traded on the LSE with total market capitalisation of 385.52 billion pounds (US$501 billion).

The decision on VEIL’s inclusion in the FTSE 250 Index came into effect on July 18. On July 5, 2016, VEIL was admitted to the LSE – a step that was expected to raise trading liquidity and transparency for the fund certificates.

Launched in 1995, VEIL is a closed-ended, focusing on Viet Nam’s listed and pre-IPO companies in the country that offer attractive growth and value metrics and strong corporate governance.

The fund started with initial value of $12 million. According to the latest announcement, at close of business on July 17, VEIL’s unaudited net asset value reached $1.2 billion, or $5.49 per share.

The top 10 Vietnamese firms in VEIL’s portfolio included dairy producer Vinamilk, phone and accessory distributor Mobile World Corporation (MWG), information-technology FPT Corporation and steel producer Hoa Phat Group, as well as aviation company Vietjet Air and PetroVietnam Gas Corporation.

The value of investment in Vinamilk occupies 12.5 per cent of VEIL’s net asset value, followed by MWG (7.62 per cent), Military Bank (6.9 per cent) and Asia Commercial Bank (5.87 per cent). Total investment in the top 10 Vietnamese companies is equal to 58.6 per cent of the fund’s net asset value.

Mercedes-Benz H1 sales in VN grow by 60%     

Mercedes-Benz Vietnam (MBV) reported year-on-year growth of more than 60 per cent in automobile sales during the first half of 2017, its best performance in its 22 years in Viet Nam.

The firm sold a total of 2,900 cars during the period in spite of market fluctuation.

While many automakers are cutting prices of both affordable and luxury models sold in Viet Nam to boost demand, MBV still enjoyed high sales even with its prices ranging from VND1.34-14.45 billion.

The brand also appeared to not be much affected by the upcoming elimination of Viet Nam’s import tariff on ASEAN-made vehicles in early 2018 following the ASEAN Trade in Goods Agreement (ATIGA).

According to MBV, since the beginning of this year, the company has received over 100 orders for luxury model Mercedes-Maybach, with half of them delivered. The new-generation E-Class also saw good sales, with more than 600 units sold since its debut in late 2016.

Vietnam’s first ultra-clear float glass factory built

The construction of an ultra-clear float glass factory, the first of its kind in Vietnam, kicked off at the Phu My 2 Industrial Park in Tan Thanh district, the southern province of Ba Ria-Vung Tau, on July 24.

Phase I of the plant, owned by the Phu My Ultra Clear Float Glass Co. Ltd, will be carried out from now to 2018 and has total investment of 2.6 trillion VND (about 114.4 million USD). When operational, it is set to produce 600 tonnes of the product a day.

Phase II will be built from 2019 to 2022, raising the factory’s capacity to 900 tonnes per day.

China’s Kaisheng Science & Technology Group Co., one of the three founders of the Phu My company, pledged to purchase all ultra-clear float glass of the factory.

With charter capital of 886 billion VND (39 million USD), the Phu My Ultra Clear Float Glass Co. Ltd was established by the Viglacera Corporation, the Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO), and the Kaisheng group.

The factory in Ba Ria-Vung Tau is one of the two ultra-clear float glass plants expected to be constructed in Vietnam. The other is in northern Bac Ninh province. The Prime Minister approved in principle the construction of these plants in 2016.

Workshop promotes sustainable rubber planting

A workshop to promote sustainable rubber forests was jointly organised by the Vietnam Rubber Association (VRA) and the Worldwide Fund for Nature (WWF) in HCM City on July 24.

Vo Hoang An, VRA Vice President, highlighted the fast development of the rubber sector, with rubber forests covering the biggest area among long-term industrial plants in Vietnam, hitting about over 976,000 hectares in 2016.

In 2016, rubber wood made up 22.1 percent of the country’s total wood export values, and 31.7 percent of the sector’s export value.

He underlined the increasing trend of using forest-based products with legal origin or sustainable forest management certification in the context that countries are making every effort to cope with global climate change.

Forest certification is considered a tool for sustainable forest management, thus ensuring socio-economic development and environment protection goals.

According to Le Thien Duc from WWF Vietnam, around 230,000 hectares of forests have been granted with the Forest Stewardship Council (FSC) certification, accounting for 42 percent of the target set for 2020.

Vietnam has yet to submit the FSC its national standards on sustainable forests management, Duc said.

Meanwhile, Truong Minh Trung, Deputy Director General of the Vietnam Rubber Group, said Vietnam has no rubber forests granted with FSC certificate.

Wood products with FSC certification have higher prices than normal ones, Truong said, adding that his group will step up FSC-met forests planting in its member units.

