Vietnam Market Research

  Market research is an important operation. If the market research is well done, it provides accurate information to help marketers make an appropriate strategy and then, bring high efficiency in business. In other words, if the result of market research is inaccurate information and does not correctly reflect the actual market situation, marketing activities will be inefficient.

Companies would fail if underestimating the importance of market research before entering a new market.

Therefore, market research activity is so important for whomever needing success. Namely, the market research is considered an active approach to enter into the market. The market research also helps you understand the latest development in the target market, thereby making marketing decisions quickly. The international business environment is quite volatile, that‘s why you need a proactive approach like that and it is really your competitive advantage.

Through the market research, you can form the idea of developing a new product and choose the correct strategy for that product in each specific market. Through research, you also do not have to waste money and effort for the false hope, especially when you export the products to oversea for the first time. On the other hand, it should be noted that although the market research does not make sure success in business, it will help you avoid many wrong decisions.

Market research service can:

• Help find the biggest market for your products, the fastest growing market, trends and prospects of market, conditions, business practices and opportunities for your product on the market.
• Allow to make efforts effectively in a field or a certain range. After that, you can set the priority for a specific target market and plan for the future market.
• Help understand the competitors, including strengths and weaknesses, mistakes and their causes of success.
• Help find ideas to develop new products.
• Helps strengthen business relationships with partners.

Source: https://www.antconsult.vn/market-entry-service/vietnam-market-research.html

German Investors Funded 15 Million USD for Kinh Bac to Implement Workshop Project

  The total investment value of the project is 33.4 million USD, equivalent to about 755 billion VND, which is invested in construction and development in industrial zones.

According to information from Kinh Bac City Development Holding Corporation (KBC), the subsidiary of this unit is Kinh Bac Office and Workshop Trading One-Member Limited Company has just reached an agreement: signed contract to finance a project to build a workshop with the German Investment Corporation (DEG) under the German Development Bank (KfW). KfW is now managing more than 600 billion euros.

Accordingly, Kinh Bac Office and Workshop Trading One-Member Limited Company will receive a long-term loan from the DEG worth 15 million USD (total value of the project is 33.4 million USD) with a loan term of up to 8 years to supplement the capital for construction and development of workshops in industrial zones.

According to DEG’s representative, Mr Hubertus Pleister - Director of DEG Asia, Vietnam's economy has grown steadily, continuously and sustainably over the long term, this is an important market, with many investment inflows. In addition, KBC is known as a prestigious business in the field of real estate and calls for foreign investment in industrial parks.

According to KBC, in addition to sponsored the above funds, DEG also committed to support KBC to access to other long-term development funds from financial institutions under the European Development Finance Institutions (EDFI) where DEG is a key member. KBC has undergone a rigorous 2-year appraisal process that ensures DEG's criteria for financial capacity, management and environmental factors.

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/german-investors-funded-15-million-usd-for-kinh-bac-to-implement-workshop-project.html

Can Gio - The Potential Land for Tourism Investors

  According to the plan of Ho Chi Minh City (HCMC), by 2020, the number of visitors coming to Can Gio will reach 6 million. That is really a good sign for the Vietnam tourism industry.

HCMC welcomes 30 million tourists a year. Just to find out how to bring these visitors to Can Gio as Pattaya attracts visitors from Bangkok, Can Gio will boom over Nha Trang, Vung Tau, Phan Thiet to become the leading tourist center of Vietnam.

Located only 50 kilometers from the center of Saigon, the four sides are covered by rivers and sea, and owns more than 30,000 hectares of mangroves that have been recognized by UNESCO as the world biosphere reserve. Can Gio is considered to have the potential to become a leading tourist center of the area.

If compared to the leading paradise of the Thai region such as Pattaya, Can Gio is not inferior in terms of natural conditions, such as the quality of the beach, the area of forest, river and mountain... Even Can Gio has more advantages in geographic location: While Pattaya is 100 km far from Bangkok - Thailand's largest tourist center, Can Gio is just 50 km from Ho Chi Minh City.

However, to date, the "billion dollars" potential of Can Gio has not been awakened. As if every year HCMC welcomes about 30 million visitors, Can Gio attracts only 3% of visitors from HCMC (1 million visitors).

Starting from 2017, the obstacles of Can Gio real estate and tourism have begun to be resolved.

On traffic, Can Gio Bridge started construction will solve traffic congestion connecting HCMC with Can Gio. When the two bridges were completed, the time to travel from the center of Saigon to Can Gio was only about 30 minutes instead of 1.5 - 2 hours as before.

In terms of entertainment, the two billion-dollar entertainment complexes of Vingroup and Tuan Chau with a scale of up to thousands of hectares with five-star resorts, golf courses, casino, entertainment area... will become two destinations attracting millions of tourists from HCMC to visit and spend money. In addition, there is La Maison De Can Gio project of Phuoc Loc Company.

