Potential to attract investment when iPhone can be assembled in Vietnam

iPhone is the name of the smartphone line from Apple – a large American technology corporation. The iPhone is a high-end technology product and is used by many people around the world. Currently, Apple assembles the majority of iPhones in factories located in China, and components are manufactured in India, Thailand, the US and many other places.  The setting up of iPhone manufacturing facilities in Vietnam will attract other investors to set up company in Vietnam.

Pegatron is one of three iPhone production partners for Apple that is under pressure to expand production outside of China. In addition, China’s application of Covid control measures has pushed the plan to expand production even more strongly. Accordingly, one of the expected locations to be selected is Vietnam.

Although in China the social distancing orders to control Covid-19 have been gradually removed, the labor shortage is still a serious problem. On the other hand, in the peak season, the demand for labor to increase production increases. Therefore, expanding production activities to other regions like Vietnam is a necessary solution to solve the labor shortage.

Besides, there are many different reasons for Pegatron to set up a factory in Vietnam. One of the reasons mentioned is that the stakeholders want to reduce the concentration of production in the current areas and limit the difficulty in recruiting personnel. Meanwhile, Vietnam has young and abundant human resources and production areas are planned and created more favorable conditions for foreign investors.

Moreover, Pegatron previously intended to expand the production line to Vietnam and Pegatron is building a factory in Hai Phong. In addition, many of Apple’s assembly partners also have factories in Vietnam, but no factories have yet assembled iPhones. Therefore, if Iphone is assembled in Vietnam, it will create a strong effect to attract foreign investors to invest in Vietnam and establish company in Vietnam. Accordingly, this will also be a great opportunity for the labor market in Vietnam and promote investment and development.

Currently, the Vietnamese market is gradually becoming an investment target of many large foreign investors. Therefore, besides the government’s open door policies, Vietnamese businesses and workers need to make more efforts to promote their capacity when participating in cooperation and working for large enterprises like Apple.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Set up company in Vietnam and comply with the laws

Vietnam’s economy is increasingly diversified in terms of business activities and business regulations are also constantly being improved and enhanced. Accordingly, foreign investors can freely choose the right type of business to set up company in Vietnam.  After the investors set up company in Vietnam, the continuous procedures to comply is always a matter of great interest to foreign investors.

                                    Set up company in Vietnam and comply

Why it is important to comply with the laws after the investors set up company in Vietnam?

Complying with the law after the investors set up company in Vietnam is of utmost importance for several key reasons.

Firstly, legal compliance ensures that your company operates within the boundaries of the law, avoiding any potential legal repercussions or penalties. Vietnam has specific regulations and requirements that businesses must adhere to, such as tax obligations, labour laws, environmental regulations, licensing requirements, and corporate governance standards. By following these regulations, you demonstrate your commitment to ethical business practices, maintain a positive reputation, and reduce the risk of legal disputes or regulatory actions.

Secondly, legal compliance fosters a stable and sustainable business environment. Adhering to the law helps create a level playing field for all market participants, promoting fair competition and ensuring that businesses operate on a fair and equitable basis. Compliance also enhances transparency and accountability, which can attract potential investors, partners, and customers who value companies with strong ethical practices. By establishing a reputation for legal compliance, your company is more likely to build long-term trust and maintain fruitful relationships with stakeholders.

Furthermore, compliance with the law safeguards the rights and interests of your employees. Labour laws in Vietnam provide essential protections for workers, such as fair wages, working hours, occupational safety, and social insurance. By complying with these regulations, you create a safe and equitable working environment, fostering employee satisfaction, loyalty, and productivity. Prioritizing legal compliance in Vietnam also minimizes the risk of labour disputes, ensuring harmonious and productive relationships with your workforce.

Lastly, legal compliance contributes to the overall economic development and stability of Vietnam. When businesses operate in accordance with the law, they contribute to a robust and sustainable economy. Compliance supports government initiatives, such as tax revenue generation, social welfare programs, and infrastructure development, which benefit the country as a whole. By fulfilling your legal obligations, you actively participate in the growth and progress of Vietnam’s business ecosystem.

What are steps to follow to set up company in Vietnam and comply with the laws?

With the promulgation of the enterprise law, the business setting up process has been adjusted with many favorable regulations for investors.  However, in order for a business to start up and comply in operation, the following basic steps should be noted:

The first step is to set up company in Vietnam. To take this step, the investor first needs to determine the type of business to choose to establish and provide the business name and expected information. Accordingly, the composition of the enterprise establishment dossier will be prepared according to regulations and submitted at the Business Registration Office, the Department of Planning and Investment of the place where it is expected to be headquartered. After submitting a valid application, the enterprise will be granted an enterprise registration certificate and announced the registration contents on the National Business Registration Portal.

The second step is to publish the contents of business registration. After being granted an enterprise registration certificate, an enterprise must make a public announcement on the National Business Registration Portal.

In the third step, the enterprise conducts stamp engraving. Enterprises can request to make a seal from the seal making agent. Accordingly, the enterprise actively decides on the type, quantity, form and content of the seal and is solely responsible for the use of its legal entity seal.

Fourth step is that to open a bank account in Vietnam. Currently, businesses can choose a bank to open an account for their business, to open an account, the bank requires an application form issued by the bank, a seal sample, the company’s charter, and a certificate. Business registration and related documents are required by different bank.

The fifth step is to register the tax declaration form in Vietnam. Accordingly, enterprises register for the use of e-invoices and notify the use of e-invoices to their tax authorities. Enterprises need to contact the invoice supplier to order the printing of value-added invoice books and must register self-printed invoices with tax authorities.

