The Note of New Provisions of Law on Planning Decree No.37/2019/ND-CP | ANT Lawyers

The Law on Planning 2017 has been effective from January 01st, 2019. On May 07th, 2019, the Decree no. 37/2019/ND-CP details some articles of Law on planning is effective. This Decree details some articles of Law on Planning including the Article 15,17,19,24,25,26,27,30,40,41 and 49 of Law on Planning.

This Decree applies to organizations and individuals involved in the formulation, appraisal, decision or approval, announcement, implementation, assessment and adjustment of the planning under the national planning system and other relevant organizations and individuals.

Therefore, the time duration for formulation of the national comprehensive planning, national marine spatial planning and national land use planning is not over 30 months, since the day approving the planning task. In the case the national planning system and province planning system, the time duration is 24 months.

This Decree details the contents of planning need to be published on the mass media: A summary of the planning contents must be published at least 01 time on the first page of a printed newspaper or on the homepage of the online newspaper for at least 30 days; The planning contents must be announced on news programs and television channels of national radio and television stations or provincial television stations.

The announcement of planning contents is also carried out through the following forms: model display, planning maps; conferences and workshops to disseminate planning contents and plan implementation plans; publications such as books, atlas, introductory videos…

The Decree specifies the professional capacity of this planning consultancy organization not belonging to state agencies. Pursuant to the Law on Planning 2017, the power to organize planning formulation includes: The Government shall organize formulation of the national comprehensive planning, national marine spatial planning and national land use planning; The Prime Minister shall organize formulation of regional planning; Ministry and ministerial authorities shall organize formulation of national sector planning; The People’s Committees of provinces shall organize formulation of provincial planning. However, the planning organization, the Ministries and Ministerial authorities and local governments shall select a planning consultancy in accordance with regulations of the Law on Bidding. The planning consultancy shall have a legal status and satisfy qualification requirements applied to its assigned tasks in accordance with regulations of the Government is regulated at Article 4 Decree 37/2019/ND-CP includes the conditions as follow:

Planning consultancy organizations must have at least 01 consultant, who is the planning project manager and must have a university degree or higher in the discipline related to the planning to be established to meet the prescribed conditions and at least 05 consultants presided over the planning component or planning contents for the national sector planning and provincial planning to meet the prescribed conditions. Consultancy organizations that formulate planning components or planning contents for national and provincial planning must have at least one consultant meeting the prescribed conditions.

The Consultants who are managers of planning projects must have a university degree or higher in the discipline related to the planning, and have established at least 01 planning of the same planning level that needs to be elaborated or directly participated in set up at least 02 plans of the same planning level.

In case the national master plan is first established in Vietnam, the consultant who is the planning project manager must have a university degree or higher in the discipline related to the planning needed to be established and the owner has established at least 02 regional plans or planning for the inter-provincial river basin.

Consultants who lead the formulation of planning components or planning contents for national and provincial planning sectors must have a university degree or higher in a discipline related to the planning component or planning contents. It is necessary to set up and directly participate in setting up at least 01 planning of the same planning level.

If the national master plan is first established in Vietnam, the consultant who presides over the planning component or the planning content for the national sector planning must have a university degree or higher in the specialized field. relating to the planning component or the planning content to be prepared and presided over at least 01 planning or directly involved in setting up at least 02 regional or planning for the scope of the inter-river basin the provincial.

Organizations that meet the above requirements may conduct planning consultancy for competent state agencies for planning. In Chapter II of Decree 37/2019/ND-CP stipulating the issue of planning, in this chapter, the responsibilities of planning agencies, for each planning, will specify the responsibilities Specific agencies such as: Responsibilities of agencies that formulate national master plans, national maritime space planning, regional planning; Responsibilities of agencies organizing the formulation of planning components and agencies making planning components… prescribe the time limits, tasks and contents of planning, but the planning contents must comply with orientations and points and development objectives of socio-economic space, regional space, social and technical infrastructure… according to regulations, create uniform consistency and ensure sustainable development objectives.

The Decree details about the information system and the national database about planning at Chapter V of this Decree, includes the contents about information and database as follow:

The information, database of the information system and national database about planning and information, the database is digitized, linked, integrated with each other, linked to the national geographic database and appraised in accordance with the law.

The scale of implementing the construction of national geographic database is determined by district administrative units; use VN-2000 reference frame and coordinate system for all types of information, map database.

Information and database collected to build a national planning information and database system include:

Database of national planning documents, regional planning, provincial planning, specialized technical planning, special administrative – economic unit planning, urban planning and planning rural areas have been approved and stored according to Article 44 of the Law on Planning;

Specialized database managed by Ministries, Ministerial authorities, People’s Committees of provinces and cities under the central government, including national statistical database and national statistical indicators system, provincial, district and commune levels; database on water resources; database on geology and minerals; environmental database; database on meteorology and hydrology; database of marine and island environmental resources; database on climate change; land statistics and inventory database; database of land use planning and plans; information and databases related to basic land surveys; database on technical infrastructure systems; database on social infrastructure systems; database on construction; database on urban systems and rural population points; database on housing and real estate market; database on national defense and security; relevant measurement and mapping databases;

National geographic database is standardized and updated regularly;

Information and databases on other planning.

