Da Nang - Boras (Sweden) cooperates in the field of science education

  On the afternoon of January 15th, 2021, the People's Committee of Da Nang City in collaboration with the city government of Boras (Sweden) organized an online seminar on the UN's sustainable development goals to 2030, within the framework of the project "Scientific education for sustainable development in Da Nang” cooperation between Da Nang and Boras.

Based on the UN's sustainable development goals up to 2030, in which education, environment, science, and technology development are the goals that Da Nang cares for and develops. The city seeks to ensure quality, open and equitable education and increase lifelong learning opportunities for all the citizens, ensure availability and sustainable management of water resources of the city, build solid infrastructure, promote open and sustainable industrialization, and encourage innovation. The city takes urgent measures to combat climate change and its impacts, conserve and sustainably use the oceans, seas, and marine resources for sustainable development, protection, regeneration, and promotion encourage the sustainable use of terrestrial ecosystems, manage forest resources sustainably, combat desertification, prevent soil erosion and loss of biodiversity.

For the Boras city -Sweden, with the goal of sustainable development, Boras city focuses on implementing a number of contents such as improving the institutional system, policies, strengthen information and communication, promote the role and participation of the parties, arrange, mobilize and strengthen financial resources, and strengthen international cooperation.

Da Nang hopes that science education project for sustainable development in Da Nang, which is cooperated between Da Nang and Boras, will have specific activities, contributing to improving the capacity of science education, promoting innovation associated with sustainable development goals in the city.

Da Nang and Boras have cooperated for many years, with many policies to attract and support Swedish investors.  Many Swedish investors and enterprises have chosen Da Nang as the investment destination in Vietnam to set up company, establish factory, apply for investment registration certificate. In the coming time, Da Nang-Boras hopes that more investors from Sweden will invest in the city in wastewater and solid waste treatment projects to further strengthen cooperation in investment, education, and science between the two cities.

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Transport market in Vietnam - Investment opportunities for foreign investors

  Currently, Vietnam is considered to have a stable economy and politics, and is gradually becoming an investment destination for many investors in the world. In addition, with the goal of becoming a part of the global supply chain, the transport market in Vietnam is in strong demand to meet the demand for freight transportation of businesses.

As a country with bordering the sea, Vietnam is considered a trading place of Southeast Asia, Asian countries and other countries in the world. The modes of transport include: road, rail, water, air, and pipeline. According to the Strategy of the Government, until 2030, transport enterprises in Vietnam will be developed with the orientation of applying an advanced management model, high business efficiency, competitiveness, and ownership of the domestic transport market, occupying the role of plays an important role in the transport of goods import and export, step by step reaching out to invest and business effectively in the international transport market, the details as follow:

1.To complete the restructuring of state-owned transport enterprises in the direction of accelerating the equitization, reducing the number and proportion of state ownership in transport enterprises, except for the case in transportation business units to ensure national security and social security.

2.To separate the business of railway infrastructure from the transport business into independent enterprises, urgently equitizing the transport enterprises and providing railway transport support services.

3.To establish a number of large-scale multimodal transport enterprises, capable of carrying out complete transport chains by road - rail - sea or road - waterway - sea, road - airline; strengthen connection of transport services between modes through the connection of service distribution, especially giving priority to the development of the intermodal ticket sale model between modes of passenger transport.

Regarding the implementation of investment in the transport sector for foreign investors, according to the provisions of the WTO and EVFTA services, foreign shipping companies can establish 100% foreign- capital enterprises. Foreign-invested enterprises are allowed to carry out activities including: (i) Marketing and sales maritime transport services through direct contact with customers, from quotation to invoicing; (ii) Acting on behalf of the cargo owners; (iii) Provision of required business information; (iv) Preparation of documentation concerning transport documents including customs documents, or other documents related to the origin and character of the goods transported; and (v) Provision of maritime transport services including cabotage services by Vietnamese flagged vessels for the supply of integrated transport services; (vi) Acting on behalf of the company, organizing the call of the ship or taking over cargoes when required; (vii) Negotiate and sign contracts for road, rail, inland waterways transportation related to cargoes transported by the company.

With the strategy of developing and opening up to attract foreign investors, Vietnam hopes to have more international transport investors to invest, set up company, apply for investment registration certificate for conducting business, to not only develop the transport market in Vietnam, but also bring economic benefits to international investors.

 

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The advantages of attracting FDI to Vietnam in 2021

  In 2020, due to the impact of the covid-19 epidemic, the global supply chain will be seriously affected. Besides, the effects of the US-China trade war, the shift of production out of China took place quickly. In which, there are four areas that corporations tend to shift to Vietnam to set up company and make investment are information technology and high technology, electronic equipment, e-commerce and logistics, consumer goods, and retail.

