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

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Lotte Wants to Open 60 Supermarkets in Vietnam

 

Vietnam’s retail market has the highest growth rate in the region, therefore Lotte expects to grow further through setting up more retail business or M&A activity in Vietnam.

South Korea is the largest investor in Vietnam with over 4,000 enterprises, total investment in Vietnam as of July 2015 is 32.8 billion USD.

Among South Korean firms investing in Vietnam, Lotte Mart is one of the corporations with the most powerful investment force and they are leading in a number of areas with the models of retail, hotel, cinema…

Mr. Hong Won Sik, CEO of Lotte Mart Vietnam said that Vietnam’s retail market has the highest growth rate in the region, therefore Lotte wants to invest more. The target is to open 60 supermarkets till 2020 and now they have opened 11 supermarkets in Vietnam.

Some of the current Lotte shopping centers have made a big impression on Vietnam consumers and the investment from Lottle makes it to be one of the biggest players on the retail landscape in Vietnam.

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/foreign-investor-in-vietnam/lotte-wants-to-open-60-supermarkets-in-vietnam.html

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The UK Entreprises Encouraged to Explore the Potential Market in Vietnam

In addition to improvement of the business environment in Vietnam, Deputy Foreign Minister Hugo Swire also affirmed that Vietnam and UK will plan to raise awareness for the UK investors about potential business market in Vietnam.

Talking to the press after the Vietnam – UK 4th annual strategic dialogue in Hanoi today (February 27th), Mr. Hugo Swire said, one of the highlights of the conference is how to strengthen bilateral trade relations. According to him, a number of the businesses of the UK have succeeded in Vietnam but the UK wants more and more enterprises to be successful in Vietnam in the future. To do this, the improvement in business environment is one of the problems the UK stressed many times before. Mr. Hugo Swire said that transparency and openness of Vietnam are still big challenges affecting the decision for UK enterprises to invest in Vietnam. Besides, another fact acknowledged by Mr Hugo Swire is that many businesses in the UK have not understood the potential markets in Vietnam.

Therefore, during the dialogue taken place today, he said, Vietnam and the UK have discussed a program to raise awareness of UK businesses in London to Vietnam market. According to Mr Hugo Swire, the completion of free trade agreement between Vietnam and the EU will open up many prospects to attract British investors to Set-up company in Vietnam.

“These problems, if be solved, they will bring to resonance as well as open new horizons for UK businesses to enter into Vietnam,” said Deputy Foreign Minister.

Reviewing more specific about the Vietnam market, he also said, high-end consumer goods is one of the prioritized potentials for businesses of both countries.

According to him, many designers in the UK now want to introduce products to Vietnam and this may be a priority in the coming time. According to him, four other areas in which the Uk interested are education, energy, especially nuclear energy, health, transportation and infrastructure.

According to Mr Hugo Swire, a detailed plan to strengthen relations and cooperation between the two countries on these issues will be discussed in more detail at the annual meeting of the Joint Committee on Economic Cooperation in the future.

Also on bilateral cooperation, Deputy Foreign Minister said the capital of official development assistance (ODA) will end in 2016 but the UK is committed to continue the support for Vietnam by other methods.

One of the forms of assistance is Newton fund currently being deployed in Vietnam to invest in the fields of science and technology, particularly creative ideas, innovation.

According to Hugo Swire, the UK and Vietnam are still under discussion for formal cooperation framework to help the Newton fund operating efficiently. However, representatives from the UK said, one of the activities of the program is the exchange of scientists between the two countries , thus supporting the implementation of the research to develop economics and society.

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/the-uk-entreprises-encouraged-to-explore-the-potential-market-in-vietnam.html

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Vietnam Supports Australian Enterprises Investing and Setting-up Business in Vietnam

 

During an official visit to Australia, in the morning of March 17th (local time), in Sydney, Prime Minister Nguyen Tan Dung and high-level delegation to the Government of Vietnam had the dialogue with the businesses of Vietnam and Australia’s on the development of Vietnam’s economy as well as the opportunities, prospects for cooperation between the two countries.

The dialogue of Prime Minister Nguyen Tan Dung has attracted the participation of hundreds of large enterprises of Vietnam and Australia in the areas of banking, finance, energy, oil and gas, mining. Prime Minister Nguyen Tan Dung has directly answered many questions of the businesses, Australian investors relating to prospects, opportunities to promote and enhance the intrinsic comprehensive partnership between Vietnam and Australia.

