Our World

#VietnamTheWorldfolio
#TheWorldfolio

Wednesday, May 5, 2021

VIETNAM
This advertising supplement was produced by Business & Investment, 1-7 Harley Street, London W1G 9QD - Phone: +44 20 7291 4402 - www.bizinvest-ltd.com

Building a thriving digital economy as the foundation

for future sustainable growth
Asia’s top-performing economy during the COVID-19 pandemic in 2020, Vietnam has positioned itself at the forefront of the ASEAN’s digital transformation, with experts
hailing the nation’s digital economy as a “dragon being unleashed”.

I
ndia and China have long
been recognized as the
roaring success stories of
the Asian region. But in more
recent years, a new set of
Asian tigers has emerged on
the world scene. Collectively
known as the Association
of Southeast Asian Nations
(ASEAN), together these ten
countries boast a combined
GDP of $3 trillion, represent-
ing the fifth-largest economy
in the world.

“Participating in next-
generation FTAs is
a concrete step in
the implementation
of Vietnam’s policy
line of international
economic integration
and sustainable
development”
PHẠM BÌNH MINH,
Former Minister of Foreign Affairs,
Vietnam

Today operating under an

integrated economic trade
block known as the ASEAN
Economic Community (AEC)
that was established in 2015,
the ASEAN is expected to
become the world’s fourth
largest economy by 2030,
by which point the region’s
middle class will reach 334
million, representing around
51% of the population.
“The single ASEAN uni-
fied market and produc-
tion base system will act as a
transparent and open market
for goods and services to the
world and as a tight intercon-
nection and harmonization of
production and services,” ex-
plains Vietnam’s former Min-
ister of Trade and Industry,
Mr. Tran Tuan Anh, whose
tenure ended in April.
“Along with the 10 ASEAN
members’ efforts, barriers to
trade and investment are and
will be minimized, thereby
ensuring high efficiency, high
production, decreased pro-
duction costs, increased qual-
ity of service delivery and high
competitiveness of goods and
services originating from the
ASEAN, of which Vietnam is
one of the key players in the
integration process.”
Having served as the Chair
of the ASEAN during the
unprecedented year that
was 2020, Vietnam has been
identified among the stand-
out economic performers in
the region. Up until 2020, the
country enjoyed average an-
nual GDP growth of around
7% and will continue to do so
following last year’s slump.
In fact, Vietnam was the top-
performing Asian economy
during the COVID-19 pan-
demic in 2020, with the es-
timated 2.9% GDP growth
driven by manufacturing and
steady export demand.
“Vietnam is
increasing its position
as the leading
supplier in the
ASEAN region to
the United States.
Not only are exports
increasing in volume,
high-quality and
value-added goods
are exported to the
United States more
and more”
TRAN TUAN ANH,
Former Minister of Trade and Industry,
Vietnam
The U.S. has become Viet-
nam’s largest export market,
accounting for over 23% of
the total merchandise ex-
port turnover, according
to Mr. Tuan Anh. “Vietnam
is increasing its position
as the leading supplier in
the ASEAN region to the
United States,” he says. “Not
only are exports increasing
in volume, high-quality and
value-added goods are ex-
ported to the United States
more and more.”
In line with the govern-
ment’s plan to build a robust
digital economy, high-value
exp o r t s s u ch a s s m a r t-
phones, chips and other
electronic devices and com-
ponents continue to grow,
with U.S. chipmaker Intel
recently announcing an in-
vestment of $475 million in
its Vietnam division, its big-
gest chip assembly and test-
ing site globally.
During the 2010s, Viet-
nam’s exports grew 16% a
year, by far the fastest rate in
the world, and three times
the emerging-world aver-
age. And with the Southeast
Asian country having signed
several free trade agree-
ments (FTAs) — including
the Comprehensive and
Progressive Agreement for
Trans-Pacific Partnership
(CPTPP) and agreements
with the UK (UKVFTA) and
European Union (EVFTA)
— trade flows will continue
to expand.
As former Minister of
Foreign Affairs Phạm Bình
Minh (whose tenure ended
in April) stresses, signing
FTAs will further open up
Vietnam to foreign invest-
ment and trade, and are
crucial elements for sus-
tainable development. “Par-
ticipating in next-genera-
tion FTAs, such as CPTPP
and EVFTA, is a concrete
step in the implementation
of Vietnam’s policy line of
international economic in-
tegration and sustainable
development,” he says. “It is
an expression of Vietnam’s
strong commitment to sup-
porting free, transparent,
rules-based trade and sus-
tainable growth.”
Digital Transformation
Another crucial factor outlined
for Vietnam’s – and indeed the
entire ASEAN’s – sustainable
development is the shift to a
digital economy. Among the
10 ASEAN states, Vietnam
has positioned itself at the
forefront of the region’s digital
transformation, with a 2018
report by Google and Temasek
haling its digital economy as a
“dragon being unleashed.”
The Vietnamese government
has been incredibly pro-active
in promoting the digital econ-
omy as the means to ensure
sustainable economic growth
over the coming decades. Un-
der the National Program for
Digital Transformation, the
“The COVID-19
pandemic has only
heightened the
urgency for ASEAN
nations to move
towards building robust
digital economies. And
perhaps if anything
beneficial has come
out of this international
public health crisis,
it is the fact that the
situation has only
helped to accelerate
Vietnam’s now-
unstoppable digital
transformation”
government has set a number
of ambitious-yet-achievable
targets, which include: ensur-
ing 80% of households have ac-
cess to fiber-optic broadband
by 2025; increasing the digital
economy’s contribution to
GDP to 20% by 2025 and 30%
by 2030; and ensuring the digi-
tal economy forms at least 10%
of each economic sector by
2025, and 20% by 2030.
The development of “the
digital Government with en-
A BUSINESS & INVESTMENT SUPPLEMENT:
Project Director: Gonzalo Llaryora; Chief Editor: Jonathan Meaney
Journalist: Mark Barnes; Design: Rubén Salgueiros
hanced efficiency and per-
formance” will also go a large
way in further improving the
business climate for investors,
along with the increased eco-
nomic integration through
FTAs, improving infrastruc-
ture, low corporate taxes, de-
creasing regulation and pro-
ductive government policies
aimed at reducing barriers to
foreign investment.
Amid Vietnam’s on-going
regulatory focus on digital
transformation, the digital
economy is estimated to have
grown by 16% in 2020 to reach
$14 billion, and predictions
are that its value could reach
$52 billion by 2025. These
figures clearly show that
Vietnam’s digital dragon has
indeed been unleashed.
The COVID-19 pandemic
has only heightened the ur-
gency for ASEAN nations to
move towards building ro-
bust digital economies. And
perhaps if anything beneficial
has come out of this interna-
tional public health crisis, it
is the fact that the situation
has only helped to accelerate
Vietnam’s now-unstoppable
digital transformation.

