Danang to call on investment in hi-tech, real estate after Tet

DANANG – The central coastal city of Danang plans to call for investment in 44 projects mostly in the fields of hi-tech and real estate after the Tet holiday, with each of them needing US$30,000 to US$400 million, according to a representative of the Danang Investment Promotion Agency.

Half of the 44 projects are in the information-technology and hi-tech sectors and will be executed in Danang Hi-Tech Park.

The city is seeking investors for a solar energy project which needs US$150 million to US$400 million, and a US$200-million project to manufacture semiconductor materials for electronic parts and circuits. A 60-hectare urban area project and Truoc Dong Lake ecological zone covering 100 hectares of land are also in need of investment capital.

Apart from that, the city plans to resume work on the delayed projects that have yet to be licensed for investment, including a No.2 software park project covering over 50 hectares. Singapore's firm Sembcorp proposed injecting over US$90 million into the project long ago, but it has been awaiting word from the ministries of Foreign Affairs, Public Security, and National Defense as it is located in a maritime boundary area.

Meanwhile, Matrix Holdings Limited from Hong Kong wants to build a racetrack and horse training and multiplication center in the city, with total capital of US$200 million. An appropriate site is still being sought for it.

Further, Danang will prioritize foreign direct investment in digital, biotechnology, hi-tech agricultural projects, meaning that projects that apply outdated technologies and harm the environment will not be accepted. Investors from Japan, South Korea and Europe are preferred.

-Thesaigontimes-

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Foreign investment in Vietnam surges

HCMC - New foreign investment approvals in Vietnam during the year to January 20 reached US$1.9 billion, rocketing by 51.9% year-on-year, according to the latest report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

As of January 20, up to 226 new projects obtained investment certificates, with total registered capital of some US$805 million, surging by 81.9% year-on-year. In addition, 72 foreign-invested projects won approval to inject an additional US$340.2 million, equal to 74.5% of the figure in the same period last year.

In addition, foreign investors acquired local company shares worth US$761.8 million in 489 transactions, surging 114% over the year-ago period.

According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector was the most attractive, receiving a total of US$1.19 billion, making up 62.4% of the fresh capital.

The science and technology sector came in second, with US$185.8 million, followed by the real estate sector, with US$179.1 million.

Japan remained Vietnam’s largest investor this month, with US$364 million, accounting for 19% of the total. South Korea ranked second, with US$349.1 million, and the third largest investor was China, with US$307.8 million.

-Thesaigontime-

ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 28 730 86 529. 

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Foreign investors prefer indirect investment in Vietnam

HCMC - Foreign investors have stepped up their indirect investments in Vietnamese enterprises through capital contributions and stake acquisitions, instead of direct investments.

According to data from the Ministry of Planning and Investment’s Foreign Investment Agency, new foreign direct investment (FDI) approvals in Vietnam this year reported a decline over last year, while there was a surge in foreign indirect investment inflows.

Specifically, from early this year to December 20, foreign investors conducted nearly 6,500 transactions to contribute funds and acquire shares in local firms, with a combined value of US$9.89 billion, up a staggering 59.8% from the year-ago period.

Meanwhile, the country issued investment certificates for over 3,000 new FDI projects, with total registered capital of nearly US$18 billion in the period, down 15.5% year-on-year.

In addition, FDI investors registered an additional US$7.59 billion for nearly 1,200 other operational projects in the period, marking a fall of 7.59% against the same period last year.

In general, the country attracted US$35.46 billion in new foreign investment this year, equivalent to 98.8% of the figure recorded last year.

According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector was the most attractive, receiving a total investment of US$16.58 billion, making up 46.7% of the fresh capital.

The real estate sector came in second, with US$6.6 billion, followed by the retail and wholesale sector, with US$3.67 billion.

Japan remained Vietnam’s largest investor this year, with US$8.59 billion, accounting for nearly 24.2% of the total. South Korea ranked second, with US$7.2 billion, and the third largest investor was Singapore, with US$5 billion.

- Saigon Times -

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Vietnam gets ready to lift foreign ownership caps

A new draft law is set to attract more foreign investment into multiple sectors by removing foreign ownership caps.

At a Wednesday forum in Hanoi, the Ministry of Finance presented a draft securities law that would remove the current 49 percent foreign ownership cap in many sectors, allowing majority or even 100 percent ownership of a company.

