Can Gio – The Potential Land for Tourism Investors

According to the plan of Ho Chi Minh City (HCMC), by 2020, the number of visitors coming to Can Gio will reach 6 million. That is really a good sign for the Vietnam tourism industry.

HCMC welcomes 30 million tourists a year. Just to find out how to bring these visitors to Can Gio as Pattaya attracts visitors from Bangkok, Can Gio will boom over Nha Trang, Vung Tau, Phan Thiet to become the leading tourist center of Vietnam.

Located only 50 kilometers from the center of Saigon, the four sides are covered by rivers and sea, and owns more than 30,000 hectares of mangroves that have been recognized by UNESCO as the world biosphere reserve. Can Gio is considered to have the potential to become a leading tourist center of the area.

If compared to the leading paradise of the Thai region such as Pattaya, Can Gio is not inferior in terms of natural conditions, such as the quality of the beach, the area of forest, river and mountain… Even Can Gio has more advantages in geographic location: While Pattaya is 100 km far from Bangkok – Thailand’s largest tourist center, Can Gio is just 50 km from Ho Chi Minh City.

However, to date, the “billion dollars” potential of Can Gio has not been awakened. As if every year HCMC welcomes about 30 million visitors, Can Gio attracts only 3% of visitors from HCMC (1 million visitors).

Starting from 2017, the obstacles of Can Gio real estate and tourism have begun to be resolved.

On traffic, Can Gio Bridge started construction will solve traffic congestion connecting HCMC with Can Gio. When the two bridges were completed, the time to travel from the center of Saigon to Can Gio was only about 30 minutes instead of 1.5 – 2 hours as before.

In terms of entertainment, the two billion-dollar entertainment complexes of Vingroup and Tuan Chau with a scale of up to thousands of hectares with five-star resorts, golf courses, casino, entertainment area… will become two destinations attracting millions of tourists from HCMC to visit and spend money. In addition, there is La Maison De Can Gio project of Phuoc Loc Company.

We can see that the number of visitors coming to Can Gio as planned in 2020 will be up to 6 million guests. But the number of large scale hotels in this area is not available now, so investing in resort complexes is seen as an opportunity for investors.

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

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IHI Corporation (Japan) Wants to Participate in Transportation Projects in Hai Phong

Japan is a familiar investor in the Vietnamese market, many Japanese companies have set up business in Vietnam and IHI Corporation is not an exception.

Recently, Hai Phong People’s Committee has been working with the delegation of IHI Corporation (Japan) to explore opportunities to participate in transportation projects in Hai Phong. At the meeting, Mr Atsushi Kutawa – Managing Director of Operations, President in charge of business of IHI Corporation has talked about the company’s business situation with city leaders.

In particular, IHI has successfully built Binh bridge (Hai Phong) and Nhat Tan bridge (Hanoi). In 2015, the Group has built the IHI Infrastructure Asia (IIA) plant at Dinh Vu Industrial Park, which specializes in the manufacture of steel structures, supplying for bridge construction projects, thermal power plants and engineering facilities, serving for key construction works in the city.

Through investigation, it is known that there are plans to deploy Hai Phong transportation expansion projects, in which Nguyen Trai bridge and many key bridges connecting trade between the city and the northern provinces will be built. Hence, IHI Corporation wishes to have the opportunity to contribute their accumulated experiences to the cooperation and construction of these bridges.

Acordingly, Chairman of Hai Phong People’s Committee has highly appreciated the effective cooperation between Vietnam – IHI in the past time and also provide information about the bridge construction projects of Hai Phong in the coming time, like Nguyen Trai bridge, Vu Yen bridge…

In addition, he also expressed his wish that in the near future, IHI will explore and promote the cooperation in building bridges of Hai Phong. At the same time, in coordination with the Japan International Cooperation Agency (JICA), speed up the implementation of transportation projects, focusing on the Nguyen Trai bridge project.

Hai Phong always take care and create conditions for qualified contractors with high quality products. With the potential, efficiency and experiences of the IHI Corporation that has been confirmed, Hai Phong city will create the best conditions for the IHI Corporation to participate in the transportation development projects of Hai Phong in the coming time.

