FOREIGN EXPERTS FELT “BREATHE EASY” WHEN LIVING IN VIETNAM

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.

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Set-up Joint Stock Company in Vietnam

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.

Joint Stock Company

 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.

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Family Office Services

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.

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Why Japanese Companies will Increase Investment into Vietnam

When Japan sought to diversify the investment other than to China, Vietnam emerged as attractive destinations for international investors.

Within the last few years, companies doing business in China began diversifying its investment and reduce dependence on the China market. This is the result of increasing labor costs as well as the structural reforms taking place in China. In this context, Vietnam emerged as a potential destination for foreign companies which are looking for new investment opportunities.  Entering into Vietnam will open up open up a large domestic market at a geographic advantage location for Japanese companies.

In 2013, for the first time, China lost the top spot as a promising destination for Japanese investors. Japanese companies are now investing in Indonesia, India, Thailand and Vietnam. This does not mean that Japanese firms will withdraw from China, they are simply looking for new investment destinations.

Vietnam has increasingly become popular for Japanese companies making investment. The Japanese investment in Vietnam has increased rapidly, especially since the Treaty of the Economic Partnership Vietnam-Japan went into effect in 2009. The Japan’s largest investment are in transportation infrastructure transportation, electrical equipment manufacturing sector. Vietnam is one of the fourth largest motorcycle markets in the world, and therefore Japanese companies such as Honda or Yamaha are here to increase investment. The Japanese electronics company also raised the capital of investment, partly because Samsung has developed a mobile plant to produce a series of Galaxy smartphones. Panasonic is looking for business opportunities in the domestic electrical equipment and has seen Vietnam as a key market in the emerging countries. Teral, a leading Japanese industrial pumps and fans have just opened up its Vietnam office.  Canon has been investing in Vietnam for many years with success.  For the non-manufacturing sectors such as finance and insurance industry, capital investment has also increased significantly, for instance, Mizuho, Tokyo and Mitsubishi in banking, Dai-ichi Life in life insurance.

In addition, small and medium enterprises in Japan (SMEs) are looking for business opportunities in foreign countries due to increasing challenges they are facing in Japan. The domestic market has been shrinking due to aging population; larger companies that have contracts with the SME business are moving abroad, while competition with foreign companies in Japan has been increasing. After the global financial crisis of 2008, the Japanese companies have increased investment abroad to survive. Therefore, Vietnam should promote measures to adapt to small businesses from Japan.

In addition, both Vietnam and Japan are engaged in the process of negotiating Trans-Pacific Partnership (TPP). At the end, the TPP will help promote trade and investment, but it also leads to changes in the industrial structure and the domestic economy. It will be a challenge, especially for a developing country like Vietnam. In this context, Vietnam and Japan is an important partner of the other. Both countries will benefit from the closer economic relationship and cooperation.

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M&A Due Diligence and Execution in Vietnam

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.

M&A in Vietnam: Strong Flow from Thailand

Vietnamese Chains Attracting Foreign Funds

US Billionaire Mark Mobius Expanding Investment in Vietnam

Japan Increases Investment in Vietnam in Finance and Services

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…

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Is Apple About to Set-up Company in Vietnam?

In the August 2015 work plan of the Ho Chi Minh City People’s Committee, it has been recently revealed that a section to review the registration of a company named Apple Vietnam company limited. Is it the American multinational teconology company with its famous products i.e. Mac, Ipod, Iphone, Ipad, Apple watch…about to set-up company in Vietnam to promote and distribute its own products i.e. the upcoming Iphone 6s, and Iphone 6s plus?

According to the information from the official dealer of Apple in Vietnam, Apple has already had a representative in Vietnam and began contacting with agents in the country from early 2015. The current business activities of Apple with domestic partners are done through Apple Thailand. Therefore, Apple’s representative in Vietnam will help to smooth out this arrangement because of the better understanding the local market and no language barrier.

Although Apple has not had their representative office or official company in Vietnam but they have many authorized dealers to sell its products. Apple products like the iPhone 6 and iPhone 6 Plus have always led the top 10 selling phones in many domestic retail systems since its launching in late 2014. According to the statistic of IDC, in the first quarter of 2015, Apple ranked 2nd in value in the largest smart phone manufacturers in Vietnam; in the tablet market, Apple accounted for 16.6% of the market – ranked 2nd in the market – but accounted for 29.1%, the highest in terms of market value.

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How to Enter Financial Services Market in Vietnam

As the Vietnam economy continues to grow, financial services as well grows to keep up.  When most parts of the world were hit by global financial crisis in 2009, Vietnam was one of a few that enjoyed positive growth rate and HSBC in its Vietnam monitor issue volume 28 projected 7.2% growth in 2010.

The Vietnam financial market has been developing however still at immature stage.  The Vietnam stock market is one of the channel to raise capital for the development and it is getting more active, attracting investors from South East Astia.  There are more than one hundred securities companies founded to compete in the growing market in 2010.  Top ten companies control more than 50% of the market share in brokerage fee.  In the year 2008 and 2009, many companies have been suffering due to tough competition, poor management, bad market situation impacted by global financial crisis and lack of governance experience from Vietnam State Securities Commission.