"The new law would remove the limit on companies operating in many of more than 200 of the conditional sectors," a Reuters report quoted Nguyen Quang Viet, an official in the State Securities Commission’s legal department, as saying.

In Vietnam, conditional sectors refer to industries subject to additional regulations that would override limits set out by the securities law.

"We expect the new law to encourage development of the market in a faster, stronger and more sustainable manner," Deputy Finance Minister Huynh Quang Hai said at the forum.

Former head of the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment Le Dang Doanh said that the bill would "push" more foreign investment into Vietnam.

"Foreign investors have been reluctant to invest in Vietnamese businesses because they can only own a minority stake so far," he told VnExpress International.

Should the 49 percent restriction be removed, foreign companies will be able to gain further management rights, which will be a big incentive to enter Vietnam and expand their business, he added. "With the new law, they can hold decisive positions in Vietnamese companies."

Industry insiders also expect that the new regulation will allow foreign investors to expand their operations in Vietnam.

Citibank's Tsuyoshi Yamashita, who deals with Japanese businesses expanding into Vietnam, told the Nikkei Asian Review that real estate and infrastructure-related business, such as thermal power generation, will likely see a higher demand from foreign companies to do business together.

Roy Zuin Forney, an analyst in international business advisory at consultancy Dezan Shira & Associates, said that Asian investors will be interested in seeking merger and acquisition (M&A) deals with Vietnamese companies to reach into this market.

Vietnamese people’s rising income has allowed more of them to afford health care, which would be a potential market for the pharmaceutical sector, he said.

One source familiar with M&A deals in Vietnam told the Nikkei that Indian drugmaker Renova Global, which already has an office in Vietnam, is looking for opportunities to expand further in the country.

Informational technology and logistics are other industries that will also likely see more foreign investment flow in, industry insiders said.

However, Vietnam remains firm in keeping "sensitive and important" sectors out of the list.

Companies in security, defence, telecommunications and insurance, will continue to have 49 percent foreign ownership caps, Reuters quoted State Securities Commission official Viet as saying. The limit for banks will remain at 30 percent, he added.

Can Van Luc, a government economic advisor, said the government would consider raising limits on foreign ownership of banks on a case-by-case basis.

The draft law is expected to be submitted to the parliament for approval next year and take effect in January 2020.

Source: evnexpress

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Government courts Swiss enterprises to invest in Vietnam

HCMC – The Government has expressed its desire to attract further investment from Swiss enterprises, praising their great strengths in advanced technology as well as their experience with the fourth industrial revolution and the global supply chain, news website Vietnam Plus reported, citing Deputy Prime Minister Vuong Dinh Hue.

Deputy Prime Minister Hue on Monday, November 5, held a meeting with a Swiss enterprise delegation led by Andreas Gerber, head of Swiss SME business at Credit Suisse bank, in a visit to Vietnam to gain more insights into investment opportunities in the country.

The Government will create as many favorable business conditions as possible to ease the investment flow from foreign firms, stated Hue. He stressed that the country had considered foreign-invested enterprises an integral part of its economy and lauded the activities of the Swiss delegation in some localities across the country over the years.

Hue noted that there was significant room for foreign investment opportunities in Vietnam. In particular, Vietnam is in need of further overseas investment in areas in which Swiss firms excel.

Apart from that, the Government also prioritizes developing the finance-banking sector and encourages mergers and acquisitions in this sector to establish fintech and digital banking models in the years to come.

Moreover, foreign companies are encouraged to participate in the process of equitizing State-owned enterprises, become their strategic partners or get involved in local ventures and startup development.

Addressing the reception, Andreas Gerber remarked that the delegation had come to Vietnam for the fifth time to seek business opportunities. This time, it will visit the northern localities of Hanoi, Haiphong City and Ninh Binh Province.

The delegation aims to transfer advanced technologies from Switzerland to Vietnam in the coming period, according to its leader. During the visit, one of the enterprises decided to invest directly in the country.

This is reportedly the largest Swiss delegation seen to date, with enterprises boasting strong business performance and operating in various sectors, such as glass manufacturing, nanotechnology, medical technology combined with artificial intelligence, application software and communications.

As for Vietnam, the Government has prioritized foreign investment in nine sectors such as transportation and socioeconomic infrastructure under the public-private partnership format, manufacturing and supporting industries deploying advanced technology, hi-tech agriculture and logistics, said Hue.

