Vietnam: Country Pulse

Euromonitor International 21 April 2011

Hot topics in April 2011 Inflation changes consumption habits, Affluent consumers seeking weekend homes and Consumers turn away from Japanese food.

Inflation changes consumption habits (April 2011)

Rapidly rising prices have prompted many to alter their consumption habits, saving fuel and eating less meat, for example. After petrol prices increased to over VND21,000 (US$1) per litre in early April 2011, Hieu from Ho Chi Minh City, who distributes soft drinks to retailers, said he would change his current motorbike to an older model , which had a smaller engine and therefore consumed less fuel. Many families have cut down on meat consumption and increased the use of vegetables in their meals. On one online forum for mothers, members discussed measures to save money: Phuong from Ho Chi Minh City said her family decided to cut down spending on food, clothes and furniture: If previously, I bought 0.5kg of pork a day, now I buy 0.3-0.4kg. I'm gradually turning to other kinds of food like dried fish or tofu, she said. Binh from Hanoi said that her family had decided to only buy cheap, nutritious foods like vegetables and fish, and to stop eating more expensive food like seafood and pork ribs.

Affluent consumers seeking weekend homes (April 2011)

Demand for resort real estate is growing among Vietnamese property buyers. Internet site VietNamNet Bridge reported that a real estate corporation organised a tour to a resort in the mountainous northern province of Hoa Binh during early 2011. The 50-seat coach was full of people, many of whom were young and wealthy. In addition, there were many others who drove out to Hoa Binh. After the sightseeing tour, ten contracts to purchase villas were signed on the spot. When asked about the purpose of the purchase, most of the buyers said that they wanted to have somewhere to stay outside of the city at the weekend.

Consumers turn away from Japanese food (April 2011)

Sales of Japanese food in Vietnam have been hard hit by worries regarding possible radioactive contamination. Although no contamination has yet been discovered in Vietnam, many consumers have stopped purchasing Japanese food as a precaution: I used to buy Japanese powdered milk for my children, but I have now replaced it with Australian milk, said Mrs. Hoa of Ho Chi Minh City. Loan, the owner of a food shop in Hanoi, said that her company had stopped importing powdered milk from Japan, as demand for it had fallen sharply. According to the Vietnamese Ministry of Agriculture and Rural Development, it has asked importers to present safety certificates for each batch of products imported from Japan.

For diners with money to spend, food safety is a priority (March 2011)
The number of people eating in luxury restaurants and hotels is rising in Vietnam, due in large part to the fact that food safety remains a huge issue in the country. For breakfast, affluent customers can spend as much as VND750,000 (US$36) on a bowl of pho (Vietnamese noodles). At mass market restaurants, the price of pho ranges from VND20,000 to VND30,000. During the weekend, affluent families can spend as much as several hundred US dollars on breakfast. Many of Hanoi's most affluent households also eat lunch and dinner at these venues because they believe the food there is safer. Thang, the owner of a real estate firm in Hanoi and a regular diner at a hotel restaurant on Lang Ha Street, explained that I don't think that I go to this restaurant to show off my wealth. It is simply that I can afford to pay VND750,000 for a pho bowl that I think is safe and delicious. Hotels and restaurants have changed their menus to offer more vegetables and healthy dishes to cater to this high-spending clientele.

Vietnamese-made goods capture local market (March 2011)

The government's Be Vietnamese, buy Vietnamese-made goods campaign is proving successful, as domesticallymade goods are regaining the confidence of local consumers. Vietnamese consumers generally lack confidence in domestic products, due to such problems as poor quality, weak after-sales service and limited warranties. Efforts to increase consumer confidence include making goods more available in rural areas, selling them in industrial parks and holding regular sales. A survey conducted by the campaign's steering committee during early 2011 found that 59% of consumers preferred Vietnamese products and 36% who had previously bought foreign-made products had now switched to locally made goods. Vietnamese clothes, footwear, food and household goods proved to be particularly popular with local consumers. Data released by the campaign's steering committee showed that 80-90% of goods sold in Co Op Mart,

Big C, Metro and Fivimart supermarkets during the Vietnamese New Year holiday were domestically produced, up from around 50% in 2010.

Love-struck teens acquire virtual marriage certificates (March 2011)

Many Vietnamese teen couples are acquiring virtual marriage certificates as a way of proving their everlasting love. A popular topic on Pro9x, an online forum for those born in the 1990s, is Centre for Marriage Registration. Members can fill in an application for Marriage Registration, and forum administrators then grant them a virtual marriage certificate. In addition, their names are added to the list of couples on the forum. The virtual marriage certificate is intended to remind couples of their love and to show their possession of each other. Minh, a high-school girl, explains that This is completely normal. We got a virtual marriage certificate for fun and to confirm our attachment in love.

Teenagers rent luxury goods (February 2011)

Many teens in Vietnam are now hiring luxury items to satisfy their craving for luxury or to show off to the world at large. They can hire everything from clothes, bags, shoes and jewellery to mobile phones or even cars, with such brands as Louis Vuitton, Chanel, Gucci, Lacoste, Burberry and Moschino available. For VND200,000 (US$10), Phuong, a student, can hire a Chanel dress for a day. She said she is a luxury addict but cannot afford to buy such products outright. While girls are interested in clothes and jewellery, boys are attracted by latest mobile phones. For VND20,000 to VND200,000 a day, they can hire a top-of-the-range model. This service was particularly popular during the Lunar New Year (Tet) holiday. According to businesses operating in this area, most of their clients are teenagers.

Imported fruit a hit for Tet (February 2011)

Fruit imported from the USA and Australia has been popular this Tet (Lunar New Year) in Hanoi's fruit stands and shops. Phrases like special, completely safe, and no preservatives are commonly used by importers to market these fruits, which are often purchased as luxury gifts. Customers can purchase this fruit online and have their order delivered to their home. Though this type of fruit is very expensive, it has been selling well, with customers sometimes having to wait days to have their orders delivered. However, some in the industry have questioned the quality of this imported fruit and called for an investigation.

Ornamental rocks a hit with discerning consumers (February 2011)

Wealthy Vietnamese often seek special and expensive things to display for Tet. Ancient peach trees, unique ceramic products and special ornamental trees used to fulfil this function, but many now regard such items as pass. Instead, some now pay the equivalent of thousands of US dollars for ornamental rocks. The hobby of collecting and displaying ornamental rocks comes from China, and it has been adopted by some affluent Vietnamese who say that it brings them to be closer to nature and helps to alleviate the stress of daily life. Moreover, they do not require as much labour as other kinds of ornamental displays featuring flowers, birds or bonsai.

Significantly more boys born than girls (January 2011)

The ratio of boys to girls in Vietnam has increased rapidly over the past five years. According to a report published in October by the United Nations Population Fund (UNFPA), the sex ratio at birth (SRB) is now 110.6 males per 100 females, significantly exceeding the standard 105. According to Bruce Campbell, a UNFPA Representative, identifying the sex of the foetus had permitted couples to select a baby's gender. The report also found that the SRB increases with levels of education: The ratio of boys to girls was 107.1 among mothers with no more than a primary education, whereas it was 113.9 among university-educated mothers. "By 2050, the opportunity of males to find female partners will be affected," said Dr Christophe Guilmoto, author of the study.

Teens lap up online shopping (January 2011)

Vietnamese teenagers are increasingly shopping online. Sites like nhommua.com, muachung.vn, phagia.com.vn and deal.zing.vn are particularly popular with this age group. David Tran, chief operating officer of nhommua.com

observes that young people chose products and services with quality and prestige in mind. Customers have the option to pay cash on delivery or online. However, this new shopping method still has a few shortcomings. For example, Le Minh Duy, a university student in Ho Chi Minh City, purchased a coupon for practicing yoga but found that he had to visit offices in different parts of the city several times to get his coupon when the online delivery failed. Some consumers have also expressed concern regarding the quality of items they purchase online.

Medicinal wine popular despite health risks (January 2011)

Medicinal wines remain a favourite drink for many Vietnamese men, despite warnings of potential risks from both doctors and herbalists. The "medicines" in medicinal wines can include herbs or insects, reptiles, and even mammals that have been soaked in wine. "I drink different kinds of medicinal wines, especially snake wine, to improve my health," said 48-year-old Hanoi resident Nguyen Van Vuong. "I don't think there's any harm, unless you drink too much," he added. Indeed, doctors and herbalists say medicinal wines can cause problems if drunk in excessive amounts. Moreover, Nguyen Kim Son, deputy director of Bach Mai Hospital's Vietnam Poison Control Centre has warned consumers to look out for substandard or fake wines made with methanol. In some localities, wine producers even use urea, he said.

Counterfeiting rampant (December 2010)

About 62% of local consumers buy counterfeit goods without being aware of it, according to a survey conducted by the Vietnam Standards and Consumer Association (Vinastas) during late 2010. Counterfeit goods are not only being sold in markets and small shops but also in large department stores and supermarkets. A representative from a company that imports products from international fashion houses claimed that nearly 90% of luxury fashion items in Vietnam are not genuine. Some popular Vietnamese brand names, including Viet Thy, FOCI and Ninomaxx, are also being counterfeited. Almost as soon as they have released a new collection, fake copies of their designs are usually available in markets at half the price of the real thing.

Government joins with retailers in effort to wean consumers off plastic bags (December 2010)
The Vietnamese are big users of plastic bags and rarely opt for more environmentally friendly alternatives. According to the Ho Chi Minh City Department of Natural Resources and the Environment, consumers in the city dump 90% of the plastic bags they use. However, the department is trying to change attitudes: Eleven retailers in the city have joined its Month of Environmentally Friendly Bag Use and are attempting to persuade customers to minimise the use of plastic bags by providing them with eco-friendly alternatives and giving coupons to those who avail of them. However, one customer observed that Most supermarkets use plastic bags, and eco-friendly bags are very uncommon.

Nude wedding photos a hot trend (December 2010)

The practice of taking naked wedding photos has spread to Vietnam from China. The manager of a photo shop in Hanoi said that taking nude wedding photos has been practised in Hanoi for almost a year. He said that couples generally pay at least VND9 million (US$450) for an album. Couples are warned about the potential danger of their pictures being seen by others and perhaps even finding their way onto the internet. Moreover, the parents of many young couples strongly disapprove of this practice, and some photo shop managers say they have been asked to promise or sign a contract with clients to keep their nude photos secret.

Amid a flood of mall space, retail hits the skids (November 2010)
The retail market in Ho Chi Minh City (HCMC) has great potential, but this does not always translate into success on the ground. When it was opened last December, the Kumho Asiana Plaza in District 1 had some 30 stores selling luxury products, but after months of slow sales, many tenants fled because they could no longer afford its relatively high rent. Now there are only a few stores left in the mall, which is one of the biggest shopping centres in the city. Another shopping mall, Saigon Paragon in District 7, was temporarily shut down in early October. High rents (from VND1.4 million or US$70 per square meter) often make it hard to generate profits in these centres.

According to the Industry and Trade Department, there are currently 102 supermarkets and 28 shopping malls in HCMC, and it expects the amount of retail space in the city to double by 2013. However, this growth depends on growth in the purchasing power of local consumers: According to one toy retailer who wished to remain anonymous, the retail market depends on the growth of the middle and upper class but that there are currently more window shoppers than real buyers.

Halloween creeps up on Ho Chi Minh City (November 2010)

Halloween celebrations have grown in popularity in Ho Chi Minh City over recent years. Nowhere is this reflected more than in the costumes that many shops in the city stocked for the revelries this year. The choice is now wider and products more expensive. Superman and Spiderman costumes, angel and butterfly wings and monster masks are perennial favourites. Halloween accessories are usually sold in souvenir and toy shops. Many restaurants and upmarket hotels are also cashing in on the growing popularity of Halloween, offering themed buffets and parties.

Interest in mobile phones surges (November 2010)

A growing number of Vietnamese are purchasing or upgrading their mobile phones, as service providers continue to lower both their charges and the prices of high-end models. Recently, consumers in Hanoi, Ho Chi Minh City and Da Nang queued for hours to purchase Apple's new iPhone 4. According to local industry sources, Vietnamese consumers do not change their phones as frequently as their counterparts in Hong Kong, Taiwan or South Korea. However, the number of Vietnamese people who own at least two mobile phones or who buy a new one every six months or annually has been increasing steadily. According to Euromonitor International data, the number of mobile telephone subscriptions in Vietnam surged from 23.7 million to 70 million between 2007 and 2008, reaching 89.3 million during 2009.

Vietnamese wearing Chinese footwear (October 2010)

Vietnam ranks fourth on the list of the world's top shoe exporters, according to data from the General Statistics Office of Vietnam, but the domestic shoe market is dominated by foreign-made products, with Chinese offerings particularly popular. Many Vietnamese salespersons advise customers to buy Chinese goods because they are more diversified in design. Perhaps more importantly, they carry profit margins up to three times higher than those made in Vietnam. Moreover, retailers can defer payment for Chinese products, while they must make prompt payment to Vietnamese producers. Although Vietnamese products are said to be more durable, most Vietnamese companies can only supply products with a limited number of designs. According to Lefaso, the Vietnamese Leather and Footwear Association, 90% of products from big domestic footwear firms are reserved for export. In fact, most big domestic enterprises are not really interested in selling products on the domestic market.

New iPhone flies off shelves (October 2010)

Apple's latest iPhone completely sold out when it was officially launched in Vietnam on September the 30th. Local telecoms networks Vinaphone and Viettel said they imported only 500 of the phones each and that these sold out completely after just a few hours. Pham Ngoc Tu, Vinaphone marketing manager, said that demand for the iPhone4 was much higher than expected. As there were not enough phones to meet the demand, many consumers went home empty-handed and angry. The official prices were set at VND13.4 million (US$690) for the 16 gigabyte (GB) version and VND15.6 million for the 32 GB model. Prices are more expensive in smaller phone shops: Before the iPhone 4 was officially released, some mobile shops in Hanoi and HCM City sold grey market phones for up to VND29 million. However, many affluent Vietnamese are prepared to pay these inflated prices to own the hottest technology.

Second-hand cars enjoy growing popularity (October 2010)

The used car market in Vietnam is expanding rapidly. Not everyone has enough money to purchase a brand new car, and some want a used car in which to practice driving before they buy a new one. Japanese cars priced from VND300 million (US$15,400) to 600 million to are best sellers among new cars. In Vietnam, used cars are purchased through a variety of channels, such as newspaper ads and auto forums, through acquaintances and via brokers, auto salons and used-car centres at Toyota Vietnam or Ford Vietnam. Most buyers

come to auto salons or used-car trading centres. It can be difficult to purchase cars through advertisements, as car brokers move quickly and often purchase these cars before buyers contact the sellers.

Green real estate becomes fashionable in HCM City (September 2010)

Green real estate is gaining popularity in Ho Chi Minh (HCM) City, as real estate developers seek to take advantage of the city's waterways and greenery to increase the attractiveness of their real estate projects. The focus is on green apartments, villas along river banks with open architecture that take full advantage of the natural space. Most are located far from the city centre but still have good transportation links. One such development is Saigon Sunbay, which is currently under construction. It is located 50km from the centre of HCM City and is surrounded by the sea and mangrove forests belonging to a biosphere reserve area recognised by UNESCO. However, Khuong Van Muoi, deputy chair of the Vietnam Architecture Association, says that although green real estate is a growing trend, Vietnam still does not have standards for ecological real estate. Moreover, while real estate developers believe that green real estate is a market segment with great potential, they are only targeting high income earners.

