ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Friday 22 April 2016

risk management in vietnam
The concept of risk is not strange to businesses in particular and those who do business in general. “Doing businesses is taking the risk” became a popular saying of the business people, whether they are owners of large or small businesses.
Although business has to face with risk every day and every hour but risk management is relatively new concept, not many businesses have understanding about it. Therefore, the risk management activities of the business are often being conducted in a half-hearted way. Not many businesses, including large enterprises, have proper risk management departments in their organizational structure. Hence, the uncertainties and crises are usually occurs, causing negative effects and sometimes become disaster for the business.
There are always potential risks in any business environment, whether that environment is developed with clear and transparency rules, or that environment is primitive environment with many confusing and complicated. If the business environment is primitive with inexperienced entrepreneurs, there will be more risks. Risk can be derived from many factors in which the subjective factors may cause risk to occur more with more severe consequences, or vice versa, enterprise can stop the risk or significantly reduce its impact. This depends on the risk management capacity of organizations and businesses.
Risk management is the process of analyzing the environment (inside, outside) to identify, analyze, evaluate, classify, ranking and implementing appropriate solutions to respond to risks to eliminate or minimize the negative impacts that may have. In many cases, risk management includes identifying opportunities within the risk, in order to exploit, take advantage of them and bring benefits to compensate for the damages caused by the risk.
Risk management is different from risk control and risk handling. Risk control is the response activities for the risks that have been identified. Risk handling is dealing with risks and crisis after it has actually occurred. Risk management is the systematic activities, maintaining at every level and assigning to a specialized department.
Properly understand the nature and importance of risk management, business will definitely not hesitate in setting up a professional risk management system. An effective risk management system helps businesses to identify risks early (which are very diverse, extensive and constantly changing), evaluate the possibility to occur and the degree of harm to have effective response measures. Unfortunately, the subjectivity is still the characteristic of many businesses in the risky business environment.

Wednesday 20 April 2016

RISK MANAGEMENT: A VITAL ELEMENT WHEN DOING BUSINESS

Risk management is a vital element when doing business but so far, not many enterprises concern about it.
According to a recent survey with 522 companies, there are only 43 companies, accounting for about 8%, have the independent risk management department in their business. More noteworthy, the majority of these 43 companies operating in the banking and financial sector, which has nothing new to risk management. In fact, not all banks have independent and effective risk management departments. The negative problems related to the banking system in recent times somewhat showed the picture about the risk management of this sector.
Risk is understood as any events and situations that could harmful to the ability to achieve the business objectives of the enterprise. Risk management is organized in a formal way and is conducted continuously to identify, control and report the risks that may affect the achievement of the business objectives of the enterprise.
So why businesses are not interested in risk management? Part of this problem stems from the awareness of the leaders. In order to build and operate the risk management system in the enterprise, it needs the commitment of the senior leaders. If senior leaders do not aware of this problem, the administration process will be difficult to achieve the desired effectiveness.
Recently, there are many theories and systems of risk management but small and medium enterprises should be cautious when apply because system and theory are just general and they should be adjusted when applying to each business.
In order to form the culture of risk management, the leaders must along with the employees to implement it regularly and for each project. In theory, the risk management process is carried out in 5 steps: identify risk; evaluate its impact; determine the likelihood; action and measures; monitoring and evaluation.

Tuesday 19 April 2016

ALIBABA FROM CHINA ACQUIRES LAZADA VIETNAM

buying company in vietnam

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.

Monday 18 April 2016

SAIGON CO.OP COOPERATED WITH WILMAR (JAPAN) TO BUILD SAUCE FACTORY

nam-duong-dau-tu-nha-may-256-trieu-usd-tai-tphcm1446010729
Nam Duong International Food Co., Ltd will implement the project with a total investment capital of 577.2 billion VND (equivalent to 25.6 million USD) to build a new factory in Hiep Phuoc Industrial Zone (Nha Be, Ho Chi Minh City).
Accordingly, Nam Duong International Food Co., Ltd is a joint venture between Saigon Co-op (a large retailer in Vietnam) and Wilmar International Limited (Singapore) with the capital contribution ratio is 49% and 51% respectively.
After the joint venture was established, the preparing procedures for the new factory will be conducted expeditiously. The factory will specialize in manufacturing sauces and spices to serve the domestic and export market.
The brand “Nam Duong” owned by Saigon Co.op, which was founded in 1951, is one of the brands in the sauces and spices industry in Vietnam, with products: soy sauce, sauce, chili and tomato sauce. These products are preferred by domestic and abroad consumers. These products are now being exported to markets such as the US, Canada and Europe.
As the leading retailer in Vietnam, Saigon Co.op understands the trend, tastes and appetites of consumers. On the other hand, Wilmar Group which has extensive experience in manufacturing and distribution of food worldwide. Through this joint venture, the Nam Duong’s sauces and spices products will meet the international production standards and safety and will be sold in a global distribution network but still preserve the traditional flavors in each product.
The main objective in the development strategy of Wilmar is aimed at building and developing closed business models with diverse agricultural commodities, proactive from input raw materials to produce and distribute finished products. Currently, the Group has more than 500 factories in China, India, Indonesia, Indonesia, Vietnam and 50 other countries worldwide. The Group develops based on multinational human resources base with 92,000 employees.