In the sixth step, the enterprise needs to conduct labor registration in Vietnam. Enterprises register with the Department of Labor, War Invalids and Social Affairs to declare the use of labor. Within 30 days from the date of commencement of operation, the employer must register the employer to the Labor Department (according to the prescribed form). In addition, enterprises should note that the relationship between the employer and the employee is regulated by the Labor Code and specified in the labor contract.

Seventh step is to register for social insurance in Vietnam. Enterprises register with the Social Insurance Agency to pay health insurance and social insurance for employees. Employers must fill in all information according to the form provided by social insurance, including: full name, date of birth, salary (recorded in labor contract), number of social insurance book (for employees who have been issued with a book), a certified copy of the company’s business registration certificate and a copy of each labor contract.

How a consulting firm in Vietnam could help set up company in Vietnam and stay complied?

It can be seen that in order for the investors to set up company in Vietnam, it requires investors to carry out a number of procedures and comply with many different regulations of tax, banking, labour, insurance… Therefore, besides learning about legal regulations and businesses can seek the support of professional consulting firm to set up company in Vietnam with expertise and experience in the field of business establishment to implement the process quickly and effectively.

Compliance with the law after the investors set up company in Vietnam is essential for maintaining a strong legal standing, fostering a fair and transparent business environment, protecting the rights of employees, and contributing to the sustainable development of the country’s economy. By upholding legal compliance, your company can thrive and build a solid foundation for long-term success in Vietnam while doing business in Vietnam.

Read More

President of Ireland visit Vietnam and Promote Investment

President Michael D. Higgins has begun a State visit to Vietnam to promote cooperation with Vietnam and encourage Irish businesses’s investment and setting up companies in various sectors, including trade – investment, education – training, green technology, wind energy, agriculture, health and sustainable development.

Vietnam and Ireland trade turnover has grown strongly in recent years (particularly for first 9 months of 2016, which reached USD 798 million, more than 3 times compared to the same period of 2015). Vietnam agrees to create favorable conditions and encourage enterprises Ireland to set-up company in Vietnam to promote trading, technology transfer, especially in the areas of investing in renewable (wind) energy projects, agriculture and food processing, information, communication, medical, and aviation…, especially in the context of the free Trade Agreement between Vietnam and the EU is about to be signed and implemented. The two sides also agreed to consider education, training as key areas of cooperation in the future and encourages higher education establishments of the two countries.

It is appreciated that Government of Ireland considers Vietnam as a priority partner in development cooperation policy, and that projects funded by Ireland have been effectively implemented, which contribute significantly to the Vietnam social economic development. According to President Michael D. Higgins, Ireland will soon announce the national strategy for development cooperation with Vietnam in the period 2017 – 2020 to support poverty reduction, adaptation to climate change and implementation of the sustainable development objectives.

Wishing to strengthen the friendship and mutual understanding between the people of Vietnam and Ireland, the two sides agreed to promote cultural exchanges, art and promote the role of the Vietnamese community Vietnam in Ireland, contributing to boosting bilateral cooperation in other fields.

The state visit of Ireland President will definitely open a new chapter of economic relationship between Vietnam and Ireland, laying grounds for further investment from Irish investors in various sectors, especially in wind energy investment, aviation, education, technology, medical and many other opportunities, through direct investment i.e. setting up companies, investing in projects in Vietnam in various forms.

Readmore: http://www.antconsult.vn/news/president-ireland-visit-vietnam-promote-investment.html

Read More

Vietnam Technology Startup Attracts Foreign Enterprises

 

Technology startup in Vietnam is increasingly attractive. Many foreign enterprises are interested in this area and showing their desire to set up business in Vietnam.

According to Mr Mitchell Pham, president of the New Zealand Technology Association (NZTech) – who is known to be the 1st native of Vietnam elected to become the chairman of NZTech, representing for over 400 technology enterprises New Zealand: “All trip participants were impressed with the development of science and technology in Vietnam. We are looking for specific opportunities for cooperation with Vietnam-tech enterprise”.

More information about the members of the delegation, Mr Mitchell Pham said that back to Vietnam this time, accompanied him are 6 young leaders of technology enterprises in New Zealand with a desire to learn and exchange with technology businesses in Vietnam, in order to create connection for long-term investment goals.

In terms of the favorable conditions, according to Mr Mitchell Pham, trade relations between New Zealand and Vietnam have the fastest growth rate in Southeast Asia with 120% in the period 2010 – 2015. Two-way trade of the two countries in 2015 has reached 1 billion USD.

Moreover, Vietnam is known as the country with the booming information technology market and the government is also trying to create more incentives for this sector. Meanwhile, technology businesses in New Zealand have experiences and large operating network, certainly the cooperation and investment in Vietnam will be intensified in the coming period.

According Chicilon Media, Vietnam technology market, especially Ho Chi Minh City is developing extremely powerful. Consumers is having trend to access to communication products and services via smartphones instead of traditional media such as TV, poster… Hence, this Company has strengthened their strategy focusing on channels to access information over the phone and access to a diverse range of partners such as the startup.

In parallel, the growth of mobile devices will continue in the coming years. Therefore, the approach to the users of mobile devices – who are moving to the final stage of the shopping journey and going to buy the product – becomes extremely important. Currently, marketing on mobile devices is evaluated as a simple marketing channels, rapid deployment and easy to access to customers.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/vietnam-technology-startup-attracts-foreign-enterprises.html

Read More

FDI Flows into Vietnam’s Geotechnical Engineering

The need for strong development of infrastructure in Vietnam is attracting more and more foreign businesses in the geotechnical engineering industry to come and set up business in Vietnam.

