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Vietnam ecommerce startup Leflair accused of owing $2mn in liabilities after surprise closure

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3 years ago

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Vietnam-based ecommerce company Leflair has shuttered its office while being alleged to owe US$2 million in liabilities to about 500 suppliers and many customers.

Leflair, an online platform that sourced goods from brands and official distributors and resold them to Vietnamese customers, has ceased its local business operations since the beginning of February, according to a notice sent to its suppliers about the closure.

Founded in December 2015, Leflair followed the flash-sales model that has proven successful in Europe with Vente-privee.com from France being an instance.

The startup offered a wide range of worldwide branded merchandise, from fashion and beauty to home, such as Calvin Klein, Botanist and Moleskin, to Vietnamese consumers at attractive prices.

According to the suppliers, Leflair representatives admitted at a meeting with them that the company was subject to a capital crunch and seeking funding from different investors.

Particularly, the ecommerce platform owes $2 million in outstanding debts to about 500 merchants while having less than $50,000 in its cash account.

The firm has since also tried to offer the suppliers some options to resolve the debts.

A supplier for Leflair told Tuoi Tre (Youth) newspaper that the company promised to pay all the debts and continue its ecommerce platform once it could reach a purchase deal with investors.

However, suppliers now feel worried after they found out that Leflair’s office in District 10, Ho Chi City, has been closed since Sunday.

Its website leflair.vn has also been inoperative with only a message “Thank you & See you soon!” seen on its front page as of Tuesday morning.

The company had previously promised to pay off its debts to suppliers before shutting down the website.

Leflair's office in District 10, Ho Chi Minh City, is closed as of March 1, 2020. Photo: J.S.
Leflair’s office in District 10, Ho Chi Minh City, has been closed as of March 1, 2020. Photo: J.S.

Leflair also allegedly owes salary to its employees and money to its customers, failing to reimburse buyers for recent orders canceled by the company despite having accepted payments for the orders.

Hong, a Leflair customer who had paid for three orders worth VND2.2 million ($94.86) made on Leflair, told Tuoi Tre she has so far been unable to contact the company for a refunD.

Since its foundation, Leflair has targeted the rising middle class in Vietnam who are willing to pay for premium products.

It most recently raised $7 million in series B funding from Belt Road Capital Management and South Korean retailer GS Shop. 

Leflair had also raised about $5 million from investors including Capital Management Group, AME Ventures, Hong Kong-based Caldera Pacific and, international angel investors.

Vietnam’s e-commerce landscape has seen several instances of companies merging or winding up operations in recent years.

Local conglomerate Vingroup and South Korea’s Lotte merged their marketplace websites with other units, claiming to pursue a new retail model. 

While Vingroup merged the Adayroi website with its fintech arm VinID, Lotte blended its marketplace lotte.vn with SpeedL, the online version of its supermarket chain. 

MobileWorld Group shut down its e-commerce unit Vuivui.com while Thai Central Group’s Robins Vietnam closed its online fashion store. 

Furthermore, Vietnam witnessed a spate of closures including Beyeu, Deca, Lingo, Hotdeal and Muachung back in the 2016-17 period.

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Source: Tuoitrenews.vn (https://tuoitrenews.vn/news/business/20200303/vietnam-ecommerce-startup-leflair-accused-of-owing-2mn-in-liabilities-after-surprise-closure/53278.html)

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UNIQLO to open in Binh Duong in spring/summer 2023

UNIQLO, the Japanese global apparel retailer, has announced its expansion in the southern province of Binh Duong, marking further growth for the brand’s presence in Viet Nam.

Published

8 hours ago

on

March 23, 2023

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UNIQLO will begin recruiting local talent as it prepares to open its store in one of the region’s most exciting, high-growth economies.

With a strong GDP growth rate and located in the centre of the southern key economic region and next to HCM City, Binh Duong has become the industrial hub of the country with outstanding infrastructure.

UNIQLO’s store will open in AEON MALL Binh Duong Canary, one of the biggest malls with full utilities for different target audiences, especially families.