Prime Minister Nguyen Tan Dung has generalized the development of Vietnam’s economy from an underdeveloped country with a closed economy and until now Vietnam has become a middle-income country with a dynamic economy, enter into the regional economy and the world’s.

Vietnam achieved GDP growth of nearly 6% in 2014. Until now, registered aboard direct investment capital is up to nearly $ 300 billion, with nearly 18,000 projects from more than 100 countries and territories. Currently, there are over 100 leading corporations investing and set-up company in Vietnam.

The Prime Minister stressed: “To attract more powerful, more efficient foreign investment, the Government of Vietnam will continue to fulfill its smooth operation and economic institutions in Vietnam market, compete equally between domestic firms and foreign firms as committed international integration of Vietnam.

Vietnam confirms continuing international economic integration deeper through the full implementation of its commitments in the WTO and bilateral free trade agreements as well as other multilateral ones. Currently we are implementing 8 free trade agreements and negotiations and will continue to expand the market, open market with other free trade agreements, especially the new generation FTA with high requirements to create competitive business environment in the ASEAN region and create a legal framework consistent with international business practice in the market of Vietnam … “

Prime Minister Nguyen Tan Dung also said that Vietnam is focusing on the three breakthrough strategies to facilitate the attraction of investment and development, business and promote economic development, which is perfect institutional market economy as well as investment in infrastructure development and training human resources, especially human resources quality.

Vietnam also continues to ensure political and social stability and protects the legitimate rights and legality of investors, including domestic and foreign; and continue to improve the rule of law, ensure and promote strong democratic liberties of the people, both economically and politically.

Prime Minister Nguyen Tan Dung has listened and directly answered many of the questions of businesses, Australian investors relating to prospects, opportunities to promote and strengthen comprehensive partnerships between Vietnam and Australia especially to promote cooperation in the field of competitive advantage, such as mining, energy, chemicals, agriculture, finance, banking, education and high quality services.

Government of Vietnam also supports Australian businesses involved in the process of restructuring the economy of Vietnam, especially in the strong field of Australia such as energy, telecommunications infrastructure, education – training, agricultural business and finance.

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-supports-australian-enterprises-investing-and-setting-up-business-in-vietnam.html

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Vinh Long Province: 36 projects calling for investment of nearly 18,000 billion VND.

 

Vinh Long province has just announced the list of 36 major projects to attract investment in the period of 2012-2015. It is estimated that the total capital investment of these projects are nearly 18,000 billion VND.

Three projects have the largest capital investment are infrastructure construction in Tan Binh Industrial Park (400ha, Binh Tan) with 2,000 billion VND, Dong Binh Industrial Zone project (350ha, Binh Minh) with 1750 billion VND and An Dinh industrial zone project (200ha, Mang Thit district) with 1000 billion VND. In addition, there are six industrial district projects with a capital of about 2380 billion VND.

There are two high-tech projects in which project land are available are the project of manufacturing and processing high-tech agriculture in the district of Mang Thit, investment capital of about 220 billion VND, the project of high-quality factory in Binh Minh district with an area of ​​7 hectares and investment capital of 340 billion VND.

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/vinh-long-province-36-projects-calling-for-investment-of-nearly-18000-billion-vnd.html

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Big Manufacturer Waves Enter Vietnam

Facing difficulties in manufacture and consumption, some big car manufacturers in Thailand and Indonesia are planning to find new market in ASEAN. Moreover, recently, LG Electronics- the world’s second largest television manufacturer also intends to move from Thailand to Vietnam.

According to Federal Thailand Industry –FTI’s figures, In 2014, 881,800 cars were sold in Thailand, decreasing 34% compared to 2013. That is the second year in two consecutive years the market is in recession. It was a strong effect to decrease the quantity of output produced in last year : 1,88 million cars (included quantity exported). In Indonesia, quantity sold also lightly decreased which caused reduction of the quantity produced from 1.4 million cars down to 1.3 million cars.

Except for the problem of production, Thailand investors are facing other difficulties, political depression has effected manufacture and trade,and highcosts of labor haverisen the price up. Besides, Thailand’s manufacturing capacity is full, if we want to increase it, we have to invest more. All difficulties above force cars manufacturers to seek for new producing places.