Friday 15 April 2016

Vietnam to be a favorite destination for Thailand investors



Since Vietnam has become a full member of ASEAN in 1995, positive results in trade and investment relations between Vietnam and Thailand have been observed. Particularly, the two countries upgraded their relationship to a strategic partnership, on the occasion of the General Secretary H.E. Mr. Nguyen Phu Trong’s official visit to Thailand in 2013, meaning that Thailand attached much importance to its relations with Vietnam. Later in 2014, on the occasion of Thai Prime Minister Prayut Chan-o-cha’s official visit to Vietnam, the two sides signed the Action Program to implement the Vietnam-Thailand Strategic Partnership during the period from 2014 to 2018.

Over the past years, the two-way trade turnover between Vietnam and Thailand has experienced fast growth. The turnover was valued at US$9.4 billion in 2013, 9.2 percent higher than 2012, and it reached US$10.6 billion in 2014, 12.5 percent higher than 2013. As of June 2015, Thailand with registered investment capital of US$6.8 billion has ranked 10th among the 101 investors in Vietnam. Thai firms mainly invest in machinery manufacture, food and forestry processing, construction, wholesale and retail networks, and machinery repair. Meanwhile, Vietnam has 7 investment projects in Thailand with total investment of US$11.35 million and the Vietnamese firms focus their investment on property, household goods, tourism and software.


Following The Nation - the most updated English news website of Thailand, there have been so far 2,000 Thai enterprises who wish to invest and did register with Thailand Embassy in Vietnam. Many small and medium Thai enterprises (SMEs) are developing their activities in Vietnam to obtain more shares in this potential market.

Although coming a bit later than Japanese and Korean investors but seeming to have more giant moves, Thailand companies are significantly penetrating Vietnam’s market by taking over existing business chains. Many recent signals showed that Thai groups are planning giant investment projects in Vietnam.

Saha Group, one of Thailand biggest manufacturers and traders of consumer products, is negotiating with its Japanese partner for joint expansion of its logistics and property ventures in Vietnam next year, reported Bangkok post. "We want to invest more abroad. For Vietnam, we're interested in logistics, property and wholesale," the executive said.

The Ton Poh Thailand Fund, a Bangkok based boutique fund management company, became major shareholder of Hoang Huy Investment Services (HHS) after buying more than 5.9 million shares on May 7, holding 5.32% stake after the deal. Moreover, this Fund, in March this year, had bought 2.5 million CTD shares, holding 5.92% stake and becoming the largest shareholder of CotecCons JSC.

Besides, the Bangkok-based Chairatchakarn, a Thai automobile enterprise which trades Toyota and Hino brand vehicles, bought 2 million shares of HCM City-based Truong Long Automobile, becoming a large shareholder of the Vietnamese automobile firm with 22.6 percent of shares.

Also, in early this year, Thai billionaire Charoen Sirivadhanabhakdi, who did spend nearly US$900 million to buy out German retailer’s Metro Cash-and-Carry in Vietnam, which is considered the biggest foreign-owned retailer in Vietnam and possesses 19 supermarkets nationwide, has confirmed his interest in bidding for 40% shares of Saigon Beer, Alcohol and Beverage Corporation (Sabeco), Vietnam’s largest beverage producer, with an offered price being 60% higher than the price on over-the-counter market.

It can be seen that Vietnamese market is attracting much attention from Thai funds and enterprises. Following Mr. Tussin Mahamongkol, vice chairman of the Thai Business Association in Vietnam, Thai products are quite appreciated by local customers. Therefore, it’s a good opportunity for Thai enterprises to enter and position in the market.

