Da Nang and Korea cooperate in investment

  On December 3, 2020, the representative of Da Nang city held an online investment promotion conference called "Investing in Da Nang" for Korean investors and businesses. The conference with the participation of more than 100 Korean investors and businesses has helped investors and businesses have a new view in their investment implementation in Da Nang market.

The conference has promoted and introduced the business environment and cooperation opportunities investment in Da Nang in the fields of high technology, information technology, services, and smart city support. Recently, in the context of investment capital inflows from Korea tends to shift to Southeast Asia due to the influence of the Covid-19 epidemic and the US-China trade war, Vietnam is considered to be a country which meet enough political, economic, labor and technological conditions to make the shifting investment in an easy way.

At the conference, representatives of Da Nang city affirmed that foreign investment is one of the important resources for the socio-economic development of the city. For many years, the city has always set the goal of attracting investment as the top target, in addition, the city has actively improved the investment environment, issued many preferential policies and supported foreign investors who invest in the city.

In 2020, despite the impact of the Covid-19 pandemic, there are still many investment projects of Korean investors making investments in Da Nang. Until November 2020, Korea is the country which has the most number of projects in Da Nang with 232 projects, and ranked 4th in terms of capital, with a total registered investment capital of more than 376 million USD, episode medium in the fields of services, real estate, industrial production and information technology.

In the current period, with the selection of a politically stable investment location, high quality labor, reasonable investment costs and good disease control ability, Vietnam is the top destination for Korean investors to set up company, set up factory, and make investment in Vietnam. Currently, many large enterprises in Korea have signed Memorandum of understanding with Da Nang city as the first step of cooperation and investment development in Da Nang in the coming years.

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Vision to develop logistics services in Da Nang

  Da Nang, with its favorable geographical location, lies on the arterial North-South traffic axis in terms of road, rail, sea and air, is an important traffic gateway of the Central - Central Highlands and is the end point on the East-West Economic Corridor running through Vietnam - Laos - Myanmar - Thailand, converging types of transport from air, seaport, railway, expressway, especially with deep water ports. Therefore, Da Nang has a great potential to develop into a maritime transport center, an important logistics hub to countries in the region.

In the economic development orientation and in the Politburo's Resolution No. 43-NQ/TW dated January 24, 2019 on Da Nang construction and development to 2030, a vision to 2045 defines: Danang will focus on exploiting advantages to soon become a marine economic center, forming logistics service supply chains for the Central and Central Highlands.

To comply with the Resolution, currently, in parallel with the expansion of the port, Da Nang is also actively calling for investment in logistics centers. Of which, 20 hectares in Hoa Vang district, 2 hectares in the north of Da Nang airport, 9.1 hectares in the High-Tech Park. At the same time, promote the early operation of highways Da Nang - Quang Ngai, La Son - Tuy Loan... to awaken potentials, promote trade links, connect industrial zones, economic zones in the region, thereby becoming the driving force to promote the city's logistics services industry.

In addition, Da Nang will build a new Lien Chieu port as a transport port, Tien Sa port will be a tourist port in order to promote the central role of the international seaport city and urban seaport. According to the Department of Planning and Investment of the city, the Lien Chieu port project is currently completing the environmental impact assessment report, submitting for appraisal and approval of the subdivision planning project 1/2,000. City leaders suggested early appraisal of capital sources and capital balancing capabilities, and proposed to allocate central budget capital to support projects. In the next phases, Lien Chieu port will attract investors in logistics items. This is an important premise for Da Nang to promote the role of a key maritime route in the Central region and a logistics center in the region.

With the above orientation, it is expected that in the coming time, the market of transport services and logistics in the city will develop more vibrantly, raising the quality of services not only in the city but in the region.  It is hoped that more companies will invest, set up company and apply for investment certificate in Da Nang in the area of logistics and logistics support.

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Why do we have to undertake background check before recruitment?

  Recruitment is the process of screening and recruiting qualified people to meet a job in an organization in general and in particular business. Recruitment plays a very important role in business development. Effective recruitment will provide businesses with a team of skilled, active, creative employees and provide human resources in accordance with the business performance of the business. Only when doing well the recruitment stage can we do well in the next stages. Therefore, businesses need to recruit the right people right the first time as well as arrange them in an important position.

Most of the information that enterprise has is provided by the employee and there is no verification of the information. And if the enterprise only relies on the information provided by the employee, it is likely that the employee is dishonest, or causes mistakes and avoid responsibility. To recruit “right employee, right job”, enterprise needs to check the applicant’s background.

