Idemisu Q8 – The First 100% Foreign Capital Petrol Station in Hanoi

Idemisu Q8 – The First 100% Foreign Capital Petrol Station in Hanoi

  tháng 10 12, 2017

Japan-Vietnam economic cooperation will form a new value chain

On October 5th 2017, at the Thang Long Industrial Park (Hanoi), the opening ceremony of the Idemisu Q8 petrol station was held, marking the first 100% foreign capital petroleum station participating in the Vietnam petroleum retail market.

IQ8 is a joint venture between Kuwait International Petroleum (Kuwait) and Idemitsu Kosan (Japan).

Based on the experiences that both Kuwait Petroleum and Idemitsu have achieved in Europe and Japan, IQ8 Petroleum Joint Venture is aiming to develop professional petroleum business in Vietnam in the next years.

Thang Long gas station has carved a mark on the new era of Vietnam’s petroleum industry and Idemisu Q8 committed to contribute to the development of Vietnam in the future.

IQ8 is equipped with an automated station management software system that allows card payment with many advanced features that will bring more convenience to customers.

The software system allows accurate management of fuel quantities to 0.01 liters, providing detailed reporting of transactions to customers.

Petrol stations are designed and equipped with the latest technology, including:

Two-layered fuel tank, pipeline system made of synthetic material to minimize leakage of fuel causing environmental impact.

The petrol station also provides Japanese standard services in order to bring satisfaction to customers through trained staffs.

According to Mr Hiroaki Honjo, CEO of Idemitsu Q8, the joint venture will strive to become the number one service provider in Vietnam.

Previously, Idemitsu Kosan has been conducting petroleum exploration in Vietnam since the 1990s. Recently, this investor has been involved in Nghi Son (Thanh Hoa) and a number of lubricant business activities nationwide.

After that, Kuwait Petroleum and Idemitsu have set up Idemitsu Q8 Petroleum in 2016 in order to distribute petroleum products in Vietnam.

By establishing this petroleum joint venture, Idemitsu and Kuwait will provide a stable supply for the growing market of Vietnam where demand for petroleum products is expected to grow fast in the coming time.

The ambition of this 100% FDI joint venture is to expand the petroleum retail system nationwide. After Idemisu Q8 opened in Hanoi, Idemisu Q8 will in turn appear in some provinces in the Southern of Vietnam.

Korean Investors Poured Capital into Vietnam Banks

Korean Investors Poured Capital into Vietnam Banks

  tháng 10 12, 2017

Japan-Vietnam economic cooperation will form a new value chain

From the beginning of this year, financial investors from Korea have actively sought opportunities to enter Vietnam banking market, especially the consumer finance segment. One typical example is the Lotte Card is negotiating to acquire Techcom Finance.

Recently, Techcombank has approved the contract and transaction documents related to the sale of 100% stake in Techcom Finance. The partner who is negotiating to buy back is Lotte Card – a subsidiary of the Lotte Group. If the deal is approved, Lotte Card will be the first Korean card company presenting in Vietnam, offering installment loan services, consumer credit cards…

Currently, consumer lending is an attractive market, bringing the profit of tens billion VND for financial companies in Vietnam market, of which FE Credit is outstanding. However, according to VP Bank’s General Director – the bank owns FE Credit, consumer lending has been saturated, lending cash despite good growth, but lending through cards is trend of the future. This is the direction that FE Credit is promoting.

According to the State Bank of Vietnam (SBV), although transaction through card is still modest, the trend to spend using credit card has been increasing sharply, especially in the context that the Government is promoting the non-cash payment scheme.

Lotte Card entered the Vietnam card market this time is very timely. Not to mention, the company also has the support of the customer force of the Lotte Group, which has rooted in Vietnam for more than 10 years. According to a bank expert, with the potential of Korean investors, Lotte Card will soon expand its operations in Vietnam.

Not only Lotte Card but many financial investors from Korea are continuing to seek opportunities in the financial market of Vietnam. From the beginning of the year, 3 Korean banks have cooperated with banks and insurance companies in the country.

Specifically, in July 2017, Daegu Bank signed a comprehensive cooperation with OCB. Prior to that, the Korea Development Bank (KDB) signed a comprehensive cooperation agreement with BIDV, while Woori Bank Vietnam signed a cooperation agreement with the Post Insurance Corporation (PTI).

Currently in Vietnam, there are two banks with 100% Korean capital (among 8 banks with 100% foreign capital), which are Shinhan Bank and Woori Bank. In addition, many other large banks in Korea have established branches and representative offices in Vietnam, such as KEB Hana, Industrial Bank of Korea, Kookmin, Busan, Nonghyup, Agricultural Bank of Korea. Korean banks are ranked number one among foreign investors present in the banking market of Vietnam.

With good service, low interest rates, favorable lending conditions, banks and finance companies from Korea such as Shinhan, Woori, coming here is Lotte Card… will also threaten the retail market share of many domestic banks. Even with corporate lending, if there is no reform measure, the large banks in the country will also let customers fall into the hands of the Korean banks. Not long ago, leaders of Keximbank Korea have expressed their intention to provide credit for the metro lines in Ho Chi Minh City, especially the 4b-1 metro line to Tan Son Nhat International Airport.

The wave of investment from Korea to the financial sector of Vietnam has not showing signs to stop. The experts warn that domestic banks need to strengthen the “defensive” capabilities. With the advantages of cheap capital, modern technology, understand the Vietnam market, strong customer force…, surely Korean banks will be formidable opponents of Vietnamese banks.