According to the WWF, in order to develop rubber forests sustainably, the rubber forests must follow Vietnamese and international law, gaining local support and respect while minimising their impacts on the environment.

Hybrid corn seeds dominate fields in Vietnam

All corn fields in Vietnam use hybrid seeds, with the volume of seeds used for annual production amounting to about 20,000 tonnes, said the Plantation Department under the Ministry of Agriculture and Rural Development.

Since 2014, Vietnam has permitted the cultivation of GMO corn, with 16 types allowed to date.

As of March 2017, Vietnam has imported 1,500 tonnes of GMO corn seeds, which can cover 100,000 hectares of land.

In 2016, corn plantation areas covered 1.15 million hectares nationwide and yearly output exceeded 5.2 million tonnes in total. Most of the plants are grown in the northern midland and mountainous regions, accounting for 46 percent of the total area.

Vietnam’s average corn production is at 45.5 quintals per hectare, lower than the global and Asian averages.

Cat Linh-Hadong urban railway deadlock persists

The Cat Linh-Hadong metro line, Hanoi's first urban railway project, is facing risks of falling behind schedule as the delay in approval of additional loans has not been solved yet.

The project was earlier scheduled for a trial operation in October 2017, which will be followed by the official launch at the end of the first quarter of 2018. Although 90 per cent of the project has been completed, including stations, depots, and girders, the sluggish allocation of an additional loan of $250.6 million remains a big problem.

An official of the Ministry of Transport (MoT) admitted that the project will likely miss the schedule. “The project is in the final development stage, the demand for capital disbursement is huge. However, the allocation of the financial sources remains stagnant,” the official said, blaming procedure-related problems. "It needs strong cooperation from ministries and agencies.”

“Currently, the allocation of an additional loan is three months behind the schedule and the delay is likely to continue,” the official noted.

The project is using loan from China. The additional loan of $250.6 million is being negotiated by the Ministry of Finance, the Ministry of Justice, and China's Eximbank to complete the necessary procedures.

At a recent national conference on road safety, Nguyen The Hung, Deputy Chairman of the Hanoi People's Committee, said that the project is an urgent solution to ease traffic jams in Hanoi during 2017-2020.

The Cat Linh-Hadong urban railway is an important factor that enables Hanoi to ban motorbikes in several districts by 2030.

Previously, the Cat Linh-Hadong urban railway project was approved in October 2008 and then adjusted in February 2016. It has a total investment value of VND18 trillion ($794.57 million) and was to be officially launched in 2016.

There are many reasons for the delay, mainly originating from the delay of the main contractor in determining equipment price, which affected the progress of entering into an additional loan agreement and bidding to procure equipment.

HCM City: retail sales, services revenue up 10.2 percent in H1

Ho Chi Minh City’s total retail sales and services revenue are expected to hit nearly 450 trillion VND (19.8 billion USD) in the first half of 2017, up 10.2 percent from the same period last year.

According to Nguyen Phuong Dong, deputy head of the municipal Department of Industry and Trade, of the total, revenue from retail is estimated at 291 trillion VND (12.8 billion USD), 64.7 percent of the total and up 12.1 percent year-on-year.

During January-June, the Department carried out measures to stabilise the market and connect businesses and banks, while implementing projects to establish an aromatic and chemical business centre, develop the logistics and support industry sector and help enterprises tackle difficulties.

From now until the end of this year, the department will continue measures supporting enterprises, hold a second meeting for municipal leaders and enterprises and complete industry and support industry data to help connect production businesses with distributors, Dong stated.

The department will also speed up the implementation of the supply-demand linkage programme and the “Vietnamese people prioritise using made-in-Vietnam products” campaign, and intensify promotion activities inside and outside the country.

The trading of counterfeit and low-quality products will also be punished strictly, he added.-

CS Wind Vietnam facing dumping charges once again

Coming out on top after a lengthy anti-dumping investigation by the United States Department of Commerce (DOC) and years of litigation, CS Wind Vietnam is once again under investigation of dumping, this time initiated by the Australian Anti-Dumping Commission (ADC).

The investigation was initiated after an application was lodged by Australian wind tower manufacturers Keppel Prince Engineering Pty Ltd (KPE) and Ottoway Fabrication Pty Ltd (OF). The complaint alleges that the Australian wind towers industry has suffered material injury due to wind towers exported to Australia from Vietnam at a price lower than their normal value.

The Vietnamese exporter implicated in the investigation is CS Wind Vietnam, the Vietnamese wind tower base production arm of CS Wind Corporation (Korea). The applicants, KOE and OF, believe that “prices from CS Wind of Vietnam actively undercut the Australian industry prices on available tenders” in 2015, causing material injury to the Australian industry.