In ASEAN, there are two places which investors are considering to: Philippines and Vietnam. These are two populous countries have enormous potentiality. Hence, the investors still want to invest money in these two countries.

Many people think that this is a facile opportunity for Vietnamto intensively attract new investors, develop cars industry, accommodate domestic demand and export. In Vietnam, monthly figures on consumption which enterprises declared indicated that the growth still has not had signs of slowing down.

According to the monthly report in Jan 2014, VAMA forecasted industry’s consumption rate in 2014 would be about 120.000 cars and increase 9% compared to ones in 2013. However, the real number raised almost 158.000, increased 43%. The quantity sold in December achieved a new record when surpassing 20.000 cars and this is the 21th consecutive month when the industry’s quantity sold higher in comparison with the same period previous year .

Vietnam’s advantage is an enormously potential cars market.In forecast, after 2020 when nation’s income per capita overcomes 3000 USD, the demands of cars will break out. In Vietnam, there are two million of car types, rate of cars per capita is still low, in 2030 the quantity sold would overcome 1 million cars per year. In addition, the low costs of labor in Vietnam helps reducing the costs of manufacture.

LG chooses Vietnam to be the producing place instead of Thailand:

LG Electronics – the world’s second largest televisions manufacturer is planning to move manufactory from Thailand to Vietnam in this year because of efficient producing system, low costs and good logistics services.

In October 2013, LG was authorized to invest 1.5 billion USD to Vietnam for constructing factories in order to produce and assemble electrical goods.

In a phone interview with Reuters’ reporters, Mr. NiponWongsaengarunsri – LG’s marketing manager in Thailand revealed that LG want to construct a manufacturing “fortification” where produce new lines of TV like the main factories in Korea. And Vietnam is their best choice.

“We consider Vietnam as an ideal destination to invest. Low costs of labor is an important factor. However, decisive elements are quality and good logistics services” said Mr. Nipon.

Besides, Mr. Nipon also revealed that LG produces about 600.000 TV products per year in Thailand, cost about 8 billion baht (243 million USD). Among those products, there are about 100.000 for export.

Will Vietnam gain benefit?

Following the integration process, at the end of 2015,Asean Economic Community (AEC) will be established. It will give Vietnam opportunities to expand import and export market, attract investment and skillful labor force in ASEAN area.

Besides, Trans Pacific Partnership (TPP) is on negotiation stage with final rounds, will prospectively give opportunities to Vietnam’s economy. Free Trade Agreements (FTA) is and will be concluded which contribute to attract investment and stimulate export.

In that circumstance, Vietnam government continually gives special treatments to foreign enterprises investing in high technological fields, many big Manufacturer chose Vietnam to be manufacturing “fortification” or expanding investment. For instance, Samsung invested 11 billion USD for factories in Bac Ninh, Thai Nguyen, Ho Chi Minh city; Intel also declared production line of Haswell chip for desktop in Vietnam; expecting to accommodate 80% global demand within the next six months.

2014 is the year for transferringbig enterprises from China to Vietnam. Not only Samsung, Intel, Nokia… but also many enterprises in textile, shoes, are pouring billion USD to manufactories in Vietnam, even when they already have had large factories in China.

Considering Vietnam’s opportunities, many experts suppose that Vietnam should prepare thoroughly in order not to be disadvantageous in our own house, by enforcing science and technology, developing supportive industries and improving competitive ability. If we can do well these stages, Vietnam will receive chances from future transfers.

Readmore: http://www.antconsult.vn/news/big-manufacturer-waves-enter-vietnam.html

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Vietnam is Increasingly Attracting Capital from the US

Vietnam is taking every opportunity to grow its economy and improve the living standard. This is not a vain dream since Vietnam has young and plentiful work force. That is why multinational companies wish to come and set up company in Vietnam.

The year 2015 marked the 40 years since the war end and the 20 years of normalized the relationship between Vietnam and the US. Vietnam began the process of innovation since 1986 but not until 1995, foreign investment in Vietnam began to flow in when the Government established formal diplomatic relations with the United States and joined the National Association of the South East Asia (ASEAN).