MBBank
Lifetime free
mobile banking app

Free personalized Free cash Free Free account

bank account number withdrawals transactions maintenance

MBBank - “The most convenient bank” in Vietnam

 2 Wednesday, May 5, 2021
ECONOMY & INVESTMENT

VIETNAM
HANOI

VIETNAM STATS AND FIGURES BREAKDOWN

ECONOMY & INVESTMENT

6.33% 2.9% 6.7% 4th $20 billion $2.6 billion
average GDP growth projected Vietnam projected foreign direct U.S. FDI
annual GDP in 2020 GDP growth to be world’s investment (FDI) in 2019
growth (2021-25) fourth fastest in 2020
(2001-2020) growing economy
(2021-2025)

POPULATION
2.7 times 96.46 120 million 13% 26% 45 million
GDP per million projected percentage projected percent- people lifted out
capita increase population population of population age of population of poverty over
(2002-2018) (2019) by 2050 considered considered middle last two decades
middle class class by 2026

VIETNAM’S DIGITAL ECONOMY

1st 29% $52 billion $815 million $15 billion 80%
Vietnam is annual growth of projected size of pledged for projected size targeted
believed to be Vietnam’s digital Vietnam’s digital investment in of e-commerce percentage of
Asia Pacific’s economy through economy by Vietnamese market by 2025 households with
fastest-growing 2025 (CAGR) 2025 startups through fiber-optic broad-
digital economy 2025 band by 2025

EXPORTS
16% $281.5 billion 1st $76.4 billion 24.5% 70%
annual growth value of exports the U.S. value of exports U.S. accounts companies with
in Vietnamese in 2020 is Vietnam’s to U.S. 2020 for 24.5% of foreign investors
exports in 2010s number one Vietnam’s export account for 70%
export partner turnover of exports

LEADING
LEADING
LEADING
IMPORTER
IMPORTER
IMPORTER
& DISTRIBUTOR
&&DISTRIBUTOR
DISTRIBUTOR
OF OF
OF
Opportunities abound in ASEAN’sINGREDIENTS
INGREDIENTS
INGREDIENTS
ANDAND
FOOD
AND
FOOD
FOOD
SERVICE
SERVICE
SERVICE
IN VIETNAM
ININ
VIETNAM
VIETNAM
prime investment destination
Following manufacturing, real estate, construction, infrastructure, mining and food
are other notable sec­tors that attract substantial foreign direct investment, which
INGREDIENTS
INGREDIENTS
INGREDIENTS
Since Since
reached a total of almost $20 billion in 2020, a mere 2% decline on 2019 despite 1993,
Since
1993,
we1993,
arewe
the
we
are
largest
are
thethe
largest
dairy
largest
ingredient
dairy
dairy
ingredient
ingredient
importer
importer
importer
from USA
from
from
and
USAUSA
the
and
LEADING
rest
and
theofthe
rest
the
rest
IMPORTER
ofworld.
the
of the
world.
world.
& DISTRIBUTOR OF
the impact of the pandemic.
INGREDIENTS AND FOOD SERVICE PROVIDER IN VIETNAM
S teadfast economic growth,
a growing middle class of
consumers, a favorable invest-
ment climate and strategic lo- INGREDIENTS
cation are among the factors Since 1993, we have been the largest dairy ingredient importer
that have made Vietnam one from the USA and the rest of the world.
of Asia’s hottest destinations
for investors.
Despite the effects of CO-
VID-19, Vietnam’s GDP grew
2.91% in 2020, while foreign
direct investment (FDI)
reached nearly $20 billion, a
mere 2% decline on 2019.
Aside from being Vietnam’s
number one export partner,
the U.S. is also an important
investment partner. U.S. FDI
in Vietnam reached $2.6 bil-
lion in 2019, and former Min-
ister of Trade and Industry,
U.S. chipmaker Intel recently announced an investment of $475 mil­lion in
its Vietnam division, its biggest chip assembly and testing site globally. FOOD
FOOD
FOOD
SERVICE
SERVICE
SERVICE
Mr. Tran Tuan Anh (whose We provide
WeWeprovide
all
provide
kind
allofall
kindfood
kind
of for
food
of the
food
for
hospitality
for
thethe
hospitality
hospitality
industry
industry
industry
tenure ended in April), says heart of Asia, increasingly tal financial services, online
the Vietnamese government attracting investors in high- gaming, IT-enabled services
and propose
andand
propose
great
propose food
great
great
concepts,
foodfood
concepts,
concepts,
live cooking
livelive
cooking
demo
cooking
demo
demo
will continue to build a more
favorable investment climate
value industries such as elec-
tronics, with Samsung, LG
and Industry 4.0.
With increasing internet
with support
with
with
support
from
support
our
fromfrom
FOOD SERVICE
dedicated
ourour
dedicated
dedicated
Chef'sChef's
team
Chef's
team
team

