Da Nang- Tangier (Morocco) cooperates in economic field | ANT Consulting

On April 14th, 2021, representatives of Da Nang city had an online meeting with representatives of Tangier city (Morocco) on the 60th anniversary of the establishment of diplomatic relations between the two countries (1961-2021).

At the meeting, representatives of Da Nang city shared the characteristics, potentials and similarities in the field in the development orientation of two cities, by this meeting, the two cities will continue to promote cooperation in a number of areas such as tourism, transportation, and trade. In addition, Da Nang is implementing the goal of both coping with epidemics, socio-economic development, promoting the image of the city as a safe destination for investors and tourists.

Specifically, in the field of tourism, is is encouraged cooperation between tourism and travel businesses. At the same time, parties are suggested to coordinate to organize tourism product survey teams, to connect tourism of the two cities; promote, advertise and introduce the image of Da Nang to Moroccan citizens.

In the transport sector, Da Nang side hopes that Tangier will support Da Nang in calling for businesses and investors of Tangier to invest in a PPP component (public-private partnership) of Lien Chieu port project to cooperate. Besides, invest in logistics centers according to the approved planning and support investment in marinas, inland water ports.

In the field of trade, the side of Da Nang city proposed the two parties to exchange and provide information on trade fair and prestigious events of the city; information on import and export enterprises; trade policy mechanism, etc. for imported goods to support trade connection, promote goods export – import.

Besides, two cities will support enterprises to research, learn and access each other’s goods market; connect businesses in the raw material supply chain to boost exports of potentially complementary products, coordinate in organizing or assisting enterprises to survey the market, creating conditions for all parties to arrange stalls or send goods for introduction at their local product introduction centers.

Bases on the proposals of Da Nang, the representative of Tangier city shared, Tangier is a locality with infrastructure for tourism and transportation. Tangier wants the two cities to concretize ideas of cooperation to connect tourism. At the same time, to create favorable conditions and optimize strengths to develop fields that both cities are interested in. In addition, the representative of Tangier city hopes that apart from the aforementioned fields, the two cities will be able to cooperate in the fields of technology, environment and sustainable development.

By the meeting, the two parties also expected that in the coming time, with the efforts of cooperation and economic development, investors from Tangier will make investment in Da Nang, to apply for investment certificate, to set up company, in order to make the most of the incentives investment in Da Nang, in order to reap its economic benefits.

Da Nang- Tangier (Morocco) cooperates in economic field | ANT Consulting

On April 14th, 2021, representatives of Da Nang city had an online meeting with representatives of Tangier city (Morocco) on the 60th anniversary of the establishment of diplomatic relations between the two countries (1961-2021).

At the meeting, representatives of Da Nang city shared the characteristics, potentials and similarities in the field in the development orientation of two cities, by this meeting, the two cities will continue to promote cooperation in a number of areas such as tourism, transportation, and trade. In addition, Da Nang is implementing the goal of both coping with epidemics, socio-economic development, promoting the image of the city as a safe destination for investors and tourists.

Specifically, in the field of tourism, is is encouraged cooperation between tourism and travel businesses. At the same time, parties are suggested to coordinate to organize tourism product survey teams, to connect tourism of the two cities; promote, advertise and introduce the image of Da Nang to Moroccan citizens.

In the transport sector, Da Nang side hopes that Tangier will support Da Nang in calling for businesses and investors of Tangier to invest in a PPP component (public-private partnership) of Lien Chieu port project to cooperate. Besides, invest in logistics centers according to the approved planning and support investment in marinas, inland water ports.

In the field of trade, the side of Da Nang city proposed the two parties to exchange and provide information on trade fair and prestigious events of the city; information on import and export enterprises; trade policy mechanism, etc. for imported goods to support trade connection, promote goods export – import.

Besides, two cities will support enterprises to research, learn and access each other’s goods market; connect businesses in the raw material supply chain to boost exports of potentially complementary products, coordinate in organizing or assisting enterprises to survey the market, creating conditions for all parties to arrange stalls or send goods for introduction at their local product introduction centers.

Bases on the proposals of Da Nang, the representative of Tangier city shared, Tangier is a locality with infrastructure for tourism and transportation. Tangier wants the two cities to concretize ideas of cooperation to connect tourism. At the same time, to create favorable conditions and optimize strengths to develop fields that both cities are interested in. In addition, the representative of Tangier city hopes that apart from the aforementioned fields, the two cities will be able to cooperate in the fields of technology, environment and sustainable development.

