The Flow of Korean FDI into The Central Region and Highlands of Vietnam | ANT Consulting

According to the Foreign Investment Agency (Ministry of Planning and Investment), nearly 4.4 billion USD has been invested by Korean businesses in the Central Region and Highlands so far. 

In mid-December 2020, LG Electronics (Korea) put LG VS Research Center into operation at DITP building – Trung Nam Land (Da Nang). This is the third center in Vietnam that LG has established, after the centers in Hanoi and Ho Chi Minh City. 

According to Vice Chairman of Da Nang City People’s Committee, recently, the city has received the attention of Korean businesses and investors. The most recent is the ICT Vina II medical equipment factory project of ICT Vina Company in Da Nang Hi-Tech Park, with a total investment of 60 million USD. This is one of the typical foreign direct investment (FDI) projects of Korean investors in the Central Region – Highlands of Vietnam. 

According to the director of the Korea Trade-Investment Promotion Agency (Kotra) in Da Nang, in previous years, Korean businesses were interested in investing in the tourism sector in Da Nang, but in recent years, they pay much attention to the field of processing, manufacturing and outsourcing technology. 

In Da Nang, as of November 2020, Korea is the foreign investor with the most number of projects, with 232 projects, total registered capital of 376 million USD, focusing in the fields of services, real estate, industrial production and information technology. 

In fact, in terms of FDI inflows from Korea in the Central Region, it must be mentioned the appearance of the Doosan Vina brand in Dung Quat Economic Zone (Quang Ngai). This is the first FDI enterprise, also the most successful enterprise today in the heavy industry sector in Quang Ngai. 

With the estimated revenue of 200 million USD/year, Doosan Vina makes a great contribution to the budget revenue and enhances the export value of Quang Ngai. Doosan Vina is creating jobs for about 2,000 employees, of which over 85% are Quang Ngai citizen. 

Binh Dinh is also a locality that has been interested by Korean businesses recently. According to the Center for Investment Promotion of Binh Dinh Province, the projects coming from Korean investors are the 70 million USD solar power projects invested by QN Korea Energy Company; Project of high-tech pork farm of New Hop Livestock Company Limited, invested nearly 5 million USD; Wesbrook Vietnam wood processing factory project, invested USD 2.5 million… 

In the Central Region – Highlands of Vietnam, in the first 9 months of 2020, Korea is the leading partner in terms of total registered capital in the region, reaching 79.41 million USD with 23 new projects, focusing on processing sectors, manufacturing, technological expertise, accommodation and catering services. 

Accumulated to date, Korea is second only to Singapore in this area. Korean enterprises are present in most of the strong sectors and fields of localities such as heavy industry, real estate, tourism, textiles, manufacturing, processing and investment in industrial zone infrastructure. 

With the potentials of strategic location, natural resources, abundant human resources, an increasingly complete infrastructure system, the advantage of developing tourism real estate with a series of cultural heritages, long and beautiful coastlines… Combined with new strengths such as trade and investment agreements, breakthrough investment incentive mechanisms and policies, many provinces in the Central Region – Highlands are becoming trust and safety investment destinations of foreign investors, especially Korean businesses.

Read More

Quang Ninh Tourism Industry Collect Nearly 29,500 Billion VND in 2019 | ANT Consulting

2019 continues to be evaluated as a year of strong growth of the Quang Ninh tourism industry in both the number of tourists and revenue, contributing to the provincial budget up to 30% compared to 2018, creating an attraction for foreign investors to come and set up company in Quang Ninh. 

According to the Quang Ninh Department of Tourism, in 2019, the total tourist arrivals to Quang Ninh reached over 14 million, an increase of 14% compared to 2018, of which international visitors reached 5.7 million. The length of stay has changed significantly from 2.16 days in 2017 to 2.74 days in 2019. 

In 2020, Quang Ninh tourism industry strives to welcome 15.5 million visitors, including 6.5 million international visitors; total revenue is more than 34,000 billion VND; The total contribution to the provincial domestic budget is not less than 11.5%. The length of stay of tourists must increase and reach from 2.8 to 2.85 days and the average spending will be 2.3 million VND/tourist. 

To accomplish this goal, the Department determined to further promote the promotion of tourism into key domestic and foreign markets, strengthen the state management of the business environment, tourism, travel management, tourist accommodation establishments, shopping establishments. Develop and put into operation strong tourism products, expand tourism space to increase attractiveness and extend the length of stay… 

According to the Quang Ninh Department of Tourism, in order to achieve the above results, in 2019, apart from continuing to focus on promoting through Roadshow programs to effectively exploit traditional markets such as China; Northeast Asia (Korea, Japan, Taiwan); ASEAN visitors (Singapore, Malaysia, Thailand…), Quang Ninh tourism industry has focused on promoting the development of large potential and high-paying tourist markets such as tourists traveling by ship, European visitors (England, France, Spain…). 

For the domestic market, focusing on promoting and exploiting domestic tourists from southern provinces to Quang Ninh via Van Don international airport. Collaborate with organizations, businesses, media agencies at home and abroad to organize Famtrip delegations, presstrips to localities and tourist destinations to enhance the effectiveness of advertisement. 

Closing Ceremony of National Tourism Year 2018 – Ha Long – Quang Ninh, ASEAN Tourism Forum 2019 (ATF 2019), North East Asia Tourism Forum Permanent Meeting (EATOP) towards the EATOP General Assembly in 2020 are major events of Quang Ninh tourism industry in particular and of Quang Ninh province in general, contributing strongly to Quang Ninh – Ha Long tourism brand. 

In 2020, many new tourism products of Quang Ninh such as Quang Hanh Cam Pha Onsen Resort; tourist service complex in Van Don; tourist destinations in Binh Lieu, Tien Yen… will soon be put into operation together with a series of new transport infrastructure projects. These will be important prerequisites for Quang Ninh Tourism to increase its attractiveness and create breakthroughs.

