Startup in Ho Chi Minh City Will Be as Convenient as in Singapore

  A series of specific commitments has been confirmed by HCMC’s Party Secretary Nguyen Thien Nhan to help startup environment in HCMC becoming as favorable as in Singapore.

The city is committed to preparing an industrial park reserved for newly startup and innovative businesses. Secondly, the procedure for setting up company in Ho Chi Minh City will be as good as in Singapore. Third, in addition to private investment, the city will also, on a case-by-case basis, pilot public-private partnerships in support of innovative entrepreneurship.

In addition to the above 3 commitments, according to Mr Nguyen Thien Nhan, HCMC will have a general information page to reflect the creative start-up activities in the area. At the same time, he decided to meet face-to-face with the startup community twice a year to listen to their mind and remove difficulties in time.

In general, in the past year, HCMC has had very specific and significant results in comparison with other provinces in terms of start-up activities. According to director of the Department of Science and Technology of HCMC, this agency has set up 5 spaces to support innovative start-ups and links with 24 business incubators with a total floor area of over 22,000 square meters. Of which, 50% capital is from socialization.

In addition, The SpeedUp 2017 program has provided financial support tools from the budget for innovative startup projects through enterprise incubators. In the past 8 months, this program has received and processed 112 innovative startup project applications. The number of selected projects was 14/112 (12.5%), which is quite high compared to the current selection rate of many investment funds (VIISA reaches 5%, VSVA reaches 8%).

This year, the HCMC Department of Science and Technology has also set up 4 Steering Committee for Innovative Ecosystems for 4 key areas of the city, including mechanics, food processing, plastic – rubber - chemistry and information technology.

With a network of 145 consultants and innovative start-up advisors from many different disciplines, up to now, 938 start-up projects have been connected to help develop business ideas. There are 3,200 individuals and start-up groups connected to investors, experts and consultancy organizations. Moreover, over 300 startup products are promoted to the community.

However, a general assessment from the Department of Science and Technology of the City, most startups in Vietnam are newly invested at the seed stage with small scale and the possibility of breakthrough growth is not high. This is a matter of concern.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/startup-in-ho-chi-minh-city-will-be-as-convenient-as-in-singapore.html

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Toyoda Gosei Invests in Auto Parts Factory in Tien Hai Industrial Park

  Toyoda Gosei Group, the world's leading manufacturer of auto parts, supplying for Toyota (Japan) has decided to choose Tien Hai Industrial Park, Viglacera as the location to set up factory in Vietnam.

Viglacera Real Estate Trading Company and Toyoda Gosei Group of Japan have just signed a land lease contract with an area of 11.3 hectares in Tien Hai Industrial Park, Thai Binh province, which is invested by Viglacera Corporation.

Toyoda Gosei is the world's leading auto parts manufacturer, supplying for Toyota, with a network of about 100 factories and offices in 18 countries and regions.

The new plant is expected to be built in early 2018 and put into production in 2019 with a total investment of 24.6 million USD, specializing in the production of airbag components and airbags for safe protection for drivers and passengers in cars, leather and polyurethane coated car steering wheels.

Toyoda Gosei's products will be exported to Japan, USA, Europe and some other regions.

Toyoda Gosei has also invested in Hai Phong, with 3 large-scale workshops, and also one of the largest investment companies in Nomura Industrial Park in Hai Phong.

Tien Hai Viglacera Industrial Park has the advantage of geographical position when locating near the coastal highway connecting the 6 northern coastal provinces (Quang Ninh - Hai Phong - Thai Binh - Nam Dinh - Ninh Binh - Thanh Hoa), which has just started construction in May 2017. In which, the construction of the expressway locating in Thai Binh province will be completed by the end of 2018, shortening the distance and travel time from the industrial zone to Hai Phong port (40km) – 60 minutes).

In addition, enterprises in Tien Hai Industrial Park are also enjoying attractive incentives for enterprises in the economic zone such as 10% corporate income tax rate for 15 years, tax exemption for the first 4 years and reduction of 50% for the next 9 years; land rental exemptions from 11 to 19 years; import tax incentives; personal income tax incentives...