Fighting counterfeit cosmetics (September 2010)

Counterfeit cosmetic products worth a total of VND570 million (US$29,200) were discovered in an investigation of 30 shops in Hanoi during August 2010. "Fake cosmetics are spreading widely and are mixed among genuine products," said Hoang Dai Nghia, deputy head of the Market Watch Office. Counterfeit products bearing such labels as Gucci, Clinique and Lancme were being offered at knock-down prices. For example, a fake tube of Clinique Happy Heart Body Cream was offered for VND220,000 (US$11.30) in one shop, much less than the VND560,000 (US$28.70) charged for the genuine article elsewhere. Most of the customers buying these knock offs are teenagers with low incomes: "I often buy lipstick and skin care products... The price is reasonable and they sell brands with good reputations," said one girl from Viet Duc High School.

Shocking toys a teen craze (September 2010)

Prank toys are becoming increasingly popular among the youth of Ho Chi Minh City, and one of the most popular is an "electrocuting" ballpoint pen. It looks like a normal ball-point pen, but it gives the unsuspecting user a mild electric shock when the head of the pen is pressed to write. The pen contains a 1.5-volt battery that generates an electrical current. Other "electrocuting" gadgets include USB sticks, boxes of chocolates, flashlights and lighters. Teenagers buy these toys, most of which are made in China, from such websites as holytoy.net or any of the many shocking toy shops in the city. However, doctors warn that such toys can be dangerous.

Public outcry over online games addiction leads to strong government response (August 2010)
The Ministry of Information and Communications has decided to temporarily halt the licensing of online games, to ban advertisements for them, and to cut off internet access to shops that offer internet access to the public between 11pm and 6am. This crackdown on online games follows a public outcry about their negative influence on the country's youth: Media reports have blamed an increase in juvenile crime and school truancy on addiction to online games. The country has 22 licensed gaming companies and 93 games, of which 18 companies with 76 games are currently operating. A survey conducted earlier this year by the Ministry of Education and Training found that 70% and 76% of primary school children were playing online games on weekdays in Hanoi and Ho Chi Minh City, respectively. The Ministry is examining cooperating with the Public Security Ministry to manage internet usage with electronic IDs. "The electronic IDs will not only be helpful for dealing with online games issues but also for mobile phone subscriber management," says Luu Vu Hai, director of the ministry's Electronic Information and Broadcasting Department.

Increasing number of Vietnamese women leaving country to marry foreigners (August 2010)
A study conducted by Daniele Belanger of the University of Western Ontario has found that an increasing number of Vietnamese women are leaving the country to marry husbands in other Asian countries that are experiencing a shortage of women. According to statistics released by the South Korean Consulate General in Ho Chi Minh City, 8,000 Vietnamese women were granted Korean marriage visas in 2009. According to the consulate, around 35,000

women woldwide applied for similar visas. A study published in 2005 found that nearly 100,000 Vietnamese women had moved to Taiwan to marry. According to statistics provided by the Vietnamese Ministry of Justice, Vietnamese women account for 35% of all foreign brides in Taiwan. According to one woman from the Tan Loc Commune in Can Tho, even well-off households are marrying off their daughters to foreigners because they feel the other households are getting richer by receiving a lot of money from their daughters abroad.

Exclusive breastfeeding rate falls as formula manufacturers exploit regulatory loopholes (August 2010)
The rate of exclusive breastfeeding is falling in Vietnam. The number of Vietnamese babies who are exclusively breastfed during the first six months of life currently stands at less than 20%, according to the United Nations Children's Fund (UNICEF). It estimates the average rate of exclusive breastfeeding is 42% for Asia as a whole. Exclusive breastfeeding rates have increased in most regions in the world, but this is not the case for Vietnam, says Roger Mathisen, Nutrition Specialist for UNICEF Vietnam. The blame for this has been laid at the door of aggressive marketing campaigns by formula milk companies. According to Euromonitor International data, formula sales in Vietnam grew by 17.5% in 2009, to US$391 million. A government decree prohibits formula salesmen from approaching health workers or mothers at healthcare facilities, but it contains many loopholes that have enabled formula firms to market their products freely. The walls of nursery schools in Hanoi and Ho Chi Minh City are often decorated with the logos of American and European formula brands. According to Dr. Nguyen Mai Huong, an expert at the Health Ministry's Department of Mothers and Children's Health, formula companies are using the country's underpaid health workers to endorse their products for cash or other benefits.

Property restrictions for overseas Vietnamese lifted (July 2010)

Prime Minister Nguyen Tan Dung has approved new home ownership regulations allowing overseas Vietnamese to purchase an unlimited number of residential housing units in the country. The regulations also cover expats who keep their Vietnamese nationality, those who have invested in Vietnam, those who are married to a Vietnamese citizen, and those who have made valuable contributions to the country. Home ownership for overseas Vietnamese, known locally as 'Viet kieu,' will be stable and secure, the regulations state. However, they also impose strict penalties on those who forge documents in an effort to make themselves eligible for home ownership in Vietnam.

Hanoi unveils electric bus tour of old quarter (July 2010)

A pilot project to operate 12 electrically powered tourist buses around Hoan Kiem Lake and in Hanoi's Old Quarter came into operation during early July. The service will take tourists around Hoan Kiem Lake (the Lake of the Returned Sword) and to the guild streets, food courts and historical relics of the Old Quarter. The Old Quarter, which is located near the historic lake, was created in the 11th century when the 100-hectare area was home to 36 guilds, each of which gave its name to a street. The project aims to promote beautiful images of Hanoi, further develop the city's tourism industry and celebrate the upcoming 1,000th anniversary of Thang Long-Hanoi.

Government steps up internet control (July 2010)

Blogger Nguyen Hue Chi is locked in an electronic game of cat and mouse with a mystery cyber attacker, widely believed to be the government. Chi and his colleagues have set up a series of websites and blogs questioning government policy in the past year, only to see them attacked and blocked. "It seems that the government is definitely starting to follow the China model," said a foreign diplomat who asked for anonymity. About 24 websites are thought to have been disrupted so far this year. Vietnam's Ministry of Foreign Affairs said that soaring rates of internet use have brought "challenges," such as violent content and pornography. "This decision is aimed at guaranteeing the health and safety of internet users at public internet access points in Hanoi," said ministry spokeswoman Nguyen Phuong Nga.

Making the streets safer for pedestrians (June 2010)

Getting around urban Vietnam involves dodging cars and the ubiquitous motorcycle, which can be an art in itself, but local governments are planning to make it easier for pedestrians to get around. Currently, footpaths are used for trading, parking, storing, eating and drinking everything except walking. Some time ago, an attempt was made to install button-operated traffic lights, but local pedestrians were not used to this way of doing things, so they were eventually removed. As part of the new regulations, these systems will be

reinstalled. In addition, motor vehicle operators will have to give priority to pedestrians who want to cross the road, while pedestrians will be asked to stick to footpaths and only to cross the road at designated crossings.

Almost all internet users now read online news (June 2010)
A survey of 1,500 individuals in Hanoi, Danang, Ho Chi Minh City and Can Tho conducted by Yahoo! and Kantar Media during April 2010 found that the proportion of internet users reading news online has increased substantially, rising from 89% in 2008 to 97% in 2009. A growing number of participants also said that they liked to access the internet at home, rather than in a cyber cafe. The main reasons for this were lower subscription fees and more userfriendly internet installations. With the rise of home usage, online access via cyber cafes has declined from 53% of users in 2008 to 42% in 2009. Internet access via mobile devices jumped from 9% of users in 2008 to 16% in 2009, largely due to reduced fees. Reading news was the favourite internet activity among respondents, followed by gaming and shopping, with 11% of users making a purchase online in 2009, up from 4% in 2008.

Rise in beer drinking heightens thirst of foreign brewers for local acquisitions (June 2010)
Beer drinking is on the rise in Vietnam: According to Euromonitor International data, the volume of beer consumed in the country exhibited a compound annual growth rate of 9.3% during the period 2004-2009, to more than 1.6 million litres. Attracted by this growth, international brewing companies are increasing their presence in the market by acquiring local players. Japanese brewer Sapparo has announced it is to acquire a 65% stake in Kronenbourg, a 50:50 joint venture between Carlsberg and Vietnam National Tobacco Corporation (Vinataba). In addition, Carlsberg has plans to assume full control of Hue Brewery (in which it currently has a 50% stake).

Sports activities on the rise (May 2010)

Sports fields laid with artificial turf are springing up all over the Ho Chi Minh City. The demand for space for these playing fields is so intense that ten have even been built in rubbish dumps. This demand is mainly being driven by the huge popularity of football in the country. Former soccer player Nguyen Luat Phuoc says Soccer has become more popular due to the advent of artificial turf. Practically every administrative agency has a soccer team. The number of synthetic fields in HCM City jumped by 400 in 2009, to 500. These are filled with soccer players from 10am to 9pm daily, and admission fees are kept as low as possible to encourage people to play sports: They range from VND100,000 (US$5.25) to 120,000VND per hour in the daytime and up to 200,000VND per hour in the evening.

Teen Love Vietnam style (May 2010)

Teen love is one of the hottest trends on the streets of Ho Chi Minh City at the moment. Heart-shaped CDs containing pictures of loved ones and favourite songs are currently the gift of choice for love-struck teens. Hoai Nam, a student from HCM City University, says I produced a CD as a birthday gift for my girlfriend. The CD contains a song that both of us love, an audio clip with a message for her and our pictures. There is nothing better Without real love, you can't make such gifts. In such a traditional society as Vietnam, overt displays of affection are rare. However, as consumerism grows, young people are using consumer products and now technology to express themselves in ways that break the traditional rules of engagement. Unfortunately, some young girls naively added topless pictures of themselves to their CDs, and these have now ended up online. In one online forum for teenagers, the posting of photos of two young girls with the names of their boyfriends written on their chests surprised many and led to protests.

Regulation of mobile phones tightened (May 2010)

The government is finding new ways to regulate the country's mobile phone market. Over the last year, all prepaid subscribers have been required to register their name, date of birth and ID card or passport. The government claims that this is part of a crackdown on companies and individuals who send out large volumes of unsolicited text messages. The deadline for registration was December 31, 2009. As a result, up to 500,000 unregistered phone numbers will be deactivated. Separately, the government wants to levy a special tax on iPhones and other high-end models. By April 2010, 14,500 iPhones had been imported into Vietnam. The General Department of Customs and the Ministry of Industry & Trade are seeking to curtail these imports by placing an additional luxury goods tax on them.

Supermarkets raising prices (April 2010)

Supermarkets are increasing prices significantly, from between 5-15%, across a range of categories such as clothes, cosmetics, plastic products, food, soft drinks and home appliances. Nguyen Thi Anh Hong, owner of the Maximark chain said that suppliers are raising prices and so it was no longer possible to keep prices stable for consumers. Suppliers are blaming higher production and transport costs plus a weaker Vietnam dong against the US dollar. According to supermarkets, imported goods and items produced from foreign materials have especially increased in price, making them less affordable for locals.

Plastic bags in decline? (April 2010)

The Big C supermarket chain has introduced reusable bags in recognition of the fact that plastic bags are becoming a big challenge for the country. To date, Big C has 10 supermarkets across Vietnam with the latest opening in the Garden Trade Centre in The Manor Me Tri deluxe apartment zone in Hanoi, and covering 3,700 sq. Metres. The reusable bags sell for VND6,500 (US$0.35) and are called LOHAS after the global green-aware consumer segment living Lifestyles of Health and Sustainability. To date, Big C has sold 400,000 LOHAS bags bearing a 'reducing environmental pollution' message. In addition Big C also collects used batteries and selects environmentally friendly suppliers. Le Thi Thanh Tam of Big C's stresses that the chain also encourages its suppliers to be socially responsible throughout the production process.

Free & Easy tourism (March 2010)

In mid-2009 a new generation, calling themselves "8X", began to express their individuality. Now this expression of self-confidence and individuality is seeping into mainstream tourism. Many tour operators are offering Free & Easy (F&E) tours aimed at the domestic market. In this new format, tour companies only provide transport and accommodation while customers plan the itinerary. The growth in infrastructure is also fuelling the increase in F&E tourism, but interest is not restricted to domestic tours but takes in international destinations as well. In August 2009, Vietway, a local tour operator, began organising F&E tours to Europe. Nguyen Ngoc Tu, Vietway's managing director says that Vietway is pinning its future growth on F&E tours. He states that the Vietnamese are becoming more confident and proactive when planning their trips.

Garlic wine anyone? (March 2010)

Okay, it's not a trend per se, but surely garlic wine has to be one of the all time most unusual drinks. Apparently garlic wine has been around for years and not just in Vietnam as a traditional remedy. In Vietnam traditional medicine is maintaining its status alongside Western developments and the fact that an article on garlic wine is included in a prominent and prestigious magazine shows that these traditions aren't dying out any time soon. For those readers interested in making garlic wine at home, the recipe is as follows: soak 40 grams of dried, peeled and sliced garlic with 100ml of quality rice wine for 10 days. Then drink one teaspoon twice daily, once in the morning and again in the evening before going to bed.

Vietnam's super rich (March 2010)

When we think of Vietnam we often think of rice paddies and water buffalos. Well that image is about to change to one of swimming pools and movie stars. From luxury apartments and houses, valued from US$1 million to $10 million, to super expensive cars such as Ferraris and Porsches, the rich and super rich are becoming much more ostentatious in their lifestyles. And it's not restricted to possessions for luxurious cafs and restaurants are springing up all over the place. These cafs are strategically located according to the clientele they are trying to attract. For example, the Highlands caf targets office workers, Sao (MTV) tries to attract wealthy bachelors and the Yesterday caf hones in on entrepreneurs. One of the biggest challenges facing local companies trying to cater to this new class is producing quality fixtures and furnishings of the quality demanded as the super rich pursue their flamboyant lifestyles.

Local packaging comes of age (February 2010)

Local Vietnamese processed food companies are starting to sell local foods in very stylish packaging. Up until recently, food packaging had a very old-fashioned, traditional and 'cheap' look, while trying to compete alongside more sophisticated foreign foods. Slowly this is changing, with a few Vietnamese food companies developing

colourful and attractive packaging that could sit alongside any Western product. As the Vietnamese shopper becomes savvier and incomes increase, local companies are finding they need to respond in developing new foods and packaging to compete in what is an increasingly global marketplace. While Vietnamese food companies may never end up being trendsetters, the range of products shows innovation and imagination with the raw materials available.

Vietnam's caf culture (February 2010)

Walking around the streets late in the afternoon either in Ho Chi Minh City or Hanoi, one can see Vietnam's local caf scene come alive. A remnant from the French colonial era, it is vibrant with an air of sophistication while still firmly rooted in Vietnam's unique culture. Yet it is being challenged by foreign coffee chains that open from early morning offering cakes and snacks in an air-conditioned environment. Clearly targeting the new upwardly mobile consumer class, this phenomenon is set to grow significantly over the coming years. One local chain, Trung Nguyen Coffee, offers local and imported coffee freshly ground on-demand and prints a menu that resembles a newspaper educating local drinkers on the finer details of being a modern-day coffee connoisseur. This appears to be one step ahead of foreign companies that work on a cookie-cutter model. At this stage, Vietnamese caf goers don't seem to be favouring one chain brand over another, however.

Retailing encouraged (February 2010)

In a recent initiative, the Vietnam Association of Corporate Directors held an event entitled Creating an Effective Marketing Strategy Conference with the aim of establishing a Vietnamese Retailers' Association (VRA). The future is very bright for Vietnam's retail industry, bolstered by foreign investment and increasing consumer demand. The modern retail channel, which is now 20% of the market will increase rapidly says Dinh Thi My Loan, deputy head of the preparatory board of the VRA. Loan also states that there is a lack of retail stores in some provinces and cities, pointing out that Hanoi has 350 markets, 85 supermarkets and hypermarkets and 14 trade centres which is much fewer than Ho Chi Minh City. The Marketing Research Institute report showed that at the end of 2008, Vietnam had 8,300 markets, 400 supermarkets and trade centres, compared to 10 supermarkets and trade centres in 1995. The key points from this report state that Vietnam's retailers must embrace changes such as problem solve quality inconsistencies and develop long-term strategies and managerial expertise. Two-thirds of managers still weren't using information technology.