We can see that the number of visitors coming to Can Gio as planned in 2020 will be up to 6 million guests. But the number of large scale hotels in this area is not available now, so investing in resort complexes is seen as an opportunity for investors.

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/can-gio-the-potential-land-for-tourism-investors.html

FDI into Vietnam Reached 25.5 Billion USD in 9 months of 2017

  FDI into Vietnam is always an impressive figure with steady growth every year, proving that many foreign investors have chosen to set up business in Vietnam. According to the latest figures from the Foreign Investment Agency, from the beginning of 2017 to the end of September 2017, foreign direct investment (FDI) has hit a record of 25.48 billion USD, increased by 34, 3% over the same period in 2016.

Of which, there were 1,844 new projects with total investment of 14.56 billion USD, increases by 30.4%; 6.75 billion USD of 878 projects registered for capital adjustment, increases by 28.3% and 4.16 billion USD of 3,742 capital contribution turns, share purchases of foreign investors, increases by 64% over the same period last year.

Statistics also show that the manufacturing sector has attracted nearly 50% of the registered capital of 12.64 billion USD in the past 9 months. Standing in the 2^nd position in terms of FDI attraction is electricity production and distribution with total investment capital of 5.37 billion USD, accounting for 21% of the total registered investment. The 3^rd position is the wholesale, retail sector with total registered capital of 1.58 billion USD, accounting for 6.2% of total capital.

It is worth mentioning that real estate sector, which continuously standing in the top most invested in the recent years, has been replaced by the processing, manufacturing and retail sectors...

Among investors in Vietnam, in 9 months of 2017, Korea still ranked 1^st with total investment of 6.31 billion USD, accounting for 24.7% of total investment. Standing in the 2^nd place is Japan with total registered capital of 5.91 billion USD, accounting for 23.17% of total investment. Singapore ranks third with total registered capital of 4.14 billion USD, accounting for 16.2% of total investment capital.

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

Source: https://www.antconsult.vn/news/fdi-into-vietnam-reached-25-5-billion-usd-in-9-months-of-2017.html

Foreign Investors Implement Food Projects in Vietnam

  Foreign investors who are licensed to invest in the food sector in Ho Chi Minh City are in the process of implementing the project, while other projects are interested by foreign partners. It shows the excitement of investors when deciding to set up business in Vietnam.

In particular, project of Nam Duong International Food Co., Ltd with registered capital of 25.6 million USD has completed the construction of the factory, installation of equipment and machinery. The project is licensed by the end of 2015, which is a joint venture between the Saigon Co-operative Alliance (Saigon Co.op) and Wilmar International Limited (Singapore), with the capital contribution of 49% and 51% respectively. The project aims to produce sauces and spices for domestic and export markets.

Wilmar’s investment in Vietnam and cooperation with Saigon Co.op is to utilize strengths from both sides to improve the competitiveness and coverage of Nam Duong brand as well as contribute significantly to the development of the sauce and spices industry.

Meanwhile, the project of CJ Cau Tre Foods Joint Stock Company, with investment capital of 53.3 million USD, which was licensed by the end of May 2017, is being expedited by investors to implement the procedures under regulations to prepare to start construction.

This is a food processing complex on an area of 7.1 ha, including food processing plant, research and development center, modern food safety center... The 1^st phase of the factory has designed capacity of 12,000 tons of products per year, which will be consumed domestically and exported to markets such as Korea, Japan, USA, EU...

The project is invested by CJ Cheiljedang Corporation (Korea) through the ownership of 71.6% stake in Cau Tre Export Processing Joint Stock Company.

We can see that, in recent times, many foreign investors have approached the market by acquiring or holding controlling shares in local companies and it is forecasted that this trend will continue.

In terms of attracting investment in the coming time, Ho Chi Minh City has many incentive policies for projects in 4 key industries, which are food processing, chemicals – rubber, mechanical and electronic - information technology. The field of food processing has received a lot of attention from many foreign investors and the fact that many large-scale investment projects have been licensed.

Source: https://www.antconsult.vn/news/industry/foreign-investors-implement-food-projects-in-vietnam.html

 

US Investors Continue Pouring Capital into Vietnam

 Vietnam has become an attractive destination for US investors, up to now, the United States ranks 9th among countries and territories set up company in Vietnam with foreign direct investment.

Dow Chemical, Coca-Cola, Uber... are well-known US companies that deploying expansion investment projects in Vietnam. In addition, such names as Exxon Mobil, Cargill, General Electric, Johnson and Johnson, Pfizer... have become familiar, not only because of the huge capital brought into Vietnam, but also help to increase production capacity, contributing to Vietnam's export growth.

Presently, thanks to the good relationship between the two countries, the investment and business environment in Vietnam has been improved. Many US businesses have signed large contracts with Vietnamese enterprises, concentrating on the fields such as oil and gas, information technology, animal feed and electronics.