Therefore, only after less than one month since the decision to establish Thai Binh Economic Zone was issued, Tien Hai Viglacera Industrial Park has received the attention for information and investment decision from many investors coming from the countries like Japan, Korea, Hongkong, Taiwan...

In order to meet the increasing demand for land leasing to build factory in Tien Hai Industrial Park, Viglacera is actively promoting land clearance to ensure a large area of clean land, complete construction of infrastructure to create the most favorable conditions for businesses operating here.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/toyoda-gosei-invests-in-auto-parts-factory-in-tien-hai-industrial-park.html

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Korea Leads FDI in Vietnam

  The flow of FDI capital into Vietnam has continued to grow strongly over the years, demonstrating the confidence of foreign investors when deciding to set up business in Vietnam.

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the total amount of FDI capital such as new registered, capital increase, capital contribution and share purchase in the first 7 months of 2017 is 21.93 billion USD, increases by 52% over the same period in 2016.

Of these, the new registered capital was 12.92 billion USD, increases by 48.7% over the same period; the added capital was 5.87 billion USD, increases by 38.5% over the same period. The amount of capital that investors spend to contribute capital and buy shares in enterprises in Vietnam is 3.12 billion USD, increases by 109.7% over the same period in 2016.

According to the trend, more and more foreign investors have recently invested in Vietnam through capital contribution and share purchase. An increase of over 109% indicates that. Furthermore, data from the Foreign Investment Agency showed that by July 20^th 2017, the FDI projects have disbursed 9.05 billion USD, increase by 5.8% over the same period in 2016. The rate of increasing in FDI capital disbursement is gradually improving compared to the first months of the year.

In the first 7 months of 2017, foreign investors have invested in 18 industries and sectors, of which the manufacturing and processing sectors have attracted the attention of foreign investors, with total capital of 10.83 billion USD, accounting for 49.4% of the total registered capital. The electronic production and distribution sectors ranked 2^nd with total investment of 5.25 billion USD, accounting for 23.98% of total investment capital. Standing at the 3^rd position is mining sector with total registered capital of 1.28 billion USD, accounting for 5.86% of the total registered capital.

Meanwhile, in terms of partner, Korea ranked 1^st with a total investment of 5.62 billion USD, accounting for 25.63% of total investment capital. Japan ranked 2^nd with total registered capital of 5.46 billion USD, accounting for 24.92% of total investment capital in Vietnam.

In terms of localities, Thanh Hoa is the most attractive province with the total registered capital of 3.06 billion USD, accounting for 13.9% of total investment capital. Bac Ninh ranked 2^nd with total registered capital of 2.95 billion USD, accounting for 13.48% of total investment capital. Nam Dinh ranked 3^rd with a total registered capital of 2.2 billion USD, accounting for 10% of total investment capital.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/industry/korea-leads-fdi-in-vietnam.html

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Indonesian Producer Wants to Invest in Vietnam

  Vietnam has become a destination for Indonesian investors to set up business in Vietnam thanks to the ever-improving investment environment and the establishment of the ASEAN Economic Community (AEC).

At the Conference named "Vietnam – Indonesia: Strengthening trade cooperation in palm oil and paper industries" that was recently held in Hanoi, the Indonesian Ambassador in Vietnam said that many Indonesian businesses are exploring business and investment opportunities in Ha Noi, Ho Chi Minh City, Da Nang and many other places in Vietnam.

Accordingly, more Indonesian investors will come to Vietnam in the coming time because Vietnam is a promising place for Indonesian investors to open their production bases thanks to AEC tariff reductions.

According to the Indonesian embassy, the Indonesian 12 largest palm oil exporters and 14 largest paper exporters are planning to expand their export markets to Vietnam and expecting to enter into joint ventures with local businesses to directly produce products in Vietnam.

In addition to calling for investment and cooperation in the palm oil and paper sectors, Vietnam has recently welcomed many Indonesian investors coming to Vietnam seeking investment opportunities and doing business successfully in the areas of animal feed, building materials, real estate...

Meanwhile, Indonesia's capital flowing into Vietnam through mergers and acquisitions has been rising steadily, such as PT Semen Gresik - Indonesia's largest cement company, has spent 230 million USD buying 70% of the shares in Thang Long Cement Company from Geleximco.

