Raiders new players 2017

The Hanoitimes – Vietnam has long requested foreign social media platforms to restrict content that it considers potentially toxic and harmful to its interests.

Vietnam has advanced the fight against toxic content on the cyber space, with the quantity of violating content removed from Facebook and Google so far this year hitting a record high.

Facebook users in Vietnam in January 2020. Source: NapoleonCat

As of October 2020, Facebook removed 2,036 articles, up 500% from that in 2019, the Ministry of Information and Communications (MIC) said in a recent report sent to the National Assembly.

Facebook has removed 286 accounts that falsify profiles of the country’s leaders and disseminate fake news that incites subversion of state power, causes hostile, and defames the leaders, according to the report.

To give a hand to the fight against the Covid-19 pandemic, Facebook has removed 100% of fake news related to the global health crisis, including 11 accounts forging the Ministry of Health and 141 entries distorting the situation in Vietnam.

The rate by Google has reached 90% so far this year. In the first three quarter of 2020, Google’s YouTube has blocked and removed 10,877 videos out of 24,617 violating items from 2017 to September 2020.

In another move, between July 2017 and September 2020, Google has blocked access to 24 out of 62 YouTube channels that contain 11,212 defiant videos.

Apple Inc., meanwhile, has required app distributors on digital distribution platform App Store to get license by Vietnam’s authorities for their products. As a result, as many as 28 unlicensed and violating games have been removed at the MIC’s request.

The ministry attributed the results to its requesting Facebook and Google to follow Vietnam’s law in monitoring, minimizing, blocking and removing fake, harmful, defamatory, offensive or objectionable information.

In addition, disseminators of fake news in Vietnam have been strictly punished by the Vietnamese authorities.

Most-used social media platforms in Vietnam. Source: We Are Social and Hootsuite

Long-lasting request

Vietnam has for long requested Facebook and Google monitor and remove content that the country’s authorities reckon “inappropriate,” “distorting” and “slanderous”.

Minister of Information and Communications Nguyen Manh Hung, who ran military-run Viettel Group, a giant Vietnamese multinational telecommunications company headquartered in Hanoi, has vowed to make foreign social networks abide by Vietnamese law while facilitating their operations in the country.

Mr. Hung said in an interpellation at a session of the National Assembly in November 2019 that Vietnam welcomed foreign social network developers as long as they conform with Vietnam’s law.

Meanwhile, the minister has made efforts to promote locally-developed social networks that can compete with foreign peers.

Social Media Stats Vietnam September 2019-September 2020. Source: Statcounter

In Vietnam, entries on social network or pieces of news that are believed to be fake, harmful, defamatory, offensive or objectionable are subject to restrictions.

Early last year, Vietnam accused Facebook of violating a new cybersecurity law by allowing users to post anti-government comments on the platform.

The cybersecurity law that came into force early 2019 requires foreign companies such as Facebook and Google to set up representative offices and store data in Vietnam.

In the country of 97 million people, over 60 million use Facebook as the main platform for both e-commerce and expressions of their own views.

The number of users makes Facebook the unchallenged leader in Vietnam’s social media.

Unlike in Western countries, where Facebook’s popularity is decreasing among youth, Vietnamese teens remain loyal to the network.

More than 90% of Vietnamese social media users connect at least once a day to Facebook.

Before the surgery, the child, weighing only 16 kg, suffered from dilated cardiomyopathy and end-stage heart failure.

The patient received the heart from a 19-year-old brain-dead donor, with the surgery conducted on February 1.

The child’s mother thanked the family of the donor who, she said, has given her child a new life, and the dedication of doctors and nurses of the hospital.

This is the fifth heart transplant performed on a child at the hospital.

Viet Duc has performed five lung, 36 heart, 92 liver, and nearly 1,100 kidney transplants in total so far.

It is the leading center nationwide for collecting and transplanting organs. All patients are healthy and have returned to daily living.

In March 2017, a 10-year-old boy in Hanoi became the smallest heart transplant patient at that time. After getting the heart from a brain-dead donor, he is now in a stable condition.

Source: VNA

The Hanoitimes – Securities trading organizations should refrain from offering services in consulting, brokering, issuing or transacting crypto currencies, according to the State Securities Commission of Vietnam (SSC).

In a statement, the commission said the move is aimed at protecting investors as Vietnam currently does not have a legal framework to manage and deal with electronic money, virtual assets and currencies.

Deputy Prime Minister Vuong Dinh Hue has asked the Ministry of Justice and the State Bank of Vietnam (SBV) to quickly complete the legal framework and report to the government. The documents should be presented to the  government for consideration by the end of the month, according to the SBV.

The statement also referred to business activities of Fintech firms with regard to the fundraising method through initial coin offering (ICO), as well as other activities in relation to Vietnam’s stock market.

At present, there is a growing trend in Vietnam for Fintech firms to raise capital through ICO, crowdfunding or peer-to-peer lending. However, these activities pose high risks with no law available for protection.

SSC requested investors to remain cautious when investing in new products to minimize potential losses.

Virtual currencies, especially bitcoin, have sparked fever worldwide. In Vietnam, the bitcoin drew significant market attention despite experts’ warning about its risks and the lack of a management framework.