According to Bank of Thailand, investment from this country into Vietnam increased 11.8%, up to US$2.5 billion in 2014 - of which, investments in industry sector account for approximately US$112 million.

To explain why Vietnam is so attractive to Thai investors, many reasons have been mentioned including Vietnamese government’s preferential policies aiming to attract investment (foreign businesses could win tax waivers for four to nine years and though land ownership is prohibited, the lease period is as long as 50 years, etc.), a young and somewhat skilled labor force with thirst for knowledge, a growing domestic purchasing power and a convenient transport route to China, Japan, Oceania and the American west coast.

Warrick Cleine, chairman and chief executive of KPMG in Vietnam and Cambodia, said at a recent briefing in Bangkok that Vietnam could be a destination for investment in several areas including food, retail, high-value consumer goods, and condominium development.


He noted that Vietnam's young population was ready to purchase and spend. Young Vietnamese make frequent visits to supermarkets and demand good-quality consumer products. Condominiums are also in high demand in Hanoi, Ho Chi Minh City and Danang. "Vietnamese consumers show great excitement for foreign brands. Asian tastes are more suitable for them. It's happening right now. There is a very big opportunity to come," Cleine said.

In one hand, the arrival of big Thai investors to Vietnam can bring in their experience as well as good management skills and somehow benefit the local enterprises. In the other hand, the tough competition, which goes along with, will push these latter to improve their performance in order to avoid being losers in the domestic market.

VIETRADE

Thursday 14 April 2016

VIETNAM RETAILING 2015: FIERCE COMPETITION

rt
It is easy to see that 2015 was a very active year of Vietnam’s retail market, especially in merger and acquisition (M&A), association and joint venture activities… both in manufacturing and trading of retail businesses such as Kinh Do, Citimart, Metro and Nguyen Kim.
According to Euromonitor International – a market research firm, the retail sales in Asia – Pacific was about 4,000 billion USD in 2012 then the top 500 leading retailers accounted for 1,000 billion USD, representing for 24% of total sales. Vietnam retail market is considered attractive and high potential despite the world economy remains difficult.
In 2014, most of the domestic businesses tend to cluster and maintaining position, except some large enterprises like Co.opmart and Saigon Trading Corp (Satra). Even a few enterprises withdrew locations like Fivimart withdrew all locations in the South or Intimex, Hapro also withdrew some locations in the North. This was intended to reinforce the quality of the business and rebranding. Excepting for Satra and Co.opmart still have more new locations this year. Currently, Saigon Co.opmart has presented on 71 locations including 29 supermarkets in Ho Chi Minh City (HCMC) and expanded to 42 nationwide supermarkets, along with around 100 Co-op Food convenience stores.
According to the experts, the retail market of Vietnam is shifting from the model of mature market to postmodern market. The market is gradually concentrated and the number of companies decreased. Some large retailers failed, saturated real estate market. The model of hype supercenters dominates the retail industry in the postmodern period. At the end of the growth period will be an important change in the retail market for both retailers and suppliers.
Retailers seek future growth because there is no retail channel dominates the growth. Part of the development of hypermarkets in the mature phase will focus on the discount channel. According to the trend, the discount channel continues to grow in the postmodern period. Currently and in the coming time, retailers will frequently launch discount programs and deals to attract customers.
The factors that impact the global distribution market are the speed of technological change, change in demographics, buying behavior requires lasting communication connection and knowledge-based purchases. Therefore, retailers must take care of customers regularly with the best service.
