Uber Merges into Grab in Vietnam, Gov't to Boost Reform of Property Market Rules

Photo: Reuters

Uber Merges into Grab in Vietnam, Go-Jek Prepares to Enter

Rider hailer Uber Technologies has merged its Vietnam operations with Singapore-based company Grab from Monday. Many Vietnamese Uber drivers had already started to work for Grab.

Meanwhile, Indonesia-based Go-Jek was also preparing to enter the Vietnamese market, competing with Grab, the daily said.

In March, Go-Jek started recruiting personnel in Vietnam to enter the Vietnamese market, competing with Grab, Dau Tu (Investment) newspaper reported on Monday.

Vietnam Questions Possible Grab Monopoly in Wake of Uber Takeover

Grab has not provided adequate evidence to prove that it hasn't formed a monopoly in Vietnam, according local authorities.

The company submitted a letter to the Ministry of Industry and Trade on April 5 to explain its acquisition of rival Uber's operations in Vietnam as requested by the Ministry’s Competition and Consumer Protection Department (CCPD).

In the letter, Grab claims that its combined market share with Uber in Vietnam is less than 30 percent, so it does not have to “inform to the competition authority before proceeding and completing this transaction in Vietnam."

Grab’s Acquisition of Uber Opens Door for Vietnamese Firms

Grab’s acquisition of Uber opens the door for Vietnamese businesses to enter the ride-sharing market, said Khuat Viet Hung, vice chairman of the Vietnam National Safety Traffic Committee.

Hung noted that Uber was unknown seven and eight years ago, and that when Uber entered Vietnam, no one had heard of Grab. “When there appears a ‘giant’ in the market, we often feel anxious, but I think that Grab buying Uber is really an opportunity for Vietnamese businesses.”

Government to Step up Reform of Property Market Rules

The government will have breakthroughs in the reform of legal regulations and business investment conditions for the domestic real estate market this year, according to experts.

The Ministry of Construction is planning to submit a draft resolution on reforming administrative procedures to the government in the second quarter of this year. In the draft resolution, it’s expected to create more favorable conditions for economic sectors, especially foreign-invested businesses, investment and business activities in the local property market by amending the Housing Law and Real Estate Business Law.

Ford Upbeat on Vietnam despite Risks

U.S. carmaker Ford Motor Co is keeping its optimistic outlook on car sales in Vietnam this year, though shipments of Thai-made cars there have been postponed.

Vietnam tightened inspections for all imported cars at seaports earlier this year after an import duty for Thai-made vehicles was eliminated under the Asean Free Trade Area.

Yukontorn Wisadkosin, president of Bangkok-based Ford Asean, said the company's car stock in Vietnam is only sufficient to last this quarter. "But Ford is not worried about this issue, as it can allocate some models, such as the Ranger pickup, to be assembled at the facility in Hai Duong, Vietnam," she said.

Logistic Firms Urged to Get Technological

Technology is seen as one way to help domestic logistic enterprises cut costs to gain an edge amidst higher demand in global transport.

A survey by the Vietnam Logistics Association (VLA) revealed that 87% of logistic enterprises agreed that technology creates a competitive edge and 83% it’s up to them to better use technology.

Moody’s Gives Positive Ratings to Three Vietnamese Banks

Moody’s Investors Service has upgraded the long-term local-currency bank deposits ratings and local- and foreign-currency issuer ratings of three banks of Vietnam from B2 to B1. The banks include Asia Commercial Joint Stock Bank (ACB), Military Commercial Joint Stock Bank (MBBank) and Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

Moody’s also raised the baseline credit assessment (BCA) for these three banks from b2 to b1.

Vietnam to Build High Speed Railway to Chinese Border

Vietnam is planning to build a new higher speed rail route connecting the capital city of Hanoi to the northern border with China to boost two-way trade, Vietnam News Agency reported on Monday.

According the plan, the 391 km railway linking Hai Phong city, Hanoi and Lao Cai province will have the global standard track gauge of 1,435 mm instead of century-old gauge of 1,000 mm common in Vietnam.

The average speed for passenger trains is 160 km per hour, while that of freight ones is 90 km per hour.

Vingroup Enters Pharmaceutical Industry with Vinfa

Conglomerate Vingroup has announced its entry into the pharmaceutical industry with its Vinfa brand.

Along with pharmaceutical research, manufacturing, trading and export-import tasks, Vinfa will focus on the preservation, research and development of traditional Oriental medicines with origins in Vietnamese herbs.

Japan’s CyberAgent Ventures Backs Vietnam’s Airbnb-like Startup Luxstay

Japanese venture capital (VC) firm CyberAgent Ventures on Monday announced an undisclosed investment in Vietnam’s Airbnb-like startup Luxstay. Korean VC firm Nextrans also participated in the latest round, according to DealStreetAsia.

Founded by Vietnamese entrepreneur Steven Nguyen, Luxstay is an online platform that connects homeowners looking for short-term rentals with tourists or business travelers.

Remittance to HCM City Increases to $1.12 Billion

Remittance to Ho Chi Minh City in the first quarter of 2018 increased by 4.5% against the same period last year to reach $1.12 billion, a central bank official said.

According to Nguyen Hoang Minh, Deputy Director of State Bank of Vietnam (SBV)’s HCM City branch, most of the remittance is invested in production and business instead of being poured into real estate, securities or savings as before.

Vietnam Firms Raise $938 Million from IPOs in Q1

As many as 12 companies in Vietnam booked a total of 21.3 trillion dong ($938 million) in proceeds from initial public offerings (IPOs) in the first three months this year, nearly eight times the amount in the whole 2017, as the government seeks to boost the local stock market and encourage firms to publicly trade shares, according to data provided by StoxPlus.

[Round-up] Vietnam Aims Decade-High Growth to 2020, Stock Market Outperforms in Q1

[Round-up] Vietnamese, French Firms Ink Sizable Deals during Leader’s Visit

[Round-up] Vietnam Looks to Boost Trade with S.Korea, Hong Kong

TUAN MINH