In recent years, foreign investment in Vietnam has accelerated. The Korean company is particularly excited with this market. Samsung Electronics is operating and building three plants at three locations – Ho Chi Minh City, Thai Nguyen and Bac Ninh. In total, this giant electronic corporation has poured more than USD 10 billion in Vietnam.

Vietnam is also expected soon to welcome a “wave” of investment from the US. The Procter & Gamble (P&G) – a consumer goods manufacturer is building a factory in Binh Duong with the cost of 100 million USD. The plant will produce Gillette razors.

Since starting operations in Vietnam in 2008, Intel is also pouring money into this market. This semiconductor giant is planning to manufacture in Vietnam the most of advanced processor for personal computers in the future.

Moreover, other big names come from the US that are expanding operations in Vietnam are Starbucks and McDonald’s. They opened their first store here in December 2013 and February 2014.

There are a number of factors that make foreign investment in Vietnam explode. One of the most important reasons is the low labor cost. Labor cost hikes in China are the reason why many multinational manufacturers turned their attention to Vietnam where the cost is 50% cheaper. Besides, the purchasing power of Vietnam consumer is increasing, inflation has been curbed and many easing regulations to boost growth are also the reason why continuous investments are poured tin..

However, the biggest attraction for most foreign investors is the Trans-Pacific Partnership agreement (TPP) about free trade in which Vietnam is one of 12 countries that participate in negotiations. In mid of this year, General Secretary of Vietnam, Mr. Nguyen Phu Trong will visit the United States. TPP agreement will be the main topic of the conversation with the US officials. If the two countries can reach an agreement, the US will become even more important partner of Vietnam’s economy in the future.

In a press conference in HCM city in January 2015, US Ambassador in Vietnam – Mr. Ted Osius was upbeat about the impact of the TPP to Vietnam economy and the US investment here. TPP agreement “will allow the US to become the number one investor and trading partner of Vietnam” he said.

In about 4.5 million Vietnamese living overseas, about 2 million are living in the US. In particular, many people have made a name in the business world. They are Mr. Henry Nguyen – who brought McDonald’s to Vietnam and Mr. David Thai – founder of Highlands coffee chain.

According to the Ministry of Foreign Affairs of Vietnam, approximately 180,000 companies in the United States are owned by Vietnamese, achieved a total revenue of 20 billion USD. Strengthening ties between the two countries could stimulate greater cash flow stream across the Pacific.

The Ministry of Planning and Investment of Vietnam is estimated to spend 500 billion USD in over 10 years to develop the infrastructure necessary for sustainable growth. However, Vietnam can only able to meet 40% of the above figure, through the Government budget, ODA and private capitals.

That is why the Government wants to attract FDI. The Vietnam Government has set a target to create an industrial economy by 2020. Six priority areas are agriculture, forestry and fisheries processing, agricultural machinery, electronics, shipbuilding, environmental and energy saving, automobile production.

The transition from growth based on FDI into industrial-based growth can be rather difficult. However, Vietnam has shown it is serious and is still on track.

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-is-increasingly-attracting-capital-from-the-us.html

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Vision to develop logistics services in Da Nang

 

Da Nang, with its favorable geographical location, lies on the arterial North-South traffic axis in terms of road, rail, sea and air, is an important traffic gateway of the Central – Central Highlands and is the end point on the East-West Economic Corridor running through Vietnam – Laos – Myanmar – Thailand, converging types of transport from air, seaport, railway, expressway, especially with deep water ports. Therefore, Da Nang has a great potential to develop into a maritime transport center, an important logistics hub to countries in the region.

In the economic development orientation and in the Politburo’s Resolution No. 43-NQ/TW dated January 24, 2019 on Da Nang construction and development to 2030, a vision to 2045 defines: Danang will focus on exploiting advantages to soon become a marine economic center, forming logistics service supply chains for the Central and Central Highlands.

To comply with the Resolution, currently, in parallel with the expansion of the port, Da Nang is also actively calling for investment in logistics centers. Of which, 20 hectares in Hoa Vang district, 2 hectares in the north of Da Nang airport, 9.1 hectares in the High-Tech Park. At the same time, promote the early operation of highways Da Nang – Quang Ngai, La Son – Tuy Loan… to awaken potentials, promote trade links, connect industrial zones, economic zones in the region, thereby becoming the driving force to promote the city’s logistics services industry.