The Decree stipulating the planning contents must be announced on the mass media: notices on national radio and television news programs for national planning and regional planning or provincial radio and television stations for provincial plans on summarizing the contents of decisions or approving planning and lists of projects prioritized for investment in the planning period.

Planning law and construction law have a close relationship. An important principle of planning activities is to ensure stability, avoid disturbance to business and production activities of enterprises and people’s lives. Decree 37 is expected to help clarifying issues, reducing overlapping in relevant legal provisions.

ANT Lawyers attorneys, a law firm with offices in Hanoi, Ho Chi Minh City and Da Nang regularly monitor legal changes to update customers regularly.

Penalties on Working Without Work Permit in Vietnam | ANT Lawyers

Vietnam has become an attractive destination for foreigner investors due to the impressive development of socio – economic in recent years. This is such a good opportunity for Vietnamese enterprises to get cooperation in business with foreign partners.

To take advantage of the opportunities to be the pioneer and market share, many of them have demand in employees with good skills and qualifications. To meet these requirements, more and more companies hire foreign workers for specific positions which might lack of human resources within Vietnam territory.

According to Labor Code 2019, the employer wishing to recruit the foreign workers has to explain their labor demand to the People’s Committee of provinces and obtain written approval from this agency. Pursuant to this written approval, the employer shall submit the application for the work permit to the Department of Labor, War Invalids and Social Affairs of the province where the planned working place of such foreign workers is located.

A foreign employee means a person who has a foreign nationality and:
Is at last 18 years of age and has full legal capacity;
Has qualifications, occupational skills, practical experience and adequate health as prescribed by the Minister of Health;
Is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law;
Possessing a work permit granted by a competent Vietnamese state agency, except the cases specified in Labor Code.

Therefore, based on regulations of the Labor Code of Vietnam, except for the foreign employees exempted from work permit i.e. investor of company established in Vietnam, all of cases the foreign employees wishing to work in Vietnam shall be subject to work permit application. A foreign employee shall produce his/her work permit in Vietnam when carrying out immigration procedures or upon request of a competent state agency.


In case foreign employees who do not belong to work permit exemption being found working in Vietnam without work permit, that person shall be considered violation of the law of Vietnam. In addition, the employer that uses the violated employee without work permit shall be punished accordingly.

According to Decree No. 28/2020/ND-CP dated March 1, 2020 on administrative penalties for violations arising from labor, social insurance and sending Vietnamese workers abroad under contracts.

1. i) Foreign employee that working without work permits, except for the cases in which the work permit is exempt shall be expelled.

2. ii) Employers who employ foreign workers in Vietnam without work permits or written confirmations of their exemption from work permit requirements, or employs foreign workers holding expired work permits or written confirmations of exemption from work permit requirements shall be implied:

3. A fine from VND 30,000,000 to VND 45,000,000 if the violation involves 01 – 10 workers;

4. A fine From VND 45,000,000 to VND 60,000,000 if the violation involves 11 – 20 workers;

5. A fine From VND 60,000,000 to VND 75,000,000 if the violation involves 21 or more workers.

Italian Business Investing in Binh Duong | ANT Consulting

Ambassador of Italy in Vietnam and Binh Duong provincial leaders have attend the opening of the investment support office of Emilia Romagna (Italy) in Binh Duong.

This is the first representative office of the business community, investors of Emilia Romagna in Vietnam, which functions to create a bridge of cooperation between the two countries and promote Italian businesses to invest in Binh Duong.

On the same day in Binh Duong province, the ceremony to sign a memorandum of cooperation between Becamex IDC Corporation (under Binh Duong Provincial People’s Committee) with the Emilia Romagna region, Bonfiglioli Group and Unimore University (Italy). Content of the memorandum is to cooperate in economy, science, technology and education between the parties.

The Italian Embassy in Vietnam said Emilia Romagna is a dynamic economic region with many Italian famous enterprises in the field of manufacturing industry.

Through the opening of a representative office for the business community in the Binh Duong and signed a cooperation will open more opportunities, create the wave of investments by Italian enterprises to Vietnam in general and Binh Duong in particular.

Benifits of Setting Up Business in Danang | ANT Consulting

Da Nang – one of the strategic economic centers of Vietnam’s central region

The Vietnam prime minister has established central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Da Nang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Da Nang – eastern gateway of east – west economic corridor (EWEC)

EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.

Currently, the road system in Laos, Thailand and the road line from Da Nang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of 2006 to facilitate the circulation of goods and passengers by road line from Da Nang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development.

Da Nang – entrance of the cultural heritage and natural wonders of the world

Da Nang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Da Nang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Da Nang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).

With the advantage of geographical location and potential economic development in tourism, Da Nang is an ideal destination for tourists as well as investors.

Infrastructure is step by step improved

Da Nang is an important traffic hub of the central – highlands and country with system of international airports, deep sea ports, roads, north-south railways developed conveniently.