Durian joins the exotic fruit trend (January 2010)

Vietnam grows plenty of Durian, the 'King of Fruits, and now wants it to be recognised as an exotic fruit for its traditional medicinal properties and its pleasant taste. All over the world, exotic foods are becoming hugely popular not only for the new taste sensations they offer, but also their medicinal properties. Durian fruit contains high amounts of natural sugar, Vitamin C, potassium, carbohydrates, protein, fats and amino acids. Within traditional medicine, Durian encourages excessive sweating, is considered an aphrodisiac, and the cooked seeds are good for the spleen and kidneys. What is interesting is how international consumer trends are encouraging emerging economies to promote and develop segments of a once dying industry, traditional medicine, to the younger generation.

Salary increase set for 2010 (January 2010)

The Ministry of Labour, War Invalids and Social Affairs, conducted a survey of 1,500 enterprises recently to establish the average salary of workers in public and private sectors in 2009. According to the survey, the average monthly salary of workers in enterprises is 2.75 million VND (US$150) a rise of 6.5% on 2008. In state-owned enterprises, the average monthly salary is 3.2 million VND (US$175) up 1.2% on 2009. In foreign-owned enterprises the average monthly salary is 2.6 million VND (US$140) up 7.8%; and private enterprises the average monthly salary is 2.35 million VND (US$127) up 5% on 2008. In 2010, the minimum salary for workers will rise by 15% on average and in foreign-invested enterprises by 10%.

Speed dating comes to Vietnam (January 2010)

Finding the right partner is not easy these days as changes in society mean both men and women are pursuing careers, working longer and having fewer children. In an effort to help people find that special one the Linh Tam Co. Ltd has brought speed dating to Vietnam with great success. Each date is seven minutes long so first impressions count. Some participants are shy and can't comfortably talk with their partners. Do Kim Phuong, Manager of the Speed Dating project, mentions an IT engineer who was very shy and unable to speak a word on his first date. He sat

for a while and left the table to smoke. The organizing board had to persuade him to be confident and see the date as a project that he has to implement. Finally, he returned to the table to meet further partners. Hoang Lan, 28, manager of an English training centre in Hanoi, is another example. In the eyes of others she is a modern, talented and self-confident woman. She has never had a boyfriend so her friends are urging her to use the speed dating service.

Courting the rural hearts & minds (December 2009)

As economic growth in Vietnam remains high, Vietnamese consumers are starting to demand safer and more hygienic foods, especially within the residential and outlaying areas of major urban centres. Saigon Co.op, Vietnam's leading retail store chain operator is opening a new style of convenience food stores (between 100 500 sq. metres) stocking a wide range of foods, including fresh, processed, semi-processed, ready-cooked and frozen. The retailer will open 20 such stores by the end of 2009, forecast to climb to 120 by 2012. Saigon Co.op wants to build a brand around quality and safety that directly competes with the more traditional markets.

Buffaloes change jobs (December 2009)

Normally a bunch of farmers updating their equipment isn't considered a consumer trend. Except in Vietnam. A small, but significant and growing group of farmers are unharnessing the traditional beast of burden, the buffalo, and replacing it with small engine-powered rotary hoes. This will bring greater productivity to the land, increasing yields while raising the levels of income for many farmers. Buffaloes are no longer preferred as many grass fields are now under reforestation campaigns however they are still bred for meat and fertilizer. Vietnamese consumers are changing and slowly the rural areas will see more growth as incomes increase. In 2008, out of Vietnam's population of 86.5 million people, the vast majority, or 62.3 million lived in rural areas while 24.2 million lived in urban areas according to Euromonitor International data. The rural population is changing, and the reason why retailers find this demographic so interesting.

Women encouraged to break through the thatched roof ceiling (December 2009)
The Vietnamese government has issued a seven-point programme aimed at advancing women as part of their effort to turn Vietnam into a regional leader in gender equality by 2020 in conjunction with the country's national industrialisation and modernisation programme. The program covers such actions as equal access to employment leading to a significant improvement in the standards of living, materially, culturally and spiritually for women and their families. Other recommendations including encouraging more women to enter politics, the legal system and management.

Golden Promotion Day (November 2009)

Retail sales work. In Vietnam, retail sales work really well. The Hanoi City government decided to create a little economic stimulus of its own with a promotional month, under which customers were promised 15-50% price reductions at selected supermarkets and shopping centres including up to 1,000 sale points around the city. November the 15th was designated 'Golden Sale Promotion Day' with the city witnessing a chaotic day as people flocked to take advantage of the sale. At Big C supermarket, up to 2,000 people were waiting outside before 8am with the 4,000 motorbike capacity carpark overflowing. After the doors opened, the escalator stopped working due to overload. Many consumers had delayed buying items in the lead up to the Golden Day Promotion. The most popular items were clothing, footwear, electronics - especially digital cameras, washing machines and LCD TV's. Combined sales are expected to exceed 150 billion new dongs (US$8.4 million) for the month of November, double that of previous months.

Vietnam's Easy Rider Generation 8X (November 2009)

Times are a-changing. Vietnam's Generation 8X (born during the 1980s) are creating change in ways similar to that in Europe and the USA in the 1950s and 1960s. They are the easy riders of the future, with money in their jeans and bikes of their own, wanting to marry later and bored with traditional youth group activities. Colloquially known as Phuot a slang term describing a new kind of tourism Vietnamese youth are embracing in large numbers they travel on motorbikes to discover Vietnam. They like travelling to mountainous areas, which Vietnamese tourists don't typically go to; they want to discover new lands, culture and people. There are many phuot groups in Hanoi organised around a common love of travelling on motorbikes, reports Saigon Tiep thi, an online marketing portal. When we travel on motorbikes, we can do many things during our trips, said

Thanh Nga, a phuot enthusiast. I can touch branches of trees and blades of grass, and breathe the fragrance of mountains and forests.

The rise and rise of local brands (November 2009)

Local brands are gaining strength. In a recent release by TNS of their annual survey on the fastest growing brands, eight of the 10 fastest growing brands are Vietnamese. The findings are based on consumption in urban areas. The top 10 brands are: Kotex (foreign), Sting energy drink (foreign), Vfresh soya milk, Nam Ngu fish sauce, Vfresh fruit juice, Trang Tien ice-cream, Tuong An margarine, Fami soya milk, Dielac Alpha powdered milk and Vinamilk fresh milk. In 2007, only two of the top 10 brand were Vietnamese, in 2008 the sum was four. This means that local consumers are paying more attention to local brands as 56% of respondents say local brands are as good as foreign ones.

Music fusion (October 2009)

As Vietnam continues to develop, all segments of life including post-modern culture, are being transformed into a mix that may or may not work in the long-term. But undoubtedly it is a persistent current trend often seen in more developed Asian countries - the fusion of the local language with Western languages, which in Vietnam means not just English but also French. The runner up of the 2008 Vietnam Idol contest, Ngoc Anh, has just released a new album titled Ngay Hom Qua Th (That's Yesterday) solely featuring old Vietnamese songs while the album lists all the names of the songs, art direction, make-up etc. in English. Other artists like Lam Vu opt for French titles while other artists incorporate English into their songs. For example, Hamlet Truong's Yeu khong hoi tiec (No sorry in love) has the sentence Vi khi da you la khong can phai noi I'm sorry (When you are in love you don't have to say I'm sorry). Composer Nguyen Hong Thuan explained: Perhaps they only want to make their works a little bit strange to capture the audience's ears. But I don't like this style in music. I'm uncomfortable listening to 'sorry, miss you or need you' in Vietnamese songs.

Changing practices for retail pharmaceuticals (October 2009)

Vietnam is slowly bringing in more regulation into the market and the latest sector to see progress is the retail drug market. The Vietnamese government recently issued Decision 68, which allows enterprises to promote medicine in the wholesale market while requiring both domestic and foreign pharmaceutical traders and manufacturers to obtain permission from the National Drug Administration before submitting ads to the press. Recently, the National Drug Administration has raised concerns about the increase in medicine advertisement violations which harm people's health and the market.

Environmental regulation (October 2009)

Currently Ho Chi Minh City (HCM) officials are putting together a draft regulation requiring direct participation from every household in keeping the surrounding environment clean. "Every resident needs to be aware and participate, or the city will not be able to fulfil the task of environment protection," said Nguyen Van Phuoc, deputy director of the city's Department of Natural Resources and the Environment. One of the biggest problems is rubbish collection. A clause in the draft requires residents to dispose of their household waste in regulated places and at specified times. Unfortunately garbage collection in HCM was ad hoc leading to the pile up of rubbish on the streets. Other clauses include regulations for noise pollution, a requirement for the building of septic tanks in every household building and more public toilets to counter urination in the streets. Opinions gathered at a recent workshop on the local environment will be used to adjust the drafts, making them more practical and feasible, Phuoc said.

The magic of the silver screen (September 2009)

Demand for cinemas is growing as living standards have improved. However the Ministry of Culture, Sports and Tourism's statistics show that the number of cinemas in Vietnam is 100 for a population of 86.5 million people with most of them located in Hanoi (nine box offices totalling 26 projection rooms) and Ho Chi Minh City (19 cinemas with 65 projection rooms). According to box office receipts for the first half of 2009, ticket revenues grew by nearly 40% although the number of cinemas did not increase. The greatest challenge cinemas face is in modernising their ticket sales system, designing preferential policies for different kinds of audiences and setting price policies to attract more customers. Currently ticket prices are still too high for the majority of Vietnamese.

The latest craze in cell phones (September 2009)

In what could be described as only in Vietnam, the attention has moved on from ringtones to waiting tones (the signal the caller will hear while waiting for an answer). Service providers are now focused on this segment of the market, with the competition between providers fierce. Mobile subscribers can download very special waiting tones from a variety of different service providers and the wait music is getting weirder by the day. Some examples are distortions of familiar songs including a take-off on the famous English song Diana and a message saying This subscriber is drunk. The words to these tunes sound as ridiculous in Vietnamese as they do in English, but still they are being downloaded by thousands of people across the country. The average cost is between 3000 5000 dong (US$0.16 0.28) per download.

When Buddhism meets hair (September 2009)

As Vietnam develops, so do some unusual forms of collaboration. The recent Davines Hair Show 2009, featuring hair stylists form Italy, Japan and South Korea, was a show with a difference. The models performed 'dramas' based on the writings of a famous monk, Thich Nhat Hanh. The rationale behind this collaboration was the growing competition for audiences. There are now a multitude of events consumers can go to and without some creativity to woo people, a hair show runs the risk of a low turnout. Nearly 100 semi-professional models took part in the dramas, with TV host Thuy Van, the runner-up of Miss Vietnam 2008, the focus of the show.

Urban master plan for Hanoi (August 2009)

Hanoi City is reviewing an ambitious plan for the development of the city to 2030 with a 'vision to 2050'. The plan calls for the city's evolution as 'the first sustainable capital city'. Although there are two options on the table for consideration, the plans are drawing a lot of debate from various groups around the city. Integral to both is the concept of a 'green corridor' that will cover 60% of the area of the new capital city, leaving 40% for intensive development. This development will define Hanoi, its growth, residential and commercial districts, plus how its citizens will ultimately live. Many Asian cities grew without any planning or thought to long-term sustainability so this development is hugely significant.

New eating trends (August 2009)

Food courts in Vietnam are nothing new. Traditional markets had their own type of food court, with families eating in the morning due to their preference to do the shopping in the early part of the day. When families wanted to treat themselves they went to a restaurant. The emergence of a new type of food court, with Wi-Fi, Western and local foods, has created a significant trend in which families have moved away from eating at a restaurant to a modern food court. The existence of food courts in Vietnam has brought convenience for many families. With a large number of different kinds of foods, all family members' demands are met, states Nguyen Thanh Trung, fourth floor manager of the Now Zone Plaza, Ho Chi Minh City.

Bodybuilding a growing trend (August 2009)

Bodybuilding is becoming a hot new trend amongst young Vietnamese men. In a recent pan-Asian competition held in Thailand recently, the national team won four gold, two silver and two bronze medals lifting the profile of this relatively new sport. Although the number of people taking up bodybuilding is still small, the Vietnam Bodybuilding Federation believes that given the right sponsors and support, the sport will grow significantly given the growing interest.

Mobile phone offers all the rage (July 2009)

As mobile companies look for new markets, rural Vietnam has become the new battleground for mobile phone providers. Yet rural mobile phone buyers have no brand loyalty and make consumer decisions based solely on price and promotional deals. In a typical example, Dung (in the rural district of Nam Dinh province) brought her first mobile at the shock price of between 270,000 390,000 VND (US$15 - $22) which included a sim card and call credit which she used up after three months. Some months later a new operator launched a promotion that included a mobile phone costing 499,000 VND (US$28) and call credits worth 498,000 VND (US$27.90). Dung brought four phones, one for each member of her family. Now Dung assigns her son to watch for information on telecom promotions and says If we put down money on mobile accounts during a promotion, she calculates that monthly charges for mobile services are only twenty or thirty thousand new dongs (US$1.12 US$1.68) cheaper than the fixed phone service.

Consumer choices unlimited (July 2009)

As the standard of living rises in Vietnam, consumer shopping choices are becoming more varied. According to Savills Vietnam (a real estate consulting company) at the end of 1st Q 2009, 25 commercial centres, 57 retail supermarkets and three larger-scale supermarkets opened up in Ho Chi Min City alone. Yet Vietnamese consumers are not quite ready to give up on traditional markets. Lately some traditional markets have made significant efforts to enhance their appeal by embracing ISO standards, stopping dubious sales practices and inhospitality towards customers and complying more with hygiene, safety and fire regulations. According to the Ministry of Industry and Trade, there are over 200 markets in HCM City, providing a living for around 100,000 families. The retail environment is about to get much more competitive.

A greener hue (July 2009)

From wind turbines, solar water heaters, energy-saving programmes and volunteer groups, green consumer awareness is seeping through all sectors of Vietnamese society. In a recent initiative, the Ho Chi Min City (HCM) Department of Natural Resources and Environment inaugurated the HCM City Association of Nature and Environment Protection as a volunteer organisation to help raise consumer awareness of environmental protection. Several wind turbine projects have recently been approved by provincial governments in an effort to secure energy requirements. Hydroelectric generation and fossil fuel supplies are becoming scarcer and more expensive. The Vietnamese government is directing local consumers toward new power sources such as wind and solar power.

Supermodels and Miss Vietnam Universe (June 2009)

Vietnam is gripped by beauty pageant fever during the month of June, with several major events on the agenda: Vietnam Supermodel 2009, Miss Vietnam Global, Miss World and Miss Vietnam Universe. Events have been taking place all over the country, often combined with fashion shows, music concerts, photographic events or integrated into existing festivals such as The Sea Festival 2009 that includes a film week, a kite festival, boat races, a parade of bicycles and scooters, human chess games, and shows by members of the Cham people. The sheer amount of exposure these beauty pageants attract together with the extraordinary focus within the country implies that beauty plays a central role in a Communist society that tries to balance traditional values with a growing consumer culture.