By the meeting, the two parties also expected that in the coming time, with the efforts of cooperation and economic development, investors from Tangier will make investment in Da Nang, to apply for investment certificate, to set up company, in order to make the most of the incentives investment in Da Nang, in order to reap its economic benefits.

Family Offices Services in Vietnam | ANT Consulting

Vietnam has been considered as an attractive fit for family offices. The Vietnam’s stock market has been around fifteen ten years. Fund certificates in various forms are available such as close ended fund, open ended fund, Exchange Traded Fund (ETF). Foreign investors are now allowed to hold up to 49% shares in a listed company and this room has been in the process to change in the near future. Although Vietnam market is considered small for pension funds or the similar, this market is a right fit for family offices.

Further, foreigners are now allowed to make direct investment, hold 100% and conduct business in most areas after the new investment law’s effective date of Jul 1st, 2015. The real estate law has been passed with effective on the same date with new investment law, allowing foreigners entering Vietnam to buy real estate.

We are a local professional management consulting firm with family office service that assist foreign clients with asset management and consolidated reporting of all the family’s assets.

In particular, we provide wealth management and tax planning, trustee and corporate services, and support with indirect investment, direct investment, real estate and family governance.

We are your consultants and we could act as nominee shareholder, nominee director, or provide management service that help you achieve the goal, and stay in private status at the same time.

We look forward to helping you find the family office services you need in Vietnam.

Vinhomes Attracts 1.3 Billion USD from Singapore Investment Fund | ANT Consulting

Vingroup (VIC) has announced that Vinhomes and a subsidiary of Vingroup have signed an agreement with GIC Private Limited – a Singapore Government’s investment fund. This event marked the continuous participation of Singapore investors, a familiar investor that has been and continues to invest in Vietnam.

Accordingly, GIC will invest a total of 1.3 billion USD (equivalent to 29,500 billion VND) in two forms: purchasing in Vinhomes’ shares and providing a debt instrument for Vinhomes (such as loans) to implement the projects. Credit Suisse Limited (Singapore) is the consultant unit of this transaction.

GIC is one of the three investment branches of the Singapore Government and is now one of the largest financial investors in Vietnam capital market. At the present, GIC’s main investments in Vietnam include Masan Group (~ 5% share), Vietjet Air (~ 5% share), Vinamilk (0.7% share), FPT (3.5% share), PAN Group, Vinasun… with the total value of about 15,000 billion VND.

Vinhomes is a subsidiary of Vingroup, in charge of real estate development. The company has chartered capital of 26,377 billion VND and has submitted to list more than 2.6 billion shares on HoSE in early April.

Vingroup currently is the largest company on Vietnam stock market with market capitalization of nearly 340 trillion VND (approximately 15 billion USD). Another subsidiary of Vingroup which was listed is Vincom Retail with market capitalization of 96 trillion VND.

Car Booking Application of Indonesia Pours 500 Million USD in Vietnam and Three Other Countries | ANT Consulting

Go-Jek – a car booking application from Indonesia has decided to pour 500 million USD to invest in Vietnam and 3 other countries.

Go-Jek – Indonesia’s most popular car sharing application has announced it will invest about 500 million USD to join four new markets, which are Vietnam, Thailand, Singapore and the Philippines in the coming months. Initially, they will only provide carpooling services, then expanding to other forms later.

Starting with carpooling, Go-Jek now offers food delivery service, online grocery stores and payment. Last year, Go-Jek had acquired three Fintech companies to increase its presence in Indonesia digital payment sector.

Go-Jek’s services are available in 50 cities in Indonesia. They are also supported by many well-known investors, such as Temasek Holdings (Singapore) and Tencent (China).

Expanding to new markets will increase competition between Go-Jek and its competitor – Grab (Singapore) in the region. Grab now also offers similar services, such as carpooling, digital payment and food delivery. Both are struggling to gain market share in Indonesia.

Earlier this year, Google invested in Go-Jek. According to Google, this move is consistent with their ambition to help Indonesia develop its digital economy and start-up. However, they do not disclose the specific amount.

Reuters also reported that Go-Jek had an additional 1.5 billion USD in a capital mobilization round in February. This company is currently valued at 5 billion USD, according to PitchBook – a financial data company.

Vingroup Produces Smartphone Called Vsmart | ANT Consulting

Vingroup has just announced that they will manufacture electronic devices, starting with the smartphone branded Vsmart.

Implementing the strategy to expand the field of industrial production, following the VinFast automobiles and electric scooters production project, Vingroup established VinSmart Company with a charter capital of 3,000 billion VND.