In addition, Da Nang will build a new Lien Chieu port as a transport port, Tien Sa port will be a tourist port in order to promote the central role of the international seaport city and urban seaport. According to the Department of Planning and Investment of the city, the Lien Chieu port project is currently completing the environmental impact assessment report, submitting for appraisal and approval of the subdivision planning project 1/2,000. City leaders suggested early appraisal of capital sources and capital balancing capabilities, and proposed to allocate central budget capital to support projects. In the next phases, Lien Chieu port will attract investors in logistics items. This is an important premise for Da Nang to promote the role of a key maritime route in the Central region and a logistics center in the region.

With the above orientation, it is expected that in the coming time, the market of transport services and logistics in the city will develop more vibrantly, raising the quality of services not only in the city but in the region. It is hoped that more companies will invest, set up company and apply for investment certificate in Da Nang in the area of logistics and logistics support.

Read more: http://www.antconsult.vn/news/vision-to-develop-logistics-services-in-da-nang.html

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What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023? | ANT Lawyers

Located in an important position of Southeast Asia, Vietnam has a long coastline of more than 3,000 km. With a diverse geographical structure interspersed with mountainous, highland and coastal areas suitable for general economic zones, Vietnam has ideal conditions to develop the trade and tourism industries. When setting up business in Vietnam, investors can enjoy financial advantage such as corporate income tax, import and export tax and land finance incentives.

Incentives on corporate income tax: In recent years, Vietnam has gradually reduced the corporate tax rate (CIT). In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 until now, 20%. In addition, the provision of high corporate income tax incentives for a number of key fields that need to be encouraged for investment has contributed to attracting investment, encouraging business, creating favorable conditions for enterprises to increase accumulation, increase investment in the economy, and promote growth, hence promoting investors in setting up company in Vietnam.

Import and export tax incentives: The 2016 Import and Export Tax Law has added regulations that high-tech enterprises, science-technology enterprises, science-technology organizations are exempted from import tax on raw materials, materials and components that cannot be produced domestically within 5 years from the date of commencement of production. There are also import and export tax incentives being applied such as:

(i) Exemption from import tax for goods imported for processing for foreign countries and when exporting and returning products to foreign parties, they are exempt from export tax;

(ii) Goods imported for processing that are exempted from tax, goods temporarily imported for re-export and goods being raw materials and supplies in service of the production of exported goods can be extended the tax payment time to 275 days from the date of filing the customs declaration; goods temporarily imported for re-export may be extended the tax payment time to 15 days from the expiration date;

(iii) Exemption from import tax on goods to create fixed assets for investment projects in areas of special investment encouragement, investment promotion fields and investment projects in the locality have difficult socio-economic conditions.

Incentives on land finance: Foreign enterprises investing in Vietnam can be applied adjusted reduce rate (%) calculating the general land rent from 1.5% to 1%. In addition, the State also stipulates the application of the land price adjustment coefficient in determining the land price to calculate the land rent, therefore, making Vietnam increasingly becoming a favourable destination to attract foreign investment and company establishment in Southeast Asia.

In addition, the development of a transparent and consistent investment legal system is increasingly becoming a good tool to promote foreign direct investment inflows into Vietnam in the spirit of the state ensuring the rights of the investors’ ownership, investment capital and other interests of foreign organizations and individuals, creating favorable conditions and simplifying procedures for such organizations and individuals to invest in Vietnam. Compared with the foreign investment laws of some countries in the region, the law on foreign investment in Vietnam is considered by the international public to be more open and attractive, for example applying the form of 100% foreign capital ownership, administrative procedures are simplified, non-discriminatory between Vietnamese enterprises and foreign-invested enterprises. The law has been transforming in the direction of considering investment and business as the matters of enterprises and investors, which the investors have full authority to make decisions from investment projects to the formation and business of the enterprise and that the government only guides, creates an open legal environment, has favorable mechanisms and procedures, supervises and enforce the law.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

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What Has Changed in Vietnam Investment Law 2014? | ANT Lawyers

 The new Investment Law 2014 announced by Vietnam Government on December 26th, 2014 has come into effect on July 1st, 2015. The new law introduces changes which include more opening policies for foreign investors to establish and set-up businesses in Vietnam.