Geonia, a leading corporation in Korea specializing in the production of high quality geotextile product (the fabric with permeability, when using to line in the soil, it is capable of separating, filtering, protecting, processing strengthening and water drainage), which are expected to achieve strong revenue in Vietnam market.

According to Geonia’s Chief Representative in Vietnam, the Government of Vietnam is promoting the construction of road and port infrastructures; therefore the demand for geotextile products is very huge. Vietnam has built a number of highways and Geonia has provided this product, with revenues of more than 5 million USD in 2014 and approximately 5 million USD in 2015. In the coming years, revenue can increase; even twice when many projects in Vietnam are performed.

At the 3rd International Conference on Geotechnical took place recently in Hanoi, not just Geonia, there were nearly 50 other foreign companies participated and wanted to find out the business investment opportunities in Vietnam, through the establishment of partnerships, joint ventures and promoting the sale of geotechnical products in Vietnam market.

According to Sales Manager of ACE Geosynthetics Company (Taiwan), until the end of 2016, this Company will set up partnership with 5 enterprises in Vietnam, bringing the total number of partners to 18, although ACE Geosynthetics has not have official investment and trade activities in Vietnam. Currently, ACE Geosynthetics is the leading exporter of geothermal synthetic products in Asia.

ACE Geosynthetics could set up factory in Vietnam in the future. Last year, ACE Geosynthetics has achieved sales growth at 2 figures. In 2016 and 2017, ACE Geosynthetics also expect to achieve such results.

Meanwhile, according to Director of Sanshin Construction Corporation (Japan), Sanshin is considering setting up partnership with local business to implement a number of large infrastructure projects in Vietnam, beginning from 2017.

Since early of this year, Sanshin has partnered with Technical Link Construction Company (Vietnam) to implement a number of industrial infrastructure projects in the southern region. In the next year, these two enterprises will jointly implement a number of other similar projects.

Many construction enterprises from Japan are coming to Vietnam for the construction of infrastructure projects. Therefore, Sanshin also wants to expand its presence here to cooperate with Japanese companies.

According to construction experts, Vietnam is a country located in geographic areas with complex geological conditions; therefore the selection of foundation solutions for infrastructure is extremely important.

In the strategy to 2020, Vietnam will basically become an industrially developed towards modernization country, so the demand for infrastructure development, industrial development, urban development during this period is very large. In particular, the Government has been setting up special policies giving priority to infrastructure development in all industries and sectors. This is the opportunity for businesses and investors at home and abroad.

According to Vice President of International Society for Soil Mechanics and Geotechnical Engineering, in Vietnam, in addition to forms of public transport in major urban centers, the economic development requires faster means of transportation over long distances. Therefore, high-speed rail and highways will soon become urgent needs. This shows that the demand for geotechnical engineering will increase in the very near future. This is the investment opportunity for many businesses.

We, ANT Consulting company, support you with the service of setting up a company in Vietnam, Risk management in Vietnam, Employee background check in Vietnam… to help you shorten the implementation time.

Readmore: http://www.antconsult.vn/market-entry-service/fdi-flows-vietnams-geotechnical-engineering.html

Read More

Korean Corporation Wants to Build Racecourse in Vietnam

 

Chairman of the Korea’s Horse Racing Corporation Mr Choi Hank Soo have just had a meeting with the People’s Committee of Bac Ninh province (Vietnam) to explore opportunities for cooperation in this locality by setting up a business.

At the meeting, Mr Choi Hank Soo said that the purpose of this trip to Bac Ninh is to explore investment opportunities to build the racecourse and entertainment complex in Thuan Thanh district (Bac Ninh), with investment capital in the first phase reaches 500 million USD.

When the project goes into operation, it will form the kind of attractive sport and entertainment services for the community, creating jobs for 5,000 – 10,000 labors, making great contribution to the budget and contributing to the economic and social development of Bac Ninh province.

According to Chairman of Bac Ninh province, this highly feasible project has large-scale investment, under conditional business lines that require the approval of Vietnam Prime Minister. Provincial Leaders recommended the Korea Corporation to coordinate closely with the concerned departments to complete the procedures according to Vietnam law, submitting to the ministries and Prime Minister for approval.

Chairman of Bac Ninh province also committed that within 10 working days from the time receiving the approval of Prime Minister, this province will complete the legal formalities for the project to be implemented soon and put into operation in an effective way.

Reportedly, a project to build 27-hole golf course is being implemented in Thuan Thanh district (Bac Ninh).

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/korean-corporation-wants-build-racecourse-vietnam.html

Read More

Thang Long II Industrial Zone (Under Pho Noi B Industrial Zone)

 

Geographical location:

Located adjacent to Highway 5 (Hanoi – Hai Phong); 30 km from Hanoi, 70k m from Hai Phong port, 110km from Quang Ninh deep-water port.

Scale of land area:

345.2 hectares

In which: Stage 1: 219.6 hectares, 154 hectares of land area for rent

Stage 2: 125.6 hectares, 101 hectares of land area for rent.

Industrial zone technical infrastructure:

Stage 1:

Thang Long Industrial Zone II has completed the work of compensation, site clearance the whole land area of the industrial zone and has completed construction of technical infrastructure on an area of 154.4 hectares.