Da Nang port is the third largest commercial ports in Vietnam after Saigon port and the port of Hai Phong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Da Nang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Da Nang is the international shipping route enabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.

Da Nang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Da Nang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Da Nang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargo.

The system of roads in and out of the city are constantly being expanded and newly constructed.

Telecommunication systems: Da Nang is one of three major telecomunication centers of the country, international transmission speed with good quality of Southeast Asia. Da Nang post provides various and modern telecommunication services and be capable meeting the needs of customers.

The other services supporting investment (financial, banking, insurance …): most banks and finance companies of Vietnam have large branches in Da Nang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.

Trained and abundant human resources

Da Nang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Da Nang are lower than some other cities in the country.

Da Nang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Danang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …

Software technology center in Da Nang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard. Many IT company has chosen Da Nang to set up company in da nang to hold their talents for international projects.

In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …

Quality of life

Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Da Nang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Da Nang always bring a sense of peace, comfort and closeness to nature. Da Nang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.

Da Nang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that Da Nang is an exciting place to live, work, travel and invest in Vietnam.

M&A Due Diligence and Execution in Vietnam | ANT Consulting

Merger and Acquisition (M&A) activities in Vietnam have been rapidly increasing over the the years in value and number of transactions when Vietnam’s opening policies to attract foreign investments loosen up. The M&A due diligence and execution are therefore important steps to ensure a successful transaction.

For foreign investors wishing to take advantage with a certain level of risks in Vietnam where the cost of labour are cheap, mid-income populations are growing, and the need of capital are high, it is imporatant to find the right target companies to invest. Challenges might arise when approaching the right local companies, locating the right decision makers within the local companies, encountering differences in languages and cultures.

It is imporant that the local consultants with the understanding of the business and legal environment in Vietnam where the local companies are incorporated could be involved at an initial stage to monitor and minimize the risks, improve the effectiveness of the M&A process in Vietnam.

The Vietnam consulting company could also provide corporate intelligence and insights of the Vietnam targeted companies to have an overall evaluation of the compliance of the Vietnam companies, possible risks involved and growth potential. Financial forensic services might also be needed before other further steps. Then, the following will need to be considered when undertaking the M&A in Vietnam.

Due diligence

M&A due diligence in Vietnam is a vital step because it determines whether the M&A will succeed or not. There are some aspects that must be carefully considered:

· Financial reports

Review all the financial reports of the Vietnam targeted companies within 3 to 5 years to assess the current and future financial situation. These data needs to be audited by a reputable independent auditing company. Evaluating financial situation targets on many aspects such as the reasonable connection between the financial statements, operating and sales margin of the business in relation to the average in that industry. These data allow valuation real value of the target business.

· The cash flow

Checking the dates on invoices showing that whether targeted businesses have paid promptly or not. Term of payment may vary from industry to industry, but generally 30 to 60 days. If the money order is paid after the billing date period of 90 days or more, it means that the business owner may be struggling with cash flow. Finding out that if the clients’ inability to pay bills or not is very important.

· The staff

Determining the importance of staff for the success of the business considering work habits of employees, working time of key employees; ability to remain working after a change of the owner occurs; the incentives necessary to keep key employees; ability to easily replace key employees; the relationship of key employees with the company’s customers.

· The customers

This is the most important assets of the Vietnam targeted company. Make sure that clients are as the other tangible assets of the business. Evaluating customers on some primary aspects: the relationship with the current owner of the business, customer history with business relations and the contribution of each customer to the profits of the company; assessing that customer will leave or stay when the business having new owners; customer services and dispute of the company, the relationship of the former owner of the business with the community or the industry.

· Business location

This is especially important if the targeted company is a retail company. Does the importance of business location play a crucial role for the success of the company? How is the location of the company you plan to acquire? Is there sufficient parking lot for customers? How does the company depend on sales in the region? How is the prospects of the business in this area? Does this place have been in the process of rapid change from new residential district office building or not? Has business location become more or less desirable because of contemplated changes in surrounding area or not?

· Competitors

Considering this aspect in order to define the capacity of the targeted business in the industry, the following questions would help: who are its competitor and what are their strategies? Does the price war happen frequently? How has the competitive environment changed?

· Business registration, permits and zoning

It’s necessary to make sure that business registration certificate and other legal documents can be easily given to the buyer. It would be better to acknowledge the procedures to transfer these documents and its fee with the help of local management consulting company in Vietnam. If the targeted company is a joint-stocks company, what is the procedure for the business registration? Can foreigners own the company 100% according to Vietnam laws? Conditional investments in Vietnam need to be considered carefully by lawyers in Vietnam to avoid mishaps.

· The company image

Company image can be a significant asset and that cannot be assessed in the financial report. There are many intangible factors to consider when evaluating a company: how to serve customers, how employees answer the phone and the level of support the community or the industry.

Negotiate the price

It is important to understand the purpose and motivation of both parties. The sellers’ motivation are formed and affected by value drivers. There are two main value drivers which are approach value and avoidance value. Approach value is our purpose such as prosperity and avoidance value is the negative effect that we need to eliminate. Normally, the buyers try to find out what are the reasons why the owner wish to sell the companies. This will help the buyers plan a reasonable strategy beforehand.

