Quang Ninh Is About to Receive 40 Million USD of FDI From Korean Investors

Recently, Chairman of Bumjin Electronic Company from Korea had a meeting with Chairman of Quang Ninh People’s Committee on the implementation of the project in Quang Yen town.

Accordingly, the Company is preparing to deploy the investment project to build audio equipment factory in Dong Mai Industrial Park, Quang Yen Town, Quang Ninh Province with a total investment of 40 million USD. It is expected that the project will be started construction and go into production in December 2019.

Chairman of Quang Ninh People’s Committee affirmed that the investment project of Bumjin Electronic Company is the area that Quang Ninh province is prioritizing to attract investment. To ensure on time schedule that the company has set, Quang Ninh province confirmed to provide maximum support during project implementation.

He also shared with investors that Quang Ninh province is proposing the Government to allow the establishment of Quang Yen coastal economic zone with better preferential policies. At the same time, Chairman of Quang Ninh People’s Committee expressed his desire that besides the project implementation, Bumjin Electronic Company will become a bridge to connect Quang Ninh and Korean investors, contributing to promote investment activities of Korean businesses in Quang Ninh in the future.

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Samsung Invests Aggressively in Bac Ninh Province

With the favorable and open business environment, Vietnam has committed to be the attractive investment destination for multinational enterprises to come and set up business in Vietnam.

Samsung wants to raise the total investment in Bac Ninh to 6.5 billion USD and transferred the model from high-tech project to large-scale project…

Bac Ninh Provincial People’s Committee has just sent an official letter to the Prime Minister on supporting Samsung Display Co., Ltd Vietnam (SDV) in the process of project expansion in Bac Ninh province.

According to the Provincial People’s Committee of Bac Ninh, so far SDV has raised investment capital to 4 billion USD. Reportedly, SDV’s total revenue in 2015 was 2.7 billion USD, in which exports reached 2.5 billion USD. Accumulated to October 2016, SDV has revenue of 5.9 billion USD.

Project disbursement schedule of Samsung by the end of 2016 is estimated at 2.5 billion USD. Expected in 2017, Samsung will disburse the registered capital of 4 billion USD in Bac Ninh.

Bac Ninh confirmed that SDV has done on schedule and as planned when the entire Module 3 project when come into operation will be a prerequisite to attract more companies to serve SDV.

Notably, SDV has expressed their desire to invest an additional of 2.5 billion USD, disbursed in 5 years since 2018. Thereby, raising the total investment in Bac Ninh to 6.5 billion USD.

Recently, according to Mr. Hyun Woo Bang – Deputy General Director of Samsung Vietnam, in 2016, although the Company has to face with the problem of Samsung Galaxy Note 7, thanks to the support of the Government and Ministries in Vietnam, Samsung has overcome difficult period. In 2016, revenue of Samsung Vietnam reached 46.3 billion USD; exports reached 39.9 billion USD, increased by 9.9% compared to 2015.

Samsung accounted for 22.7% of export turnover nationwide, a slight increase compared to the rate of 20% of the previous year.

Reportedly, Bac Ninh is the province that attracting a lot of foreign investment projects in Vietnam. Moreover, Bac Ninh is the investment destination of 30 countries and territories around the world. Accumulated up to the present time, in the Industrial Zones in Bac Ninh province, 1,050 projects are licensed with a total investment of 13.1 billion USD. FDI sector has created 231,000 jobs.

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Kien Giang Continues to Welcome Investment Waves

With outstanding potentials and advantages, together with many large projects which have been invested in the area, especially efforts to strongly improve the business and investment environment, Kien Giang province expects to continue to welcome the wave of investment in the future.

Phu Quoc has been recognized as urban type 2 since 2014. Currently, Kien Giang province is waiting for the Government to approve the scheme on the establishment of Phu Quoc coastal city under Kien Giang province. From this policy, Phu Quoc has been focusing on investing heavily in developing essential infrastructure by domestic and non-budgetary sources…

Many key projects have been deployed and put into use, such as Phu Quoc International Airport, An Thoi International Seaport, Duong Dong Passenger Seaport, Ha Tien – Phu Quoc underground electric cable line, the road around the island, South – North main road, An Thoi cable car…

According to the Head of Phu Quoc Economic Zone Management Board, with many incentives, open mechanisms and interest of leaders, Phu Quoc is expected to grow strongly in a short time. Currently, according to the operation regulations of Phu Quoc island and Nam An Thoi island cluster, projects of organizations and individuals inside and outside the country investing in Phu Quoc shall enjoy the 10% enterprise income tax rate applicable during the project implementation period; Vietnamese and foreign people are entitled to a 50% reduction of income tax on high income.