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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Tetra Pak Construct 110 Million USD Packaging Factory in Binh Duong

Tetra Pak (Sweden) has started construction of a 110 million USD packaging factory on an area of 10,000 m2 and a total capacity of 20 billion packages per year at Vietnam – Singapore Industrial Park II – A (Binh Duong). This information has been announced since the end of 2016. The factory is expected to come into operation by the beginning of 2019.

According to the Deputy Minister of Planning and Investment, this is the factory with largest scale among 54 projects that Sweden investors have invested in Vietnam.

Moreover, he affirmed that the factory could become the leading bird, leading many Swedish businesses to come and set up business in Vietnam.

Sweden was the first country in the Western region that establish diplomatic relations with Vietnam. There will be many Swedish multinational corporations want to invest in Vietnam. Therefore, Vietnam in general and Binh Duong in particular need to prepare better investment environment to catch the wave of FDI, especially from Sweden.

According to representative of Tetra Pak, this is the company’s most green packaging factory in their system, as well as the 4th largest packaging factory in East Asia and Oceania in terms of scale.

The two popular types of packaging will be produced at the factory including Tetra Brik Aseptic and Tetra Fino Aseptic.

According to Tetra Pak, dairy and beverage products in South East Asia, Australia and New Zealand markets are expected to grow at a rate of 5.6 percent annually from now until 2019.

In Vietnam, milk production is still the largest sector in the country, which is expected to double consumption per capita to 28 liters per year by 2020. While the market for fresh fruit juice is expected to grow 17.5% in the next year. This is the basis for packaging factories – including Tetra Pak’s factory to expect fast growth in the near future.

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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First Solar Re-Launch Billion Dollars Project in HCMC

First Solar Corporation – one of the US investors have set up business in Vietnam in the field of high technology.

After several years of halt operation, First Solar Corporation (USA) has officially restarted the project of manufacturing solar panel with thin-film technology in Ho Chi Minh City (HCMC).

So far, First Solar’s project (in the Dong Nam Industrial Zone, Cu Chi district, HCMC, investment capital of 1.2 billion USD) is still the only and largest scale project, producing solar panel with thin-film technology in industrial parks and processing zones in HCMC. Therefore, the dynamics of investors involved in this project attracted great attention.

First Solar’s contractor has started work for about two months. Meanwhile, the investor is coordinating with the authorities to carry out the works such as making environmental impact assessment reports, import and export procedures… After completing the necessary works, Fisrt Solar will carry out the import of equipment and machinery for factory installation to prepare for production.

It is known that First Solar’s project was granted investment certificate in January 2011 and started construction in March 2011. However, 8 months after starting construction, the investor has announced a temporary halt to the project, due to the supply-demand imbalance of solar cell products in the global market.

According to a privileged information source, on early August 2017, representatives of First Solar Corporation is expected to meet and share information on the implementation of the project with leaders 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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US Businesses Intend to Move to Vietnam

Is Vietnam ready for relocation investment?

Answering this question, the flow of foreign investment, particularly the United States to Vietnam will have great changes.

Is Vietnam ready?

This question is again raised, this time from Mrs Marie Diron, Managing Director of the National Credit Risk Group for Asia and the Pacific (Moody’s).

Mrs Marie Diron posed this issue at the Seminar on The Indian Ocean – Pacific Strategy and its Economic Impact on Vietnam, seeking solutions to promote sustainable development in Vietnam and other countries in the area (in the framework of the Asian Economic Forum held by the Vietnam Chamber of Commerce and Industry (VCCI) and the American Chamber of Commerce in Vietnam (Amcham) last week in Ho Chi Minh City).

The relationship between the US and China remains complicated, yet it cannot be correctly identified. Foreign manufacturers in China tend to move their investments to Vietnam, but the institutions, human resources, infrastructure, or hardware and software of Vietnam are generally ready to welcome this shift?

Just a few days ago, at the Vietnam Business Forum (VBF) 2018, Mr Michael Kelly, Chairman of the American Chamber of Commerce in Vietnam (AmCham) has mentioned the results of AmCham’s recent survey to the US businesses in China, whereby one-third have relocated or are considering relocating some of their manufacturing facilities to overseas. A separate survey of foreign companies from other countries shows that half are considering relocation and Southeast Asia is their top choice.

China will remain an important member of the global supply chain. But with the shift in investment, Vietnam is gaining benefits. The question is how can Vietnam take full advantage of this opportunity to keep up the pace of rapid economic growth?