The system of internal road in the industrial zone, water supply and drainage systems, power supply, firefighting system, water supply plant with capacity of 4,500 m3/day and night and wastewater treatment plant with capacity of 3,000 m3/day and night have been completed and put into operation. Investors are actively investing in building infrastructure for the remaining part of the 65,3 hectares area.

Phase 2: In 2011, the Government has agreed to supplement Thang Long Industrial Zone II to the list of industrial zones that are expected to expand in 2015, with an area of 125.6 hectares. So far, investors are carrying out of compensation, site clearance and ground leveling to implement phase 2 according to the registered progress.

The sector attracting investment project:

Projects in the field of manufacturing of electronic products and precision engineering; the electronic engineering industry, transport machinery, light industry; industrial gas production.

Investment project attraction status:

By the end of 2012, industrial zone has received over 36 projects from Japan with a total investment of 1,040 million USD, including a number of projects with large-scale capital: the projects of Hoya Glass disk Company, Hamaden Company, Toyota, Kyocera Vietnam Co., Ltd… Currently, the total land area of Phase 1 is 106 hectares with occupancy rate of 70% of the land area which is capable for rent in phase 1 (106/154 hectares). In total registered projects, there are 21 projects went into operation, creating jobs for about 4,000 workers.

Owner of Thang Long II Industrial Zone:

Thang Long II Industrial Zone Co., Ltd

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/thang-long-industrial-zone-ii-pho-noi-b-industrial-zone.html

Read More

Hong Kong Investment Funds Investing in Real Estate, Banking of Vietnam

 

In the talks with Vietnam Prime Minister Nguyen Xuan Phuc on September 14th 2016, representatives of corporations and large investment funds from Hong Kong have expressed their interest in investment opportunities in Vietnam.

Talking to Hong Kong enterprises, Government leaders said that Vietnam has amended the Law on Investment towards more open and transparent, creating stable investment environment, ensuring maximum property rights of investors and enterprises; conducting strong reform of administrative procedures in areas such as taxes, electronic customs clearance…

In the process of development, Vietnam hopes that foreign investors will invest in areas such as road transport, railway, waterway and other infrastructure. The Vietnam Prime Minister also noted that investors in the process of production and business should pay attention to ensure the livelihood and skills training of employees; compliance with laws and regulations regarding environment protection in Vietnam.

Highly appreciated the solutions and policies of Vietnam Government, Dr. Jonathan Choi – Sunwah Group Chairman, who is also a permanent Honorary President of China Chamber of Commerce in Hong Kong said that investors in Hong Kong are very interested in the stable investment environment and respecting the development of private sector in Vietnam. The investment sectors that are interested by Hong Kong’s large enterprises and investment funds are energy, healthcare, real estate, finance and banking.

Speaking in front of 300 investors attending the Hong Kong – Vietnam Business & Investment Forum, Prime Minister Nguyen Xuan Phuc said that Vietnam will become one of the largest trading partners of China in ASEAN. In 2016, the bilateral trade turnover between the two countries could reach 100 billion USD.

Also at the forum, Head of Hong Kong Special Administrative Region stated that the Government here will continue to open the door and strongly supporting Vietnam enterprises to penetrate the Hong Kong and Chinese domestic markets.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/hong-kong-investment-funds-investing-real-estate-banking-vietnam.html

Read More

16 Billion USD of FDI Capital into Vietnam

 

According to the data from the Foreign Investment Department, total foreign direct investment (FDI) in the first 9 months of 2016 reached 16.43 billion USD, equivalent to 95.8% compared to the same period of 2015.

As of September 20th 2016, there were 1,820 new projects were granted the investment registration certificates with total registered capital of 11.165 billion USD, increased by 1.1% from the same period in 2015.

Along with that, there are 851 projects registered to adjust capital, with total additional capital reached 5.265 billion USD, equivalent to 86.1% over the same period in 2015.

Meanwhile, till September 20th 2016, it is estimated that the FDI projects have disbursed 11.02 billion USD, increased by 12.4% over the same period in 2015.

Also according to the report of the Foreign Investment Department, in the first 9 months of 2016, foreign investors have invested in 19 sectors, in which the processing and manufacturing sectors are the sectors that attracting more attention of foreign investors with 767 new investment projects and 608 projects register to adjust capital, the total new and additional capital reached 12.15 billion USD, accounting for 73.9% of total registered investment capital within 9 months.

The real estate business sector ranks the 2nd with 34 new projects with the total new and additional capital reached 1 billion USD, accounting for 6.1% of total registered capital. Fields of professional activities, science and technology rank the 3rd with 649 million USD, accounting for 3.9% of total investment capital.

In the first 9 months of 2016, there are 65 countries and territories have investment projects in Vietnam. In particular, Korean investors led with a total investment capital reached 5.58 billion USD, accounting for 34% of total investment capital in Vietnam.

Singapore ranked 2nd with total investment capital reached 1.84 billion USD, accounting for 11.2% of total registered capital. Japan ranked 3rd with total investment capital reached 1.7 billion USD, accounting for 10.3% of total investment capital.

We, ANT Consulting company, support you with the service of setting up a company in Vietnam, Risk management in Vietnam, Employee background check in Vietnam… to help you shorten the implementation time.

Readmore: http://www.antconsult.vn/news/16-billion-usd-fdi-capital-vietnam.html

Read More

French President Visits Vietnam

 

On September 5th 2016, Mr François Hollande – President of the Republic of France start visiting Vietnam at the invitation of the President of Vietnam – Mr Tran Dai Quang.