According to World Trade Ornatization access commitments, the Vietnam securities company can be 100% owned by foreign firms by the year 2012.  The competition amongst players will be getting more fierce.  Japan is interested in acquiring Vietnam securities companies.

Financial services are typical products therefore owning some characteristics of its own kinds.  Consumer purchasing behaviour is greatly influenced by the type of financial product being purchased.  The emphasis of trust and having relationship, especially in the particular contracting contexts, are also of highly pertinent to the strategies of financial service providers (Beckett et al., 2000).  Corporate reputation dimensions associated with important variables encompassing of customer satisfaction, loyalty, trust, and word of mouth (Walsh et al., 2009) are also factors of considerations beside price, service quality, and relationships ( Bowman et al., 2000), convenience.

The study of how investors behave when it comes to decision of which securities companies to go with shall give insights into the buying behaviour of financial services in Vietnam and would add to the limited research in the area.

With rapid change and more sophisticated customers, it has become very important that financial institutions determine the factors which are pertinent to the customers’ selection process (Boyd et al., 1994) when considering entering Vietnam securities market.

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Family Office Services

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.

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The France, Taiwan Phone Companies Invest in Vietnam to Take Advantage of TPP?

The information that Vietnam has finished the TPP negotiation pushing many phone manufacturing companies like Archos (France), Compal (Taiwan) to promote their market expansion plan and investment in through setting up business in Vietnam.

The Archos phone company (France) and their distributor – Petrosetco (Vietnam) are recently launching 7 product lines in Vietnam market.

Mr. Frederic Balay – Senior Vice President and CEO in charge of North American of Archos has opined that Vietnam is large market which phone demand is constantly increasing every year. Along with that, while Vietnam is an official member of the TPP, the market will be extended to billions of people and 40% of global GDP, attractive offers on tariffs for intra-origin goods.

Mr. Frederic Balay also said that these product lines are designed by a team of engineers in France and factories in China of Archos are undertaking production. But he revealed that the company is making long-term plans in Vietnam market.

At the end of September, a major phone producer – Compal (Taiwan) also confirmed their decision to return to Vinh Phuc to continue investing in the plan to produce smart phone which was left unfinished at the end of 2007.

Mr. Vincent Lee, Deputy General Director of Compal factory in Vietnam said that in two recent months, Compal has urgently repaired factory system; installed equipment, machinery; worked with a number of localities inside and outside of the province for employment and preparing to welcome the world’s top customers to visit exploring opportunities for investment and cooperation in smart phone manufacturer in Vinh Phuc.

Vinh Phuc leader suggested that Compal should shorten the negotiation with partners, and soon to announce the list of products to be produced, as the basis from now until the end of 2015.  The province can adjust the investment certificate has signed and complete the procedures, mechanisms and policies to support the project in accordance with the law of Vietnam.

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Is Apple About to Set-up Company in Vietnam?

In the August 2015 work plan of the Ho Chi Minh City People’s Committee, it has been recently revealed that a section to review the registration of a company named Apple Vietnam company limited. Is it the American multinational teconology company with its famous products i.e. Mac, Ipod, Iphone, Ipad, Apple watch…about to set-up company in Vietnam to promote and distribute its own products i.e. the upcoming Iphone 6s, and Iphone 6s plus?

According to the information from the official dealer of Apple in Vietnam, Apple has already had a representative in Vietnam and began contacting with agents in the country from early 2015. The current business activities of Apple with domestic partners are done through Apple Thailand. Therefore, Apple’s representative in Vietnam will help to smooth out this arrangement because of the better understanding the local market and no language barrier.

Although Apple has not had their representative office or official company in Vietnam but they have many authorized dealers to sell its products. Apple products like the iPhone 6 and iPhone 6 Plus have always led the top 10 selling phones in many domestic retail systems since its launching in late 2014. According to the statistic of IDC, in the first quarter of 2015, Apple ranked 2nd in value in the largest smart phone manufacturers in Vietnam; in the tablet market, Apple accounted for 16.6% of the market – ranked 2nd in the market – but accounted for 29.1%, the highest in terms of market value.

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Risk Management Necessity in Vietnam?

As Vietnam further integrates into the world business, more investors are eyeing Vietnam for investment. As part of investment due diligence, risk management are always well considered before foreign investors decide to do business with Vietnam partners.

In any parts of the world inluding Vietnam, 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 in order to make profit and create value to shareholders in import export transaction, investment, or merger and acquisition activities in Vietnam.

However, in our daily consulting practice, we have seen a number of businesses whom do not manage risk effectively and furthermore not fully understand about the risks that they are facing.

Typical risks in developing countries like Vietnam are political risks, policy risks, regulations risks, credit risks, bribery and corruptions, and organized crimes.