Read More

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…

Read More

Bac Ninh Land Plots Promise to Create Strong Wave of Investment In 2020 | ANT Consulting

Bac Ninh’s land plot segment in 2019 has many positive changes and there has been no cooling in early 2020. With outstanding economic development and strong investment attraction, Bac Ninh is having all potentials and strengths to develop real estate investment and attract foreign investors to set up company in Bac Ninh.     

Bac Ninh fully converges all elements of the weather and favorable conditions with the geographical location favored by nature, socio-economic conditions for sustainable development in all aspects. Along with economic development, the real estate market in general is at the same time hot again. 

Over the past years, the whole country has witnessed the remarkable development of Bac Ninh province with the economic development speed and per capita income always in the top of the whole country. 

Bac Ninh attracts many large economic corporations in the world such as Samsung (Korea), Hong Hai (Taiwan), Canon (Japan), Microsoft, ABB, Foxconn… forming many large industrial zones. This has pushed the economy of Bac Ninh to develop strongly, the income and living standards of Bac Ninh people in general and people in the district area adjacent to Bac Ninh city in particular have also increased significantly. The quality of life is higher and higher. 

In addition, the expansion of large FDI projects in Bac Ninh has satisfied the employment needs for millions of workers and brought a large number of foreign experts to work in industrial parks and high technology zones. The number of employees is increasing but the infrastructure and services in Bac Ninh do not fully meet the strict requirements of experts, technicians, senior management of Korea, Japan, and Taiwan… Therefore, most of them rent houses in Hanoi or choose big hotels to stay. Experts say the shortage of supply is a good signal for real estate investors who want to pour capital into Bac Ninh, anticipating strong profit opportunities with huge customer demand. 

Especially, in the development plan, Bac Ninh is planned to become a city directly under the Central Government by 2022. That has made Bac Ninh becoming a magnet to attract many real estate giants coming to hunt for land funds for project development.

Read More

"The King of Emerging Markets" Mark Mobius: Few reliance on China will become a target, Vietnam emerged as a new address for the supply chain. | ANT Consulting

Companies will move their supply chains out of China after the Covid-19 crisis to minimize the impact from similar shocks that may occur in the future, and they might choose to invest in Vietnam.     

According to Mark Mobius, a wave of displacement from China will erupt after the epidemic is under control. At the same time, the supply chain will be less dependent on the world’s second economy. The founder of Mobius Capital Partners also said the pandemic has caused businesses to rethink the way they should do to minimize future supply shocks. 

According to Mobius, lot of people are dependent on supply chains in China. However, they are becoming diversified into the supply chain as much as possible. Finding nearby supply chains becomes a new target. There will be some priorities for companies based in the US or regional markets like Mexico and Canada. 

However, the diversification of these supply chains will move to places like Vietnam, Bangladesh, Turkey or even Brazil. 

Not only Mobius, according to independent analyst Fraser Howie, Governments will seek to reduce their dependence on China, although no country can completely ignore Beijing’s role in supply chains. 

Richard Martin of IMA Asia commented that although manufacturers in some industries began moving their operations out of China before Covid-19 broke out, the pandemic would trigger a second wave in which the Nationalism is used to consider supply chain restructuring. 

Many industries, such as agri-pharmaceuticals and energy, have been under great pressure amid the global health crisis because of their reliance on economies such as China and logistics constraints. International pressure on the supply chain. 

Booming from Wuhan, China in late 2019, Covid-19 has spread across the globe and crippled many economies, including the United States. The social distancing solution to prevent the virus from spreading is applied by a number of countries. The time of re-opening of the economies is still a big question mark when the epidemic has not been controlled yet. 

Meanwhile, the price of oil in the US dropped sharply because the crisis led to a situation of supply exceeding demand, causing WTI oil futures delivered in May fell to negative level for the first time. However, low oil prices are a good sign for emerging markets like India and China, the energy importers.

Read More

Tam Thang Industrial Zone offers a new investment destination in Quang Nam | ANT Consulting

Tam Thang Industrial Zone (IZ), one of the 05 Industrial Zones of Chu Lai Open Economic Zones, is located in Tam Ky City of Quang Nam Province, with an area of ​​197.1 ha. This IZ is considered the top investment attraction of the province for foreign investor to set up companies and manufacturing facilities in Vietnam. 

Tam Thang Industrial Zone is the place which attract domestic and foreign investment of Quang Nam province. With the plan of site clearance, compensation and infrastructure construction quickly, this place is highly appreciated by many investors when investing in Vietnam. Especially, this is the first industrial zone in Vietnam with a secondary investor to build a wastewater treatment and a water recycling plant. In particular, this is the first industrial park in Vietnam to have a factory to reuse wastewater. This explains why Tam Thang Industrial Park has a special attraction to many investors, especially investors from Korea and more recently investors from Europe. With the purpose of developing the industrial park in the direction of green-clean-beauty, the investor has implemented many environmental protection policies besides attracting investment here. 

Til end of 2019, Tam Thang Industrial Zone has attracted 23 investment projects. Accounted for the majority of FDI with 18 projects, a total registered capital of about 515 million USD has poured into the implementation of more than 400 million USD. The remainder is domestic projects with a total implemented capital of VND 157 billion /VND 338.6 billion of total registered investment capital. 

This Industrial Zone has housed corporations and national companies with famous brands all over the world participating as Panko (textile), Hyosung (supporting the automobile industry), OCC of Korea, Fashion Garments (Hong Kong), including German “fastidious” investors such as Amann, Wendler … There are currently 16 projects in operation, creating jobs for more than 10,000 workers with the occupancy rate of industrial parks reaching 72%. 

With many of its development efforts, along with supporting businesses, approaching investors, reforming administrative procedures, quickly assisting investors in investing, recruiting workers, solving ground clearance, etc. this will help domestic and foreign investors to easily invest, bringing high economic benefits when investing in Tam Thang Industrial Zone.

Read More

Series of Big Technology Companies Shifted Production to Vietnam | ANT Consulting

LG, Panasonic or Foxconn – Apple suppliers… are planning to set up factory in Vietnam to expand investment, production chains in Vietnam after Covid-19. 