Source: TheSaigonTimes

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EuroCham Members Attending Hearings at European Parliament on EVFTA in Oct 2018

On 11th October, 2018, Mr Tuan Nguyen, the representative of ANT Lawyers law firm has participated in EuroCham Brussels Mission between 8th and 12th October, 2018 to attend hearings at European Parliament on the Free Trade Agreement (EVFTA), visited and discussed with the diplomats of European Union in head office of EEAS in Belgium, Mr. David O’Sullivan, the Chief Operating Officer of European External Action Service (EEAS) to seek understanding and support to promote the approval of EVFTA.

Along with other delegates of EuroCham at this meeting, Mr Tuan Nguyen, the representative of ANT Lawyers discussed with Mr. Sullivan on issues concerning EU relating to EVFTA. The issues included: the employee’s rights, the balance between investment incentives and environmental protection, the challenges that the Vietnamese Government could face as well as the handling measures. In addition, Mr Sullivan has showed concerns in Vietnam’s legal system and how to fit in with common standards of European counties, to ensure the balance of information control and privacy. Mr. Sullivan also emphasized the compliance with the international principles. The representative of EU has recognized that this is the appropriate time for Vietnam and to EU countries members to proceed with the agreement because it would help address the current shortcomings.

Free Trade Agreement between EU and Vietnam is expected to reduce more than 90% tariff and create the most favorable conditions for exporting Vietnam goods to EU market and vice versa. Relating to European businesses, this is an opportunity for extending investment and accessing to new markets. Vietnamese could enjoy the high quality goods with cheap price. Relating to Vietnam businesses, EU is a very potential market when tariff is removed.

The Vietnam EuroCham delegation has represented more than 1,000 European companies to promote the signing EVFTA at European Parliament. ANT Lawyers law firm is honored to participate to discuss, contribute for the promotion of approval of the agreement. ANT Lawyers law firm is committed to bridge European companies to investment more in Vietnam and that Vietnamese companies should to enter European market through its reliable global law form networks

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Conditional Business Lines Under Law on Investment in Vietnam

Law on amendment and supplement to Article 6 and Annex 4 on the list of conditional business lines stipulated in the Law on Investment has been ratified by the 14th national assembly of the Socialist Republic of Vietnam at the second meeting session dated November 22nd, 2016.

Accordingly, pursuant to the constitution of the Socialist Republic of Vietnam, the National Assembly issues the list of conditional business lines stipulated in the Law on Investment no. 67/2014/QH13.

The enterprises which are established to operate in the area of conditional business have to comply with conditions regulated by law before conducting business operation in Vietnam.

Foreign investor if wishing to set up company in the conditional areas has to meet additional investment conditions depending on international treaties, WTO commitment by Vietnam, and other specialized laws in Vietnam. It is advised that the foreign investor to contact Vietnam law firms to be advised on the establishment of company in Vietnam to receive the proper legal advice.

We are listing the conditional business lines for the reference below.

No. LINES OF BUSINESS

1. Manufacture of seals

2. Sale (and repair) of combat gear

3. Sale of fireworks other than firecrackers

4. Sale of camouflaged software and equipment used for audio and video recording and positioning;

5. Paintball gun business

6. Sale of military equipment and military goods for the use of the armed forces, military weapons, specialized military equipment and vehicles for the use of the army and police; special military components, accessories, materials and equipment and military engineering

7. Pawning services

8. Massage services

9. Sale emergency signaling devices

10. Debt collection services

11. Security services

12. Fire safety services

13. Lawyer’s practice

14. Notary’s practice

15. Judicial assessment in the fields of finance, banking, construction, antiques, relics, copyrights

16. Auctioneering services

17. Commercial arbitration services

18. Bailiff’s practice

19. Liquidation and safeguarding of assets of enterprises and cooperatives in the pending time of bankruptcy

20. Accounting services

21. Auditing services

22. Tax agent services

23. Customs brokerage services

24. Sale of duty-free goods

25. Bonded warehouse and container freight station business

26. Premises for conducting customs procedures, customs gathering, inspection and supervision for rent.

27. Securities trading

28. Securities registration, depository, offsetting, and liquidation services by Vietnam Securities Depository/organizations trading in listed securities and other securities.

