Japanese Investment Flows into Vietnam Packaging Production

Vietnam Artpresto factory, 100% Japanese capital, specializing in packaging production with a total investment of 5 million USD was started in Chau Son Industrial Zone, Ha Nam province right in the first week after the Lunar New Year holiday.

This event once again shows that packaging is still the field that attracting capital, especially when the major manufacturing industries, from manufacturing and agriculture, are on the rise, leading to the need to use bags.

The Artpresto Vietnam packaging factory, invested by Artpresto Vietnam Company (belonging to Bandai Namco Group), with the goal of producing high quality packaging products.

Once completed, Artpresto Vietnam factory will operate with a capacity of nearly 40 million products/year.

Artpresto Company was established in 1983, in charge of packaging design, product design, and trading printing products of Bandai Namco Group. Artpresto’s total revenue in 2018 is about 8 billion yen.

According to general director of Artpresto Vietnam Company, when operating, the factory in Vietnam will contribute to improving the supply chain of high-quality packaging products for the Japanese and Vietnamese markets.

Not to mention customers, the demand of Bandai Namco Holdings – the parent company of Artpresto is very large, so the factory in Vietnam will be a significant packaging supply channel for the Group. And yet, in the calculation of this group, Artpresto Vietnam will be the first development of Bandai Namco to the Vietnamese market in particular, and the foundation of development in the Southeast Asian market in general.

This can be understood, when doing good business in Vietnam, capital will be poured to expand, increase production and catch up business opportunities.

Earlier, in mid-2018, United Packaging Co., Ltd. was also belong to a Japanese investor – Oji Holdings Corporation, had poured capital to build a factory located in Tan Phu Trung Industrial Park (Cu Chi district, HCMC), on an area of 5 hectares, with a total investment of more than 15 million USD.

United’s factory specializes in manufacturing paper products such as high-end packaging used in the food industry and goods labels.

It is known that Tan Phu Trung Packaging Factory is the 6th project of Oji Holdings Corporation in Vietnam, after projects in Hai Phong and Ha Nam and is the 31st factory of this group in the Southeast Asia region.

With the current growth rate of 10-15% per year, the Vietnamese packaging and processing industry is considered to be quite attractive to suppliers of machinery and equipment operating in the industry, as well as the trend of foreign enterprises expanding investment and acquiring businesses operating in this field.

Packaging is a product rich in types and designs, so packaging materials are also rich and diverse. Packaging materials in Vietnam are mainly plastic, paper, carton, metal and glass. It is estimated that the whole industry will grow by 25% in 2019.

According to the forecast, economic sectors mainly from food, pharmaceuticals and cosmetics will grow 2-digit in the period from now to 2025, so packaging has a good opportunity to develop, including packaging industrial and agricultural packaging. The problem is that business owners need to develop clear strategies, identify core values, strengthen effective management solutions, find appropriate technology equipment…

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

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Lenovo Group Wants to Build Factory in Bac Ninh

Mr. Bach Bang, General Director of Lenovo Group (China) had a meeting with Chairman of Bac Ninh Provincial People’s Committee Nguyen Tu Quynh to explore investment opportunities and set up factory in Bac Ninh.

At the meeting, according to Mr. Bach Bang, Lenovo Group is a global enterprise, operating in the field of manufacturing computers, phones, electronic accessories and providing 24% of computers worldwide. Through reference to a number of large enterprises investing in Bac Ninh, as well as directly visiting some industrial parks, he realized that the potential and advantages of the province were great and expected to invest in building a factory to produce computer components with an area of ​​about 30 hectares in Bac Ninh. The products will be exported directly to the US.

Chairman of the provincial People’s Committee Nguyen Tu Quynh welcomed Lenovo’s intention to invest in building a factory in Bac Ninh and stressed that in addition to preferential policies for projects with large investment capital, high disbursement rates, the province will have policies to support the training of human resources and housing for workers in the area, at the same time, promptly remove difficulties, create favorable conditions for enterprises to invest in the province.

As known, Bac Ninh province currently has 16 concentrated industrial parks, attracting more than 1,300 FDI projects, total investment of about 18 billion USD from 33 countries and territories, of which China ranks 5th with about 160 projects. The FDI enterprises in the province have been operating stably, contributing to the local development and accounting for 73% of the province’s industrial production value.

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

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Vietnam is Increasingly Attracting Capital from the US

Vietnam is taking every opportunity to grow its economy and improve the living standard. This is not a vain dream since Vietnam has young and plentiful work force. That is why multinational companies wish to come and set up company in Vietnam.

Japan Increases Investment in Vietnam in Finance and Services

Why Japan Investors Invest in Vietnam

The year 2015 marked the 40 years since the war end and the 20 years of normalized the relationship between Vietnam and the US. Vietnam began the process of innovation since 1986 but not until 1995, foreign investment in Vietnam began to flow in when the Government established formal diplomatic relations with the United States and joined the National Association of the South East Asia (ASEAN).