According to a 6-month industrial production report by the Ministry of Industry and Trade, some of the world’s big technology corporations are planning to shift production and investment chains to Vietnam. Vietnam is facing a great opportunity to welcome this wave of investment.     

Among the big names mentioned by the Ministry include: LG, Panasonic, Foxconn – Apple component suppliers… Among that, LG had transferred the entire production line from Korea to Hai Phong. 

In addition to LG, according to the Ministry of Industry and Trade, Panasonic Vietnam is also preparing to receive a production line of refrigerators and vertical door washing machines with high capacity from Thailand, in early September. Apple has also increased production of 3 – 4 million of AirPods in the second quarter, equivalent to nearly one third of its AirPods worldwide output through Foxconn. 

Currently, Foxconn has a factory located in Bac Giang and proposed the Government to build 3 social housing projects in the Northern of Vietnam, next to its industrial parks with a total investment of over 7,400 billion VND. 

Three Foxconn social housing projects are planned to be built in Bac Ninh, Bac Giang and Vinh Phuc. In particular, the project in Viet Yen district, Bac Giang province has the largest scale with 16.7 hectares, with an investment of 3,422 billion VND (about 150 million USD). The other two projects in Que Vo district, Bac Ninh province – scale 6.3 ha, invested 2,925 billion VND (more than 125 million USD) and in Vinh Phuc – scale 9.9 ha, invested more than 1,000 billion VND. 

Vietnam’s disease control is highly regarded by the international community and is an important driving force to attract more foreign investment after Covid-19. The capital investment and expansion of production chains of multinational corporations in the electronics sector have helped the industry record a good growth in the first half of the year, though affected by the disease. 

According to the Ministry of Industry and Trade, the index of industrial production of electronic products, computers and optical products in June increased by 29.3% over May and by 21.7% over the same period last year. 

In the first half of the year, production of this industry increased by nearly 10% over the same period, 6% higher than the first 6 months of 2019. 

In terms of export value, computers, electronic products and components reached nearly 19.3 billion USD, increase by over 24%; phones and accessories of about 21.5 billion USD. It is expected that in the last 6 months of the year, the electronics industry will still be greatly affected by the complicated disease situation which is likely to reduce the demand for electronic products in the US and European markets. 

Samsung’s global sales and output are forecast to decline due to the overall impact of the epidemic on electronics in general. Samsung Vietnam is also expected to reduce its export target to about 45.5 billion USD in 2020, compared with 51.4 billion USD in 2019.

Read More

Millenium Oil and Gas Corporation Applied to Invest 15 Billion USD in Khanh Hoa | ANT Consulting

Millennium Oil and Gas Corporation (USA) proposed to invest in Vietnam energy sector with a liquefied gas power project in Nam Van Phong area, Khanh Hoa with a total investment of up to 15 billion USD.      

After studying, Chairman of Millenium Vietnam Company (a member of Millenium Petroleum Group), if approved, they will invest in this project with a scale of 600ha, total investment capital of 15 billion USD, capacity of the power plant is 9,600MW. 

In addition, Millenium Oil and Gas Group will invest in a port system to supply gas to power plants and LNG distribution agents for the whole of Southeast Asia. The location chosen by the investor is in My Giang village, Ninh Phuoc commune or maybe in Ninh Hai ward, Ninh Hoa town. 

If the Khanh Hoa Provincial People’s Committee agrees to permit the investment, the project will be guaranteed by the US Government and will work with the Government of Vietnam to implement. The group hopes to turn the LNG terminal in southern Van Phong into the energy hub of Southeast Asia. Because Millenium is a corporation specializing in oil exploitation, it will sell gas directly to consumers without intermediaries, this is an advantage. 

According to the Chairman of Khanh Hoa Provincial People’s Committee, the area of investors applying for investment in the power plant and LNG storage is totally consistent with the local development orientation. 

It is known that Millenium Petroleum has 35 years of experience in implementing advanced power projects from natural gas, liquefied natural gas, wind, solar, geothermal and waste. 

The Group has implemented power projects in the US and countries around the world with a total investment of more than 36 billion USD. At the same time, the group is also the unit that holds many of the world’s leading advanced technologies and techniques, many of which are not available to other businesses.

Read More

The Energy Sector Welcomes New FDI Inflows | ANT Consulting

The Politburo’s Resolution 55-NQ/TW in 2020 creates great hope for business expansion for FDI enterprises providing complete equipment, technology and solutions for Vietnam energy market. 

According to Wärtsilä Vietnam Country Director, Resolution 55-NQ/TW aims to develop synchronously and reasonably, diversify types of energy, prioritizing the exploitation and use of all renewable energy sources, new energy, clean energy. This is the core business of Wärtsilä (from Finland, specializing in the development of sustainable and closed solutions for the energy market) for the past 184 years.      

In the Vietnamese market, Wärtsilä is doing strong marketing with the hope of increasing sales by providing technology for power projects. Wärtsilä’s energy business is leading the transition towards a future using 100% renewable energy. Wärtsilä offers flexible power plants, energy management and storage systems, as well as closed services to increase effectiveness and ensure efficiency. 

With the push of the Government, in recent years, renewable energy has developed extremely strong in Vietnam and this is a very good opportunity to invest in the energy sector in Vietnam. 

Another supplier – Fortum Power and Heat OY Finland is also looking forward to the coming of Resolution 55-NQ/TW to come to life soon. This business provides technology to minimize harmful thermal power emissions, mixed energy system development solutions in many markets around the globe. 

Fortum’s hydropower plant efficiency enhancement technology will enable efficient hydropower plant operation, minimizing overhaul and plant downtime. With coal-fired power, Fortum’s technology allows to replace up to 40% of the required amount of coal in coal-fired thermal power plants… This is what is being considered in Vietnam energy development process. 

