They note that the longer-term prospects remain favourable, especially with a new stream of supply set to come online in the coming years.

Singapore has been gearing up to become a regional LNG hub in recent years, in terms of both financial trading and physical handling capabilities. The first LNG import terminal opened here in 2013.

It will have a throughput capacity of 11 million tonnes by next year, when its fourth LNG storage tank is up and running.

And last month, the Singapore Exchange (SGX) launched futures and swaps on Singapore’s new price index for LNG, the SGX LNG Index Group (Sling).

But headwinds in the industry remain, with LNG prices having fallen in tandem with crude oil since June 2014. This is as natural gas traded in Asia has traditionally been pegged to crude prices, given that the region lacks a benchmark similar to the Henry Hub in the United States.

Cheap oil, as a result, has put a lid on demand for LNG globally, said Kerry-Anne Shanks, vice-president of gas and LNG at Wood Mackenzie.

“The case for switching from oil to gas has gone away, with crude prices now at US$30 a barrel. And that’s on top of the weaker economic outlook globally,” she told The Straits Times in an interview last month.

Adding to that, spot prices for LNG are being capped by the oversupply in the Asian LNG market, with a further 130 million tonnes of supply to be made available by 2020, noted Shanks. But she also believed that this upcoming supply “should support liquidity”.

Platts Asia editorial director Vandana Hari said it is “natural” to see trading slow down “in an environment of low prices and lacklustre demand”.

“And for any trading hub to operate successfully, it does need a fair amount of liquidity,” she noted. “But Singapore is no stranger to the characteristic ups and downs that all commodity markets undergo. It’s just a question of staying the course.”

Singapore’s role in LNG price discovery, said Hari, is “all the more important” amid today’s volatile conditions. “The more transparent and robust the price discovery system, the better for the market.”

A spokesman for Pavilion Energy said that the longer-term view for global LNG “remains positive”, with Asia set to continue to be a significant LNG buyer globally.

“An Asian LNG hub based on a gas-linked index will provide a more transparent and fair price for both LNG sellers and buyers,” he said, referring to the Sling. “With the current oil price volatility and uncertainty, there is no better time to index the price of LNG in Asia to regional gas fundamentals.”

In a report on Tuesday last week, the SGX said that the next one to two years will present “a clear window” for the Sling to be accepted as the Asian benchmark. It said that the liquid LNG spot market in Asia would “take time” to evolve, but many of the crucial elements were already emerging. These include the shift towards shorter term contracts, the move away from oil indexation and the removal of destination restrictions on cargoes.

At the same time, Singapore LNG Corporation (SLNG), which operates the LNG receiving terminal, said there are opportunities in the small-scale LNG segment, which includes LNG bunkering and the substitution of liquefied petroleum gas, diesel or fuel oil for LNG in industrial use and small-scale power generation. “With the infrastructure that we have built in Singapore, SLNG will be able to play a role in serving the small-scale LNG segment and facilitating its growth,” said a spokesman for the firm, although he also acknowledged that such changes will require time, given the high capital cost involved in different segments of the LNG value chain.

For a hub to be effective and an index to emerge, both buyers and sellers have to commit to use it, said industry veteran Martin Houston, who is also chairman of United States-based LNG firm Parallax Energy. “Buyers will like the flexibility, and once a trading pattern emerges and pricing starts to reflect the true spot price of the commodity, it is more likely to grow quickly, at least to the capacity of the LNG storage available.”

Although only half the 120ha of available land has been taken up by about 60 local and foreign firms, plans are on for the next phase of Singapore’s aerospace industry development, JTC’s assistant chief executive for the aerospace cluster, Alvin Tan, told The Straits Times.

Tan did not say where the next cluster will be located but industry players said Changi East, where the future Changi Airport Terminal 5 will be built, is being considered.

Works spearheaded by JTC to transform the sleepy area around Seletar Airport into a vibrant aerospace hub started in 2008.

The development of the 300ha site, including the airport, was done in three stages.