According to information from the American Chamber of Commerce in Vietnam (AmCham), many US businesses are working with the authorities to expand their projects in Vietnam.

Meanwhile, the big names that have long presence in Vietnam also urgently deploy expansion plans. Cargill Vietnam Co., Ltd is expanding its operations in Vietnam, in addition to the successful field of animal feed production. It is expected that by the end of this year, Cargill will put into operation a 10 million USD warehouse at Phu My port in Ba Ria - Vung Tau province.

Cargill also plans to work with the Ministry of Transport on investment in the northern port project to expand its range of operations in many investment sectors in Vietnam.

Dow Chemical, a large US chemical company, after more than 20 years of operation in Vietnam, the company is intending to expand its operations in 2017. Dow Chemical is cooperating with many companies in Vietnam in the fields of agricultural chemicals, biotechnology and services. Furthermore, with long-term investment commitments, in addition to raising capital, Dow Chemical is ready to assist Vietnam in developing a national list of chemicals for research and development.

Statistics show that, up to May 2017, US businesses have invested in 834 projects in Vietnam, with total registered capital of 10.2 billion USD, ranked 9/116 countries and territories that have investment projects in Vietnam.

Moreover, according to an AmCham survey of 100 US companies in Vietnam, 72% of respondents said that Vietnam's investment environment was improving, much better than Myanmar, Malaysia, Thailand and Brunei.

US investment capital flows into Vietnam are no longer tied up in some areas of high profitability as before. Presently, some conditional business areas such as casino, entertainment... are expected to attract more capital from US businesses.

For example, Time Warner Inc., the world's leading media and entertainment company, is also looking for direct investment opportunities in Vietnam.

So far, most of the key businesses in Vietnam are having the presence of major US investors, typically oil and gas sector with famous names such as Exxon Mobil and Chevron; Boeing, ADC-HAS Airport in the field of aviation; Information technology with Microsoft, Intel, Apple, HP; Electrical appliances with General Electric, General Atlantis and AES...

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/us-investors-continue-pouring-capital-into-vietnam.html

Game on Mobile Phone Industry in Vietnam

  About 3-4 years ago, the world's game industry is undergoing a very big transformation, witnessing the rise of mobile gaming which outperformed the traditional platforms such as PC or console. In Vietnam, the gaming industry also falls in line with the world trend, many new companies or even large organization had developed mobile game.

In 2015, internet users in Vietnam reached 45 million, accounting for 48.4% of the total population of 93 million. The smartphone users reached 24 million, accounting for 25.8% of the total population, of which 9.3 million of mobile gamers and players loaded fee rate was 45%, reaching ARPPU index (average revenue average per player) is $ 27.71 (619.000 VND).

Until the end of 2015, the number of smartphone devices in Vietnam has reached $37 million, accounting for 52% the total number of mobile devices in the country. It can be seen from the General Statistic Office that from 2012 to 2015, 10 million devices have entered Vietnam’s market each year. Besides, Vietnam's market has not come to saturation, so the potential growth for mobile gaming devices will continue to stay strong for at least 5-10 more years.

In terms of proportion of smartphone users based on age, the largest groups is from the age of 16-34 years old which accounted for 80% in 2015. In this group, the users from 16 - 24 years old take up to 45%. Besides, it can be noticed a remarkable rise of user groups of the age of 16-24 since this percentage rose from 20% in 2013 to 45% in 2015, indicating a huge change of demand of smartphone and purchasing power of smartphone.

If classifying users according to operating system, Android is still the most popular operating system in Vietnam in 2015 which accounted for 60% of users, followed by the 25% of iOS and Windows phone has the smallest market share of 15%. However, Windows phone showed significant change in 2015 when compared to 2014 (4%).  It indicates the development of a new market alongside iOS and Android. This is a unique point in the Vietnam mobile gaming market compared to other countries.

In terms classification depending on by device users and gender, smartphone devices still dominated completely with 90.3%, while tablet only accounted for 9.7%. In terms of gender, the rate does not differ hugely with 58% male and 42% female.

Smartphone game market value in Vietnam in 2015 reach $ 116 million (2,592 billion VND), the growth rate was 39.75% compared with 83 million dollars (1,854 billion VND) in 2014.

In terms of marketing channel for mobile gamers, social network such as Facebook channel remains an ideal place to promote game which accounted for 45%, followed by the local ad network (Admicro, Nova Ads ...) accounting 30%, while Google and PR normally accounts for respectively 15% and 10%. Thus, both domestic companies that wish to penetrate the market will be highly recommended to use the ad unit local to achieve optimum efficiency.

In a paid form of payment, Vietnamese users can mainly use the phone (85%) to pay for the mobile gaming, followed by domestic bank card (10%) and Visa / MasterCard (5%). Thus, the mobile game usually have good links with the network provider of mobile phones in Vietnam. It is due to the fact that the users have not had the habit of using cards.