A research analyzes the general aspects that the buyers seeking for via conducting surveys companies’ owner who have sold or transformed their enterprises. The research results are focus on profit maximization (79%), minimization of tax payable (73%), protection of viability of the company (71%)…(Source: Acquisition Marketplace Review, 2007).

The motivation of the buyer in most cases is similar to the motivation of the seller, which is to maximize profits, expand markets, increase revenue, operating areas, areas of activity, minimize taxes…

Family Offices Services in Vietnam | ANT Consulting

Vietnam has been considered as an attractive fit for family offices. The Vietnam’s stock market has been around fifteen ten years. Fund certificates in various forms are available such as close ended fund, open ended fund, Exchange Traded Fund (ETF). Foreign investors are now allowed to hold up to 49% shares in a listed company and this room has been in the process to change in the near future. Although Vietnam market is considered small for pension funds or the similar, this market is a right fit for family offices.

Further, foreigners are now allowed to make direct investment, hold 100% and conduct business in most areas after the new investment law’s effective date of Jul 1st, 2015. The real estate law has been passed with effective on the same date with new investment law, allowing foreigners entering Vietnam to buy real estate.

We are a local professional management consulting firm with family office service that assist foreign clients with asset management and consolidated reporting of all the family’s assets.

In particular, we provide wealth management and tax planning, trustee and corporate services, and support with indirect investment, direct investment, real estate and family governance.

We are your consultants and we could act as nominee shareholder, nominee director, or provide management service that help you achieve the goal, and stay in private status at the same time.

We look forward to helping you find the family office services you need in Vietnam.

Benefits of Setting Up Company in Hanoi | ANT Consulting

Along with the trend of integration in the world, Vietnam is considered a country with rapid and strong growth, in which, industrialization and modernization are focused on developing a uniform set and achieve high performance. Hanoi and Ho Chi Minh City are considered the two cities and dynamic development in Vietnam.

In particular, Hanoi, the potential capital for developing and attracting foreign and domestic investment. Therefore, the investment from businesses to the city is seen as an advantage and the best. To evaluate how such advantages are, the following article will analyze in detail as follows:

First, the labor force

Hanoi is considered a capital with a longstanding historical developed tradition. The population is heavily crowded, reaching about 7 million after 4 times of adjusting the administrative boundaries in 2014. Ha Noi has become one of the 17 largest cities in the world. In addition, with favorable conditions, Hanoi is considered an attractive city for labor, especially qualified and highly skilled workforce. This is a particular advantage for businesses to invest in Hanoi, because the amount of labor leads to a consequence that cost for labor is cheap and a large workforce will provide for industries requiring a large amount of labor force.

Second, the pace of economic development

In 2014, the economy of Hanoi has continued to grow and controlled inflation. In addtion, GDP in the province is estimated at 8.8% and revenue is estimated at 130.000 billion, with 103% of the mathematics. Besides, administrative reform, improvement on the investment environment, business environment, policies to remove difficulties for enterprises often deploy, which made PAR index of cities rise 2 levels compared with 2012 and No. 5 of the 63 provinces and cities nationwide. Thus, with the stable and strong economic development, Hanoi is a city that brings stability for businesses to invest and develop business in this city.

Thirdly, facility

With the aim of developing Hanoi based on critirea of synchronous and modern infrastructure, leadership of Hanoi has attempted to offer policies to promote infrastructure construction of the city in order that Hanoi will become more modern, in which, the traffic system in Hanoi must be built and upgrades more modern. This is considered particularly advantage, because the synchronous development of infrastructure will bring to the development of economy of the city.

Fourthly, administrative and tax policies

With attractive policies for investment, Hanoi has implemented policies solving administrative procedures with only a door. This policy is seen as a new step forward the people of Hanoi in general and businesses having demand to invest in Hanoi in particular. With this open policy, the procedures for establishing businesses, dissolution, business transformation become quickly and easily than ever before, creat favorable conditions for the development of business and resolve administrative procedures. In addition, in order to facilitate business development for businesses, Hanoi has many policies to reduce taxes in order to create favorable conditions for development of new business with low capital.

Fifthly, geographic location

Judged to be a convenient location, with synchronous traffic system, a northern – southern railway, highway 1A, along with the expanded domestic and international routes, Hanoi is considered a city with the most convenient trade location in Southeast Asia and the gateway to the East Sea of Laos and other countries. Thus, Hanoi is the right choice of businesses that need an exchange between domestic and international provinces.

Sixthly, broad market

With the population of 7 million, belonging to one of the 17 cities with the largest population in the world, Hanoi is considered a city which has the largest consumer goods market in the country. Abundant work force, along with the large number of people from suburbs, strong demand for consumer products, services lead to favorable conditions for businesses in production and consumption of consumer products and services. These come from a reason that if the demand rises, the number of products will also lead to increase and as a consequence, economic growth of enterprises will also increase. It can be said that this is a particular strength of the city that businesses investing here are looking forward. From the analysis given above, it can be said that Hanoi is considered to be an attractive destination for small and medium enterprises, especially for enterprises with foreign investment into the Vietnam market. To better understand how to establish enterprises and choose the best type of enterprise, ANT Consulting is honored to be served our customers and provide the best services for customers. We hope cooperation from you.