On daily transaction in trading, according to Vietnam Ministry of Industry and Trade, there are situations a number of corporate scams between Vietnam and foreign enterprises are reported. In particular, foreign companies sell goods or provide services to partners in Vietnam and in return the Vietnam partner fail to pay.

On a larger scale in FDI through setting up business or M&A, 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.

Many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management especially understading business partners through corporate intelligence investigation, background studying, adverse media search through professional consultants in Vietnam whom understand languages, cultures, legal environment and busienss practices. Further searches could help foreign investors to understand the company itself, owners, shareholders, members of board of directors of partner companies whom make daily decisions of the business.

In the period that global crisis has been predicted that almost bottom out and start 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.

Recently, with the impact of high inflation rate and economic recession caused by the global financial crisis, enterprises are increasingly concern about risk management activities. Many experts believe that an effective and well organized risk management system will help businesses withstand and overcome fluctuations.

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Vietnam Is a Land of Potential Opportunities

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 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:

• Market Entry
• Tax Advice
• Legal Advice
• Outsourcing Services

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

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Vietnam: The Potential Destination for Venture Capitals

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 3rd largest 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.

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:

• Market Entry
• Tax Advice
• Legal Advice
• Outsourcing Services

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

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Vietnam Reduce Visa Granting Fee to Attract Investment

Vietnam visa fees have been revised to make easy for the foreigners entering Vietnam.  This is expected to increase tourists and facilitate the investment.

The Ministry of Finance has issued Circular 157 regulate the fees for granting passport, visa and papers on entry, exit, transit and residence in Vietnam.

Accordingly, from the date of November 23rd 2015, the new fees related to the entry of foreigners, overseas Vietnamese are significantly reduced.

Specifically, the visa fees for foreigners and overseas Vietnamese are reduced as follow: visa valid once fell from 45 USD to 25 USD; visa valid up to 3 months decreased from 95 USD to 50 USD, visa valid more than 3 months to 6 months and visa valid over 6 months to 1 year stays at 95 USD and 135 USD.

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Benefits of Setting up Business in Hanoi

Benefits of Setting up Business in Da Nang

Benefits of Setting up Business in Ho Chi Minh City

Assistance in Setting up Business in Vietnam

M&A Services in Vietnam

In addition, the fee rates for granting visa valid from 1 year to 2 years are 145 USD; visa valid over 2 years to 5 years have the rate of 155 USD.

The reduction of the visa fee rates for foreigners to Vietnam, including tourists to conform to the new regulations of the Law on entry, exit, transit and residence of foreigners in Vietnam, at the same time, encouraging tourism development.

At the same time, also for the purpose of encouraging tourism, the fee rates for visa valid several times, visa valid for no more than 3 months for foreigners and overseas Vietnamese in the conference, workshop or travel has been reduced from 95 USD to 50 USD.

In addition, for tourists traveling to Vietnam and then go to Laos, Cambodia… then return to Vietnam to exit the country in less than 30 days, the 5 USD fee level is applied instead of the current 45 USD.

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Why choose Vietnam and Japan to Invest?

When considering where to invest in Asia there are many options out there. We can suggest two countries in this vast continent which represent great setup opportunities for any global entrepreneur - Japan and Vietnam.

Why invest in Japan?

Japan boasts easy and transparent company setup, with minimal red tape. While for example in many South-East Asian countries local partnership is required to setup a new company, in Japan foreign entrepreneurs may own 100% of a Japanese company with no minimum investment requirement.

The optimal business entity type is The Godo Kaisha . This vehicle is the most common corporate type used for Japanese subsidiaries, when the proposed business does not require a complex capital structure. Alternatively, trading businesses in Japanese free zones can enjoy multiple business setup incentives, including:

• No custom duties on imports and exports;
• Flexible labour laws and
• Faster business incorporation timeliness.

Japan business setup still requires appointing of a local resident director, but this can be easily negated via expert nominee director services.

Why invest in Vietnam?

While Japan is a safe bet for reaching large, profitable clientele, the operational costs of this mature market can be very high. Vietnam, these days, is more cost-efficient than most Asian countries. In 2014 multiple business setups moved their operations in Vietnam, rather than China due to lower business costs.

Vietnam has slower setup procedures which may take up to two months due to significant Government red tape. However, local regulations allow 100% foreign-owned business setups which is the preferred option for almost all foreign investors.

Conveniently, there are multiple advantages to setting up a Vietnamese business, including:

• Only one director of any nationality is required;
• Only one shareholder of any nationality is required;
• Only one US$1 is the required issued share capital;
• There is no travel to Vietnam required;
• Vietnam boasts the lowest labour costs in the region;
• Being part of ASEAN secure no import duties with multiple countries in the region.

Each city in Vietnam that have difference benifits to sett up business such as in Ho Chi Minh city, Ha Noi or Da Nang.

Conclusion

Both Japan and Vietnam offer significant advantages to setting up new business in their territories. From reputable, stable markets such as Japan to cost-efficient, growing solution as Vietnam, foreign entrepreneurs can choose their optimal business setup jurisdiction in Asia!

via Lowtax

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