With the national electricity demand growth rate for the 2016 – 2020 period of 10.6% and 8.5% for the period of 2021 – 2025 and 7% in the period of 2026 – 2030, Vietnam becomes an attractive market for domestic energy investors and foreign direct investment (FDI) enterprises. Accordingly, Vietnam needs to mobilize an additional 5,000 MW from now to 2025, which means that each year, it needs to pour an additional of 7 – 10 billion USD to invest in power projects. 

There have been new moves to welcome FDI inflows into energy. Recently, the US Millennium Company has been allowed by the Management Board of Van Phong Economic Zone (Khanh Hoa) to survey and research projects in the Van Phong area to study the feasibility of the gas-power project complex. 

According to Millennium, the LNG Center Project (over 10 million m3) and the Power Plant (capacity of 4,800 MW) has a total initial investment capital of 8 billion USD. In the future, the Company will increase the capacity of the power plant to 9,600 MW and the warehouse to 15 million m3, with an investment of 15 billion USD. Secretary of Khanh Hoa Provincial Party Committee affirmed that the idea of implementing the LNG Center and Power Plant Project of Millennium Company is suitable with the potential and orientation of industrial development in this area. 

Previously, at the Vietnam Energy Summit 2020, a series of cooperation in the implementation of energy projects was signed. Typically, Copenhagen Infrastructure Partners (CIP – Denmark) and Binh Thuan province have signed a Memorandum of Understanding for the development of La Gam offshore wind power project with a total capacity of up to 3.5 GW, with an investment of 10 billion USD. This is one of the first large-scale offshore wind power projects in Vietnam, as a prerequisite for attracting other foreign investors to offshore wind power projects. 

CIP is a pioneer in the offshore wind power industry in the Asia – Pacific, including projects in Vietnam, Taiwan, Korea, Japan and Australia. CIP operates 7 funds with more than 10 billion USD in committed capital. Funds have implemented more than 20 portfolios in energy infrastructure, with a total capacity of nearly 8 GW in the United States, UK, Germany, Spain and Taiwan. The funds also have more than 15 energy infrastructure projects that are in the process of preparing final investment decisions and are expected to commence within the next 2 – 3 years. 

According to the founding member of CIP, with the project in Binh Thuan, CIP commits to continue to cooperate with local partners to turn this project into a model of a successful technology transfer project in parallel with making maximum use of local resources and expertise.

Read More

Processing and Manufacturing Industry Attracts Foreign Capital | ANT Consulting

Background Check Service in Vietnam

Although the amount of registered and disbursed FDI capital was lower than the same period in 2019 due to the influence of Covid-19, the reduction has been significantly improved. 

The latest report of the Foreign Investment Department (Ministry of Planning and Investment) shows that, as of November 20th 2020, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 26.43 billion USD, equaling 83.1% compared to the same period in 2019. The realized capital of foreign direct investment projects was estimated at 17.2 billion USD, equaling 97.6% compared to the same period in 2019. 

Also according to the report, the processing and manufacturing industry is still the field attracting foreign capital, when there are 12.7 billion USD invested in this field, accounting for 48.2% of total registered investment capital. The field of electricity production and distribution ranked second with total investment capital of over 4.9 billion USD, accounting for 18.7% of total registered investment capital. Followed by the real estate business, wholesale and retail with a total registered capital of nearly 3.8 billion USD and 1.5 billion USD. 

In terms of investment partners, Singapore is leading with a total investment of nearly 8.1 billion USD, accounting for 30.6% of total investment in Vietnam; Korea ranked second with a total investment of 3.7 billion USD, accounting for 14% of total investment capital. China ranked third, with a total registered investment capital of 2.4 billion USD, accounting for 9.1% of total investment capital. Followed by Japan, Taiwan, Thailand… 

In terms of the number of new projects, Korea ranked first (573 projects); China ranked second (311 projects); Japan ranked third (251 projects); Hong Kong ranked fourth (164 projects)… 

Commenting on the foreign investment situation, the Foreign Investment Department assessed that, due to the impact of the Covid-19 pandemic, production and business activities were affected, the implemented investment capital of foreign investment projects in 11 months, although decreasing compared to the same period in 2019, but the decrease rate has improved. Many FDI enterprises are gradually recovering, maintaining good production and business activities, creating momentum for faster growth in the last months of 2020. 

Considering the strong decline in global investment due to the effects of the Covid-19 pandemic, this result is better than many other countries, demonstrating Vietnam’s attractiveness in the eyes of international investors. 

The Foreign Investment Department forecasts that there are still many foreign investors who are interested, confident and want to invest in Vietnam. But due to the influence of Covid-19, the movement of investors, as well as new investment decisions and the expansion of the scale of foreign investment projects, continue to be affected.

Read More

Complete 1st Stage of the Information Technology Zone in Danang

On January 6th 2020, the Prime Minister issued Decision no.27/QD-TTg on establishing the information technology zone in Danang – Stage 1, effective from January 6th 2020. Specifically, the Danang information technology (IT) zone – Stage 1 has an area of 131 hectares, located in Hoa Lien commune, Hoa Vang district, Danang city.

The Ministry of Information and Communications shall assume the prime responsibility and coordinate with the ministries, branches, Danang People’s Committee and concerned units in guiding the implementation of the decision; The Ministry of Planning and Investment was assigned to assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Information and Communications in, balancing the allocation of investment capital to support investment in and construction of infrastructure of Danang centralized IT Park according to law provisions.

Besides, the People’s Committee of Danang has 5 tasks including approving the organizational structure and operational regulations of the Danang central IT Management Group, then performing the state management function for the investment projects in the centralized IT zone, and prioritizing the allocation of development investment capital from the state budget for investment in infrastructure development connecting to Danang centralized IT Park – phase 1 and non-business social infrastructures in the area. Therefore, develop the plans and synchronously deploy solutions to attract foreign corporations and large domestic enterprises in the fields of IT, electronics and telecommunications to invest in Danang centralized IT Zone and set up company, apply for investment registration certificates. Finally, directing and organizing the levels of local governments and functional agencies of Danang city in cooperation with Danang IT Park development joint stock company to implement the construction, management to IT zone focus on Danang to develop in the fast and sustainable way.