More than eight years later, Seletar Aerospace Park is home to global names such as engine makers Rolls-Royce and Pratt & Whitney, as well as home-grown firms including ST Aerospace.

Together, they employ about 5,000 people and operate either out of their own facilities or shared premises built by JTC.

The JTC developments include three high-rise buildings and 14 factories.

The second and third buildings will open this month, Tan said.

Apart from the big boys, small and medium-sized local companies such as Wah Son Engineering and WingsOverAsia have thrived at Seletar, adding to the diversity of the area, Tan said.

Wah Son, which moved to Seletar last July, operates out of an 8,000 sq m purpose-built facility.

The firm serves both international and local companies such as UTC Aerospace Systems, Bombardier and Vector Aerospace.

The clustering of aerospace-related operations and businesses at Seletar helps companies to derive benefits from economies of scale and the synergies from being in an integrated environment, said Wah Son executive director Lim Hee Joo.

Singapore’s aerospace industry, which is made up mainly of the maintenance, repair and overhaul of aircraft engines and parts, accounts for more than 2 per cent of the economy.

Even as Singapore aspires to be the premier Asian hub for aerospace services, there is growing competition from neighbouring countries such as Malaysia, Indonesia and Vietnam.

Subhranshu Sekhar Das, Asia-Pacific vice-president for aerospace and defence at Frost & Sullivan, said: “Despite the competition, Singapore is the clear leader with a comprehensive range of services and products as well as superior logistics and other support services.”

The development of Boom Marina will reportedly be integrated with upgrades to Benoa Port in Bali and Labuan Bajo Port in East Nusa Tenggara–all slated to be completed by 2017. The project may also be expanded to include locations such as Karimunjawa Island in Central Java, Lombok in West Nusa Tenggara and Kupang in East Nusa Tenggara.

“We are confident the project will attract more tourists to Indonesia,” said PT Pelindo Properti Indonesia (PPI) president director Prasetyo in a press release circulated on Tuesday.

PPI is a subsidiary of state-run port operator PT Pelabuhan Indonesia III (Pelindo III).

The development of marine tourism at Benoa Port is considered particularly vital, as the port is an entry point for holidaymakers arriving in Bali aboard cruise ships.

In addition to being a destination port, where cruise ships drop off and later pick up the same passengers, Benoa also serves as a turn-around port, where cruise ships can drop off passengers who then go on to holiday in Bali. These passengers leave the island via other modes of transportation, and the cruise ships pick up new passengers before leaving for the next destination.

As reported by kompas.com, Pelindo III also announced other development plans including for Gili Mas and Mandalika Resort in Lombok and Alor in East Nusa Tenggara, as well as future cooperation with Raffles Marina in Singapore and Fremantle Sailing Club in Australia.

Prasetyo said the cooperation would involve support in planning and development, as well as operational and business training such as overseas internship programs for PPI staff.

Said Chung-Sim Siew Moon, the head of tax services at Ernst & Young Solutions: “We propose that Singapore’s income tax system be simplified and made more competitive to promote Singapore as Asia’s business and financial hub, while tweaking certain policies to ease business costs and promote business growth.

As an open economy, Singapore also has to continue to improve the international competitiveness of its tax treaties, she added.

This could mean refreshing them, providing for tax arbitration clauses and greater clarity on the interpretation of tax treaties or adding new treaties.

To support government spending, EY suggested ways to capture new streams of tax revenue through lowering the GST registration threshold and imposing GST on the digital economy.

Currently the GST registration threshold in Singapore is S$1 million per annum – significantly higher than most other countries, EY noted.

Mr Kor Bing Keong, a GST Services partner at Ernst & Young Solutions, said: “The government could consider lowering the GST registration threshold to S$500,000 per annum. A high GST registration threshold was important at the start of GST implementation as it relieves small businesses from GST registration and compliance.

“GST has now become an integral part of businesses and GST-compliant accounting and point-of-sale software is readily available. With the expected increase in social spending by the government, a decrease in GST registration threshold could bring more businesses into the GST net and increase revenue collection.”

