Benefits of Setting Up Company in Hanoi | ANT Consulting

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, ANT Consulting is honored to be served our customers and provide the best services for customers. We hope cooperation from you.

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Korean Investor Proposed to Invest in 200 MW Hydroelectric Power Plant at Chan May - Lang Co | ANT Consulting

Chairman of the People’s Committee of Thua Thien Hue province has just had a meeting and worked with the Director of the Busan Economic Promotion Agency (Korea) (BEPA) to learn about investment and development opportunities in Thua Thien Hue Province.

At the meeting, Director of BEPA has informed about investment orientation and investment promotion plan of Busan city abroad, including investment cooperation in Vietnam.

Through understanding the potentials and policies to attract investment of Thua Thien Hue province, the Korean agency wants to cooperate with Thua Thien Hue province to develop some investment projects and bring large enterprises in Busan to investment in the province.

Accordingly, the Korean side proposed to invest in a number of projects in Chan May – Lang Co Economic Zone of Thua Thien Hue province, namely investment in hydroelectric power plant, capacity of 200 MW and investment in construction of ports serving for the transportation of raw materials for power plants, and import – export activities. In addition, the Korean side wishes to study investment in infrastructure and industrial development investment projects in accordance with the investment attraction policy of Thua Thien Hue province in Chan May – Lang Co Economic Zone.

Chairman of Thua Thien Hue Provincial People’s Committee welcomed and highly appreciated BEPA’s desire and ideas for investment and development proposals in Thua Thien Hue province; Provincial departments and agencies will coordinate and create the best conditions for BEPA as well as Korean investors to study investment projects in Chan May – Lang Co Economic Zone.

For the investment in Hydro gas power plant, Chairman of the province proposed that BEPA should complete the dossier soon to submit to the Ministry of Industry and Trade for consideration and incorporation into the development investment plan and at the same time soon negotiate with EVN on the electricity prices serve as a basis for the effective investment of power plant in Chan May – Lang Co Economic Zone.

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The advantages of attracting FDI to Vietnam in 2021 | ANT Consulting

In 2020, due to the impact of the covid-19 epidemic, the global supply chain will be seriously affected. Besides, the effects of the US-China trade war, the shift of production out of China took place quickly. In which, there are four areas that corporations tend to shift to Vietnam to set up company and make investment are information technology and high technology, electronic equipment, e-commerce and logistics, consumer goods, and retail.

Some big global corporations have started recruiting, searching for supply chains, and Vietnam is one of the destinations in the transition to other countries in the region such as Indonesia, Thailand, or Malaysia.

Vietnam, with the advantage of being close to China, is favorable for the movement of investment and machinery. Besides, having policies to attract FDI from Vietnam will make it easier for international investors to transfer investment.

At the same time, Vietnam also participates in many Free Trade Agreements such as CPTPP, EVFTA, etc. that facilitate trade relations with many countries and regions in the world, which will make cooperation more favorable. In addition, the stability in the value of Vietnam currency is also a strong point in attracting international investment.

As the report of a famous industrial real estate brokerage firm, data comparing occupancy rates and rental rates of industrial zones in Southeast Asian countries in the first quarter shows that Vietnam has an average rental rate of 45-50% lower than in Thailand, Malaysia, and Indonesia. According to a report in 2019, Vietnam’s labor costs are also lower than that of Thailand, Malaysia and Indonesia, in addition, the labor force in Vietnam is increasingly abundant and the quality of labor is increasing.

Regarding electricity prices, according to EVN, comparing electricity prices in 2019 of Vietnam compared to other countries in the region, according to statistics, shows that electricity prices in Vietnam reach 80% compared to electricity prices of Indonesia; 42.1% of the electricity price of the Philippines and 66.7% of the electricity price of Cambodia.

In addition, with the application of supportive policies such as reduction of corporate income tax, import and export tax, land rental assistance, labor supply, and administrative procedures, Vietnam deserves to become be best investment destination in the world, for international companies to make investment, establish company and obtain investment registration certificate.

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The ASEAN - Hong Kong Trade Agreement Expand Investment Opportunities in Vietnam | ANT Consulting

The ASEAN – Hong Kong Free Trade Agreement (AHKFTA) has been effective from June 11th 2019 for Singapore, Thailand, Vietnam, Laos and Myanmar, which are expected to positively impact the South East Asia economy, particularly Vietnam.