Checking employee's background is to create trust between enterprise and employee. The background check includes: Verify Identification; Verify at home; Verify qualifications and certificates; Verify employment history at old jobs; Verify criminal records in Vietnam.

Verification of the background helps to know personal information, origin, hometown, criminal status of the employee. Thereby, background check will minimize commercial risks; preventing fraud and internal theft better; increase security of data and documents in the enterprise. In particular, for important positions in the enterprise, the confidentiality of enterprise document information is extremely necessary.

Verifying employment history at past jobs is to understand working process and the reason for job termination; obtain an objective view of the necessary competencies, skills and work experience. From there, enterprise could save time in searching for suitable employees as well as saving labor training costs.

In addition, background check improves business efficiency, developes a team of integrity to meet the business requirements of the enterprise. Because recruiting well means finding out people to perform the job with the capabilities and qualities to complete the assigned work, then effective recruitment helps the enterprise perform well its business goal and improve profitability.

Currently, the situation of fraud, diploma trading, or dishonesty in recruitment, many enterprises cannot control and verify all the information that employees provide. Enterprises need to check applicant's background when recruiting to prevent fraud, internal theft; increasing security of data and documents in enterprises; decrease recruitment time and training costs. Besides, creating trust between businesses and employees; increase employee productivity and product quality as well as increase business profits.  It is suggested to consult with professional background check service company with proven track record in Vietnam to help with the local service.

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The cooperation between Da Nang and EU strengthen

  On November 26^th, 2020, representatives of Da Nang city meet and work with the delegation of EU countries to work in the city. The year 2020 marks the 30th anniversary of the establishment of Vietnam-EU diplomatic relations, which is also an opportunity for Da Nang to promote cooperation with EU partners in the coming time.

In recent years, Da Nang has established relationships with many countries in the EU. Many cooperation programs and projects on socio-economic development of the city are coordinated with localities of many countries in the fields of environment, education, information technology, and tourism. Besides, the implementation of the EVFTA has helped the countries have more opportunities to cooperate, especially in the fields of investment and trade.

In addition, Da Nang city also commits to create the most favorable conditions for European investors to invest in Da Nang to set up company in the fields of environment, tourism, high technology, and building smart city.

The head of the delegation of the European Union said that economic activities towards green approaches and areas that focus on attracting investment in Da Nang such as high technology, digital transformation, responding to climate change etc. are also the areas that the European investors are interested in and prioritize towards. This is a great potential and opportunity for cooperation between the countries. With the advantage of European investors is the use of modern technology, digital transformation into production and business, this is completely suitable for Da Nang's goal of attracting investment in this time.

At the meeting, the representatives of European countries highly appreciated Da Nang's development efforts in recent years. The implementation of the Memorandum of Understanding with European countries, as well as many policies to attract European investment as well as administrative reform, helps create an open investment environment and create the best conditions for investors to do business, establish company, obtain investment certificate in Da Nang.

In the coming time, with many policies on investment and economic development cooperation between Europe and Da Nang, Da Nang city hopes that have many European investors will choose the city as their investment destination when expanding their investments in Vietnam.

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Market entery into Vietnam market through merger and acquisition

  Over the past 10 years, Vietnam has always been one of the leading M&A destinations in Southeast Asia. Many international investors have chosen Vietnam as their place of business destination to set up company and apply for investment registration certificate under direct investment or acquiring shares or capital contributions through M&A.

M&A activities enable international businesses to take advantage of the existing business platforms of Vietnamese businesses to continue making investments. This helps international investors to timely grasp the changing trend of technology, legal policies, and facilities to do business, instead of rebuilding from scratch, it will take more time and effort.

Recently, the M&A market in Vietnam has been active and attractive to many investors around the world, especially in the retail and financial sectors. Many international investors have undertaken significant M&A deals in Vietnam over the years and achieved significant profits in their business.

There are many reasons for investors to choose Vietnam as a place to do business, but some of the main factors that make Vietnam attractive are political stability and its economic growth, despite the effects of the Covid-19 epidemic. In addition, with a population of 100 million people, this is considered a large consumption market, along with an abundant and high-quality labour source.

Currently, with the trend of moving production out of China, many investors have chosen Vietnam as the location of setting up company for manufacturing facilities. Rebuilding factories from scratch also makes investors time consuming and costly, therefore taking advantage of Vietnamese factories will help investors not to interrupt their production, and operate the business in a best way.