RETAIL
RETAIL
RETAIL
- ONLINE
- ONLINE
- ONLINE
STORE
STORE
STORE
for U.S. investors looking to and Intel having established access, a young population, We provide all kinds of food for the hospitality industry
use the country as a hub to ac- major manufacturing bases growing incomes, and the and propose great food concepts, as well as live cooking
cess the fast-growing ASEAN in the country. accelerated adoption of Wee-bring WeWe bring
to end-users
bring to end-users
to end-users
varietyvariety range
varietyofdemos
rangerange ofwith
products of support
products
products from our dedicated Chef's team.
region and beyond. commerce solutions by from
both selected
from from selected
brands
selected brands
with
brands retail
withwith
and
retail
retail
home
andand home
delivery
home delivery
service
delivery service
service
“The Ministry of Industry “Last November at homes and businesses due to RETAIL - ONLINE STORE
and Trade continues to par- the Viet­nam Ventures impact of the pandemic, the We bring a wide variety of products to end users
ticipate in solving problems Summit, 33 investment e-commerce market is ex-
from selected brands, with retail and home delivery service.
of U.S. businesses in doing funds pledged to pected to grow five-fold be-
business with Vietnam, pro- tween 2018 and 2025, reach-
moting investment projects invest $815 million in ing $15 billion. The market is
and importing raw materials Viet­namese startups dominated by foreign-owned
to balance trade. In particular, through 2025” firms but will see the emer-
there is a focus on removing gence of local players, both
difficulties in technology ser- Following manufacturing, big and small, over the com-
vices, advertising, and trade real estate, construction, ing years, as the government
in services; and to introduce infrastructure, mining and actively encourages business-
and expand opportunities for food are other notable sec- es to embrace e-commerce.
Vietnamese businesses to ac- tors that attract substantial The government has also
cess US goods,” he explains. FDI. But it is perhaps in the focused on building a thriv-
“The two sides’ trade-eco- country’s flourishing digital ing start-up scene, where
nomic-investment relations economy where the future’s New Viet
foreign investors are already New New
Shop
VietViet
New Shop
Viet Shop
Shop Le Square
LeLe Le
Square
Square Epicier
SquareEpicier
Epicier FinEpicier
FinConceptFinFin
Concept Concept
Store
Concept
Store Store Store
are developing well, becom- most exciting opportunities playing a significant role. New Viet Shop Le Square Epicier Fin Concept Store
ing the driving force for the lie for foreign investors. Last November at the Viet- CONTACT CONTACT
CONTACT
CONTACT USUS USUS
Vietnam-US relationship.” Vietnam’s digital econo- nam Ventures Summit, 33
NEW VIET NEW NEW
DAIRY
VIET VIETDAIRY DAIRY NEW VIET
CONTACT
NEW NEW
SHOP
VIET VIETSHOP
US
SHOP LE SQUARE LE SQUARE
LEEPICIER
SQUARE EPICIER
FIN
EPICIER FINFIN
The manufacturing sector my is predicted to expand investment funds pledged NEW VIET DAIRY
145 Ton That 145Dam,
Ton
145Ben
That
TonNghe,
Dam,
That Dam,
Ben Nghe,
Ben Nghe, Ha Noi -NEW
DaHa VIET
Nang
NoiHa- Noi SHOP
Da Nang
- Da Nang LENguyen
186 SQUARE 186 EPICIER
VanNguyen
186
Huong,
Nguyen
Van
Thao FIN
Huong,
Van
Dien,
Huong,
Thao Thao
Dien, Dien,
remains the largest recipient at a rate of 29% CAGR to to invest $815 million in District 1, Ho
District
ChiDistrict
Minh
1, Ho
145 City,
Ton 1,
ChiHo
Vietnam
Minh
That Chi Minh
Dam, City, Vietnam
City, Vietnam
Ben Nghe, Phan ThietHa
Phan
- Ho
NoiChi
Phan
Thiet
- DaMinh
Thiet
- HoCity
Nang Chi
- HoMinh
Chi Minh
City City District 2, Ho
District
186 Nguyen ChiDistrict
VanMinh
2, HoCity,
Huong,2,
ChiHo
ThaoVietnam
Minh
Chi
Dien,Minh
City, Vietnam
City, Vietnam
of FDI, accounting for 48% of reach $52 billion by 2025. Vietnamese startups through District 1, Ho Chi Minh City, Vietnam
Facebook.com/newvietdairy
Facebook.com/newvietdairy
Facebook.com/newvietdairy
Facebook.com/newvietdairy
Facebook.com/newvietshop
Facebook.com/newvietshop
Phan Facebook.com/newvietshop
Thiet - Ho Chi Minh City
Facebook.com/newvietshop
093 District
8373 4412,
093
093 8373 441
Ho 8373
Chi
093Minh
441City,
8373 Vietnam
441
84 28 628884 3535
28846288
28 6288
3535 3535 84 86 288 3544
84 8684288863544
288 3544 Facebook.com/lesquareepicierfin
Facebook.com/lesquareepicierfin
Facebook.com/lesquareepicierfin
the accumulated total. Viet- As such, investors can reap 2025 – a clear indication that 84 28 6288 3535
Newviet.netNewviet.net
Newviet.net
84 86 288 3544
newvietshop.com
newvietshop.com
newvietshop.com
Facebook.com/lesquareepicierfin
lesquare-epicierfin.vn
lesquare-epicierfin.vn
lesquare-epicierfin.vn
nam has rubber-stamped its the potential in a number Vietnam is poised to become Newviet.net newvietshop.com lesquare-epicierfin.vn
shop.lesquare-epicierfin.vn
shop.lesquare-epicierfin.vn
shop.lesquare-epicierfin.vn
shop.lesquare-epicierfin.vn
position as a major manufac- of fast-growing segments, Asia’s next major market for
turing and export hub in the including e-commerce, digi- tech investments.

