Improving Business Environment and Enhancing National Competitiveness

 

After four years of implementation of resolutions 19-2016/NQ-CP, 19-2017/NQ-CP, 19-2018/NQ-CP of the Government, business environment and competitiveness of Vietnam have continuously improved.

According to the research, in 2017, the business environment, enhance competitiveness has achieved positive results; National competitiveness increased 5 levels compared to 2016 (increased from 60/138 to 55/137); business environment increased 14 levels (increased from 82/190 to 68/190 economy); Innovative innovation improved 12 levels, reaching the rank of 47/127 economy. These are the highest rankings that Vietnam has achieved so far.

Continuing to follow the assessment objects of World Bank’s business environment, the enhance competitiveness of the World Economic Forum, World Intellectual Property Organization, etc., to achieve the targets set for 2020, the quality of a business environment of Vietnam is on par with the average of ASEAN 4.

The target for 2018 will improve the business environment index from 8 to 18, which focuses on improving business start-up and dispute resolution. Complete the abolition, simplification of investment conditions, business. Limit the specialized inspection according to goods and products; strongly transform the way state management from pre-inspection to post-inspection. Improve the application of information technology in administrative procedures and online services. Enhance the competitiveness of the tourism industry, logistic services to facilitate and reduce business costs.

In order to achieve the above objectives, resolution 19/2018/NQ-CP provides basic solutions and assigned tasks to each agency and coordinated implementation to achieve the targets set in 2018, bringing Vietnam’s ranking to the top of the charts. Accordingly, ministries and agencies shall develop action plans, define specific objectives, tasks and responsibilities, monitor and evaluate them. Carrying out reform of administrative procedures and application of information technology in public services; to carry out the inspection, examination and audit in a uniform manner, avoid overlapping, affecting the operation of enterprises, create a competitive environment, promote transparency and market development of testing and inspection services, inspection, certification.

Specific mandates for ministries: Ministry of Planning and Investment (focusing on activities related to enterprises); Ministry of Justice (elaborate a plan on improving the law on contracts and civil dispute resolution by non-court proceedings); Ministry of Finance (dealing with tax issues, improving tax index, business start-up index); Ministry of Transport (offering solutions, reducing costs, developing logistics infrastructure) and other ministries such as the Ministry of Culture, Sports and Tourism; Ministry of Public Security; Ministry of Industry and Trade and other ministries such as Ministry of Science and Technology, Ministry of Information and Communication; Ministry of Natural Resources and Environment; Ministry of Health, Ministry of Construction; Ministry of Agriculture and Rural Development … to coordinate to achieve the objectives set out in the resolution.

These are the policies which Vietnam government has been focusing on and will legalize in regulations to implement in practice.

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.

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4 Types of IT Services Have to Be Licensed

 According to the draft decree on information technology (IT) services that the Ministry of Information and Communication (MIC) is conducting the community consultation, among 54 types of IT services, there will be 4 types of IT services have to be licensed by the MIC to be allowed to provide services.

4 types of IT services include:

port service to search for information online;

refurbishing, recycling and renewing series of hardware products and electronic products;

data center service;

cloud computing service.

All the 4 types of IT services have to meet certain conditions such as: full capable of finance, human resources, technical facilities serving for the establishment, management and operation of the system of equipment, hardware, software, technical infrastructure, machinery to meet the requirement and appropriate to the type and scale of IT services that are applying for permit; have plan for providing service, have evaluation of the impact of provision of service, in accordance with the type of services that are applying for permit.

In order to provide these 4 types of service, it needs to have the commitment of the heads of organization and enterprise to ensure quality of service, ensuring the rights of service users, compliance with the provisions of the relating Decree and laws.

In addition, each type of service must also meet specific additional conditions.

For the port service to search for information online, the servers and related technical systems serving for the service provider in Vietnam market must be located on the territory of Vietnam; have the ability to detect, alert and prevent any access to unlawful information; have suitable technical plans that consistent with the technical conditions, technical regulations and applicable mandatory standards.

For the service to refurbishing, recycling and renewing series of hardware products and electronic products, there must be solutions and means of ensuring safety and occupational health; have assessment report on the environmental impact of the provision of service; have plans and technical solutions, process technology or destruction of waste and scrap arising during operation, in line with the regulations of Vietnam law on environmental protection.