As for foreign companies, except Walmart corporation (USA) is in the exploratory stage, most of the major corporations in the world have joined the Vietnam retail market such as Lotte, Big C, Metro, Parkson , Aeon… Foreign enterprises are entering Vietnam market by many different ways: joint venture, association, cooperative transfer location.
Vietnam retail market is very potential. Currently, Vietnam has more than 90 million people, in which the young population accounts for more than half. The average GDP of this country is approximately 2,000 USD / person. In the future, this figure will increase and that will be a prerequisite for the development of Vietnam retail industry, especially modern retail. According to statistics of the Ministry of Industry and Trade, the market share of modern retail in Vietnam makes up only 25% of total retail sales. The whole country has about 724 supermarkets and 132 shopping centers. Moreover, the number of truly convenience store, which is branded and operated in store chain, is just hundreds stores. Most supermarkets and shopping centers concentrated in major cities and urban areas. In rural areas and suburbs, they are virtually absent from the retail system, they are major distribute in installments. Therefore, the market share of modern retail market of Vietnam is still quite a lot.
However, this market will have fierce competition between domestic and foreign enterprises. Foreign investors are not only penetrating into Vietnam by the ways of joint ventures in the distribution chain right from production process. For example, C.P Company, which is belong to C.P Group (Thailand) is accounting for 50% market share of eggs, 30% market share of chicken, 7% market share of animal feed in Vietnam. Hence, foreign companies are holding a supply chain from production to distribution. Besides, foreign companies are mostly big enterprises that have advantages in capital and experiences. They have good strategies and that will be the biggest challenges for domestic businesses on the path to affirm its position.
2015 and the coming years, Vietnam retail market will continue to be active and witnessing fierce competition among enterprises, particularly between foreign and domestic firms. We will continue to witness the landing of foreign enterprises in Vietnam market such as: Aeon Japan with the Aeon Mall Him Lam project in Sai Dong, Long Bien; the Lotte Group plans to open 60 locations (now have 9 locations). The domestic businesses are making plans to expand the distribution points not only in the city center but also the suburban areas such as Citimart has extended an additional 70 locations with scale from 1,000 to 2,000 m2 / location in the coming time…
2015 is also a year full of opportunities and challenges for the retail sector of Vietnam. From the date of November 1st 2015, Vietnam allows the establishment of 100% foreign investment capital retail companies under Vietnam’s commitments upon WTO accession. Besides, 2015 is year that ASEAN economic community (AEC) has officially been established, which allows the flows of resources, goods and human capital… to be freely moving in the area. Moreover, the TPP agreement with 12 participating countries that was signed in 2015. With this agreement, more than 10,000 kinds of goods from the member countries will be completely tariff eliminated. This will cause many difficulties and disadvantages for domestic goods but it is also the motivation for the production and distribution, enhance the competitiveness of enterprises in Vietnam.
According to the survey, the majority of retail brands that selected Vietnam in 2015 on par with Hong Kong, Singapore, even higher than Indonesia and Malaysia. Three big cities that are Hanoi, Ho Chi Minh City and Da Nang belong to the top 10 of the most vibrant retail markets in Asia – Pacific region due to its large and young population, after-tax income growth rapidly, quality retail networks that can attract multinational enterprises.
Vietnam currently has about 8,546 markets, 1 million small shops, 724 supermarkets, 132 trade centers and more than 400 convenience stores. Currently, the rural market with nearly 70% of the population but almost completely overlooked. As planned by 2020, Vietnam would grow up to 1,200 – 1,300 supermarket, 180 trade centers and 157 shopping centers. This suggests that the Vietnam retail market is very attractive for manufacturers, businesses and retailers to penetrate.