On the US investors side, according to Chairman of AmCham, they know what they need. Vietnamese businesses and foreign invested enterprises need an equal and supportive environment for development. That means the relationship between investors and the administration needs to be mutual and transparent.

In particular, Chairman of AmCham said that there should be improvements in important areas that have great significance to Vietnam’s competitiveness, they are energy (to strengthen Vietnam’s future); facilitate trade and flow of goods; creating a more attractive, transparent and stable business environment; fully exploiting the potential of the digital economy in Vietnam; and modernize education, ensuring reasonable labor costs.

AmCham believes that the business environment can be improved by increasing productivity and reducing costs as well as business risks in Vietnam. More importantly, reducing costs and business risks will benefit Vietnamese businesses – many of which are small and medium enterprises – and will also promote entrepreneurship and start-up spirit, ensuring competitiveness and growth in the future 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.

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German Investors Funded 15 Million USD for Kinh Bac to Implement Workshop Project

Japan-Vietnam economic cooperation will form a new value chain

The total investment value of the project is 33.4 million USD, equivalent to about 755 billion VND, which is invested in construction and development in industrial zones.

According to information from Kinh Bac City Development Holding Corporation (KBC), the subsidiary of this unit is Kinh Bac Office and Workshop Trading One-Member Limited Company has just reached an agreement: signed contract to finance a project to build a workshop with the German Investment Corporation (DEG) under the German Development Bank (KfW). KfW is now managing more than 600 billion euros.

Accordingly, Kinh Bac Office and Workshop Trading One-Member Limited Company will receive a long-term loan from the DEG worth 15 million USD (total value of the project is 33.4 million USD) with a loan term of up to 8 years to supplement the capital for construction and development of workshops in industrial zones.

According to DEG’s representative, Mr Hubertus Pleister – Director of DEG Asia, Vietnam’s economy has grown steadily, continuously and sustainably over the long term, this is an important market, with many investment inflows. In addition, KBC is known as a prestigious business in the field of real estate and calls for foreign investment in industrial parks.

According to KBC, in addition to sponsored the above funds, DEG also committed to support KBC to access to other long-term development funds from financial institutions under the European Development Finance Institutions (EDFI) where DEG is a key member. KBC has undergone a rigorous 2-year appraisal process that ensures DEG’s criteria for financial capacity, management and environmental factors.

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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Japan Increases Investment in Vietnam in Finance and Services

Japanese investors have switched from setting up business in Vietnam in manufacturing into financial investment, retail.

Why Japanese Investors Invest in Vietnam?

Three Reasons Japan Invests in Vietnam

Why Japan Will Increase Investment in Vietnam

Til end of Jan 2015, Japan is the second largest foreign investors in Vietnam in direct investment form with 2,494 projects, and total registered capital of nearly 36.9 billion USD however there have been changes in the structure of the investment capital in Vietnam. In particular, the manufacturing sector once accounted for the largest proportion of investment in Vietnam drops 30% from nearly $ 1.2 billion in 2013 to nearly 830 million 2014. In fact, the projects in the manufacturing sector often require huge capital during a long-term investment. In the context that Japan’s economy faces difficulties as well as the global economy is not bright, the reduction of investment in the manufacturing sector is also understandable.

In indirect foreign investment in Vietnam, Japan ranks sixth in the list of countries conducting M&A in Vietnam with more focus on small or medium but long-term and potential large area. The field of production only accounts for 10% of the total value.

However, the recent survey has shown there is a new wave of Japanese investment in other sectors such as construction, real estate, transportation or financial investment. The report of The Japan External Trade Organization, or JETRO, a Japanese government-related organization that promotes trade and investment reflects the proportion of new investment projects in the construction, real estate increased from 3% in 2013 to 6% in 2014, while the capital had risen to 13%, compared with 2 % of a year ago.

In real estate sector, Tokyu Corporation has joined invested with Becamex IDC to develop Tokyu Binh Duong Garden City in an area of ​​over 110 hectares with a total investment of about USD 1.2 billion. Daibiru Corporation also acquired the office building Corner Stone in Hanoi with value of the deal at USD 60.1 mil. These are example that Japanese investors recognizing the potential development of Vietnam’s changes in real estate market as the land ownership have been approved and effective from Jul 2015. As reported, M&A deals in real estate in 2014 accounted for 61% of M&A deals.