29. Insurance business

30. Reinsurance business

31. Insurance brokerage

32. Insurance agents

33. Property assessment service

34. Lottery business

35. Casino video games for foreigners

36. Debt trade services

37. Ratings services

38. Casino business

39. Betting business

40. Voluntary pension fund management services

41. Oil and gas business

42. Gas trading

43. Manufacture and repair of liquefied petroleum gas (LPG) bottles

44. Commercial assessment services

45. Sale and destruction of industrial explosives

46. Sale of explosive precursors

47. Industrial explosives and explosive precursors –based business

48. Blasting services

49. Sale of chemicals other than prohibited chemicals stipulated in the International Convention on prohibition of development, production, stockpiling and use of chemical weapons on their destruction

50. Alcohol business

51. Sale of tobacco, cigarette, machinery and equipment for tobacco industries

52. Sale of foods under the administration of the Ministry of Industry and Trade

53. Commodity exchange operation

54. Electricity generation, transmission, distribution, wholesale, retail, import, export and consultancy

55. Rice export

56. Temporary import and re-export of goods subjected to special excise duty

57. Temporary import and export frozen foods

58. Temporary import and re-export of goods on the List of used goods

59. Franchising

60. Logistics services

61. Sale of minerals

62. Sale of industrial precursors

63. Commodity trading and business activities directly related to commodity trading by foreign investors and foreign-invested business entities

64. Multi-level marketing business

65. E-commerce business

66. Petroleum business

67. Energy audit

68. Vocational training

69. Assessment of the quality of vocational education

70. Occupational skill assessment services

71. Occupational safety inspection services

72. Occupational safety and health training

73. Employment agencies

74. Overseas employment services

75. Voluntary drug detoxification services

76. Outsourcing

77. Road transport services

78. Automobile maintenance

79. Manufacture, assembly and import of automobiles

80. Motor vehicles inspection services

81. Driver training services

82. Traffic safety inspector training services

83. Driving test services

84. Traffic safety inspection services

85. Waterway transport services

86. Building, repair and renovation of watercraft

87. Inland watercraft crewmen and operator training services

88. Training, recruitment and supply of marine crews

89. Maritime safety services

90. Shipping services and shipping agencies

91. Towage services

92. Import and demolition of used ships

93. Building, renovation and repair of ships

94. Seaport operation business

95. Air transport business

96. Design, manufacture, maintenance and testing of aircrafts, their engines, propellers, avionics and equipment thereof in Vietnam

97. Airport operation business

98. Aviation service at airports

99. Air navigation services

100. Flight crew training services

101. Rail transport business

102. Rail infrastructure business

103. Urban railway business

104. Multimodal transport

105. Transport of dangerous goods

106. Pipeline transport business

107. Real estate business

108. Provision of training in real estate brokerage and property exchange operation

109. Provision of training in apartment building operation.

110. Construction management consulting services

111. Construction surveying services

112. (Construction) design and assessment services

113. Construction supervision services

114. Construction services

115. Construction activities by foreign contractors

116. Construction cost management services

117. Construction quality assessment services

118. Construction experiment services

119. Apartment building operation services

120. Cremation facility operation services

121. Construction planning services

122. Urban planning consulting services provided by foreign entities

123. Sale of white asbestos of Serpentine group

124. Postal services

125. Telecommunications services

126. Certification of digital signatures

127. Publishing

128. Printing services, except for printing of package

129. Publication services

130. Social networking services

131. Online game business

132. Paid radio and television services

133. News website development services

134. Processing, recycling, repair and renovation of used IT products of foreign owners which are on the List of used IT products banned from import

135. Provision of information via telecommunications and internets

136. “.vn” domain name registration and maintenance services

137. Cybersecurity products and services

138. Civil cryptography services and products

139. Sale of potable jamming devices

140. Preschool education business

141. Secondary school education business

142. Higher education business

143. Operation of foreign-invested education institutions, representative offices of foreign education institutions in Vietnam and branches of foreign-invested education institutions

144. Continuing education business

145. Operation of special schools

146. Association in education with foreign countries

147. Education quality assessment

148. Overseas study consulting services

149. Fishing

150. Sale of aquatic products

151. Sale of aquatic feed and animal feeds

152. Animal feed and aquatic feed testing services

153. Sale of biological preparations, microorganism, chemicals and environmental remediation agents used for aquaculture

154. Building and renovation of fishing vessels

155. Breeding, raising, artificial propagation of wild animals and plants according to CITES Appendix

156. Breeding, raising, artificial propagation of wild, endangered and rare animals and plants according to CITES Appendix

