Da Nang Hi-Tech Park - Investment Attraction in 2021

  On February 5^th, 2021, Da Nang High-Tech Park and Industrial Zones Authority granted the Investment Registration Certificate to a Japanese corporation to invest in the Research Center project, Development and Production with total investment capital of 35 million USD.

This is a project to carry out scientific research and technology development in the fields of science, engineering and technology for the next generation of robots, unmanned aircraft, Hydro energy equipment, Nano equipment, technology. artificial intelligence (AI), water purification systems, wireless power transmission systems and new material development. The project also researches and develops in the fields of information technology, medical equipment, prototype production (testing), and manufacture of unmanned devices, robots, and medical devices for product commercial purposes and technology after research and development.

From the beginning of 2021 up to now, Da Nang High-Tech Park and Industrial Zones Authority has attracted USD 145 million of foreign direct investment (FDI) capital, increasing the total registered FDI investment capital into the Da Nang hi-tech Park reached USD 536.1 million. Until now, Da Nang Hi-Tech Park has attracted 24 projects, including 12 domestic projects and 12 FDI projects.

In addition, on February 16^th, 2021, the Prime Minister agreed to add an industrial zone supporting Da Nang high-tech park with an area of ​​58,531 hectares. This will help the Hi-Tech Park expand the area, helping investors to easily implement the project.

Besides, Da Nang city has a number of policies to attract investment in high-tech zones such as reducing company income tax, land rental, import tax, support to find suitable labor sources, etc. these are great advantage for investors to be able to do business during the investment process.

Currently, Da Nang is attracting investment for science and high-tech projects, so the investment by high-tech investors in Da Nang will be facilitated by the government to supporting investment procedures to set up company, manufacturing facility in Da Nang. With its efforts, Da Nang hopes that Da Nang Hi-Tech Park is expected to become a "Silicon Valley" in the near future.

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.

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Company profiling and due diligence

  At ANT Consulting, we could assist client to study the financial strength business due diligence of a company  in Vietnam and provide useful information extracted from the local press, industry contacts, and other sources.

We could provide:

• A report on a target company;
• A listing of the company's key officers and senior management;
• Banking and other financial information about the company;
• Market information, including sales and profit figures, and potential liabilities

We could also provide clients with an opinion as to the viability and reliability of the overseas company or individual as well as an opinion on the relative strength of that company's industry sector in target market.

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Set up Branch Office in Vietnam

  Foreign entity is allowed to set up branch office in Vietnam to conduct business activities according to the law.

The branch of a foreign business entity in Vietnam (referred as “The Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

It should be noted that the liability of the Branch is the liability of the foreign entity.  The business activity of the Branch has to be consistent with the business activity of the foreign entity. The Branch has to has office address.

Therefore the investor should consider its investment strategy when setting up its Branch in Vietnam.

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.

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Set up Representative Office in Vietnam

  ANT Consulting offers service to set up representative office in Vietnam for foreign traders whom wish to learn about Vietnam markets and make investment

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.

Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services), but the representative Office is permitted to

• To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;
• To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;
• To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;
• To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

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.

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Panasonic Moved Its Factory from Thailand To Vietnam

  Panasonic will close a large factory outside Bangkok - Thailand early this fall and move production to set up factory in Vietnam to get better production efficiency.

Specifically, according to Nikkei, Panasonic's factory in Bangkok will stop producing washing machines in September 2020 and refrigerators in October 2020. The plant itself will be closed in March 2021, a research and development center will also be closed.

About 800 employees currently working at the factory in Bangkok will be laid off, but will also be recruited to new positions in the same business. By moving production to Vietnam, Panasonic will save a lot of costs.

Panasonic's factory in Vietnam is currently the largest refrigerator and washing machine manufacturing center in Southeast Asia, the plant's production capacity has now exceeded the required threshold.

This movement also reflects a new phase in manufacturing sector of Southeast Asia. Since the 1970s, Japanese electronics manufacturers have moved their production domestically to Singapore and Malaysia when the Yen increased rapidly because of the exchange rate floating policy that was applied for the first time and hurt the price competitiveness of Japanese goods. After that, production activities were transferred to countries like Thailand because of the increasing salary in Singapore.