On October 30, 2017, SBV said virtual currencies are not a lawful means of payment, therefore, “as from January 1, 2018, the act of issuing, providing and using illegal means of payment (including bitcoin and other similar virtual currency) may be subject to prosecution in accordance with the provision of Article 206 of the Penal Code 2015”, SBV said in a  statement released on October 28.

As a ministry-level body of  the government responsible for managing monetary policies, supervising financial institutions and keeping the country’s foreign reserves, SBV urged citizens and enterprises to refrain from making transactions in bitcoin and other crypto currencies.

Given its extreme volatility and lack of regulation, crypto currencies in general and bitcoin in particular can pose potential risks to investors. On the other hand, as explained by the SBV, bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion and illegal payments.

China and South Korea recently announced moves to tighten the management of bitcoin. Vietnam could be the next country to issue strict regulations on crypto currencies.

The Hanoitimes – Suspension of flights between Vietnam and China leads to potential losses of 400,000 passengers per month and VND10 trillion (US$430 million) in revenue for Vietnamese airlines.

Vietnamese airlines served 870,000 foreign passengers in February, a decline of 39.5% year-on-year, while the suspension of flight routes between Vietnam and China could lead to a potential loss of over VND10 trillion (US$430 million) in revenue for the aviation industry.

Illustratiave photo.

In total, local airlines served 3.7 million passengers in February, down 13.7% year-on-year, including 870,000 foreign and 2.8 million domestic passengers, down 0.7%, data from the Civil Aviation Authority of Vietnam (CAAV) revealed.

Additionally, the number of passengers arriving at Vietnamese airports reached 8.1 million in February, down 11.6% year-on-year, including 2.4 millions of foreign passengers, down 29.8% and 5.7 million domestic passengers, falling by 0.7%.

On February 1, the CAAV announced its suspension of all flights between Vietnam and China at the request of Prime Minister Nguyen Xuan Phuc, a key measure to prevent the spread of Covid-19 epidemic.

As the number of flights between the two countries accounts for 26.1% of total number of international flights from airlines in Vietnam, the decision is predicted to cause losses of 400,000 passengers per month and over VND10 trillion (US$430 million) in revenue, stated the Ministry of Transport (MoT).

Subsequently, national carrier Vietnam Airlines, budget airlines Vietjet Air, Jetstar Pacific and Chinese airlines have to cancel a combined 80 flights per day. Notably, Vietnam Airlines has canceled 1,000 flights to and from the Chinese market in February, causing a loss of VND200 – 250 billion (US$8.61 – 10.76 million) in revenue per week. The carrier also estimated a 50% decline in the number of its international passengers transport, and even 70 – 80%  in passengers from East Asia during the period.

Subsequently, the suspension would affect revenue of domestic flights , not to mention additional costs for ticket refund and other preventive measures against the epidemic, among others.

In addition to airlines, companies in the aviation industry also face declines in revenue, including Airport Corporations of Vietnam (ACV) and Vietnam Air Traffic Management Corporation (VATM), following a cancellation of over flights between Vietnam and China.

Amid the complicated evolution of Covid-19, the MoT set up three scenarios for Vietnam’s aviation market. For the first scenario when Chinese authorities are able to contain the epidemic in April, total air passengers of to Vietnam would be around 80 million, up 1.1% year-on-year, and the number of passengers arriving at airports of 119 million.

However, in case China announces the containment of the epidemic in June, the market would handle 74.6 million passengers in 2020, down 5.7% year-on-year and the number of passengers via airports to reach 111.6 million, down 4.2%.

If China is free from the epidemic by August, the Vietnamese aviation market could lose up to 17.2% of passengers to 65.6 million, while the number going through airports is forecast to stay at 98.5 million, down 15.5%.

No-growth scenario for 2020

KB Securities previously predicted Vietnam major airlines such as national carrier Vietnam Airlines and budget airline Vietjet Air are predicted to face a no-growth scenario in 2020, due to slower growth or even a decline in the number of international tourists on fear of Covid-19.

This is not to mention the joining of new airlines in the aviation market, making the competition fiercer.

According to KB Securities, international flights accounted for 66% of revenue for Vietjet Air (2019) and 65% for Vietnam Airlines (2017). In recent years, major driving forces for local airlines mainly came from opening new international flight routes as the domestic market become saturated.

KB Securities expected the nCoV outbreak to cause severe consequences to the aviation industry and tourism similar to Severe Acute Respiratory Syndrome (SARS) from November 2002 to July 2003.

Countries in East Asia – Pacific witnessed a boom in their respective aviation industries during the 1999 – 2002 period with the average compound annual growth rate (CAGR) of 9.9%. However, SARS plummeted the growth number of tourists via air transportation to 0.7% in the region in 2003, however, the number rebounded strongly to 39% in 2004.

In case of Covid-19, KB Securities predicted the impact to be more difficult to evaluate for Vietnam, due to (1) the close proximity between Vietnam and China and the spread of the disease which is faster than SARS; (2) the ratio of Chinese tourists to foreign arrivals  to Vietnam is increasing every year, reaching 32% in 2019 as airlines open more flight routes to Chinese provinces and cities.