Danang IT Park is entitled to preferential policies for centralized IT zone as stipulated in the Article 22 Decree no.154/2013/ND-CP to attract the investors to invest and set up business in Da Nang IP park, such as: Preferential corporate income tax for 15 years with tax exemption policy for the first 4 years, 5% for the next 9 years, 10% for the next 2 years and tax incentives after 15 years of operation is 20-22%. Moreover, exemption of import tax for imported goods to create fixed assets, raw materials, machinery and equipment that cannot be domestically produced to serve the production of IT products and IT services of enterprises; 50% reduction of taxable personal income tax on income from salaries and wages of high-tech human resources working in IT. In addition, site clearance and infrastructure investment in Danang IT Park- stage 1 will be supported by government and local budgets in accordance with the law, master plan on development of centralized information technology zone approved by the Government. The Danang IT Park – stage 1 will also receive investment credit loans at Vietnam Development Bank for investment.

In the future, domestic and international investors need to update the progress when making investment in the IT sector as well as seizing the investment opportunity, to be able to enjoy the best incentives that Danang set for IT sector in the city with aim to develop a green city to attract the investment that need talents in IT.

Read More

Child Adoption by Foreigners

Presently, there are many foreign people who want to adopt a Vietnamese. Besides, the law of Vietnam also has strict regulations for child adoption by foreigners.

First is the adoption of specific children by foreigners. The Adoption Act 2010 defined that the Vietnamese residing abroad and foreigners permanently residing overseas are allowed to adopt specific child in the following cases:

-As stepfather or stepmother of the adopted person;

-As uncle or aunt of the adopted person;

-Has adopted children who are siblings of the children that are adopting;

-Adopt children with disabilities, HIV / AIDS or other fatal diseases;

-As foreigners who are working and studying in Vietnam for at least 01 years.

In which the 4th case is a special case that is encouraged by the State with simpler procedures than other cases.

The order and procedures for adoption of child will be conducted as follows:

The profile of child adopting people includes:

+ Application for adoption by name;

+ A copy of the passport or replacing document that have the same value;

+ The written permission for child adoption in Vietnam;

+ The psychological and family investigation;

+ Documents certifying health status;

+ Documents certifying income and assets;

+ Judicial record;

+ Documents certifying marital status;

+ Documents evidencing eligible for child adoption by name.

+ In case of specific child adoption for children over 5 years old and two or more siblings, the record must clearly state the psychological preparation plan for children, preparing conditions for children to integrate into the new family, culture and society environments.

The above documents are issued and certified by the competent authority where the child adopting people permanently reside. To be certified by the State of Vietnam, it should be certified through the procedure of consular legalization.

The profile of children to be adopted includes:

+ Birth certificate

+ Certification of health issued by the district or higher health authorities;

+ Two full body and looking straight images, which was taken within 06 months

+ Documents about the noteworthy characteristics, preferences and habits of children.

These papers are issued by nurturing organizations or natural parents / guardians of children.

Profiles of the child adopting person and the child being adopted are submitted directly at the Bureau for adoption. The case that cannot submit the profile directly at the Bureau for adoption, the child adopting person has to authorize by written document their relatives residing in Vietnam to submit the profile at the Bureau for adoption or send the profile through the post office in the form of guarantees.

In the procedure of adoption of specific children with disabilities, HIV / AIDS or suffering from serious diseases, Vietnam law allows the free implementation of procedures to find alternative families and introduce children for adoption. The meaning of this is to shorten the procedure, creating conditions for these children to be adopted and nurtured in an enabling environment.

After receipt of the application for adoption, Bureau of Adoption will check and appraisal the profile to determine that the child adopting people was certified by the competent authorities of the country where he or she resides that he or she satisfies the eligibility for child adoption under the laws of that country and under the laws of Vietnam.

Towards the child to be adopted, after receiving a profile from natural parents or guardians of the child, the Bureau for adoption has the responsibility to inspect the children's record, conduct consultation with the natural father / mother or the guardians of the child about the child adoption for foreigners during 07 working days.

Within 07 working days from the expiration date of changing opinion about the child adoption for foreigner of the natural parents or guardians of children, if children are eligible to be adopted by foreigner, who are entitled to adoption by name, Bureau for adoption will report the Department of Justice, Department of Justice will certify by document that the children eligible for adoption by foreigner. Finally, the Department of Justice submitted to the Provincial People’s Committee decided to allow the foreigner to adopt the children.

Second is the adoption of a child not by name with foreign elements. The adoption of child not by name with foreign element is the case when Vietnamese residing abroad, foreigners reside in the country in which that country is a member of international treaties on child adoption with Vietnam and adopt Vietnamese children; Vietnam citizens residing in Vietnam adopt foreign children; foreigners permanently residing in Vietnam adopt Vietnamese children.

For the adoption case that not by name, the order and procedures will include:

+ The profile of people that want to adopt children should be submitted to the Bureau for adoption through the adoption agencies of that country that are licensed to operate in Vietnam. If that country does not have adoption agencies licensed to operate in Vietnam, the adoption profile should be submitted to the Bureau for adoption through diplomatic representative offices or consular offices of that country in Vietnam.

+ The profile of children being adopted will be submitted by natural parents or guardians of the children at the Bureau for adoption.

+ The Bureau for adoption receives, inspect and evaluate the profile of the child adopting people and children being adopted.

Compared to the case of adoption by name with children with disabilities, HIV / AIDS or other serious diseases, the case of adoption not by name, the Department of Justice has to implement the procedure to find alternative families and introduce children for adoption. The meaning of these two procedures is to encourage local Vietnamese permanent residents in Vietnam to adopt Vietnamese children, enabling Vietnamese children to live, learn and develop in their own homeland. Only when the above procedure to find alternative families and introduce children for adoption have finished without any local people wanting to adopt those children, the Department of Justice will consider deciding for the children to be adopted by foreigners.