Our World Insert is produced by Business & Investment. USA Today did not participate in its preparation and is not responsible for its content.
Wednesday, May 5, 2021
MBBank sets highest level of standards
The banking landscape in Vietnam is being significantly reshaped by digitalization. And leading this digitalization wave is MBBank, which is making many aggressive and
successful moves within the digital sphere: such as establishing its digital bank as an indepedent beta bank, creating its banking app (MBBank App) as a platform for multiple
users, providing banking infrastructure (including license) as part of its services, and positioning itself as a technology-driven company. At the same time that MBBank is grow-
ing its assets, customer base and digital services, Vice Chairman of the Board of Directors cum CEO, Thai Trung Luu, has set the bank’s goal to be in the Top 5 – while striving
to reach the Top 3 – commercial banks in Vietnam in terms of quality and efficacy, while continuing to lead the nation’s digital transformation.
T
he digital revolution
has been sweep-
ing across Asia re-
cently. There has been a
steady trend in the region
of people turning to their
m ob i l e s a n d th e I nter-
net for banking services,
with the number of physi-
cal branches in decline as
more and more customers
opt for the convenience of
online services.
In Vietnam, the preva-
lence of information tech-
nology was credited by the
World Bank as one of the
primary reasons the coun-
tr y dealt so rapidly and
efficiently with the out-
break of the coronavirus
pandemic. Not only were
businesses able to go digi-
tal, consumers embraced
online shopping and in-
creasingly turned to the
Internet for information
on public services. Bank-
ing, with a solid foothold
already in place, adapted
sw if tly to the chang ing
mindset of customers in
the age of COVID-19.
Vietnam is one of Asia’s
f a s t e s t- g r o w i n g d i g i t a l
economies, with the sector
expected to represent 30%
of the national economy by
2030. At a consumer level,
smartphone penetration
in Vietnam stood at 44.9%
according to dat a f rom
the latest annual Newzoo
Global Mobile Market Re-
port, the 15th-highest lev-
el in the world and which
represented 43.7 million
smartphone users. Accen-
ture estimates that inter-
net usage in the countr y
will rise to cover 65.1% of
the population in 2022,
at a total of 63.8 million
users , w ith smar tphone
penetration projected to
reach 52%. By comparison,
Japan’s total penetration in
2019 was around 57% and
China’s just shy of 60%.
“Customers now don’t
like to come to a physi-
cal transaction place. It’s
too complicated because
it involves a lot of paper-
work , procedures and is
very time-consuming,” says
Mr. Thai Trung Luu, Vice
C hairman of the B oard
of Directors cum CEO of
Building Vietnam’s success story
Over the past few decades, Hoa Binh Construction Group has played a vital role in Vietnam’s development as one of the nation’s leading builders.
T
owering skyscrap-
ers, high-rise of-
fice buildings, and
gleaming new roads, bridg-
es, ports and airports serve
as the clearest physical indi-
cators of Vietnam’s incred-
ible economic growth over
the past few decades.
As the country began
opening its doors to the world
economy around 1995, the
construction industry has
witnessed average annual
growth of around 10%. The
government and private sec-
tor have prioritized construc-
tion as the core of both the
country’s socio-econominc
development and growing
attractiveness as a business
destination – with major in-
vestments across the board,
from hospitals, schools and
housing, to energy, air, road
and maritime infrastructure.
The Vietnamese govern-
ment alone invests about
8% of GDP each year on
new building projects, with
the country boasting higher
grades of infrastructure
quality than any nation at a
similar stage of development.
Meanwhile, the nation’s large
and capable local construc-
tion behemoths continue to
play their obvious role in the
nation’s breakneck develop-
ment and modernization.
“After Vietnam integrated
with the world economy
many foreign investors came
here. We had a very unique
opportunity to develop the
construction industry in
Vietnam. We learned from
many big international com-
panies,” says Lê Viết Hải,
Chairman of Hoa Binh Con-
struction Group (HBCG),
one of the nation’s Top 5
Our World Insert is produced by Business & Investment. USA Today did not participate in its preparation and is not responsible for its content.
MBBank. “Rather, custom-
ers tend to conduct trans-
actions on their mobile
through digital platforms.”
“Regarding profitability,
we are in the top five,” he
notes. But there is a key
difference in what MB-
Bank offers and it is key to
the institution’s overrid-
ing strategy: “For Vietnam
today, we find that digital
transformation is an op-
portunity, a tool to show
Vietnam’s ability to other
parts of the world,” Mr. Luu
says. “In Vietnam, we also
find some ways to serve a
huge number of customers
with the help of technol-
ogy. At MBBank, we find
that investing in platforms
and technology can help
us acquire millions of cus-
tomers per year.”
Wi t h t h e p a n d e m i c
prompting a push to ac-
celer ate dig iti z ation of
product and ser vice ac-
tivities, Vietnam is cur-
rently implementing the
National Dig ital Trans -
formation Program 2020-
2025, in which the banking
and finance sector plays a
crucial role. Under this
Program, the Government
of Vietnam has set a target
for more than 50% of the
population to have an elec-
tronic payments account
by 2025, a goal which will
be facilitated by MBBank’s
digital services.
At the forefront of the
nation’s digitization drive,
MBB ank , w ith a v ision
to become the most con-
venient bank in Vietnam
by 2021, has been taking
pioneering steps towards
d i g i t a l t r a n s fo r m at i o n .