Women hit streets for dawn workouts (June 2009)

Physical fitness is a growing trend in Vietnam attracting large numbers of women. Although some women have gym equipment at home, many prefer to exercise outdoors. "Practising aerobics out in the fresh open air is cool and refreshing. It doesn't make me feel stuffy like when I practise in my room," says Nguyen Thu Linh, 33, from Chuong Duong Ward. Groups of women, wearing tight colourful outfits, practise aerobics to music blasting from CD players. Large public spaces such as the one in front of the King Ly Thai To statue near the Hoan Kiem Lake in Hanoi are an ideal place for women to practise. Beginning at 5am, women crowd the area, filling the pavement on the banks of the lake. "Since we practise aerobics ourselves, we don't have to pay and we can control how long and how intense the workout is. Working out at clubs made me feel too tired," says Mai Loan.

Queues and the Vietnamese (June 2009)

Queuing is part of life in many Asian cities. Yet recently a Korean student sent a letter to one of Vietnam's largest newspapers complaining that the Vietnamese just don't queue up. The letter triggered heated debate via letters and blogs from all over the country. The answer seems to lie in the fact that Vietnam is changing so rapidly that manners and consideration for others are being lost. "According to research on housing and urban life conducted in 1983 by our institute, a person in Ha Noi would spend an average of one hour per day queuing," said Professor Mai Quynh Nam, director of the Viet Nam Academy of Social Studies. "Service was limited to state-controlled shops. Queuing, thus, became a part of the lifestyle back then. Life has become so much easier. People don't have to queue up any more. Food is sold at their doors. And there went the queuing habit. The disappearance of long queues in front of shops was once considered a positive development, he said.

Car trends (May 2009)

The increasing demand for cars is an inevitable trend in developing countries. Industry experts have forecast that the demand, especially for vehicles with smaller capacities of less than 10 seats, will become strong after 2020 when Vietnam's economy is expected to grow further, along with per capita income and an improvement in infrastructure. Currently the average annual gross income is approximately US$1260 with a car ratio of 18 vehicles / 1000 people. This places Vietnam in the pre-motorisation period. According to the Ministry of Industry and Trade's heavy industry department, the motorisation period (50 vehicles /1000 people) will take place between 2020 2025. In 2020 some 246,000 347,000 new cars will be needed while the figures will rise to 592 836,000 in 2025. Of this figure, buses and trucks will comprise 27% and the rest will be private cars.

North South divide (May 2009)

Recently iCare, a chain of computer hospitals opened its first branch in Hanoi. A couple of weeks later a vocational training college also started operating in Ha Tinh Province (northern Vietnam). This is a new, but probably inevitable trend of businesses penetrating northward. The southern market has shown signs of saturation and as the economy struggles, many businesses are scaling down on production. The northern part of Vietnam represents an untapped market. Northern consumers are very selective and willing to spend on expensive items they like, however they pay attention to the smallest detail and refuse to buy products that fall slightly short of expectations. However the cost of renting premises, hiring managers and transporting products is more expensive than in the southern half of Vietnam.

Vietnamese consumer rights (May 2009)

Vietnamese consumers do not fully understand their rights, so they do not lodge complaints about low-quality, overpriced milk according to Vu Thi Bach Nga of the Competition Management Department. Using milk as the example "A well-known domestic milk producer used to label its product as consisting of 100 per cent pure fresh milk. In fact, it was mixed with milk powder and some other substances." In 2010, milk will be put on the list of 10 products with high risk in terms of food hygiene and safety; all milk producers must apply to be certified according to the standards on safety and hygiene production such as HACCP, ISO 2200, said to Tran Thu Lieu, an expert of the Ministry of Health's Food Hygiene and Safety Department.

Beating the rush hour (April 2009)

One way to avoid traffic jams is to take up an after work activity. However instead of having beers after work the latest trend is to take gymnastics, dancing or yoga classes. "Five o'clock is when everyone is out on the street; if I try to go home at that time, I'll get stuck in traffic. So rather than being in a traffic jam, inhaling smoke and dust, I go to a gym near my work for about an hour," says Nguyen Thu Nguyet, a white-collar worker in District 3. According to the Department of Transport, there were 48 traffic jams lasting for over one hour in Ho Chi Minh City in 2008, an increase of 19 cases on 2007.

Holiday boost for domestic tourism (April 2009)

Domestic tourism is predicated to rise during the upcoming four-day holidays at the end of April. The stable price of domestic tours has helped raise the number of tourists on these tours by up to 20% since the same period last year according to Mai Lan, head of market research for the Vietravel company in Hanoi. Tours of 300-500km are especially popular, Mai Lan stresses. Many organisations and offices are giving their employees time off to celebrate the occasion and travel agencies have designed a number of specific tours to cater for this group of tourists. Saigontourist, for instance, a major tourism firm has organised more than 100 tours divided into three packages IKO Travel (economy), Premium (luxury) and Traditional (designed especially for this holiday). To date the IKO remains the most popular as a five-day IKO holiday costs around VND3.2 million (US$180). Saigontourist also notes that there has been a 10% - 15% increase in Vietnamese travelling overseas.

Low-cost computers for teachers (April 2009)

In conjunction with local technology firms, Intel Corporation will provide one million low cost computers to teachers from now until 2011. Educational software and broadband services will also be provided to teachers nationwide according to the Ministry of Education and Training in Hanoi.

In 2008, only 3.4% of Vietnamese households contained an internet enabled computer, though there were 22 million consumer and business internet users (out of a population of 86.5 million people). Intel Vietnam General Director Than Trong Phuc said the computers would sell for US$220 each, including tax. Vietnam is set to become more tech savvy.

Consumers vote on consumer products (March 2009)

As many as 350 businesses out of a nominated 501 were awarded the title of Vietnamese high-quality product award for 2009 as part of a new governmental initiative. A poll of 400 hundred consumers and 20 experts from various agencies voted using a range of criteria such as origin of goods, quality, intellectual property, environmental protection, as well as safeguarding workers and consumers' rights. Part of the poll was also intended to understand consumer trends with the aim of providing accurate information for consumers in a transparent manner. Vietnam is focusing on developing domestic demand and seems to be winning consumer trust due to a significant improvement in quality, design, price and services.

Young Vietnamese set future trends (March 2009)

Recently The Saigon Times Weekly, Premier Oil Vietnam, Environmental Resources Management and Apollo Education & Training joined up to arrange an English language writing contest based on the theme 'Protecting and Enhancing the Environment in Vietnam's Emerging Economy'. The competition was limited to university students. The winning essay hoped for a model of cooperation between the government, business and transformational corporations. By working hand in hand, these three parties actually help the developing world to identify the right tools for sustainable development Cynthia King from Apollo stated, The younger generation of any country sets the trend for development. They are the future leaders of a country. These representatives of Vietnamese youth are a good example of this. Out of a population of 86.5 million people, 56.3 million are under 35 years of age.

An answer to the economic crisis: street vendors? (March 2009)

Vietnamese finance expert Bui Kien Thanh is offering some interesting advice for reviving the economy: invest in street vendors. Vietnam has currently more than one million street vendors each earning profits of about 20% on their investment of approximately VND200,000 300,000 (US$11 - $17). Mr. Bui's rationale goes something like this: street vendors put their profits back into the market; they are very good at distribution, riding, pedalling or using shoulder poles to bring fresh fish and vegetables to different places. If the country lends money to street vendors at a low interest rate and offers them better means of transport, they will perform as a strong distribution channel. These small, low-budget but mobile distributors are competition to immovable supermarket chains and if given the opportunity to top up their baskets more often plus additional time to pay back loans, it will only be a matter of time before street vendors upgrade and diversify their products. Of course, they will have to comply with traffic and hygiene regulations.

Quality and durability of increasing concern to consumers (February 2009)

Quality and durability are emerging consumer trends in Vietnam according to TNS. With the introduction of over a thousand new consumer products on the shelves every year, Vietnam has turned into a brand minefield. This has made Vietnam a two-dimensional market with nearly half of the recognised brands being local in origin. As a result of this deluge of new products, more Vietnamese are becoming brand conscious and paying attention to quality rather than promotional offers.

Broadband keeps growing in Vietnam despite economic woes (February 2009)

Broadband will continue to grow despite the economic crisis. According to Truong Dinh Anh, director of FPT Telecom, a unit of the Corporation for Financing and Promoting Technology. The internet market will continue to grow by 60% to 70% a year and the broadband segment even faster. He added Data transfer on portable devices offers plenty of potential in Vietnam. Although there are six broadband internet providers, competition was mainly between three major players who together account for more than 90% of ADSL subscribers, with a combined total of 2.7 million users.

Foreign cinemas play a starring role in Vietnam (February 2009)

Vietnamese cinema goers have more choices than ever as foreign multiplexes are taking their first steps in entering the Vietnamese market. And the numbers are there to prove it. During the Tet (Vietnamese New Year January 2009) holiday season, demand for entertainment was on the rise. According to MegaStar Media Co (a joint venture between Envoy Media Partners Ltd & Phuong Nam Corp.) an average of 6000 arrivals were welcomed each day. Rival Galaxy Cinemas received between 4,000-5,000 visitors each day, up 4050% compared with the same period last year. Foreign players offer professional facilities and services plus some additional extras. MegaStar cinema halls have 871 seats, of which 10 seats are exclusively for couples. Brian Hall, chairman of MegaStar said the demand for luxury entertainment is booming. Cinema multiplexes have become a popular destination as they offer entertainment, shopping, eating and relaxation.

Owners of the future: Children continue to snub local authors (January 2009)
Children continue to prefer stories written by foreign rather than Vietnamese authors. And comics from Japan and other countries are still their choice ahead of domestic works. Many children read either Japanese comics or foreign children's stories that had been translated into Vietnamese. "Vietnamese stories always talk about what we should and should not do, while in foreign children's stories we find our dreams and our wishes realised," says a seventh-grade student at Ha Noi's Nguyen Du Secondary School in Nguyen Thuy Linh province.

Convenience comes to Vietnam (January 2009)

Although convenience stores have been around for a long time, in Vietnam the convenience store market is set to grow. Saigon Co-Op is developing a new convenience store chain Ho Chi Min City, with one opening in the city primarily aimed at working mothers. Saigon Co-Op plans to open 20 stores in the city this year, increasing to 120 by 2012, each covering 200 to 500 sq metres and selling simple foods to meet with rising consumer demand. Other CoOp stores will be developed in residential areas recognising the demand and potential for development of the new business model among consumers. The stores will be an alternative for women who worry about the quality and safety of foods at traditional markets.

'Buy Vietnamese' promotion to grow domestic sales (January 2009)

Most economies in Asia have grown due to an export model of development. So the current global economic recession means a rethink of this once successful strategy. One government getting in early is the Vietnamese government by urging local enterprises to sell their products within the domestic market, especially rural areas which accounts for 70% of total goods consumed. In particular, local businesses are being asked to increase the quality of their products, build brands, offer better after-sales service and work towards developing stronger distribution networks to improve their offer to consumers. At the launch of this campaign Mr. Truong Dinh Tuyen, Former Minister of Trade, stressed that this should be a long term strategy and not just a stopgap during the global economic crisis.

Christmas cheer? (December 2008)

Christmas has become popular in Vietnam in recent years, especially among youth. Many regard it as an opportunity to get together with friends and party. This year, rising inflation, falling stock prices and fewer job opportunities have meant that celebrations are more muted: This year, I will meet up with my friends and have a small party but I will not spend much money on buying gifts for people as my salary is down, said Tam, a 22-year-old young woman. Many consumers have been visiting festively decorated department stores such as the Vincom Tower in Hanoi to marvel and take family photos without any intention of buying anything.

Vietnam imposes new blogging restrictions (December 2008)

Vietnam has approved new regulations banning bloggers from discussing subjects the government deems sensitive or inappropriate and requiring them to limit their writings to personal issues. The rules, which were approved Dec on December the 18th, attempt to control Vietnam's booming blogosphere which has become an alternative source of news for many. The new rules require internet companies that provide blogging platforms to report to the government every six months and provide information about bloggers on request.

The regulations, written by the Ministry of Information and Communications, encourage bloggers to use "clean, healthy Vietnamese language." They clarify earlier internet regulations that were introduced in August. Ministry official Luu Vu Hai would not say whether the new regulations will apply to international companies such as Google Inc. or Yahoo Inc. or would only restrict the operation of Vietnamese firms. Currently, the vast majority of Vietnamese bloggers post their writings on Yahoo! 360.

Vietnam's first privately-owned airline takes off (December 2008)

Vietnam's first privately-owned airline has begun flights, aiming to tap rising demand for air travel in the fastgrowing Southeast Asian nation. Indochina Airlines, owned by a group of Vietnamese businessmen, is operating four daily flights between the southern commercial centre of Ho Chi Minh City and Hanoi, said company spokeswoman Nguyen Thi Thanh Quyen. The company, chaired by Ha Hung Dung, a well-known Vietnamese pop music composer and businessman, also offers two flights daily between Ho Chi Minh City and the central coastal city of Danang. "The launch of our airlines aims to meet growing air travel demand in Vietnam and will offer more choices for customers," she said. Indochina Airlines is the third airline to offer domestic flights in Vietnam, joining national carrier Vietnam Airlines and Jetstar Pacific, a partnership between a state-owned carrier and Australia's Qantas. Indochina Airlines is leasing two 174-seater Boeing 737-800s. In the next two or three years, the company hopes to add flights to the resort city of Nha Trang and the ancient capital of Hue, as well as countries in the region. Passenger air travel to and from Vietnam has grown between 13-17% annually in recent years, according to Vietnam's Civil Aviation Administration.

Car sales slump in Vietnam (November 2008)

The Vietnam Automobile Manufacturers Association (VAMA) recently reported that 17 leading domestic carmakers suffered a drastic drop in sales of 37% compared to the same time last year. According to the northern director of the Saigon Transportation Mechanical Corporation (SAMCO), Hoa Ngoc Duong: A drop-off in personal spending tied to economic woes and the credit crunch kept buyers out of car showrooms for much of the month, even as automakers boosted incentives to spur sales and sky-high gas prices collapsed. Industry's officials also said that consumers have been shifting away from the most profitable products over the last few months. SAMCO has suffered the most with a phenomenal 72% decline in sales last month. Closely behind, Vietnam Motor Corporation (VMC) saw a drop of 68% while Isuzu ranked third with a 65% decline. Similarly, the big three in the Vietnam car market have reported a drop in sales of which Toyota sales declined 16%, GM Daewoo 51% and Ford 41%. Duong Kim Thoa, a representative of Dong Hai Auto observed that Customers are having a lot of difficulty accessing lending services to buy cars, which has made a huge impact on the downturn of the market.

Stock clearance discounts are everywhere (November 2008)

Retailers in Vietnam are discounting their products in order to clear out stocks that need to be sold by the beginning of the year. As reported in a recent study involving managers of electronic stores in HCM city, the purchasing power of Vietnamese consumers has decreased by 40-50% because of the economic downturn. Prices of LCD TVs dropped by 20% - 30% at the beginning of this month, while those of electrical appliances dropped by 5%-10% compared to last month. Similarly, garment retailers at Nguyen Trai and Nguyen Dinh Chieu are also offering 30% - 70% discounts. Lee Ngoc Lam, a store owner on Nguyen Tria Street said, Very few customers are drawn by the discounts. New products come up continuously but we still cannot get rid of our inventory I have to offer sales on both existing stock and new products to get back my investment. Like Lee, many garment firms say that they have failed to reach their target growth of 20%-25% this year. According to economist, Ngo Tri Long, consumers are focusing more on essentials and have trimmed spending on a wide variety of goods due to rising prices in recent months.

Communications on a roll (November 2008)

Vietnam has been named as one of the fastest growing countries in terms of its telecommunications industry. Currently, there are 70.4 million telephone subscribers (82 per 100 residents), of which 81% of subscribers are made up of mobile phone subscribers (57 million). According to Nguyen Ba Thuoc, general manager of the Vietnam Post and Communications department, it has been reported that the country now has six million internet subscribers with approximately 23% of the population having access to the internet (as at August 2008). Nguyen also said that Vietnam is one of the cheapest countries to make an international call from. In the case of landlines, subscribers are only paying $4 for 100 minutes of domestic calls per month.