During the visit, the two parties will check, review and concretize the connotations towards promoting cooperation and further strengthen political relations, exchanging high-level visits on both bilateral and multilateral levels. Moreover, both parties will review and further improve the efficiency of cooperation mechanisms between the two countries.

The visit is also an opportunity for both sides to promote the economic cooperation in the fields of infrastructure, climate change combating, science – technology, health, agriculture… This is also an opportunity for France and Vietnam together to discuss international issues. The visit of President François Hollande will last for 3 days.

Readmore: http://www.antconsult.vn/news/french-president-visits-vietnam.html

Read More

Forbes: Vietnam is Becoming Economic Tiger of Asia

 

The website of Forbes has recently published the article of author Ed Fuller with the title “Vietnam is ready to become the next economic tiger of Asia.”

Like South Korea, Taiwan and China, Vietnam is having many base advantages.

According to the economic report till August of 2016, foreign direct investment (FDI) into Vietnam has reached a record level in 2015 and this year could be higher. Only the first half of 2016, FDI into Vietnam reached 11.3 billion USD, increased by 105% over the same period last year although in the context of the global economy is moving very slowly.

Since 1990, the average economic growth of Vietnam reached 7% per year, just behind China. This growth has brought Vietnam from a poor country into the country with average income level of the world. If Vietnam continues to keep the growth rate of 7% per years in the next 10 years, the Vietnam economy will grow just like China and many other economic tigers in Asia.

Vietnam now has more than 92 million people, mostly young (average age is 30.7 years old) and skilled. Moreover, the spending from the national budget for education is around 6.3% of GDP, higher than the average of most low and middle income countries. In the global rankings, 15-year-old children of Vietnam have regularly defeated children in the United States and Britain in math and science competitions. This is an advantage for the factory in Vietnam that requiring workers to have the ability to operate complicated machinery.

Another positive point is the advantage of geographical location, while Vietnam has the border with China, becoming a competitive advantage compared to other countries when Vietnam is closer to the production centers in Southern China with the transportation system connected by road and sea. Furthermore, the rising price of labor wages in China makes Vietnam becoming alternative destination for businesses to move their factory to locations where costs are lower.

Simultaneously, Vietnam is a member of various trade agreements. According to The Economist, Vietnam will be the greatest beneficiary of the Trans-Pacific Partnership Agreement (TPP – an agreement of 12 countries including the US and Japan). Moreover, Vietnam also signed other trade agreements with the EU and South Korea.

Besides, nowadays, tourism is playing an increasingly important role in the development of Vietnam. According to the World Travel and Tourism Council (WTTC), in 2015, tourism has contributed more than 16 billion USD to the Vietnam’s economy, equivalent to about 9.3% of GDP.

With the goal of attracting 55 million tourists (both domestic and foreign) each year until 2030, Vietnam has announced the visa exemption policy for visitors from 22 countries in Europe and Asia, including the UK, France, Germany, Russia and 9 ASEAN member countries.

Also, a lot of infrastructure and major transport projects have been planned to implement in the next 15 years, including 7 new tourism development areas, the Hai Phong, Quang Ninh waterways and the railway connecting to China’s Yunnan province. Simultaneously, the upgrading of infrastructure in the area is expected to go further, thanks to a series of bilateral agreements that have been signed with Laos, Cambodia and Myanmar to realize joint tourism initiatives.

Analysts have predicted that the supply of hotel rooms will increase in the next 3 years. The CBRE real estate consulting firm has forecasted that the number of hotel rooms in Ho Chi Minh City and Hanoi will grow by 8% per year until 2018. The World Travel and Tourism Council (WTTC) also forecasted that the growth rate of the industry will be 6.2% annually over the next decade, creating more jobs and increasing tourism directly of about 2% per year until 2025 .

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/forbes-vietnam-becoming-economic-tiger-asia.html

Read More

Why Binh Duong – Highlight of Attracting FDI

Binh Duong is a potential destination in Vietnam for foreign corporation to set-up business and manufacturing facility.

According to the latest data of the Department of Planning and Investment of Binh Duong Province, in the first 11 months of 2015, this province has attracted 1.823 billion USD FDI capitals, reaching 182% of the annual plan, increase by 19% over the same period in 2014. With this result, Binh Duong occupies the 4th position in the country in attracting FDI and continues to assert as a “hot address” in attracting investment in the Southern key economic zone.

Most recently, in November 2015, Binh Duong province has granted the investment registration certificate for the project Kocham Tower with a total investment of 2 million USD to build the office building, culture school, Korean cuisine restaurant… This project comes from the idea of Association of Korean businesses in Binh Duong in which they want to have working place near the company’s factory and the provincial government then they can proposed opinions to tackle the problem.

In the spirit of creating the most favorable conditions for business and investors, the provincial authorities have flexibility in approving the project. The project was granted an area of 1,500 m2 in Binh Duong New City and Korean businesses has also promised to quickly organize funds and complete the project in the shortest time.

In the period 2010 – 2015, FDI attraction of Binh Duong has developed rapidly, with an additional of 879 FDI projects with a total investment of over 8 billion USD. So far, in Binh Duong, there are 2567 FDI projects with total registered capital of 22.244 billion USD from 40 countries and territories. In particular, investment in industrial parks is 1,523 projects with a total investment of 13.972 billion USD, accounting for 62.8% of total FDI capital in the province.

In recent years, Binh Duong province has actively building programs, promotion, investment attraction; timely solution to remove difficulties and obstacles in the process of implementing the project has created confidence for investors; focusing resources on promoting the construction of infrastructure, especially transport infrastructure; improve the investment environment, implementation of administrative reform to enhance the competitiveness of the province.