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.

Market entery into Vietnam market through merger and acquisition

  Over the past 10 years, Vietnam has always been one of the leading M&A destinations in Southeast Asia. Many international investors have chosen Vietnam as their place of business destination to set up company and apply for investment registration certificate under direct investment or acquiring shares or capital contributions through M&A.

M&A activities enable international businesses to take advantage of the existing business platforms of Vietnamese businesses to continue making investments. This helps international investors to timely grasp the changing trend of technology, legal policies, and facilities to do business, instead of rebuilding from scratch, it will take more time and effort.

Recently, the M&A market in Vietnam has been active and attractive to many investors around the world, especially in the retail and financial sectors. Many international investors have undertaken significant M&A deals in Vietnam over the years and achieved significant profits in their business.

There are many reasons for investors to choose Vietnam as a place to do business, but some of the main factors that make Vietnam attractive are political stability and its economic growth, despite the effects of the Covid-19 epidemic. In addition, with a population of 100 million people, this is considered a large consumption market, along with an abundant and high-quality labour source.

Currently, with the trend of moving production out of China, many investors have chosen Vietnam as the location of setting up company for manufacturing facilities. Rebuilding factories from scratch also makes investors time consuming and costly, therefore taking advantage of Vietnamese factories will help investors not to interrupt their production, and operate the business in a best way.

However, to be able to perform M&A activities in Vietnam, foreign businesses need to understand the Vietnamese market and partners before performing M&A. This will help investors understand the partners' strengths and weaknesses, and outline a suitable business path after implementing M&A. In addition, to avoid unnecessary risks relating to the transaction and to the business itself, investors need to find a reputable and experienced professional consulting company that could help with market research, background check, management criminal record check, business certificate verification, corporate and individual reputation to build up confidence in doing M&A deal in Vietnam.

Startup in Ho Chi Minh City Will Be as Convenient as in Singapore

  A series of specific commitments has been confirmed by HCMC’s Party Secretary Nguyen Thien Nhan to help startup environment in HCMC becoming as favorable as in Singapore.

The city is committed to preparing an industrial park reserved for newly startup and innovative businesses. Secondly, the procedure for setting up company in Ho Chi Minh City will be as good as in Singapore. Third, in addition to private investment, the city will also, on a case-by-case basis, pilot public-private partnerships in support of innovative entrepreneurship.

In addition to the above 3 commitments, according to Mr Nguyen Thien Nhan, HCMC will have a general information page to reflect the creative start-up activities in the area. At the same time, he decided to meet face-to-face with the startup community twice a year to listen to their mind and remove difficulties in time.

In general, in the past year, HCMC has had very specific and significant results in comparison with other provinces in terms of start-up activities. According to director of the Department of Science and Technology of HCMC, this agency has set up 5 spaces to support innovative start-ups and links with 24 business incubators with a total floor area of over 22,000 square meters. Of which, 50% capital is from socialization.

In addition, The SpeedUp 2017 program has provided financial support tools from the budget for innovative startup projects through enterprise incubators. In the past 8 months, this program has received and processed 112 innovative startup project applications. The number of selected projects was 14/112 (12.5%), which is quite high compared to the current selection rate of many investment funds (VIISA reaches 5%, VSVA reaches 8%).

This year, the HCMC Department of Science and Technology has also set up 4 Steering Committee for Innovative Ecosystems for 4 key areas of the city, including mechanics, food processing, plastic – rubber - chemistry and information technology.

With a network of 145 consultants and innovative start-up advisors from many different disciplines, up to now, 938 start-up projects have been connected to help develop business ideas. There are 3,200 individuals and start-up groups connected to investors, experts and consultancy organizations. Moreover, over 300 startup products are promoted to the community.

However, a general assessment from the Department of Science and Technology of the City, most startups in Vietnam are newly invested at the seed stage with small scale and the possibility of breakthrough growth is not high. This is a matter of concern.

Toyoda Gosei Invests in Auto Parts Factory in Tien Hai Industrial Park

  Toyoda Gosei Group, the world's leading manufacturer of auto parts, supplying for Toyota (Japan) has decided to choose Tien Hai Industrial Park, Viglacera as the location to set up factory in Vietnam.

Viglacera Real Estate Trading Company and Toyoda Gosei Group of Japan have just signed a land lease contract with an area of 11.3 hectares in Tien Hai Industrial Park, Thai Binh province, which is invested by Viglacera Corporation.

Toyoda Gosei is the world's leading auto parts manufacturer, supplying for Toyota, with a network of about 100 factories and offices in 18 countries and regions.

The new plant is expected to be built in early 2018 and put into production in 2019 with a total investment of 24.6 million USD, specializing in the production of airbag components and airbags for safe protection for drivers and passengers in cars, leather and polyurethane coated car steering wheels.