VIETNAM RETAILING 2015: FIERCE COMPETITION

rt
It is easy to see that 2015 was a very active year of Vietnam’s retail market, especially in merger and acquisition (M&A), association and joint venture activities… both in manufacturing and trading of retail businesses such as Kinh Do, Citimart, Metro and Nguyen Kim.
According to Euromonitor International – a market research firm, the retail sales in Asia – Pacific was about 4,000 billion USD in 2012 then the top 500 leading retailers accounted for 1,000 billion USD, representing for 24% of total sales. Vietnam retail market is considered attractive and high potential despite the world economy remains difficult.
In 2014, most of the domestic businesses tend to cluster and maintaining position, except some large enterprises like Co.opmart and Saigon Trading Corp (Satra). Even a few enterprises withdrew locations like Fivimart withdrew all locations in the South or Intimex, Hapro also withdrew some locations in the North. This was intended to reinforce the quality of the business and rebranding. Excepting for Satra and Co.opmart still have more new locations this year. Currently, Saigon Co.opmart has presented on 71 locations including 29 supermarkets in Ho Chi Minh City (HCMC) and expanded to 42 nationwide supermarkets, along with around 100 Co-op Food convenience stores.
According to the experts, the retail market of Vietnam is shifting from the model of mature market to postmodern market. The market is gradually concentrated and the number of companies decreased. Some large retailers failed, saturated real estate market. The model of hype supercenters dominates the retail industry in the postmodern period. At the end of the growth period will be an important change in the retail market for both retailers and suppliers.
Retailers seek future growth because there is no retail channel dominates the growth. Part of the development of hypermarkets in the mature phase will focus on the discount channel. According to the trend, the discount channel continues to grow in the postmodern period. Currently and in the coming time, retailers will frequently launch discount programs and deals to attract customers.
The factors that impact the global distribution market are the speed of technological change, change in demographics, buying behavior requires lasting communication connection and knowledge-based purchases. Therefore, retailers must take care of customers regularly with the best service.
As for foreign companies, except Walmart corporation (USA) is in the exploratory stage, most of the major corporations in the world have joined the Vietnam retail market such as Lotte, Big C, Metro, Parkson , Aeon… Foreign enterprises are entering Vietnam market by many different ways: joint venture, association, cooperative transfer location.
Vietnam retail market is very potential. Currently, Vietnam has more than 90 million people, in which the young population accounts for more than half. The average GDP of this country is approximately 2,000 USD / person. In the future, this figure will increase and that will be a prerequisite for the development of Vietnam retail industry, especially modern retail. According to statistics of the Ministry of Industry and Trade, the market share of modern retail in Vietnam makes up only 25% of total retail sales. The whole country has about 724 supermarkets and 132 shopping centers. Moreover, the number of truly convenience store, which is branded and operated in store chain, is just hundreds stores. Most supermarkets and shopping centers concentrated in major cities and urban areas. In rural areas and suburbs, they are virtually absent from the retail system, they are major distribute in installments. Therefore, the market share of modern retail market of Vietnam is still quite a lot.
However, this market will have fierce competition between domestic and foreign enterprises. Foreign investors are not only penetrating into Vietnam by the ways of joint ventures in the distribution chain right from production process. For example, C.P Company, which is belong to C.P Group (Thailand) is accounting for 50% market share of eggs, 30% market share of chicken, 7% market share of animal feed in Vietnam. Hence, foreign companies are holding a supply chain from production to distribution. Besides, foreign companies are mostly big enterprises that have advantages in capital and experiences. They have good strategies and that will be the biggest challenges for domestic businesses on the path to affirm its position.
2015 and the coming years, Vietnam retail market will continue to be active and witnessing fierce competition among enterprises, particularly between foreign and domestic firms. We will continue to witness the landing of foreign enterprises in Vietnam market such as: Aeon Japan with the Aeon Mall Him Lam project in Sai Dong, Long Bien; the Lotte Group plans to open 60 locations (now have 9 locations). The domestic businesses are making plans to expand the distribution points not only in the city center but also the suburban areas such as Citimart has extended an additional 70 locations with scale from 1,000 to 2,000 m2 / location in the coming time…
2015 is also a year full of opportunities and challenges for the retail sector of Vietnam. From the date of November 1st 2015, Vietnam allows the establishment of 100% foreign investment capital retail companies under Vietnam’s commitments upon WTO accession. Besides, 2015 is year that ASEAN economic community (AEC) has officially been established, which allows the flows of resources, goods and human capital… to be freely moving in the area. Moreover, the TPP agreement with 12 participating countries that was signed in 2015. With this agreement, more than 10,000 kinds of goods from the member countries will be completely tariff eliminated. This will cause many difficulties and disadvantages for domestic goods but it is also the motivation for the production and distribution, enhance the competitiveness of enterprises in Vietnam.
According to the survey, the majority of retail brands that selected Vietnam in 2015 on par with Hong Kong, Singapore, even higher than Indonesia and Malaysia. Three big cities that are Hanoi, Ho Chi Minh City and Da Nang belong to the top 10 of the most vibrant retail markets in Asia – Pacific region due to its large and young population, after-tax income growth rapidly, quality retail networks that can attract multinational enterprises.
Vietnam currently has about 8,546 markets, 1 million small shops, 724 supermarkets, 132 trade centers and more than 400 convenience stores. Currently, the rural market with nearly 70% of the population but almost completely overlooked. As planned by 2020, Vietnam would grow up to 1,200 – 1,300 supermarket, 180 trade centers and 157 shopping centers. This suggests that the Vietnam retail market is very attractive for manufacturers, businesses and retailers to penetrate.

