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.

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.

Source: https://www.antconsult.vn/news/7-basic-steps-to-set-up-a-business-and-comply-with-vietnam-laws.html

  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.  Therefore, the set up company in Vietnam is always a matter of great interest to foreign investors whom find business opportunities in Vietnam.

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 be set up and be complied in operation, it must go through the following basic steps:

The first step is to set up a business 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.

It can be seen that setting up a business requires businesses to carry out a lot of procedures and comply with many different regulations of tax, banking, labor, insurance... Therefore, besides learning about legal regulations and businesses can seek the support of professional consulting firm in Vietnam with expertise and experience in the field of business establishment to implement the process quickly and effectively.

Source: https://www.antconsult.vn/news/7-basic-steps-to-set-up-a-business-and-comply-with-vietnam-laws.html

  To help Clients start business in Vietnam, ANT Consulting introduces the service to assist in set up business venture in Vietnam.

Foreign investors could make direct investment in Vietnam through setting up one hundred per cent (100%) capital of foreign investors, or establishing joint venture between domestic and foreign investors, or  investing in the contractual forms of: BCC, BO, BTO, and BT

Types of enterprise for foreign investors to invest in Vietnam are as following:

Limited Liability Company 

A limited-liability company may not issue securities to mobilize capital.

Joint Stock Company

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company.  Management system of Joint Stock Company is more complicated than Liability Company.

Partnership

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Representative Office of Foreign Trader

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services)

Branch of Foreign Trader

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Investing by Signing Contracts

Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

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.

Source: https://www.antconsult.vn/news/assistance-in-setting-up-business-venture-in-vietnam.html

  Japan is a familiar investor in the Vietnamese market, many Japanese companies have set up business in Vietnam and IHI Corporation is not an exception.

Recently, Hai Phong People's Committee has been working with the delegation of IHI Corporation (Japan) to explore opportunities to participate in transportation projects in Hai Phong. At the meeting, Mr Atsushi Kutawa - Managing Director of Operations, President in charge of business of IHI Corporation has talked about the company's business situation with city leaders.

In particular, IHI has successfully built Binh bridge (Hai Phong) and Nhat Tan bridge (Hanoi). In 2015, the Group has built the IHI Infrastructure Asia (IIA) plant at Dinh Vu Industrial Park, which specializes in the manufacture of steel structures, supplying for bridge construction projects, thermal power plants and engineering facilities, serving for key construction works in the city.

Through investigation, it is known that there are plans to deploy Hai Phong transportation expansion projects, in which Nguyen Trai bridge and many key bridges connecting trade between the city and the northern provinces will be built. Hence, IHI Corporation wishes to have the opportunity to contribute their accumulated experiences to the cooperation and construction of these bridges.

Accordingly, Chairman of Hai Phong People's Committee has highly appreciated the effective cooperation between Vietnam - IHI in the past time and also provide information about the bridge construction projects of Hai Phong in the coming time, like Nguyen Trai bridge, Vu Yen bridge...

In addition, he also expressed his wish that in the near future, IHI will explore and promote the cooperation in building bridges of Hai Phong. At the same time, in coordination with the Japan International Cooperation Agency (JICA), speed up the implementation of transportation projects, focusing on the Nguyen Trai bridge project.

Hai Phong always take care and create conditions for qualified contractors with high quality products. With the potential, efficiency and experiences of the IHI Corporation that has been confirmed, Hai Phong city will create the best conditions for the IHI Corporation to participate in the transportation development projects of Hai Phong in the coming time.

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.

Source: https://www.antconsult.vn/news/ihi-corporation-japan-wants-to-participate-in-transportation-projects-in-hai-phong.html

  Nghe An - a province located in the central region of Vietnam always has a lot of attractive incentives for foreign investors who come and set up business in Vietnam. In which, Nghe An has a number of solutions to support infrastructure enterprises to quickly implement large-scale industrial parks, including the Hemaraj industrial park – which is preparing to start construction.

According to the plan, at the end of October 2017, Hemaraj industrial park project in the South East Economic Zone will be started construction by Hemaraj Group (Thailand). construction work. The project has a total area of about 3,200 hectares, total registered investment of about 1 billion USD, divided into 7 phases, in which phase I has an area of nearly 500 hectares.

According to leaders of Nghe An province, the provincial leaders are providing maximum support to Hemaraj so that the project can started construction as soon as possible.

Prior to that, in September 2015, a joint venture between Sembcorp Group (Singapore) and Becamex IDC have kicked off the VSIP Nghe An project with an area of 750 hectares. Currently, the project has leveled and built synchronous infrastructure for about 100 hectares of industrial land phase 1A.

More than 90 companies from many countries and territories have come to seek information and investment opportunities at VSIP Nghe An and 10 companies have signed investment commitments with total investment capital of over 400 billion VND. By the beginning of September 2017, some companies was handed over land and started to build the plant.