It has created a series of
new platforms, such as the
MBBank App, the BizMB
App, SmartRM and Smart
CRM, providing outstand-
ing digital experiences for
its customers.
Through these digi-
tal platforms, businesses
in a variety of fields can
p ro v i d e th e i r e s s e nt i a l
products and ser vices to
customers. Indeed, rather
than going to physical of-
fices to pay their electric-
ity, water, and phone bills,
or education and health-
construction firms that has
been a vital protagonist in
Vietnam’s success story since
its establishment in 1987.
“I don’t think any
construction company
in the world has the
same experience. We
know many construction
methods and we know
which one is the best
for each project”
LÊ VIẾT HẢI,
Chairman, HBCG
“We have worked with
more than ten big general
contractors from Korea, Ja-
pan, China, France, Germa-
ny, Australia, and the USA. I
don’t think any construction
company in the world has the
same experience. We know
many construction methods
and we know which one is
the best for each project.”
Publicly-listed and 30%
foreign-owned, HBCG has
built an extensive portfolio
of successfully completed
projects over the years,
from high-rise buildings,
BANKING SECTION
& CONSTRUCTION
care fees, as they had to in
the past, customers now
c a n c o n d u c t p ay m e n t s
quickly and conveniently
on their mobile through
the MBBank App, which
is harnessing the power
of the latest Industry 4.0
technologies.
Thanks to the power of
artificial intelligence, the
MBBank App uses Elec-
tronic Know Your Cus -
tomer (eKYC) technology
to verify that a customer’s
identity matches their ID
card, which ensures that
opening an online bank
account with the MBBank
App is much easier and
safer. Meanwhile, Big Data
analysis is sig nif ic antly
facilitating the credit ap-
plication process for cus-
tomers, allowing for the
automatic generation of
customer credit ratings.
As a result of these pio-
neering steps in the digi-
tal sphere, MBBank made
a major breakthrough in
2020. “It took us over 20
years to acquire 4.5 mil-
lion customers. But within
the year 2020 alone, thanks
to enhancing digital trans-
for mation, MBB ank at-
tracted two million more
customers. It shows that,
in just one year, we can ac-
quire the same number of
customers as we did pre-
viously in 10 or even 20
years. I think it’s a golden
offices and manufacturing
plants, to hotels, condo-
miniums, shopping malls
and airports. The company
has built up its experience
and reputation as a contrac-
tor on large-scale projects
that are demanding in both
technical and aesthetic re-
quirements, with examples
including the Le Méridien
5-Star Hotel, the Saigon
Centre Complex and the ex-
panded terminal at Tan Son
Nhat International Airport.
With ‘Economy, Society
and Environment’, being
the core pillars of HBCG,
the company has been at the
forefront of the promotion
of sustainable development
in the construction indus-
try – which is indeed of vital
importance to fast-growing
Vietnam as it looks to avoid
the mistakes of some of its
regional predecessors.
“First, being environ-
mentally friendly is a part
of our core values, one of
which is to steer construc-
tion in an environmentally
friendly way and to mini-
mize our impact on Viet-
nam’s natural resources,”
explains Mr. Viết Hải.
“We have already cre-
ated a green environment
committee that consists
of 17 very smart and very
capable engineers that we
selected from our staff. For
Vietnam there is a green
building council and Hoa
Binh was the first mem-
ber and one of five plati-
num members and the
only Vietnamese company
among those five platinum
members. The other four
are foreign members.”
Backed by its industry-
opportunity for the coun-
try,” Mr. Luu says.
An MBBank report
shows that , in 2020, its
transaction rate grew
thre e-fold, re aching 90
million electronic trans-
actions. More than 84%
of the transactions were
conducted via digital chan-
nels. And this number is
“If you can serve at
high speed, but only
a few customers,
that’s not enough.
I want to serve 20
million customers at
high speed”
Mr. Thai Trung Luu,
Chief Executive Officer, MBBank
expected to increase even
more in the near future.
I n Au g u s t 2 0 2 0 , M B
Shins ei Finance Lim-
ite d L i ability Comp any
(Mc re dit), a j oint v en-
ture between MBBank
and Japan’s Shinsei Bank,
launched the Mcredit JCB
Credit Card in an effort to
bridge the gap in the con-
sumer credit market. Card
holders will benefit from
zero interest at over 40,000
retailers in Vietnam, as
well as access to over a
million ATMs globally.
It is all part of Mr. Luu’s
vision for MBBank and the
sector at large: no waiting
around. As digital bank-
HBCG has built an extensive portfolio of successfully completed projects over the years, from high-rise buildings, offices
and manufacturing plants, to hotels, condo­miniums, shopping malls and airports.
leading experience, tech-
nological and human capi-
tal, and strict adherence to
the highest international
standards, HBCG not only
serves as the ideal partner
for companies looking to tap
Vietnam’s building opportu-
nities, but is itself also seek-
ing to develop collaborative
opportunities abroad. Can-
ada has been the company’s
ing re duces the ne e d to
travel to branches, maybe
getting stuck in traffic en
route, only to then join a
queue at the destination,
targeting like-minded
customers produces the
best of both worlds.
“How do you assess the
level of convenience of a
bank? From my perspec-
tive, it’s the speed you de-
liver your services to your
customers and the num-
ber of customers you are
able to ser ve at the same
time. For example, if you
can ser ve at high speed,
but only a fe w custom-
ers, that’s not enough. I
want to ser ve 20 million
customers at high speed,”
Mr. Luu says.
MBBank also recog-
nizes the potential for the