Indonesia's second largest M&A deal in Vietnam is Salim Group spent 37 million USD to purchase 49% shares in Hiep Thanh Group - a trading, processing, aquaculture and export group of two agriculture strategic products that are rice and seafood.

Source: https://www.antconsult.vn/news/indonesian-producer-wants-to-invest-in-vietnam.html

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New Taste of Singaporean Investors

  Recent projects of Singaporean investors have shown new features in the investment taste of Singapore enterprises when they decide to set up business in Vietnam.

In July 2017, United Overseas Bank (UOB - Singapore) was approved by the State Bank of Vietnam (SBV) in principle to set up a 100% foreign owned bank in Vietnam. The list of personnel proposed to be appointed as members of the Board of Members, the Board of Supervisors, the General Director of UOB has also been approved. After much waiting, UOB finally has a "passport" to operate in Vietnam as a bank with 100% foreign capital in Vietnam. What is left is just completing the dossiers and procedures for the SBV to make the final decision.

UOB is the first bank in Singapore setting up a subsidiary in Vietnam. This event seems to mark the "new taste" of Singaporean investors. Previously, Singapore's investment capital is mainly focused on such projects as processing, manufacturing and real estate. Now, it seems that the cash flow is changing direction.

Not just banking project, latest information indicates that Singaporean investors have also begun to pay attention to the energy sector in Vietnam. Last year, UOB under UOB Venture Management Pte Ltd (UOB VM), along with ORIX Corporation (Japan) have invested 25 million USD in Bitexco Power JSC under Bitexco Group. The involvement of well-known global organizations like UOB and ORIX will make a significant contribution to Vietnam's energy sector.

In addition, Sembcorp is also a Singaporean investor willing to invest billions of dollars for a power plant in Vietnam.

According to the information, at the end of July 2017, Sembcorp's representative went to Quang Ngai to officially report to the leaders of this province that Sembcorp will have a Feasibility Study Report at the end of this year about the gas thermal power plant in Dung Quat Economic Zone.

Last year, The Blue Circle – Singapore’s wind power developer has received an investment certificate for a 40 MW project in Ninh Thuan province, with investment capital in the 1^st phase of 60 million USD.

In fact, Singapore has always been a leading investor in Vietnam. According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the accumulated capital so far invested by Singaporean enterprises is 41.6 billion USD, ranking 3^rd in countries and territories investing in Vietnam. Many of Singapore's projects have contributed significantly to Vietnam's socio-economic development.

One of the noteworthy examples is Sembcorp joint venture with Becamex to develop a series of VSIP industrial parks and urban areas spanning across Vietnam, from Binh Duong, Bac Ninh, Hai Duong to Quang Ngai, Nghe An, Hai Phong... At the beginning of this year, VSIP decided to invest in a third industrial zone in Binh Duong, with a total registered capital of 284.75 million USD.

Not only VSIP, many other Singaporean investors have also succeeded in Vietnam and are continuing to boost investment. Last year, Mapletree Investment Pte Ltd decided to acquire Kumho Asiana Plaza Saigon in District 1, Ho Chi Minh City from Kumho Industrial Company Limited and Asiana Airlines Incorporated. After this deal, Mapletree's assets in Vietnam amounted to more than 1 billion SGD.

Prior to Mapletree, Keppel Land has also acquired 40% of the Empire City project in District 2, Ho Chi Minh City, equivalent to 93.9 million USD. Not to mention, many other Singaporean enterprises have also invested much in Vietnam, such as Banyan Tree with Laguna Lang Co project, total capital of 875 million USD; or KinderWorld with a series of international schools in many provinces, cities and is continuing new investment plans...

Not stopping with the current results, Singaporean enterprises are still quietly looking for new investment opportunities in Vietnam. The fact that UOB opened a subsidiary in Vietnam is to serve the purpose of investing more and more in Vietnam of Singaporean enterprises.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/industry/new-taste-of-singaporean-investors.html

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Foreign Investors Implement Food Projects in Vietnam

  Foreign investors who are licensed to invest in the food sector in Ho Chi Minh City are in the process of implementing the project, while other projects are interested by foreign partners. It shows the excitement of investors when deciding to set up business in Vietnam.

