The UK Entreprises Encouraged to Explore the Potential Market in Vietnam

In addition to improvement of the business environment in Vietnam, Deputy Foreign Minister Hugo Swire also affirmed that Vietnam and UK will plan to raise awareness for the UK investors about potential business market in Vietnam.

Talking to the press after the Vietnam – UK 4th annual strategic dialogue in Hanoi today (February 27th), Mr. Hugo Swire said, one of the highlights of the conference is how to strengthen bilateral trade relations.  According to him, a number of the businesses of the UK have succeeded in Vietnam but the UK wants more and more enterprises to be successful in Vietnam in the future.  To do this, the improvement in business environment is one of the problems the UK stressed many times before. Mr. Hugo Swire said that transparency and openness of Vietnam are still big challenges affecting the decision for UK enterprises to invest in Vietnam.  Besides, another fact acknowledged by Mr Hugo Swire is that many businesses in the UK have not understood the potential markets in Vietnam.

Therefore, during the dialogue taken place today, he said, Vietnam and the UK have discussed a program to raise awareness of UK businesses in London to Vietnam market.  According to Mr Hugo Swire, the completion of free trade agreement between Vietnam and the EU will open up many prospects to attract British investors to Set-up company in Vietnam.

“These problems, if be solved, they will bring to resonance as well as open new horizons for UK businesses to enter into Vietnam,” said Deputy Foreign Minister.

Reviewing more specific about the Vietnam market, he also said, high-end consumer goods is one of the prioritized potentials for businesses of both countries.

According to him, many designers in the UK now want to introduce products to Vietnam and this may be a priority in the coming time. According to him, four other areas in which the Uk interested are education, energy, especially nuclear energy, health, transportation and infrastructure.

According to Mr Hugo Swire, a detailed plan to strengthen relations and cooperation between the two countries on these issues will be discussed in more detail at the annual meeting of the Joint Committee on Economic Cooperation in the future.

Also on bilateral cooperation, Deputy Foreign Minister said the capital of official development assistance (ODA) will end in 2016 but the UK is committed to continue the support for Vietnam by other methods.

One of the forms of assistance is Newton fund currently being deployed in Vietnam to invest in the fields of science and technology, particularly creative ideas, innovation.

According to Hugo Swire, the UK and Vietnam are still under discussion for formal cooperation framework to help the Newton fund operating efficiently. However, representatives from the UK said, one of the activities of the program is the exchange of scientists between the two countries , thus supporting the implementation of the research to develop economics and society.

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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Japan Increases Investment in Vietnam in Finance and Services

JAPANESE INVESTORS HAVE SWITCHED FROM SETTING UP BUSINESS IN VIETNAM IN MANUFACTURING INTO FINANCIAL INVESTMENT, RETAIL.

Japan Increases Investment in Vietnam in Finance and Services

Til end of Jan 2015, Japan is the second largest foreign investors in Vietnam in direct investment form with 2,494 projects, and total registered capital of nearly 36.9 billion USD however there have been changes in the structure of the investment capital in Vietnam.  In particular, the manufacturing sector once accounted for the largest proportion of investment in Vietnam drops 30% from nearly $ 1.2 billion in 2013 to nearly 830 million 2014.  In fact, the projects in the manufacturing sector often require huge capital during a long-term investment.  In the context that Japan’s economy faces difficulties as well as the global economy is not bright, the reduction of investment in the manufacturing sector is also understandable.

In indirect foreign investment in Vietnam, Japan ranks sixth in the list of countries conducting M&A in Vietnam with more focus on small or medium but long-term and potential large area.  The field of production only accounts for 10% of the total value.

However, the recent survey has shown there is a new wave of Japanese investment in other sectors such as construction, real estate, transportation or financial investment.  The report of The Japan External Trade Organization, or JETRO, a Japanese government-related organization that promotes trade and investment reflects the proportion of new investment projects in the construction, real estate increased from 3% in 2013 to 6% in 2014, while the capital had risen to 13%, compared with 2 % of a year ago.