What makes foreign investors hesitate to invest and set-up business in Vietnam? The administrative problems and lack of transparency; the inconsistencies in implementing the principle of freedom to do business.

Theoretically, the new Investment Law 2014 will resolve the above mentioned issues by offering a faster amendment mechanism on registering changes or issuing the new Business Registration Certificate or Investment Certificate. Generally, the process and procedures are expected to become more straightforward and convenient for foreign owned companies compared with 2005 Investment Law and the 2005 Enterprise Law by reducing the volume of paper and the administrative works.

In conclusion, the 2014 Investment Law will help clear up some of the confusions that accompanied the 2005 Investment Law and the 2005 Enterprise Law and their application, as well as ease and simplify the foreign investment process which, it is hoped, will promote business activities and investment into Vietnam. The investment of foreign investor into a Vietnamese company in certain situations would be treated in the same manner as a domestic investor that provides an opportunity to offer clients creative structuring solutions to facilitate investment in Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang.

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Notable Improvements in Vietnam Investment Law 2014 | ANT Lawyers

 Vietnam Investment Law 2014 taking effect from July 1st, 2015, replaces the Investment Law 2005 with notable improvements, especially the provisions on business registration in investment projects which foreign investors making investment in Vietnam or setting up business in Vietnam are welcome.

The new Vietnam Investment Law in 2014 has brought up the concept of “business investments” to replace the previous two concepts as “direct investment” and “indirect investment”.

Under the Investment Law 2005, prohibited investment sectors are generally and broadly defined i.e. detrimental to defense and security, national interests which are vague concepts subject to arbitrary explanation of the Vietnam State authorities. The prohibited business activities in the new regulations are listed down specifically. This change has been considered as a huge development which confirm that the foreign investors have the right to conduct investment in Vietnam in the segments not prohibited by law. The new law specifies 267 conditional investment areas which clearly define the restrictions in one document instead of referring to various laws. This shall also avoid different interpretations of the legal enforcement and application of the laws in Vietnam.

According to the Vietnam Investment Law 2005, regardless of the proportion of foreign invested capital, all projects involving foreign ownership are subject to investment certificate. Under the new law, only the projects of foreign investors or enterprises with foreign investment capital contributed 51% of charter capital or more must apply for new registration certificate for the project investment of foreign investment. This is a big step to attract and encourage investment for foreign investors investing in Vietnam through reducing the amount of administrative formalities which foreign investors had to go through.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Vision to develop logistics services in Da Nang | ANT Consulting

 Da Nang, with its favorable geographical location, lies on the arterial North-South traffic axis in terms of road, rail, sea and air, is an important traffic gateway of the Central – Central Highlands and is the end point on the East-West Economic Corridor running through Vietnam – Laos – Myanmar – Thailand, converging types of transport from air, seaport, railway, expressway, especially with deep water ports. Therefore, Da Nang has a great potential to develop into a maritime transport center, an important logistics hub to countries in the region.

In the economic development orientation and in the Politburo’s Resolution No. 43-NQ/TW dated January 24, 2019 on Da Nang construction and development to 2030, a vision to 2045 defines: Danang will focus on exploiting advantages to soon become a marine economic center, forming logistics service supply chains for the Central and Central Highlands.

To comply with the Resolution, currently, in parallel with the expansion of the port, Da Nang is also actively calling for investment in logistics centers. Of which, 20 hectares in Hoa Vang district, 2 hectares in the north of Da Nang airport, 9.1 hectares in the High-Tech Park. At the same time, promote the early operation of highways Da Nang – Quang Ngai, La Son – Tuy Loan… to awaken potentials, promote trade links, connect industrial zones, economic zones in the region, thereby becoming the driving force to promote the city’s logistics services industry.

In addition, Da Nang will build a new Lien Chieu port as a transport port, Tien Sa port will be a tourist port in order to promote the central role of the international seaport city and urban seaport. According to the Department of Planning and Investment of the city, the Lien Chieu port project is currently completing the environmental impact assessment report, submitting for appraisal and approval of the subdivision planning project 1/2,000. City leaders suggested early appraisal of capital sources and capital balancing capabilities, and proposed to allocate central budget capital to support projects. In the next phases, Lien Chieu port will attract investors in logistics items. This is an important premise for Da Nang to promote the role of a key maritime route in the Central region and a logistics center in the region.