This trade agreement was signed between Hong Kong and 10 member countries of the Association of Southeast Asian Nations (ASEAN) in November 2017, which will help reduce commodity taxes, boost service and investment flows among regional markets and Hong Kong.

Accordingly, countries will gradually reduce tariffs in the coming years.

According to HSBC Vietnam, the ASEAN – Hong Kong Free Trade Agreement is a new step in efforts to ensure global trade freedom and is a great success for ASEAN, particularly Vietnam.

In the context of ongoing trade tension, Hong Kong businesses are seeking to expand investment opportunities and this Agreement opens up more opportunities in Southeast Asia.

Bilateral cooperation between Hong Kong and Vietnam has developed steadily over the years and the implementation of the new agreement promises to open more opportunities for cooperation in these two markets. ASEAN is Hong Kong’s second largest trading partner in the field of merchandise trade in 2018 and is the fourth largest partner in service trade in 2017.

By the end of 2017, ASEAN ranked fourth among Hong Kong’s direct offshore investment markets. ASEAN is the sixth direct foreign investment source of Hong Kong worth about 628 billion Hong Kong dollars.

Vietnam with the advantage of geopolitical factors is considered an attractive investment destination for foreign investors. The AHKFTA Free Trade Agreement will open more business opportunities for this fastest growing Southeast Asian country, continuing to boost trade flows between Vietnam and Hong Kong.

In the first five months of 2019, Hong Kong ranked first among investment markets in Vietnam with a total investment of 5.08 billion USD, accounting for about 30.4% of total investment in Vietnam. The agreement is expected to make it easier to access trade flows between Hong Kong and ASEAN. Intensified trade and investment flows will help Vietnam improve its production capacity, thereby maximizing the opportunities that come from trade flows.

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FDI Is Expected to Flow into Vietnam After the Covid-19 Epidemic | ANT Consulting

The Covid-19 epidemic is also considered an opportunity for Vietnam to receive faster flows of foreign investment, especially capital flows away from China.

According to the Director of Foreign Investment Department (Ministry of Planning and Investment), a large US corporation is planning to invest a multi-billion-dollar project in Asia. The two locations they considered were China and Vietnam. Given the situation of the Covid-19 epidemic in China, it is likely that they will choose Vietnam. In March, they will make a final decision…

A group of Korean and US investors interested in LNG power projects in Vietnam is probably one of the rare foreign business delegations coming to Vietnam at the time of the outbreak of Covid-19. On February 11th, they went to the Government Office and the Ministry of Planning and Investment to work on this content.

Without hiding ambition, according to representative of Korean investors consortium including Korea Gas Corporation, Southern Korea Electric Company, Hanwha Group… – they want to invest into LNG port and gas power plant projects in Vietnam. Even in addition to the electricity sector, these investors also want to invest in other areas in Vietnam.

The fact that foreign investors still coming to Vietnam at this time proves the attraction of Vietnam. The postponement and cancellation of investment promotion trips of foreign investors is only momentary.

In addition, according to the National Center for Socio-Economic Information and Forecast, the Covid-19 epidemic showed that the world was too dependent on China.

Having similar views, the New York Times also forecast that the flow of foreign investment from China to Vietnam to avoid US taxes could be accelerated by the Covid-19 epidemic.

According to the representative of JETRO Hanoi Office, in order to disperse risks, 122 Japanese enterprises asked by JETRO said that they decided to relocate their production in China and the place to be moved to the top is Vietnam.

Vietnam is at the top of the list, with 42.3% of the 122 businesses mentioned above have chosen. Following Vietnam is Thailand (20.6%), Philippines (18.6%) and Indonesia (16.5%). Japanese enterprises moving away from China not only because of trade war, but also to evade the increasing input costs in this market.

In the international market, it is forecasted that the flow of international investment into China and investment from China to foreign countries will face difficulties in 2020, even possibly sharply decline in the first quarter of 2020. The Covid-19 epidemic, if combined with geopolitical risks, trade war risks… also makes the global political, economic and social environment even more uncertain, promoting defensive psychology, shrinking, thus weakening investment motivation.

This is an opportunity for Vietnam to have policies to attract investors who are intending to narrow production in neighboring countries and invest in Vietnam. Investment promotion units should proactively work with foreign investors who have plans to invest in Vietnam to discuss, orient and unify the preliminary investment procedures.

Besides, in the long term, it is necessary to continue improving the investment and business environment, amending policies and strategies to attract foreign investment.

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