The notice period to find an alternative family is regulated as 60 days, during this period, if any Vietnamese wants to adopt children, they should contact the Commune People’s Committee where children reside to consider and settle the adoption. If time runs out 60 days, the Department of Justice has to prepare a list of children who need to find alternative families and submit to the Ministry of Justice.

On the other hand, within 30 days after receiving a profile from foreigners that want to adopt Vietnamese children, the Department of Justice has to review and introduce children to be adopted on the basis of children with no domestic adoption. After introducing children to be adopted, the Department of Justice reported the Provincial People’s Committee for comments.

The case that the Provincial People’s Committee disagrees, they have to send a written document stating the reasons and submit it to the Department of Justice. On the other hand, the case that the Provincial People’s Committee agrees, within 07 working days, the Provincial People’s Committee decided for children for abroad adoption.

Read More

Change of Headquarter of Da Nang Immigration Department

As of August 2018, according to the project for rearranging the administrative function of the Government and the Ministry of Public Security, Immigration Department of Da Nang has been merged into Immigration Department of Hanoi. Therefore, the procedures related to entry, exit of Vietnamese citizens and foreigners such as issuing visa, exempting visa, temporary residence card, permanent residence in Da Nang shall be implemented in Immigration Department of Hanoi.

Relating to the dossier and procedures carried out at the Immigration Department of Da Nang such as issuing passport, temporary residence card, permanent residence, the application shall be submitted to Immigration Department of Da Nang. Thereafter, this agency shall transfer such dossier to Immigration Department of Hanoi for approval. Finally, the results shall be returned to Da Nang.

For most of immigration procedures which used to be implemented in Immigration Department of Da Nang, such as issuing visas, the applicant shall submit the dossier directly to Immigration Department of Hanoi. The change could possibly add up processing time, and inconvenience if there is requirement for re-submission, amendment and supplement.

Read More

Challenges in Preparing Documents for Representative Office Application

The representative office (RO) is a popular foreign investment vehicle which investors utilize when wishing to enter the Vietnamese market without committing too much investment. The representative office could help the foreign entity to hire local employees to carry out market research, business promotion.

A foreign company wishes to establish a representative office in Vietnam must submit an application dossier for a license to the Provincial Department of Industry and Trade (DIT).

However, there are cases where the government agencies receiving the application would be different from the department of industry and trade depending on the business lines carried out by the foreign entity.

Firstly, the trade service is bound in Vietnam’s Commitment in trade service in WTO but there are no existing specialized legislative documents:

When the trade service which the foreign entity provides does not fall under areas prescribed by specialized legislative documents in Vietnam, the licensing agency shall submit a written request for directions to the relevant ministries for opinions. The foreign entity shall wait for at least 15 working days for receiving a written notice of whether the license for establishment of the representative office is granted or rejected. This process not only extends the duration of establishment of a representative office but also raises risk of rejection.

Secondly, the trade service is not yet bound in Vietnam’s Commitment:

Where the scope of operation of the representative office is inconsistent with Vietnam’s commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, there is an extra process in registration of representative office. The representative office shall be approved by relevant ministers, heads of ministerial agencies for establishment of the representative office.

Thirdly, trade services are supplied in foreign countries, but such does not exist in Vietnam

The foreign entity has to apply codes as follows to Vietnam standard industrial classification system or CPC. If the foreign entity can not define a code, it is merely impossible to register the representative office.

In most of the cases, the foreign entity should consult with a law firms in Vietnam whom lawyers have expertise in WTO laws, law on investment and experience in working with Vietnam state authorities, to prepare application right at the start and be ready to challenge the authorities when required to protect the best interests of the clients.

Read More

Cases that Foreigners Do Not Have to Apply for Work Permits

Pursuant to Decree No. 11/2016/ND-CP and 140/2018/NĐ-CP , the below cases of foreigner will not have to apply for work permit in Vietnam:

-As capital contributing members or the owner of a limited liability company.

-As member of the Managing Board of the joint stock company.

-As Head of the representative office, project of international organizations, non-governmental organizations in Vietnam.

-Entry into Vietnam for less than 03 months to carry out the service offering.

-Entry into Vietnam for less than 03 months to handle the incidents, technical situations and complicated technology arising that influence or threaten the production and business that Vietnam expert and foreign experts that currently in Vietnam cannot handle.

-As foreign lawyers that are licensed to practice law in Vietnam under the provisions of the Law on Lawyers.

-Under the provisions of the international treaties in which the Socialist Republic of Vietnam is a member.

-As pupils and students studying in Vietnam and working in Vietnam but the employer must notify 07 days with state authorities on the provincial labor.

-Moving within the enterprises in the range of 11 service sectors in the service commitments of Vietnam to the World Trade Organization, including: business, communication, construction, distribution, education, environment, finance, health, tourism, culture and transport;

-Entry into Vietnam to provide advisory services and technical expertise or perform other tasks to serve the research, construction, appraisal, monitoring, evaluation, management and implementation of programs and projects funded with official development assistance (ODA) as prescribed or agreed in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;

-Granted the work permit on information and press in Vietnam by the Vietnam Ministry of Foreign Affairs in accordance with law;

-Sent to Vietnam by agencies and foreign organizations to teach and research in the international school under the jurisdiction of the foreign diplomatic representative agencies or international organizations in Vietnam or the Ministry of Education and Training certificate for teaching and researching in the educational and training institutions in Vietnam;

-Volunteers certified by the foreign diplomatic representative agencies or international organizations in Vietnam

-Entry into Vietnam working in the positions of professional, manager, executive or technical employees with working duration of less than 30 days and no more than 90 cumulative days in 01 years;

-Entry into Vietnam to implement international agreements that agencies and organizations at the central and province have signed as in accordance with law;

-Pupils and students studying in abroad schools and training institutions that have internship agreements in the agencies, organizations and enterprises in Vietnam;

-Relatives of members of foreign representatives in Vietnam working after licensed by the Ministry of Foreign Affairs, except the case where international treaties that the Socialist Republic of Vietnam is a member that have other regulations;

-Have official passport to work for state agencies, political organizations and political – social organizations;

-Other cases decided by the Prime Minister on the proposal of the Ministry of Labour – Invalids and Social Affairs.