With the above orientation, it is expected that in the coming time, the market of transport services and logistics in the city will develop more vibrantly, raising the quality of services not only in the city but in the region. It is hoped that more companies will invest, set up company and apply for investment certificate in Da Nang in the area of logistics and logistics support.

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How Vietnam Support Start-up Company in Vietnam? | ANT Lawyers

 Start-up company is a topic that is receiving much attention in Vietnam, especially in the context of the country’s strong integration with the world economy. Starting a business is expected to create economic growth, make a positive contribution to socio-economic development. From start-up ideas gradually appears startup businesses in Vietnam. Every year, Vietnam has hundreds of new businesses established, in which the number of small and medium enterprises account for the majority. Because they are small and medium-sized enterprises, it is inevitable to face great competitive pressure from large traditional enterprises as well as competitors.

The identification of small and medium enterprises is the basis for the State to have supportive policies to help enterprises face competitive pressure in the market. Criteria to determine small and medium enterprises include: field of operation, average number of employees participating in social insurance per year, total revenue or total capital of the enterprise.

Firstly, micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 10 people and the total revenue in the year not exceeding 3 billion VND or the total capital of the year is not more than 3 billion VND. Micro enterprises in the field of commerce and services employing no more than 10 employees per year on average with social insurance contributions and total annual revenue is not more than 10 billion VND or the year’s total capital is not more than 3 billion VND.

Second, small enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 50 billion VND or total capital of the year not exceeding 20 billion VND, except micro-enterprises. Small enterprises in the field of commerce and service that have an average annual number of employees who participate in social insurance no more than 50 employees total revenue in the year is not more than 100 billion VND or total capital of the year is not more than 30 billion VND, except micro enterprises.

Third, medium enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 200 people, total revenue in the year not exceeding 200 billion VND or total capital of the year not exceeding 100 billion VND but not micro-enterprises and small enterprises. Medium enterprises in the field of commerce and service that have an average annual number of employees who participate in social insurance no more than 100 employees, total revenue in the year is not more than 300 billion VND or total capital of the year is not more than 100 billion VND but not micro enterprises and small enterprises.

Because there are a large number of enterprises in the Vietnamese market, the State has introduced policies to support small and medium enterprises such as technology support, information support, consulting support, supporting human resource development, supporting small and medium enterprises to transform from household businesses, small and medium enterprises to innovative start-ups, small and medium enterprises joining industry clusters, value chains. Small and medium enterprises play an increasingly important role in the economic development of countries around the world. With the ability to create business opportunities and effective jobs, this business model is increasingly encouraged to develop and receive support from state agencies to expand and develop this business model in Vietnam.

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What Foreign Investors Should Know When Setting up company in Vietnam in 2022? | ANT Lawyers

 In the period of global economic integration, especially Post-Covid-19 era, Vietnam – a developing country is considered one of the countries with potential markets that foreign investors choose to establish the business here taking advantage of the government policy to promote the economy i.e. “new normal” adaption living with Covid-19, quick opening of border allowing tourists to visit Vietnam since Apr 2022, tax reduction, public investment increase…

Whom can set up business in Vietnam?

First, the objects allowed to establish and manage enterprises in Vietnam are all organizations and individuals who are not in the following cases: (i) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons; (ii) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has limited legal capacity or is incapacitated, is not able to control his/her own behaviors, is banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law. At the same time, individuals with foreign nationality implementing business investment activities in Vietnam are considered foreign investors. The implementation of investment forms; the scope of operation as well as related procedures must meet the conditions under the Investment Law; related legal documents; other conditions of international treaties that Vietnam is a member.

How to invest and set up business in Vietnam?

Second, foreigners, foreign investors must explore legal forms of investment in Vietnam including: (i) Investing in establishing economic organizations; (ii) Invest in capital contribution, share purchase and purchase capital; (iii) Implementing investment project; (iv) Investment in the form of BCC contract; (v) Forms of investment and new economic organizations according to the Government’s regulations. They need to consider projects planning to invest in Vietnam in case of requesting approval of investment policy of 2020 Investment Law. The investment project of foreign investors is required to carry out procedures for granting investment registration certificates. If the case must be proposed to approve the investment policy, they must prepare dossiers and carry out procedures to request approval of investment policies. When completing the procedure, they will be granted a written decision on investment policy and investment registration certificates. If not falling in the case of approval of investment policy, foreign investors conduct procedures for applying for investment registration certificates.

