Vietnam’s e-commerce websites are still receiving heavy investment to develop despite big losses, but when will these projects stop losing? The Vietnamese e-commerce market is one of the leading markets in the region for investment. According to Nielsen, the annual growth speed of the e-commerce market is 22% and is expected to hit US$10 billion in annual revenue by 2022 from the current US$4 billion. The Vietnamese e-commerce market shows huge potential for development and receives great attention from new investors. In a recent report by Topica Founder Institute, e-commerce attracted US$83 million of foreign investment through 21 deals. Startup SEA (used to be Garena, which was termed as a unicorn in Asia), ranked first among investors pouring capital into Vietnamese startups in 2017. SEA spent US$64 million acquiring 82% of the shares in Foody, a food delivery website and app. CyberAgent Ventures, a Japanese venture investment fund, continues its activities in Vietnam. In … [Read more...] about When will Vietnam’s e-commerce players stop “burning money”?
When will money market rates increase
In the first half of this year, the total means of payment and securities investment and business increased by 16.36 percent and 28.31 percent respectively, while outstanding debts in real estate investors and businesses soared by 10.48 percent compared to late 2008. The General Director of the Lien Viet Bank, Nguyen Duc Huong attributed the “hot” growth in the securities and real estate markets to the banks’ decision to pour big amounts of cash into these markets and this should be prevented. When the national economy hits snags, there will be huge volumes of market capitalisation. Therefore, it is necessary to consider where such capital flows will come from. In fact, the Vietnamese economy, has not yet recovered and businesses have not made profits as quickly as shown by the stock index on the securities market. In addition, Vietnam’s index is rising compared to the global securities market. The Vice Chairman of the National Financial Supervision Committee, … [Read more...] about When will stimulus packages be cut back?
We, like many people, believe that the US Federal Reserve Bank (the Fed) will increase its benchmark interest rate by 25 basis points (0.25 percentage points) at its Federal Open Market Committee meeting on December 15 and 16. The Fed targets two policy objectives in deciding whether to raise rates: employment and inflation. The two objectives are linked based on the idea that when the economy reaches full employment, then companies will be forced to pay higher salaries, which will create inflationary pressures. The Fed has therefore quantified these objectives to say that it is seeking to maximise employment growth until it achieves a 2 per cent inflation rate. Recent economic data show that the targets have been met. The October US jobs report recorded 271,000 new jobs added (the highest amount in five years). Also, the unemployment rate has dropped to 5 per cent. The Labour Department’s gauge of average hourly earnings is also starting to show signs of increased earning … [Read more...] about How will the Fed rate rise affect Vietnamese stocks?
High fees, countless inactive cards Data from the State Bank of Vietnam shows that the total number of cards issued as of the end of June was 106 million, which means some of the 90 million Vietnamese people possess more than one card. Such a high figure is the result of a race between banks to boost their card issuance in recent years. In 2010 the number of cards stood at 31 million, but it has more than tripled in five years. Along with an increase in card numbers, payments made through cards have also seen continuous growth. Data from the Vietnam Bank Card Association shows that in 2011 payments made by card reached VND895 trillion (over US$39 billion) and jumped 88% in four years to nearly VND1,700 trillion (US$74.8 billion). The number of cash machines and payment terminals also respectively increased by 23% and 181% compared with 2011 to 16,573 and 217,470 devices as of early 2016. But according to official estimates, just above 20 million out of Vietnam’s population of 90 … [Read more...] about Bank cards: When will quality match quantity?
When Will Economic Crisis Reach the Bottom? This was a question raised by many enterprises for senior financial expert Bui Kien Thanh at a conference entitled “Discussing solutions for post-economic crisis” held in Hanoi on July 4. Surprisingly, the expert said, it is impossible to know when the world economy in general and the Vietnamese economy in particular will touch the bottom. He also gave specific explanations about urgent measures needed to be implemented in the financial sector and to develop the domestic market to recover the local economy from the difficulties. Reserve figures Figures on Vietnam’s economic situation announced by the Ministry of Planning and Investment on July 01, 2009 raised some concerns. Vietnam’s the first quarter economic growth was considered at the bottom line and the country has shown signs of recovery in the second quarter. Industrial production value in June grew by 8.2 per cent, making an on-year rise of 4.8 per cent … [Read more...] about When Will Economic Crisis Reach the Bottom?