Korean Investors Research to Invest in Solar Power Projects in Quang Tri Province

IL Yang Industrial Company (Korea) is planning to invest in Vietnam, conducting research, study, proceed to set up company building solar power plant in Quang Tri province, Vietnam.

On December 22nd, IL Yang Industrial Company (Korea) had a meeting with Quang Tri People’s Committee to discuss their investment in solar power project in Quang Tri province. Previously IL Yang Industrial Company had a field trip in Hai Lang and Vinh Linh district, Quang Tri province.

According to IL Yang Industrial Company, through surveys, the Company found that Quang Tri is a potential province to develop solar power. Therefore, in the coming time, the Company will continue to work with the province and other sectors to better understand the indicators to study, proceed to invest in building solar power plant in Hai Lang district with the capacity of 500MW and Vinh Linh district with the capacity of 200MW.

At the meeting, IL Yan Industrial Company expressed their wish to exchange relevant information as well as support and create favorable conditions from Quang Tri province’s leaders to study the project.

According to the People’s Committee of Quang Tri province, Quang Tri province is currently planning to attract investment projects in the field of industry, with priority in the areas of competitive advantage and environmentally friendly industries. In fact, there have been some solar power projects in the area.

The proposed investment in solar power plants in Hai Lang and Vinh Linh of IL Yang Company with advanced technology is suitable with the planning policy of locality. Since then, Quang Tri province is ready to cooperate, create conditions for the company to complete procedures and apply the maximum support policies of the province.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

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Ben Tre Province Welcomes Many Investment Projects

With the trend that many foreign enterprises come and set up business in Vietnam, recently, many investors have come to Ben Tre – the land of coconut to promote investment projects in various fields, with investment capital of tens of thousands of billion VND.

In addition to transport infrastructure, high quality coconut processing plant projects; projects in the field of tourism with the system of restaurants, hotels and resorts…, TTC Corporation is continuing to invest in the energy sector in Ben Tre province. Mekong Wind Power JSC (a member of TTC Corporation) has just been granted the investment decision by Ben Tre Provincial People’s Committees to invest in Binh Dai Wind Power Plant. The project has capacity of 30 MW with a total investment capital of 1,490 billion VND.

Moreover, the TTC Corporation also propose that Ben Tre province continue to create conditions for TTC to participate in locality – farmer connectivity programs to improve their gardens and create sustainable coconut material areas; construct Ben Tre coconut research center in Dong Go…

In addition, many other projects have just been granted investment decisions in Ben Tre, such as Ba Tri Wind Power Plant No.7 of Ben Tre Renewable Energy JSC (Ecotech), with total Investment capital of 6,543 billion VND; Binh Dai – Ben Tre wind power plant of joint venture between Asiapetro Energy JSC and Doarm Engineering Company (Korea), with a total investment capital of 180 million USD; the food processing factory of The Gioi Viet Co., Ltd with a total investment of 34 million USD…

Highly appreciating the investment environment in Ben Tre, General Director of The Gioi Viet Co., Ltd said that Ben Tre is a good place to invest because there are good policies, land rent expense is not high, the administrative procedures are very easy and provincial leaders are taking good care of businesses. Moreover, Ben Tre has abundant raw coconut materials to meet the production needs of enterprises; hardworking workers who have high sense of responsibility for their work.

According to the Chairman of Ben Tre Provincial People’s Committees, with the effort of creating sustainable development, Ben Tre province will continue to improve the investment and business environments and accelerate the reform of administrative procedures. Coming to Ben Tre, investors will be given the most favorable conditions to approach and successfully implement their investment projects. Coming to Ben Tre is coming to a land that rich in potential, rich in affection and diversity of industries with many investment opportunities. Coming to Ben Tre, investors will realize that this place is really a reliable, safe and convenient destination with many opportunities for development.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

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Vietnam Promotes the Development of Wind Power

The very first wind power plants, one in Binh Thuan and one in Bac Lieu, can be considered a breakthrough to pave the way for the construction of Vietnam’s wind power industry, which is expected to be pillar of the future power source in Vietnam.

In the field of renewable energy, hydropower and wind power are considered clean power sources

In fact, hydropower has hidden dangers for communities. On the other hand, wind power is friendly and gentle to humans. We can consider hydropower as an old power source and the wind power is the young one. While hydropower has been playing a vital role in the power industry of many countries, wind power has only been noticed and invested for about 5 – 10 years.

With the wind power plants in Bac Lieu, Binh Thuan and Ninh Thuan, recently, Vietnam Prime Minister has agreed to invest in a wind power plant in Khai Long resort – Ca Mau.

Under the direction of the Government, the investment objective of the above project is to build a wind power plant, connecting to the national electricity system and sell electricity through power purchasing agreement with the Electricity of Vietnam (EVN), contributing to ensure national energy security.

The plant will be built in Khai Long Village, Dat Mui Commune, Ngoc Hien District, Ca Mau. The total installed capacity is 100 MW on an area of land and sea of approximately 2,165 hectares.

The project will be implemented in the period from 2016 to 2018.

According to the Ministry of Industry and Trade, Vietnam currently has nearly 50 registered wind power projects but only about 10% of which are under construction, of which 3 projects are producing commercial electricity, which are Tuy Phong wind power project (Binh Thuan) with capacity of 30 MW; Phu Quy island wind power project with capacity of 6 MW in Binh Thuan; Bac Lieu wind power project with capacity of 16.5 MW.