Our lawyers have consistently made valuable and important contributions to our profession.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

Read More

Business Conditions for Condominium Management Training Service

On July 1st 2016, the Government issued Decree No. 79/2016/ND-CP guiding the business of training service, improving the professional knowledge, management profession and operation of condominium.

Accordingly, organizations and individuals providing the above services must fully satisfy the 05 following conditions:

– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.

– Second, has a facility and classroom to ensure sufficient seat for students and location for students to practice on professional knowledge and practice.

– Third, has syllabus or teaching materials consistent with the training framework program that was promulgated by the Ministry of Construction.

– Fourth, has a minimum of 40% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.

– Fifth, being recognized by the Ministry of Construction or the agency authorized by the Ministry of Construction as qualifying for business of condominium management training service.

In addition, this Decree also provides for conditions for business of real estate brokerage practice training service as follows:

– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.

– Second, has a facility and classroom to ensure sufficient seats for students and location for students to practice on knowledge of real estate brokerage and administration of real estate trading floors.

– Third, has syllabus or teaching materials consistent with the training framework program that was promulgated by the Ministry of Construction.

– Fourth, has a minimum of 30% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.

Decree No. 79/2016/ND-CP officially takes effect upon signing.

Read More

Attraction from Industrial Parks in Phu Yen

Phu Yen is gradually moving its economic structure from a purely agricultural province to industry, tourism and services. In order to achieve this goal, thousands of hectares of industrial parks have been prepared, along with infrastructure investment with full facilities to attract projects and foreign investors to invest in Vietnam and in Phu Yen province.

In May 1974, at the An Phu Industrial Zone in Tuy Hoa, Phu Yen province, the electronic component factory was kicked off, marking the presence of the high-tech industry in Phu Yen. This is the first electronic component factory to be built in Phu Yen, with a capacity of 500 million pieces per year, with such main products as RF coils and electromagnets. Total investment for the factory is over 5.7 million USD, 100% of products will be exported. The establishment of a factory in Phu Yen province is part of Coilcraft Corporation’s production development in Asia.

The Vice Chairman of Phu Yen People’s Committee welcomed the Coilcraft Corporation for investing in Phu Yen, contributing significantly to the socio-economic development and the industrialization and modernization process of the province. At the same time, it is suggested that the Management Board of Phu Yen Economic Zone and investors continue to have connections and promote the industrial potential of Phu Yen to other investors.

The appearance of electronic component factory invested in An Phu Industrial Park, besides the glass production factories of Hoang Hai Trading Co., Tan Phat Canned Food Joint Stock Company and the project of CCIPY Vietnam limited liability company., as well as bottled water , soft water plants, and seafood processing plants (in Hoa Hiep 1 Industrial Park) of Xin Bang Co., Ltd have made the investment situation in Phu Yen’s industrial zones more diverse and exciting.

Besides implementing the policy of economic restructuring towards industrialization, the Party and Phu Yen authorities have made many appropriate policies in order to mobilize internal resources in the province and attract foreign investment. At the same time, completing investment in infrastructure of approved industrial zones and clusters; promote the efficiency of investment and the role of industrial zones and clusters in economic restructuring of the industry, contributing to the economic restructuring of the province.

Currently, Phu Yen province plans to build industrial parks, attracting hundreds of investment projects. In particular, it is concentrated in Hoa Hiep 1 Industrial Park, Hoa Hiep 2, An Phu, North East Song Cau 1 and North East Song Cau 2.

One of the favorable conditions for the management board of Phu Yen economic zone to carry out the plans of promoting and attracting investment in line with the industries and sectors in the industrial parks. That is Phu Yen Provincial Industrial Development Plan up to 2020, with vision to 2030, which has been approved by the provincial People’s Committee.

The plan identifies groups of industries with priority given to development till 2020 with a vision to 2030, including: processing of agricultural, forest and aquatic products; medicine; textile; products from new technology; software industry and digital content; chemistry; energy; electronic equipment, telecommunications equipment and information technology; mechanical engineering; supporting industry.

Read More

Licensing for Foreign Contractor

Under the provisions of the Vietnam law for operations of foreign contractors in Vietnam in the fields: investment and construction consulting, supply of materials and technology equipment together with technical services related to the construction works, construction of work, foreign contractors must apply for a contractor license.

Conditions for obtaining permits for foreign contractor in Vietnam:

Case for bidding packages that are subject to compulsory application in accordance with the bidding law of Vietnam: Win the bid or select the bid.

– Had won the bid or can select the bid.

– Had a forwarding bid contract.

Case for bidding packages that are not subject to compulsory application in accordance with the bidding law of Vietnam:

– Had won the bid or can select the bid.

– Had a forwarding bid contract.

Meeting all the conditions and capability that are consistent with contracted works prescribed by the law of Vietnam.

In all cases that foreign contractors are assigned the bid (due to win the bid through bidding or select the bid), foreign contractors have to codeshare with Vietnam contractors or have to use Vietnam sub-contractors (except the cases that are allowed by the Prime Minister or prescribed by the law of Vietnam).

Foreign contractors have to commit to fully implement the provisions of the law of Vietnam relating to contracting activities in Vietnam.

Read More

Legal Procedures Post Licensing in Vietnam

After establishing a company in Vietnam, the compay has to perform a number of legal procedures for compliance purposes.

First, they have to declare the license tax. The tax declaration should be submitted to tax authorities. If the taxpayer has a branch in the same province, the tax declarations of the branch should be submitted to the taxpayer’s tax authority. On the other hand, if the taxpayer has a branch in another province, the tax declarations of the branch should be submitted to the tax authority of the branch. In case when the taxpayer does not have a permanent business location, the tax declaration should be submitted to the sub-department of taxation where the business is located or where the taxpayer resides. License tax is submitted annually and if the taxpayer has declared and paid license tax, he is not required to submit license tax declaration in the next year if the amount of license tax payable is not changed. In case the taxpayer amount of license tax payable in the next year is changed, a tax declaration shall be submitted by December 31st of that year.