VinSmart will operate in two main areas. The first is the production of smart electronics, starting with smart phone branded Vsmart. The second is research, experiment and application of artificial intelligence (AI), automation and new generation materials.

Vsmart factory will be built at VinFast automobile production complex in Dinh Vu, Cat Hai economic zone (Hai Phong) according to international standards. In terms of technology, Vingroup is working with leading consulting firms to hire design consultants, find good experts, acquire the right to design components for smartphones and purchase equipment lines to produce phones.

Vingroup believes that the cooperation with leading partners will ensure that Vsmart smartphone manufacturing process is equipped with modern, advanced, optimized and ensure quality products.

In the second field, VinSmart will set up centers for research, experiment and application of artificial intelligence, automation and new generation materials and will actively study and buy patents to experiment in Vietnam to bring these innovations into production and life.

By participating in the field of experimental research and application of high technology and smartphone manufacturing, Vingroup expects not only to contribute to creating a new future for the Vietnam industry sector, but they also contribute to the building of a solid knowledge base, which captures opportunities for growth from the 4.0 technology revolution.

New Capital Flows from French Businesses | ANT Consulting

Opportunities are opening for Vietnam to attract more foreign direct investment (FDI) flows from France.

As planned, during the visit to Vietnam of French Prime Minister Edouard Philippe (from November 2nd – 4th), in the afternoon of November 2nd, a series of new cooperation agreements were signed between enterprises of the two countries, to promote bilateral trade and investment cooperation. On November 4th, a business forum will also be held in Ho Chi Minh City, attracting the participation of about 200 businesses from Vietnam and France.       

 

These moves are promising to open new opportunities for cooperation between the two countries’ businesses, which are believed to have great potentials and are on the rise. In fact, in March 2018, after a visit to France of General Secretary Nguyen Phu Trong, a series of new cooperation agreements were signed. Among them, there is an agreement between the T&T Group and the Bouygues Group (France) on investment cooperation of the no.3 urban railway project in Hanoi, with total investment estimated at 1.4 billion USD. The two Groups also signed an agreement on the BT contract (build – transfer) of a project to connect Ha Noi with Son Tay town (Nhon – Troi – Phung – Ring road 4 – Son Tay), cooperate to invest and develop the project of upgrading and expanding Hang Day Stadium…

In addition, there are cooperation contracts between Vietnam Airlines with Air France, Tre Viet (Bamboo Airlines) with Airbus…

In fact, there have been more positive trends in French investment into Vietnam since the beginning of this year. According to data released by the Foreign Investment Agency (Ministry of Planning and Investment), in the first 10 months of this year, French businesses have registered to invest 517 million USD in Vietnam.

France currently ranks in the Top 10 countries and territories with large investments in Vietnam, even ranks 1st among European investors have invested in Vietnam since the beginning of this year. If calculated cumulatively, France has invested in Vietnam 3.6 billion USD, surpassed UK.

When Prime Minister Nguyen Xuan Phuc was on a trip to Europe, the European Commission (EC) agreed to submit to the European Council for approval to officially sign the European – Vietnam free trade agreement (EVFTA), expected by the end of 2018, then submitted to the European Parliament for approval, scheduled for early 2019. Once this agreement has been formally adopted, a new door to promoting EU – Vietnam trade and investment will be opened. In this context, investment flows from France are also expected to grow strongly.

At the present, most French investment projects in Vietnam are implemented in the early stages of FDI attraction, such as BNP Paribas, Total, Schneider Electric, Renault, Technip…

Recently, some French investors started to increase their investment in Vietnam. Typical is Auchan with plan to invest 500 million USD to open retail system in Vietnam. Or Schneider Electric, with the inauguration of a new factory in Ho Chi Minh City, with 45 million USD investment capital in Phase I in 2017. In addition, Sanofi has 3 factories in Ho Chi Minh City…

Newer names, such as In Vivo and Olmix, are also boosting their investments in agriculture in Vietnam. EDF Group has been licensed to participate in Son My 1 Gas Power Project. In addition, Saint-Gobain is building a factory in Hai Phong city; Veolia, Suez and Vinci are actively pursuing water treatment projects.

Risk Management Necessity in Vietnam? | ANT Consulting

As Vietnam further integrates into the world business, more investors are eyeing Vietnam for investment. As part of investment due diligence, risk management are always well considered before foreign investors decide to do business with Vietnam partners.      

In any parts of the world including Vietnam, risk is an inevitable factor in business operation activities; higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business in order to make profit and create value to shareholders in import export transaction, investment, or merger and acquisition activities in Vietnam.