Other recommendations that EY made in its wish list included providing incentives for Singapore-based family offices, maintaining the corporate tax rate and increasing the cap for tax deduction for medical expenses.

Currently, companies can claim a tax deduction for their employees’ medical expenses of up to 1 per cent of the employees’ total remuneration for the year. Increasing the cap will help companies to defray part of the business cost of providing this important benefit to their employees, EY said.

Land Bank of the Philippines (LBP) will be the surviving entity when it merges with Development Bank of the Philippines (DBP), pending Bangko Sentral ng Pilipinas (BSP) approval as well as written consent of the state-run Philippine Deposit Insurance Corp.

The merger will result in a bank with combined assets of about P1.6 trillion, just behind Henry Sy-owned BDO Unibank Inc’s 1.88 trillion peso and surpassing George Tan-led Metropolitan Bank and Trust Co’s 1.37 trillion, based on end-September 2015 BSP data.

Ayala-led Bank of the Philippine Islands had 1.16 trillion in assets as of end-September last year while Lucio Tan’s Philippine National Bank had 607.4 billion.

LBP is the country’s fourth-largest bank in terms of assets with 1.14 trillion, while DBP has 465 billion and ranked seventh.

BSP Governor Amando M. Tetangco Jr. said the merger of LBP and DBP “is actually in line with the BSP’s advocacy for bigger and better banks, and would potentially allow the national government to benefit from economies of scale in the banks’ operations.”

Tetangco said in a text message to reporters that the BSP would await the formal application from the parties involved, which should include the national government’s plans as well as the business case for the merger.

Executive Order (EO) No. 198 issued on Feb. 4 and published on Tuesday noted that the Governance Commission for GOCCs (GCG) earlier determined that “it is in the best interest of the State to merge DBP and LBP,” noting the two banks’ overlapping functions.

The EO said the merger “will build a stronger and more competitive universal development bank able to fulfill its mandate of providing banking services to propel countryside development and to contribute to sustainable and inclusive growth.”

DBP’s assets and liabilities will be transferred to LBP under the operational merger. In a text message to reporters, BSP Deputy Governor Nestor A. Espenilla Jr. said the parties involved would have to file a merger application with the policy-making Monetary Board of the BSP. “A law or EO is just their legal basis to merge being government banks. Like all banks, they still have to get Monetary Board approval,” he explained.

“No request for merger has so far been submitted to the BSP. We’ll wait for their application,” Espenilla said.

Following the recommendation of the Department of Finance, LBP’s authorised capital stock will be increased to 200 billion from 25 billion at present. This significant increase would make the merged entity the biggest in the country in terms of capital, the GCG said in a report submitted to Malacañang last year.

In Southeast Asia, the merger would make LBP one of the region’s top 20 lenders, according to the GCG.

The EO also directed the DOF as well as the Department of Budget and Management to infuse 30 billion in capital to LBP.

The GCG will implement the merger, including undertaking a reorganization plan under which personnel of the two banks who will be separated from service will receive a merger incentive pay on top of separation or retirement benefits. About 220 Landbank employees will become redundant while 170 DBP workers would lose their jobs, the GCG had said.

According to him, Vietnamese retailers are vulnerable to integration because of their lack of business strategies and weak management. Some 90 percent of Vietnamese supermarket executives haven’t been trained in retail skills.

He called for government incentives in terms of finance, land and policy to help enhance domestic retail enterprises’ competitiveness.

Phu also said the production industry played a significant role in the development of the retail sector, adding that Vietnamese products would be no match for their foreign rivals with an inefficient, poor quality and slow production process.

Sharing Phu’s view on the need for Government assistance, Le Thi Thanh Tam, Deputy General Director of the Saigon Food Joint Stock Company, pointed to the fact that the majority of domestic retailers were small-and medium-sized enterprises, even super-small ones with weak financial capability and poor experience in production, marketing and distribution.