Meanwhile, for data center service, the entire equipment system used to provide services for Vietnam market must be located in the territory of Vietnam; the technical facilities must meet the minimum requirements of the technical assurance regulating by MIC; have contingency plans to maintain safe and continuity operations, troubleshooting when problems happening; take measures to ensure the safety, privacy, ensure confidentiality of information and customer data; commit to announce the achieved technical assurance level of the data center; commit to address the risks and compensation can occur during operation; applied safety management and information security system according to the standard TCVN ISO/IEC 27001:2009 or ISO/IEC 27001:2005.

Lastly, for the cloud computing service, the entire equipment system used to provide services for Vietnam market must be located in the territory of Vietnam; fully meet the technical requirements, the hardware, software and network infrastructures, requiring the application of standards and technical regulations for the cloud computing model as prescribed, have contingency plans to maintain safe and continuity operations, troubleshooting when problems happening; take measures to ensure the safety, privacy, ensure confidentiality of information and customer data; ensuring quality of service; applied safety management and information security system according to the standard TCVN ISO/IEC 27001:2009 or ISO/IEC 27001:2005; commit to address the risks and compensation can occur during operation.

Among the 50 remaining services, there are 3 services that must have practicing certificate (consulting services on IT solutions, consulting services on IT projects, consulting services on IT management), the remaining IT services only need to register to provide the service.

Expected Catalog Services will be 9 groups of 54 types of services:

Group IT consultancy services including: Consulting services for IT solutions; Consulting services for IT projects; Consulting services for IT management; Consulting services using ICT; Services IT market research.

It is expected that the category of IT services will be divided into 9 groups with 54 types of services:

Group of consulting services on IT including: Consulting services on IT solutions; Consulting services on IT projects; Consulting services on IT management; Consulting services on using IT; Services on IT market research.

Group of services to support production, trading and distribution of hardware and electronics: production support services, processing of hardware and electronics; Services to refurbishing, recycling, and renewing the hardware products and electronic in large scale; Services to researching and developing of hardware and electronics; Services to distributing of hardware products and electronics; Services on guarantee and maintenance of hardware and electronics.

Group of services to support production, trading and distribution of software: services to support production and packaging of software; Services to processing and producing software on orders; Services to editing, supplementing features and localizing software; Services to supply and distributing of software copyrights; Services to export, import of software; Services to storage, support online software download; Services to research and develop software, software technology transfer; Services to install, maintain and upgrade software.

Group of services on digital information content: Services to import, update, process information and digital data; Services to digitized documents, publications, copyrighted works; Services to supply, distribute digital information content via independent storage media; Services to supply, distribute digital information content via network environment; Information searching portal service on the internet; Services allowing users to create, upload and store information, data on the network environment (not including social network service); Services to supply game online; Services to process and support the production of digital content; Services to research and develop digital content products; Social networking services; Services to manage, operate website and electronic portal; Other digital content services.

Group of non-formal IT training services: IT technical training services; IT management training services; IT consulting professional training services; Other IT training services.

Group of IT resources rental and sharing services: Data center service; Cloud computing service; Hardware, software or database rental services; IT personnel rental service; Services to lease and sell advertising space on the network environment.

Group of information safety and security services: Service to distribute and deploy solutions, Safe product and information security; Services to design, develop, build solutions, safe product and information security; Services to maintain, operate, safety ensuring and information security; Services to inspect, assess safety and information security; Services to authenticate digital signature and electronic signature.

Group of other IT services: IT system integration service; Services to manage, operate and maintain IT system; IT product testing service; Other IT services regulated by MIC.

Group of IT-based services: Business process outsourcing by IT (BPO); Customer support center, online response via the network environment (Contact Center); E-commerce service; Online training services; Healthcare service remotely on the network environment; Other IT-based services.

Readmore: http://www.antconsult.vn/news/4-types-of-it-services-have-to-be-licensed.html

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Vietnam attracts Korean investment in research and development | ANT Consulting

 In recent times, the investment shift out of China is being carried out by many international investors. Vietnam is a country that has enough factors to receive investment shift, especially in the manufacturing sector with low-cost labor and low expenses. However, at present, Vietnam has changed its method of attracting FDI, instead of taking advantage of low expenses and low-cost labor, Vietnam now aims to take advantage of highly skilled workers and many incentives in research and development activities.