In order to attract investment, leaders of Nghe An province will be more drastic in reforming administrative procedures. Accordingly, if foreign enterprises want to complete the investment license application, they should only go through the one-stop department of the Investment Promotion Center of Nghe An province.

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.

Source: https://www.antconsult.vn/news/hemaraj-thailand-builds-billion-dollar-industrial-park-in-nghe-an.html

  The Global Competitiveness Report 2017 - 2018 was announced on September 26^th 2017, confirming that countries are improving in terms of health, education and technology.

The latest global competition list of the World Economic Forum shows a messy picture of Asia, while Vietnam and Indonesia jumped in rank, Japan and India slumped.

Vietnam jumped to 55^th place, up 5 steps compared with last year and 20 steps compared with 5 years ago. Accordingly, Vietnam has made remarkable progress in terms of technology and labor market efficiency. Trade is also a key factor that help Vietnam increasing ranking. Specifically, Vietnam is ranking 7^th in terms of import ratio against GDP and 11th in export ratio against GDP.

The withdrawal of the US from the TPP may have removed some future trade opportunities of Vietnam, but the report states that "Vietnam’s growth is expected to be sustained, thanks to strong exports activities".

Meanwhile, Indonesia ranked 36^th, up from the 41^st position of last year. Other Asian countries that also increased in rank are: Malaysia (23^rd); China (27^th) and Thailand (32^nd). The Philippines also rose one step to 56^th.

Japan led the opposite direction: Ranked 9^th after decrease ranking in two consecutive years. The world's third-largest economy continues to grow well in areas such as infrastructure, health and education, but is struggling with macroeconomic environment due to massive public debt.

Although leaping two years ago, India dropped one step down to the 40^th position. Singapore again dropped to 3^rd position, behind the United States.

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.

Source: https://www.antconsult.vn/news/vietnam-increases-ranking-in-the-list-of-global-competition.html

  Mavin Group (Australia) has operated in Vietnam for a long time and now they do not hide their ambition to expand investment and set up business in Vietnam.

In February 2017, Mavin Group inaugurated an animal feed production factory in Nghe An. This plant has a total investment of 15 million USD, which is built on an area of 3.6 ha and has a capacity of 300,000 tons per year.

Mavin Group has invested in Vietnam for more than 12 years and now has production facilities in 7 provinces and branches, warehouses in 19 different provinces in the country. However, up to date, Nghe An is the only province that Mavin plans to invest in 4 separate projects with a total investment of 80 million USD.

In addition to the inaugural animal feed factory, Mavin Group plans to deploy 3 more projects in Nghe An.

In April 2017, Mavin Group was granted a license to invest in a 18 million USD hi-tech pig farm, built on an area of ​​100 hectares. Subsequently, the Mavin Group plans to invest in a Veterinary Research Center. At the same time, conducting a feasibility study to invest in a food processing plant that may be launched by 2018. The project has a total investment of 25 million USD, built on an area of ​​5 hectares, capacity of 200,000 tons/year. This factory will produce products made from meat, sausage, ham and other traditional meats... serving the domestic market and exporting to Laos and Cambodia.

According to the Chairman of the group, Mavin Group before making investment decision always consider 6 issues that are: human resources; market; geographic factors; political issues (attention, government support, security...); incentive policy and transparency.

In addition, representatives of the Mavin Group expressed their satisfaction when investing in Nghe An. Moreover, they also suggested that investors should choose to invest in Nghe An not only because of favorable geographic location, synchronous facilities, great source of human resources but also highly supported from province leaders with great investment incentives.

According to the representative of Vietnam – Singapore Industrial Park (VSIP) in the Central and South regions, recently many local and foreign investors have come to Nghe An seeking investment opportunities.

Previously, in September 2015, VSIP Nghe An was officially started construction with a total area of 750 hectares. After more than a year of land handover, up to now, VSIP Nghe An has now leveled and built complete infrastructure for about 100 hectares of industrial land area in phase 1A. The wastewater treatment system, clean water supply, power supply, fire prevention and protection have been completed and ready to serve investors in production.

More than 90 companies from many countries and territories have come to find out information and investment opportunities at VSIP Nghe An and 10 companies have signed investment commitments with total investment capital of over 400 billion VND. By the beginning of September 2017, some companies have received land handover and started plant construction. In which, the first factory was officially put into operation. It is expected that by the fourth quarter of 2017, two more companies will come into operation, attracting about 1,000 workers.

It is known that VSIP Nghe An is the 7^th project that VSIP deployed in Vietnam. Previously, in addition to 2 VSIP projects in Binh Duong, there are projects in Bac Ninh, Hai Phong, Quang Ngai and Hai Duong. Currently, VSIP's projects attract a total of 720 investors from 30 countries and territories with total domestic and foreign investment of 9.2 billion USD, creating jobs for about 180,000 workers.

