Investigative police at the Ministry of Public Security have wrapped up their additional investigation into the DongA Bank case and submitted their conclusion to the Supreme People’s Procuracy on Wednesday, reported Thanh Nien newspaper.

The police suggested prosecuting 26 people on alleged charges of causing a hefty loss of more than VND3.6 trillion (US$155 million) for the bank.

They include Vu Nhom, 43, former chairman of Bac Nam 79 Construction JSC, and Tran Phuong Binh, 59, former general director and vice chairman of DongA Bank.

They have been charged with deliberate violations of State regulations on economic management, causing serious consequences; violations of lending regulations in the operation of credit institutions; negligence leading to serious consequences; and abuse of trust to appropriate assets.

The investigators found that Binh, who was also the chairman of the credit council at DongA Bank, owned 10.25% of the bank’s charter capital, while his family members held a further 7.7%. He was also in charge of its budget and investment division at the time.

His numerous violations led the bank to incur an accumulated loss of VND31 trillion (US$1.36 billion) and a negative equity of more than VND25 trillion (US$1.09 billion) in late 2015.

Binh was found to have falsely created favorable conditions, even directing his staff to falsify documents to help Vu successfully buy 63 million shares of DongA Bank.

In 2013, the bank incurred heavy losses, so Binh planned to raise its charter capital from VND5 trillion to VND6 trillion and sell 60 million of its shares to Vu for VND600 billion.

Vu used 220 hectares of land in the central coastal city of Danang as collateral to borrow VND400 billion from the bank, so that he had enough money to purchase the shares. Binh instructed his staff to falsify documents so that Vu could borrow the remaining VND200 billion.

However, the capital increase plan faltered, so Binh ordered his subordinates to return VND609 billion, including the principal amount and interest, to Bac Nam 79 Construction.

Vu, who was the chairman of the company, then spent VND500 billion of this amount buying 50 million shares of DongA Bank. The bank has yet to recover the remaining VND100 billion.

In August 2015, Vu acquired an additional 13 million shares of the bank for VND136 billion, but he paid only VND46 billion.

Binh and Vu, therefore, caused DongA Bank losses of some VND200 billion.

The latest investigation results of the police said that Vu’s requests for the distraint of his assets, including Bac Nam 79 Construction JSC, have been turned down because these assets are involved in other legal cases against him.

Vu was earlier charged with deliberate disclosure of State secrets; tax evasion; abuse of his position and power; as well as the violations of regulations on the management and use of State assets, thus causing losses and wasting resources.

At a one-day closed-door trial in Hanoi City in late July, he received a nine-year prison sentence for deliberately divulging State secrets, though his crimes were not detailed on national security reasons.
Vietnam yet to streamline foreigners’ property ownership process

Although Vietnam allows expats to own houses in the country, many of them are finding it challenging to obtain title documents.

Huynh Truc Mai’s Finnish husband was happy when he bought an apartment in District 2, HCMC, two years ago, and was eager to have their names appear as joint owners. But this was denied because he was not Vietnamese.

Mai said, “Eventually my husband had to agree I will be the sole owner of the house on paper. He was upset.”

Mai’s husband is among many foreigners who have bought houses in Vietnam but are unable to get a pink book, which is the title deed to apartments and houses.

According to the HCMC Real Estate Association (HoREA), foreigners have bought 1,000 apartments since then.

But none has received the pink book yet, real estate businesses told a recent conference.

“Authorities do not reject our application, but they say they have not received detailed instructions on issuing ownership documents to foreigners,” local newspaper Nguoi Lao Dong quoted an executive from giant developer Novaland as saying.

So many foreigners need a Vietnamese to be the nominal owner on their behalf, he added.

Experts said foreigners can own property in Vietnam but the government has yet to provide a clear solution to resolve the paperwork issue.

One of the reasons for this delay is that foreigners can only own properties in locations that do not have a bearing on national security, Tran Trong Tuan, director of the HCMC Department of Construction, told the media.

These areas should be designated by the Ministries of Public Security and Defence, but they haven’t given a specific list yet, he said.

“HCMC has already reported this challenge to the Ministry of Construction and the Prime Minister and is waiting for further instructions.”

Le Hoang Chau, chairman of HoREA, said the Ministry of Construction should announce in which areas foreigners can own property.

The construction ministry should do this when real estate firms apply for the license, he said.

Official data shows there are now 83,500 foreigners working in Vietnam.

Since July 2015 Vietnam has allowed foreigners to buy property except land and not more than 30% of a residential quarter or apartment project.

Vietnam software industry sees robust growth

Vietnam's software industry is growing strongly with revenues of existing companies surging and Vingroup announcing its entry into the sector.