Recently, many Korean investors have plans to change production lines, invest in research and development (R&D) company in Vietnam. Previously, Korean businesses mainly invested in industries such as apparel, bags, and footwear, however, recently many Korean investors have made investments in industries such as high electronics, information technology, automotive and construction equipment, distribution and service industries.

Currently, Korea is the leading country in the list of countries investing in Vietnam. Previously, a joint venture between Korean and Vietnamese businesses proposed to the Dong Nai province government to invest and build a Vietnam-Korea Hi-Tech Park with an area of ​​300 hectares, total investment capital of 150 million USD. The project aims to attract high-tech enterprises from Korea as well as other developed countries to set up company in Dong Nai in order to create quality product values ​​in the fields that shape the industrial revolution 4.0. The project is expected to attract 2 to 3 billion USD of investment capital in about 6 – 9 years after it is put into operation.

In addition, Korean investors have also cooperated with Vietnamese partners to build a Science and Technology Industrial Park with an area of ​​900 hectares in Binh Duong. In addition, many Vietnamese investors have actively worked with high-tech manufacturing partners to promote the participation of key partners as well as prepare the first customers.

With the policy of attracting investment in high technology and in particular the Investment law 2020, there are special investment incentives for newly established investment projects (including the expansion of the establishment project), the centers for innovation, research and development centers with total investment capital of 3,000 billion VND (about USD 150 million) or more, disbursing at least 1,000 billion VND within first 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy; a national innovation center established by decision of the Prime Minister; Investment projects in sectors or trades specially given investment incentives with an investment capital of VND 30,000 billion (about USD 1.5 billion) or more, with a minimum disbursement of VND 10,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy” will be given special incentives in accordance with the provisions of corporate income tax and land law.

As the investment attraction and investment shift preparation of Korean R&D enterprises, Vietnam hopes to become an investment destination for Korean high-tech enterprises in the future to establish company.

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.

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How Business Information Could Be Searched in Vietnam? | ANT Lawyers

Provisions on announcing of business information are stipulated in various laws and degrees in Vietnam, allowing the interested party to be searching for business purpose for information in regard to investment registration certificate number, business registration certificate number and others information.

In particular, after the enterprise being granted an enterprise registration certificate, it shall carry out procedures to publish it on a portal as per procedures and pay the related fees for administration. The application for publication of enterprise registration information is a compulsory procedure, made at the time an enterprise submits its enterprise registration dossier. The content to be published includes the contents on the enterprise registration certificate and the lines of business. In addition, joint stock companies with foreign investors will need to provide information including founding. In case of changes in enterprise registration contents, the corresponding changes must be publicly announced.

Also, an enterprise must publish information in one of the forms posted on the business information network of the business registration agency or one of the written or electronic newspapers in three consecutive issues. The main content to be published includes: Company’s name; Address of the head office of the enterprise, branch or representative office; Lines of business; Charter capital of limited liability company and partnership company; number of shares and value of contributed capital and number of shares to be issued with joint stock company; initial investment capital for private enterprises; legal capital for enterprises conducting lines of business requiring legal capital; Full name, address, nationality, ID card number, passport or other legal personal identification number, establishment decision number or business registration code of the owner, member or shareholder foundation; Full name, permanent address, nationality, ID card number, passport number or other legal personal identification of the legal representative of the enterprise; Place of business registration.

For publication fees, the enterprise registration fee and the enterprise registration content announcement fee are VND 100,000/time.

There are some enterprises that do not need to publish their business information on the portal before going into operation, but make other forms of announcing i.e. on newspaper or other media. For instance, law-practicing organizations must publish on daily newspapers of central or local registry of law practice or newspaper for three consecutive issues. For credit institutions, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities, they must be published on the State Bank’s media and in a daily newspaper written in 03 consecutive issues or an electronic newspaper of Vietnam at least thirty days prior to the scheduled date of operation of opening information.

In addition to disclosing corporate information, there is also a procedure for disclosure of information on the stock market that is applicable to public companies and bond issuers (except for government bond issuers and bonds), government-guaranteed bonds and local government bonds), securities companies, fund management companies, branches of foreign fund management companies in Vietnam, public funds complying with law on securities detailing information disclosure, announcing on the company’s website and information disclosure system of the Securities Commission.

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.

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