The government should provide more support for domestic enterprises to develop new products and invest more in product designs in order to compete with foreign enterprises, she said.

Meanwhile, Yukio Konishi, General Director of AEON Mall Vietnam, highlighted the potential of Vietnam’s restaurant and recreation market thanks to its young population.

He expressed his belief that his company could compete with other first-come foreign investors and domestic enterprises thanks to its rich experience, good management ability and high quality and reasonably priced products.

Vietnam and Japan will both join the Trans Pacific Partnership (TPP), which will present huge opportunities for the two nations to boost trade cooperation, Yukio Konishi said.

Now local and foreign customers can pay with their internationally-issued Visa prepaid, debit and credit cards at seven Capital branches, with eventual rollout to 93 Grab & Go convenience stores and four restaurants nationwide.

“We are always looking for ways to better serve our customers. Accepting card payment makes it more convenient for our customers and, at the same time, streamlines the checkout process, freeing up our staff members to serve other customers,” said Daw Thwe Thwe Moe, general manager, Capital Hypermart.

Part of the Capital Diamond Star Group, the first Capital Hypermart opened its door in 2008 at Thaketa Township in Yangon, which, along with Capital Hypermart in Nay Pyi Taw, is the first and largest hypermarket in the country.

Since entering Myanmar in 2012, Visa has tirelessly helped Myanmar financial institutions and merchants to grow their businesses. Currently, there are more than 2,300 point-of-sale (POS) acceptance points and 1,400 ATMs accepting Visa cards.

“We hope to continue this upward trajectory as we work with our partners, so electronic payments will be available for all people of Myanmar,” said Arturo Planell, Visa country manager, Myanmar.

According to the Industry Ministry’s director for the electronics and telematics industry, Zakiyudin, there is still high demand from Indonesian consumers for electronic products and the sector is likely to grow this year, with the consumer market still developing.

Japanese brands Toshiba and Panasonic have recently been in the spotlight amid labor union claims that they plan to lay off hundreds of employees working for plants that operate in Indonesia, but the Industry Ministry has dismissed the claims.

“Panasonic and Toshiba are not carrying out massive layoffs — they are restructuring,” the ministry’s director general for metal, machinery, transportation equipment and electronic industries, I Gusti Putu Suryawirawan, told reporters.

Putu said that while the country’s overall electronics industry growth was relatively stable, the industry was affected by the local currency exchange rate, as most its components were imported from overseas.

The head of the ministry’s research and development department, Haris Munandar, said his ministry had been developing an early warning system for industry development in light of an unusual surge in imports.

Indonesia’s electronics and telematics industry grew by 2.5 percent in the period between 2012 and 2015, with investment in the sector rising 25 percent during the same period, according to ministry data.

Total investment in the industry rose to US$6.6 billion last year from $5.9 billion in 2014, and the industry took on 499 new employees in 2015 as compared with 488 employees the previous year.

The Confederation of Indonesian Workers Unions (KSPI) previously announced that Panasonic had closed its two factories and laid off 1,600 workers, while Toshiba planned to lay off 900.

PT Panasonic Manufacturing Indonesia clarified the claims, with president director Ichiro Suganuma stating that his company had shut down its one lamp factory in Pasuruan and offered voluntary retirement programs to 425 workers.

The closure of Panasonic’s lamp plant was due to a significant drop in demand for compact fluorescent lamps; the company has now shifted focus to developing light-emitting diode (LED) lamps, for which there is growing demand.

“The important thing is that our commitment to the industry remains the same and our investment in LED technology development is still large,” Ichiro said.

Meanwhile, Toshiba has clarified that the actual figure was 360 workers laid off, lower than the labor union’s report.

According to Toshiba, the firm had to terminate the jobs of its permanent workers as the factory located in Cikarang produced well under its capacity last year because of a drastic drop in demand for televisions in the Middle East, a major export destination.