Binh Duong has 2 billion-USD-project, all of them are in the field of real estate. About attracting FDI, Binh Duong encourages investment in fields as high-tech, supporting industry, attracting large-scale projects, joining the global production chain.

Immediately before and after the TPP was signed, there was a wave of FDI enterprises coming to Binh Duong seeking investment opportunities and quickly making decisions.

According to information from leaders of Polytex Far Eastern VN (Taiwan), this enterprise is licensed for their 274 million USD project at Bau Bang Industrial Zone in 2015. They admitted to set-up factory in Vietnam to catch the opportunities from TPP and implement the trend to move factories from China, Taiwan to Vietnam.

The Vietnam market is very potential, especially the opportunities after joining the TPP. Therefore, in the future, many foreign enterprises will continue to expand their scale.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/binh-duong-highlight-of-attracting-fdi.html

Read More

Foreign Capital Poured Strongly into Ho Chi Minh City

It has been reported the foreign direct investment (FDI) is strong up to the end of August 2015. The trend of foreign investors relocating manufacturing site to Vietnam, build factory, and make direct investment through setting up company or business venture has been progressively realized thanks to Vietnam’s policy welcoming FDI and the uncertainties of China.

There are 249 newly registered projects in the form of 100% foreign investment capital, reaching USD 744 million; 78 joint venture projects reaching USD 1,573.6 million.

In terms of investment sector, Vietnam real estate sector topped in the capital pouring in Ho Chi Minh City of Vietnam with 5 projects and the capital reached USD 1,428.4 million, accounting for 61.6% of total newly registered capital, 41 industrial projects with USD 585.7 million (25.3%). In the third place is the financial and service sector with 90 projects and USD 116 million investment capital (5%); education and training with 8 projects at USD 71.3 million investment capital (3.1%); 53 information and communication projects at 20 million USD investment capital; 17 transport and warehouse projects…

The demographic of investors are diverse. There are 35 countries and territories having investment projects in Ho Chi Minh City. In particular, United Kingdom following the recent visit of British Prime Minister has 5 projects with investment capital of USD 1,201.4 million (accounting for 51.8% of total investment in Ho Chi Minh City); British Virgin Islands have 7 projects, at USD 306.5 million investment capital (13.2%); South Korea with 71 projects, at USD 232.8 million investment capital (10%); Singapore has 52 projects with USD 107.6 million investment capital (4.6%); Japan has 57 projects, investment capital of 29.9 million USD; Hong Kong has 13 projects, investment capital of 47.8 million USD (2.1%).

Readmore: http://www.antconsult.vn/news/foreign-capital-poured-strongly-into-ho-chi-minh-city.html

Read More

WSJ: “Made in Vietnam” Goods will Soon Popular Globally

Numerous foreign investors relocating factorties to Long An (Vietnam) to set up business and take advantage of young and low cost workforce.

This province has a dozen industrial zones. As of May 2015, they have attracted 3.67 billion USD foreign investments, 40% of which is poured into textiles sector.

The economists said that this process could accelerate if the Trans-Pacific Partnership agreement (TPP) is agreed. This agreement will reduce import tariffs on many goods exchanged between member states, mainly to benefit the developing country like Vietnam or Malaysia – countries where growth rate depends heavily on exports.

Wages soared and labor shortages in China are making Vietnam become more attractive. Last year, FDI into Vietnam have reached 12.4 billion USD, increase by nearly 25% compared to 2009. One of the largest investors as Samsung Electronics of South Korea whom have plan to double investment in electronics manufacturing in Vietnam.

If TPP takes effect, Vietnam economy will be the biggest beneficiaries because this country has more opportunities to access the large consumer market. TPP will give member countries privileged access to the US and Japan.

The Government of Vietnam is estimated that TPP could bring the economy 33.5 billion USD over the next decade, equivalent to a fifth of current GDP. The export turnover of the main industries, such as textiles and footwear, will increase by 46% to 165 billion USD in 2025 due to tax-free imports into other countries.

In Long An, the 3-storey factory of Avery Dennison is preparing for the influx of orders on clothing labels and price tags. Dozens of concrete houses for workers are also being built – a signal that many other manufacturers are also coming here.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Readmore: http://www.antconsult.vn/news/industry/manufacturing/wsj-made-in-vietnam-goods-will-soon-popular-globally.html

Read More

Vietnam Is the Focus of Foreign Investors

 

With favorable conditions in macroeconomic, political and social, Vietnam is a potential destination for setting up company and conduct the M&A activity.

In Vietnam, the growth of the retail market and the entry of international brands, while the average income of consumers is increasing along with stable economic conditions are creating motivation for retail market. In addition, e-commerce sector is growing and accounts for a large part of total retail sales, although traditional forms of shopping still being preferred by consumers.

Moreover, the liberalization of the retail market in 2009 created favorable condition for foreign brands to join and domestic brands are constantly expanding in order to maintain market presence. The most developing sectors of the retail segment are food & beverage (F&B) and consumer products.

Vietnam Retail Market

Prospect for the Asian retail market is very positive, the average growth rate in retail sales is 8.5% in the last 5 years. The number of tourist increases is promoting retail activity in the shopping venues with a prime and convenient location. Although the development of e-commerce in the region is now very noticeable, but the traditional forms of shopping still has an important position in the market. The store owner will need to focus on improving the shopping environment and concerning about the customer experience in order to increase competitiveness.