Now, businesses are looking for cheaper places and also want to gain deeper access to markets where the demand for refrigerators, washing machines and microwaves is increasing in populous countries in Southeast Asia such as Indonesia, Philippines and Vietnam.

Panasonic has been producing home appliances in Thailand since 1979. The total output that Panasonic produces in Southeast Asia after the latest change will not diminish.

Panasonic currently employs about 8,000 workers in Vietnam. Not only producing large appliances, the local Panasonic factory also produces TVs, cordless phones, terminal card payment devices and industrial equipment.

Panasonic is currently in the process of restructuring with the goal of reducing costs by 100 billion yen or about 930 million USD in the fiscal year ending in March 2022. Panasonic is also considering continuing to adjust equipment manufacturing operations. Last year, Sharp also increased its capacity to produce washing machines and refrigerators in Indonesia by 30% and 20%, respectively.

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.

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Assistance In Setting up Business Venture in Vietnam

  To help Clients start business in Vietnam, ANT Consulting introduces the service to assist in setting up business venture in Vietnam.

Foreign investors could make direct investment in Vietnam through setting up one hundred per cent (100%) capital of foreign investors, or establishing joint venture between domestic and foreign investors, or  investing in the contractual forms of: BCC, BO, BTO, and BT

Types of enterprise for foreign investors to invest in Vietnam are as following:

Limited Liability Company 

A limited-liability company may not issue securities to mobilize capital.

Joint Stock Company

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company.  Management system of Joint Stock Company is more complicated than Liability Company.

Partnership

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Representative Office of Foreign Trader

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services)

Branch of Foreign Trader

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Investing by Signing Contracts

Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

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.

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Korean Enterprises Poured Nearly 3.2 Billion USD into Binh Duong

  Korean investment ranked 5th among countries and territories investing in Binh Duong, mainly in the fields of textiles, leather shoes, manufacturing products to support the automotive, medical, cosmetic industries and food processing...

According to Binh Duong Department of Planning and Investment, since the beginning of the year, Binh Duong has attracted nearly 1.45 billion USD of foreign direct investment (FDI), increase by 70% compared to the same period last year.

Accumulated until now, Binh Duong ranked 3rd in the whole country (after Ho Chi Minh City and Hanoi) in attracting FDI with over 3,650 projects from 64 countries and territories, with a total registered capital of 33.93 billion USD.

Notably, Korean enterprises have more and more investment projects, contributing positively to socio-economic development of Binh Duong. Among more than 3,650 FDI projects in Binh Duong, Korea ranked 5th with more than 800 projects, with a total investment of nearly 3.2 billion USD. Korean businesses operate mainly in the fields of textiles, leather shoes, manufacturing products to support the automotive, medical, cosmetic and food processing industries...

From the beginning of the year until now, the project to expand investment with the largest registered capital in Binh Duong is from a Korean enterprise.

Specifically, the project of KyungBang Vietnam Co., Ltd in Bau Bang Industrial Park, registered capital increased by 84 million USD, bringing the total registered investment capital to 179.2 million USD.

According to the Chairman of Binh Duong People's Committee, the results of FDI attraction in Binh Duong are due to the positive contributions of the people and the foreign business community, including the contributions of Korean enterprises.

Therefore, the difficulties that Korean enterprises raised about human resources, problems in the investment process, technology, procedures for selling projects, machinery and equipment, changing the owners' names, transfer of capital... Or, petitions on building more hospitals, applying health insurance for foreigners; opening Korean language teaching centers in colleges and universities in the province; set up e-mail system to solve difficulties in the province... Binh Duong People's Committee will officially reply by documents for enterprises to thoroughly resolve petitions. At the same time, relevant departments must coordinate in strengthening the links between schools and businesses to focus on addressing the problem on lack of high quality human resources...

Besides, Binh Duong will concentrate resources to complete the socio-economic infrastructure system such as transportation, water supply, electricity, environmental treatment... to carry out planning to expand industrial parks, creating a clean land fund to attract investment.

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.

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