Quang Trung Software City in Ho Chi Minh City,  the country’s top information and technology hub, reported revenues of VND3.3 trillion (US$142 million) in the first half this year for the 155 businesses operating inside.

This figure, which was up 25.5% year-on-year, included US$93.4 million worth of software exports, up 36.5%.

Revenues of Quang Trung Software City last year were worth over VND8 trillion (US$344 million), a 25% rise over 2016.

These growth rates are common for top software companies, including giant FPT Software, which has been reporting them since 2010.

Last year FPT’s exports were worth VND6.2 trillion (US$266 million). It plans to increase that number to VND7.7 trillion (US$331 million) this year, and to US$1 billion by 2020.

The high growth rates obviously mean increasing job creation by the sector.

Data from VietnamWorks, a leading recruitment company, shows there were 15,000 new jobs in the information technology sector last year, 1.5 times the 2015 number.

More than half of them were in HCMC, the country’s largest technology hub.

Last month realty and retail behemoth Vingroup announced plans to focus intensively on the technology sector by establishing VinTech, which will focus on AI, software and new materials.

Vietnam’s software exports last year were worth VND58.5 trillion (US$2.5 billion), up 4.4% from 2016, according to the Ministry of Information and Technology.

Experts discuss solutions to develop Asian tourism

The 16th annual meeting of the Council for Promoting Tourism in Asia (CPTA) opened on September 6 with the participation of member cities including Tokyo, Kuala Lumpur, Jakarta, Taipei, Manila and Hanoi.

During the four-day meeting, representatives will review recent activities, discuss new projects, work on tourism development, enhance the responsibilities of state tourism management agencies and strengthen cooperation between municipal governments and tourism agencies, as well as other issues related to the cooperation and promotion of the ‘Welcome to Asia’ campaign.

“With a history of 1000 years, Hanoi has the potential to develop its tourism industry. The city attached special importance to the CPTA. Since its establishment 16 years ago, the CPTA has proved its adaptability to global development,” said Vice Chairman of the Hanoi People’s Committee Ngo Van Quy during a working session.

President of the CPTA Yuji Fujita said the focus of the meeting was to work on more effective policies and activities to attract more tourists to Asia’s cities.

He said he hoped the delegates would contribute to stronger and more effective cooperation in tourism development in Asia.

This is the fourth time Hanoi has hosted this event, which is expected to help the city lure more international visitors.

On September 7 and 9, there will be a tourism promotion meeting and a tourism exposition of member cities of CPTA.

On September 9, participants will visit the Ho Chi Minh Mausoleum, the Temple of Literature, the Thang Long Royal Citadel and Bat Trang pottery village.

The CPTA includes State tourism management agencies from 10 member cities of the Asian Network of Major Cities 21 (ANMC21): Tokyo, Bangkok, New Delhi, Kuala Lumpur, Jakarta, Seoul, Taipei, Manila, Tomsk and Hanoi.

In the first six months of 2018, Hanoi welcomed more than 13 million visitors, a 10 per cent increase compared to the previous year, among which were 3 million foreign tourists. Total tourism revenue during the period reached an estimated 40 trillion VND (1.7 billion USD).

Industry 4.0’s opportunities, challenges to heat up WEF ASEAN

The World Economic Forum on ASEAN (WEF ASEAN), slated for September 11-13 in Hanoi, will offer a chance for countries to share experience in utilising opportunities and addressing challenges generated by the fourth Industrial Revolution. 

Chargé d'Affaires of the Singaporean Embassy in Vietnam Tan Wei Ming said the event’s theme “ASEAN 4.0: Entrepreneurship and the fourth Industrial Revolution” matches the priorities of the WEF and the Association of Southeast Asian Nations (ASEAN).

ASEAN can adapt to new conditions, he said, suggesting the ten-member group equip its residents with skills and knowledge and improve the quality of human resources among its member nations. 

Besides, ASEAN should focus on innovation and self-resiliance to meet the requirements of the fourth Industrial Revolution and a changing world, apply new technologies and ensure that none are left behind during development, the diplomat said. 

ASEAN is the world’s sixth largest economy with a combined population of 630 million, of whom 260 million are internet users. The number is expected to climb to 480 million in 2020. 

About 60 percent of Vietnam’s 93-million population are under 35 years old and able to quickly access new technologies, with 55 percent of the population internet users. 

The country is striving to become one of the top ten software outsourcing providers in the world, with about 1 million labourers in the information-technology sector. 

Google and Temasek Foundation International forecast that the internet economy of Southeast Asia will hit 200 billion USD by 2025, equivalent to 6 percent of regional GDP. 