Most recently, Phu Lac wind power project (Binh Thuan) with capacity of 20 MW and the total investment of nearly 1,100 billion USD has been started construction in July 2015.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

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M&A Wave from Korea to Vietnam Banking Sector

The success of many Korean banks in Vietnam makes Korean financial investors pay special attention to Vietnam banking sector. Investment methods that are most interested by investors are mergers and acquisitions (M&A).

According to information from the National Financial Supervisory Commission, Hana Financial Group (KEB Hana Bank) is preparing to buy shares of BIDV Bank.

Thus, the wave of investment from Korea to Vietnam financial and banking sectors have not stopped. Since the beginning of 2018, two Korean investors have successfully acquired two financial companies in Vietnam: Shinhan Card acquired Prudential Finance and Lotter Card acquired Techcombank Finance. Including KEB Hana, in 2018, Vietnam financial markets will welcome at least three new members from Korea.

According to the Director of the Korea Financial Supervisory Commission, Korean banks and finance companies are strongly attracted to the Vietnamese market.

In fact, even Korean financial investors operating in Vietnam are very optimistic about the potential development of the market. According to Director of Woori Bank, the Government of Vietnam is making great efforts in bank restructuring phase II, applying Basel II to strengthen the banking environment and attract more foreign investors. This will open more opportunities for investors.

Talking about the way to invest in Vietnam financial market, according to experts, in the coming time, the granting of licenses to establish banks in Vietnam will be more difficult, therefore, Korean businesses want to invest in the Vietnam banking sector should pay attention to the form of M&A.

Vietnam’s financial market is very potential, but foreign investor’s ownership rate is restricted (not to exceed 20%). However, the Government has allowed investors to buy 100% capital of weak banks.

Currently, digital finance is booming in Korea. Many banks like K-Bank, Kakao Bank allow customers to do transactions without human help. Shinhan, Woori and other Korean financial investors also want to quickly cover the Vietnamese market with the support of technology.

For example, Shinhan Card has just acquired Prudential Finance, but soon expressed its ambition to break the consumer lending market. According to Director of Shinhan Card, their annual sales amounted to 9 trillion won (about 180 trillion VND).

On the side of investors, according to CEO of Shinhan Bank Vietnam – one of the most successful foreign banks in Vietnam, the retail sector in Vietnam has many opportunities, keeping up fast with digital. Therefore, Shinhan Bank’s strategy is to focus on retail development in parallel with digital investment. Korean banks have a lot of experience in digital banking, plus the cultural similarity is a big advantage when investing in Vietnam.

With the technological strength, plus the strong wave of investment, Korean financial investors are really becoming a serious competitor in the financial market of Vietnam.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 730 86 529 or email us ant@antconsult.vn

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How Vietnam Real Estate Sector Performed in 2015?

Invest in real estate in Vietnam

The the real estate industry in 2015 have beee influenced by foreign investors and easier access to credit source.

With the credit easing policies, foreigners are allowed to buy houses in Vietnam and the infrastructure development has been the driving force for the recovery of the real estate market in 2015. The real estate industry outlook in 2015 will come from foreign investors and the easier access to credit source. Then, the B and C class apartment segment with prices ranging from 50,000 USD/apartments with full infrastructure, near the metro will attract attention in 2015.

Credit easing policy and interest rates on deposits and loans are at their lowest in 3 years; therefore, this is a good time to invest. Moreover, changes in Circular 36 will help reducing the risk factors for real estate loans, thereby creating more room for credit loan and lending rates are at their lowest in 3 years will encourage real estate businesses continue to develop projects to serve the increasing demand. It is expected that low interest rates will make the cash flow moving into other investment channels such as real estate.

Foreigners now can own houses are also the catalyst for the real estate market in 2015. Currently with nearly 80,000 foreigners are working in Vietnam, the home owning is expected to be a catalyst for the real estate market to become more active in 2015.

In addition, the lending conditions for the 30,000 billion VND lending package will be simplified, thereby helping to speed up the disbursement of this package in 2015.

The year 2015 witnesses the return of speculators, private investors in the real estate market. Mainly the apartments in segment A and B are their targets when the price of those segment decreased by 20 -25% compared with the peak of the market.

Besides, the development of infrastructure is also the motivation for the growth of the real estate market. With the expectation that in 2015 the Government will maintain the spending of over 3 billion USD for infrastructure, construction and expansion of roads, railways, power grids…, that will actively support the development of real estate market. The most obvious evidence is the construction of Metro no.1 in 2014 has attracted more real estate projects on the path of the Metro line.

Some notably infrastructure projects in 2015:

+ Complete Nhat Tan Bridge: The Ring Road 2 connect with the Nhat Tan Bridge will help reducing the travel time around Hanoi as well as connecting to Noi Bai International Airport. This will be a positive landmark for real estate projects in the northwest corridor of the capital.

+ Complete the Hanoi – Hai Phong highway: The 106 km long highway linking Hanoi and Hai Phong – the largest port city in Northern of Vietnam will help real estate projects in Long Bien and Gia Lam becomes more vibrant.

+ Complete the Ho Chi Minh City (HCMC) – Dau Giay highway and continue building the Ring Road 2 in HCMC will help the real estate projects in the Eastern of the city (District 2, 9, Thu Duc) becomes more attractive.

+ Construction of Ben Luc – Long Thanh highway: This is a part of Ring Road 3 that will connect Long An to Long Thanh International Airport in the future without having to go through the central districts of HCMC. The project is expected to help improving the real estate market in the Southern of HCMC.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 730 86 529 or email us ant@antconsult.vn

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