What documents required to set up company in Vietnam?

Third, after being granted a certificate of foreign investment registration, foreign investors shall continue the procedures for enterprise registration. Vietnam laws do not have to limit the type of enterprise to foreign investors, hence investors can choose: One member limited liability Company; Two-member limited liability companies or more; Joint stock company; Partnerships. Each type of business has different advantages and disadvantages, and foreign investors should base on the purpose and investment scale to choose the type of suitable form of investment. In addition, the investment under the conditional business lines need to fully meet the conditions according to the provisions of law. Depending on the type of business, there will be the document requirements that need to register accordingly. And most importantly, foreign investors must prepare necessary conditions and sufficient conditions (validated documents for use in Vietnam, business name, head office address, business line, charter capital, legal representative,…) attached to the understanding and implementation of the order and procedures when they want to establish a certain type of enterprise in accordance with the Enterprise Law 2020.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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What Foreign Investors Should Know When Setting up company in Vietnam in 2022?

 In the period of global economic integration, especially Post-Covid-19 era, Vietnam – a developing country is considered one of the countries with potential markets that foreign investors choose to establish the business here taking advantage of the government policy to promote the economy i.e. “new normal” adaption living with Covid-19, quick opening of border allowing tourists to visit Vietnam since Apr 2022, tax reduction, public investment increase…

Whom can set up business in Vietnam?

First, the objects allowed to establish and manage enterprises in Vietnam are all organizations and individuals who are not in the following cases: (i) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons; (ii) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has limited legal capacity or is incapacitated, is not able to control his/her own behaviors, is banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law. At the same time, individuals with foreign nationality implementing business investment activities in Vietnam are considered foreign investors. The implementation of investment forms; the scope of operation as well as related procedures must meet the conditions under the Investment Law; related legal documents; other conditions of international treaties that Vietnam is a member.

How to invest and set up business in Vietnam?

Second, foreigners, foreign investors must explore legal forms of investment in Vietnam including: (i) Investing in establishing economic organizations; (ii) Invest in capital contribution, share purchase and purchase capital; (iii) Implementing investment project; (iv) Investment in the form of BCC contract; (v) Forms of investment and new economic organizations according to the Government’s regulations. They need to consider projects planning to invest in Vietnam in case of requesting approval of investment policy of 2020 Investment Law. The investment project of foreign investors is required to carry out procedures for granting investment registration certificates. If the case must be proposed to approve the investment policy, they must prepare dossiers and carry out procedures to request approval of investment policies. When completing the procedure, they will be granted a written decision on investment policy and investment registration certificates. If not falling in the case of approval of investment policy, foreign investors conduct procedures for applying for investment registration certificates.

What documents required to set up company in Vietnam?

Third, after being granted a certificate of foreign investment registration, foreign investors shall continue the procedures for enterprise registration. Vietnam laws do not have to limit the type of enterprise to foreign investors, hence investors can choose: One member limited liability Company; Two-member limited liability companies or more; Joint stock company; Partnerships. Each type of business has different advantages and disadvantages, and foreign investors should base on the purpose and investment scale to choose the type of suitable form of investment. In addition, the investment under the conditional business lines need to fully meet the conditions according to the provisions of law. Depending on the type of business, there will be the document requirements that need to register accordingly. And most importantly, foreign investors must prepare necessary conditions and sufficient conditions (validated documents for use in Vietnam, business name, head office address, business line, charter capital, legal representative,…) attached to the understanding and implementation of the order and procedures when they want to establish a certain type of enterprise in accordance with the Enterprise Law 2020.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Why Investors Should Set up Business in Phu Quoc? | ANT Lawyers

The improvement in infrastructure system along with the preferential policies have stimulated investors to come to set up business in Phu Quoc and do company.

Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia. Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.

Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.

Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.

The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.

Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.

Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.

The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.

ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Phu Quoc through its affiliate office. We assist clients needing legal service in obtaining investment certificate, business registration, or other licensing procedures in Phu Quoc, Kien Giang Province, Vietnam.

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