Vietnam Completed Bilateral Negotiations in The TPP

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Last weekend, the 5th session of the Ministerial Conference of TPP was ended. The TPP member countries have achieved significant progress, leaving only a handful of issues that need more consultation time in the country. In addition, 12 countries pledged to continue to maintain the momentum of negotiations to resolve these outstanding issues.

The considerable progress achieved in this Ministerial Conference expressed strong commitment of TPP countries in creating an ambitious, comprehensive and high standards FTA, contributing to create more jobs and promote economic growth in the Asia-Pacific region.

Also at the conference, Vietnam has completed all bilateral negotiations with the involved countries, after the Minister of Industry and Trade Mr. Vu Huy Hoang negotiates and exchanges with the Representative of US Trade, the Minister in charge of TPP negotiation of Japan – the two largest countries in the TPP, the leaders of Malaysia, Mexico, Singapore, Canada.

Although problems remain in some points, the experts said that if the negotiation complete, Vietnam will gain enormous benefits. According to a report, Vietnam’s GDP will increase up to 2% if joining this economic community, in while the change of the remaining countries were below 1%. Social investment will rise the most impressive in the country, up to 30%. Regarding absolute values, Vietnam will have nearly 13 billion USD investment capitals, approximately the rate of Japan and nearly twice the rate of Australia, Malaysia and the US. It is clear that the increase of investment in Vietnam is most striking when compared with other countries. TPP will stimulate the formation of fixed capital in Vietnam.

Economic structure of Vietnam was reshaped by TPP. The disadvantage industries or advantages are declining as pork, chicken, dairy, forestry, timber, mining … will narrow; on the other hand, there is an expansion in output and employment in the sector that has advantages, such as textiles, footwear, construction and public services.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Nielsen: Vietnam Is a Land of Potential Opportunities

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According to Nielsen, Vietnam consumers is the motivation for economic development as they are willing to spend more and are also living in the lands of the potential opportunities. By 2020, Vietnam middle class will grow double, from 12 million people in 2014 increased to 33 million people in 2020.

Vietnam is among the top countries with the most optimistic consumers in the world, with more income and more spending. The percentage of increasing in per capita income rose in 2012 by 44% compared to 2010. The average growth rate of the monthly spending per person in 2012 increased by 32% compared to 2010. Therefore, Vietnam people have a strong desire for a better life, demanding about quality when 73% of people are willing to pay for higher quality.

Health is an important issue while there are 39% see health as the most concerning problem in life. Vietnam consumer’s monthly savings is to prepare for future problems, while 34% goes for the future of children, 12% is for health and 11% savings for house purchasing.

Consumers in Vietnam are also having more opportunities for shopping than ever. Modern trade channels are gaining significant role when 42% of consumers buy groceries at the supermarket more often. However, the utility factor is gradually becoming a way of life and developing quickly because of the accordance with the youth and officer with 23% of students and 36% of officer go shopping in the supermarket, convenient shop.

However, grocery store is still the dominant shopping channel in the market, while over 80% of sales of fast moving consumer goods coming from grocery stores, with 1,3 million stores across the country.

Technology offers more opportunities to help Vietnamese consumers connect. Smartphone is booming in Vietnam when nearly 1 in 2 Vietnamese people owning a smartphone, most of rural consumers watch TV daily. Online sales channel has also been in the market with 28% of Vietnamese consumers prefer online shopping.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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FDI Capital Flowing into Vietnam in The First 10 Months of 2015

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Vietnam is positive in receiving foreign investment from Malaysia, South Korea, UK, Japan…in setting up business and M&A activities in various sectors.

The investment capital has been registered with major projects licenced in Tra Vinh, Ho Chi Minh City, Dong Nai, Binh Duong, Ha Noi, Tay Ninh, Hai Phong, Quang Ninh.

Investment projects licensed are mainly in the area of processing and manufacturing, real estates and services.

According to new figures released by the General Statistics Office of Vietnam, from the beginning of this year to October 20th 2015, there have been 1,657 newly licensed FDI projects with total registered capital of nearly 12.43 billion USD, increased by 26.9% of total projects and 24.8% of total capitals over the same period in 2014. There are also 667 projects licensed from the previous year registering for capital increase reaching 6.87 billion USD.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Why Binh Duong – Highlight of Attracting FDI

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Binh Duong is a potential destination in Vietnam for foreign corporation to set-up business and manufacturing facility.

According to the latest data of the Department of Planning and Investment of Binh Duong Province, in the first 11 months of 2015, this province has attracted 1.823 billion USD FDI capitals, reaching 182% of the annual plan, increase by 19% over the same period in 2014. With this result, Binh Duong occupies the 4th position in the country in attracting FDI and continues to assert as a “hot address” in attracting investment in the Southern key economic zone.

Most recently, in November 2015, Binh Duong province has granted the investment registration certificate for the project Kocham Tower with a total investment of 2 million USD to build the office building, culture school, Korean cuisine restaurant… This project comes from the idea of Association of Korean businesses in Binh Duong in which they want to have working place near the company’s factory and the provincial government then they can proposed opinions to tackle the problem.

In the spirit of creating the most favorable conditions for business and investors, the provincial authorities have flexibility in approving the project. The project was granted an area of 1,500 m2 in Binh Duong New City and Korean businesses has also promised to quickly organize funds and complete the project in the shortest time.

In the period 2010 – 2015, FDI attraction of Binh Duong has developed rapidly, with an additional of 879 FDI projects with a total investment of over 8 billion USD. So far, in Binh Duong, there are 2567 FDI projects with total registered capital of 22.244 billion USD from 40 countries and territories. In particular, investment in industrial parks is 1,523 projects with a total investment of 13.972 billion USD, accounting for 62.8% of total FDI capital in the province.

In recent years, Binh Duong province has actively building programs, promotion, investment attraction; timely solution to remove difficulties and obstacles in the process of implementing the project has created confidence for investors; focusing resources on promoting the construction of infrastructure, especially transport infrastructure; improve the investment environment, implementation of administrative reform to enhance the competitiveness of the province.

Binh Duong has 2 billion-USD-project, all of them are in the field of real estate. About attracting FDI, Binh Duong encourages investment in fields as high-tech, supporting industry, attracting large-scale projects, joining the global production chain.

Immediately before and after the TPP was signed, there was a wave of FDI enterprises coming to Binh Duong seeking investment opportunities and quickly making decisions.

According to information from leaders of Polytex Far Eastern VN (Taiwan), this enterprise is licensed for their 274 million USD project at Bau Bang Industrial Zone in 2015. They admitted to set-up factory in Vietnam to catch the opportunities from TPP and implement the trend to move factories from China, Taiwan to Vietnam.

The Vietnam market is very potential, especially the opportunities after joining the TPP. Therefore, in the future, many foreign enterprises will continue to expand their scale.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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