Source: https://www.antconsult.vn/news/industry/mavin-pledged-to-invest-80-million-usd-in-nghe-an.html

  Sun City is currently the largest casino resort group in Macau, spending billions of dollars investing heavily in casino resorts in Asia and set up casino business in Vietnam.

The group was founded in 2007, owns about 17 VIP clubs and 280 gaming tables, serving Macau's largest betting and casino market as well as VIP clubs in Korea, China and Philippines.

Currently, Sun City operates large casinos with monthly betting up to 130 billion HKD (approximately 17 billion USD). However, in order to expand its business in Asia, Sun City is spending billions of dollars investing in casino real estate projects in Japan and other countries, including Vietnam.

This plan of Sun City kicked off in 2014 with the acquisition of shares and the bid to operate large casinos in many countries.

In Vietnam, a 4 billion USD casino resort project in South Hoi An is underway to build phase 1 with a total investment of 500 million USD with the participation of Sun City. Three partners involved in investing in this billion dollar resort complex are Sun City, Chow Tai Fook (Hong Kong) and Vinacapital.

According to Bloomberg, Sun City owns 34% of the complex through its subsidiary and has acquired the casino management contract of the project.

The South Hoi An project has scale of up to 985.6 ha, the total investment is 4 billion USD. Currently, the phase 1 of the project is expected to develop on an area of about 163 ha, with an investment of nearly 500 million USD, including resort, casino complex, luxury golf course, hotel rooms, luxury apartments and add-ons...

Previously, Sun City has also been eyeing the Vietnam resort market when concerning and want to invest in a casino project in Duong To (Phu Quoc). However, due to the land fund in this area has been licensed to other investors, Sun City wants to replace by Rach Tram, Bai Thom commune.

In 2010, VinaCapital and Genting Berhad of Malaysia were licensed to invest in South Hoi An project, however, due to financial difficulties, in 2012, Genting Berhad unexpectedly withdrew from this project, thus VinaCapital has been continuously seeking for investment cooperation partner. In 2014, Hong Kong billionaire Cheng Yu Tung - the owner of Hong Kong's Chow Tai Fook, a Hong Kong-owned jewelery and real estate group, ranked by Forbes as the fourth richest person in Hong Kong with total assets worth 16.2 billion USD has participated into this project, in partnership with Sun City and VinaCapital.

With the expansion of casino-based real estate business in Vietnam as well as in other countries in the region, Sun City is clearly seeking to become a leading casino corporation in the world, such as Las Vegas Sands or Wynn Resorts.

According to Bloomberg, Sun City's expansion ambitions are planned even when the Macau casino market is growing fast thanks to China's economy recovering and players spending more and more money, with a 20.4% increase in August. Casino revenue in Vietnam is estimated at 1.2 billion USD, according to Grand Govertsen, a Macau-based gaming analyst. Finally, also according to this report, Vietnam now has about 30 gaming establishments with prizes with 1,900 slot machines and 400 tables. With the relationships with VIP customers of Sun City, it is believed that the project will achieve significant ROI.

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.

Source: https://www.antconsult.vn/news/industry/macau-casino-boss-poured-billions-of-dollars-into-vietnam-real-estate.html

  In recent years, Vietnam has continuously called for foreign investors to come and set up business in Vietnam and most recently, Department of Planning and Investment of Gia Lai province is planning to coordinate with the Department of Planning and Investment of Ho Chi Minh City (HCMC) to organize Gia Lai Investment Promotion Conference 2017.

The conference is scheduled to be held at the end of this year in Pleiku city, Gia Lai province. The areas highlighted at the conference will be: high technology agriculture, agricultural products processing and tourism. These areas are considered as strengths with high potential development of Gia Lai province.

In terms of projects that are given the investment policy decision by Gia Lai Provincial People's Committee (10 projects - total registered capital of 5,516 billion VND) at Gia Lai Investment Promotion Conference 2016, currently 3 projects have completed construction and go into operation: Sugar Factory Project and An Khe Biomass Power Plant Project, which is invested by Quang Ngai Sugar Joint Stock Company, Beef Experiment Project of Tay Nguyen Dairy Products Joint Stock Company. In addition, six projects are under development and another is being revised.

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.

Source: https://www.antconsult.vn/news/industry/gia-lai-calling-for-investment-in-high-tech-agriculture-and-tourism.html

  Korean investors have set up business in Vietnam a lot in the recent years and this country is also the third largest foreign investor in Binh Duong province with 619 projects.

At the meeting between Binh Duong People's Committee and Korean investors held on August 16^th, according to reports of Department of Planning and Investment of Binh Duong province on the attraction of foreign direct investment (FDI) in the first six months of 2017, there was positive changes. The total FDI capital reached 1.726 billion USD, equal to 123% of the year plan and increase by 51% over the same period in 2016.