However, in our daily consulting practice, we have seen a number of businesses whom do not manage risk effectively and furthermore not fully understand about the risks that they are facing.

Typical risks in developing countries like Vietnam are political risks, policy risks, regulations risks, credit risks, bribery and corruptions, and organized crimes.

On daily transaction in trading, according to Vietnam Ministry of Industry and Trade, there are situations a number of corporate scams between Vietnam and foreign enterprises are reported. In particular, foreign companies sell goods or provide services to partners in Vietnam and in return the Vietnam partner fail to pay.

On a larger scale in FDI through business formation or M&A origination and execution, businesses that do not improve the risk management process will have to face with a lot of different types of risks: serious financial losses, adversely affecting cash flows and the value of shares, decreasing prestige with customers, employees and investors.

Many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management especially understanding business partners through corporate intelligence investigation, background studying, adverse media search through professional consultants in Vietnam whom understand languages, cultures, legal environment and business practices. Further searches could help foreign investors to understand the company itself, owners, shareholders, members of board of directors of partner companies whom make daily decisions of the business.

In the period that global crisis has been predicted that almost bottom out and start to show signs of recovery, although the recovery process can occur with different speed and characteristics depending on sector and location of the business, the fully preparation of business in all aspects including process and risk management strategy could helps business not falling into the passive and also have more possibilities to take advantage of growth opportunities after the recession.

Recently in Vietnam with the impact of high inflation rate and economic recession caused by the global financial crisis, enterprises are increasingly concern about risk management activities. Many experts believe that an effective and well organized risk management system will help businesses withstand and overcome fluctuations.

Vietnam Asks State-Owned Firms to Sell Foreign Currencies | ANT Consulting

Jun 02th, 2011, from The Wall Street Journal. HANOI—The State Bank of Vietnam has asked all state-owned firms to sell their foreign currency to banks beginning July 1, part of a plan outlined in February to eliminate the use of foreign money in the domestic market.

The central bank announced the directive Wednesday in a statement on its website. It didn’t provide details on the amount of foreign currency state-owned firms are believed to hold.     

The central bank also asked banks to raise their reserve ratio for foreign-currency deposits maturing in less than 12 months to 7%, from 6%. This will raise banks’ costs to absorb dollar deposits and should eventually force them to offer lower interest rates on such deposits, discouraging the public from holding dollars.

Hanoi-based bankers said the latest steps are in line with government efforts to boost the value of the local currency, the dong, and build Vietnam’s foreign-exchange reserves. On Thursday the central bank capped the interest rate offered on individuals’ dollar deposits at 2%—down from the 3% limit set in March—and lowered the cap for corporate accounts to 0.5% from 1%.

  

These steps come after the dong has lost more than 15% of its value against the U.S. dollar over the past two years. The central bank has devalued the currency four times but still has failed to stop the bleeding.

“Though the government has introduced various measures to control imports, monthly trade deficits have been rising fast so far this year, making the authorities come out with new steps to support the dong’s value and improve foreign reserves,” one executive at a commercial bank said.

According to Nguyen Hai Ha, an analyst with MBCapital, one of Vietnam’s largest fund management groups, the steps will help the central bank meet short-term targets on the reserves and the exchange rate.

In the long run, however, “the dollar is expected to rise because local reserves of the U.S. currency are thin, while trade deficits continue to rise,” the analyst said.

The central bank said companies will be able to buy back dollars later if they need them.

Vietnam’s trade deficit widened to $1.7 billion in May from $1.49 billion in April, its largest monthly deficit since December 2009, government figures showed.

The country’s trade deficit during the January-May period was $6.59 billion, compared with $5.46 billion deficit a year earlier.

Signs of possible corporate frauds to notice and avoid | ANT Consulting

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, …

Foreign Investors Implement Food Projects in Vietnam | ANT Consulting

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 1st 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.

UKVFTA- the cooperation between Vietnam and UK | ANT Consulting

On December 29th, 2020, representatives of Vietnam and the United Kingdom signed the free trade agreement negotiation between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA) in London, United Kingdom. It would open up opportunities for flow of goods and that investors from UK to make investment in Vietnam through setting up company, and manufacturing facilities.

After December 31st, 2020, the Vietnam – EU free trade agreement (EVFTA) will no longer apply to the UK due to Brexit, so the implementation of the signing of a free trade agreement between the two countries is essential to sustaining and developing economic cooperation. The UKVFTA is expected to help reduce import duties on goods from the UK to Vietnam and vice versa. In addition, the commitments in the Agreement will help develop trade and investment between the two countries in the coming time.      