Vietnamese Deputy Foreign Minister Bui Thanh Son suggested governments of ASEAN countries and businesses focus on self-resilience and seek new solutions to adapt to a world driven by new technologies. 

Vietnam is gearing towards sustainable development through improving growth quality and utilising opportunities of the fourth Industrial Revolution to improve productivity and competitiveness, moving higher up the global value chain, he said. 

Phan Hoang Lan, head of the Department of Market Development and Science-Technology under the Ministry of Science and Technology, listed several mechanisms and policies approved and issued by Vietnamese Prime Minister Nguyen Xuan Phuc to support startups. 

She gave the example of a decision to support the national innovative startup ecosystem under which most of the startups focus on information and communication technology (ICT) and IT in general. 

The International Labour Organisation (ILO) estimated about 56 percent of labourers in the five ASEAN member countries of Malaysia, Indonesia, the Philippines, Thailand and Vietnam are facing the risk of being replaced by new technologies in the next two decades. 

Justin Wood, head of the Asia-Pacific region of the WEF, told Vietnam News Agency the fourth Industrial Revolution will impact all countries worldwide at different levels. 

He said low production costs and cheap labour will no longer aid the competitiveness of countries like Vietnam, suggesting these nations prove their competitiveness in other spheres. 

The WEF ASEAN 2018 is expected to feature 60 discussions, focusing on issues regarding governments, businesses and residents in ASEAN amidst the fourth Industrial Revolution.

Emirates, Jetstar Pacific announce codeshare partnership

The Dubai-based carrier, Emirates, and Jetstar Pacific have announced a new codeshare agreement, expanding their existing partnership.

The new partnership allows Emirates passengers to enjoy smooth connectivity on domestic flights within Vietnam, in addition to flights connecting Vietnam to Singapore, Thailand as well as Australia.

The new codeshare services from Ho Chi Minh City and Hanoi will connect Emirates passengers to 14 Vietnamese cities.

Emirates will also operate codeshare flights with Jetstar Pacific between the latter’s HCM City hub and Singapore and Bangkok, both of which serve as connections for Emirates passengers continuing their travel to Brisbane, Melbourne or Sydney.

The two carriers said the codeshare partnership will give customers the simplicity of purchasing connecting flights using one reservation, and a smooth ticketing, check-in, boarding, and baggage check experience during the entire journey. 

“We are pleased to further extend our partnership with Jetstar Group to include Jetstar Pacific, allowing Emirates’ customers to benefit from enhanced connectivity to numerous destinations in Vietnam and beyond,” Adnan Kazim, Emirates’ divisional senior vice president of strategic planning, revenue optimisation and aeropolitical affairs, said.

Alan McIntyre, Jetstar executive manager, networks and partnerships, said this was another exciting announcement for Emirates and Jetstar, as they continue to grow and develop their valuable partnership.

Emirates currently operates codeshare flights to 23 sectors with Jetstar and 12 sectors with Jetstar Asia.

Jetstar Pacific cancels more flights between Vietnam and Japan

Low-cost airline Jetstar Pacific announced on September 6 that it will cancel four additional flights to Japan on September 7 and 8 due to the super Typhoon Jebi, which is ravaging Japan and has forced Kansai International Airport in the west to close for repair.

The cancelled flights are BL164 from Da Nang to Osaka and BL621 from Osaka to Hanoi on September 7; as well as BL620 from Hanoi to Osaka and BL165 from Osaka to Da Nang on September 8.

Earlier, on September 5, Jetstar Pacific had announced that it would suspend all services to/from Osaka until the end of September 6. The budget airline will continue to cancel these four flights – namely BL620 and BL621 between Hanoi and Osaka, and BL164 and BL165 connecting Da Nang and Osaka on September 5-6.

Passengers can keep track of updates or seek support via Jetstar Pacific’s hotline 19001550. 

Vietnam Airlines has also announced that it will cancel four more flights (VN330, VN331, VND320, and VN321) from Hanoi and Ho Chi Minh City to Osaka and vice versa.

The carrier has cancelled a total of 12 flights so far since September 4 due to the temporary shutdown of the Osaka-based airport.

The airport, one of Japan's transport hubs, is a key gateway to the Kansai region (which includes the prefectures of Osaka, Kyoto and Hyogo) and has seen growing numbers of foreign travelers from Asia in recent months.

Over 200 flights were canceled on September 5 due to the airport closure, affecting over 30,000 people.

All Nippon Airways Co. has stopped selling tickets for flights to/from the Kansai airport until next Tuesday and Japan Airlines Co. has decided to add extra flights via another transport hub, Narita airport near Tokyo.