Specifically, there are 97 new projects with capital of 1.034 billion USD, 62 projects adjust and increase capital of 670 million USD. The sectors attracting a lot of investors are electricity, electronics, mechanics, pharmaceuticals, chemicals, trade and services...

Particularly for Korean investors, in six months of 2017, there are 16 new projects and 17 projects adjusted for capital increase. Overall, total investment reached 306 million USD. Accumulated until June 30^th, Korea is the third largest foreign investor in Binh Duong (after Taiwan and Singapore) with 619 projects worth 2.694 billion USD.

With the efforts to improve the investment environment, Binh Duong is always attracted by investors, the number of foreign investors coming to the province to explore investment opportunities in the first half of 2017 continued to increase over previous years. FDI attraction results of Binh Duong is a good signal, affirming that the investment environment of the province is very attractive to foreign investors.

Binh Duong currently has 28 industrial parks with an area of 10,560 hectares and 11 industrial clusters with an area of over 802 hectares, occupancy rate reaches over 70%.

Binh Duong is still implementing some new industrial zones and expanding existing industrial parks such as Bau Bang Industrial Park (1,000 ha), Nam Tan Uyen (446 ha), approving new investment of An Lap industrial cluster (75 ha).

In the period 2016 - 2020, Binh Duong will develop up to 33 industrial parks with an area of nearly 15,000 ha.

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.

Source: https://www.antconsult.vn/news/industry/foreign-investor-in-binh-duong.html

  The flow of FDI capital into Vietnam has continued to grow strongly over the years, demonstrating the confidence of foreign investors when deciding to set up business in Vietnam.

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the total amount of FDI capital such as new registered, capital increase, capital contribution and share purchase in the first 7 months of 2017 is 21.93 billion USD, increases by 52% over the same period in 2016.

Of these, the new registered capital was 12.92 billion USD, increases by 48.7% over the same period; the added capital was 5.87 billion USD, increases by 38.5% over the same period. The amount of capital that investors spend to contribute capital and buy shares in enterprises in Vietnam is 3.12 billion USD, increases by 109.7% over the same period in 2016.

According to the trend, more and more foreign investors have recently invested in Vietnam through capital contribution and share purchase. An increase of over 109% indicates that. Furthermore, data from the Foreign Investment Agency showed that by July 20^th 2017, the FDI projects have disbursed 9.05 billion USD, increase by 5.8% over the same period in 2016. The rate of increasing in FDI capital disbursement is gradually improving compared to the first months of the year.

In the first 7 months of 2017, foreign investors have invested in 18 industries and sectors, of which the manufacturing and processing sectors have attracted the attention of foreign investors, with total capital of 10.83 billion USD, accounting for 49.4% of the total registered capital. The electronic production and distribution sectors ranked 2^nd with total investment of 5.25 billion USD, accounting for 23.98% of total investment capital. Standing at the 3^rd position is mining sector with total registered capital of 1.28 billion USD, accounting for 5.86% of the total registered capital.

Meanwhile, in terms of partner, Korea ranked 1^st with a total investment of 5.62 billion USD, accounting for 25.63% of total investment capital. Japan ranked 2^nd with total registered capital of 5.46 billion USD, accounting for 24.92% of total investment capital in Vietnam.

In terms of localities, Thanh Hoa is the most attractive province with the total registered capital of 3.06 billion USD, accounting for 13.9% of total investment capital. Bac Ninh ranked 2^nd with total registered capital of 2.95 billion USD, accounting for 13.48% of total investment capital. Nam Dinh ranked 3^rd with a total registered capital of 2.2 billion USD, accounting for 10% of total investment capital.

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.

Source: https://www.antconsult.vn/news/industry/korea-leads-fdi-in-vietnam.html

  60 enterprises coming from Guangdong, Hong Kong (China) are visiting Hanoi, exploring opportunities to set up business in Vietnam.

The conference between Vietnam and Guangdong, Hong Kong enterprises is organized in Hanoi. In addition to 60 businesses wishing to explore investment opportunities with Vietnam enterprises, the conference also attracted delegates including Government and business leaders from 12 provinces and cities of Vietnam, Guangdong and Hong Kong, along with enterprises, leaders of many provinces and cities of Vietnam, especially the provinces bordered with China such as Lang Son, Lao Cai...

The enterprises from Guangdong and Hong Kong operating in the field of manufacturing and trading in the fields of electrical equipment, electrical appliances, consumer goods... Meanwhile, Vietnamese enterprises doing business in such sectors as transportation, general import and export, agricultural products, industrial zone infrastructure...

With the two-way trade turnover between Vietnam and Guangdong reached 17 billion USD in 2016, increased by 2.9% compared with 2015, Guangdong is the province playing significant role in promoting the growth of two-way trade between Vietnam and China. In addition, Guangdong's total production value in 2016 reached 1.160 billion USD, Guangdong continues to be one of China's leading localities for economic and trade cooperation with Vietnam.