In recent years, the UK is a major trading partner of Vietnam in Europe, the import-export turnover between the two countries has increased significantly, especially products of seafood, garments, wood products, agricultural products etc. Besides opportunities to promote exports, improve business investment environment, expand commodity supply, the UKVFTA also poses certain challenges in meeting the quality of goods to qualify for pressure tax incentives in the Agreement.

In order to make the most of the economic effects from the UKVFTA, there are UK investors to invest and produce products that meet the quality and demand conditions for the UK market is essential for Vietnam. Besides, in addition, the advantages of British investors such as finance, pharmaceuticals, chemicals…will benefit Vietnam. Investing in Vietnam in this industries will enable investors to take advantage of highly skilled labor, perfect facilities as well as investment attraction policies in Vietnam to bring the best benefits for investors. On that basis, Vietnam also learn the operations, management and experience from British investors, thereby helping to develop the domestic market. In addition, Vietnam also needs to import raw materials for UK manufacturing industries such as textile materials and leather to ensure compliance with the rules of origin in order to make the best use of incentives from the Agreement.

With the negotiation of the Agreement, this is a new beginning for the economic relationship between the two countries Vietnam and the UK during a period of many difficulties due to epidemics and economic crisis. In addition, this is a step towards further developing the diplomatic, cultural and educational relationship between the two countries in the future.

The Wave of New Technology Companies Wants to Choose Vietnam as The Destination | ANT Consulting

After the wave of technology companies pouring capital into Vietnam 10 years ago, there seems to be a wave of new technology companies wanting to choose Vietnam as their destination.

Last weekend, LG (Korea) went to Dong Nai to seek investment opportunities in items related to digital transformation and building smart cities in this province. According to representatives of LG, the Group is cooperating with a number of major corporations in the world to produce and supply 4.0 technology to deploy large smart city projects for some countries around the world.       

Dong Nai is implementing smart city project, so LG Group wants to participate in some categories, such as smart industrial parks, smart transportation, smart health care, smart factories, smart logistics… Funding to implement a smart city is about 15,000 – 20,000 billion VND.

Even as LG, after making its mark with the production complex of electronics, home electronics in Hai Phong (including 3 factories LG Electronics, LG Display, LG Innotek), at the end of last year, also set the ambition to make Da Nang become the Group’s information technology research and development (R&D) center in Vietnam. And now, although the information is not very specific, there is also a new investment direction.

The fact that Vietnam is promoting digital transformation has also attracted special attention from Taiwanese businesses. According to PwC’s research has just been published, the importance of Vietnam for Taiwanese businesses has increased from 18% in 2018 to 24% by the end of 2020 and ranked 4th, after the US, Japan and China.

According to Taiwanese PwC, the fact that the Vietnamese Government is actively focusing on promoting digital transformation will almost be a free ‘preferential’ policy for all foreign businesses to invest in Vietnam. Because, the impact of digital transformation not only helps reduce production costs, but also promotes efficiency and business performance here.

About 2 weeks ago, the leaders of Bac Giang province had a meeting to discuss with departments and branches to push up the clearance progress of Quang Chau Industrial Park (Viet Yen, Bac Giang). This industrial park has a total area of 426 hectares, but currently only 336 hectares have been cleared ground, the remaining 90 hectares have not.

Under the direction of the Vice Chairman of Bac Giang Provincial People’s Committee, the People’s Committee of Viet Yen district must focus highly on the work of site clearance for the remaining area, ensure early handover to the investor, even consider this is the top priority task.

It is easy to understand why Bac Giang province is so impatient. Provincial leaders want to soon hand over the entire premises of this project so that they can “welcome strategic investors”. The details have not been disclosed, but it is most likely related to the Foxconn Group’s investment expansion project that is about to be deployed in this industrial park. And most likely, this is the project that has been mentioned for a long time – 270 million USD, producing smart TV for a famous brand.

Meanwhile, Luxshare Group, after investing in building a factory in Van Trung Industrial Park, is also implementing another project in this industrial park, with an investment of 190 million USD. According to Luxshare-ICT Van Trung General Director, this new factory specializes in manufacturing all kinds of wireless headsets (bluetooth), smartwatches and bluetooth speakers.

In addition to the factories in Bac Giang, Luxshare is also in the process of expanding its investment in a factory in Nghe An. Meanwhile, Wistron Group has invested 273 million USD project in Ha Nam, while Pegatron Group has invested 2 projects 500 million USD in Hai Phong.