Vietnamese women's weight management plans include smoking (October 2008)

According to a recent survey conducted by HealthBride of Canada, the smoking habit among local female university students has reached the high rate of 5.3%. Surprisingly, medical school students don't show that they have much more knowledge than other students about the damage that smoking causes to health. Even though almost all of them are aware that smoking is a bad habit, many female students say they smoke in order to lose weight and to relieve stress. Some respondents also say that smoking is not harmful because they smoke cigarettes for females. In addition, one out of twenty female students between the age of 13 and 15 was reported to have tried smoking. Another shocking finding was that many students under 18 appeared to be unaware of the ban on selling cigarettes to teenagers of their age and claimed to have never been asked for their age when buying cigarettes. Hanoi City is launching a campaign to discourage smoking in offices and public areas this month in readiness for a new ban on lighting up in public spaces which will come into effect in April 2009.

Counterfeit alcohol production leading to consumer deaths (October 2008)

The Director of Ho Chi Minh City Health Department indicated that nine people died of methanol poisoning found in alcohol while another eighteen were admitted to hospital within a time span of two weeks. The department has also investigated the source and found nine alcohol brands from Safaco in Thu Duc District and Kha Doanh in Tan Phu District to have exceeded the standard methanol level. According to the Health Department, the permitted level of methanol content in drink must not exceed 0.1%. The samples, however, was found to have contained 7% to 8.2% of methanol. According to the Health Ministry, only 10% of more than 20,000 enterprises producing alcoholic beverages have registered their product quality with them. Health officials have warned consumers to avoid alcoholic drinks of unknown origin. The Ministry also reported that 19 people died from alcohol poisoning in the first eight months of thisyear and that counterfeit alcohol often contains cheaper ingredient to cut costs.

ATM cards gaining popularity (October 2008)

Visa International has recently reported that the number of Vietnamese using debit and credit cards has increased to 900,000 (a figure nearing 1% of the population). The popularity of the cards has, however, experienced a growth of 8.44% last year as the number of shopping malls selling luxury or world-class brands increases in the country. Phung Duy Khuong, the Deputy General Director of East Asia Bank (EAB) indicated that many people still think that only higher-income earners and those who travel abroad frequently are entitled to use payment cards. With about 50% of banks charging fees for payments made with credit or debit cards, Vietnamese consumers are even more discouraged from using them.

Vietnamese shoppers find it hard to say no to plastic bags (September 2008)

It is quite troublesome to carry along my own bag when going to the market, since plastic bags are readily available in all the stores, said Huynh Thi Tuyet, a housewife in HCM City District 12. Resembling the attitude of most Vietnamese shoppers, Tuyet's habit of relying on free plastic bags from retailers has become a cause for concern for the country. The director of the HCM City Waste Recycling Fund, Le Anh Khoa says: It is difficult to carry out our project of limiting consumers' use of plastic bags because people have become used to them, as they are so convenient. At a recent seminar, HCM City's Department of Natural Resources and Environment revealed that the city's residents discard around 50 tons of plastic bags per day, which has led to the pollution of local canals. Recently, a survey from HCM City Waste Recycling Fund also proved that only 7% of shoppers bring along their own bags, while over half of respondents prefer to use free plastic bags from retailers to carry the goods they've bought. In addition, this study revealed that 25% of respondents said they find it annoying to have to bring along their own bags when they go shopping.

Vietnamese consumers opting for locally-produced cosmetics (September 2008)

In the last few months, several domestic cosmetic producers have reported a 20% increases in sales. According to Mai Tan Dung, Sales Director of the Lan Hao Cosmetics Company, sales of the Two Way Cake make-up powder have increased fivefold. Additionally, 34% of the company's 70 items have experienced a sales growth of 30%. Dung also indicated that imported cosmetic products have become more expensive, while consumers are still in doubt over the quality of cheap imported options. Vietnamese consumers have thus opted for locally produced products which are reasonably priced and which they believe to be of a guaranteed quality. The Gia Dinh Cosmetics Company has also reported a 30% increase in sales. In addition, Gia Huynh Kien Nam of Dinh Cosmetics said that women in rural areas are also beginning to demonstrate a greater preference for purchasing products backed by known local brand names. On average, a Vietnamese woman now spends US$3-US$4 on cosmetics products per annum said the director of the My Hao Company, Luong Van Vinh.

Consumers buying fewer Moon Cakes (September 2008)

It is estimated that 6,800 tons of moon cake are consumed every moon cake season in Vietnam. This also means that consumers spend VND1,360 billion on 6.8 million boxes of cakes commemorating this mid-autumn festival each year. However, this year, moon cake sales have been sluggish, and retailers report that sales remain unpromising as the festival approaches. A moon cake retailer in district 5 of HCM City said that only 50% of its moon cakes had been sold just a week before the autumn festival and added that We will surely incur a loss this season. We have never before met such slow sales. Similarly, Lai Hoai Phuong of the Dong Hung Vien moon cake trademark said that we lost big orders this year. Phuong observed that orders normally come in by late August but orders have dropped drastically this year. Nguyen Quoc Hien of the Ai Hue moon cake brand believes that 2008 is the most difficult year in its 50-year history. Both Hein and Phuong said that the majority of the moon cakes sold have been used as gifts, while the real demand for personal consumption is very low.

Vegetarians in HCM love their canned food (August 2008)

Pham Thi Hoa, a 72-year-old shopper, picks up a few tins of canned food for her husband and herself for the week. A vegetarian for years, Hoa said: At the supermarket, I can easily find our favourite vegetarian foods made mostly from soybeans, tofu, and potatoes but tasting similar to meat and fish. There are now over 200 kinds of both imported and locally produced canned and ready-to-cook vegetarian foods available in the supermarkets of Ho Chi Minh City. Like many young vegetarians in Vietnam, 19-year-old Le Thi Mai, who recently started learning to cook, finds canned food handy. Mai, who is also a volunteer at Long Son Pagoda, helps the Buddhist nuns prepare vegetarian meals. As there is currently a surge in demand for vegetarian food, traditionally eaten when prayers for the souls of the deceased are recited, a nun at Long Son said that "We bought several kinds of canned and frozen foods to prepare the meals for hundreds of people. Pagodas, vegetarian restaurants and shops selling ready-to-cook vegetarian food are crowded too. Nyuyen Phuong Thao, the manager of Maximark supermarket, indicated that "Canned vegetarian foods that are not expensive sell well."

HCM City says no to fake and illegal goods (August 2008)

The head of Market Management Board, Nquyen The Thong, has recently announced the launch of a campaign to condemn the distribution of pirated goods and foodstuffs that violate hygiene and safety regulations. The campaign will last until Tet, the new lunar year. Nguyen revealed that The production and sale of spurious goods and substandard foodstuffs and smuggling have been on the rise in the last few months. Helmets and moon-cakes are among the main items spotlighted by the campaign. The production and sales of helmets not approved by the Ministry of Science and technology will be banned from the 15th of November 2008. Inspections will be conducted and businesses producing and selling substandard helmets will be shut down by the Board's officers. Thong said that cake stalls and shops are expected to clearly display brand names and the prices of their products. Violations will result in forced closures and confiscation of stock. Thong said that officers have been deployed in 24 districts to ensure that retailers are complying.

Payback time for spammers (August 2008)

A decree on spam emails has been issued recently, making organisations and individuals that deliver spam mails and text messages or trade in email addresses liable to fines of up to VND 80 million. The decree aims to protect consumers from spam, the spread of viruses and the collection of personal information without the consent of users that are all prevalent in today's IT world. Senders of spam emails and text messages with a motive to cheat, disturb people, spread viruses or advertise will be liable for prosecution under the decree.

Vietnam turning to laptops (July 2008)

IDC Vietnam Quarterly PC Tracker research recently revealed that the nation's personal computer market has grown by 21% year-on-year to 357, 000 units in the first quarter of 2008. In particularly, growth in the portable personal computer market segment has been more evident and stronger than the desktop segment with a 64% increase in notebook personal computers imported to Vietnam in the first quarter of this year. Even though demand for laptops has grown among Vietnamese consumers, desktop personal computers still account for a bigger percentage of the market share worldwide as well as in Vietnam. With the recent economic slowdown, IDC Vietnam's market research analyst, Nguyen My Phuong, believes that Vietnam's PC market this year will not enjoy strong growth momentum from the past. It is also predicted that with further price reductions in foreign branded personal computers and spare parts as well as strong foreign direct investment in Vietnam, demand among Vietnam consumers for computers will revive again (especially in the business segment). Tran Hai Linh, Lenovo Vietnam's country manager agrees with IDC's revelation and said that the hero of this possible turn would not be the desktop personal computer but the notebook. Linh added that In fact, this is an exciting time for the PC industry. The market will witness interesting changes in the next few years as business and tech savvy users become truly mobile, making the world their office.

In no mood for shopping (July 2008)

According to various supermarkets in HCM City, purchasing power in Vietnam has dropped drastically in the last month. Retailers like Citimart, Fivimart, Maximart and Co-op mart have recorded a drop of 5% to 10% in purchasing power. On the other hand, small supermarkets reported a 20% decrease and some retail markets even reported a drop of 50%. Petty traders in Tan Dinh, Ben Thanh and Ba Chieu are disappointed with customer turnout, even though they have extended their normal operating hours to 8pm instead of closing at 5 or 6pm. According to Pham Thanh Tuyen, marketing director of Sai Gon Coop Supermarket, Vietnamese consumers are aware of the need to cut down their expenses. Thus, many are focusing on essential products alone. In response to this phenomenon, retailers have reduced prices of items like clothes, household products and even food to stimulate consumers' interest. Pham Van Tan of Ben Thanh Market Management Board said that retailers are offering as many bargains as possible and do not dare to overcharge their customers. Fivimart's director, Nguyen Thi Ha indicated that "there are no more lines of consumers at the counter, even on weekends. Huynh Huu Tuan of Citimart pointed out that "we can hardly find a bill worth more than VND500,000 today; they were common last year."

Faulty new purchase? Sorry, there is nothing that can be done (July 2008)
Customers are always right? That may not be the case in Vietnam. Nguyen Thu Trang, an angry customer who bought a faulty product from Kim Lien Street said "What would you do if your US$1,235 laptop broke down a few hours after purchase? And when you took it back, you're told the security stamp on the box has been removed and thus it couldn't be exchanged or refunded. Moreover, you're one of the unfortunate buyers who bought a laptop with a technical error that's almost impossible to fix completely". Like many unlucky Vietnam consumers, Nguyen ended up in the long queue at the guarantee centre in search of further assistance. Similarly, Phan Thanh Thuy who bought a faulty mobile phone from Nguyen Chi Thanh Street said sarcastically that "If we are unlucky enough to buy a television, radio or mobile phone with technical errors, we have to repeatedly take them to guarantee centres until we become impatient and give up. In response, Vu Thi Bach Nga, the head of the Consumer Protection Unit of the Ministry of Industry and Trade commented that "Customers in Vietnam have to suffer from unsafe poor-quality products which break down just after purchase and are sometimes life-threatening. There is no effective law to protect the rights of consumers. Hank Baker who is assisting Vietnam in implementing trade agreements concurred at Hanoi's recent consumer protection seminar that local consumers are at a distinct disadvantage. Vietnamese consumers have not been ensured their rights when using products or services. They have to depend on the kindness of sellers, he said.

Addicted gamers a growing concern (June 2008)

With the broadening access to internet and computers, young Vietnamese have also been Gamoxicated. In a crowded internet shop in Ho Chi Minh City, 20 teenagers sit staring into computer screens, filling the room with the smell of tobacco smoke and sweat, and the blaring noise of machine gun shots. A young player says that he lied to his parents. Instead of studying at a friend's house, he has been in the internet shop for the whole week. Similarly, T, a student of HCMC National University, says he plays at 11pm when the internet is faster. T's roommate then adds Daytime is like night time for him. He plays games all night and then sleeps until the afternoon. Some days he ignores meals. His addiction has caused T to pay a monthly internet bill of VND 1 million (US$59). As a result, T struggles to pay the bills and his grades have sunk leading him to retake several exams. As this phenomenon continues to spin out of control, The Ministry of Information and Communications has stepped in to limit all online gaming accounts in Vietnam. By only allowing players to play on a particular account for five hours per day, setting automatic log-off functions and rewarding points to those who play for three hours or less, the Ministry is still failing to control gaming addictions. Most game players have worked out ways of circumventing the limits. Pham Huy Lu, a father said We're worried because he skips classes, steals money and ignores meals and sleep to play online games but we don't know what to do. Lu revealed that his son has been addicted to online games for more than two years and has been expelled from school.

Time for a treat Vietnam (June 2008)

With the Vietnamese economic booming, consumers are starting to enjoy and have adopted new lifestyles as well as consumption behaviours. Consumers like Nguyen Thu ha who says: Every weekend, I go shopping, but it is not only for making purchases but also a kind of hobby. She then reveals that Eye-catching accessories consume much of my money. Both local and international retail market players continue to penetrate the Vietnam market to benefit from rising disposable incomes. According to KPMG, sales of personal care and household products hit the highest growth since 2000, while clothing, footwear, cosmetics and perfume sales have risen by 11-14%. Pharmaceuticals sales, meanwhile, have increased by 13%. Currently, Vietnam hosts 140 supermarkets and 20 trade centres, and has been ranked as the world's fourth most attractive retail market by the World Bank. Today, the Vietnamese spend

around 70% of their monthly income on consumer goods and services. Nguyen DO Quyen, a shopper says I often spend most of my salary on clothes, footwear, and cosmetics objects one uses to show one's tastes and style.

Will you pay for your plastic bags? (June 2008)

According to HCMC's Department of the Environment and Natural Resources, the city produces 6,000 tons of waste per month of which, 7.5% is made up of plastic bags. With retailers like Metro Cash & Carry Vietnam supermarket chain leading its Metro and Consumers Act to Protect the Environment, shoppers have slowly picked up the habit of using reusable bags which are sold at VND 6,000 -7,000 (US $0.30-0.40) each. Than Thuv of Metro said that they've encountered a few customer objections when shoppers find it unacceptable to be charged for the reusable bags and it can be inconvenient to those who are bulk-buying. According to research from Dr. Le Van Khoa's entitled Minimising the use of nylon bags in Ho Chi Minh City can lead to sustainable consumption habits, 71% of respondents supported the reduction of nylon bag use while only 30% were willing to buy plastic bags when shopping. However, 15% said they would bring their own bags if they were forced to buy shopping bags. The research also revealed that an average household in HCMC consumes over 200 plastic bags monthly, most of which are only used once.

New generation of Vietnam consumers help shapes the future of retail (May 2008)
With the second youngest population in Asia, (57% of its population being under 25), Vietnam is considered to be on the threshold of a consumption boom. Ralf Matthaes, managing director of Taylor Nelson Sofres Vietnam (TNS) who recently conducted a study on local consumers, explained that A large youth population is a powerful machine in boosting Vietnam's total consumption market. The study revealed that multimedia plays a major role in developing the shopping behaviour of young Vietnamese consumers, with 64.2% of households subscribed to cable channels in Hanoi and 70.5% in Ho Chi Minh City. This compares to broadcast channel subscriptions of 46.9% in Hanoi and 32.6% in Ho Chi Minh City. According to the managing director of Saatchi and Saatchi, Mai Huong: Screens are converging, TVs are becoming more game-like, mobile phones are more movie-like, and technology by and large is improving. In addition, internet usage has increased drastically (by 502% from 2003-2007), with 70% of internet users aged under 25. Meanwhile, the number of mobile phone users has increased by 682% over the same period. The research anticipates a growth of 20% in retail spending on digital products this year. Matthaes also believes that Consumption will continue to increase, but products and services will need to better fit Vietnamese tastes and needs while it is important to note that Vietnam's national pride and traditional values are still strong.