In particular, project of Nam Duong International Food Co., Ltd with registered capital of 25.6 million USD has completed the construction of the factory, installation of equipment and machinery. The project is licensed by the end of 2015, which is a joint venture between the Saigon Co-operative Alliance (Saigon Co.op) and Wilmar International Limited (Singapore), with the capital contribution of 49% and 51% respectively. The project aims to produce sauces and spices for domestic and export markets.

Wilmar’s investment in Vietnam and cooperation with Saigon Co.op is to utilize strengths from both sides to improve the competitiveness and coverage of Nam Duong brand as well as contribute significantly to the development of the sauce and spices industry.

Meanwhile, the project of CJ Cau Tre Foods Joint Stock Company, with investment capital of 53.3 million USD, which was licensed by the end of May 2017, is being expedited by investors to implement the procedures under regulations to prepare to start construction.

This is a food processing complex on an area of 7.1 ha, including food processing plant, research and development center, modern food safety center... The 1^st phase of the factory has designed capacity of 12,000 tons of products per year, which will be consumed domestically and exported to markets such as Korea, Japan, USA, EU...

The project is invested by CJ Cheiljedang Corporation (Korea) through the ownership of 71.6% stake in Cau Tre Export Processing Joint Stock Company.

We can see that, in recent times, many foreign investors have approached the market by acquiring or holding controlling shares in local companies and it is forecasted that this trend will continue.

In terms of attracting investment in the coming time, Ho Chi Minh City has many incentive policies for projects in 4 key industries, which are food processing, chemicals – rubber, mechanical and electronic - information technology. The field of food processing has received a lot of attention from many foreign investors and the fact that many large-scale investment projects have been licensed.

Source: https://www.antconsult.vn/news/industry/foreign-investors-implement-food-projects-in-vietnam.html

 

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JLL: Vietnam Tourism and Hotel Industry Is Growing

  Vietnam tourism industry has achieved steady growth in recent years. Furthermore, Vietnam has become an attractive tourist destination for foreign visitors.

According to a report of JLL (Jones Lang LaSalle), Vietnam resort real estate has become one of the most mentioned markets in Asia Pacific and in the future, the potential for development is still very wide open.

In 2015, Vietnam has seen a strong increase in the number of foreign tourists when it exceeds the goal of 10 million international visitors by 2020. According to Vietnam National Administration of Tourism, in 2017 Vietnam is expected to increase by 15% the number of international tourist arrivals to 11.5 million and tourism industry ‘s revenue will reach 20 billion USD.

In order to facilitate growth, the Government of Vietnam has recently exempted visas for travelers from many countries. As a result, the number of international tourists has increased steadily. The target for international visitors travelling to Vietnam in 2020 has been revised up to 20 million tourists with 30 billion USD in revenue and generated 3.5 million jobs in the tourism sector, increased sharply compared with the initial target of 10 million visitors.

According to JLL, the impressive growth in the number of tourists travelling to Vietnam will promote important strategies and increase investment in tourism product development to take advantage of existing strengths in the domestic tourism industry, as well as the development of new areas. As infrastructure investment continues to grow and private funds participating in the transportation and hotel sectors, Vietnam may open new destinations beyond its usual destinations such as Ho Chi Minh City, Hanoi and Da Nang/Hoi An.

Along with the "boom" in the number of tourists travelling to Vietnam, tourism products are also increasingly diversified, the resort real estate products associated with golf course are opened, the Government also loosen the regulates on the activities of prize-winning entertainment complex. In addition, the type of ecotourism, culinary tourism, spiritual tourism is also expanded more diverse.

According to JLL, the strong growth of the tourism industry and the number of visitors are shown most clearly in the resort real estate supply, especially condotel. Accordingly, in the period 2017 – 2018, Da Nang will welcome about 2,500 hotel rooms come into operation, the number in Nha Trang is 2,200 and Phu Quoc is about 2,000.

Assessing the potential of the resort tourism industry, according to JLL, Vietnam's increasing tourist arrivals and a growing economy make the hotel and resort market attractive to many investors in the region. To sum up, Vietnam resort real estate has become one of the most mentioned markets in Asia Pacific. In the near future, international hotel operators are increasingly interested in resorts, while real estate developers continue to seek investment opportunities.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/jll-vietnam-tourism-and-hotel-industry-is-growing.html

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