On a typical day, around 80,000 travelers use the Kansai airport – which is rising with the growing travel demand from foreign travelers flying budget airlines.

At one point on September 5, more than 5,000 people were stranded after a tanker smashed into a bridge linking the airport and the mainland of Osaka Prefecture. Many of them were transported away from the airport by high-speed boats.

Domestic flights at the typhoon-damaged Kansai International Airport in western Japan will resume Friday, Prime Minister Shinzo Abe said on September 6.

International flights will also restart as soon as the airport in Osaka is ready, Abe told a meeting held at his office. The previous day, airport officials had said that it may take about a week to fully reopen the airport if there is serious damage to its runways and facilities.

Jebi is the strongest storm to hit Japan in 25 years after a super typhoon attacked the country in 1993 and left 48 people dead and missing. It landed in Japan on September 4 and caused serious flooding in Kansai airport.

8M trade turnover at over $308 bn

Total trade turnover reached more than $308 billion in the January - August period, a year-on-year increase of 13 per cent, the Vietnam News Agency quoted the General Department of Vietnam Customs as reporting.

Total export value stood at $155.4 billion, up 14.5 per cent year-on-year. The domestic economic sector recorded a year-on-year increase of 17.4 per cent to $45.11 billion while the FDI sector earned $110.3 billion, an increase of 13.4 per cent.

The FDI sector saw lower growth in export value against the domestic sector but still accounted for 71 per cent of total export value.

Many key exports recorded high annual growth, such as phones and parts, up 15.7 per cent to $30.9 billion, and electronic products, computers and components, up 14.2 per cent to $18.4 billion.

The export value of garments was estimated at $19.42 billion, an increase of 14.9 per cent compared to the same period last year.

Vietnam also saw strong annual growth in certain agriculture products, including fruit and vegetables (up 14.8 per cent to $2.7 billion) and rice (up 23.6 per cent to $2.2 billion).

The export value from some commodities, however, declined due to falling global prices. Coffee fell 3.1 per cent in value to $2.5 billion, though increasing 14.8 per cent in volume, while rubber fell 12.1 per cent in value to $1.2 billion, despite rising 7.9 per cent in volume. Pepper, though rising 4.7 per cent in volume, fell 35.7 per cent in value to $584 million.

Crude oil exports fell in both volume and value by 46.6 per cent and 24.6 per cent, respectively, compared with the same period last year.

Meanwhile, the country’s imports rose 11.6 per cent year-on-year to $152.6 billion. The domestic sector recorded $61.85 billion, up 11.8 per cent, while the FDI sector recorded $90.81 billion, up 11.4 per cent.

Imports mainly served production of exports in the FDI sector. The country imported $26.9 billion worth of electronic products, computers and components, up 13.7 per cent, $9.3 billion worth of phones and parts, up 4.3 per cent, and $8.5 billion worth of fabric, up 16.1 per cent.

Others used in domestic production saw high growth, including steel (up 10.2 per cent to $6.7 billion), plastics (up 17.1 per cent to $5.8 billion), petrol and oil (up 26.4 per cent to $5.7 billion), metal products (up 35.9 per cent to $5.3 billion), and chemical products (up 26.3 per cent to $3.3 billion).

Vietnam therefore recorded trade surplus of an estimated $2.75 billion in the first eight months.

Car imports sharply increase

Vietnam imported 11,150 cars in August, representing a record-high figure so far this year, according to the General Department of Customs.

During the week of August 24-30 alone, Vietnam imported around 3,089 cars valued at USD59.27 million. Of the figure, cars from Thailand and Indonesia dominated. 

Cars below nine seats accounted for 2,129 units, making up 69% of the country’s total imported cars in the week. Different truck models were second at 900 units. Meanwhile, during the week, only 31 vehicles of more than nine seats were imported into Vietnam.

Although more cars from ASEAN countries have been imported into Vietnam after the import tax for cars imported from ASEAN was slashed to 0% from January 1, 2018, cars which have been used for 1-2 years have still sold well.

Unlike luxury cars which have been used for many years, prices of second hand cars have fallen from between VND50 million (USD2,272) and VND100 million (USD4,545) and are popular with middle-income buyers.

According to Kenichi Horinouchi, director of Mitsubishi Motors Vietnam, the Vietnamese automobile market has seen an impressive growth which is expected to outperform Malaysia and Singapore in the coming time, to rank the fourth position in Southeast Asia in terms of car sales just behind Thailand, Indonesia and the Philippines.

Experts said that the car sales growth in Vietnam is attributed to the country's economic growth. After some years of slower economic growth, the Vietnamese economy is looking stronger again, and Vietnam’s income per capita is reaching a stage where increasing car ownership is to be expected.