The applicants also believe that injury from the dumped import commenced in 2013, when 70 out of 90 wind towers available for tender from the Snowtown 2 project were awarded to Vietnam. Additionally, CS Wind Vietnam also secured 40 out of 75 wind towers from Ararat Wind Farm in 2015, and a total of 99 wind towers from the Hornsdale Wind Farm project in 2015 and 2016.

The investigation will examine transactions between January 1, 2015 and December 31, 2016 to determine whether dumping and material injury has occurred, as well as examine details of the Australian market from January 1, 2013 for injury analysis purposes.

After the initial findings, ADC concluded that there appear to be reasonable grounds to support the applicants’ claims and estimated the dumping margin for the investigated period to be 15.7 per cent. A temporary anti-dumping duty maybe imposed on Vietnamese wind towers, effective from not earlier than 60 days since the initiation of the investigation on June 8, 2017.

On July 7, importer Siemens Wind Power - the project manager of the Hornsdale Wind Farm project, sent a submission to ADC disputing the allegations that the Australian wind tower industry has suffered material injury caused by import dumping from Vietnam and recommending that no anti-dumping measures be imposed on wind towers exported to Australia from Vietnam.

ADC is expected to issue a preliminary affirmative determination earliest on August 7 and a statement of essential facts no later than September 26. Involved parties will have 20 days to respond after the statement is published in public record.

The applicants, KPE and OF, also cited in their application the anti-dumping investigation on CS Wind Vietnam and its parent company, CS Wind Corporation.

In December 2011, Wind Tower Trade Coalition (WTTC), a group of US manufacturers of utility-scale wind towers, petitioned DOC to impose antidumping duties on wind towers imported to the US from Vietnam. An investigation was conducted, and in February 2013, DOC determined that CS Wind Vietnam and CS Wind Corporation are a single entity, CS Wind Group, and imposed a 51.5-per cent anti-dumping duty on it.

After the decision, CS Wind Group appealed to the United States Court of International Trade (CIT). After several decisions, both CIT and DOC found the company to have a weighted average dumping margin of 17.07 per cent in 2014, which was then revised to 17.02 per cent in May 2015.

CS Wind Group then appealed to the Court of Appeals for the Federal Circuit (CAFC). DOC issued its Final Third Redetermination on December 9, 2016.

On March 16, 2017, the court issued its final judgment, sustaining the department's final results of redetermination. On March 29, 2017, pursuant to this court decision, effective March 26, 2017, the department excluded from the antidumping duty order wind towers that are produced and exported by CS Wind Group.

On April 10, 2017, the department published a notice of initiating an administrative review of the antidumping duty order on wind towers from Vietnam for the period between February 1, 2016 and January 31, 2017.

Because wind towers produced and exported by CS Wind Group were excluded from the antidumping duty order on wind towers from Vietnam as a result of the above ruling, on May 31, 2017, DOC issued an amended initiation of administration review only on entries where CS Wind Group was (1) the producer but not the exporter, or (2) the exporter but not the producer of subject merchandise.

Numerous violations found in FLC’s million-dollar projects

Dozens of construction components in two resort projects developed by FLC Group have been put into operation without the necessary permits or quality inspection. 

The Ministry of Construction (MoC) just concluded the investigation of two of FLC's projects in Sam Son in the central province of Thanh Hoa) and Nhon Ly in the central province of Binh Dinh.

The investigation focused on FLC’s implementation of the construction plan, quality management, and real estate business operations. A 7-page report shows numerous violations by the people’s committees of Thanh Hoa and Binh Dinh, as well as the developer of the projects, FLC.

FLC Sam Son has a total area of 200 hectares, with the total investment capital of VND5.5 trillion ($242.3 million). The resort complex includes an 18-hole golf course, a convention centre, a luxury resort, a hotel, a villa complex, and an amusement centre, many of which have been operating since 2015.

FLC Quy Nhon has a total area of 1,300ha, with the total investment of VND7 trillion ($308.3 million), and has been in operation since July 2016.

Regarding FLC’s project in Thanh Hoa, MoC inspectors said that the Thanh Hoa People’s Committee had approved the golf course construction plan in 2013, 11 months prior to the prime minister’s approval.

The Thanh Hoa People’s Committee also allowed the conversion of more than 11ha of protective forest land into the golf course land area, which violated the PM’s regulations. The committee also allowed the conversion of more than 11 additional hectares of protective forest land for the construction of FLC Sam Son resort without meeting the conditions set by the government on the implementation of the Law on Forest Protection and Development.