Wednesday 13 April 2016

FOREIGN EXPERTS FELT “BREATHE EASY” WHEN LIVING IN VIETNAM

lv1
Vietnam ranked 21st in the economic ranking, but ranked 5th when talking about the saving ability of foreign experts.
According to the survey from HSBC. Most of foreign experts believe that Vietnam had a more comfortable life with less spending on housing costs (62%), travel (73%), clothing (68%), goods and necessities (62%), essential services like electricity, water, telephone (70%) and bills (77%).
Thus, experts are likely to save more (68%) while living in Vietnam.
More than half of the foreign experts (62%) said that in Vietnam they can afford to hire a maid and nanny, something that they cannot afford while living at home country, and can enjoy the luxury vacation (52%), compared with only 28% and 36% of global experts.
The survey from HSBC also showed that Vietnam ranked 22nd in the ranking on experience, but 2nd in the ability to make friends. More than half of the foreign experts (56%) find that they integrate quickly into life and culture of Vietnam, and the majority of foreign experts find it easy to make new friends in Vietnam (68%).
Stabilize the life in Vietnam is relatively easy, with 36% of the experts feel like home once or within six months after moving to Vietnam. Most of foreign experts also enjoy integrated into in Vietnam (61%), enjoy and cook Vietnamese foods (78%).
Vietnam ranked 31st in the ranking about family. Almost half of the foreign experts (43%) said that the cost of child care in Vietnam is less expensive than at home country, and most of foreign experts (74%) send their children to the international School.
Vietnam is developing very fast and owns a dynamic business environment. This is an attractive destination for entrepreneurs seeking start-up opportunity and new business projects.
As an emerging market, Vietnam brings foreign experts many challenges and chances to develop career. With significant attractions in terms of tourism, culture and people, Vietnam also brings foreign experts wonderful experiences along with ease of integration and stabilizes the life in Vietnam.

Tuesday 12 April 2016

GOOD RISK MANAGEMENT FOR ENTERPRISE – THE KEY TO SUCCESS

risk-management1
Risk is an inevitable factor in business operation activities, higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business if you want to make profit and create value to shareholders. However, in fact, there are a lot of businesses does not manage risk effectively and furthermore not fully understand about the risks that they are facing.
Risk can be defined broadly as any factors or events could drive business and production activities of the enterprise below forecasted. Specifically, the measures that are commonly used as capital risk, profit risk or cash flow risk, depending on the emphasis that are accounting balance sheet and statement of cash flows.
According to the Vietnam Ministry of Industry and Trade, in recent times, there are many corporate scams between Vietnam and foreign enterprises. In particular, the main behaviors are foreign companies purchase/sell goods or provide services for partners in Vietnam and the Vietnam partner fail to make payment.
Typically, a director has scammed 3 billion VND of foreign companies and he was arrested. Although his company does not have pepper but he still receives nearly 350,000 USD of the Egyptian company, then appropriated half. According to the investigation, a few years ago, Vinamex Co., Ltd signed contract with a Libya company in Egypt to sell 4 black pepper containers with price of 669,600 USD even though the Vinamex Company do not have condition to implement the contract and also do not have goods.
To obtain the money of partners, the Director of Vinamex forging multinational bills of lading, certificate of plant quarantine and then send to Lybia Company. The Lybia Company then transfer to Vinamex a deposit amount of 348,300 USD. After that, Vinamex’s director withdraws all money to pay for his company’s debt.
After months have been urging, the Vinamex Company buy a container of black pepper worth 174,150 USD and then send to Lybia Company. The remaining amount equivalent to 3 billion VND was appropriated by the Vinamex’s director. The Lybia Company has adopted Vietnam embassy in Egypt to submit the denunciation.
In fact, many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management. Improving risk management process will create a tight and effective control of the Board of Directors, on the other hand will help integrate the risk management process into every daily decision-making process.
Businesses do not improve the risk management process will be faced with a lot of different types of risks: financial losses serious, adverse effects on cash flows and the value of shares, as declining prestige with customers, employees and investors.
Businesses that do not improve the risk management process will have to face with a lot of different types of risks: serious financial losses, adversely affecting cash flows and the value of shares, decreasing prestige with customers, employees and investors.
In the period of global crisis had been predicted that almost bottomed out and started to show signs of recovery, although the recovery process can occur with different speed and characteristics depending on sector and location of the business, the fully preparation of business in all aspects including process and risk management strategy could helps business not falling into the passive and also have more possibilities to take advantage of growth opportunities after the recession.