The advantages of attracting FDI to Vietnam in 2021 | ANT Consulting

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.

The ASEAN - Hong Kong Trade Agreement Expand Investment Opportunities in Vietnam | ANT Consulting

The ASEAN – Hong Kong Free Trade Agreement (AHKFTA) has been effective from June 11th 2019 for Singapore, Thailand, Vietnam, Laos and Myanmar, which are expected to positively impact the South East Asia economy, particularly Vietnam.

This trade agreement was signed between Hong Kong and 10 member countries of the Association of Southeast Asian Nations (ASEAN) in November 2017, which will help reduce commodity taxes, boost service and investment flows among regional markets and Hong Kong.

Accordingly, countries will gradually reduce tariffs in the coming years.

According to HSBC Vietnam, the ASEAN – Hong Kong Free Trade Agreement is a new step in efforts to ensure global trade freedom and is a great success for ASEAN, particularly Vietnam.

In the context of ongoing trade tension, Hong Kong businesses are seeking to expand investment opportunities and this Agreement opens up more opportunities in Southeast Asia.

Bilateral cooperation between Hong Kong and Vietnam has developed steadily over the years and the implementation of the new agreement promises to open more opportunities for cooperation in these two markets. ASEAN is Hong Kong’s second largest trading partner in the field of merchandise trade in 2018 and is the fourth largest partner in service trade in 2017.

By the end of 2017, ASEAN ranked fourth among Hong Kong’s direct offshore investment markets. ASEAN is the sixth direct foreign investment source of Hong Kong worth about 628 billion Hong Kong dollars.

Vietnam with the advantage of geopolitical factors is considered an attractive investment destination for foreign investors. The AHKFTA Free Trade Agreement will open more business opportunities for this fastest growing Southeast Asian country, continuing to boost trade flows between Vietnam and Hong Kong.

In the first five months of 2019, Hong Kong ranked first among investment markets in Vietnam with a total investment of 5.08 billion USD, accounting for about 30.4% of total investment in Vietnam. The agreement is expected to make it easier to access trade flows between Hong Kong and ASEAN. Intensified trade and investment flows will help Vietnam improve its production capacity, thereby maximizing the opportunities that come from trade flows.

Car Booking Application of Indonesia Pours 500 Million USD in Vietnam and Three Other Countries | ANT Consulting

Go-Jek – a car booking application from Indonesia has decided to pour 500 million USD to invest in Vietnam and 3 other countries.

Go-Jek – Indonesia’s most popular car sharing application has announced it will invest about 500 million USD to join four new markets, which are Vietnam, Thailand, Singapore and the Philippines in the coming months. Initially, they will only provide carpooling services, then expanding to other forms later.

Starting with carpooling, Go-Jek now offers food delivery service, online grocery stores and payment. Last year, Go-Jek had acquired three Fintech companies to increase its presence in Indonesia digital payment sector.

Go-Jek’s services are available in 50 cities in Indonesia. They are also supported by many well-known investors, such as Temasek Holdings (Singapore) and Tencent (China).

Expanding to new markets will increase competition between Go-Jek and its competitor – Grab (Singapore) in the region. Grab now also offers similar services, such as carpooling, digital payment and food delivery. Both are struggling to gain market share in Indonesia.

Earlier this year, Google invested in Go-Jek. According to Google, this move is consistent with their ambition to help Indonesia develop its digital economy and start-up. However, they do not disclose the specific amount.

Reuters also reported that Go-Jek had an additional 1.5 billion USD in a capital mobilization round in February. This company is currently valued at 5 billion USD, according to PitchBook – a financial data company.

Vingroup Produces Smartphone Called Vsmart | ANT Consulting

Vingroup has just announced that they will manufacture electronic devices, starting with the smartphone branded Vsmart.

Implementing the strategy to expand the field of industrial production, following the VinFast automobiles and electric scooters production project, Vingroup established VinSmart Company with a charter capital of 3,000 billion VND.

VinSmart will operate in two main areas. The first is the production of smart electronics, starting with smart phone branded Vsmart. The second is research, experiment and application of artificial intelligence (AI), automation and new generation materials.

Vsmart factory will be built at VinFast automobile production complex in Dinh Vu, Cat Hai economic zone (Hai Phong) according to international standards. In terms of technology, Vingroup is working with leading consulting firms to hire design consultants, find good experts, acquire the right to design components for smartphones and purchase equipment lines to produce phones.

Vingroup believes that the cooperation with leading partners will ensure that Vsmart smartphone manufacturing process is equipped with modern, advanced, optimized and ensure quality products.

In the second field, VinSmart will set up centers for research, experiment and application of artificial intelligence, automation and new generation materials and will actively study and buy patents to experiment in Vietnam to bring these innovations into production and life.