“The site only produced 30,000 TVs out of a capacity of 350,000,” said a Toshiba executive who refused to be named, adding that the company had also terminated 1,000 workers’ contracts last year following the drastic drop in production.

Toshiba Indonesia was recently acquired by Chinese television maker Skyworth Corp. in a ¥3 billion deal that will be fully materialized this year, with a possible change of brand in April. “We’ll keep producing Toshiba TVs, but we remain open to the possibility of producing other electronic devices and therefore may need more workers in the near future,” the source said.

Investment Coordinating Board (BKPM) head Franky Sibarani said that the board was currently seeking formal clarifications from both Panasonic and Toshiba on the matter.

“We can help them to improve competitiveness, including by issuing any necessary policies and coordinating with the relevant ministries,” Franky said recently.

This may explain why instead of choosing a glamorous project to round off his first six months in the hot seat at the SGX, he chose instead to host a dialogue session with the theme of how to navigate the path to future growth in the stock market.

This rather reflective approach is in stark contrast to that of his predecessor Magnus Bocker, whose first big move on taking up the post six years ago was to launch an ambitious S$250 million (US$177 million) plan to invest in what was then said to be the world’s fastest trading engine.

As Loh observes, the challenges that come with his job have arrived “fast and furious”, but while they are tough, he feels they are not insurmountable.

The measures that he unveiled at the dialogue reflected his philosophy – and were in response to feedback from the market.

Gone is the almost unrelenting pace of change which had riled brokers no end. Instead, Loh promises that the market will get a gap of at least six to 12 months between the introduction and implementation of major initiatives to allow time for adjustment.

Better still, the much-feared introduction of collateralised trading will be pushed back all the way to 2018. This will provide much-needed relief to remisiers – self-employed brokers – worried for their livelihood as their clients are used to getting three days’ credit on stock purchases.

Penny stocks have also been given a reprieve. The SGX just last week changed the methodology used to determine if a listed firm meets the criteria of having a minimum trading price of 20 cents. This is on top of extending the deadline to September from next month for them to comply with the rule.

No stone has been left unturned. Even the need for quarterly reporting and the quest for dual class shares are up for review. These initiatives will no doubt win kudos for the SGX from the investment community and smooth the ruffled feathers of remisiers who were so upset with Mr Bocker that some even started an online petition to have him removed.

But this may turn out to be the easiest part of the many tasks awaiting Loh.

Ahead lies the big challenge of how to put the buzz back into the stock market and arrest the decline in stock turnover which is causing despair among remisiers and investors.

Against this backdrop, he will also have to balance the interests of the many different market players with their varying and, at times, conflicting priorities, as he has observed.

So, it is just as well that the steady pair of hands Mr Loh brings to steering the good ship SGX will be put to good use navigating it through the turbulent times ahead – as exemplified by the recent wild swings in the benchmark Straits Times Index.

Not that he has to re-invent the wheel in order to draw retail investors back into the market. In recent years, a great many new CDP accounts have been opened – a big proportion of them by younger investors. (A Central Depository account is needed by someone who wants to invest in SGX-listed shares.)

This suggests it is not so much that investors have no interest in the local market, but rather that they are simply waiting for an opportunity to pounce on bargain purchases. Plummeting share prices in recent times have turned Singapore blue chips into attractive value plays, so investors may well be tempted to jump into the market.

Most people would readily deploy their hard-earned nest-egg to work harder to produce a better return – especially with the relative safety of investing in good-value blue chips.

As Loh embarks on what amounts to something of a repair job, certainly in terms of market perceptions, history may be on his side. Despite the challenges, the seeds of success are already embedded within the SGX.

Older readers will recall the uphill struggle faced by Loh’s predecessor once removed, Hsieh Fu Hua, in breathing life back into the market over a decade ago, after it had been hit by a series of financial calamities – the 1997-98 Asian financial crisis, followed by the bursting of the dotcom bubble in 2001 and the Sarscrisis of 2003.