The Hanoitimes – KB Securities predicted there would be flat growth in foreign tourist arrivals to Vietnam in 2020, compared to 15% growth in 2019.

Vietnam major airlines such as national carrier Vietnam Airlines and budget airline Vietjet Air are predicted to face a no-growth scenario in 2020, due to slower growth or even a decline in the number of international tourists on fear of the outbreak of the new coronavirus (nCoV), according to KB Securities.

Illustrative photo.

This is not to mention the joining of new airlines in the aviation market, making the competition fiercer.

According to KB Securities, international flights accounted for 66% of revenue for Vietjet Air (2019) and 65% for Vietnam Airlines (2017). In recent years, major driving forces for local airlines mainly came from opening new international flight routes as the domestic market become saturated.

Amid the ongoing outbreak of nCoV in China and countries around the world that claimed 362 deaths and 17,297 cases of infection as of today, the Vietnamese government requested the Ministry of Transport (MoT) to suspend flights to and from nCoV-stricken areas, while Vietnam will stop receiving Chinese tourists.

Meanwhile, Hanoi’s authorities have stopped issuing visas for foreigners, including Chinese nationals, who have been in China for the last two weeks.

KB Securities expected the nCoV outbreak to cause severe consequences to the aviation industry and tourism similar to Severe Acute Respiratory Syndrome (SARS) from November 2002 to July 2003.

Countries in East Asia – Pacific witnessed a boom in their respective aviation industries during the 1999 – 2002 period with the average compound annual growth rate (CAGR) of 9.9%. However, SARS plummeted the growth number of tourists via air transportation to 0.7% in the region in 2003, however, the number rebounded strongly to 39% in 2004.

In case of nCoV, KB Securities predicted the impact to be more difficult to evaluate for Vietnam, due to (1) the close proximity between Vietnam and China and the spread of the disease which is faster than SARS; (2) the ratio of Chinese tourists to foreign arrivals coming to Vietnam is increasing every year, reaching 32% in 2019 as airlines open more flight routes to Chinese provinces and cities.

It is predicted that the number of Chinese tourists to Vietnam would decline 75% and no growth in the number of foreign tourists during the outbreak, while the disease would last shorter than SARS (six months) due to the quick responses from the international community. For the final months of the nCoV epidemic, KB Securities assumed the number of tourists to grow at an average of 15%, equivalent to growth rate in the whole 2019.

With such assumption, KB Securities predicted there would be no growth in foreign tourists arrival to Vietnam in 2020, ranging from -1% to 2%.

The Hanoitimes – The head of Vietnam’s stock market watchdog urged players to trust the internal strengths of the economy and the resilience of Vietnam’s stock market.

The State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, is considering a number of solutions to help investors and securities firms overcome negative impacts of the Covid-19 epidemic and global turmoil, according to the SSC’s Chairman Tran Van Dung.

Chairman of the SSC Tran Van Dung.

Among them are lowering fees for some brokerage services and easing regulations on margin trading, Dung told Vietnam Financial Times.

At the close on March 9, the benchmark Vn-Index plunged 6.28% to 835.49, the biggest tumble since May 2014 when the standoff between Vietnam and China occurred after China moved an oil rig into Vietnam’s waters.

Dung, however, noted the liquidity of the Hochiminh and Hanoi stock exchanges remained abudant with nearly VND6.5 trillion (US$278.69 million) traded, indicating investors were buying in battered stocks.

Besides, foreign investors remained net sellers but at a moderate amount of VND230 billion (US$9.85 million) on March 9, Dung added.

Dung said the freefall of the stock market was a common situation globally, especially as “all bad news came at one time” that directly impact investor sentiment, including the sharpest decline of oil price since 1991, prompting Goldman Sachs to predict Brent oil could drop to US$20 per barrel this year.

On early March 9, the Japanese government issued lower-than-expected economic data for 2019, heightening fears the global economy may come to a recession under the growing impacts of the Covid-19 epidemic.

The Federal Reserves (FED) on March 3 cut interest rates by 0.5% in an emergency move, prompting 65% of traders to expect the FED to continue lowering interest rates by 0.75% in the upcoming meeting on March 17. If it happens, the cut in the federal funds rate would take the borrowing cost in the short-term markets down to a range of 0.25% – 0.5% and raise concern over the US and global economies going to slow down.

For the Vietnamese stock market, new cases of Covid-19 infections were the main reason for shares going downhill, Dung said. However, Vietnam’s successful containment of the epidemic is just a matter of time, given strong determination of the government and the public.

Moreover, in the mid- and long-term, credit and fiscal support packages from the government will no doubt help enterprises recover, Dung added.

Dung urged enterprises, intermediary financial institutions and investors to trust the internal strengths of the economy and the resilience of Vietnam’s stock market.

Such confidence would help the market to rebound sooner and avoid unnecessary sell-offs, Dung stated.

In the coming time, the SSC would continue to closely monitor the market and only intervene out of necessity, Dung added, stating the authority would strictly punish cases of market manipulation or providing false information for unfair gains.