GOOD RISK MANAGEMENT FOR ENTERPRISE – THE KEY TO SUCCESS

risk-management1
Risk is an inevitable factor in business operation activities, higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business if you want to make profit and create value to shareholders. However, in fact, there are a lot of businesses does not manage risk effectively and furthermore not fully understand about the risks that they are facing.
Risk can be defined broadly as any factors or events could drive business and production activities of the enterprise below forecasted. Specifically, the measures that are commonly used as capital risk, profit risk or cash flow risk, depending on the emphasis that are accounting balance sheet and statement of cash flows.
According to the Vietnam Ministry of Industry and Trade, in recent times, there are many corporate scams between Vietnam and foreign enterprises. In particular, the main behaviors are foreign companies purchase/sell goods or provide services for partners in Vietnam and the Vietnam partner fail to make payment.
Typically, a director has scammed 3 billion VND of foreign companies and he was arrested. Although his company does not have pepper but he still receives nearly 350,000 USD of the Egyptian company, then appropriated half. According to the investigation, a few years ago, Vinamex Co., Ltd signed contract with a Libya company in Egypt to sell 4 black pepper containers with price of 669,600 USD even though the Vinamex Company do not have condition to implement the contract and also do not have goods.
To obtain the money of partners, the Director of Vinamex forging multinational bills of lading, certificate of plant quarantine and then send to Lybia Company. The Lybia Company then transfer to Vinamex a deposit amount of 348,300 USD. After that, Vinamex’s director withdraws all money to pay for his company’s debt.
After months have been urging, the Vinamex Company buy a container of black pepper worth 174,150 USD and then send to Lybia Company. The remaining amount equivalent to 3 billion VND was appropriated by the Vinamex’s director. The Lybia Company has adopted Vietnam embassy in Egypt to submit the denunciation.
In fact, many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management. Improving risk management process will create a tight and effective control of the Board of Directors, on the other hand will help integrate the risk management process into every daily decision-making process.
Businesses do not improve the risk management process will be faced with a lot of different types of risks: financial losses serious, adverse effects on cash flows and the value of shares, as declining prestige with customers, employees and investors.
Businesses that do not improve the risk management process will have to face with a lot of different types of risks: serious financial losses, adversely affecting cash flows and the value of shares, decreasing prestige with customers, employees and investors.
In the period of global crisis had been predicted that almost bottomed out and started to show signs of recovery, although the recovery process can occur with different speed and characteristics depending on sector and location of the business, the fully preparation of business in all aspects including process and risk management strategy could helps business not falling into the passive and also have more possibilities to take advantage of growth opportunities after the recession.

Monday 11 April 2016

VIETNAM AND EUROPEAN UNION WILL ELIMINATE OVER 99% IMPORT TARIFFS ON EACH OTHER

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At a press conference on October 30th in Vietnam informed of important agreements between Vietnam and European Union (EU), Mr. Bruno Angelet – Ambassador, Head of Delegation of the European Union (EU) said that early August 2015, the EU and Vietnam has announced the conclusion of negotiations but the negotiation group continues to resolve the remaining technical issues, while improving documents.
Once completed, the Agreement must be approved by the National Assembly of Vietnam, the Council and the European Parliament. Accordingly, Vietnam and the EU will eliminate over 99% of import tariffs.
For the few remaining tariffs, both parties will grant each other tariff quota or tariff reduction. This can be seen as the highest level of commitment that Vietnam has achieved in the FTA has been signed so far.
In the investment sector, the commitments to ensure an open business and investment environment to help promote high quality investment flows of both the EU and other partners in Vietnam. Thus, Vietnam has the opportunity to become the connection for trade and investment activities between EU and other countries in the region.
In addition, the commitments related to investment, liberalization of trade, service, Government procurement and intellectual property protection… will also open up opportunities for both sides to approach each other’s markets and ensure balance overall benefit.
EU can become the best partner in the future of Vietnam because Vietnam is also becoming one of the most dynamic countries and have good relationship with EU in the region. EU can support Vietnam in many fields such as governance models and provide excellent services in the field of infrastructure, training and education, the judiciary and law, health, social insurance and sustainable energy.
ANT Consulting is here to assist you from the outset; providing intelligence, information, management or support and administrative services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Sunday 10 April 2016

ITALIAN BUSINESS EXPAND INVESTMENT IN BINH DUONG

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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.