However, to be able to perform M&A activities in Vietnam, foreign businesses need to understand the Vietnamese market and partners before performing M&A. This will help investors understand the partners' strengths and weaknesses, and outline a suitable business path after implementing M&A. In addition, to avoid unnecessary risks relating to the transaction and to the business itself, investors need to find a reputable and experienced professional consulting company that could help with market research, background check, management criminal record check, business certificate verification, corporate and individual reputation to build up confidence in doing M&A deal in Vietnam.

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UKVFTA- the cooperation between Vietnam and UK

  On December 29^th, 2020, representatives of Vietnam and the United Kingdom signed the free trade agreement negotiation between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA) in London, United Kingdom. It would open up opportunities for flow of goods and that investors from UK to make investment in Vietnam through setting up company, and manufacturing facilities.

After December 31^st, 2020, the Vietnam - EU free trade agreement (EVFTA) will no longer apply to the UK due to Brexit, so the implementation of the signing of a free trade agreement between the two countries is essential to sustaining and developing economic cooperation. The UKVFTA is expected to help reduce import duties on goods from the UK to Vietnam and vice versa. In addition, the commitments in the Agreement will help develop trade and investment between the two countries in the coming time.

In recent years, the UK is a major trading partner of Vietnam in Europe, the import-export turnover between the two countries has increased significantly, especially products of seafood, garments, wood products, agricultural products etc. Besides opportunities to promote exports, improve business investment environment, expand commodity supply, the UKVFTA also poses certain challenges in meeting the quality of goods to qualify for pressure tax incentives in the Agreement.

In order to make the most of the economic effects from the UKVFTA, there are UK investors to invest and produce products that meet the quality and demand conditions for the UK market is essential for Vietnam. Besides, in addition, the advantages of British investors such as finance, pharmaceuticals, chemicals…will benefit Vietnam. Investing in Vietnam in this industries will enable investors to take advantage of highly skilled labor, perfect facilities as well as investment attraction policies in Vietnam to bring the best benefits for investors. On that basis, Vietnam also learn the operations, management and experience from British investors, thereby helping to develop the domestic market. In addition, Vietnam also needs to import raw materials for UK manufacturing industries such as textile materials and leather to ensure compliance with the rules of origin in order to make the best use of incentives from the Agreement.

With the negotiation of the Agreement, this is a new beginning for the economic relationship between the two countries Vietnam and the UK during a period of many difficulties due to epidemics and economic crisis. In addition, this is a step towards further developing the diplomatic, cultural and educational relationship between the two countries in the future.

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Vietnam's advantage of attracting FDI after Covid-19

  In the period of many countries in the world and in the region competing for attracting FDI, especially when the wave of diversification of supply chains after the Covid-19 epidemic is growing sharply, Vietnam is considered to be one of the countries with the most FDI attraction in Southeast Asia for investors to set up company.

Vietnam is a Southeast Asian country with a fast-growing economy, stable politics, young population, abundant labor costs and competitive costs compared to other countries in the region. Besides other names such as Thailand, Singapore, Philippines, Indonesia, Malaysia, each country has a different advantage to attract FDI enterprises from Japan, Korea, EU, USA, etc. However, Vietnam is still the expected destination of many investors.

As a landlocked nation with an extensive international port system throughout the country, Vietnam has a superior position in trading and exchanging goods with other countries. With the investment in infrastructure, the development of international seaports and airports, Vietnam is gradually becoming a destination for international investors. In addition, Vietnam's infrastructure develops relatively evenly across regions, not so different between regions, so investors can freely choose the right investment location for themselves.

Vietnam is a country with a young population in Southeast Asia, a country with the lowest labor costs in Southeast Asia, the labor force in Vietnam is fully trained in many different fields. Not only that, workers in Vietnam are gradually improving their foreign language skills, so that they can meet the needs of international investors, which will make it easier for investors to find the suitable human resources. The human resources in Vietnam not only help businesses invest in Vietnam but also qualified to implement projects of investors in many other countries.

In addition, Vietnam is a politically stable country in the region and investors can be assured of making investments in Vietnam. Along with that, Vietnamese culture has many similarities with Japan and Korea, many investors can make investments without worrying about the cultural differences that will affect the project implementation.

At a time when the cost of doing business in other countries in the region is increasing, the demand for investment movement out of China of international investors is growing strongly, Vietnam needs to seize opportunities, improve infrastructure, create policy clearance, helping investors to attract maximum quality FDI investors to invest, set up company, obtain investment registration certificate and business certificate, transfer in investment capital, hire local people helping create the economic recovery process and business development in Vietnam.

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