Phu Quoc International Airport can welcome large aircraft with a flow of 2.6 million passengers per year. Besides, dozens of high-quality high-speed trains run Ha Tien – Phu Quoc and Rach Gia – Phu Quoc routes, bringing over 2,000 visitors to and from the island every day.

The synchronous investment has been effective. In 2018, tourists to Phu Quoc doubled compared to before the new airport opened. It is forecasted that in 2019, Phu Quoc will welcome several million visitors, of which about 30% are international visitors.

In addition to the highest investment incentive policies in the country, at the present, Phu Quoc investors are interested in a number of interesting issues such as: regulations allowing economic organizations, Vietnamese residing abroad, foreigners permanently residing in Vietnam, foreign-invested enterprises, foreign organizations and individuals may invest in the construction of houses for sale or lease, sub-lease or transfer of land use rights which has built infrastructure in accordance with relevant provisions of the law on land; overseas Vietnamese can buy houses…

Investors coming to Phu Quoc will receive maximum support from Kien Giang provincial government and Phu Quoc island district. If outside the jurisdiction, the locality is responsible for coordinating closely with ministries and agencies to promptly remove and create the best conditions for investors.

Up to now, in Phu Quoc district, there have been 265 detailed construction planning projects and master plan of 1/500 scale which have been approved with a total approved area of 7,384.98 ha. The number of accommodation rooms approved in the tourist areas is adjusted according to the general planning of about 80,141 rooms.

In recent years, Phu Quoc has changed clearly and comprehensively in all aspects, the economy has grown at an average rate of 27.52%/year; budget revenue reached over 1,000 billion VND per year; GDP per capita increased nearly 4 times compared to 2010; average tourism revenue increased by 43%/year.

It can be said, the results that Phu Quoc achieved have contributed significantly to the general development of Kien Giang province and created the strongest growth momentum in the Mekong Delta region.

Accumulated until July 15^th 2019, Phu Quoc has 299 valid investment projects in planning areas with an area of 10,585 ha.

In which, there are 36 projects in operation with an area of 1,182 ha, total investment capital of about 14,758 billion VND; 35 projects are under construction (6 projects have been partially operated) with an area of 3,203 hectares and a total investment of about 95,731 billion VND; the remaining projects are completing investment procedures.

Regarding foreign direct investment (FDI), up to now, Phu Quoc district has 31 FDI projects with a total capital of 293 million USD.

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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.

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How to Enter Financial Services Market in Vietnam

As the Vietnam economy continues to grow, financial services as well grows to keep up.  When most parts of the world were hit by global financial crisis in 2009, Vietnam was one of a few that enjoyed positive growth rate and HSBC in its Vietnam monitor issue volume 28 projected 7.2% growth in 2010.

The Vietnam financial market has been developing however still at immature stage.  The Vietnam stock market is one of the channel to raise capital for the development and it is getting more active, attracting investors from South East Astia.  There are more than one hundred securities companies founded to compete in the growing market in 2010.  Top ten companies control more than 50% of the market share in brokerage fee.  In the year 2008 and 2009, many companies have been suffering due to tough competition, poor management, bad market situation impacted by global financial crisis and lack of governance experience from Vietnam State Securities Commission.

According to World Trade Ornatization access commitments, the Vietnam securities company can be 100% owned by foreign firms by the year 2012.  The competition amongst players will be getting more fierce.  Japan is interested in acquiring Vietnam securities companies.

Financial services are typical products therefore owning some characteristics of its own kinds.  Consumer purchasing behaviour is greatly influenced by the type of financial product being purchased.  The emphasis of trust and having relationship, especially in the particular contracting contexts, are also of highly pertinent to the strategies of financial service providers (Beckett et al., 2000).  Corporate reputation dimensions associated with important variables encompassing of customer satisfaction, loyalty, trust, and word of mouth (Walsh et al., 2009) are also factors of considerations beside price, service quality, and relationships ( Bowman et al., 2000), convenience.

The study of how investors behave when it comes to decision of which securities companies to go with shall give insights into the buying behaviour of financial services in Vietnam and would add to the limited research in the area.

With rapid change and more sophisticated customers, it has become very important that financial institutions determine the factors which are pertinent to the customers’ selection process (Boyd et al., 1994) when considering entering Vietnam securities market.

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