The Thanh Hoa People’s Committee also failed to officially approve the 1:500 planning for FLC’s resort and golf course in Quang Cu, Sam Son.

The Department of Construction issued construction permits for two constructions in the FLC Sam Son project and one construction in the FLC Golf Links after they were finished. Two construction components in the FLC Sam Son project and two construction components in the FLC Golf Links project have been finished without ever receiving construction permits.

Regarding the luxury resort and golf course in Binh Dinh, the inspectors said that the Binh Dinh People’s Committee approved a 1:500 construction plan that was incompatible with the 1:2000 plan.

The Binh Dinh Economic Zone Management Authority issued seven permits for construction components already finished in this project and five construction components have been finished despite having no permits.

Regarding FLC, the inspectors said the developer has committed various violations in construction planning. In both projects, the developer also lacked proper documentation of construction surveys or performed surveys improperly.

A large number of construction components in both projects lacked construction quality management records. Particularly, in FLC Sam Son, the developer built and put into operation without permits a 7-story hotel with a total area of more than 4,000 square metres.

Another 15-story hotel covering a 75,000-sq.m area, a resort, and other technical infrastructure also started construction without permits. Other construction components have not been inspected for fire prevention and protection.

Similar violations were uncovered in the FLC Quy Nhon project.

The consultant, survey, and monitoring units as well as contractors of the two projects also had no permits, according to the MoC inspectors.

MoC requested the people’s committees of Thanh Hoa and Binh Dinh to hold the individuals and organisations responsible for the above mentioned violations accountable.

MoC also requested FLC to cease all construction activities, carry out quality inspection, and satisfy legal requirements on quality control for the finished construction components.

Regarding the nine construction components already finished without permits, including resorts, golf courses, and shopping centres, among others, MoC requested FLC to obtain the appropriate construction permits, carry out construction quality assurance, and receive inspection from appropriate management agencies before putting them into operation.

Regarding the 10 construction components finished with permits, MoC requested FLC to carry out quality inspection again and complete all relevant legal requirements.

MoC expected the people’s committees of Thanh Hoa and Binh Dinh, involved departments and agencies, and FLC to submit a report on the implementation of these requests by September.

When asked, FLC’s representative stated that the company has received the inspection conclusion and is working on corrective measures and completing relevant procedures. The representative also explained that “the construction components carried out without permits are all of a small-scale or spiritual nature.”

Blue HK invests in Beta Media

Startup Beta Media, which builds inexpensive cinemas in smaller cities and provinces in Vietnam, has signed an investment agreement with Blue HK, a financial group from Hong Kong.

Beta Media is valued at VND600 billion ($27.5 million) under the agreement. It previously received investment from Vietnam Investments Group (VIG), an investor in the Galaxy Cinema chain and Galaxy Studios as well as many food and beverage (F&B) brands.

VIG still holds its stake in Beta Media and Mr. Bui Quang Minh, founder and CEO of Beta Media, still holds more than 50 per cent.

Since 2015, with the launch of the Beta Cineplex in northern Thai Nguyen city, Beta Media has built and opened three other cinemas, in Bien Hoa city in southern Dong Nai province and two in My Dinh and Thanh Xuan districts in Hanoi.

It will open six cinema complexes this year, in northern Thanh Hoa and Bac Giang provinces, Dong Anh district in Hanoi, south-central Nha Trang city, Ho Chi Minh City, and Long Xuyen city in the Mekong Delta’s An Giang province, bringing its total number of cinemas to ten.

It has also officially entered into production and distribution of films. In its plan for 2017, it will produce five films and distribute 15 foreign films in the country.

Beta Media also is planning to invest in F&B models together with its cinemas, such as Foodfair, Boba City, and Barista.

Mr. Minh told local media that he decided to invest in the cinema business because Vietnam’s film market is growing and there is a lot of potential. Modern cinemas only focus on the high-end segment with high ticket prices compared to incomes in the country. “I have a great opportunity to create a new model that serves many types of customers, making going to the movies easier,” he said.

As at 2016, Vietnam’s cinema market was dominated by five major players, which held a market share of 98 per cent: CJ-CGV with 43 per cent, Lotte with 30 per cent, Platinum with 10 per cent, Galaxy with 9 per cent, and BHD with 6 per cent, according to report from KDB Daewoo, a South Korean securities company.

Starbucks arrives in Hai Phong

Starbucks Vietnam has opened its first outlet in northern Hai Phong city, reaffirming its commitment to thoughtful and disciplined growth in Vietnam.