Looking at this angle, it seems that there is a next wave of investment in the high-tech sector pouring into Vietnam. In a report titled “Rising Star: The Role of Vietnam in Transforming Supply Chains in Asia”, according to Economist Intelligence Unit (EIU), Vietnam is still an interesting option for manufacturing operations and those looking to diversify supply chains in Asia.

According to the EIU, high-tech manufacturers will continue to receive incentives for many years to come and that is an advantage, so that along with other advantages, for example joining many trade agreements, Vietnam will become “a very convenient alternative name for a part of Chinese production”.

Why do we have to undertake background check before recruitment? | ANT Consulting

Recruitment is the process of screening and recruiting qualified people to meet a job in an organization in general and in particular business. Recruitment plays a very important role in business development. Effective recruitment will provide businesses with a team of skilled, active, creative employees and provide human resources in accordance with the business performance of the business. Only when doing well the recruitment stage can we do well in the next stages. Therefore, businesses need to recruit the right people right the first time as well as arrange them in an important position. 

Most of the information that enterprise has is provided by the employee and there is no verification of the information. And if the enterprise only relies on the information provided by the employee, it is likely that the employee is dishonest, or causes mistakes and avoid responsibility. To recruit “right employee, right job”, enterprise needs to check the applicant’s background.      

Checking employee’s background is to create trust between enterprise and employee. The background check includes: Verify Identification; Verify at home; Verify qualifications and certificates; Verify employment history at old jobs; Verify criminal records in Vietnam. 

Verification of the background helps to know personal information, origin, hometown, criminal status of the employee. Thereby, background check will minimize commercial risks; preventing fraud and internal theft better; increase security of data and documents in the enterprise. In particular, for important positions in the enterprise, the confidentiality of enterprise document information is extremely necessary. 

Verifying employment history at past jobs is to understand working process and the reason for job termination; obtain an objective view of the necessary competencies, skills and work experience. From there, enterprise could save time in searching for suitable employees as well as saving labor training costs. 

In addition, background check improves business efficiency, developes a team of integrity to meet the business requirements of the enterprise. Because recruiting well means finding out people to perform the job with the capabilities and qualities to complete the assigned work, then effective recruitment helps the enterprise perform well its business goal and improve profitability. 

Currently, the situation of fraud, diploma trading, or dishonesty in recruitment, many enterprises cannot control and verify all the information that employees provide. Enterprises need to check applicant’s background when recruiting to prevent fraud, internal theft; increasing security of data and documents in enterprises; decrease recruitment time and training costs. Besides, creating trust between businesses and employees; increase employee productivity and product quality as well as increase business profits. It is suggested to consult with professional background check company with proven track record in Vietnam to help with the local service. 

Gulf Group (Thailand) Targets 7.8 Billion USD Ca Na Gas Power Project | ANT Consulting

Gulf Group (Thailand) is looking to invest in LNG Ca Na Gas Power Project (Ninh Thuan), with a scale of 6,000 MW, with an investment of 7.8 billion USD. Not only Gulf, more and more foreign investors are interested in gas power projects in Vietnam. 

Gulf Energy Development Public Co., Ltd has just arrived in Ninh Thuan to propose an investment plan for the LNG Ca Ca Gas Power Project. Accordingly, Gulf wants Ninh Thuan to agree on the policy so that the Group can implement the LNG Port Project and the LNG Ca Na Gas Power Complex Project, with a scale of 6,000 MW, including 4 combined cycle gas turbine plants, each plant has a capacity of 1,500 MW. The project therefore has an investment capital of up to 7.8 billion USD, which is expected to be invested in the form of BOT, or other forms. 

According to the Vice-Chairman of the People’s Committee of Ninh Thuan Province, Gulf – with its financial experience and capacity (Gulf is a group of billionaires Sarath Ratanavadi and the third largest power generation company in Thailand) – will be one of the candidates for the province to choose for the LNG Gas Power Project and Ca Na Power Center in the future. 

On September 2018, together with the promulgation of specific mechanisms to support Ninh Thuan’s socio-economic development, Vietnam Prime Minister agreed to allow this province to research and develop LNG Ca Na liquefied natural gas and gas power complex with appropriate scale. And since then, Ninh Thuan has planned to promote investment in this project. 

And indeed, right after the Government approved the policy for Ninh Thuan to develop LNG gas power complex, many foreign corporations came to Ninh Thuan to consider the possibility of investment projects. Notably, that is the Korea Electric Power Corporation (KEPCO). In Ninh Thuan, KEPCO plans to invest in a gas power plant with a capacity of about 3,000 – 4,000 MW, covering an area of about 40 hectares. 