In recent years, foreign investment in Vietnam has accelerated. The Korean company is particularly excited with this market. Samsung Electronics is operating and building three plants at three locations – Ho Chi Minh City, Thai Nguyen and Bac Ninh. In total, this giant electronic corporation has poured more than USD 10 billion in Vietnam.

Vietnam is also expected soon to welcome a “wave” of investment from the US. The Procter & Gamble (P&G) – a consumer goods manufacturer is building a factory in Binh Duong with the cost of 100 million USD. The plant will produce Gillette razors.

Since starting operations in Vietnam in 2008, Intel is also pouring money into this market. This semiconductor giant is planning to manufacture in Vietnam the most of advanced processor for personal computers in the future.

Moreover, other big names come from the US that are expanding operations in Vietnam are Starbucks and McDonald’s. They opened their first store here in December 2013 and February 2014.

There are a number of factors that make foreign investment in Vietnam explode. One of the most important reasons is the low labor cost. Labor cost hikes in China are the reason why many multinational manufacturers turned their attention to Vietnam where the cost is 50% cheaper. Besides, the purchasing power of Vietnam consumer is increasing, inflation has been curbed and many easing regulations to boost growth are also the reason why continuous investments are poured tin..

However, the biggest attraction for most foreign investors is the Trans-Pacific Partnership agreement (TPP) about free trade in which Vietnam is one of 12 countries that participate in negotiations. In mid of this year, General Secretary of Vietnam, Mr. Nguyen Phu Trong will visit the United States. TPP agreement will be the main topic of the conversation with the US officials. If the two countries can reach an agreement, the US will become even more important partner of Vietnam’s economy in the future.

In a press conference in HCM city in January 2015, US Ambassador in Vietnam – Mr. Ted Osius was upbeat about the impact of the TPP to Vietnam economy and the US investment here. TPP agreement “will allow the US to become the number one investor and trading partner of Vietnam” he said.

In about 4.5 million Vietnamese living overseas, about 2 million are living in the US. In particular, many people have made a name in the business world. They are Mr. Henry Nguyen – who brought McDonald’s to Vietnam and Mr. David Thai – founder of Highlands coffee chain.

According to the Ministry of Foreign Affairs of Vietnam, approximately 180,000 companies in the United States are owned by Vietnamese, achieved a total revenue of 20 billion USD. Strengthening ties between the two countries could stimulate greater cash flow stream across the Pacific.

The Ministry of Planning and Investment of Vietnam is estimated to spend 500 billion USD in over 10 years to develop the infrastructure necessary for sustainable growth. However, Vietnam can only able to meet 40% of the above figure, through the Government budget, ODA and private capitals.

That is why the Government wants to attract FDI. The Vietnam Government has set a target to create an industrial economy by 2020. Six priority areas are agriculture, forestry and fisheries processing, agricultural machinery, electronics, shipbuilding, environmental and energy saving, automobile production.

The transition from growth based on FDI into industrial-based growth can be rather difficult. However, Vietnam has shown it is serious and is still on track.

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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FDI flows into Vietnam from China?

In the longer term, FDI flows may decrease in China and move out of the country. Vietnam has the opportunity to attract investment capital when many investors wish to set-up business to enter Vietnam market.

Earlier, according to the survey of FDI Market in the Asia – Pacific region, Vietnam is the 2nd largest country that attracts FDI after China. However, rising labor costs in China in recent years has created opportunities for the emerging markets in Asia including Vietnam to enhance their competitiveness in the manufacturing sector.

Specifically, the cost to open one factory to produce chemical equipment or pharmaceutical technology in Vietnam is cheaper than in China by 50%. Similarly, the cost to build an auto manufacturing plant in Vietnam is 40% cheaper than in China. Foreign investors have sent signals to switch manufacturing into Vietnam.

Looking at the medium term, the picture of foreign investment in Vietnam is bright. The domestic market continued to recover with the forecasting GDP growth for 2015 is 6.1% and increase to 6.2% in 2016.

Therefore, if Vietnam can make good use of opportunities, maximize cost benefits; enhance the skills of workers and improve production technology, Vietnam will benefit in the upcoming shift.

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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Can Vietnam Become a New Production Center of The World?

Vietnam now is a machining and production center, just behind Singapore on the total investment amount of China.

China is following the model of the Japanese economy and then has higher production costs. Therefore, Chinese enterprises are now diverting into neighboring countries to find the location for new manufacturing facilities.

With great potential for growth, young population structure and lower wage costs, Vietnam will benefit from the development of infrastructure associated with competition for positions in regional influence between China and other major economies.

This is an opportunity for Vietnam to improve its position in the value chain by becoming a global center of production of low-value commodities.

To enhance accessing to investment capitals, becoming a center of manufacturing, global outsourcing and enhancing the position in the value chain, in the long term, Vietnam will actively screening the list of projects FDI under the strategy and development-oriented by the Government.