According to Cushman & Wakefield, in the next 5 to 7 years, approximately 1.5 million m2 of retail floor space will enter the Ho Chi Minh City market of retail space, bringing the total number of retail area to nearly 2.5 million m2. The retail market will be busy, especially in the affordable and intermediate segments. The powerful foreign retail corporations will consider Vietnam as potential market in the region, demonstrating that in the period 2014 – 2015, the retail and consumer goods are the mainstream of M&A activity in the world, accounting for 36% of the total value of M&A activity in Vietnam.

In addition, Vietnam ranked 32nd in the list of nations that have the shopping streets with the most expensive rent cost in the world, in the context of Vietnam is preparing to join a series of free trade agreements such as AEC and TPP, then this will cause domestic retailers to face with many difficulties because rent cost plays the 2nd important role (after the location) in business strategy. When foreign retailers have strong financial resources, they can afford to hire premises with the most favorable location in the market.

Vietnam Tourism Real Estate Market

Many promient investors have visited Vietnam to explore the market potential. In the real estate segment, Kevin Green, one of British’s leading millionaires has just come to Vietnam to experience the market. He interested in tourism real estate and especially Sapa when the Hanoi – Lao Cai highway has completed. Moreover, the Fansipan cable car when completed will attract huge number of tourists to come here. Convenient transportation is a golden opportunity for tourism real estate.

Sapa is currently attracting around 2.5 million visitors. This figure is expected to rise to 5 million in 2020 due to infrastructure connections between Sapa and other areas are increasingly improved.

When talking about investment opportunities in tourism real estate in Sapa, Kevin Green said that Sapa has a lot of potentials for investment. He interested in the resort project “Sapa Jade Hill”, which is currently being developed. He also works with investors to be able to offer this product to abroad market, while completing the procedure to purchase Sapa Jade Hill villa for long term investment.

Reportedly, Sapa Jade Hill is a key project in Sapa, developed by Truong Giang Sapa and by Dai Hung Investment and International Trade JSC (GBI Land) with a total investment of nearly 2,000 billion USD. This project has completed Phase 1 with 19 service villas, which was sold out and handed over the red book to customer.

In addition, in the Property Expo Conference was held in Hanoi, Kevin Green and enrichment experts have shown a huge shift of capital flow from foreign companies, factories to Vietnam, then this is the most ideal place for real estate investment within the next 5 -10 years. The employment index is an indicator of the increase in value of real estate, as the number of workers in the industrial zone of Vietnam is on the rise.

Readmore: http://www.antconsult.vn/set-up-business-venture-in-vietnam/vietnam-is-the-focus-of-foreign-investors.html

Read More

Signing of TPP in 2016 Will Promote FDI into Vietnam

The investment flow will be strong into Vietnam for setting up company, factory once the commitments in the TPP agreement takes effect.

The Trans-Pacific Partnership (TPP) agreement will be signed on February 4th 2016 in New Zealand. In order to capture the opportunities that it will bring, many foreign companies have invested in Vietnam.

The parties have also agreed to a term of 2 years for national parliaments to ratify the agreement. Thus, the TPP can be effective in 2018.

12 members of TPP include: US, Japan, Vietnam, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Canada, Peru and Singapore. The current country members of TPP accounted for 40% of the world GDP and 26% of global trade merchandise. The agreement will not be effective without the participation of both the US and Japan.

To this point, it is probably not debatable about the opportunities that the TPP brings to Vietnam, especially in trade development and investment attraction. When the trade is opened thanks to the commitment to eliminate tariff barriers between the 12 country members, it will impact to investment, not only in internal, but also from other investment markets.

Manufacturing Companies Set up Business in Vietnam

HanesBrands (NYSE: HBI), US’s leading textile corporation has recently announced raising total investment in Vietnam market to nearly 55 million USD, increase by more than 11 million USD compared to 2014. After 8 years of operation in Vietnam, they have 3 factories located in Hung Yen and Hue.

HanesBrands is not the only business that can see these opportunities in Vietnam when the TPP was signed. Many large enterprises of textile industry have decided to expand investment in Vietnam to capture the opportunities brought by the TPP.

And it is not only the textile industry, there are a lot of examples to prove that foreign investors are looking at Vietnam as a tremendous opportunity to invest in. The appearance of high-tech giants such as Samsung, LG, Microsoft, Jabil… with investment capital of up to tens of billions USD, of which only the capital of Samsung has reached over 14 billion USD is the clearest evidence. The presence and moreover the expansion of the foreign retail giants such as Aeon, Auchan, Metro Cash & Carry, Big C, Lotte… are also the typical examples. More than 290 billion USD of FDI capital has been committed to pour into Vietnam during the past years.

According to Nikkei news agency, Pou Chen Company, which is the world’s largest footwear manufacturer, specializing in providing goods for two famous brands that are Nike, Adidas and many other major brands, are planning to move their factories to Vietnam to take advantage of TPP.

By the end of September 2015, the number of footwear manufacturing by Pou Chen in Vietnam accounted for 42%, increase by 39% compared to the same period in 2014. The total annual production of Pou Chen (headquartered in Taiwan) is more than 300 million pairs of footwear, sales from footwear and garment accounted for 75% of total revenues of the company.

According to the representative of Pou Chen, the company has gradually shifted production bases to Vietnam since 2012 as the labor costs in China are rising rapidly in recent years. They see the long-term stability in Vietnam in both economic and politics.

Pou Chen is not the only company that moving production bases to Vietnam. Currently, many Taiwanese companies are actively investing in Vietnam, including competitor of Pou Chen that is Feng Tay (over 50% of Feng Tay’s production is concentrated in Vietnam).