157. Breeding and raising of normal wild animals

158. Export, import, re-export, transit and introduction of marine specimens stipulated in CITES Appendix

159. Export, import and re-export of specimens bred, raised and artificially propagated according to CITES Appendix

160. Sale of forest animals and plants restricted from use for commercial purposes

161. Sale of plant protection products

162. Processing of items subjected to undergo plant quarantine

163. Pesticide testing services

164. Plant protection services

165. Sale of veterinary medicines, vaccines, biological preparations, microorganisms and chemicals used in veterinary medicine

166. Veterinary technical services

167. Animal testing and surgery

168. Provision of vaccination, diagnosis, prescription, treatment and healthcare services for animals

169. Veterinary medicine testing and assay (including veterinary medicines, aquatic veterinary medicines, biological preparations, microorganisms and chemicals used for veterinary medicines, aquatic veterinary medicines)

170. Concentrated husbandry

171. Slaughtering

172. Sale of foods under the administration of the Ministry of Agriculture and Rural Development

173. Animals and animal product quarantine services

174. Sale of fertilizers

175. Fertilizer testing services

176. Sale of plant varieties and animal breeds

177. Sale of aquatic breeds

178. Testing of plant varieties and animal breeds

179. Aquatic breed testing services

180. Testing and assay of biological preparations, microorganism, chemicals and environmental remediation agents used for aquaculture

181. Sale of genetically modified products

182. Medical treatment and examination

183. HIV testing services

184. Tissue banking services

185. Reproduction assistance, sperm and embryo cryopreservation

186. Testing of microorganisms causing infectious diseases

187. Vaccination

188. Opioid substitution therapy

189. Plastic surgery

190. Surrogacy service

191. Pharmaceutical business

192. Cosmetics production

193. Sale of chemicals, pesticides, germicides for the use in medical appliances

194. Sale of foods under the administration of the Ministry of Health

195. Sale of medical equipment

196. Medical equipment classification services

197. Medical equipment testing services

198. Appraisal of intellectual property (including appraisal of the copyrights and others relevant, appraisal of industrial properties and plant breeder’s rights)

199. Radiological services

200. Assistance in application of atomic energy

201. Assessment of conformity

202. Testing, calibration and inspection of measuring instruments and measurement standards

203. Manufacture of biker helmets

204. Technology assessment and evaluation services

205. Intellectual property presentation services

206. Film production and distribution

207. Antique appraisal services

208. Development of project planning, construction, project supervision, maintenance, renovation and restoration of relics

209. Karaoke and nightclub business

210. Travel services

211. Sport business and professional sport clubs

212. Business involving art and fashion shows, model contests and beauty pageants

213. Sale of art performance video and audio recording

214. Accommodation services

215. Advertising

216. Trading in national relics, antiques and treasures

217. Export of relics and antiques other than those under the ownerships of the Government, political organizations and political-social organizations; import of cultural products under the administration of the Ministry of Culture, Sports and Tourism

218. Museum services

219. Video game business (other than casino video games for foreigners and online casino video games)

220. Land assessment and survey consulting services

221. Land use planning services

222. Information technology infrastructure and land information software system development services

223. Land database development services

224. Land pricing services

225. Geodesic and cartographic services

226. Meteorological and hydrological forecasting services

227. Groundwater drilling and exploration services

228. Extraction and use of water resources, discharge of wastewater into water sources

229. Basic survey and consulting services for preparation of water resource planning, schemes and reports

230. Mineral exploration

231. Mineral extraction

232. Transport and treatment of hazardous wastes

233. Import of scraps

234. Environmental monitoring services

235. Sale of biological preparations from waste treatment

236. Commercial bank business operations

237. Non-credit institution business operations

238. Business operations of cooperatives, people’s credit funds and microfinance institutions

239. Payment intermediary services

240. Credit information services

241. Foreign exchange activities by non-credit institutions

242. Gold trading

243. Money printing and minting

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New foreign investment approvals in Jan-Apr drop sharply

A view of downtown HCMC. The real estate sector recorded the second largest foreign investment in January-April.

HCMC – Total foreign investments pledged in the year’s first four months fell by a sharp 23.9% to US$8.06 billion, according to the Foreign Investment Agency.

Of the fresh foreign investment approvals in the period, pledges by existing and new projects declined significantly.

In particular, 883 new projects that had been approved in the year to April 20 had total registered capital of US$3.55 billion, a fall of nearly 24% against last year’s same period. Besides, 303 operational projects registered to adjust their investment capital up by US$2.24 billion, a year-on-year drop of 48.5%.