digital transformation to
have a positive impact on
humanit ar i an work . A s
part of its participation in
Vietnam’s National Digital
Transformation Program
2020-2025, MBBank has
been shifting charity work
f rom the tr aditional to
digital sphere through iN-
handao (https://inhandao.
vn), a government-le vel
digital humanitarian plat-
form in coordination with
the Vietnam Red Cross and
Vietnam’s Post Office.
With a modern, conve-
nient and easy-to-access
approach, this platform of-
fers a transparent method
for people to help those
most in need, whose ad-
dresses are made available
on the platform after be-
ing checked and verified
by the Vietnam Red Cross.
Money donations and the
payment of goods desig-
nated for those in need can
then be made online and
delivered to beneficiaries
through the Post Office’s
Smar t Logistics system.
Ev e n d u r i n g th e C OV-
ID-19 pandemic, humani-
tarian work has remained
a top priority for MBBank.
Vietnam’s rapid response
to the threat of novel coro-
navirus spared the country
from the worst of the pan-
demic but with the world
in the grip of the next wave
of infections, digital bank-
first venture outside of Asia,
where it plans to build a con-
dominium building with 31
floors and 350 units.
“We’ve brought the land
and have the planning ap-
proved,” explains Mr. Viết
Hải. “We have a government
license for overseas invest-
ment and we have already
transferred some money
there. We plan to invest first
INNOVATIVE APPAREL
SOURCING
105 Nguyen Duc Thuan
Nam Dinh,Vietnam
Tel: 84 228 3649365
Fax: 84 228 3646737
www.songhong.vn/
3
ing is likely to be as much
part of the “new normal”
panorama as online learn-
ing, remote working and
re duce d capacity re cre-
ation. What began as an
organic shift based on an
increasing tendenc y for
ever yday transactions to
be performed remotely for
convenience could well
prove to form the ver y
fabric of online business
and personal finance as the
world moves inexorably to-
wards cashless societies.
“The key for our
success is our hunger
for success. The
second factor is
the platform, how
we understand
the customers. The
customer experience
is the key to building
a good platform,
good services”
For banks, the society
entering the “new normal”
represents a double-edged
sword: social responsibil-
ity on the one side and the
need to remain solvent on
the other, with the weight
of public opinion towards
financial institutions
weighing heavily on the
sharp end.
“I think now we should
focus on ways to survive
together, not tr y to in-
crease revenue or profit-
ability at that time. That’s
the social responsibility,”
Mr. Luu obser ves. “So, I
think in 2020, how to sur-
vive with customers during
COV ID-19 was another
perspective. We adopted a
strategy to balance growth
and save costs. In 2020,
M B B a n k i mp l e m e nte d
a reduction in operating
expenses with cost-to-in-
come ratio (CIR) decreas-
ing by nearly 3% compared
to 2019, while revenue still
inc re a se d by 10% com-
pared to the previous year.
We believe that, after CO-
VID-19, opportunities will
come to us. Once you have
the ability to stand strong
during a difficult time, you
will come back stronger.”
and then move on to becom-
ing a general contractor and
co-operate with the local
contractors to do that.”
Having enjoyed impres-
sive double-digit revenue
growth in Vietnam for the
best part of three decades,
HBCG is now looking to
go global, bringing its un-
rivalled construction expe-
rience to overseas markets.
 4 Wednesday, May 5, 2021
Rising Vietnamese consumer demand poses big
opportunity for U.S. food products
The growing consumer market in Vietnam coupled with low import tariffs means there are big opportunities for U.S. food product exporters in the fast-growing Asian nation.
However, with that growth comes the higher standards and more sophisticated demands of the Vietnamese consumer – as pointed out by Lê Thi Vân and Didier Lachize, direc-
tors of New Viet Dairy, which imports a number of high-quality beef and dairy products from the U.S. for the local market. With this in mind, they point out that opportunities
are not only abound for big U.S. food firms, but also smaller artisan food companies, for example those making high-quality cheeses.
R
ising incomes, a
growing middle class,
changing consumer
habits, open borders and
liberal trade regulation are
among the major factors
driving the growth of Viet-
nam’s food and beverage
(F&B) industry, which of-
fers attractive opportunities
for foreign investors in the
food importation segment.
It is expected that Vietnam’s
middle-class could double
by 2026, which in turn will
spur a major increase in de-
mand for high-quality food
and beverage products. In
fact, Vietnam is predicted
to be among the top three
countries in Asia in terms
of F&B development.
Food is at the core of Viet-
namese culture and while
rice and the traditional cui-
sine will remain prominent,
the country’s young and in-
creasingly urbanized popu-
lation has spurred major
changes in consumer eating
habits. The majority of Viet-
nam’s population is under
35 years old, while the ur-
ban population of Vietnam
is set to increase from 34%
to 40% between 2015 and
2025. With more money in
their pockets, these global-
ly and open-minded young
Vietnamese consumers have
discovered a growing appe-
tite for international cuisine.
And with free-trade agree-
ments (FTAs) like the Com-
prehensive and Progressive
Agreement for Trans-Pacif-
ic Partnership (CPTPP) and
liberal trade policies – in-
cluding those with the Unit-
ed States – having made it
easier for the importation
of food products, now is the
opportune moment for for-
eign investors in Vietnam’s
F&B industry to cater to
the increasing demand for
international food products.
Two people that have
closely followed the growth
of Vietnam’s food industry