Besides, Far Eastern New Century Company (FENC) has also planned to pour 307 million USD to a new factory in Vietnam in June 2015 and is expected to start production in the second half of 2016.

It is clear that footwear suppliers are actively moving their factories to Vietnam to capture the opportunities that the TPP will bring. Once the TPP is approved, the goods from the members in TPP export to the US market will enjoy preferential tariffs. As a result, the famous international brands like Nike and Adidas will prefer Vietnam as the location of their factory.

In this context, the TPP would be a “catalyst” for this capital flow to flow stronger. The catalyst is not just come from the opportunity of an open trade market, but also from the commitments of the TPP members relating to investment.

According to Mr. Hoang Manh Phuong, Deputy Director of Legal Affairs (Ministry of Planning and Investment) – the one who participating in the TPP’s negotiating session related to investment – said that there are a lot of commitments bringing big advantages for foreign investors in Vietnam. TPP allows investors to invest and do business in all sectors, except the one that is still in the reserved category.

Readmore: http://www.antconsult.vn/set-up-business-venture-in-vietnam/signing-of-tpp-in-2016-will-promote-fdi-into-vietnam.html

Read More

M&A in Vietnam: Strong Flow from Thailand

 

It is expected to have a strong capital flow from Thailand to Vietnam in the coming time to through M&A activities.

According to a research, the main trend of the M&A market Vietnam in the period of 2015 – 2016 and subsequent years have been focusing on some key sectors: retail, consumer goods, real estate, finance – banking. Notably, in the coming time, investors from Thailand will become “dual key” in its role as the acquisition of the project, and incorporation in Vietnam.

Not until now, it has been realized that Thai is serious rival in the M&A market. From the period of 2010 – 2011 till now, the Thai people through their corporations like Charoen Pokphand, TCC Group, PTT, Siam Cement (SCG), BJC, Central Group… by the way of M&A or direct investment have quietly entered in Vietnam’s retailing, building materials, gas sectors.

M&A Trend from Thai Investors in Vietnam

In 2012, SCG has spent 240 million USD to acquire 85% stake in Prime Group. Currently, SCG has nearly 20 subsidiaries and associated companies in Vietnam. As of June 30th 2015, the total asset value of SCG in Vietnam reached approximately 716 million USD… In the next 5 years, SCG will spend 6-8 billion USD for countries in the region, in which a large part will be poured into Vietnam.

At the end of 2014, Berli Jucker Pcl (BJC) announced to spend 879 million USD to acquire Metro Cash & Carry Vietnam. Earlier, in 2013, BJC has acquired 60 stores of Family Mart and buy 65% ​​stake in Thai An Group, who owns a network of 200 distributors, 2,500 wholesalers and thousands of retailers in traditional markets.

In 2014, F&N Dairy Investments Pte Ltd (F&N), a subsidiary of BJC bought shares of Vinamilk, raising the percentage of ownership in Vinamilk to 11.04%, reaching a value of about 591 million USD. The owner of BJC also offered to hold 40% stake in Sabeco and pricing SABECO at approximately 2.4 billion USD.

In addition, the Central Group through its subsidiaries – Power Buy bought 49% stake in NKT technology development and new solution JSC – the owner of Nguyen Kim Trading Company, which was priced at 200 million USD.

According to a statistics from HSBC Thailand, the Thai companies were involved in at least 377 projects in Vietnam with a total registered capital of 6.7 billion USD, becoming the 10th largest investors in Vietnam market and their ranking are improved quickly. In particular, Vietnam and Thailand have set a target of raising bilateral trade to 15 billion USD by 2020.

The M&A trend of Thai corporations are clearly showed in 2014 – 2015 with the typical deals of PowerBuy – Nguyen Kim and BJC – Metro. Through M&A activities in the retail sector, Thai investors want to reach and grasp the distribution market of Vietnam.

M&A in Retail, Consumer Goods, and Distribution Services in Vietnam

The areas interested by Thai investors from 2011 to now are the retail and consumer goods sectors. The reason is Vietnam is a vast potential market for the retail sector and consumers goods. According to the research from Statista (Germany), Vietnam’s retail market sales could reach 100 billion USD/year in 2016.

The wave of M&A from Thai investors to acquire retail and consumer goods sector are to capture the opportunities when Vietnam participated in the agreements of free trade, as well as the formation of the ASEAN Economic Community (AEC) at the end of 2015.

Thai investors are increasingly buying supermarket chains, making every effort to catch the opportunities brought by AEC when Thailand goods imported into Vietnam with the tax rate equal 0%.

According to CEO of HSBC in Vietnam, in the next 5 years, major corporations of Thailand will turn Vietnam into a production center for re-export of Thai products to other countries because Vietnam has a cheap and skilled labor force.

It can be seen that Vietnam has welcomed a strong capital flow coming from large corporations of Thailand with fast and powerful acquisition speed. Thai investors show no sign of stopage. In addition to the retail and consumer goods sectors, some other sectors are also getting the attention of investors from Thailand as oil and gas, infrastructure, transportation, agriculture…

These signals indicate that Vietnam is still an attractive destination for the capital inflow from Thailand. In the short term, M&A market will continue to witness the M&A activities that Thai investors continued to act as the purchaser. M&A due diligence assessment on Vietnam targets will be needed to ensure the success post-merger intergration.

Readmore: http://www.antconsult.vn/foreign-investor-in-vietnam/ma-in-vietnam-strong-flow-from-thailand.html

Read More