Meanwhile, the Vietnam consumer market has increasing scale and purchasing power, creating conditions for Guangdong enterprises to bring goods to Vietnam for consumption. In the opposite direction, with a population structure of more than 100 million people, this is also a potential market for a wide range of commodities, especially Vietnam agricultural products. It is expected that the value of Vietnam's agricultural products exporting to Guangdong will soon reach billions of dollars.

Source: https://www.antconsult.vn/news/guangdong-hong-kong-businesses-seeking-opportunities-in-vietnam.html

  There are many opening opportunities, so that the Russian Federation enterprises can come to explore and set up business in Vietnam and vice versa.

Previously, there is almost a constant law, that is only Vietnam come to promote investment abroad, now the story seems to be different. Japan has organized an investment promotion conference in Vietnam. And just recently, on March 2017, during a visit to Vietnam of Mr Yuri Trutnhev - Deputy Prime Minister, Russian Presidential Representative in the Far Eastern Federation, also held the same investment promotion workshop. There have been calls for Vietnamese businesses to invest in Russia, with many investment incentives.

In fact, in the last few years, Vietnam's investment in Russia has increased rapidly, from 100 million USD in 2008 to about 2.4 billion USD in the recent times, concentrating mainly on oil and gas, trade, agriculture… Vietnam's large investment projects in Russia include Rusvietpetro, Gazpromviet Petroleum Joint Venture, TH TRUE Milk, Ha Hoi Trade Center in Moscow.

Contrary to the trend of capital inflows from Vietnam to Russia have increased dramatically in recent years, investment flow from Russia to Vietnam is slowing. In the first 5 months of 2017, Russian businesses only invested 7.2 million USD in Vietnam. To sum up, the accumulated investment capital from Russia to Vietnam is currently about 1 billion USD.

The figure is modest and substantial, focusing on traditional projects which is oil and gas cooperation. Besides the Vietsovpetro Joint Venture, the two countries have established such joint ventures as Rusvietpetro, Vietgazprom and Gazpromviet to expand oil and gas cooperation in Vietnam, Russia and third countries.

In April 2017, a meeting between two leaders of Russia and Vietnam's leading oil and gas corporation that are Gazprom and PVN, took place in Moscow. In which, both sides have continued to discuss on the cooperation to exploit oil and gas in Vietnam, as well as oil and gas projects in Russia.

In fact, Gazprom has participated in the Hai Thach - Moc Tinh gas field project in Vietnam since 2003 and up to now, the total output of this mine has reached about 6.6 billion m3 of gas. In particular, in 2016, the output reached 2 billion m3.

In addition, the two sides also discussed the process of geological exploration in plots 112 and 129 - 132 on the continental shelf of Vietnam, also deployed the project of developing oil - gas - condensate - Nagumanovskoye field and gas field - condensate Severo - Purovskoye in Russia, at the same time discussed the prospect of joint venture cooperation in the field of electrification and transport vehicles using natural gas (NGV). Once these agreements become reality, Vietnam - Russia oil and gas cooperation will be more closely and effectively, opening great investment cooperation opportunities between the two sides.

Opportunities will be even greater when the free trade agreement between Vietnam and the Eurasian Economic Union (includes Russia, Belarus, Kazakhstan, Amenia and Kyrgyzstan) is effectively implemented. Implemented effectively. Although it is just a free trade agreement, the agreement will create a great opportunity for two sides to cooperate and take advantage of each other's markets. This common market block has total GDP of 2,200 billion USD and 183 million people. Moreover, Vietnam and the Eurasian Economic Union have also set target of increasing two-way trade to 10 billion USD by 2020. This is an important basis for investment cooperation between Vietnam and the Russian Federation, as well as other intra-regional economy will be further boosted.

The visit to Belarus and the Russian Federation from June 26^th to July 1^st 2017 by Vietnam President Tran Dai Quang is expected to create opportunities for further economic and investment cooperation between Vietnam - Russian Federation and Vietnam - Belarus.

Source: https://www.antconsult.vn/news/industry/vietnam-russian-federation-cooperation-in-the-spirit-of-friendship.html

 Renewable energy, high technology industries, supporting industries... are areas that are interested by US investors when they come to set up company in Vietnam.

One of the "hot" issues that US businesses and investors interested in is the issue of cooperation and investment in the field of renewable energy. According to Mr Freb Burke from Baker & McKenzie, renewable energy is currently the most attractive investment area. Vietnam will avoid the construction of thermal power plants when moving to invest in wind and solar power plants.

In addition, many multinational corporations have strict environmental standards and they want these standards to be applied globally. Manufacturers also want to produce consumer goods using clean energy. For example, Apple is making a commitment to achieve 100% clean energy in their global supply chain. Hence, if Vietnam wants to attract investors like Apple, Vietnam should produce enough renewable energy to meet their needs.