and the tremendous chang-
es in the eating habits of the
Vietnamese consumer are
Ms. Lê Thi Vân and Mr. Di-
dier Lachize, the directors
of New Viet Dairy, one of
Song Hong: “Innovative garment companies will have
advantages in the global supply chain”
Vietnam’s leading garment maker, who counts Disney amongst its licensers, believes foreign partnerships will be key to making the sector more competitive in light of
the CPTPP agreement.
V
ietnam is the fourth
largest exporter of
textiles and garments
worldwide after China, the
European Union and Ban-
gladesh, with the nation’s
textile industry having con-
tinuously grown at an aver-
age rate of more than 15 %
annually. Vietnam’s reputa-
tion as a textiles powerhouse
has been thanks to leading
players like Song Hong, one
of the country’s top export-
ers of garment and bedding
products which has been in
operation since 1988.
“Vietnam has advantages
in terms of low cost and a
large population that is still
largely very young. We are
also a hardworking country
and our government sees
a lot of potential in grow-
ing and joining the global
economy,” says Quang Viet
Bui, CEO of Song Hong,
commenting on the coun-
try’s country’s recent sign-
ing of the Comprehensive
and Progressive Agree-
ment for Trans-Pacific
Partnership (CPTPP).
“It’s opening more doors
for companies like us. But
it’s not for everyone,” he ex-
plains. “It’s only for those
that are ready enough and
those that are very com-
mitted to building stron-
ger companies and stron-
ger communities. We are
one of the most advanced
companies in Vietnam
right now and have been
doing business with a lot
of large American brands
for many years.”
Our World Insert is produced by Business & Investment. USA Today did not participate in its preparation and is not responsible for its content.
the nation’s leading import-
ers of dairy, beef and other
food products.
“We looked at the dairy
products and in the begin-
ning we just bought some
mozzarella to introduce to
hotels and restaurants but at
the time there were no pizza
ovens like there are today.
Back then, we were doing
“The Vietnamese
economy has proven
extremely resilient
during the COVID-19
pandemic, and Vietnam
is likely to be the
country which will make
a great leap forward in
the aftermath”
HOANG MAI NGUYEN,
Director, New Viet Dairy
one container per year but
now we are doing hundreds
of tons per year for mozza-
rella for pizza. It means that
the country’s eating habits
have been changing a lot,”
says Ms. Thi Vân.
“I think that one of the
main reasons is that the
country is open for foreign-
ers to come in and bring
their culture and open res-
taurants and I think that
Vietnamese people are very
open-minded with food
and they always try to eat
healthily. They are ver y
curious about food. Also,
many gener ations have
been educated abroad and
when they come home, they
want to eat pizza and pasta.
These factors drive chang-
ing consumer habits.”
Opportunities for U.S.
food companies
As a Vietnamese business-
woman, Ms. Thi Vân pos-
sesses the knowledge of the
local market and Vietnam-
ese culture, while French-
man Mr. Lachize, a food
engineer and graduate of
the National Agronomy In-
stitute in Paris, ensures New
Viet Dairy follows the high-
est international standards
in food safety and quality.
In 2018, Song Hong ac-
quired the image rights to a
number of famous cartoon
characters including Hello
Kitty, Doraemon, and a range
of Disney favorites, with its
licensing contract recently
renewed for another three
years by the American en-
tertainment behemoth.
“Vietnam has
advantages in terms
of low cost and a
large population that
is still largely very
young. We are also a
hardworking country
and our government
sees a lot of potential
in growing and joining
the global economy”
QUANG VIET BUI,
CEO, Song Hong
Despite such successes
making Song Hong a leading
light for the Vietnamese gar-
ment sector, the CEO stress-
es that without an intensive
FOOD & TEXTILES
“We are a good combination
because Didier brings a lot
of food safety techniques,
he’s very strict on control,
and I understand that is very
important in our business
because that is the future of
Vietnam,” adds Ms. Thi Vân.
The combination of these
factors has served as the basis
of New Viet Dairy’s success in
Mr. Didier Lachize and Ms. Lê Thi Vân, Directors of New Viet Dairy.
Vietnam, making it the ideal
partner for companies look-
ing to introduce high-quality
food, beef and other prod-
ucts to the country, including
those from the U.S.
New Viet Dairy already
serves as one of the main
channels for the entry of
U.S. dairy, beef, pork and
p ot ato-b a s e d pro duc t s ,
holding the position as the
number one importer of U.S.
beef, French fries and pow-
dered milk. And over the
coming years, Mr. Lachize
expects to see an increasing
number of U.S. food compa-
nies looking towards Viet-
nam as an avenue to grow
their international sales.
“In the beginning, because
the U.S. market was so fo-
cused on selling domestical-
ly, they weren’t really look-
ing to export. But that has
now changed,” he explains.
“Now I think they are will-
ing to export more and more
because maybe the domestic
market is reaching satura-
tion and they are learning
that in places like China and
investment in digitaliza-
tion and automation in the
country’s garment industry,
then the sector will face a
challenge in breaking the
CPTTP and European mar-
kets. This is especially the
case as nations such as Myan-
mar, Cambodia and Bangla-
desh have long enjoyed free
trade benefits, with Vietnam
having to play catch-up with
its competitors.
The continued growth of
the Vietnamese textile in-
dustry will also rely on the
global garment giants relo-
cating their Asian manufac-
turing bases from China.
However, Vietnam is now
starting to see some positive
developments on this front