A new vision emerged from the tough challenges as the SGX was forced to replace Malaysian-listed counters whose trading here was discontinued after Kuala Lumpur imposed capital controls in 1998 to combat the Asian financial crisis.

In response, the SGX turned itself into the Asian Gateway, attracting companies from far and wide – China, Indonesia, United States and even Israel – to list here.

A big market was set up in real estate investment trusts (Reits), whose mouth-watering yields make them a draw for yield-hungry investors, turning Singapore into Asia’s leading Reit centre.

Two other products which made their appearance around the same time – exchange traded funds (ETFs) and covered warrants – had also shown great promise, if not meeting with the same enthusiastic response from investors.

In the case of covered warrants, annual turnover had almost trebled from S$10.6 billion in 2005 to S$28.2 billion in 2007. But last year, total warrant turnover was languishing at just S$3.82 billion – as a combination of tighter regulations and the risk aversion after the global financial crisis dampened investors’ appetite for them.

Interest in ETFs has shown signs of revival, with turnover last year rising by 23.8 per cent to S$2.91 billion from 2014’s S$2.35 billion. But this is still a pale shadow of the frenzied activity in 2011 when turnover hit S$8.75 billion.

Considering that both of these products have won widespread appeal among investors elsewhere, it may come as a surprise that appetite for them has somewhat waned here.

Simply working on the right strategy to beef up interest in ETFs and covered warrants would be one sensible way to bring back the buzz to the stock market – and that is not to mention relooking other products such as extended settlement contracts, which may appeal to a younger generation of investors.

Geomancers have suggested that the Year of the Fire Monkey, which starts today, will be full of surprises. But the Chinese phrase for crisis “weiji” stresses that with danger comes opportunity to be grasped.

As the monkey is witty, nimble and flexible, it is also a good time to take stock and successfully surmount the challenges we face.

In this light, Loh’s emphasis on bringing a sharper focus to what the SGX is doing will stand him in good stead. We wish him and the market Gong Xi Fa Cai.

Samsung Electronics Vietnam

Samsung has so far invested US$14.8 billion in Vietnam, making it the largest foreign direct investor and employer. Besides, 30 per cent of Samsung Electronics Corporation’s workforce is in Vietnam.

Samsung was also the biggest contributor to Vietnam’s exports in 2015, accounting for 20.2 per cent with $32.7 billion. We will continue to bring “made-in-Vietnam” products of global quality to customers world-wide. We now have more than 110,000 employees in Vietnam.

The above numbers emphasise Vietnam’s importance to Samsung. We believe our partnership with Vietnam will continue to benefit each other in 2016.

In 2014 and 2015 Samsung co-operated with the Ministry of Planning and Investment and the Ministry of Industry and Trade to hold seminars on supporting industry development to find potential local suppliers. We also visited several Vietnamese vendors to check their capabilities, and invited about 20 Vietnamese suppliers to visit Samsung’s first and second suppliers. Samsung also brought three experts from Korea to help four Vietnamese suppliers enhance their capacity. This was a pilot project in 2015 and we expect to expand it in 2016.

Samsung is willing to collaborate with local suppliers and contribute to the development of Vietnam’s supporting industry. Samsung does not give any kind of favoured treatment to any particular companies. Any supplier that meets Samsung’s standards of quantity, quality, timely delivery has an equal chance to join our supply chain. It will benefit both Samsung and Vietnam if there are more parts suppliers near our factories in Bac Ninh and Thai Nguyen. Samsung will prioritise placing orders with local businesses if they are able to meet our standards.

One thing I can reveal is that Vietnam is the biggest production hub of Samsung Electronics, and we will continue to expand our business [here]. We are always trying to find business opportunities and devoting our human resources and technologies to contribute to a better future for Vietnam.

Viettel

Last year Viettel started operating in two new markets – as Halotel in Tanzania and Lumitel in Burundi. With these two new markets, our company has now invested in 10 foreign markets with a population of 270 million, three times bigger than Vi?t Nam.

We have broken even in six out of the 10 markets. This year we hope to start getting profits from the rest.