Old in years but young in cyberspace (May 2008)

An elderly Vietnamese man exclaimed excitedly Oh, I've found some websites about rice while some of his contemporaries were browsing websites on topics ranging from football to cookery in the computer science and internet class organised by the Economic Application Consulting Centre. Aged 83, Nguyen Van Minh was delighted and astonished: This (internet) is very powerful. It has everything and is faster than newspapers and TV. He then added that After this course I will immediately buy a computer and register for internet service. The lecturer, Phan Phuc Thinh, observed that The elderly like to read online newspapers the most. There is an 87-year-old woman who loves reading e-newspapers and listening to pre-war songs online. After learning how to chat and use email, they practise with each other and then with outsiders. Nguyen Van Thuan, a student on the course shared his enjoyment of learning how to use the internet by noting that Seventy years, I'm old/ Have internet lessons, my mind gets brighter/ I grow young again with mail and chat/ My life blossoms with nicknames and files. A record 1,086 elderly people have registered for these free classes since April, while 2,352 attended the course last year.

Big budget heading for food hygiene programme (April 2008)

The Health Ministry has recently announced that VND1.3 trillion will go into six food sanitation and safety projects this year. The period from15th April to 15th May 2008 has also been named as the Month of Action for Food Hygiene Quality and Safety. These projects will involve activities such as promoting improvements in the management of food safety quality, education and information campaign drives that tackle food poisoning and foodrelated disease control. A recent survey reported in the Nhan Dan newspaper also reveals that the numbers of people involved in the production, trade and consumption of food that are well educated in food safety issues have increased by 6%, 7% and 8% respectively, compared to 2006. Medical inspectors have reported that 76% of food processing companies, providers and shops nationwide managed to meet food safety standards, while the under-performers were fined for standard violations.

Unisex style trend (April 2008)

Fashion culture in Vietnam has been drastically transformed in recent years as men are increasingly more in-tune with fashion styles while women are turning to more masculine attire to show off their fashion sense. Today, younger shoppers are often found shopping in unisex fashion stores, hunting for the latest piece that speaks their language. Men are turning to less bulky and delicate designs while women are starting to crop their long hair. Girls wear their skirts layered over trousers while men are starting to carry handbags. Though this trend is still relatively fresh and radical to many, it is expected that it will be adopted by more consumers. Nguyen Manh Hoang, who runs two unisex fashion stores in Hanoi, said that this new fashion style comfortably blurs constructed gender boundaries, and therefore, allows both sexes to wear what they want comfortably. TV, film, internet and advertisement exposure is doubtlessly the biggest contributing factor. Lee Jun Ki who leads the Korean drama, My Girl, and local female artists like singer Thanh Thao are said to be some of the iconic celebrities that have encouraged the adoption of unisex fashion trends. Haong added that "unisex clothing can make women look stronger, and men sweeter. 18year-old shopper, Thanh Nam, feels unisex fashion better portrays his personality. He then reasons, "Why should men and women still dress the same way as they did 50 years ago? Why must men look strong and worn? Why should women look gentle and modest? Through style, I want to stand out in the crowd and to show I am not like others.

Ho Chi Minh in bid to save energy (April 2008)

The HCM City Party Committee has passed on its order to government agencies to conserve energy and prevent power shortages during the dry season. Similarly, the HCM City Electricity Company has started to inform consumers on reducing power consumption. Le Van Phuoc, its director, said "the company has also turned off 50% of public lamps and cut 50% of power used on advertising lights and billboards. The city has also urged consumers to switch to compact fluorescent lamps and solar energy power, both better energy-saving alternatives. With several power plants undergoing construction and test runs, the city needs to save about 124,768mil kWh this year, compared with 91mil kWh last year. Tran Tri Dung who heads the HCM City Industry Department's Energy Division said that other than alerting the consumers to switch to power saving alternatives, energy-saving training courses are being offered to companies and state administrators.

Electric motorbikes selling like hot cakes (March 2008)

With petrol prices continuing to rise, electric motorbikes increasingly appeal to Vietnamese consumers, especially to those in Ho Chi Min City. While in Saigon, students are favouring the rides of their electronic motorbikes that go up to the same speed as 50cc motorbikes, high school students, in particular, are benefiting the most from them. For them, these motorbikes are affordable while drivers are not required to register the vehicle nor wear a helmet riding it. According to a bike shop owner on Vo Thi Sau Street, electric motorbikes are going fast and his 500-unit monthly stocks are not enough to cater to customer demand. Vu Tien Hao, Director of Delta Co, Ltd. (an importer of electric motorbikes) agrees and reveals that his company has sold over 10,000 units through its agents throughout Vietnam. However, the boom is also frustrating traffic police as there are no rules in place to regulate the passengers of electric motorbikes. A representative of the HCM City Traffic Police Agency expressed concern over passenger safety and said that riders should voluntarily use helmets.

High level of aflatoxin in rice caused cancer (March 2008)

According to Dr Anthony Sales from the Department of Science and Technology, locally-produced rice contains a higher level of aflatoxin, which can accumulate in the body and may cause cancer 20 to 30 years down the line. He also explained that due to its chronic toxicity, aflatoxin is heat resistant and cannot be removed through pressure cooking. Sales' study reveals that even though locally-produced rice has a lower toxin level than that produced in other regions (such as the Philippines), the fact that aflatoxin accumulates and might cause cancer of the liver and other illness worries him the most. Moreover, his study, limited to the Davao Region, also shows thatthe aflatoxin content of brown rice was about 10 times higher compared to levels found in white rice . Hence, the study would actually contradict the notion that brown rice consumption was a healthier option. Sales also pointed out that there is no laboratory in the region that can analyse aflatoxin level in rice and other food products. The representative of the Bureau of Food and Drugs, Arnold Alindada, said that the agency does monitor aflatoxin level in peanuts and corn but not in rice.

Junk food ads aimed at kids spotlighted (March 2008)

During a Vietnam Standard and Consumer Organisation (VINATAS) seminar in Hanoi, the challenge of stopping junk food firms from targeting children was the key focus of discussions. The seminar was organised to mark World Consumer Rights Day. According to the World Health Organization, an estimated 22 million children around the

world under the age of five have already been classified as obese. In Hanoi, the Vietnamese Institute of Nutrition also revealed that 6% of secondary school students and about 4.9% of four to six-year-olds are overweight or obese. Do Gia Phan, vice chairman and general secretary of VINATAS said "Many food and drink companies which sell harmful food such as fast food and food high in sugar and lipid content are now using many forms of advertisements to target children. These advertisements are encouraging children to eat unhealthy food products. Meanwhile, children are unaware of the risks and can easily be persuaded by clever advertising," said Phan. Vu Thi Bach Nga, head of the Consumer Protection Unit at the Vietnam Competition Administration Department also said that "The Consumers International (CI) is asking the World Health Organisation for an international code on banning the marketing of unhealthy food to children," as part of its effort to prevent firms from marketing unhealthy food to children.

Consumer demand for electronics continues to soar (February 2008)

The demand for electronics started increasing before the Vietnamese traditional festival, Tet, earlier this year. However, as Viet Long Ltd Co. reported, consumer demand for electronics remains strong even after Tet. In particular, top brand TVs, DVD players and digital cameras from names such as Sony, LG, Samsung and Canon have been popular choices among Vietnamese shoppers. According to Vu Minh Quang, a trader on Hai Ba Trung Street, his business revenue has increased by 35% compared with the period before Tet. Consumers' growing demand has been spurred by duty exemptions on 228 types of electronics this year. Prices for white goods such as refrigerators have gone down by 5% and those of air-conditioning units by 7-10%.

Vietnam's growth burning holes in consumers' pockets? (February 2008)

Vietnamese consumers are struggling to cope with the country's rampant inflation as economic growth continues to upsurge. In particular, food prices have risen by about one fifth annually over the past few years.The increase in consumer prices is said to have outpaced wage rises and is impacting on the poor the most, forcing consumers to budget more rigorously. Nguyen Thi Lien, a 40-year old teacher indicated that "I have to get by on a modest salary, and added that "These steep price increases really affect my family spending. Now I have to think carefully about what to buy when I go shopping. "The problem is serious because of the very large portion that food makes up in the budgets of poor people in Vietnam said Jonathan Picus, the UNDP's chief economist. He added that this phenomenon may force some people back into poverty.

Affluent young shoppers go for designer brands (February 2008)

As living standards in Vietnam rise, the desire for luxury items and branded clothing grows among Vietnamese consumers. This phenomenon is particularly apparent among the younger generation in Vietnam, for whom the acquisition of expensive designer clothing has become a way of exhibiting their personal style and their degree of wealth. To Van Anh, shopping for luxury brands like D&G, Versace, Cavalli, Just Cavalli and Armani has become a common shopping routine. She also indicated that she spends over US$1000 on each shopping trip which has also turned her into a regular customer at the Luxury Mall in Hanoi. Van Anh also resells her belongings on muare.vinahoo.com. On the other hand, Mai Uyen who is also subscribed to the same website, was selling her Louis Vuitton bag that she bought only a few days earlier for $1,200 at the Louis Vuitton shop, as she was already in love with another designer bag. Ngo Quang Nam, the manager of Hanoi's Calvin Klein shop said that their customers are mainly young people spending an average of VND10 million (US$620).

Overspending on the Tet holiday (January 2008)

Recent research conducted by HSBC reveals that consumers in Vietnam may be overspending on the Lunar New Year 'Tet' celebration. The survey, studying Vietnamese consumption habits, shows that the community spends heavily on traditional events and fare such as parties, clothing, decorations and gifts of money: 62% of participants stressed the need to serve good food for the festive season, 47% opted to spend on shopping for clothes and 26% preferred to spend on gifts. The study also indicated the emergence of a more contemporary trend amongst the younger generation, who believe that borrowing money from banks to cope with Tet's expenses is acceptable.

Supermarkets lure Tet shoppers (January 2008)

As Tet draws closer, more shoppers are rushing into supermarkets and department stores where they can get a larger variety of goods ranging from basics like food and decorations, to more expensive items such as furniture and electronics. Instead of following the tradition of family gathering to prepare Chung cake or Gio (pork roll) themselves, Vietnamese consumers are opting to buy them from supermarkets where food has been readily prepared and reasonably priced. "I have lived in Vietnam for three years but this is the first time I feel the Tet atmosphere. I buy Chung cake and Gio at the supermarket because I'm afraid of the quality at the open market," said Tomoko

Shimizu, a Japanese teacher living in Hanoi. According to Ung Hong Mai "I don't only head to the supermarket during Tet, but also for my day-to-day shopping. I am attracted by constant promotions, like 20% or 30% reductions and free gifts with purchase.

Vietnamese still dubious about Western-style convenience stores (January 2008)

With low consumer traffic and high initial investment, convenience stores in Vietnam, many linked to chains, are finding it hard to make a profit, only making half of the estimated VND10 million per day that is required to recoup investment. Local customers are still opting for traditional grocery shops instead of convenience stores as the eyecatching brightly decorated storefronts are unfamiliar to them. In addition, convenience stores do not offer a great variety of fresh groceries, and typically charge more for their products. It is estimated that local consumers will require another year or two before they will begin to appreciate the benefits of convenience stores. As Vietnam's retail market is growing rapidly, opportunities and growth potentials are still high in the industry, however. A recent survey conducted by CBRE property consultants suggests that an increase in personal incomes has given consumers more disposable income, boosting their spending by 20%.

US$1.3 billion Disney-style theme park to open in Vietnam (December 2007)

Vietnam will be opening its very first Disneyland-style theme park in Vung Tau City. The investment application was submitted last month by Good Choice Import-Export and Investment Inc. The Vung Tau World Theme Park project covers approximately 200 hectares of land in the coastal city which will house an 88-story office building, international conference centre, shopping malls, hotels, 3D Cinema and open-air stages alongside a Wonder of the World park. The Wonder of the World features replicas of monumental figures of the seven wonders like the Eiffel Tower, Golden Gate Bridge and the Egyptian Pyramids. It will be able to accommodate up to 100,000 visitors and aims to open to the public after 2010.

Festive season urges Vietnamese consumers to shop for TVs? (December 2007)
As the festive season drew closer, the demand for TVs surged among Vietnamese consumers. Viet Long Ltd Co. recorded that recent sales of electronic goods has grown by 20% to 30% over the same period last year. As a trader in Hanoi said, Our sales of flat screen TVs have surged to a record level, about 15% up on the same period last year. Similarly, Vu Minh Quang, another trader in Hai Ba Trung indicated that top brand LCD TVs like Sony and LG have been his best selling products. It is also estimated that sales of electronic goods will pick up in the next few months as lunar New Year (a.k.a. Tet) draws closer. Viet Long also revealed that electronics manufacturers are planning to introduce new models to the market by the end of December to stimulate sales even further. It is also said that Pre-Tet shopping boosts white goods sales in HCM City and Hanoi. Electronic retailers reported that sales has grown by 30% for electronic goods and among those, TVs have prevailed as their top selling product.

Vietnam's retail landscape is undergoing a metamorphosis (November 2007)

According to Rik Mekkelholt, the head of CBRE Vietnam's retail business section, Vietnam's retail scene is in the grip of a revolution: It's quite a change this year to have 140 super/hypermarkets, 20 trade centres and some one million square metres of space for retail business developments, in addition to the traditional street markets and small stores [where 90% of goods are still being sold]. The rise in income is said to have fuelled this rapid change, with an estimated increase in per capita disposable income of 20.8% forecast between 2006 and 2011 according to national statistics. Currently, both foreign and local retailers continue to expand and invest in the Vietnamese market including international players such as Tesco and Carrefour. There is only a limited supply of retail space in Ho Chi Min City, however, where occupancy rates are as high as 99% in 13 trade centres, while the same scenario is apparent in all six trade centres in Hanoi.

Vietnam's first private airline cleared for take off (November 2007)
Vietnam's Prime Minister Nguyen Tan Dung has given the go-ahead to issue a license to the country's first private airline, VietJetAir. Domestic flights are currently exclusively provided by the government-owned flag carrier, Vietnam Airlines, and its wholly-owned subsidiary Pacific Airlines. Consumers and tour operators have long complained about the absence of alternatives. VietJetAir public relations officer, Robert Hugh, said the company expected to launch operations at the end of 2008, with the delay due to the shortage of available aircraft for leasing. He revealed that the company would be a low-cost, short-haul carrier, serving domestic and some regional routes. Our strategy will be to go after overpriced or under-served routes, and there are quite a few available, Hugh said. Hanoi

to Siem Reap is very expensive. Hanoi to Hong Kong is both overpriced and under-served. Tourism industry experts maintain that there are too few operators in Vietnam to meet rising demand on domestic routes. According to Vu The Binh of Vietnam's Tourism Administration, Vietnam needs as many domestic airlines as possible.

Better after sales service one of the routes to competing against foreign retailers on home turf (October 2007)
During this month's Vietnam Standards and Consumers Association (Vinastas) seminar in Hanoi, experts announced that in order to compete against foreign retailers, local retailers need to focus on improving their after sales service. With Vietnam's retailing market soon to be worth an estimated US$40 billion annually, a trend encouraged by loosening market entry conditions, international retailers are pouring in, hoping for a slice of the big pie. Currently, foreign retailers are investing via joint ventures with local businesses, as part of their entitlement to a 49% ownership stake. This cap will rise to 50% by January 2008, while full ownership will be permitted by 2009, allowing fullyforeign-owned retailers to descend on the Vietnamese market. As reported by Vinastas' research, experts found that even though local retailers have planned for expansion, this is not the best way of increasing competitiveness against foreign retailers, however. They have instead identified several weaknesses among local retailers that are impacting negatively on local consumers, particularly poor after sales service, a lack of value-added services, and the failure to honour warrantee terms. They believe that these are the main issues that local retailers should focus on. If local enterprises want to hold on to their traditional clients, concurred deputy minister of the Ministry of Industry and Trade's Control Department, Nguyen Manh, They most focus not only on improving quality, but also on remodeling their after sales service.