since the CPTPP agreement.
“Generally, their first stop
is always Vietnam, and we
have already been in touch
with some big brands in
Canada and Australia, who
are paying attention to [our
agreement to join] CPTPP,”
says Mr. Bui.
One big advantage for
Vietnam as an invest-
ment destination in this
respect is the wide regard
for workers’ rights which
are strictly adhered to in
the country. Something
which cannot be said for
many other parts of the
region. “All of our buyers
are very tough in terms of
workers’ rights. They au-
dit us every month and we
don’t have any problems. In
Asia, it seems Vietnam is
one of the best countries in
terms of preserving work-
Vietnam, they can export
their product freely.”
And while U.S. importers
may not enjoy the complete-
ly tariff-free trade under
FTAs like New Viet Dairy’s
large base of clients from the
Australia and New Zealand,
they can still take advantage
of extremely low tariff rates
(currently at 2%) – not to
mention the ease of doing
business thanks to Viet-
nam’s sophisticated digital
infrastructure.
“People know that there is
a framework, even if there
is no free trade agreement
with the U.S., with tariffs
that are very low and they
have always been low. They
have never been high like in
other countries,” adds Mr.
Lachize. “Digitization has
also been key. Electronic
registration for imported
items in Vietnam is very
good. We do everything on
the internet without paper.
We do customs clearance
on the internet, we pay our
tax on the internet, we hire
on the internet, and all of
our invoices are electronic.
Everything is electronic and
works well.”
Premiumization and high
standards
Of course, with the chang-
ing food preferences of the
growing Vietnamese mid-
dle-class also comes higher
standards and more sophis-
ers’ rights. Working condi-
tions in Vietnam are bet-
ter than China, Cambodia,
Myanmar, Bangladesh, and
Indonesia among others.”
Ultimately, the Hong Song
CEO says that – though
certain democratic and
demographic advantages
can certainly give Vietnam
a leg up – there will be no
substitute for investment
and foreign partnerships in
making the industry stron-
NO.1 VIETNAMESE CONTRACTOR
(According to Vietnam Report 2020)
HOA BINH CONSTRUCTION GROUP JOINT STOCK COMPANY
Pax Sky Building, 123 Nguyen Dinh Chieu St., Ward 6, District 3, HCMC
Tel: (+84)28. 3932 5030, Fax: (+84)28. 3930 2097
ticated demands. This has
forced the bigger American
food companies to raise the
standard of the products
they export to Vietnam, as
Ms. Thi Vân points out.
“At the beginning we had
issues with the U.S. export-
ers because they didn’t re-
alize Vietnam’s standards
were so high. They just
“Young professionals
with income are now
the real consumers,
opinion leaders, and
digital influencers. This
has a major impact on
the way a company can
access the market and
can sell and grow”
HOANG MAI NGUYEN,
Director, New Viet Dairy
produced what they sell to
their American consum-
ers. But now they have up-
graded their processes and
improved their quality con-
trol,” she says.
With growing concerns
over the safety and qual-
ity of products, Vietnamese
consumers are willing to pay
higher prices for organic
products, environmentally
conscious options, and prod-
ucts from foreign brands.
Meanwhile, health concerns,
along with rising income
that leads to consumption
of higher-tier brands, have
ger and more competitive in
a global economy.
“We can coordinate with
anyone, anytime, anywhere
in the world. This is how
we have to compete. The
global competition today is
not about quality or price,
it’s about speed and who is
faster,” he says.
“Everyone is changing
their business model. They
are working online, and e-
commerce is the only way to
https://hbcg.vn
resulted in a proliferation
of product premiumization,
with the demand for premi-
um food products continu-
ing to grow.
This has also opened up
opportunities for smaller ar-
tisanal and organic produc-
ers in the U.S. And New Viet
Dairy also aims to increase
its collaboration with these
smaller producers who have
the potential to make big
gains in Vietnam by cater-
ing to the growing demand
for premium products.
“There are a lot of good
products in the U.S. but they
are not targeting exports so
far. You have a lot of good
regional cheese and a lot of
high-quality beef that is not
your average, mass-market
kind – organic products
too,” says Mr. Lachize.
“We have been receiv-
ing more of the smaller
guys that come and visit us
more and more frequently.
We had non-stop visitors
from the U.S.A. last year.
This has stopped obviously
due to COVID-19, but we
still have a lot of meetings
through Z oom. We can
connect with a small guy in
California making a special
cheese and we can import it
and sell it here.”
All in all, the opportuni-
ties for U.S. food producers,
both big and small, will con-
tinue to grow in line with
the increasing consumer
demand for international
food products. However,
this increasing demand in
Vietnam’s open and liberal
economy also brings inten-
sifying competition – some-
thing which, Mr. Lachize
stresses, U.S. investors must
also bear in mind. It has in-
deed posed a challenge that
has compelled New Viet
Dairy to continue to inno-
vate in order to stay ahead
of the growing number of
competitors. “The tough
thing is that because it has
become so easy to enter the
Vietnamese market, you
have more competition. But
that forces us to always find
the way to lead the race, and
that’s the way it is.”
survive. Fashion brands are
asking for shorter lead times
and smaller orders and more
seasons. It’s a game we have
to play. We need non-stop in-
vestment in our management
systems including inven-
tory, sales, finance, human
resources, machinery, and
especially R&D. Innovative
Vietnamese companies with
these foundations in place
will have more advantages
in the global supply chain.”