Vietnam needs to invest in education and training to develop workforce skills. In addition, Vietnam also needs to focus more on investment in environmental infrastructure, especially in transportation and services.

Along with the continuous integration in ASEAN and by the importance of this region for the 4 largest economies in the world, Vietnam has many advantages to attract multinational companies to invest in order to take use existing opportunities of Southeast Asia area.

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 Calls for Investment in 60 Projects in 2019

After the Lunar New Year, Da Nang began to implement the investment promotion of 60 investment projects, focusing mainly on high-tech, urban and tourist areas real estate, attracting foreign investors to come and invest in Danang.

Da Nang City People’s Committee has just approved the program to attract investment in 2019. Accordingly, after the Lunar New Year, the city began to attract investment in 44 projects with the capital from 30,000 USD to 400 million USD, mainly in the fields of high technology and real estate in urban areas and resorts; and at the same time promoting new investment negotiations for 16 other projects. Among the 44 projects calling for investment, half of them are in information technology and high technology, mainly locating in Da Nang High-Tech Park and the Information Technology Zone. In particular, the city wants to call for investment in a solar power plant with a capital of 150 million USD to 400 million USD and production of semiconductor materials to manufacture specialized circuits and specialized electronic components with a total investment of 200 million USD. In addition, the city will conduct negotiations to promote projects that have been delayed without being able to grant investment licenses for various reasons such as the 52ha wide Software Park project.

According to the program, the city will prioritize attracting FDI capital into industries that seek to advance the industrial revolution 4.0 such as digital, nano-technology, bio-industry, new materials… and the agricultural sector also attracts projects with high technology application, rejecting projects with outdated technology and destroying the environment. Therefore, the city has a policy of focusing on approaching and inviting multinational investors, mainly from Japan, Korea, USA, Australia and Europe.

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 and North Korea Leaders Will Meet in Hanoi, Vietnam

President Donald Trump announced that Hanoi, Vietnam will be chosen as the place to hold the second US-North Korea summit on February 27 and 28, 2019. There are signs of intention of both parties to transform the relationship and create a solid foundation for the de-nuclearization of North Korea and end the Korean War. This is the opportunities for Vietnam to promote the country as a place for foreign investors to trust and invest through setting up factory and companies, and further grow the country through foreign direct investment.

Vietnam has been selected as the place for this important international political event due to a number of reasons, including good relations with the US, South Korea and North Korea, closer to North Korea in distance, and that Vietnam is a country with experience in organizing in high security event i.e. APEC 2017 with leaders from US, Russia, China, Japan, Korea. Further, the administration of President Trump thinks that Vietnam is a political and economic model that North Korea should pursue in terms of opening the country and attracting foreign investment, allowing foreigners to set up factory, set up companies in various areas. From difficult relationship with embargo, the US and Vietnam has now become partners with two-way trade which turnover increased from 451 million USD in 1995 to 52 billion USD in 2016, and that Vietnam has become one of the rising export markets of US. From North Korea’s perspective, Kim Jong-un will be interested in witnessing the story of Vietnam, which can be an inspiration and a model for the road ahead for North Korea to follow.

This event will be an opportunity for Vietnam to promote the country of peace, opportunity, prosperity and land of foreign investment, growing its role in the international markets in both business and politics, which further attract foreign direct investment, the driver for growth of the country over the decades.

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

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Vietnam and European Union Will Eliminate over 99% Import Tariffs on Each Other

At a press conference on October 30th in Vietnam informed of important agreements between Vietnam and European Union (EU), Mr. Bruno Angelet – Ambassador, Head of Delegation of the European Union (EU) said that early August 2015, the EU and Vietnam has announced the conclusion of negotiations but the negotiation group continues to resolve the remaining technical issues, while improving documents.

Once completed, the Agreement must be approved by the National Assembly of Vietnam, the Council and the European Parliament. Accordingly, Vietnam and the EU will eliminate over 99% of import tariffs.

For the few remaining tariffs, both parties will grant each other tariff quota or tariff reduction. This can be seen as the highest level of commitment that Vietnam has achieved in the FTA has been signed so far.

In the investment sector, the commitments to ensure an open business and investment environment to help promote high quality investment flows of both the EU and other partners in Vietnam. Thus, Vietnam has the opportunity to become the connection for trade and investment activities between EU and other countries in the region.

In addition, the commitments related to investment, liberalization of trade, service, Government procurement and intellectual property protection… will also open up opportunities for both sides to approach each other’s markets and ensure balance overall benefit.

EU can become the best partner in the future of Vietnam because Vietnam is also becoming one of the most dynamic countries and have good relationship with EU in the region. EU can support Vietnam in many fields such as governance models and provide excellent services in the field of infrastructure, training and education, the judiciary and law, health, social insurance and sustainable energy.

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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