According to Mr Burke's explanation, renewable energy secures energy and environment security for Vietnam, helping Vietnam tap its potential and export energy. Renewable power plants attract the interest of US businesses like First Solar and GE. Furthermore, Vietnam has just raised its electricity purchase price to 9.35 UScent per kWh. This is a relatively attractive price for foreign investors due to the reduction in the price of wind and solar power along with the development of technology. However, Vietnam needs long-term guarantees for investors to borrow from banks and invest.

Moreover, the American Chamber of Commerce in Vietnam (AmCham) stated that the Association and its partners are proposing a Production Energy Plan in Vietnam to provide a needed road map for reforms, in order to attract investors, equipment suppliers, manufacturers and operators from the United States.

In addition, many US investors have also expressed their interest in intelligent cities, waste treatment projects, high-tech industries... Many businesses say that despite the United States withdrawal from the TPP agreement, trade relations between Vietnam and United States will continue to develop strongly in the future.

In fact, in recent times, high technology and supporting industries have attracted more projects of US investors. According to the owner of Saigon Silicon Project, after the construction of the project in Saigon Hi-Tech Park in the second half of 2016, up to now, many US investors have expressed their plan to implement projects here. It is planned that after completion of the infrastructure, the project can attract about 20 projects operating in the field of high tech and supporting industries, with investment capital of about 1.5 billion USD.

Meanwhile, a group of US scientists and businesses have recently reached an initial agreement on implementing a smart glass production project in Long An province with a billion dollar investment capital. This is a high-tech manufacturing project and about 90% of the output will be exported.

According to businesses, the results of investment attraction is not worth the potential of the two countries. Currently, the United States ranks 9th among foreign investors in Vietnam, with an investment of about 10 billion USD according to registered statistics from the United States. However, if we count the investment from the United States through third countries, the investment capital must be greater, for example, the Intel project has investment of more than 1 billion USD, but the investment capital is registered from the enterprise based in Netherlands.

Another good news is that, during the US visit of Vietnam Prime Minister Nguyen Xuan Phuc at the end of May 2017, US and Vietnamese businesses have signed contracts worth tens of billions of dollars in many fields. Therefore, according to businesses, if the bottlenecks, especially the regulatory and framework issues on investment are improved, the flow of investment from the United States is likely to increase in the coming time.

Source: https://www.antconsult.vn/news/taste-of-us-investors.html

  By the end of March 2017, Thai investors had invested in 458 projects with a total registered investment capital of 8.13 billion USD, standing at the 10^th position out of 115 countries and territories investing into Vietnam.

With the determination of the two Governments and the proactive of businesses, the economic cooperation between Vietnam and Thailand will grow strongly and reach the target of 20 billion USD in bilateral trade by 2020. Vietnam-Thailand trade relation has grown by more than 40% during the past five years. Specially in 2016, the growth rate continues to reach 10% with total turnover of nearly 13 billion USD. In the coming years, the two countries' trade will increase as the two countries move towards the implementation of the ASEAN Free Trade Agreement and other general agreements.

On the Vietnamese side, as of January 1^st 2015, Vietnam has cut its tariffs by 0% on more than 8,600 tariff lines. The remaining 669 tariff lines will be reduced to 0% by 2018. On the Thai side, currently more than 9,500 tariff lines under the tariff reduction schedule of the ATIGA have been fully abolished since 2012. In that context, the two sides should organize activities to promote trade and investment; continue to encourage Thai businesses to invest in Vietnam, support Vietnamese businesses to expand their business to Thai market, contributing to balance the trade balance.

In fact, Vietnam is Thailand's second largest trading partner in ASEAN and Thailand is the largest trading partner of Vietnam. The two countries are located on the mainland with convenient transportation. The two countries also have open policies, implementing many measures to reduce barriers, facilitate the flow of goods.

Not only a major trading partner, Thailand is also one of the countries having cooperative investment with Vietnam very early, right after Vietnam implement the policy to open and attract foreign investment. In the past few years, Thai businesses have made specific plans to increase their investment capital in advantageous areas in Vietnam such as retail, building materials production, thermal power, animal feeds...

The establishment of the ASEAN economic community (AEC) is a great motivation for Thai investors to bring capital to Vietnam and expand their business area. Not only towards the market of 90 million people in Vietnam, Thai businesses are far more visionary to penetrate the AEC market with a population of 600 million and a total GDP of 3,000 billion USD.

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.

  Hong Kong investors are promoting investment in southern provinces in the areas such as infrastructure investment, waste water treatment, waste and also learn about set up company in Vietnam.