This 29th outlet in the country is located at 15A Tran Phu Street, a vibrant part of the charming port city. Starbucks Tran Phu began brewing on July 22 and will serve Starbucks’ classic menu during its first month.

“Starbucks Vietnam is proud to bring our distinct experience to a new region, serving customers outside of Hanoi and Ho Chi Minh for the first time,” said Ms. Patricia Marques, General Manager, Starbucks Vietnam. “Thanks to our passionate partners (employees), who are deepening our connections with customers in Vietnam every day, we will continue to look for opportunities to bring the unique Starbucks Experience to more neighborhoods.”

Hai Phong is the third city where Starbucks Vietnam has a presence, coming soon after the milestone of opening the first Starbucks outlet with a Reserve Bar in Hanoi in May.

Starbucks Reserve Coffee Bar creates an immersive experience that brings customers closer to their coffee and Starbucks baristas than ever before. The outlet is located at 6 Nha Tho in Hoan Kiem district and debuted the state-of-the art Black Eagle espresso machine and Nitro Cold Brew on tap.

Starbucks has reiterated that Asia continues to be a significant growth driver. It has granted a subsidiary of Hong Kong Maxim’s Group, Coffee Concepts (Vietnam) Limited, a license agreement for Vietnam.

Since 1971, Starbucks Coffee has been committed to ethically sourcing and roasting high-quality Arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through its unwavering commitment to excellence and guiding principles, it brings the unique Starbucks Experience to life for every customer through every cup. 

Vietnam a Top 5 exporter of suitcases, backpacks, handbags

With $3.2 billion worth of exports of suitcases, backpacks, and handbags in 2016, Vietnam was among the Top 5 largest exporters in the sector, according to the Leather, Footwear and Handbag Association (LEFASO).

Vietnam ranked fifth among the ten largest exporters of suitcases, backpacks, and handbags the world over, contributing 5.4 per cent to last year’s global supply, according to LEFASO.

The suitcase, backpack, and handbag industry has reported consistent growth of 10-15 per cent over the past five years, according to LEFASO Chairman Nguyen Duc Thuan.

This growth is driven by international fashion brands paying greater attention to the quality of Vietnamese leather products and selecting Vietnam as the site of their manufacturing facilities, Mr. Thuan added.

Other exporters in 2016's Top 5 included China, Japan, and South Korea. 

Around 2.5 suitcases and handbags were bought around the world last year at a total cost of $300 billion. China held its lead as the top exporter in the industry, accounting for 40.8 per cent of global exports during the year. The US, Hong Kong, and Japan topped the list of global importers, according to LEFASO.

In the first five months of this year, the US was the largest destination of Vietnamese suitcases, backpacks, and handbags, worth $555 million, a 6 per cent increase year-on-year. The EU followed, with $365 million, up 8.2 per cent year-on-year.

Vinasun cuts 2017 business targets

Vinasun Corp., the owner of Vinasun Taxi, has released its financial report for the second quarter 2017, with most business indicators falling compared to the same period last year. Net sales in the quarter reached VND810 billion ($35.6 million), down 27.8 per cent year-on-year, while revenue was VND1.9 trillion ($83.6 million), down 15.6 per cent.

In its net revenue structure, passenger transport services accounted for 92 per cent. Financial income also fell sharply, from VND4.5 trillion ($198 million) to VND1.6 trillion ($70.4 million).

After-tax profit in the second quarter was VND46 billion ($2.02 million), a 50 per cent decline year-on-year, and VND101 billion ($4.4 million) in the first half, down 32 per cent.

Employee numbers have fallen significantly since the end of last year, from 17,160 to 9,179.

Earlier, in a letter to the Prime Minister in mid-May, Vinasun said 4,239 employees quit in the first quarter and 300 vehicles were taken of the road because of intense competition from Uber and Grab.

The arrival of the bus rapid transit (BRT) system and the upcoming completion of urban railway lines are expected to significantly affect Vinasun's future business, with revenue and profit targets reviewed for this year.

It targets annual revenue of VND4.25 trillion ($187 million), down 10.6 per cent compared to 2016 and pre-tax profit of VND256 billion ($11.2 million), down 35.5 per cent.

The battle between Grab, Uber and traditional taxis is increasingly fierce. Vinasun, the leading taxi company in Ho Chi Minh City in terms of market share, has proposed a series of measures to make Uber and Grab comply with existing law and ensure fair competition.

Uber and Grab, it said, have used application software to connect drivers and customers without gaining permission from authorities. While Vinasun has to pay taxes and abide by 13 business conditions, Grab and Uber do not.

Vinasun, therefore, recommended that Grab and Uber be classified as “taxi companies”.