“Three years with three cities, 15 stores and UNIQLO Online is a remarkable journey for us thanks to the continued strong support from customers and local communities. Our entry into Binh Duong is the next exciting milestone for everyone at UNIQLO Vietnam. We look forward to introducing UNIQLO and our high quality, affordable LifeWear apparel in Binh Duong, and continue to make a positive contribution to the economy and communities where we operate,” said Osamu Ikezoe, General Director and Chief Operating Officer, UNIQLO Vietnam.

Source: Viet Nam News

Source: https://e.nhipcaudautu.vn/companies/uniqlo-to-open-in-binh-duong-in-springsummer-2023-3351265/

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Renewable power investors seek PM’s help to quell fear of financial distress

Published

11 hours ago

on

March 23, 2023

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Thirty-six renewable power investors have petitioned the prime minister to consider addressing pricing-related inadequacies in renewable power development that left 34 solar and wind power plants unable to sell their electricity to state-owned Vietnam Electricity Group (EVN).

These investors, in a petition recently sent to Vietnam’s Prime Minister Pham Minh Chinh, said that the impact of the COVID-19 pandemic resulted in 84 renewable power projects, with a total capacity of some 4,600 MW, lagging behind schedule to achieve commercial operation.

Among these, 34 projects, comprising 28 wind farms and six solar plants with a total capacity of more than 2,000 MW, are eligible to connect to the national power grid, but their investors have had to wait for a new pricing mechanism, which provides a foundation for renewable power investors and the national electricity buyer EVN to process power purchase agreements.

Six solar power projects have been waiting for a new pricing mechanism for more than 26 months, while 28 wind farms have been waiting for around 16 months. 

The total investment for these 34 projects, which have reached completion but have yet to connect with the national grid, amounts to an estimated VND85 billion (US$3.6 billion), with VND58 billion ($2.45 billion) borrowed from banks.

Therefore, the investors said they are facing a risk of financial woes, adding that corporate debts would rise and banks would find it hard to recover capital.

If the pricing mechanism for solar and wind power projects remains ineffective in the long run, the development of such projects could grind to a halt, thereby resulting in energy insecurity and a lower chance of fulfilling the government’s commitments on energy transformation and carbon dioxide emission reduction.

Direct power purchase mechanism proposed

To remove obstacles facing the 34 projects, renewable power investors proposed the government leader ask the Ministry of Industry and Trade to study and introduce a new pricing policy for them.

In addition, the investors suggested hiring independent consultants to work out a price bracket for renewable electricity, strictly following requirements of an advisory council and the Ministry of Finance to ensure transparency.

Also, the price bracket must be worked out based on the internal rate of return of 12 percent as stipulated in the Ministry of Industry and Trade’s Circular 15 issued on October 2, 2022.

As for power purchase contracts, the investors of these 34 wind and solar farms suggested keeping policies to encourage the development of renewable energy that the government had issued previously.

According to the investors, the pricing policy for the projects should remain in place for 20 years. They sought the prime minister’s nod for the conversion of prices into U.S. dollars or for regulations on slippage in power generation.

They also proposed the prime minister direct relevant ministries and agencies to complete and issue a direct power purchase mechanism which would allow renewable power investors to sell their electricity to those in need.

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Thirty-six renewable power investors have petitioned the prime minister to consider addressing pricing-related inadequacies in renewable power development that left 34 solar and wind power plants unable to sell their electricity to state-owned Vietnam Electricity Group (EVN).

These investors, in a petition recently sent to Vietnam’s Prime Minister Pham Minh Chinh, said that the impact of the COVID-19 pandemic resulted in 84 renewable power projects, with a total capacity of some 4,600 MW, lagging behind schedule to achieve commercial operation.

Among these, 34 projects, comprising 28 wind farms and six solar plants with a total capacity of more than 2,000 MW, are eligible to connect to the national power grid, but their investors have had to wait for a new pricing mechanism, which provides a foundation for renewable power investors and the national electricity buyer EVN to process power purchase agreements.