Recently, about 40 Hong Kong investors and experts in investment and infrastructure development sectors have visited Ho Chi Minh City. Sharing the purpose of this business trip, Mr Vincent HS Lo - Chairman of the Hong Kong Trade Development Council said that these investors are people who have a lot of experiences in the financial, consulting, architecture, energy, water and waste treatment, engineering and construction, law and accounting, transportation sectors...

Also according to Mr Vincent HS Lo, investors and businesses in Hong Kong are very interested in Vietnam infrastructure projects, especially the system of railway, road, airport and seaport.

Previously, during meetings with representatives of the Ministry of Transport in Hanoi, representatives of Hong Kong investors and businesses also expressed their interest in the North-South Expressway Project with a length of more than 1,300 km. A Hong Kong representative said that this project would help develop the strengths of a gateway to attract investment in large projects.

According to Hong Kong businesses, in addition to transport infrastructure, they are also interested in large-scale real estate projects in Vietnam. Mr Johnson Choi, Managing Director of Sunwah Group said that the company had many large investment projects in Vietnam, notably real estate projects. According to Mr Choi, among countries in Asia, Vietnam is considered as a potential country for real estate. Therefore, not only investing in projects in HCMC, Hong Kong businesses also pay attention to projects in Hanoi and the Central region.

According to the Ministry of Planning and Investment, as of the end of the first quarter of 2017, Hong Kong is the sixth largest investor in Vietnam with more than 1,200 projects and a total registered capital of more than 17.57 billion USD.

Hong Kong’s licensed projects in Vietnam are quickly implemented. For example, the project of Worldon Vietnam Co., Ltd in Dong Nam Industrial Zone (HCMC), after being licensed to increase capital by 140 million USD in 2016, has nearly completed the Fashion Design and Production Center for high quality knitwear.

Or project of Nam Phuong Textile Joint Venture Co., Ltd., with registered capital of 120 million USD in Viet Huong 2 Industrial Zone (Binh Duong), has made new moves in the project implementation after starting work at the end of 2014. The project is constructed on an area of 12 hectares, operating in the field of weaving fabric, phase I has capacity of 36 million meters of cloth per year, mainly for export...

In 2016, Vietnam is Hong Kong's largest export market in ASEAN with a total export turnover of 9.25 billion USD. In addition, Vietnam is Hong Kong's third largest trading partner in the ASEAN region with a total bilateral trade reached 16.2 billion USD.

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.

  Japan is one of the two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year and the main investment sector is supporting industry.

According to the Dong Nai Department of Planning and Investment, in the first three months of 2017, the province has granted investment registration certificates to 31 projects with foreign direct investment (FDI), with total investment capital of more than 314 million USD, including 15 newly licensed projects with total capital of nearly 137 million USD and 16 projects register to increase capital with total capital increase of more than 177 million USD.

Japan is one of two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year. The field that Japanese businesses invest in Dong Nai is mainly supporting industry. Dong Nai is also the province that is currently calling for investment to increase the rate of supplying input materials for enterprises and also reducing imports.

In the recent 3 years, there are large numbers of Japanese enterprise come to Dong Nai to invest. In addition to Long Duc Industrial Park, which is primarily attracting Japanese businesses, other provinces have formed subdivisions to invite Japan’s SMEs to invest. Japanese enterprises investing in Dong Nai mainly in supporting industries, electricity, electronics, mechanics, machinery...

From the beginning of 2017, there are continuously Japan’s enterprises and local governments come to Dong Nai to explore investment opportunities. Notably, 22 enterprises coming from Sakai city, Osaka operating in the fields of mechanical engineering, steel, electricity, electronics... came to Dong Nai to visit Amata Industrial Park, Long Duc Industrial Park... to learn policies and investment opportunities.

Recently, Kobelco Environmental Solutions Joint Stock Company under Kobe Steel Group has proposed to the Dong Nai authorities to invest in the clean water treatment sector of the province. Kobelco entered Vietnam at the end of 2010 with the main activities which is water treatment, wastewater, recycling, waste treatment, operation and maintenance. In Dong Nai, the company has invested in waste water treatment system in Loteco Industrial Park and Long Duc Industrial Park.

According to experts, Vietnam's participation in new FTAs offers many opportunities for businesses operating in Vietnam, including Japanese companies. Hence, more and more Japanese companies are choosing to set up company in Vietnam.

  Vietnam has many strong points in FDI attraction that foreign investors are very interested in. This has made Vietnam an attractive destination for investors to set up company in Vietnam.

Firstly, the stable security and political situation is an important condition for deciding to set up long-term investment activities in Vietnam. Moreover, Vietnam has a favorable geographic position in trade with the world as well as a connection hub of the region and a gateway to penetrate economies in the western part of the Indochina Peninsula. Third, with a population of 92 million people, Viet Nam has the advantage of abundant and quality labor force with competitive labor costs. In addition, with 12 new generation free trade agreements and Vietnam's entry into the ASEAN Economic Community (AEC), it is a good opportunity for Vietnam to connect with Asean market with over 600 million population and also the world market.