Toyoda Gosei's products will be exported to Japan, USA, Europe and some other regions.

Toyoda Gosei has also invested in Hai Phong, with 3 large-scale workshops, and also one of the largest investment companies in Nomura Industrial Park in Hai Phong.

Tien Hai Viglacera Industrial Park has the advantage of geographical position when locating near the coastal highway connecting the 6 northern coastal provinces (Quang Ninh - Hai Phong - Thai Binh - Nam Dinh - Ninh Binh - Thanh Hoa), which has just started construction in May 2017. In which, the construction of the expressway locating in Thai Binh province will be completed by the end of 2018, shortening the distance and travel time from the industrial zone to Hai Phong port (40km) – 60 minutes).

In addition, enterprises in Tien Hai Industrial Park are also enjoying attractive incentives for enterprises in the economic zone such as 10% corporate income tax rate for 15 years, tax exemption for the first 4 years and reduction of 50% for the next 9 years; land rental exemptions from 11 to 19 years; import tax incentives; personal income tax incentives...

Therefore, only after less than one month since the decision to establish Thai Binh Economic Zone was issued, Tien Hai Viglacera Industrial Park has received the attention for information and investment decision from many investors coming from the countries like Japan, Korea, Hongkong, Taiwan...

In order to meet the increasing demand for land leasing to build factory in Tien Hai Industrial Park, Viglacera is actively promoting land clearance to ensure a large area of clean land, complete construction of infrastructure to create the most favorable conditions for businesses operating here.

IHI Corporation (Japan) Wants to Participate in Transportation Projects in Hai Phong

  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.

Tetra Pak Construct 110 Million USD Packaging Factory in Binh Duong

  Tetra Pak (Sweden) has started construction of a 110 million USD packaging factory on an area of 10,000 m2 and a total capacity of 20 billion packages per year at Vietnam - Singapore Industrial Park II - A (Binh Duong). This information has been announced since the end of 2016. The factory is expected to come into operation by the beginning of 2019.

According to the Deputy Minister of Planning and Investment, this is the factory with largest scale among 54 projects that Sweden investors have invested in Vietnam.

Moreover, he affirmed that the factory could become the leading bird, leading many Swedish businesses to come and set up business in Vietnam.

Sweden was the first country in the Western region that establish diplomatic relations with Vietnam. There will be many Swedish multinational corporations want to invest in Vietnam. Therefore, Vietnam in general and Binh Duong in particular need to prepare better investment environment to catch the wave of FDI, especially from Sweden.

According to representative of Tetra Pak, this is the company's most green packaging factory in their system, as well as the 4^th largest packaging factory in East Asia and Oceania in terms of scale.

The two popular types of packaging will be produced at the factory including Tetra Brik Aseptic and Tetra Fino Aseptic.

According to Tetra Pak, dairy and beverage products in South East Asia, Australia and New Zealand markets are expected to grow at a rate of 5.6 percent annually from now until 2019.

In Vietnam, milk production is still the largest sector in the country, which is expected to double consumption per capita to 28 liters per year by 2020. While the market for fresh fruit juice is expected to grow 17.5% in the next year. This is the basis for packaging factories - including Tetra Pak's factory to expect fast growth in the near future.

Signs of possible corporate frauds to notice and avoid

  Vietnam has signed many Free Trade Agreements with many countries and regions around the world, which makes international economic exchange easier. However, the expansion of international trade also makes many businesses at risk when they encounter fraudulent customers in their business.

According to the Ministry of Industry and Trade, in 2020, the Trade and Embassy of Vietnam in the a number of countries continuously received invitations to sell, buy goods and sign commercial transaction contracts which have signs of fraud and scams.

Despite many warnings and notices, but due to subjective psychology, high profits, limited foreign trade operations, lack of understanding of customers, difficulties due to epidemics, many businesses cannot directly meeting, checking goods,... using online transactions, which causes businesses to take advantage of fraudulent acts.

Some ways of commercial fraud activities such as: Unpaid delivery; Forging documents even bank papers to get goods; Set the person to get export documents; Using hackers to infiltrate the email addresses of two parties that are having transactions, track the progress of the negotiation, when the buyer prepares to transfer money to buy goods, hack the mailbox (or create an email account with the exact same address as the seller's email) to send fraudulent account information. After the buyer transfers money to the fraudulent account, they will immediately withdraw the money and disappear; Using advantage of carelessness and unprofessionalism of domestic enterprises such as not asking a reputable inspection organization to check the goods before delivery, not verifying information about partner enterprises... to transfer goods with no value, not in accordance with the contract, or to notify the damaged or poor quality goods to pressure the price, deduct the debt or claim compensation ...

Some signs of identifying fraudulent businesses which one should pay attention are: the price negotiation, the contract takes place easily, quickly, less bargaining, accepting high prices; Deposit to receive investment money; Do not provide or provide documents of many different legal entities; Opening L/C at a non-reputable bank in a third country; Business license is about to expire ...