Some big global corporations have started recruiting, searching for supply chains, and Vietnam is one of the destinations in the transition to other countries in the region such as Indonesia, Thailand, or Malaysia.

Vietnam, with the advantage of being close to China, is favorable for the movement of investment and machinery. Besides, having policies to attract FDI from Vietnam will make it easier for international investors to transfer investment.

At the same time, Vietnam also participates in many Free Trade Agreements such as CPTPP, EVFTA, etc. that facilitate trade relations with many countries and regions in the world, which will make cooperation more favorable. In addition, the stability in the value of Vietnam currency is also a strong point in attracting international investment.

As the report of a famous industrial real estate brokerage firm, data comparing occupancy rates and rental rates of industrial zones in Southeast Asian countries in the first quarter shows that Vietnam has an average rental rate of 45-50% lower than in Thailand, Malaysia, and Indonesia. According to a report in 2019, Vietnam's labor costs are also lower than that of Thailand, Malaysia and Indonesia, in addition, the labor force in Vietnam is increasingly abundant and the quality of labor is increasing.

Regarding electricity prices, according to EVN, comparing electricity prices in 2019 of Vietnam compared to other countries in the region, according to statistics, shows that electricity prices in Vietnam reach 80% compared to electricity prices of Indonesia; 42.1% of the electricity price of the Philippines and 66.7% of the electricity price of Cambodia.

In addition, with the application of supportive policies such as reduction of corporate income tax, import and export tax, land rental assistance, labor supply, and administrative procedures, Vietnam deserves to become be best investment destination in the world, for international companies to make investment, establish company and obtain investment registration certificate.

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Da Nang Ranks First in Information Technology Application Index

  At the end of April 2021, the Ministry of Information and Communications announced the ranking of the readiness index for the application and development of Vietnam's information technology (Vietnam ICT Index) 2020, in which Da Nang was ranked first in 12 consecutive years of this ranking.

After 16 years of evaluation and ranking, Da Nang city has been rated the highest in the provinces and cities for 12 consecutive years (from 2009 up to now), demonstrating the effective application and development of information technology. The results above also create a hope for the next phase of the city - the stage of upgrading to a comprehensive digital transformation under the guidelines of the City and Government.

In addition, Da Nang is also ranked 5th nationally on the Information Technology Industry Index, after Ho Chi Minh City, Hanoi, Bac Ninh and Thai Nguyen.

The results of evaluation and ranking of Vietnam ICT Index are considered the most prestigious, quality and complete assessment in the country, serving as a basis for the Ministry of Information and Communications and local authorities to make appropriate decisions. select investment priority areas, promote the development of the information technology industry and the information technology industry in the country.

The Vietnam ICT Index is divided into groups of indexes on: technical infrastructure, human infrastructure, information technology application, online public services and assessment of the local information technology industry; with more than 100 indicators and conducted independent investigation, statistics and evaluation.

Da Nang is a city that prioritizes the development of information technology and high technology, always applying information technology in operation and management. Information technology is also a priority industry, developed in Da Nang next to the industries supporting tourism. There have been many domestic and foreign investors in the field of information technology making investments in Da Nang and achieving high achievements. In addition, the city is also actively building an information technology infrastructure system to help investors easily make investments in the city, and establish company in Da Nang.

With 12 consecutive years of leading the country in the Vietnam ICT index, Da Nang is confident to bring information technology investors the best investment environment, efficiency and long term benefits.

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Why the Investors to Choose a Reputable Enterprise for Cooperation?

  Profitable investment is the legitimate aim of every investor. However, to be able to make an overall assessment of an enterprise that investors can trust is really a difficult choice. Especially for foreign investors who do not have much experience in the Vietnam market whom wish to enter Vietnam market for making investment through M&A.  It is very important for the foreign investors to undertake the research for the reputation of the company and each shareholders being corporate or individual, obtain public information of the company, and key personnel under take brief due diligence to access potential risks for cooperation.

According to the data reported as of March 20, 2021 by the Foreign Investment Department (Ministry of Planning and Investment), the total foreign investment capital registered for new, adjusted and contributed capital, purchased shares of investors foreign investment amounted to 10.13 billion USD, an increase of 18.5% over the same period in 2020. This data shows that the demand of foreign investors to invest in Vietnam is still gradually increasing. So, how can foreign investors choose businesses to invest with peace of mind?

