Why Market Research and Risk Evaluation Are Important for Foreign Investment? | ANT Consulting

Market research and risks assessment before investing or having any business cooperation, especially in the period of integration, trade between countries, have become very popular. When entering Vietnam, the new market with different cultures, market mechanism, the first and indispensable step is to do market research, evaluate the risks to know the strengths, weaknesses of business, in order to bring the best profit on investment.

Market research and risk evaluation require a high level of expertise and a deep knowledge of a particular market. The team of research and risk evaluation services are also people with professional capacity, good research, analysis and judgment ability. Consulting service companies have also been established with an increasing number and quality are also specialized and professionalized to meet the high requirements of foreign investors.

There are many areas to look into for market research and risk evaluation, i.e. general market research services, customer research services, buying behavior, supply and demand rend, reputation of company being buyer or seller, reputation of the individual managing the company, reputation of key employee for hiring, work records of employee, criminal record of individual stakeholders. These diverse research fields have solved the obstacles of foreign investors and become an effective channel to exploit information in a reputable, fast and accurate way.

Today, with the development of information technology, a foreign investor can access information and data of a market, of an enterprise or information of a business or production field which are not too difficult. However, it is not easy to use data and link information together to make an accurate assessment for investors’ purposes. Many investors have decided to do their own research. However, participating in a completely strange field and market is a risky decision. Accordingly, in addition to the information collected, foreign individuals and organizations need to have realistic analysis reports, in-depth research enough to grasp the potential and risks of that market before choosing to invest in.

Besides the cost, the research and risk evaluation service of professional consultant have helped investors to know the information of the market and the expected business field without having to spend time and money to go in person to the country in other to research. Moreover, the research and risk service can provide results from the measurement that make an assessment of the prospects, potential, and suitability of the investment orientation thanks to the understanding of the characteristics and business practices… It will therefore be possible to give useful and reliable advice on investment opportunities.

Research and risk evaluation services also help investors narrow the vision and effective investment scope to avoid risks. From there, investors can work towards a specific goal and plan the next steps. As a consulting channel, the research and evaluation service also provides useful information such as the strengths and weaknesses of competitors, the risks they have encountered, and the trends they are deploying so the investors can consult and note. Based on that information to create for a suitable strategy such as a unique promotion tactic, a special, impressive product, hiring strategy…

Research and risk evaluation services also help analyze the legal matters that have significant impact that investors gain more legal knowledge in the expected field and have the most general picture of the field. On the other hand, it helps investors when implementing launch programs and entering the market to comply with the provisions of the law, as well as in accordance with the local culture.

It can be seen that in today’s investment market, research and risk evaluation services are not only useful, but it is an initial factor to determine the possibility of success. Therefore, foreign investors do not forget to choose for themselves a reputable and experienced research and risk evaluation service provider to successfully implement investment projects together in Vietnam.

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Thai Billionaires and M&A Activities in Vietnam | ANT Consulting

The billion-dollar acquisitions of Thai billionaires have brought Thailand to become a formidable force in M&A activities in Vietnam and Asia.

Big C Vietnam has fallen into the hands of billionaire Tos Chirathivat – the boss of Central Group (Thailand) from Casino Group (France) for 1.05 billion USD. In 2015, this group also spent about 100 million USD to acquire Nguyen Kim – the leading retailer in the electronics market. Recently, the Group also spent 10 million USD to acquire the business segments in Thailand and Vietnam of Zalora (belongs to Global Fashion Group of Rocket Internet Corporation).

Previously, billionaire Charoen Sirivadhanabhakdi – owner of TCC Holdings (Thailand) spent 655 million Euros to buy 19 centers and relating real estates of Metro Cash & Cary Vietnam. Also, Berli Jucker (BJC), a subsidiary of TCC Holdings also acquired Family Mart Vietnam. Especially, along with the acquisition of Metro Cash & Carry Vietnam, billionaire Charoen Sirivadhanabhakdi also through the Singapore Beverage Group – Fraser & Neave (F&N) became the 2nd largest shareholder in Vinamilk with 11.04% share. Currently, Thaibev which also belongs to this billionaire is racing to buy 40% share in Saigon beer (Sabeco), with a value of 1 billion USD.

In fact, the trend that Thai businesses acquired businesses outside their national borders is not new. In 2012, Siam Cement Group (SCG) of Thailand signed an agreement to buy 85% share in Prime Group JSC (Vietnam) at the price of 7.2 billion Baht (nearly 5,000 billion VND). This is also the biggest M&A deal in the field of building materials in Vietnam so far.