By participating in the field of experimental research and application of high technology and smartphone manufacturing, Vingroup expects not only to contribute to creating a new future for the Vietnam industry sector, but they also contribute to the building of a solid knowledge base, which captures opportunities for growth from the 4.0 technology revolution.

Potentials of Vietnam Logistics Industry | ANT Consulting

When Vietnam joins the TPP, Vietnam logistics industry has many opportunities to develop and engage more deeply into the world’s logistics centers…

According to the report of World Bank, the forecasted growth rate between 2015 and 2020 is 12%/year and import export turnover reached 623 billion USD in 2020, Vietnam is a promising destination for investors.

According to the statistics from the Vietnam Logistics Business Association (VLA), Vietnam’s logistics costs accounted for about 25% of GDP per year, much higher than countries such as the US, China or Thailand.

In the coming time when TPP agreement takes effect with many tariffs equal 0%, the export-import operations in Vietnam will promise to develop strongly. This is considered a great opportunity for the logistics industry to “boom”.

As an important link of the economy, the logistics activities help the goods to reach consumers and ensure the materials for the production process.

Despite facing strong competition from foreign rivals, many experts still appreciate the future prospects of the domestic logistics enterprises, especially in the context of free trade agreements (FTAs, TPP) boosted FDI inflows pouring into Vietnam industries.

On the other hand, the increasingly improved infrastructure in Vietnam will strengthen connectivity between logistics facilities and production areas; planning and supporting from the State, along with customs procedures are gradually improving in a positive direction.

In the recent two years, a series of key infrastructure projects have been started and completed as Long Thanh – Dau Giay highway, Noi Bai – Lao Cai highway, Ha Noi – Hai Phong highway, Ben Luc – Long Thanh highway Highway 51 connecting industrial park with the ports and Soai Rap channel dredging works (in Hiep Phuoc port) and Thi Vai – Cai Mep channel…

In addition, the Government and the Ministry of Transport have launched a number of policies to guide, support and stimulate the sustainable development of the domestic logistics industry such as: policy to control road loading, preferential policies for Vietnam ships on domestic routes, the draft to establish port authorities to develop ports and port services, Decision No. 1037/QD-TTg on the port development plan till 2020…

Moreover, according to the General Department of Vietnam Customs, Vietnam is also actively developing and implementing the ASEAN Single Window mechanism. The implementation of this process will benefit the business community, including logistics businesses such as reducing the time taken for administrative procedures and also cost reduction.

However, in order to develop logistics industry, the State should build and complete the legal framework, standardized service processes, upgrading infrastructure and human resources for the field of logistics.

Government should also take measures to guide and promote logistics companies to link together, formed the company with strong capabilities, able to compete with foreign companies.

With the above subjective and objective elements, Vietnam’s logistics industry still have great potential to develop and first of all, they will have conditions to advance to move towards to same level with foreign logistics businesses in the region.

Transport market in Vietnam – Investment opportunities for foreign investors | ANT Consulting

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.

iii. 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.

Educational Investment: A Trillion Race | ANT Consulting

High profit margin, stable growth, lower risk than investment in other sectors. That is the reason, in recent years, investment in Vietnam education sector always takes place, especially large-scale M&A transactions in Vietnam.

One of the barriers for Vietnamese students to integrate into the world community is their limited English and soft skills. In addition, the curriculum of higher education has not linked to the labor market, people are more interested in spending on education. All that has led to investment in education over the years has become hectic.

In addition, the political stability, economic growth is the cause of increasing investment in education, but the capital scale that businesses invest in this field is still modest compared to other sectors. Hence, education is still a fertile market for investors to continue looking for opportunities.

Education is an area where there is no limit on demand. Along with the development in science and technology, the demand for professional knowledge and language skills to meet the requirements of domestic and foreign job market is increasing. Moreover, there is a growing need for sending children to study abroad. According to a recent study, 42% of Vietnam’s population is under the age of 24 – the golden age for almost all educational programs, so investing in bilingual schools, international universities, English language center is the “golden egg” for many businesses.

Investment trends in higher education will continue in the coming years as non-public universities currently only train less than 15% of the students, while the Government target is 30%. In Japan, Korea, private education and training facilities account for up to 70%.

According to the planning of the network of universities and colleges up to 2020, the total size of university and college education will reach about 2.2 million students, striving to 2020, the whole country has 224 universities and 236 colleges, but the capability to meet is still limited.

Many investors step into the race into this field, i.e. Cognita Education Fund buys International School HCMC (ISHCMC) and Saigon Pearl International Primary School, Nord Anglia Education Fund buys British International School (BIS), TPG – US Investment Fund buys the Vietnam Australia Bilingual School (VAS), EQT Investment Fund invests in the ILA English Language Center, TAEL Investment Fund invests in the Institute of American Education (IAE), the IFC Fund of the World Bank invests in Vietnam USA Society English Center (VUS), the Mekong Capital Fund invests in the Yola English Language Center, the Institute of American Education (IAE) invests in Thanh Tay University… among many transactions.