In addition to choosing an enterprise with an appropriate industry and intended investment capital, the fact that that enterprise has reputable name, capability, and experience in the market in the business field is a criterion that investors should consider and can be trusted. Moreover, investors should take the time to learn information from official sources by looking up the company's name, grasping basic information such as: owner's name, representative, capital status, influential individual being shareholders,... and compare such to the company's website to know if the company provides full information, images, updates on the company's operations regularly, accurately or are not.

Many cases of "virtual" businesses taking advantage of investment needs and the lack of information about the Vietnam market have taken advantage of and defrauded foreign investors. On the other hand, the enterprise will be the one to make decisions that directly affect the investment results of the investor; therefore, the foreign investors should understand, consider and choose a reputable and safe enterprise entirely to invest capital.

In addition, what is the name and influence of that enterprise in the investment field? What is experience and enterprise performance in recent years? It is also the actual evidence that proves the capability of that enterprise. An important note for investors is that in addition to information about enterprise achievements, negative information about the company such as violations in business practice, errors in service provision, etc. causing disputes, compensation with customers is less public information and difficult to find.

In many cases, investors do not have a thorough understanding of their partners, but only decide based on virtual commitments, the display of capability beyond the capabilities of the business. From there, putting your investment capital on a risky way lead to potential unnecessary disputes with the target enterprise.

Furthermore, understanding the Vietnamese legal regulations on rights and obligations for foreign investors, although not related to the selection of enterprises to invest in, is also necessary information for investors to have projection of the problems that may arise during the process of participating in investing in the business.

After all, what investors are looking for are "clean" enterprises that have the capability to grow quickly but at the same time must be able to maintain stability and develop sustainably. However, every business environment has certain potential risks and it is the job of foreign investors to always be alert and learn exactly the information of enterprises to minimize risks potential.

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Why is it important to undertake background check before hiring?

  Every business in order to be able to operate stably and develop must first have an effective resource. In addition to material, technological, and machine resources, human resources are considered as an important resource that determines the success of an enterprise.  It is important to conduct background check before hiring to confirm the information given by the employee reflects the truth.

Human resources are people who are directly involved in working for the business in different positions with the aim of creating values ​​and profits for the business, contributing to the development of the business. Thus, in order for businesses to be able to recruit capable and qualified individuals suitable for the position that the business is looking for, the business needs to have research and selection. Below is the necessary information that businesses can refer to be able to choose a suitable candidate.

Professional competence and skills are concerns that every business wants in its candidate. With high professional ability and good problem-solving skills, it will be a factor to help businesses develop well, satisfy customers, increase competitiveness with competitors... contribute to creating profits and improving location of the business. To find out this information, businesses can look in the information about the education and experience that the candidate provides or contact the previous company to confirm the accuracy of this information.

Besides, professionalism is also a necessary requirement that businesses should look for in candidates. It is shown in punctuality, polite manners, proper manners, responsibility for work, seriousness and respect for work, respect for colleagues and superiors, responsibility for work results, admit faults and get solution.

In addition, businesses should learn the personality of the candidate to know if the candidate is a good fit for their corporate culture. Because corporate culture is an "implicit" rule common to everyone in the business. Candidates who do not fit the corporate culture find it difficult to get along with everyone in the process of working together. Businesses can find this information in a candidate's interests or activities section, or through candidate sources from a previous workplace.

Honesty, integrity, ethics are essential qualities of a good employee. That is the basis for businesses to trust and work long-term with candidates. Therefore, when choosing employees to work, businesses should consider this factor because candidates with these qualities will bring many benefits and be the basis long-term commitment. However, it is difficult for businesses to find out if a candidate is honest and integrity through just one interview. For important positions, businesses should carefully learn this information from the previous company or through the personal information channels of the candidate.

Moreover, there is a method that businesses can apply when selecting candidates that is taking a test. Through the test results, businesses can know about a lot of general information such as: attitude, skills of handling situations, reasoning and calculation ability of candidates when facing a problem and also in terms of cognitive ability, achievements, work experience, interests... From there, enterprises also assess the candidate's ability to integrate and adapt.

In addition, the candidate's resume, background check, personal reference are also a reliable basis for businesses to know about their working history, reputation of employee in previous assignment, work, previous criminal records or not, etc. There is evaluation and consideration when selecting suitable candidates.

These are the reasons why businesses need to find out information about candidates before hiring. Knowing what skills and characteristics to look for in current employees as well as when recruiting new employees ensures the quality of your human resources and leads to an efficient business.  Hence, background screening has been increasingly important before hiring as part of risk management and risk prevention in Vietnam.

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

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

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

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

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

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

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

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

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

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