Regarding foreign indirect investment, the four-month period recorded 1,863 cases of foreign investors contributing funds or acquiring local shares with a combined value of US$2.26 billion, up 67% against the same period a year earlier. Of these, there were 1,087 cases of foreign investors increasing their paid-in capital of enterprises (US$1.56 billion) and 776 cases of stake acquisitions (US$703.5 million) which did not change chartered capital of enterprises.

It can be seen that investment capital of foreign investors tends to rise in M&A deals rather than direct investments.

Foreign direct investment (FDI) projects disbursed US$5.1 billion in January-April, rising by 6.3% year-on-year.

Regarding outbound shipments in the period, the FDI sector exported US$53.48 billion worth of products, including crude oil, up 18.9% year-on-year and equivalent to 72.5% of the country’s export turnover. Without crude oil, exports of the sector were US$52.81 billion.

Meanwhile, the FDI sector’s imports were US$42.31 billion, picking up 9.3% and accounting for 60.1% of total imports. This resulted in a trade surplus of US$11.17 billion with crude oil included and US$10.5 billion with crude oil excluded.

Of the 17 sectors foreign investors invested in, the processing-manufacturing sector attracted the highest amount of capital with US$4.52 billion (56.1% of total registered capital). It was followed by real estate with US$807.5 million (10%) and wholesale-retail with US$779 million (9.7%).

South Korea made up the biggest foreign investment amount among 82 countries and territories investing in Vietnam with US$2.32 billion (28.7%). Japan came second when investing some US$1.29 billion (16%) and Singapore third with US$808 million (10%).

Source: The Saigon Times

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Foreign investors register to invest 1.25 billion USD in January

Foreign investors registered to invest nearly 1.25 billion USD in Vietnam in January, which will include funding for new projects, in addition to existing projects and buying stakes in projects, which will equal 75.9 percent, compared to the same period last year.

In January, the disbursement of foreign direct investment (FDI) saw a positive increase of 10.5 percent to 1.05 billion USD year on year, according to statistics from the Ministry of Planning and Investment’s Foreign Investment Agency.

A number of large projects were granted licences during the month, including Kefico Vietnam Company Ltd, which was allowed to add 120 million USD in investment capital; Vina Cell Technology Company Ltd, which added 100 million USD; the Nam Dinh Ramatex Textile and Garment Factory project with total capital of 80 million USD in Nam Dinh province, funded by a Singapore investor; and Jotun Paint Company Ltd in HCM City, invested by a Norwegian investor with funds of 70 million USD.

Out of 125 countries and territories with FDI projects in Vietnam, the Republic of Korea was the most significant investor with 58.1 billion USD, accounting for 18.1 percent of total capital. Japan was in second place with 49.46 billion USD at 15.4 percent, followed by Singapore, Taiwan, Britishvirgin Island and Hong Kong.

In terms of investment in foreign countries, Vietnam granted licences for investments in foreign countries for six projects in January, with a total investment capital of 6.46 million USD.

Three of these projects were in retail and wholesale areas, while the remainders were in the fields of processing and manufacturing, residential services and science and technology.

The projects are being conducted in Canada, Campuchia, New Zealand, Germany, Belize and Myanmar.

- dtinews -

How to setting up business in Vietnam? Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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Foreign investment exceeds US$33 billion in 11 months

HCMC – Vietnam has attracted US$4.85 billion of foreign investment this month, taking the total pledged capital in the year to date to more than US$33 billion, up nearly 83% year-on-year.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the year to November 20, over 2,290 new projects had obtained investment certificates with total registered capital of US$19.8 billion, up 52% year-on-year.

Besides, 1,100 foreign-invested projects got approval to inject an additional US$8 billion, up nearly 58% year-on-year. There were more than 4,500 mergers and acquisitions (M&A) deals involving foreign investors with total capital contributions of about US$5.3 billion, up nearly 58%.

As such, the total amount of foreign investment this year to date has amounted to more than US$33 billion. It is estimated that foreign investment into the country would reach US$35 billion by the end of this year, far exceeding the Ministry of Planning and Investment’s expectation of US$28 billion.

The processing and manufacturing sector took the lead in attracting foreign funds in the 11 months, though its proportion tumbled. With nearly US$15 billion of foreign investment in January-October, this sector made up less than 50% of the country’s total, a sharp fall compared to its proportion of about 70% in the past few years.

Meanwhile, the power generation and distribution sector came second with total foreign investment of nearly US$8.4 billion, accounting for a quarter of the country’s total. Attracting US$2.5 billion, the real estate sector came third, making up nearly 8%.

As of November 20, foreign direct investment (FDI) projects had disbursed US$16 billion, up 11.9% over the same period last year.

In January-November, exports of FDI enterprises, including crude oil, reached nearly US$141 billion, up nearly 23% from the year-ago period and accounting for more than 72% of the country’s total export revenue.

Their imports have also risen by more than 23% year-on-year to nearly US$115 billion, making up 60% of the country’s total. This led to the FDI sector’s trade surplus of more than US$26 billion.

According to the Foreign Investment Agency, there have been 112 countries and territories investing in Vietnam this year to date.

Japan has surpassed South Korea to become the biggest investor with nearly US$9 billion, or 27% of the country’s total. South Korea came second with total registered capital of nearly US$8.2 billion and Singapore took the third position with US$4.7 billion.

Source: The Saigon Times

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Foreign printing and packaging equipment providers eye Vietnamese market

HCMC – Foreign providers of machinery and equipment in the packaging and printing industry are increasingly promoting their products to penetrate the Vietnamese market, as seen at the international exhibition Vietnam Print Pack 2017 that kicked off in HCMC on October 5.

The exhibition is taking place at the Saigon Exhibition and Convention Center in District 7, featuring 480 booths of 300 enterprises from 11 countries and territories.

Hank Kan, business and marketing director of SBL Machinery Co Ltd., a Taiwanese manufacturer and provider of packaging machinery, said the company’s products are shipped to European countries for many years. However, SBL has recently seen great opportunities for selling its products to Vietnam, as the country is attracting heavy foreign investments while its production is posting strong growth.

Hank Kan said the company wants to promote its products to local producers, and finds a major distributor who will represent SBL in the Southeast Asian nation.

He believed at least Vietnam-based Taiwanese companies will order SBL’s products, adding that producers from other countries may do so, as the company’s products are of high quality and competitively priced.

This is the first time Konia Minolta Business Solutions Vietnam has exhibited its products – digital label printers and inkjet printers - at the annual event. Le Minh The, its head of business and marketing division, said the printing products manufactured on the latest technology is very easy to use, helping enterprises save time.

Nguyen Van Dong, chairman of the Vietnam Printing Association, said printing and packaging exhibitions in the Asia have recently attracted many exhibitors and visitors, as Southeast Asian nations have achieved strong growth in the printing industry, especially the packaging segment.

Many enterprises told the Daily that Vietnam holds strong appeal to worldwide producers to build factories here, as the country has competitive advantages in terms of market and manpower. Meanwhile, domestic producers seeking to enhance competitiveness have no way but to improve their production efficiency.

Besides, the demand for consumer goods, packaged foods, bottled beverages and pharmaceuticals is rising, leading to an increase in packaged products.

Industry insiders said packaging is the decisive factor behind customers’ decision to purchase a product. Customers are more demanding, requiring packaging to be not only convenient but also safe and environmentally friendly. Therefore, enterprises in the packaging sector that want to survive should apply advanced technology.

According to foreign experts and companies, the local packaging sector has yet to develop. Thus, many providers of machinery and equipment for producers have realized considerable potential and major advantages in Vietnam. This is why they have joined exhibitions, and some have set up representative offices in order to provide their products in a timely manner.

The organizers of Vietnam Print Pack 2017 – the Vietnam National Trade Fair and Advertising Company (Vinexad) and Yorkers Trade and Marketing Service Co Ltd. - said the local packaging and printing industry has developed quite high, with average expansion at around 15-20% of production value. Hence, the domestic market is quite appealing to international machinery and equipment providers.

Source: The Saigon Times

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HCMC calls for private investment in boat stops along Saigon River

The HCMC government is calling for private waterway transport and tourism services enterprises to invest in stops along the Saigon River to spur waterway tourism in the city.

The municipal Departments of Transport and Planning-Architecture, and districts across the city are jointly drawing a plan to develop a waterway system and examine positions for such stops. Bach Dang Wharf on the Saigon River is considered the central station to serve passenger transport activities and waterway tourism.

In addition, Nha Rong-Khanh Hoi Port, which is near Bach Dang Wharf, has good facilities and convenient traffic systems for passenger transport and tourism development.