In order to avoid working with fraudulent partners, businesses need to improve their professional expertise, legal knowledge, and thoroughly understand their partners before making transactions, especially the new partner is dealing for the first time.

The current commodity prices could be updated through market information or on international commodity websites. Therefore, when there is a request for goods to be paid too high, or too low compared to the prices in the market, the enterprises need to pay close attention and carefully check their reliability.

It is also possible to reduce the risks through the professional service of local risks management in Vietnam for conducting of business due diligence, business license record checking, site visit survey, shareholders or directorship checking, criminal record certificate checking, business reputation verification, public reputation search, research for records of enterprises, research for the reputation of the company, …

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Set-up Business 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:

a)     Set-up Limited Liability Company in Vietnam

Limited Liability Company is a form of enterprise which is established by contributing of members.  A member shall be liable for the debts and other property obligations of the enterprise within the amount of capital that it has undertaken to contribute to the enterprise.

Limited liability companies are regulated by two types:

-    One member Limited Liability Company is an enterprise owned by one organization or individual;

-     Limited Liability Company with two or more members is an enterprise owned by organizations or individuals, in which the number of members shall not less than two members and not exceed fifty.

Organizational and management structure of Limited Liability Company normally comprise of a Member’s Council, General Director or Director.

b)     Set-up Joint Stock Company in Vietnam

Joint Stock Company is an enterprise which has charter capital divided into equal portions called shares.   The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.

Shareholders shall be liable for the debts and other property obligations of the enterprise only within the amount of capital contributed to the enterprise.

Joint Stock Companies may issue all types of securities to raise funds.  Founding shareholders must together register to subscribe at least twenty per cent (20%) of the number of ordinary shares which may be offered for sale.

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.

c)     Set-up Partnership in Vietnam

A partnership is an enterprise which must be at least two members being co-owners of the company jointly conducting business under one common name.  In addition to unlimited liability partners, there may be limited liability partners.

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.

d)     Set-up Representative Office of Foreign Trader in Vietnam

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.

Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

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), but the representative Office is permitted to

• To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;
• To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;
• To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;
• To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

e)     Set-up Branch of Foreign Trader in Vietnam

The Branch of a foreign business entity in Vietnam (referred as “The Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and 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.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

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.

f)      Investment by Signing Contracts in Vietnam

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.

The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:

(i)              Construction, operation and management of brand-new infrastructure facilities; and

(ii)             Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:

•     Roads, bridges, tunnels, and ferry landings;

•     Railway bridges and railway tunnels;

•     Airports, seaports and river ports;

•     Clean water supply systems; sewage systems;

•     Wastewater, waste collecting and handling systems;

•     Power plants and power transmission lines;

•     Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and

•     Other projects as may be determined by the Prime Minister

Set-Up Company in Hanoi

  Along with the trend of integration in the world, Vietnam is considered a country with rapid and strong growth, in which, industrialization and modernization are focused on developing a uniform set and achieve high performance. Hanoi and Ho Chi Minh City are considered the two cities and dynamic development in Vietnam.

In particular, Hanoi, the potential capital for developing and attracting foreign and domestic investment. Therefore, the investment from businesses to the city is seen as an advantage and the best. To evaluate how such advantages are, the following article will analyze in detail as follows:

First, the labor force

Hanoi is considered a capital with a longstanding historical developed tradition. The population is heavily crowded, reaching about 7 million after 4 times of adjusting the administrative boundaries in 2014. Ha Noi has become one of the 17 largest cities in the world. In addition, with favorable conditions, Hanoi is considered an attractive city for labor, especially qualified and highly skilled workforce. This is a particular advantage for businesses to invest in Hanoi, because the amount of labor leads to a consequence that cost for labor is cheap and a large workforce will provide for industries requiring a large amount of labor force.

Second, the pace of economic development

In 2014, the economy of Hanoi has continued to grow and controlled inflation. In addtion, GDP in the province is estimated at 8.8% and revenue is estimated at 130.000 billion, with 103% of the mathematics. Besides, administrative reform, improvement on the investment environment, business environment, policies to remove difficulties for enterprises often deploy, which made PAR index of cities rise 2 levels compared with 2012 and No. 5 of the 63 provinces and cities nationwide. Thus, with the stable and strong economic development, Hanoi is a city that brings stability for businesses to invest and develop business in this city.

Thirdly, facility

With the aim of developing Hanoi based on critirea of synchronous and modern infrastructure, leadership of Hanoi has attempted to offer policies to promote infrastructure construction of the city in order that Hanoi will become more modern, in which, the traffic system in Hanoi must be built and upgrades more modern. This is considered particularly advantage, because the synchronous development of infrastructure will bring to the development of economy of the city.