Second, the enterprise has to conduct the VAT (value added tax) declaration. The taxpayer that has just begun his business shall declare VAT quarterly. In the next calendar year after 12 months of business, VAT declarations shall be declared whether monthly or quarterly depending on the revenue from the sale of goods and/or services in the preceding calendar year (12 months). VAT shall be declared monthly or quarterly throughout the calendar year and the 3-year period. For example, the first stable period begins on October 1st, 2014 and ends on December 31st 2016.

Third is the CIT declaration (corporate income tax). The CIT declaration should be submitted to the supervisory tax authorities. According to business results, the taxpayer shall make the quarterly tax payment within 30 days of the quarter succeeding the quarter in which tax is incurred; they shall not submit the provisional CIT declaration quarterly.

The fourth is the invoice printing. Before placing the first order for invoices, the company must send a written request for permission to use ordered invoices to the supervisory tax authority. Before the business uses invoices for its sale of goods and services, except for invoices purchased from or provided by the tax authority, the business has to send a notice of invoice publication together with a sample invoice to the tax authority.

Every quarter, sellers of goods and services shall submit the invoice using a report to the tax authority, even when there are no invoices that have been used during the period. The report of the first quarter shall be submitted by April 30th, second quarter by July 30th, third quarter by October 30th, and fourth quarter by January 30th of the next year. If no invoices are used during the period, the quantity of used invoices in the report shall be zero (0).

The fifth is the bank account. The opening of a bank account to conduct transactions with customers is necessary because according to the ministry of Finance, the invoice value of 20 million VND or above should be transferred through the bank. Within 10 days from the day that enterprise opens a bank account, the company has to notify the bank account number to the competent tax agency.

The sixth also the last one is labour and social insurance. If the contract between enterprise and employee has a duration of over 3 months, it is subjected to compulsory social insurance.

Read More

Renewal of License for the Establishment of Branches Office in Vietnam

The extension of the license for the establishment of a foreign trader’s branch in Vietnam shall be following the regulation of the commercial law and the relevant guiding decrees and circulars under Vietnam laws.

Preparation of dossiers for extension of license for the establishment of branches includes:

-Application for extension of license for the establishment of branches, made according to the form set by the Ministry of Industry and Trade, signed by a competent representative of the foreign trader;

-A copy of the business registration certificate or equivalent paper of the foreign trader that is translated into Vietnamese and certified by a Vietnamese diplomatic mission or consulate abroad consular legalization in accordance with the law of Vietnam;

-Copies of audited financial statements or documents certifying the fulfillment of tax or financial obligations in the latest fiscal year or papers of equivalent value issued by competent agencies or organizations (where the foreign trader established) to prove the existence and operation of the foreign trader in the latest financial year, it must be translated into Vietnamese and authenticated in accordance with the provisions of Vietnamese law;

-A copy of the license for the establishment of the branch.

The order and procedures for extension of the license for the establishment of the branch at a competent agency shall be as follows:

-A dossier for extension of the license for the establishment of the branch must be submitted within 30 days at the latest before the license expires;

-Foreign traders submit applications directly or via post or online (if applicable) to the Ministry of Industry and Trade;

-Within 03 working days from the date of receipt of the dossier, the Ministry of Industry and Trade shall check and request the supplement if the dossier is incomplete and invalid. Requests for supplementary records are made at most once during the process of processing applications;

-Within 05 working days from the date of receipt of the complete and valid dossier, the Ministry of Industry and Trade shall renew the branch establishment permit. In case of non-renewal, the reasons therefor must be clearly stated in writing;

-In case the extension of the license for the establishment of the branch is not governed in specialized legal documents, the Ministry of Industry and Trade shall send a written request for comment to the specialized management ministry within 03 working days from the date of receipt of a complete and valid file. Within 5 working days from the date of receiving the Ministry of Industry and Trade’s written request, the specialized managing ministries shall clearly state whether they agree or disagree with the license extension. Within 5 working days after receiving the opinions of the specialized management ministry, the Ministry of Industry and Trade shall extend or not extend the branch establishment permit to the foreign trader. In case of non-renewal, the reasons therefor must be clearly stated in writing;

-Within 15 days from the date of extension of the license for the establishment of the branch, the Ministry of Industry and Trade shall publish on the website of the Ministry.

Read More

Simplifying the Procedure for Foreigner to Reside in Vietnam

For foreigners wishing to come to Vietnam to work and reside temporarily, they need to either set-up a company in Vietnam or work for others. The owner of the company does not need a work permit but still needs to apply for a temporary residence card.

However, the foreign employee will need the employer to sponsor the work permit in Vietnam before applying for a temporary residence card. A recent draft law on entry, exit and residence of foreigner in Vietnam has been proposed with some changes. The draft regulates many open provisions on entry-exit procedure, temporary and permanent residence conditions for foreigners to reside in Vietnam. ANT Lawyers always follows the new updates about administrative procedures in Vietnam to provide our client with the best service.

The new draft law details conditions for granting the temporary residence card for foreigners working in Vietnam, raising the term of this card from 3 year to 5 year. The foreigners’ category expands to scientists and specialists residing in Vietnam for the purpose of attracting international talents, the foreigners who don’t have any type of document proving nationality, and have resided in Vietnam before the year 2000. The foreigners holding temporary residence cards must change cards periodically 10 years at the issuing offices. The draft law does not allow the foreigners to change the entry purpose, but allows them to supplement the purpose of belonging persons in some specific cases such as in terms of diplomatic representative offices, consulates, international representative offices of the United Nations and students at universities, colleges, schools.

For more information or requirements of legal services to obtain a temporary residence card in Vietnam, we could assist. 

Read More