Last year revenues from foreign markets were worth nearly US$1.5 billion, a year-on-year increase of 25 per cent.

Investing abroad is one of Viettel’s three main strategies. That is why the company targets becoming one of the top 10 telecom companies in the world in terms of investing abroad by 2020. By then, we hope to be in 20-25 international markets with a population of 600-800 million.

On average, Viettel invests in two new markets a year. Turnover from foreign markets is apace with the company’s strategy. We plan to maintain growth of 15-20 per cent a year and break even in a new market in three to five years.

East Timor is a small market. It is difficult to set up infrastructure due to its mountainous terrain. However, it has brought us fruitful results. It was the first market where Viettel recouped its investment within six months.

To Vietnamese companies who want to invest abroad, I want to quote an African proverb that I think is completely correct: If you want to go fast, go alone; if you to go far, go together.

We have been a pioneer and we hope that other companies will go with Viettel like we did in the past. ‘Together for the Better.’

With determination, Viettel and other Vietnamese companies can be confident and compete in the global market.

HCM City Union of Business Associations

To discuss the economic prospects for 2016, we should first discuss about the economy in 2015.

Last year the economy grew significantly, especially in HCM City where local companies achieved a growth of 10 per cent. This was 1.5 times the average for the country.

The performance could be attributed to the support from the Government and the city. Many programmes to stimulate the market, improve human resources and offer credit at preferential interest rates were organised to help companies overcome difficulties and expand.

Many companies in HCM City have prepared well for 2016, a year of deep integration when the AseanEconomic Community will be in place and Vietnam becomes a member of many important free trade agreements.

The integration will bring more opportunities for companies, especially exporters. Moreover, there will be opportunities to expand business and co-operation in all sectors. Thanks to that, there will be a leap for the economy. And I expect companies in HCM City to continue to grow at more than 10 per cent.

The challenges, I think, will be mainly for small and medium-sized enterprises because they lack the capability to immediately transform and adapt to new regulations. However, these challenges and obstacles will soon be swept away. In my opinion, it will take them only two years to overcome difficulties.

Home Credit Vietnam

Based on the optimistic forecasts of economic institutions like IMF and World Bank, I believe Vietnam will achieve a high growth rate in 2016, as high as the 6.6 per cent targeted by the Government. Given the positive outlook for Vietnam’s economy, credit operations by financial institutions would also see strong growth, especially consumer finance.

Vietnam with its big population and a majority of that at working age offers much potential for consumer finance especially since just a small part of the population can now access financial services provided by banks. According to a study by the Strategy Institute of the State Bank of Vietnam in 2013, the consumer lending market grew by 20 per cent annually in 2009-12.

The consumer finance market will see severe competition in the near future as many banks plan to set up their own finance companies to focus on consumer lending. However, competition will bring benefit to customers in Vi?t Nam and the evidence is that consumer lending rates have been on a downward trend, even down to 0 per cent, which you could not have imagined just three years ago.

Joining international economic agreements will benefit Vietnam’s economy as goods will be diversified and have more competitive prices, prompting an increase in consumption. Vietnamese workers’ incomes will improve, increasing their purchasing power. In addition, when the economy is more open, more companies selling goods will enter Vietnam, and that will be a great opportunity for financial institutions to expand partnership networks to serve more customers.

Lazada Vietnam

E-commerce is seeing a positive trend, and we expect it to continue in 2016. We are in a positive spiral where customers and retailers are showing more and more interest in a shopping channel that has proven its value to customers over the last few months: price competitiveness, assortment breadth and convenience.

I think this is a great opportunity for the Vietnam e-commerce market to grow even faster. Joining AEC and TPP will cause Vietnam’s international trade to expand: consumers will have a larger, more diverse assortment of goods to choose from.

Of course, Lazada will investigate the new opportunities that TPP and AEC will offer, with respect to our ability to both sell and source abroad. However we are mainly interested in sourcing competitive products from abroad and offer them to Vietnamese consumers.