Fourthly, administrative and tax policies

With attractive policies for investment, Hanoi has implemented policies solving administrative procedures with only a door. This policy is seen as a new step forward the people of Hanoi in general and businesses having demand to invest in Hanoi in particular. With this open policy, the procedures for establishing businesses, dissolution, business transformation become quickly and easily than ever before, creat favorable conditions for the development of business and resolve administrative procedures. In addition, in order to facilitate business development for businesses, Hanoi has many policies to reduce taxes in order to create favorable conditions for development of new business with low capital.

Fifthly, geographic location

Judged to be a convenient location, with synchronous traffic system, a northern – southern railway, highway 1A, along with the expanded domestic and international routes, Hanoi is considered a city with the most convenient trade location in Southeast Asia and the gateway to the East Sea of Laos and other countries. Thus, Hanoi is the right choice of businesses that need an exchange between domestic and international provinces.

Sixthly, broad market

With the population of 7 million, belonging to one of the 17 cities with the largest population in the world, Hanoi is considered a city which has the largest consumer goods market in the country. Abundant work force, along with the large number of people from suburbs, strong demand for consumer products, services lead to favorable conditions for businesses in production and consumption of consumer products and services. These come from a reason that if the demand rises, the number of products will also lead to increase and as a consequence, economic growth of enterprises will also increase. It can be said that this is a particular strength of the city that businesses investing here are looking forward. From the analysis given above, it can be said that Hanoi is considered to be an attractive destination for small and medium enterprises, especially for enterprises with foreign investment into the Vietnam market. To better understand how to establish enterprises and choose the best type of enterprise. 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. We have a lawyer to advise on setting up a company inHanoi, a lawyer in Ho Chi Minh and a lawyer in Da Nang.

Anam Electronics (Korea) Build 100-Million-Dollar Factory in Vietnam

  A large electronics manufacturer from Korea - Anam Electronics Vietnam has officially choose Dong Van IV industrial park to set up business in Vietnam.

After a period of researching investment locations in the North of Vietnam, Anam Electronics Vietnam decided to choose Dong Van IV industrial park as its investment location.

Accordingly, Anam Electronics Vietnam will invest in building a factory here with an area of 100,000 m2, investment capital is estimated at 100 million USD.

The signing ceremony of land lease contract in Dong Van IV industrial park was held between Viglacera Real Estate Company and Anam Electronics Vietnam.

Anam Electronics is a 100% Korean owned company specialized in producing high quality electronic audio products such as: amplifiers, digital receivers. The company mainly supplies products to leading audio manufacturers in Japan, USA such as Harman Kardon, Denon, Marantz, JBL, Yamaha...

Viglacera's Dong Van IV industrial park has successfully attracted 10 investors, most of which are electronics businesses with nearly 40 hectares of land.

So far, Dong Van IV industrial park has been the destination of many domestic and foreign brands such as Masan Group, Sunjin, Jeio Vina, James Tech, Saki, Park Electronic Vina, Sunjin F & F Limited...

Dong Van IV industrial park is conveniently located, 50km from Hanoi, on Highway 38, which is easily accessible from the Ha Noi - Hai Phong expressway to Hai Phong port. Along with the policy mechanism to support the investors of Ha Nam province, Dong Van IV industrial park has received great attention from investors, and became the ideal choice for enterprises, especially FDI enterprises.

Potentials in Vietnam - Poland Agricultural Cooperation

  Both countries have strength in agriculture sector, opening up many prospects for Poland enterprises to set up business in Vietnam and vice versa.

Vietnam is one of 14 important markets in the world for enterprises in the Polish food and agriculture sector. Moreover, Vietnam has been identified as a priority market for Poland's future cooperation with wide open opportunities for both sides.

Statistics show that from 1993 up to now, two-way trade turnover between Vietnam and Poland has increased continuously and rapidly. From 2001 to 2006, two-way trade increased about three times, from 117 million USD to 330 million USD.

By 2016, this figure has reached nearly 790 million USD. It is forecast that two-way trade turnover between the two countries in 2017 can reach 1 billion USD, because in the first nine months of 2017, imports and exports between the two countries has reached nearly 700 million USD.

Poland is now Vietnam’s number 1 customer in Eastern Europe. In particular, Vietnam imported dairy products, meat and poultry products, apples and other agricultural products from Poland.

According to the Vietnamese ambassador to Poland, if compared to other sectors, agriculture is an area in which Vietnam and Poland are more promising.

In particular, when Poland becoming an important link in Europe, with the approval of the Europe - Vietnam Free Trade Agreement (EVFTA), Vietnam's goods may pass through Poland to penetrate Europe. The prospect of cooperation of both sides in the coming time is very positive.

Recognizing the opportunities for cooperation between Poland and Vietnam in the field of agriculture, according to Activ Company, Vietnam is one of the markets for apples and apple juice that Activ wants to concentrate in the coming period.