The institution, law and transparency of Vietnam are gradually being completed associated with integration, not only enabling investors to be reassured for long-term operation, but also help enterprises to participate in the supply chain, global value chain in a convenient way.

The field that foreign investors consider as strength of Vietnam is the manufacturing, processing industry. Up to now, this sector has attracted the most foreign investors with 11,833 investment projects with total registered capital reached over 175 billion USD (accounting for 51.6% of the total number of projects and 58.9% of total registered capital in Vietnam). Such investment structure is evaluated positively and place strong impact on the development of Vietnam's industries in line with the country's industrialization and modernization policy.

In the coming time, Vietnam will continue to prioritize attracting investment projects in the fields of supporting industries, projects with advanced technology, environmentally friendly and efficient use of the resources, minerals, land; facilitate and strengthen the connection with domestic enterprises.

Over the past years, Vietnam's business and investment environment has been constantly improving in  the open and transparent way, in line with international standards. In the context of Vietnam's increasingly deep integration into the world economy, it will increase the attractiveness and competitiveness of Vietnam in attracting foreign investment, especially multinational corporations.

In addition, FDI enterprises have contributed to the socio-economic development of Vietnam. In recent years, the proportion of foreign investment in total investment always accounting for about 25%; contributing over 20% to GDP; contributing to the state budget and creates millions of jobs for employees.

Foreign investment capital continues to increase annually. From 2013 to now, the registered FDI capital is over 20 billion USD. Furthermore, the results of production, business, export, import and state budget contribution of FDI enterprises also achieved superior results.

In addition, the FDI sector has a spillover effect on other sectors of the economy; raising domestic investment resources, shifting economic structure, reforming state-owned enterprises and administrative procedures, improving market economy institutions and promoting international economic integration.

  In the first 3 months of 2017, total foreign investment in Vietnam reached 7.71 billion USD, more than double the amount of 3.4 billion USD in the first two months and increases by 91.5% over the same period last year.

As announced by the Foreign Investment Agency (Ministry of Planning and Investment), as of March 20^th 2017, the whole country has 493 new projects that have just been granted investment certificates with total registered capital of 2.9 billion USD, increases by 6.5% over the same period in 2016.

In addition, there are 223 projects registered to increase investment capital, with total registered capital increase of 3.94 billion USD, increase by 206.4% over the same period in 2016. Also, there are 1,077 capital contribution and share purchases transactions of foreign investors with total investment capital of 852.86 million USD, increases by 171.5% over the same period in 2016.

Thus, totally in the first quarter of 2017, the total newly registered, increased and contributed capital to buy shares are 7.71 billion USD, increases by 91.5% over the same period in 2016.

Looking at these numbers, we can see that foreign investment into Vietnam is increasing drastically. In the first two months of 2017, the figure was just 3.4 billion USD, after three months, the figure is more than double, reaches 7.71 billion USD.

It is not difficult to explain this strong acceleration. The fact is in March, there are many large scale projects are granted investment certificate. Among them, the most noticeable is the expansion project of Samsung Display in Bac Ninh, with additional capital of 2.5 billion USD.

Also in March, a number of other large-scale projects have received approvals for newly registration or capital increases from Vietnam authorities.

Notably, the factory project of Polytex Far Eastern Co., Ltd (Vietnam), invested by Taiwanese investors in Binh Duong, with the objective of producing polyester fiber products, has just adjusted for additional investment capital of 485.8 million USD; the Coca-Cola Beverages Vietnam project in Hanoi registers to increase its investment capital to 319.8 million USD.

Besides, the Vietnam Singapore III Industrial Park project in Binh Duong with total investment capital of 284.75 million USD; Tole Panel Manufacturing Factory project in Binh Phuoc with total investment capital of 269.54 million USD; the KVT-1 tire production project in Binh Duong of Kolon Industries Inc., with registered capital of 220 million USD...

It was not out of expectation, thanks to the billion USD project, Bac Ninh has become the most attracting foreign investment destination since the beginning of this year, with total registered capital of 2.61 billion USD, accounting for 33.86% of total investment in Vietnam.

Binh Duong ranks second with total registered capital of 1.39 million USD, accounting for 18.04% of total investment. Ho Chi Minh City ranks third with a total registered capital of nearly 600 million USD, accounting for 7.78% of total investment capital.

Also thanks to the billion USD project, Korea has returned to crown on the list of major investment partners in Vietnam in the past 3 months, with 3.74 billion USD. Singapore came in second with 910.8 million USD, while China was in third place with 823.6 million USD.

According to the Foreign Investment Agency, up to March 20^th, it was estimated that FDI projects have disbursed 3.62 billion USD, increases by 3.4% over the same period in 2016.

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.