Hunger for famous high-end global brand names more visible (October 2007)
Local commentators have observed a growing 'fever' for luxury brands among Vietnamese consumers; particularly those aged 30-45 seen entering upper crust shopping malls. As a manager of the HCM City Opera Mall explains Louis Vuitton (LV), Burberry, Lacoste, Furla, French Connection UK and Dr Martins are suited to the pockets and demands of middle-aged people. A salesgirl at the same mall confirmed that it is not uncommon for customers to pay up to the equivalent of between US$1,200 and 1,800 for a purchase. Similar observations at other Vietnamese high-end shopping centres confirm that local 'affluentials' are keen to use bling to broadcast their higher financial standing and project authority, a pattern apparent in the majority of emerging markets. As one local entrepreneur explained: I'm using LV bags. I'm a businesswoman so I cannot use cheap things. According to the manager of a large seafood enterprise, he is addicted to big-name fashion products such as Valentino and Timberland shirts because they boost his self confidence. The lure of fashion brand names, albeit more affordable brands, is also attracting the attention of office and state employees.

Food hygiene and safety a burning issue in Vietnam (October 2007)

A damning WHO and United Nations Food and Agricultural Organisation (FAO) international report on food safety calling for sharper controls from farm to dining table, and highlighting that more than three billion cases of food poisoning are reported in the country each year, has resonated with Vietnamese consumer representatives and local journalists. While Vietnam has a comprehensive legal food control apparatus in place, the implementation of regulations is lax and not eased by the fact that responsibilities for ensuring consumer food safety are spread between several state agencies. According to Do Gia Phan of the Standards and Consumer Protection Association of Vietnam, the government needs to re-assign this task to a single body to coordinate everything relating to food hygiene and safety, and taking responsibility for the government and consumers. Firstly, producers must be educated about their social responsibility. Secondly, a plan for producing safe food and effective distribution channels for safe food is essential. Consumers have the right to receive full, accurate information from management agencies and producers, Phan stressed.

Retail opportunities due to hidden wealth (Sept 2007)

According to a recent KPMG report 'Vietnam: opens door to welcome Investment' there are major opportunities in the retail market because of the hidden wealth in Vietnam due to private companies which raise per average capita income up by 30% or higher in big cities. Gross domestic product (GDP) per capita in Vietnam is US$800 according to official figures but the real figure may be over $1,000 if other kinds of income are included and even higher in Hanoi and HCM City where the figure could be double the official one. Another factor is that around 1.2 million Vietnamese people join the workforce each year while the ratio of dependents has fallen from four dependents per each five workers in 1987 to 2.5/5 in 2007, all of which increases average spending power. As a result demand for consumer products has been rising strongly. Particular growth has been observed in: nutritious products such as fruit

juice, canned food; personal care products and housewares; clothes, footwear and cosmetics; while pharmaceutical products have grown at 13% since 2000.

Fake goods an increasing problem (Sept 2007)

Trade and production of fake products is a growth market in Vietnam with foods and beverages such as wine and also tobacco particularly targeted. Bogus foods and beverages are a particular safety concern with the packaging of false goods growing more sophisticated. Compounding the problem, many bogus goods are imported from foreign countries, particularly in the electronics sector.

Motorbike boom (Sept 2007)

The motorbike market is in a strong growth phase with manufacturers reporting increased sales with the SeptemberFebruary high season approaching. Scooters have become more and more popular with commuters in big cities and urban areas switching from push bikes and cars. According to the Institute for Industry Policy and Strategy (IPS) under the Ministry of Industry and Trade, by 2010 Vietnam will have 25 million motorbikes in circulation, with 31 million by 2015 and 35 million by 2020. In Hanoi and HCM City, every two people own one motorbike on average. Experts have forecast that the demand for motorbikes will rise sharply in rural areas as a result of higher living standards.

Frozen chicken leaves Vietnamese consumers cold (Aug 2007)

Frozen chicken sales are at a standstill despite promotions from the Government and related sectors that have encouraged investment in hygienic poultry production ever since bird flu struck South Vietnam in 2004. According to analysts, the problem is that Vietnamese consumers prefer buying whole fresh chicken from markets and complain that frozen products do not taste as good as fresh meats. Phuc Thinh, a domestic business specialising in chicken products, was forced to stop selling its brand of frozen food because no one was buying it in supermarkets. Similarly, Japfa Comfeed Viet Nam, has a factory operating below full capacity because it only sells 5,000 chicken products in a month despite providing free refrigeration units and installation to stores.

Consumers changing consumption habits (Aug 2007)

Major changes are underway in the shopping and consumption habits of Vietnamese consumers, according to research conducted by the Trade Research Institute. In the last few years, Vietnam has ranked third in the world in terms of consumption ratio (referring to the amount of money consumers put aside for personal consumption in comparison with GDP). In other words, Vietnamese consumers have been spending more money to satisfy their personal demands and consumers designated middle-class have appeared. Requirements of new consumers are forecast to be stricter, with demand for safer and cleaner products.

Regional consumer confidence on the rise (Aug 2007)

According to the latest MasterCard Survey, consumer confidence continues on an optimistic uptrend in Asia/Pacific. China's continued strong GDP growth, and its emerging role as the 'growth engine' for the region, has contributed to the rise in consumer confidence. Several other economic announcements have also resonated favourably with consumers, including the positive news of GDP growth in Singapore, Malaysia and Japan. Vietnam (91.3) continues to top the 13 Asia/Pacific markets as the most buoyant in consumer sentiment for the six months ahead. Australia and Malaysia meanwhile showed the biggest jumps in levels of consumer optimism.

Are convenience stores convenient? (Aug 2007)

According to reports, Vietnamese consumers are not taking to the c-store concept. A series of convenience store chains, Shop&Go, G7 Mart, Vmart, Best&Buy, Speedy, Day&Night, were open at the end of 2006 in HCM City and other localities but impact has been low because consumers are used to traditional markets and c-stores are mainly used by non-residents. According to research, convenience stores, in the eyes of many Vietnamese people are something very luxurious because consumers have to pay higher prices for convenience.

Smoke signals (June 2007)

According to a recent survey, 15 million Vietnamese people smoke, with 50% of males and 3.4% of females of the age of 16 and upwards smoking. Seven years ago the government banned smoking in clinics, schools, kindergartens,

cinemas, and public vehicles. However, smoking in public sites is still popular, and as a result, in May 2007, the Prime Minister banned smoking in schools, hospitals, production areas, offices and in public sites.

Vietnam is third most attractive retail market (June 2007)

Under Vietnam 's commitments relating to WTO accession, from 2009 the Vietnamese retail market will be opened up to allow the establishment of wholly foreign companies. In preparation for foreign competition, the Vietnam Distribution Association Network Development and Investment Joint Stock Co. (VDA) has been formed to enable greater cooperation between retailers. A recent survey by US leading consultancy group, AT Kearney, showed that Vietnam is now the world's third most attractive retail market, after India and Russia . This was demonstrated by the successes of foreign enterprises such as Metro, Big C, Parkson and Unilever.

e-commerce expansion urged (June 2007)

The Trade Ministry is exhorting companies to develop e-commerce, which is currently growing fast. Examples include Pacific Airlines which launched e-tickets in February 2007 while the eBay online auction website is testing its Vietnamese version. Most domestic banks have introduced Internet Banking, Home Banking, Mobile Banking, and ATM cards and tourism companies accept online bookings. According to a survey of 303 enterprises by the Ecommerce Department, 83% of businesses have Internet access, 25% have their own websites and 16% have plans or projects to develop e-commerce. The goal is for 70% of major businesses to be using e-commerce by 2010. This is one of three important goals Vietnam has set in a master plan for e-commerce development in the 2006-2010 period.

Vietnamese, Chinese provinces to open new sea tourism route (June 2007)
The central province of Thua Thien-Hue is joining with China's Guangxi Province to open a sea tourism route linking Guangxi's Beihai city and Vietnam's former imperial capital city of Hue. When the new route opens, cruise liners will sail to Hue after stopping over in Halong Bay. Two cruise ships from Guangxi's Beihai take turns traveling to Halong Bay each day.

Global warming 1 metre = $17 billion a year (June 2007)

According to research undertaken by the Office for Sea Resources and Environmental Management a Survey under the Ministry of Natural Resources and the Environment, Vietnam will suffer an annual loss of US$17 billion if the sea level rises by 1m. Such a rise would affect the lives of 17 million Vietnamese, including 14 million people in the Mekong Delta. It is forecast that the temperature will increase in southern provinces by 0.1-0.5oC and from 0.3 to 0.7oC in the north in 2010, while the sea level rise is predicted to be 3-15cm higher in 2010 compared to the current level.

Vietnamese consumers wary about Chinese goods (June 2007)

China-made electronics and home appliances such as TV sets, DVD players, electric pans, cookers etc dominate the domestic market. Recent scares such as imported lipsticks and tooth paste made in China being accused of containing carcinogens, have, however, affected consumer attitudes. According to reports some Vietnamese consumers now apply the phrase 'the cheapest are the dearest' when talking about Chinese goods.

Consumers look for quality and convenience in their beverages (May 2007)
Vietnam's beverage sector, particularly for aluminium products is growing rapidly as higher consumer purchasing power drives growth of the packaged foods market. About 200 new beverages were launched in the Vietnamese market in the first 10 months of 2005, nearly double that of 2004, according to a survey conducted by TNS Vietnam. The survey also revealed that consumers are increasingly looking for quality and convenient products

Booming post WTO Vietnam (May 2007)

Vietnam has one of the world's fastest-growing economies due to an investment boom following joining the WTO in January 2007. According to reports there have been huge Japanese investments with the country being regarded as a hedge against China, known as the China-plus-one strategy, or as a country beginning to rival the BRICs. In 2005, Vietnam's economy grew by 8.4%, followed by 8.2% in 2006. Growth in 2007 is projected at 8.3%.Vietnam attracted $9.22 billion in investment in terms of commitment from foreign companies in 2006, more than double the amount from the previous year, according to JETRO. Many Japanese companies are beginning to shift their production from China to Vietnam based on the China-plus-one policy to diversify their investment and reduce their

dependence on China following the series of violent anti-Japan demonstrations in China in 2005. In contrast, Vietnam is regarded as a politically and socially stable country with few political, religious or ethnic problems.

E-commerce below potential (May 2007)

While as many as 92% of the country's small- and medium-sized enterprises have used the Internet to promote their products or services, only about 8% are using business-to-business (B2B) sites to conduct transactions, according to the Ministry of Trade. The view is that e-commerce development overall continues to be hampered by low awareness of enterprises and individuals, poor Internet security and slow Internet connections.

Imported luxury cars popular with Vietnamese consumers (April 2007)

According to the HCM City Customs Office, there is a growth trend in imported, mostly high-end, brand new models like Lexus, BMW, Camry and Mercedes. Car dealers blame the downward trend in locally assembled vehicles on the preference of high-income business owners for luxury foreign models, which are seen as modern and environmentally friendly, with high safety standards.

Consumer rights (April 2007)

According to reports, Vietnamese consumers are bombarded daily with bad news about what they buy. Even though authorities have made great efforts to fight the proliferation of cheap products, consumers are regarded as in need of protection because fake goods are mixed with genuine products at the market. In 2007 Vietnam celebrated World Consumer Rights Day for the first time on March 15. Most Vietnamese consumers are not aware of their rights, although they do have recourse to the Ministry of Trade's Competition Management Agency.

Vietnamese youth join the mainstream (March 2007)

According to the Mindshare Vietnam Company at 'Vietnam Marketing 2007', the products that Vietnamese youth now most aspire to are motorbikes, mobile phones, laptops, iPods, and fashion products. Some 68% of young people said that brand is most important when they buy something and 73% said they are ready to pay more for quality products. More than 70% said they buy goods or services based on advertising, however watching TV, listening to music and reading are no longer the favourite habit of Vietnamese young people and these activities have been replaced by going to the street, playing sports and games and surfing the Internet. A survey in 2006 showed that 52% of young people surf the Internet at least once a week, compared to 32% in 2002. Vietnamese youth often go to supermarkets, trading centres, cinemas, cultural centres and stadiums. They have also learnt some new trends from the world, such as skateboarding, basket ball, hip-hop dancing, and fashion.

Mobile phones most vital to the young (March 2007)

Young people (20-24) believe that mobile phones are the most essential thing in their lives (46%). Up to 2/3 of urban youth own a mobile phone. Surveys also show that 92% of the young often download music into their handsets, 73% download ringtones, 50% play games, 44% download screensavers, 20% watch movies, 18% send cards and 5% send and receive email on their mobile phone. Marketers believe that advertising via mobile phone holds great potential. According to Nicole Vooijs' analysis, there are more than 40 ways to approach the young but TV is still the best tool. The right approach to generation Y in Vietnam is vital because the average age of the country's population is 24.

Vietnamese are most optimistic consumers (March 2007)

According to the latest consumer confidence survey conducted by MasterCard worldwide, Vietnamese consumers are the most optimistic in the Asia-Pacific region with a score of 93.7, a record high. The positive outlook in Vietnamese consumer confidence is largely attributed to the switch to a market economy which is the fastest growing in South-East Asia. Vietnam's accession to the WTO is another positive with markets opening up and deregulation expected. However, economists warned that the positive outlook for the first half of 2007 has to be viewed in the context of the widely expected slowdown in growth in the US, and possibly China, two key drivers of exports for Asia.

Taxes down, but prices up (March 2007)

Although the Government has lowered the tax rates on several categories of imports since January 11, 2007, consumers still have to buy goods at high prices. Only confectionary and consumer goods have seen prices decrease

- by 5-15%, while the prices of other goods remain unchanged, and some products have even increased by 5-15% in price.

Consumers warm to plastic (Feb 2007)

According to a survey by Visa International, more than 10 million people in Vietnam are eligible to receive credit cards. The survey, designed to gauge the public's attitude to consumer finance, revealed a positive attitude among Vietnamese consumers towards the concept of payment cards despite being used to an overwhelmingly cash based market. The survey revealed that if children, the elderly, the unemployed and those on low incomes were excluded there was a potential market of almost 10.5 million people in Viet Nam who would be eligible to open bank accounts and have credit cards.

Household income structures changing (Feb 2007)

The Visa survey also revealed that traditional models of sharing income with the family remain and approximately 69% of an individual's income on average is shared with the rest of the household. However, family units in Vietnam increasingly have more than one breadwinner in the household, thereby reducing the dependence on a single income earner and also resulting in a rise in a household disposable income. Currently, Vietnamese consumers also place great emphasis on saving for the future with over 80% avoiding borrowing. (see also story below 'Non-cash payments still not popular (Dec 2007)

Vietnamese consumers are optimistic (Jan 2007)

According to the Gallup International Association's Voice of the People Survey, Vietnam is home to the most optimistic residents in the world, with more than nine out of every 10 citizens interviewed in the four main cities (94%) saying 2007 will be better than 2006. Vietnam has been head of the optimism chart for the last four years. According to analysts, consumers are optimistic because of the country's political and social stability, and the gradual economic improvement.