Accordingly, Activ is setting up business with partners in Vietnam to expand the distribution channels of apple and apple juice products in Vietnam. This is also Activ's strategy movement to catch the market when EVFTA officially comes into effect. EVFTA will be a trade agreement that brings together many opportunities for cooperation between the two countries in the field of agriculture, the sector that the two countries have strong advantages.

Therefore, in order to promote cooperation between the two sides, the two countries must strengthen the information connection so that the two sides can grasp the market and seize the partnership to build for future connections.

A Chain of 130 Restaurants in Japan Want to Conquer the Vietnamese market

  Gyu Shige - a Japanese restaurant brand decided to enter and set up business in Vietnam, aims to open 70 branches in Vietnam in the next 5 years.

According to Mr Kentaro Takada, Global Development Director of Gyu Shige Bbq Restaurant chain, after a year of operation in Vietnam, the company aims to set up a chain of 30 branches in 3 years and up to 50 - 70 branches in 5 years. This brand now has 3 stores in Ho Chi Minh City (HCMC).

The plan to conquer the Vietnam market of this Japanese brand has been in place for 3 years. Large populations, prefer Japanese culture and bbq dishes are the advantages for them to do business in Vietnam. Through partnerships and direct exploration, Gyu Shige has officially entered Vietnam in 2016 with its first store in a major trading center in HCMC.

According to representatives of Gyu Shige, Vietnam has been an economic hot spot in Southeast Asia for several years, attracting many investors. Unlike the fierce competition of the food industry in Thailand, they see many opportunities to develop and decide to choose Vietnam as the first overseas market.

With the strength of a chain of 130 successful restaurants in Japan, this brand almost delivers the original to Vietnam. The reason is that Vietnamese people love Japanese food and adapt quickly to new dishes. Beef is imported from the US, raw materials used for processing and sauces are imported from Japan and vegetables originate from agricultural farms in Dalat (Vietnam). In order to ensure quality, the central kitchen is equipped with full equipment like in Japan, so that the processing and preservation process are also following strict procedures.

The global development director of this restaurant system believed that their advantages are the delicious sauce and following the friendly restaurant segment, with spending of 10 USD to 17 USD per person per meal. Moreover, with the development of the fast-food market, demand for food will be higher, especially for friendly restaurant segment. Therefore, this will be a great potential for business in the future.

After one year of operation, Gyu Shige's sales in Vietnam grew by nearly 50% month-on-month, with over 70% of customers returning. That is why businesses decide to go deep into the market, targeting 50 - 70 branches and covering the whole country in 2022.

Representatives from the brand said that in the next 3 years, the segment of Japanese cuisine in Vietnam will continue to boom. Gyu Shige has over 20 years of development with 130 branches in Japan. After Vietnam, the company plans to conquer other markets such as Australia, USA, Singapore, Thailand...

Shenzhou Completed Textile Production Chain in Vietnam

  Worldon Vietnam Co., Ltd (under Shenzhou Corporation, China) have set up business in Vietnam with 2 large garment projects. It is likely that they will continue to expand its investment.

Worldon Vietnam has put the 310 million USD project in Dong Nam Industrial Zone, Cu Chi District, Ho Chi Minh City into production. Earlier, in early 2015, the company was licensed by Ho Chi Minh City for investment project with an additional investment capital of 140 million USD.

At the time of raising capital, Mr Ma Jianrong, President of Worldon Vietnam said that Shenzhou is a manufacturer of complete knitwear products, from the initial stages to the final garment products for famous fashion brands in the world such as Nike, Adidas, Puma, Uniqlo... The project is expected to complete all stages to go into production right in 2015. However, the extension of the project was suspended and early in 2016 was restarted.

Regarding this project, according to the Management Board of Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), this is the largest textile and garment project in industrial zones of Ho Chi Minh City. Although the city has a policy of not attracting labor-intensive projects, including textile and apparel projects, this project has been licensed since investors committed to using the most advanced equipment and technology in the textile industry.

This is also the final stage of the production chain of the Shenzhou Corporation. Accordingly, the Gain Lucky Vietnam Garment Factory in Phuoc Dong Industrial Zone (Tay Ninh) will supply raw materials for factories of Worldon Vietnam. In addition, the projects of Worldon Vietnam have invested and built fashion design centers and production of garments, hats, shoes...

Thus, with the 2 above projects, this Chinese investor has poured over 700 million USD in Vietnam. With the completion of the textile and garment chain from the fiber stage to the final stage, it is likely that the company will continue to expand its investment.

As of November 20th 2017, Vietnam has 24,580 effective foreign direct investment (FDI) projects, with a total registered capital of 316.91 billion USD. The export value of the FDI sector accounts for about 70% of the total export turnover of the country. In the past 11 months, textile and garment export turnover reached 23.6 billion USD, increase by 9.5% over the same period of 2016.