In the plastic industry, currently, SCG has invested in more than 20 Vietnam plastic enterprises. Particularly, the most significant investment is to buy 80% share in Tin Thanh Plastic Company, a top enterprise in the field of plastic packaging of Vietnam. SCG also holds large shares in 4 companies specialized in manufacturing plastic household – packaging in Vietnam, which are Vietnam – Thai Plastchem Joint Venture, TPC Vina Plastic and Chemical, Minh Thai and Chemtech Plastic Materials.

Currently, SCG is also the 2nd largest shareholder in Tien Phong Plastics and Binh Minh Plastics, just after State Capital Investment Corporation (SCIC). Moreover, SCIC planned to divest from this two plastics companies. This will create opportunities for Nawaplastic Industries to increase its shares in Tien Phong Plastics and Binh Minh Plastics. SCG continues to seek opportunities to invest in Vietnam’s plastic industry.

Most recently, the Ton Poh Thailand Fund has spent 130 billion VND to buy 5.9 million shares of Hoang Huy Investment – Service Company, equivalent to 5.32% of the charter capital of the company. In addition to Hoang Huy, Ton Poh Thailand Fund also owns nearly 6% share of Cotec Construction Company.

An open economic space will create significant opportunities for investment flows. The formation of the ASEAN Economic Community (AEC) and the Trans-Pacific Partnership Agreement (TPP), which expected to take effect from 2018, is the impetus for investment flows into the country in this area. The race has just begun for the countries, investors and Thailand businesses seem to hold this game.

The billion-dollar acquisitions of ambitious billionaires brought Thailand to become a powerful force in M&A activity in Asia. According to experts, the deal with the presence of Thai companies in the M&A market in Asia has increased rapidly, just behind China, Korea and India.

In particular, the market of more than 600 million people of AEC is considered as a more stable market than most emerging markets in the world. The growth opportunities for businesses here will be very attractive, regardless of Thailand, Vietnam enterprises or from other economies.

To sum up, according to economic analysts, the increase of M&A activities will be the obvious result due to the free trade between the countries in goods, services and human resources.

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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.

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Assistance In Setting up Business Venture 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.

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Flourishes in Attracting Investment in Can Tho | ANT Consulting

Can Tho has welcomed many large-scale investment projects from foreign and domestic investors come to set up company in Can Tho.

The city has issued investment policy decisions for 18 domestic projects, with a total registered capital of over 25,046 billion VND and 9 projects with foreign direct investment (FDI) with a total registered capital of 65.28 million USD. Accumulated to date, Can Tho has a total of 103 domestic investment projects, with a registered capital of over 63,324.76 billion VND and 86 FDI projects, with a total registered capital of over 748 million USD.

Business development situation of Can Tho also has positive changes. It is estimated that in 2019, the city issue new business registration certificates to 1,500 enterprises of all types, with a total registered capital of 11,500 billion VND, an increase of 7.37% in the number of businesses and an increase of 46.98% of registered capital compared to 2018, bringing the total number of active businesses to about 10,000; accounting for about 26% of all businesses in the Mekong Delta region.

Over the years, Can Tho has invested strongly in the infrastructure system, especially the transport infrastructure, step by step completed in a synchronous and modern manner, better meeting the needs of socio-economic development and attracting investment not only for Can Tho, but also for the whole Mekong Delta region.

In terms of maritime, the central port of Can Tho including Hoang Dieu and Cai Cui wharves has completed upgrading and basically completed to accommodate such vessels as 10,000 DWT full-load and 20,000 DWT to reduce loading. The shipping channel project for large vessels entering the Hau River has been completed and cleared with technical channels, creating favorable conditions for transporting import and export goods.

Regarding aviation, Can Tho International Airport has strengthened the exploitation of more domestic routes to and from major cities in the country, along with two international routes to Thailand and Malaysia. Especially, from the beginning of 2020, the route of Can Tho – Seoul (Korea) operated by VietJet will officially open with the frequency of 3 flights/week.

Regarding road traffic, as planned, in April 2021, Trung Luong – My Thuan expressway will be put into use. Along with that, the My Thuan – Can Tho expressway deployed to invest will connect smoothly and quickly Can Tho with Ho Chi Minh City – the largest economic center of the country.

Besides, the investment promotion and image promotion of the locality are paid special attention. In 2019, the City has organized many missions to promote domestic and foreign investment cooperation, focusing on potential markets suitable to local investment attraction needs, such as Japan, Malaysia, Singapore, Czech Republic, Russia…

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