Another reason that education is attracting more investment is the steady source of profit. Although investment in education is considered as a long-term investment, as even 10 years later it is unlikely that the capital will be recovered, but the rate of profit against bank deposits is much higher and stable. There is also no bad debt because students must pay tuition at the beginning of the school year.

According to a recent statistic from Forbes Vietnam, out of 43 universities and colleges providing financial data, 77% of the schools have revenue exceeds their spending. The foreign language training offers the highest return in education investment, the lowest is 20% and with good performance, it can reach 50%.

The reason why investors are pouring money into education is because they can see the great potential of the market because the middle class is growing rapidly, the demand for education and expansion to the world is also increasing dramatically, while the education of Vietnam is backward.

Each year, it is estimated that Vietnamese people spend about 3 billion USD on overseas study and this number has grown rapidly over the years. According to the Ministry of Education and Training, if in 2010, 2011, the number of Vietnamese people studying abroad is about 98,000, then in 2016, it is about 130,000.

In Australia, each year the country earns 17 billion USD from international students, in which many of them coming from Vietnam. That is the driving force for investment in education in Vietnam next year higher than last year.

Italian Business Investing in Binh Duong | ANT Consulting

Ambassador of Italy in Vietnam and Binh Duong provincial leaders have attend the opening of the investment support office of Emilia Romagna (Italy) in Binh Duong.

This is the first representative office of the business community, investors of Emilia Romagna in Vietnam, which functions to create a bridge of cooperation between the two countries and promote Italian businesses to invest in Binh Duong.

On the same day in Binh Duong province, the ceremony to sign a memorandum of cooperation between Becamex IDC Corporation (under Binh Duong Provincial People’s Committee) with the Emilia Romagna region, Bonfiglioli Group and Unimore University (Italy). Content of the memorandum is to cooperate in economy, science, technology and education between the parties.

The Italian Embassy in Vietnam said Emilia Romagna is a dynamic economic region with many Italian famous enterprises in the field of manufacturing industry.

Through the opening of a representative office for the business community in the Binh Duong and signed a cooperation will open more opportunities, create the wave of investments by Italian enterprises to Vietnam in general and Binh Duong in particular.

Set-up Joint Stock Company in Vietnam | ANT Consulting

Joint Stock Company is an enterprise which has charter capital divided into equal portions called shares. The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.

Shareholders shall be liable for the debts and other property obligations of the enterprise only within the amount of capital contributed to the enterprise.

Joint Stock Companies may issue all types of securities to raise funds. Founding shareholders must together register to subscribe at least twenty per cent (20%) of the number of ordinary shares which may be offered for sale.

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.

Why Asian Investors Prefer Vietnam Real Estate Market? | ANT Consulting

Profitability of high-end real estate in Vietnam surpasses that of ASEAN countries.

According to Mr Pham Lam, General Director of DKRA Vietnam, in the past 3 – 5 years, Asian investors from Korea, Hong Kong, Japan, Malaysia and China have been active in the Vietnam real estate market. They prefer golden land funds, specializing in high-end and luxury real estate development.

Also according to leaders of DKRA Vietnam, the investment wave of Asian investors will increase in the next few years. The expert also outlines the 7 causes of the trend that Asian investors hunting for golden land to develop high-end real estate projects.

Firstly, Vietnam is a developing real estate market. In emerging markets, there are more investment opportunities than markets that have grown too long (saturation of opportunity). Real estate in many Asian countries are too expensive and the investment at the present time is not attractive in the native country has urged Asian investors poured capital into Vietnam market.

Secondly, Vietnam is a country with political stability, which is considered as the most important factor that is of international concern before entering a new market. The stable political background brings safety for investment yields in the context of global geopolitical fluctuation is increasingly unpredictable.

Third, high-end and luxury real estate in Vietnam, especially Ho Chi Minh City (HCMC), is more profitable than ASEAN countries. According to a recent report of some surveyors in the country, high-end real estate in districts 1 and 3 of HCMC have a profitability ratio of more than 4%. In District 2, especially Thao Dien, An Phu and Thu Thiem areas, luxury apartments achieved a profitability rate of 5 – 6.5%.

Meanwhile, the profitability rate of investment in luxury apartments in ASEAN is fluctuating in the range of 3.7 to 5.2% and in Asia, it also has the same threshold. Therefore, luxury real estate in HCMC is considered quite competitive while the price is lower.

Fourth, Vietnam has Asian culture in accordance with the culture of other countries in the area. The similarity or proximity in culture is a very effective bridge in the process of investment promotion, investment cooperation, helping the Asian real estate owners easily access and penetrate the real estate market in Vietnam.

Fifth, Vietnam has a young population and is experiencing a spurt in income, so the demand for housing has increased sharply. The middle class, even the rich and the super-rich, are among the fastest growing groups in the world. This is a remarkable advantage of Vietnam.

With the flagship product of Asian investors, which is high-end real estate, they target rich consumers who are willing to pay for high-value assets with outstanding quality to assert their position.