Earlier this year, KEPCO went to Ninh Thuan to survey the location and expressed its desire to invest with provincial leaders. And KEPCO is also a potential partner. Currently, in addition to domestic power projects, KEPCO is operating and developing 37 projects in 25 different countries around the world, including nuclear power projects, coal thermoelectricity, gas thermal power, new and renewable energy, mining. 

In addition, Total Corporation of France signed an agreement with Ninh Thuan Provincial People’s Committee to research and develop the Ca Na Ninh Thuan Gas Project Complex from November 2018. And recently, this investor has continuously come to Ninh Thuan to discuss issues related to this project. Total also proposed Ninh Thuan Provincial People’s Committee to propose the Ministry of Industry and Trade and the Government to add the project to the planning. 

As planned, Total will work with partners such as Siemens, Vovatek (Russia) and A&A Vietnam Investment and Technology Company Limited (A&A) to deploy Ca Na Gas Power Project with a total capacity of 4,500 MW, in which phase I is 1,500 MW; total investment is 1.2 billion USD.

The US Increased Imports of Vietnamese Goods | ANT Consulting

Vietnam could become the seventh largest exporter to the US in 2019 if it can maintain the growth rate of 40.2% as in the first quarter. 

According to the data announced by the US Bureau of Statistics, in the first three months of 2019, the export speed of goods from Vietnam to the US increased by 40.2% over the same period last year. This is the fastest growth rate among the 12 largest exporters to the US in 2018. Behind Vietnam is Korea with a growth rate of 18.4%. On the other hand, Chinese goods to the US fell 13.9% amid increasing trade tension between the two countries. 

If maintaining the growth rate in the first quarter for the rest of 2019, Vietnam could surpass the big ones like France, England, Italy and India to become the 7th largest commodity exporter for the world’s largest economy, with an estimated value of nearly 69 billion USD. Last year, Vietnam ranked 12th with the value of goods exported to the US reached more than 49.2 billion USD. 

According to the statistics of the General Department of Customs, in the first 4 months of this year, the US continued to be the largest importer of Vietnamese goods such as textiles and garments with value of 4.42 billion USD, increase by 9.1% compared to the same period last year; footwear (2 billion USD), increase by 13.5%; machinery, equipment, tools and spare parts increase by more than 54% (1.3 billion USD); wood and wood products (1.42 billion USD), increase by 34.7%. 

In early May, US President Donald Trump also mentioned that producers could choose Vietnam as a destination after leaving China. According to the Fitch credit rating agency, there were signs that Vietnam could benefit from the impact of trade tension from the flow of trade out of China.

British Investors Proposed to Invest in Wholesale Market in Gia Lai | ANT Consulting

Chairman of Gia Lai Provincial People’s Committee has just had a meeting and worked with Chairman of the Board of Directors of TKV Holdings International (United Kingdom), coming to survey and find out investment opportunities to set up business in Vietnam and in particular set up wholesale market project in Gia Lai province. 

At the meeting, representatives of TKV Holding International Cooperation Joint Stock Company expressed their interest in building wholesale market; electronic portal of wholesale market without managers; strategic product identification; advising on the province’s strategic product identification in the global value chain (building national product images) and Gia Lai province’s product consumption plans.     

The representative of the company also assessed that Gia Lai is a potential province and if implemented, the wholesale market model in Gia Lai will also have its own characteristics; At the same time, asking the province to provide additional issues related to regional planning and sector planning; local determination and orientation of Gia Lai province for the participation of enterprises in implementing this wholesale market model. 

At the meeting, Chairman of Gia Lai Provincial People’s Committee Vo Ngoc Thanh also raised a number of issues for the unit to learn investment such as the project scale of the wholesale market, the need to connect between the wholesale market and the people. production if the model is deployed in Gia Lai. 

Chairman Vo Ngoc Thanh expects TKV Holdings International Cooperation Joint Stock Company will soon agree with the province on how to do as well as speed up the implementation plans of this project. At the same time affirmed Gia Lai’s determination and will create favorable conditions for the unit through the Department of Planning and Investment to promote investment in implementing the wholesale market project in Gia Lai province in the early period. Best. 

At the meeting, Chairman of Gia Lai Provincial People’s Committee also raised a number of issues for investors such as the project scale of the wholesale market, the need to connect between wholesale market and producers if the model is implemented in Gia Lai. 