Thursday 7 April 2016

VIETNAM: THE POTENTIAL DESTINATION FOR VENTURE CAPITALS

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If we see the business, the attention of Venture Capitals (VCs) and foreign investors are the indication then Vietnam is emerging as a potential environment for the startup operation.
Besides the investment funds that have been presented in Vietnam as IDG Ventures Vietnam, a number of new VCs have joined the Vietnam entrepreneurship ecosystem and are very optimistic about the ahead opportunities.
On August 2015, the Captii Ventures owned by Captii Corporation has invested a sum of 6 numbers to the startup OnOnPay phone recharge. This represents the first venture investment of Captii in Vietnam.
Factors attracting investors here are the demographic advantages and business models that can be replicated. According to Techlist.asia, the startup figure in Vietnam has risen to 1,400, bringing this country becomes the 3rdlargest startup ecosystem in Southeast Asia after Singapore and Indonesia.
With a population of 90 million people who are in the process of economic growth, young population structure, emerging middle class and the rate of Internet user is increasing rapidly, especially mobile phone, Vietnam is in the beginning phase of a very exciting cycle.
Moreover, Vietnam is a large, young and growing rapidly economy, the technology index such as the ratio of using the Internet and smart phone are in large-scale, the leading founder generation have achieved success and demonstrate the potential of the talent and market of Vietnam.
Compared to other Southeast Asian countries (Indonesia, Thailand, Malaysia, Singapore, Philippines and Vietnam), Vietnam has strong advantages in the available technique human resources, energy, resources and potential growth the market.
Moreover, the new policy on foreign investment has entered into force on July 1st 2015 with more freedom for foreigners to own real estate in Vietnam and simpler procedures for projects or portfolios.
In the 3 areas that Captii Ventures is focusing on that are market, digital media and apps for business, they will participate more actively in at least two areas that are market and apps for business.
Not only with the VCs, Vietnam startup is also attractive to other foreign companies such as Yello Mobile from South Korea, the company has invested in CleverAds advertising company and Websosanh – the price comparison site.
Garena, a Singapore’s internet company has invested Series B for Foody, startup locations that in the same month continued to receive Series C investment from Tiger Global Management – US venture capital fund.
Transcosmos, a software manufacturing company based in Tokyo, had previously acquired a 30% stake in Hotdeal e-commerce platform in a deal signed on August 2015.

Wednesday 6 April 2016

HOW VIETNAM REAL ESTATE SECTOR PERFORMED IN 2015?

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The the real estate industry in 2015 have beee influenced by foreign investors and easier access to credit source.
With the credit easing policies, foreigners are allowed to buy houses in Vietnam and the infrastructure development has been the driving force for the recovery of the real estate market in 2015. The real estate industry outlook in 2015 will come from foreign investors and the easier access to credit source. Then, the B and C class apartment segment with prices ranging from 50,000 USD/apartments with full infrastructure, near the metro will attract attention in 2015.
Credit easing policy and interest rates on deposits and loans are at their lowest in 3 years; therefore, this is a good time to invest. Moreover, changes in Circular 36 will help reducing the risk factors for real estate loans, thereby creating more room for credit loan and lending rates are at their lowest in 3 years will encourage real estate businesses continue to develop projects to serve the increasing demand. It is expected that low interest rates will make the cash flow moving into other investment channels such as real estate.
Foreigners now can own houses are also the catalyst for the real estate market in 2015. Currently with nearly 80,000 foreigners are working in Vietnam, the home owning is expected to be a catalyst for the real estate market to become more active in 2015.
In addition, the lending conditions for the 30,000 billion VND lending package will be simplified, thereby helping to speed up the disbursement of this package in 2015.
The year 2015 witnesses the return of speculators, private investors in the real estate market. Mainly the apartments in segment A and B are their targets when the price of those segment decreased by 20 -25% compared with the peak of the market.
Besides, the development of infrastructure is also the motivation for the growth of the real estate market. With the expectation that in 2015 the Government will maintain the spending of over 3 billion USD for infrastructure, construction and expansion of roads, railways, power grids…, that will actively support the development of real estate market. The most obvious evidence is the construction of Metro no.1 in 2014 has attracted more real estate projects on the path of the Metro line.
Some notably infrastructure projects in 2015:
+ Complete Nhat Tan Bridge: The Ring Road 2 connect with the Nhat Tan Bridge will help reducing the travel time around Hanoi as well as connecting to Noi Bai International Airport. This will be a positive landmark for real estate projects in the  northwest corridor of the capital.
+ Complete the Hanoi – Hai Phong highway: The 106 km long highway linking Hanoi and Hai Phong – the largest port city in Northern of Vietnam will help real estate projects in Long Bien and Gia Lam becomes more vibrant.
+ Complete the Ho Chi Minh City (HCMC) – Dau Giay highway and continue building the Ring Road 2 in HCMC will help the real estate projects in the Eastern of the city (District 2, 9, Thu Duc) becomes more attractive.
+ Construction of Ben Luc – Long Thanh highway: This is a part of Ring Road 3 that will connect Long An to Long Thanh International Airport in the future without having to go through the central districts of HCMC. The project is expected to help improving the real estate market in the Southern of HCMC.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn