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VinCommerce speeds up restructure, names new deputy general director

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A VinMart employee arranges processed food products in a VinMart supermarket. VinCommerce is expected to start making profits in 2021. — Photo courtesy of Masan

HCM CITY — Masan Group has appointed Nguyễn Thị Phương as permanent deputy general director of VinCommerce (VCM), which it acquired last year.

She is in charge of developing VinMart into the No 1 supermarket chain in Việt Nam.

The enhancement of the senior management team is one of Masan’s restructuring efforts to improve the operational efficiency of the VinMart/VinMart + retail systems.

In the one year since the merger with the Masan Group, VinMart and VinMart+ have achieved outstanding business results.

VinCommerce achieved revenues of VNĐ23.678 trillion (US$1.02 billion) in the first nine months of this year, accounting for 42.5 per cent of Masan’s total revenues of more than VNĐ55.6 trillion ($2.29 billion).

The VinMart+ convenience store chain recorded year-on-year increases of 38.4 per cent in revenues in the third quarter and 56.5 per cent in the first nine months.

In the first nine months Masan closed a number of supermarket outlets and convenience stores that did not meet profit targets.

VinMart+ stores and VinMart supermarkets that were closed had revenues per square metre of nearly 50 per cent lower than the level required to reach breakeven.

One VinMart supermarket and 57 VinMart + stores were opened in the first three quarters.

VinMart+ stores featuring new display models have been launched in HCM City and Hà Nội to offer more fresh products and improve the customer experience, thereby helping it understand consumer behaviour and come up with more eye-catching display models at its upcoming stores.

VinMart and VinMart+ are heading towards breakeven in the fourth quarter of 2020, paving the way for strong expansion in the time to come and likely profits starting in 2021.

VinCommerce targets having over 300 VinMart supermarkets and nearly 10,000 VinMart+ convenience stores by 2025 across 63 provinces and cities nationwide.

The goods supply chain for VinMart & VinMart+ will continue to be properly invested based on international standards, have close co-operation with major partners and reputed local suppliers to change the product portfolio to meet consumers’ requirements in each region, and ensure abundant supply of goods as well as the most fresh and delicious foods to satisfy demand in all segments from affordable to high-end.

More than 70 per cent of products sold at VinMart are locally made, which is in line with the desire to help foster domestic production.

Last month VCM announced plans to identify the Top 100 strategic partners who would join hands to develop Việt Nam’s modern retail industry in a sustainable manner.

These partners shared its goals like providing superior quality products and those with clear origins.

The co-operation between the leading modern retail system in Việt Nam and its supply partners has leveraged the synergies between the domestic retail sector and producers to increase the market share of Vietnamese products in the domestic market and expand their presence in regional markets.

After focusing on improving the core issues of the VinMart + store model, VCM is continuing to improve its Vinmart supermarket model.

Investing in human resources is one of the strategies to provide a fillip to the two chains. VCM believes having a talented team with the spirit of serving consumers is the key factor in achieving transformation and bringing breakthrough values to consumers and shareholders.

Phương has more than 17 years of experience in the retail sector and held important positions at multinational corporations such as Central Retail Vietnam and Metro Cash & Carry. —

Source: https://vietnamnews.vn/economy/820079/vincommerce-speeds-up-restructure-names-new-deputy-general-director.html

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“Vietnam is an attractive market for premium banking services” says Nuno Matos, Chief Executive Officer, Wealth and Personal Banking, HSBC

The explosion of the middle class marks huge potential to serve the affluent retail banking segment in Vietnam.

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The driven, young, rising middle-class population in the fastest-growing economy in the region, is making Vietnam an attractive market for premium banking and wealth services. Mr. Nuno Matos, Chief Executive Officer, Wealth and Personal Banking at HSBC, explains.

What’s your view on Vietnam’s wealth and personal banking market? 

Vietnam’s population is approaching 100 million people, and its economy is growing at a rapid pace, averaging 6% to 7% per year spurred by trade, strong FDI, and favorable demographics. One of the core factors is the country’s growing ‘middle segment’. Our own research shows that over two million Vietnamese may well own at least USD500,000 in wealth by the end of the decade, surpassing Singapore’s total. Moreover, the recent Knight Frank 2022 Wealth Report forecasts a 56% surge in Vietnam’s high-net-worth population and a 26% increase in ultra-high-net-worth individuals from 2021 to 2026.

Rising incomes translate into affluence and in turn, evolving needs across all segments of society. We expect this structural growth to precipitate demand for banking and wealth products and solutions. This is a compelling opportunity to be our customers’ financial partner as they progress in their wealth journey.

What is the driving force for Vietnam to enjoy such impressive economic growth?

 

We can attribute this growth to the culmination of a number of drivers. Foreign direct investments continue to flow into the country at a critical time for global supply chains, leveraging the Government’s initiatives aimed at welcoming international investors as well as its current emphasis on national core industries after two years of pandemic-related disruption.

I would also point to the emphasis that Vietnam’s Government is placing on “green growth” in the face of huge challenges caused by climate change. Last year at COP26, Vietnam took the important step of committing to net zero by 2050. We are very pleased to support these initiatives, in part through our commitment to arrange up to USD12 billion of direct and indirect sustainable financing for Vietnam and the corporate sector in Vietnam by 2030.

In summary, I believe the direction of the movement is positive and that Vietnam will realize its target to become a high-income country by 2045.

Could you please evaluate the potential of the affluent customers in Vietnam in comparison to other countries in the region?

It’s fair to say that the growth of the affluent population in Vietnam and, indeed, across Southeast Asia, presents a real opportunity for us to expand our affluent client base over the coming years in line with our ambition to become Asia’s leading wealth manager for the full spectrum of customers.

This is a multi-year ambition, backed by over USD3.5 billion in investments from HSBC, with Vietnam as a beneficiary as we expand and deepen our presence throughout Southeast Asia and the wider region.

This level of commitment reflects our bullishness towards Asia as a whole, where we continue to believe that wealth growth will outpace the rest of the world making it one of the most compelling opportunities in consumer banking today. Our results reinforce this view. For example, Asia accounted for 89% of the USD32 billion of net new invested assets our Wealth business brought in globally in the third quarter of this year.

What’s HSBC’s plan for Vietnam’s market in the upcoming time?

Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. We are doubling down on our strategy to serve the country’s middle-class and affluent populations with the needs of family and global mobility privileges. With a strong international proposition and best-in-class Premier Relationship Managers, we continue to provide a well-rounded suite of banking and wealth management solutions worldwide to cater to the aspirations that our customers are building for themselves and their families.

We have also observed increased spending and borrowing by the middle class and affluent segments. Our aim is to become a leading player in Vietnam’s credit card market.

Similarly, given Vietnam’s rapid rate of urbanization, housing demand will continue to increase. And in a country and culture where home ownership is a priority, we aim to serve this need through our mortgage business.

What’s your view on the next generation of consumers – Gen Z?

Undoubtedly, the next generation is tech-savvy. These are customers who embrace digital banking, they embrace very agile ways of interacting with banks, and they are very much engaged in sustainability, especially with their increased awareness of climate change and its impact.

It’s important to recognize today that with Gen Z, a new type of consumer culture is emerging and that these customers will constitute the majority of the Vietnamese population in 20 years’ time.

We are acting today for tomorrow. We are digitalizing all our services and processes – front-to-back – to ensure that every service a customer requires can be accessed through their mobile phone. But, of course, when a customer needs to speak with someone for advice and a smile, they can still go to one of our branches.

Could you please share with us the key trends that are shaping the future of the retail banking market? 

I would highlight three key trends. The first, as I have discussed, is the rise of the middle class. Currently, Vietnam’s GDP per capita stands at around US$3,600 with a growth rate of 10%. This indicates a population with rapidly developing wealth needs spanning investments, planning, and protection. As with similar markets, we would also expect to see growing sophistication in those wealth needs, for example, demand for a wider range of investments for portfolio diversification.

Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. Photo credit: Quy Hoa
Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. Photo credit: HSBC

The second trend is the digitalization of banking services. Customers want the option of banking from the comfort of their homes or on the go, on their mobile devices. Our consumers are quick to adapt to contactless, online ways of fulfilling their consumption needs. They are also more comfortable communicating and collaborating virtually. That’s why everything we do today goes mobile-first. Our model is people plus technology.

The third is the rise of ESG and the critical need to think and act sustainably. The banking industry has an important role to play in financing a net zero economy. This includes helping individuals make more responsible consumption and investment decisions that contribute to a sustainable society.

Source: https://e.nhipcaudautu.vn/companies/vietnam-is-an-attractive-market-for-premium-banking-services-says-nuno-matos-chief-executive-officer-wealth-and-personal-banking-hsbc-3349329/

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Firm jointly established by Vietnam’s Kido, Vinamilk disbanded

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Vietnamese dairy giant Vietnam Dairy Products JSC (Vinamilk) and packaged food producer Kido Group Corporation announced the dissolution of their ice cream and non-alcoholic beverage joint venture, Vibev Food and Beverage Joint Venture Company Limited, after nearly two years of operation.

The dissolution decision was announced by Kido Group Corporation chairman Tran Kim Thanh and Vinamilk CEO Mai Kieu Lien.

Thanh attributed the dissolution to “the impact of the global economy, unpredictable fluctuations in the domestic market, and changes in Kido Group’s development orientations.”

Meanwhile, Vinamilk CEO Lien said Vibev was scrapped due to changes in business development orientations of both Vinamilk and Kido.

As publicized by the Ho Chi Minh City Stock Exchange (HoSE) early this month, Vinamilk will work with Kido and Vibev with a spirit of cooperation to complete dissolution procedures in line with the law.

Vinamilk and Kido on June 9, 2020 announced the establishment of their joint venture Vibev, specializing in manufacturing and trading beverages, such as tea, milk tea, ice cream, and frozen food.

On March 1 last year, Vibev was officially founded with an initial investment of VND400 billion (US$16.4 million), to which Vinamilk and Kido contributed VND204 billion ($8.4 million) and VND196 billion ($8 million), or 51 and 49 percent, respectively.

At the time, Vibev general director Mai Xuan Tram said that the non-carbonated beverage sector in Vietnam had extreme potential. Most suppliers of fresh drinks were small with low technology and operated on a small scale.

Therefore, the joint venture was expected to dominate the market based on the strengths of Vinamilk and Kido, thus becoming a leading company in non-alcoholic beverages in Vietnam.

According to Kido’s consolidated financial report, its investment in Vibev fell to VND160 billion ($6.6 million) at the end of the third quarter of this year but its holding was still maintained at 49 percent. 

It can be inferred that Vibev has suffered from an accumulated loss of nearly VND73 billion ($3 billion) after nearly two years of operation.

A report by SSI Securities Corporation showed that although the input cost increase has not been completely reflected in the consumer price index (CPI) of Vietnam, consumers can see the price hikes.

Food and beverage enterprises have increased the sale prices of their products by 2-10 percent on average.

The prices of these firms’ key input materials have also risen over the same period last year, such as flour by 30-40 percent, sugar by 30 percent, soybeans by 20 percent, and palm oil by 44 percent.

The beverage market witnessed intense competition among local and international brands.

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Vietnamese dairy giant Vietnam Dairy Products JSC (Vinamilk) and packaged food producer Kido Group Corporation announced the dissolution of their ice cream and non-alcoholic beverage joint venture, Vibev Food and Beverage Joint Venture Company Limited, after nearly two years of operation.

The dissolution decision was announced by Kido Group Corporation chairman Tran Kim Thanh and Vinamilk CEO Mai Kieu Lien.

Thanh attributed the dissolution to “the impact of the global economy, unpredictable fluctuations in the domestic market, and changes in Kido Group’s development orientations.”

Meanwhile, Vinamilk CEO Lien said Vibev was scrapped due to changes in business development orientations of both Vinamilk and Kido.

As publicized by the Ho Chi Minh City Stock Exchange (HoSE) early this month, Vinamilk will work with Kido and Vibev with a spirit of cooperation to complete dissolution procedures in line with the law.

Vinamilk and Kido on June 9, 2020 announced the establishment of their joint venture Vibev, specializing in manufacturing and trading beverages, such as tea, milk tea, ice cream, and frozen food.

On March 1 last year, Vibev was officially founded with an initial investment of VND400 billion (US$16.4 million), to which Vinamilk and Kido contributed VND204 billion ($8.4 million) and VND196 billion ($8 million), or 51 and 49 percent, respectively.

At the time, Vibev general director Mai Xuan Tram said that the non-carbonated beverage sector in Vietnam had extreme potential. Most suppliers of fresh drinks were small with low technology and operated on a small scale.

Therefore, the joint venture was expected to dominate the market based on the strengths of Vinamilk and Kido, thus becoming a leading company in non-alcoholic beverages in Vietnam.

According to Kido’s consolidated financial report, its investment in Vibev fell to VND160 billion ($6.6 million) at the end of the third quarter of this year but its holding was still maintained at 49 percent. 

It can be inferred that Vibev has suffered from an accumulated loss of nearly VND73 billion ($3 billion) after nearly two years of operation.

A report by SSI Securities Corporation showed that although the input cost increase has not been completely reflected in the consumer price index (CPI) of Vietnam, consumers can see the price hikes.

Food and beverage enterprises have increased the sale prices of their products by 2-10 percent on average.

The prices of these firms’ key input materials have also risen over the same period last year, such as flour by 30-40 percent, sugar by 30 percent, soybeans by 20 percent, and palm oil by 44 percent.

The beverage market witnessed intense competition among local and international brands.

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

Source: https://tuoitrenews.vn/news/business/20221205/firm-jointly-established-by-vietnams-kido-vinamilk-disbanded/70345.html

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Vietnam’s agro-forestry-fishery exports hit record high

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Vietnam raked in US$49 billion in export revenue from agro-forestry-fishery products between January and November of this year, exceeding the previous record of $48.6 billion set in 2021, according to the Ministry of Agriculture and Rural Development.

The ministry on Wednesday shared that Vietnam exported over $4.27 billion worth of agro-forestry-fishery products in November alone, down nearly five percent year on year.

During the same period, the country’s seafood export turnover hit $10.14 billion for the first time ever.

The Vietnam Association of Seafood Exporters and Producers (VASEP) will hold a ceremony to celebrate the milestone on December 10.

From January to November, there were eight commodities with export turnovers that surpassed $2 billion, including coffee ($3.5 billion, up 31.5 percent), rubber ($2.9 billion, up 3.2 percent), rice ($3.2 billion, up 6.9 percent), tra fish ($2.2 billion, up 61 percent), shrimp ($4.1 billion, up 14.6 percent), and wood and wooden products ($14.6 billion, up 9 percent).

Asian countries remained the largest importers of Vietnam’s agro-forestry-fishery products with nearly 45 percent of the market share, followed by America with 27 percent, and Europe with 11 percent.

As for importing countries, the U.S. took the lead with $12.3 billion.

China came in second with some $9.3 billion, followed by Japan with $3.9 billion, and South Korea with $2.3 billion. 

According to the Ministry of Agriculture and Rural Development, Vietnam, China’s unwillingness to end its zero-COVID policy will create a challenging future for Vietnamese farm produce for the foreseeable future. 

Moreover, due to the depreciation of China’s renminbi and Thailand’s baht over the Vietnam dong and U.S. dollar, China will likely increase imports from Thailand and reduce imports from Vietnam.

Meanwhile, Vietnam’s exports of wood pellets to the European Union (EU) remain low due to Europe’s strict origin traceability requirements.

The EU’s requirements for wood pellet imports are more stringent than those of Japan and South Korea, which is a significant challenge that will require Vietnamese exporters to improve their equipment and technology.

The Ministry of Agriculture and Rural Development will continue popularizing a protocol on the official export of Vietnamese durians to China, requirements for passion fruit exports to China, and requirements for pomelo exports to the U.S.

The ministry will also accelerate negotiations over a protocol on phytosanitary requirements for dragon fruit, longan, litchi, rambutan, and mango exports to China. 

It will also work with the General Administration of Customs of China to launch weekly online inspections into banana and durian batches shipped from Vietnam to its northern neighbor.

In addition, it will seek ways to remove technical and trade hindrances and pave the way for the export of Vietnamese products to other large and potential markets, such as Japan, South Korea, Myanmar, Australia, and New Zealand via official channels.

Specialized agencies will work with Japanese phytosanitary inspectors who come to Vietnam to check local dragon fruit, mango, and longan processing units in order to boost the export of these products.

The government assigned the Ministry of Agriculture and Rural Development an agro-forestry-fishery export revenue target of $50 billion this year.

If the export growth momentum is maintained in the last month of the year, the country’s agro-forestry-fishery exports this year will likely reach $53 billion.

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Vietnam raked in US$49 billion in export revenue from agro-forestry-fishery products between January and November of this year, exceeding the previous record of $48.6 billion set in 2021, according to the Ministry of Agriculture and Rural Development.

The ministry on Wednesday shared that Vietnam exported over $4.27 billion worth of agro-forestry-fishery products in November alone, down nearly five percent year on year.

During the same period, the country’s seafood export turnover hit $10.14 billion for the first time ever.

The Vietnam Association of Seafood Exporters and Producers (VASEP) will hold a ceremony to celebrate the milestone on December 10.

From January to November, there were eight commodities with export turnovers that surpassed $2 billion, including coffee ($3.5 billion, up 31.5 percent), rubber ($2.9 billion, up 3.2 percent), rice ($3.2 billion, up 6.9 percent), tra fish ($2.2 billion, up 61 percent), shrimp ($4.1 billion, up 14.6 percent), and wood and wooden products ($14.6 billion, up 9 percent).

Asian countries remained the largest importers of Vietnam’s agro-forestry-fishery products with nearly 45 percent of the market share, followed by America with 27 percent, and Europe with 11 percent.

As for importing countries, the U.S. took the lead with $12.3 billion.

China came in second with some $9.3 billion, followed by Japan with $3.9 billion, and South Korea with $2.3 billion. 

According to the Ministry of Agriculture and Rural Development, Vietnam, China’s unwillingness to end its zero-COVID policy will create a challenging future for Vietnamese farm produce for the foreseeable future. 

Moreover, due to the depreciation of China’s renminbi and Thailand’s baht over the Vietnam dong and U.S. dollar, China will likely increase imports from Thailand and reduce imports from Vietnam.

Meanwhile, Vietnam’s exports of wood pellets to the European Union (EU) remain low due to Europe’s strict origin traceability requirements.

The EU’s requirements for wood pellet imports are more stringent than those of Japan and South Korea, which is a significant challenge that will require Vietnamese exporters to improve their equipment and technology.

The Ministry of Agriculture and Rural Development will continue popularizing a protocol on the official export of Vietnamese durians to China, requirements for passion fruit exports to China, and requirements for pomelo exports to the U.S.

The ministry will also accelerate negotiations over a protocol on phytosanitary requirements for dragon fruit, longan, litchi, rambutan, and mango exports to China. 

It will also work with the General Administration of Customs of China to launch weekly online inspections into banana and durian batches shipped from Vietnam to its northern neighbor.

In addition, it will seek ways to remove technical and trade hindrances and pave the way for the export of Vietnamese products to other large and potential markets, such as Japan, South Korea, Myanmar, Australia, and New Zealand via official channels.

Specialized agencies will work with Japanese phytosanitary inspectors who come to Vietnam to check local dragon fruit, mango, and longan processing units in order to boost the export of these products.

The government assigned the Ministry of Agriculture and Rural Development an agro-forestry-fishery export revenue target of $50 billion this year.

If the export growth momentum is maintained in the last month of the year, the country’s agro-forestry-fishery exports this year will likely reach $53 billion.

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

Source: https://tuoitrenews.vn/news/business/20221203/vietnams-agroforestryfishery-exports-hit-record-high/70274.html

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