Chairman of the province expects TKV Holdings International Cooperation Joint Stock Company will soon agree with the province on how to do as well as speed up the implementation plans of this project. At the same time affirmed Gia Lai’s determination and will create favorable conditions for the unit through the Department of Planning and Investment to promote investment in implementing the wholesale market project in Gia Lai province in the shortest time.

The Politburo First Issued Resolution on FDI Attraction | ANT Consulting

For the first time after 30 years of attracting foreign investment in Vietnam, the Politburo issued a thematic resolution to guide in the coming years. 

On August 21st, General Secretary and State President Nguyen Phu Trong signed Resolution No. 50 on the orientation of perfecting institutions and policies, improving the quality and efficiency of foreign investment cooperation by 2030. 

In the period from now until 2030, the guiding point emphasized by the Politburo is to attract FDI selectively, taking quality, efficiency, technology and environmental protection as the main evaluation criteria. At the same time, priority is given to projects with advanced technology, new technology, high technology, clean technology, modern management, high added value, spreading and connecting global production and supply chains. 

In addition, the overall objective is to improve institutions and policies of foreign investment cooperation with high competitiveness and international integration. At the same time, basically overcome the limitations in building, completing and organizing the implementation of institutions and policies on foreign investment cooperation. 

The Resolution of the Politburo also supplements the provision on the conditions for national defense and security in the process of considering and issuing investment registration certificates with new investment projects and investment activities through the form of capital contribution and purchase of shares. 

The Politburo requires clearly defining the responsibilities of investors on environmental protection during the investment period, project implementation and operation of enterprises during the project implementation period. Along with these tasks, policies on investment management and supervision; innovation and efficiency improvement of investment promotion must be paid attention to. 

The Politburo noted that the emphasis on inspection, supervision and inspection is associated with improving the responsibilities of local authorities and heads; definitely deal with projects that cause environmental pollution, inefficient land use and business losses for many years, the project does not comply with its commitments. 

Statistics show that after nearly 30 years of receiving FDI capital, Vietnam has more than 23,000 FDI projects with a total registered capital of over 300 billion USD. In which, the total implemented capital is about 161 billion USD. Resolution 50 sets targets, registered capital in the period 2021 – 2025 is about 150 – 200 billion USD (30 – 40 billion USD a year); implemented capital of 100 – 150 billion USD. The period of 2026 – 2030, registered capital of 200 – 300 billion USD, implemented capital of 150 – 200 billion USD. 

Percentage of enterprises using advanced technology, modern management, environmental protection, towards high technology increased by 50% in 2025 and doubled (100%) in 2030. Proportion of labor through training in the labor use structure from 56% in 2017 to 70% in 2025 and 80% in 2030.

Why background check is needed when applying for second passport? | ANT Consulting

Nowadays, it is popular for individuals to have a second passport. It can be seen that in many countries, individuals are restricted to travel freely between countries. Typically, such nationals whom wish to travel abroad are required to apply for a visa which takes a lot of paper preparation for proof of financial status, legitimate reasons and waiting time. 

The investment for second citizenship will help investors get a more powerful passport, less limited mobility, especially in European countries. This is also an invaluable advantage for those who wish to expand their business opportunities internationally. Different countries will have different citizenship investment programs, the most common forms of contribution to national funds and investing in real estate in that country. 

However, in addition to the mandatory conditions for the investment, in order to be able to receive the passport, the investor also needs to go through a certain application review process. Normally, the countries that grant citizenship to foreign citizens will conduct judicial background verification, background check, criminal record, and the investor’s health status such as Cyprus, Montenegro, Bulgaria, Hungary. In particular, the applicant will have to be qualified for civil liability. There are countries that are particularly concerned about the investor’s health such as Malta, which requires the individual applying to have global health insurance, investors and families need to prove that they purchased health insurance in their immigration application. In Cyprus, in order to pass the document check, investors also need to provide proof of the investment money source. Similar in Malta, Montenegro the investors need to present documents proving that the money has legal origin. Sometime, there are needs to verify the legitimate of the documents provided by the applicants. 

Further, verification of employment, salary, income, assets are also important for the review process. To some extents, the investors and their companies are also assessed for reputation and adverse media impact. In some countries, investors need to have documents certifying that they have resided there for a specific period of time at the request of the Government. In Malta, for example, the investor needs to reside here for 12 months before applying. In Bulgaria or Antigua & Barbuda, after being granted citizenship, investors need to reside in these countries for a certain period of time. For the citizenship by investment program in Montenegro, the application will only be accepted when it is submitted through a government-licensed agent under the program.

Set Up a Business in Vietnam | ANT Consulting

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