In financial investment, in 2014, Daiwa PI Partners and Vietnam Opportunity Fund of Vina Capital invested USD 45 million in the International Dairy Joint Stock Company, making foreign ownership increase to 70%.

In retail sector, Vietnam is also considered as an attractive market with growing mid-income consumer group. The largest retailer Aeon Japan after years of market research has poured more than USD 500 million for two commercial centers were opened in Ho Chi Minh City, Binh Duong and a new center in Long Bien (Hanoi). The group also plans to expand through acquiring shares of two local supermarket being Fivimart and Citimart.

It appears that Japan is holding strong among the leading investors in Vietnam, together with Korea and Singapore.

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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US Textile and Footwear Enterprises Seek Opportunities in Vietnam

In the context of the absence of the Trans-Pacific Partnership (TPP), US textile and garment companies are finding their own opportunities to invest in Vietnam.In late October, the American Apparel and Footwear Association (AAFA) and the American Chamber of Commerce in Vietnam (AmCham Vietnam) organized a series of activities in Ho Chi Minh City.

According to the information shared at the program, the growth rate of exports from Vietnam to the US continues to outstrip competitors, although not benefiting from any preferential trade programs or free trade agreement.

According to the AAFA, garment imports into the United States from Vietnam increased by 8.74%, footwear increased by 11.83% in the last 12 months, and Vietnam is the second largest exporter to this market, after China. Retailers and consumers in the United States see the strengths in quality, price and delivery commitment of Vietnam. This is also the reason that AAFA and US businesses come to Vietnam.

According to the regional director of Hanes Brands (USA), after 10 years of presence in Vietnam, the total investment of this group is about 55 million USD, with 3 factories in Thua Thien Hue and Hung Yen. Production capacity of Hanes Brands Vietnam currently accounts for about 20% of the Group’s total global production. Vietnam is identified as Hanes Brands’ manufacturing base in South East Asia, in which the Hue factory is equipped with the most modern technology and equipment.

According to a senior adviser at Alston & Bird LLP, despite the absence of TPP, there are other opportunities for Vietnamese textiles and footwear. Accordingly, the programs that businesses should pay attention to are: the Regional Comprehensive Economic Partnership (RCEP), the European Union – Vietnam Free Trade Agreement (EVFTA), the Belt Road Initiative (BRI), the Vietnam – China Strategic Partnership (Two Corridors and one Economic Belt)…

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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Da Nang Calling for Investment in 7 Strategic Projects

In the international conference “Investing in Sustainable Urbanization” organized by Danang People’s Committee in collaboration with the regional network of local authorities on human capital management (CityNet), Da Nang has called for investment in 7 strategic projects.

At the workshop, Danang People’s Committee announced the list of 7 projects calling for investment in the form of PPP (public-private partnership): Lien Chieu port; solid waste treatment complex; new railway station and integrated urban area; infrastructure development and technology for non-motorized transport solutions; Da Nang – Hoi An metro; smart city construction and industrial park construction projects.

In particular, the project of Lien Chieu port is calling for investment with the aim of becoming the main wharf of the international gateway to the Central region, accommodating ships up to 100,000 tons. The relocation and construction of Da Nang Railway Station calls for investors to pay attention and implement the project in the form of PPP, which might be through BOT contract.

Da Nang Integrated Urban Renovation Project has a total budget of more than 345 million USD (over 7,900 billion VND). Project on development of vehicles and application of smart traffic management system in the form of ODA or PPP with a total capital of about 3.300 billion VND. The project to build metro connecting Da Nang with Hoi An city (Quang Nam) with a length of 33 km, along the coastal road, this project needs funding from 7,000 to 14,000 billion VND.

According to the Vice Chairman of Danang People’s Committee, sustainable urban development is one of the priorities of the city. Da Nang has set the orientation and guidelines for sustainable development. Since 2014, the city has approved a smarter city plan with priority areas of transportation, water supply, sewerage, food safety and building better city connections. Hence, Da Nang calling for investment in 7 key projects to address sustainable issues related to transport, urban.

Mr Vijay Jagannathan, Secretary General, of CityNet said that the workshop “Investing in Sustainable Urbanization” in Da Nang is seeking financial investment in urban infrastructure in a sustainable manner, overall and resistant to climate change. He also emphasized that infrastructure is a major challenge for urbanization as demand grows. Urban communities depend largely on effective urban planning as well as access to affordable public services.

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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