Relevant agencies proposed developing the port to cater to domestic and foreign passenger ships.

However, the city has difficulty promoting waterway tourism due to a lack of connectivity between waterways and roads, and underdeveloped ports and wharfs.

According to a waterway tourism development plan in the 2017-2020 period approved in June, the city will focus on waterway tourism promotion.

Accordingly, at least seven waterway tourism routes will be launched in the Saigon, Dong Nai, Nha Be, Soai Rap and Long Tau rivers as well as canals in HCMC, including the Bach Dang-District 7 route, the route from Bach Dang Wharf to Tau Hu in districts 8 and 5, the Bach Dang-District 9 route, and the route from Bach Dang Wharf to Binh Quoi.

The city targets to attract 450,000 tourists using waterway services next year and the number will increase 15% annually. Waterborne tourism is expected to fetch VND540 billion (US$24 million) in revenue this year.

Source: The Saigon Times

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Minister: Law on special economic zones will offer strong boon for investors

HANOI – Investors in Vietnam’s special economic zones would enjoy far greater incentives than those offered by similar zones in many other countries if the draft law on special administrative and economic zones is approved, said Minister of Planning and Investment Nguyen Chi Dung.

Speaking at the 14th meeting of the National Assembly Standing Committee in Hanoi on September 11, Dung said that as of 2016, there were about 4,500 special economic zones in 140 countries around the world. Therefore, Vietnam’s special economic zones must provide a much stronger boon to grab the attention of foreign investors in Vietnam.

Dung said factors that make special economic zones more appealing to investors include simple administrative procedures, fee and tax incentives, and favorable business environment and strategic locations.

According to the draft law, domestic special economic zones will receive support from the Government to develop basic infrastructure and high-quality human resources, while State management will be streamlined.

The draft law abolishes a number of conditional business sectors and simplifies business registration procedures.

Enterprises investing in priority sectors like business support, research and development, education and healthcare will be able to hold land use rights for up to 99 years. Apartments in housing or resort projects can be transferred to, donated to, acquired by or inherited by foreign organizations and individuals.

The draft law also proposes raising duty-free limits at duty-free shops in such zones, offering visa exemptions for foreigners staying in Vietnam within 60 days, issuing e-visas for foreigners and offering lower special consumption tax to casinos.

Minister Dung said Vietnam’s economic growth has slowed down in recent years, with the weak competitiveness and unattractive business environment. Therefore, the Government will have to take drastic measures and offer greater incentives to attract more investment into special economic zones.

Source: The Saigon Times

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Vietnam expects foreign investment to hit record $16 billion this year

Cheap labor continues to be a magnet for foreign investors.

Actual foreign direct investment flowing into Vietnam is forecast to rise to a record high this year as the country continues its efforts to improve the economic climate, an official has said.

Dang Huy Dong, deputy minister of Planning and Investment, was quoted as saying in a Bloomberg report that disbursed FDI will exceed $16 billion this year, and pledged investment will reach $28 billion.

“FDI growth is very impressive so far this year and we expect it to continue,” he said. The country received $15.8 billion of actual investment last year, which was up 9 percent from 2015, according to the ministry.

Dong said the government would continue to improve the business environment as it aims to draw more investment into areas including exports, energy and high-technology.

The fate of the Trans-Pacific Partnership, the biggest trade deal Vietnam has ever engaged in, is hanging in the balance following the U.S. withdrawal.

But Vietnam is shrugging off the uncertainty as its low wages and young workforce continue to play an effective investment magnet, Bloomberg said.

FDI inflow into Vietnam rose 6.5 percent in the first half of this year to $7.72 billion, according to figures from the ministry.

Pledges for new projects and additional investment were up nearly 55 percent on-year at $19.22 billion, with nearly half heading to the manufacturing and processing industries.

Vietnam’s Prime Minister Nguyen Xuan Phuc has established a board of experts, including economists from France, Japan, Singapore and the U.S., who will advise him on economic matters.

He also expressed support on Wednesday for a draft law that aims to double foreigners’ home ownership terms in Vietnam to 99 years in special economic zones.

The government has set an economic growth target of 6.7 percent for this year, one considered ambitious by many experts, especially after a relatively sluggish first six months. The IMF and HSBC have revised their growth forecasts for Vietnam down to 6.3 and 6 percent, respectively.

The central bank cut key policy interest rates for the first time in three years last month to spur growth.

Source: Vnexpress

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