Brand names decisive (Dec 2006)

According to a survey by the Club of Vietnam-made High-quality Products, brand names account for 56% of purchase decisions more than double the previous year (25%) with price the second most powerful influence (54.6%). Customers who live in the north are more cost oriented with some 63.5% of customers deciding to buy goods because they find the prices reasonable. Meanwhile, customers in the central and southern provinces tend to buy goods because of 1. brand name (58%) 2. price (49%) 3. design 4. distribution and marketing.

Young Hanoians IT trends (Dec 2006)

According to a survey of 18-24s, unlike Malaysian youngsters who send an average of 18 text messages a day and rarely make a call, youths in Vietnamese cities send between five and six messages but make a similar number of voice calls. According to the same survey, most of the Vietnamese young generation use pre-paid cards with an average expenditure of 300,000 VND a month. The young like to go to Internet cafes despite having their home computers linked to Internet services and for online communication Yahoo Messenger is the most popular medium.

Bill sets age limit for alcohol purchase (Dec 2006)

Vietnam's Health Strategy and Policy Institute has introduced a draft bill to set the age for consumption and purchase of wine and beer at 18 years in order to curb consumption among the young. The bill also seeks to ban public advertising of all beverages with an alcohol content of 4.5% or higher. Currently, only wine is banned from public advertising in Vietnam. A recent survey by the Institute in seven local provinces and cities showed that almost onethird of Vietnamese population drink beer and wine regularly.

Non-cash payments still not popular (Dec 2006)

According to the Ministry of Trade, the rapid development of the payment card market and the increase in Internet users have helped reduce the volume of cash in circulation and a method of payment with 'electronic money' via mobile phones (Mobile ATM) has been launched. However, based on a recent survey on the development of ecommerce in Vietnam, the e-commerce department under the Ministry of Trade stated that although 98.3% of Vietnamese enterprises now have their own websites only 27.4% allow people to place orders via the Internet, and only 3.2% allow them to make online payments.

Vietnamese teens and twenties skilled at using the Internet (Nov 2006)
Some 82% of 15-19 year olds and 74% of 20-24 year olds, are skilled at using the Internet according to a survey by Taylor Nelson Sofres. Overall the proportion of consumers able to surf the web is 45%. The survey also showed the youthfulness of the Vietnamese population: some 69% of consumers are less than 35 years old and 52% are younger than 25 with only 31% 35 years old or older. Personal wealth is also on the increase which enables more Internet usage: the average income of Vietnamese consumers has grown by US$5 per month over the past three years.

Consumers forecast to increase personal care spending (Nov 2006)

The recent survey by Taylor Nelson Sofres survey forecasts that Vietnamese consumers will spend more on shopping, particular for personal care products like insurance, health services, cosmetics for men, and child care. The survey also found that Vietnamese consumers are seeking products that bring convenience and have high quality.

Big C plans superstore in central Vietnam (Nov 2006)

The European retail group Vindemia plans to bring the Big C superstore model to Vietnam's central Danang city in 2007 in addition to its outlets in northern Vietnam and its most recent outlet in Ho Chi Minh City. Vietnam has a roadmap for opening up the country's retail market to foreign investors under the country's WTO commitments to regional and international institutions. Foreign retailers are allowed to set up joint-ventures in Vietnam from January 1 2007.

Hot pepper (Nov 2006)

Vietnam, the world's largest pepper exporter, is enjoying a windfall, due to global prices rising 20%. According to the Vietnam Pepper Association (VPA) prices rose by US$500 over the last month to $2,500 per ton. The price rise was forecast to continue because of the declining pepper supply from India, Brazil, and Indonesia. Vietnam, which accounts for half the global pepper supply, exported 112,000 tons of pepper worth $178 million in the first 10 months of 2006, up 20% in year-on-year volume terms and 39% in value terms. Vietnam exports to 80 countries with Singapore, Russia, the EU, and the Middle East the biggest markets. The association is encouraging the planting of white pepper, favoured in markets such as the US. In 2005 white pepper accounted for 35% of the country's exports.

Booming Vietnam (Oct 2006)

In the past three years, Vietnam, which has a population of some 82 million, has enjoyed annual GDP growth of more than 7%, with 8% forecast for 2006 and 2007. According to the United Nations, Vietnam has had the best global track record for poverty reduction over the past 10 years. Vietnam's World Trade Organisation accession is expected to be ratified in November 2006 and this is forecast to further boost the economy.

The three plus breadwinner family (Oct 2006)

The structure of the average Vietnamese family is unique, due to migration both within the country's borders and abroad. Thus most Vietnamese now have family members across the nation and overseas, with the majority of Viet Kieu (overseas Vietnamese) in America, France, Canada and Australia. This has caused the development of a threeplus breadwinner family and created unique marketing challenges and cross-cultural opportunities.

Consumer attitudes (Oct 2006)

According to recent surveys, more than 70% of Vietnamese believe that their standard of living will improve over the next 12 months. Optimism, coupled with respect for elders, respect for education, humility, resourcefulness and a belief in hard work, are other key elements of the Vietnamese consumer mindset.

Urban and rural consumers (Oct 2006)

Three-quarters of Vietnamese live in rural areas while, according to research, the country's 15 million urban consumers are starting to desire the means to differentiate themselves from others in society. Although urban Vietnamese continue to show humility with regard to wealth, they are also beginning to use brands to demonstrate success.

85% of older teens online (Oct 2006)

According to a survey, 84% of 15-19 year old urban youths in Vietnam are surfing the internet on a weekly basis, which has had a huge impact on brand recognition and the development of Vietnam's consumer culture. Among Vietnam's other advantages are: one dominant ethnic group, single language, one coast and one major highway linked to its major ports, air routes and population bases. These factors make infrastructure development and the creation of an equal standard of living a realistic and practical aspiration for Vietnam.

Rise of the female consumer (Oct 2006)

According to reports, Vietnamese women are increasingly making their own money and taking up senior positions in local and foreign companies. Although brands are important to them, these women are currently more interested in the efficacy than the image of brands. Men, on the other hand, are driven more by the 'badge' of a brand and express their aspirations and success through products. Personal-care products spend is growing at a rate of up to 24% in some categories.

Vietnamese consumers unhealthy eating habits (Sept 2006)

According to a survey by the Institute of Nutrition, obesity, high blood pressure, and other diseases are on the rise in Vietnam because of poor dietary habits. The survey found that, while nutritional experts call for eating over 300g of vegetables daily, the average Vietnamese is only consuming 170-200g. The survey also showed that the average Vietnamese consumes 18-22g salt a day, over three times the advised level of less than 6g. In addition the average Vietnamese consumes 80g of meat a day and 60g of fish comapared with the average in more developed Asian countries, of 70g of meat and 200-300g of fish.

Drinking habits survey (August 2006)

According to a recent survey by the Health Strategy and Policy Institute (SHPI), men and state officials are the most frequent consumers of alcohol, followed by workers in businesses, retired persons and farmers. Educated people account for the highest proportion of drinkers at 77%. Farmers recorded the highest levels of alcohol abuse at 28%, followed by company employees at 26%, manual labourers at 21%, and civil servants at 17%. The survey attributed an increase in alcohol consumption in Vietnam in recent years to improved living conditions and strong growth in locally produced beer and other alcoholic drinks. Domestic beer output increased by 30% in 1990-1996, and 10-15% over the past decade.

Marriage rules in Vietnam (August 2006)

A recent survey conducted by the Research Centre for Family and Women shows that the ratio of adults getting married is very high: 66.5% for men and 62.5 for women. The survey report, entitled 'Vietnamese family and women in the age of modernization and industrialization', points out that only 3.3% of Vietnamese people aged 50 or over never married. Only around 10% of marriages were arranged by parents, and the majority of these were in rural areas. Divorces were however increasing: according to statistics of the People's Supreme Court. The number of divorces in big cities is now equivalent to 30% of the number of marriages.

16.8% of Vietnamese adults suffer obesity (August 2006)

According to the Nutrition Institute at the Ministry of Health, up to 16.8% of Vietnamese people in the age bracket of 25-64 are overweight or obese. Some two-thirds of obese people are over 45 years old while the number of obese people in Vietnam's urban areas is triple those in rural areas. Obesity is attributed to diets too high in salt, rice and fat In a bid to combat obesity, the ministry is offering consumers advice on healthy diets, cooking skills and obesityrelated illnesses.

Beer per cap has nearly doubled since 1997 (Aug 2006)
In 2005, Vietnam produced 1.5 bn litres of beer, continuing the impressive growth rate of 8-12% per annum of the last five years. Average consumption volume per capita now is 14.8 litres a year, almost double the volume in 1997. The industry is attracting investment because of the potential growth as income per capita of the population of 84 million people, rises. One of the biggest problems for authorities is the existence of many low output home brewing facilities which use out-of-date technology prone to product contamination.

online gaming boom (July 2006)

Vietnam's online gaming market is expected to reach a compound annual growth rate of 14.9% during the next four years, according to research by the International Data Corporation (IDC). The business forecast comes from a recent market research survey on the online gaming industry in the Asia-Pacific region (excluding Japan). According to the research, Vietnam's contribution to the Asia-Pacific online gaming market will boom in the future thanks to the strong development of communication and information technology across the nation. Vietnam currently has about 9.6 million high speed Internet (ADSL - Asymmetric Digital Subscriber Line) subscribers with relatively high access fees.

Vietnam consumer confidence tops in the region (July 2006)

Consumer confidence in Vietnam registered at 89.6 points, the highest among 13 Asian markets in a recent MasterCard survey, followed by Hong Kong at 88.5 points and China at 78.2 points. The high marks for Vietnam on the 100-point scale resulted from the effect on consumers of prolonged political stability and improved living standards. Inland political uncertainties and unrest in the Middle East have battered Asian consumer confidence overall, adding to concerns over oil price hikes.

Male babies outnumber females (July 2006)

A recent survey has showed that male babies in Vietnam outnumber their female counterparts by 13-14%. The survey is based on updated statistics compiled from six provinces and cities which have been reporting the highest ratios of male newborns. Although the real ratio is much less, it is still significant. In 2003, central Vietnam's Danang city reported its male/female newborn ratio as 189:100.

Retail boom (June 2006)

Total retail sales in 2005 increased 45% over the previous year, according to analysts. According to CBRE, a retail estate company, Hanoi is a prime example of high growth and high potential in retail and several shopping centres are near completion and will open in 2006 or early in 2007. The largest projects include the Ciputra Mall, The Garden, the Opera Business Centre and Melinh Plaza. Another survey conducted by leading consultancy group AT Kearney gave Vietnam 84 points, ranking it third in the world on the Global Retail Development Index GRDI.

Young film audiences dont like messages (June 2006)

Two films about war and ethnic minorities that have won major prizes and awards at a prestigious Vietnamese film festival have failed to draw young audiences to the cinema. Not only in Vietnam but in many countries artistic films are less attractive to young audiences than commercial ones. The young constitute the main proportion of film audiences in Vietnam.

Vietnamese consumers buy more cars (June 2006)

Sales for 11 members of the Vietnam Automobile Manufacturers Association (VAMA) increased dramatically in May. Total units sold by the 11 auto joint ventures were 2,712 for May, up by 37.5% (739 units) over the previous month, not including figures for five new members. Sales on new local makes have been bouncing back since the end of April, when the Ministry of Finance (MoF) announced new tariffs on imported used cars that caused many consumers to give up their dream of owning foreign models. Industry figures also show that manufacturers that have traditionally held the largest market shares, such as Toyota, Vidamco, Suzuki and Mercedes Benz, dropped in May.

Big in pepper (June 2006)

Vietnam has so far exported 59,000 tons of pepper this year, earning $84 million, up 40% in terms of quantity and 44% in terms of value over the same period last year, according to the Ministry of Trade. Vietnam now holds a share of approximately 50% of the world market for pepper and exports to 73 countries throughout the world, especially the US, EU and the Middle East.

Stable growth predicted (June 2006)

The World Bank predicted on June 2 that the Vietnamese economy would continue to move at a stable growth rate and spoke highly of Vietnam's preparations for its socio-economic development plan for the 2006-2010 period, highlighting the openness and the transparency of this preparatory work.

Eightfold games growth forecast

The number of enterprises specialising in developing games played on computers and mobile phones in Vietnam is forecast to increase to 83 by 2010 from current 10, according to the Vietnam Software Association (Vinasa). Currently, computer games played in the Vietnamese market (most of which are massive multiplayer online roleplaying games (MMORPG)), are imported from South Korea and China. Vietnam currently has some 1 million users of MU (developed by South Korea's Webzen), 900,000 users of Vo Lam Truyen Ky (Vietnamese edition of Swordsman Online by China's Kingsoft,) and 500,000 users of PTV (localized version of Prison Tale by South Korea's Yedang Entertainment). To develop the Vietnamese game industry, the Vinasa has proposed the establishment of game development groups, co-operation with foreign information technology, construction of game research and development centres, and launch of game-programming contests. The country's leading IT company, FPT, plans to launch its first MMORPG named "Son Tinh - Thuy Tinh" with a plot similar to a well-known Vietnamese legend, in mid 2006.

Opening the Gates, big plans for IT

Microsoft Corporation is to facilitate access to computers in Vietnam through a special program to be launched in April while Bill Gates is in the country. The OneClick project will enable easy access to computers and software by instalment deals offered to Vietnamese who cannot afford the software. OneClick is an integrated package comprising locally assembled computers, a Microsoft office suite written in Vietnamese and high-speed Internet service offered by VDC, a Vietnamese data company. Vietnam, with a population of over 83.1 million, had 11.8 million Internet users, or 14.2% of the total population, at the end of March 2006. Under the country's strategy on developing information technology and telecommunications, every 100 residents will have 32-42 phones, over 10 personal computers, and 8-12 Internet subscribers by 2010.

Gasoline prices to rise

Vietnamese consumers are to pay more at pumps in the wake of rising global tensions and higher oil prices. Vietnam spent US$840 million on petrol imports in the first two months of 2006. In 2005 the country imported 11.3 million tons of petroleum products at a total cost of $5.1 billion, a 2.6% increase in volume and 40% cost increase compared to 2004. In 2005 the state subsidised domestic petrol importers by VND10 trillion (US$628 million) in tax breaks to keep domestic gas prices down.

Consumers go mobile
The VNPT, VinaPhone and MobiFone mobile networks recently announced more than 7.2 million new subscribers between them. If they maintain current new subscriber-signing rates, the two networks could reach 10 million subscribers by year end 2006.

Faster economic growth planned

According to the Government, an annual economic growth rate of up to 8% over the next five years is achievable. To facilitate this, steps are being taken to open up the economy: over the next five years, all discriminatory policies between domestic and foreign businesses will be removed, and an improved legal environment for business activities will be created, especially for the private and foreign-invested sectors. GDP per capita was forecast to rise to US $1,100 in 2010 from the current US $640. Priority was to be given to the development of high-tech products.

Poor to get free medical coverage

According to the Ministry of Health, 18 million poor people around the country will receive cards enabling them to get free medical check-ups and treatment at state hospitals and clinics. The cards are offered through the national health fund for the poor.

New theme park proposed for Vietnam

A US group is seeking a license to build a US $550 million Disney-style entertainment complex in the southern Vietnamese resort city of Vung Tau. Platinum Dragon Empire Inc. had submitted a proposal to Ba Ria-Vung Tau province authorities for a $300 million, 200-hectare entertainment complex themed Wonderful World, and a $250 million underwater world. The province Peoples Committee recently issued a license to another US company, Winvest Investment LLC group, for the Saigon Atlantis Hotel, at an estimated $300 million.

Taking IT to teenagers
The Vietnam Youth Union has drawn up a trial project that will be implemented in three cities - Hanoi, Ho Chi Minh City, and Da Nang, and six provinces, to provide 27,000 teenagers basic knowledge of computing. The project will also train 810 young people in rural communes who will help train more people all over the country.