Sixth, interest rates in the developed real estate markets in the Asia is very low. Interest rate in Japan is 1%, Singapore is 3%, Korea is below 2% and other regions such as Taiwan, Hong Kong is also at a modest level compared to Vietnam. This is the factor attracting the attention of investment funds and major real estate companies in Asia coming to Vietnam. In addition to developing projects with committed profit margin, they also carry out loan deals with better interest rates than in their hometowns.

Seventh, due to the same region, the moving distance between Vietnam and their home country of Asian investors is considered to be faster, more convenient than other continents. Close geography distance helps Asian investors have more opportunities to monitor, check the new market and make important decisions in time, making the most effective investment.

Improving Business Environment and Enhancing National Competitiveness in 2018 | ANT Consulting

After four years of implementation of resolutions 19-2016/NQ-CP, 19-2017/NQ-CP, 19-2018/NQ-CP of the Government, business environment and competitiveness of Vietnam have continuously improved.

According to the research, in 2017, the business environment, enhance competitiveness has achieved positive results; National competitiveness increased 5 levels compared to 2016 (increased from 60/138 to 55/137); business environment increased 14 levels (increased from 82/190 to 68/190 economy); Innovative innovation improved 12 levels, reaching the rank of 47/127 economy. These are the highest rankings that Vietnam has achieved so far.

Continuing to follow the assessment objects of World Bank’s business environment, the enhance competitiveness of the World Economic Forum, World Intellectual Property Organization, etc., to achieve the targets set for 2020, the quality of a business environment of Vietnam is on par with the average of ASEAN 4.

The target for 2018 will improve the business environment index from 8 to 18, which focuses on improving business start-up and dispute resolution. Complete the abolition, simplification of investment conditions, business. Limit the specialized inspection according to goods and products; strongly transform the way state management from pre-inspection to post-inspection. Improve the application of information technology in administrative procedures and online services. Enhance the competitiveness of the tourism industry, logistic services to facilitate and reduce business costs.

In order to achieve the above objectives, resolution 19/2018/NQ-CP provides basic solutions and assigned tasks to each agency and coordinated implementation to achieve the targets set in 2018, bringing Vietnam’s ranking to the top of the charts. Accordingly, ministries and agencies shall develop action plans, define specific objectives, tasks and responsibilities, monitor and evaluate them. Carrying out reform of administrative procedures and application of information technology in public services; to carry out the inspection, examination and audit in a uniform manner, avoid overlapping, affecting the operation of enterprises, create a competitive environment, promote transparency and market development of testing and inspection services, inspection, certification.

Specific mandates for ministries: Ministry of Planning and Investment (focusing on activities related to enterprises); Ministry of Justice (elaborate a plan on improving the law on contracts and civil dispute resolution by non-court proceedings); Ministry of Finance (dealing with tax issues, improving tax index, business start-up index); Ministry of Transport (offering solutions, reducing costs, developing logistics infrastructure) and other ministries such as the Ministry of Culture, Sports and Tourism; Ministry of Public Security; Ministry of Industry and Trade and other ministries such as Ministry of Science and Technology, Ministry of Information and Communication; Ministry of Natural Resources and Environment; Ministry of Health, Ministry of Construction; Ministry of Agriculture and Rural Development … to coordinate to achieve the objectives set out in the resolution.

Alibaba from China Acquires Lazada Vietnam | ANT Consulting

Recently, there is a trend that foreign company comes and buy company in Vietnam, in order to expand their business operation and also set foot in Vietnam market, where is emerging as a potential market of the area.

Alibaba Group – China’s giant technology corporation has spent 1 billion USD to acquire Lazada, thereby officially set foot in the online sales market of Vietnam.

On April 12th 2016, the China’s giant technology group named Alibaba Group announced that it has reached an agreement to acquire the control of e-commerce platform in Southeast Asia, which is Lazada with an amount of 1 billion USD , thereby officially set foot in Vietnam.

The transaction includes an investment of 500 million USD in Lazada’s newly issued equity and the repurchase of shares of some Lazada’s shareholders include Rocket Internet SE, Tesco Plc and Investment AB Kinnevik with a total investment value of Alibaba reach approximately 1 billion USD.

This acquisition is expected to help worldwide brands and distributors that are trading on the platform of Alibaba, as well as local vendors can reach the consumer market of Southeast Asia. In addition, Alibaba deal with a certain number of shareholders of Lazada, giving Alibaba the right to purchase and shareholders the right to sell its remaining shares in Lazada at the market prices in 12-18 months after the completion of the transaction.

Lazada is headquartered in Singapore, which was founded and operated by Rocket Internet SE from Germany. The company carries out e-commercial activities in Indonesia, Singapore, Malaysia, Philippines, Thailand and Vietnam.

According to Bloomberg, the deal came from the objectives set by the billionaire cum Alibaba’s chairman Jack Ma, targeting at least half of company revenue comes from markets outside of China.

Through the deal with Lazada, Alibaba generate more revenue from sale of clothing and electronics in 6 regional markets in Southeast Asia where Lazada if operating, including Vietnam.

Set Up a Business in Vietnam | ANT Consulting

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.