Six solar power projects have been waiting for a new pricing mechanism for more than 26 months, while 28 wind farms have been waiting for around 16 months. 

The total investment for these 34 projects, which have reached completion but have yet to connect with the national grid, amounts to an estimated VND85 billion (US$3.6 billion), with VND58 billion ($2.45 billion) borrowed from banks.

Therefore, the investors said they are facing a risk of financial woes, adding that corporate debts would rise and banks would find it hard to recover capital.

If the pricing mechanism for solar and wind power projects remains ineffective in the long run, the development of such projects could grind to a halt, thereby resulting in energy insecurity and a lower chance of fulfilling the government’s commitments on energy transformation and carbon dioxide emission reduction.

Direct power purchase mechanism proposed

To remove obstacles facing the 34 projects, renewable power investors proposed the government leader ask the Ministry of Industry and Trade to study and introduce a new pricing policy for them.

In addition, the investors suggested hiring independent consultants to work out a price bracket for renewable electricity, strictly following requirements of an advisory council and the Ministry of Finance to ensure transparency.

Also, the price bracket must be worked out based on the internal rate of return of 12 percent as stipulated in the Ministry of Industry and Trade’s Circular 15 issued on October 2, 2022.

As for power purchase contracts, the investors of these 34 wind and solar farms suggested keeping policies to encourage the development of renewable energy that the government had issued previously.

According to the investors, the pricing policy for the projects should remain in place for 20 years. They sought the prime minister’s nod for the conversion of prices into U.S. dollars or for regulations on slippage in power generation.

They also proposed the prime minister direct relevant ministries and agencies to complete and issue a direct power purchase mechanism which would allow renewable power investors to sell their electricity to those in need.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230316/renewable-power-investors-seek-pms-help-to-quell-fear-of-financial-distress/72111.html

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Novaland Appoints new Chief Executive Officer

According to the newest announcement, Mr. Dennis Ng Teck Yow takes the role of Chief Executive Officer of Novaland, replacing Mr. Nguyen Ngoc Huyen.

Published

21 hours ago

on

March 22, 2023

By

Mar 17th, 2023, No Va Land Investment Group Corporation (Novaland, ticker: NVL) issues a resolution No. 18/2023-NQ.HĐQT-NVLG of Board of Directors on appointing Mr. Dennis Ng Teck Yow as Chief Executive Officer of Novaland.

According to the newest announcement, Mr. Dennis Ng Teck Yow takes the role of Chief Executive Officer of Novaland, replacing Mr. Nguyen Ngoc Huyen. 

With nearly 30 years of experience, Mr. Dennis Ng Teck Yow has held a variety of senior leadership positions in business strategy development, project investment and development, team development, financial analysis and planning…at domestic and international real estate investment companies.

Currently under challenging circumstances, Novaland has been focusing on completing key projects, property handover to customers in accordance with timeline, flexible construction planning based on actual situations.

Novaland is negotiating with credit institutions to arrange sources of funding while concurrently strives to work with local authority to promptly solve and complete the legal process of projects. The Company keeps focused on completing economic urban areas which contributes in changing aspects and social security in the provinces where Novaland has invested. With all available resources, the company always strives to balance customers, investors and stakeholders’ interests.

NovaWorld Phan Thiet (Binh Thuan Province) with total scale of 1.000 hectares has been put phase 1 into operation
NovaWorld Phan Thiet (Binh Thuan Province) with total scale of 1.000 hectares has been put phase 1 into operation.

Mr. Dennis Ng Teck Yow holds an MBA Degree from Hull University, United Kingdom. He is also a member of various international associations of finance, banking and construction.He has years of experience in leading the implementation of commercial projects, residential projects, integrated urban areas, etc. following domestic and international standards. He has also held senior positions at international corporations across sectors such as business strategy development, human resource development, investment appraisal, finance, accounting…

Prior to his appointment as CEO of Novaland Group, Mr. Dennis Ng Teck Yow was the CEO of Gamuda Land LLC Vietnam.

Source: https://e.nhipcaudautu.vn/companies/novaland-appoints-new-chief-executive-officer-3351279/

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