In real estate sector, Tokyu Corporation has joined invested with Becamex IDC to develop Tokyu Binh Duong Garden City in an area of ​​over 110 hectares with a total investment of about USD 1.2 billion. Daibiru Corporation also acquired the office building Corner Stone in Hanoi with value of the deal at USD 60.1 mil.  These are example that Japanese investors recognizing the potential development of Vietnam’s changes in real estate market as the land ownership have been approved and effective from Jul 2015. As reported, M&A deals in real estate in 2014 accounted for 61% of M&A deals.

In financial investment, in 2014, Daiwa PI Partners and Vietnam Opportunity Fund of Vina Capital invested USD 45 million in the International Dairy Joint Stock Company, making foreign ownership increase to 70%.

In retail sector, Vietnam is also considered as an attractive market with growing mid-income consumer group. The largest retailer Aeon Japan after years of market research has poured more than USD 500 million for two commercial centers were opened in Ho Chi Minh City, Binh Duong and a new center in Long Bien (Hanoi).  The group also plans to expand through acquiring shares of two local supermarket being Fivimart and Citimart.

It appears that Japan is holding strong among the leading investors in Vietnam, together with Korea and Singapore.

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 is Increasingly Attracting Capital from the US

VIETNAM IS TAKING EVERY OPPORTUNITY TO GROW ITS ECONOMY AND IMPROVE THE LIVING STANDARD. THIS IS NOT A VAIN DREAM SINCE VIETNAM HAS YOUNG AND PLENTIFUL WORK FORCE. THAT IS WHY MULTINATIONAL COMPANIES WISH TO COME AND SET UP COMPANY IN VIETNAM.

• Japan Increases Investment in Vietnam in Finance and Services
• Why Japan Investors Invest in Vietnam

Vietnam is increasingly attracting capital from the US

The year 2015 marked the 40 years since the war end and the 20 years of normalized the relationship between Vietnam and the US. Vietnam began the process of innovation since 1986 but not until 1995,foreign investment in Vietnam began to flow in when the Government established formal diplomatic relations with the United States and joined the National Association of the South East Asia (ASEAN).

In recent years, foreign investment in Vietnam has accelerated. The Korean company is particularly excited with this market. Samsung Electronics is operating and building three plants at three locations – Ho Chi Minh City, Thai Nguyen and Bac Ninh. In total, this giant electronic corporation has poured more than USD 10 billion in Vietnam.

Vietnam is also expected soon to welcome a “wave” of investment from the US. The Procter & Gamble (P&G) – a consumer goods manufacturer is building a factory in Binh Duong with the cost of 100 million USD. The plant will produce Gillette razors.

Since starting operations in Vietnam in 2008, Intel is also pouring money into this market. This semiconductor giant is planning to manufacture in Vietnam the most of advanced processor for personal computers in the future.

Moreover, other big names come from the US that are expanding operations in Vietnam are Starbucks and McDonald’s. They opened their first store here in December 2013 and February 2014.

There are a number of factors that make foreign investment in Vietnam explode. One of the most important reasons is the low labor cost. Labor cost hikes in China are the reason why many multinational manufacturers turned their attention to Vietnam where the cost is 50% cheaper. Besides, the purchasing power of Vietnam consumer is increasing, inflation has been curbed and many easing regulations to boost growth are also the reason why continuous investments are poured tin..

However, the biggest attraction for most foreign investors is the Trans-Pacific Partnership agreement (TPP) about free trade in which Vietnam is one of 12 countries that participate in negotiations. In mid of this year, General Secretary of Vietnam, Mr. Nguyen Phu Trong will visit the United States. TPP agreement will be the main topic of the conversation with the US officials. If the two countries can reach an agreement, the US will become even more important partner of Vietnam’s economy in the future.

In a press conference in HCM city in January 2015, US Ambassador in Vietnam – Mr. Ted Osius was upbeat about the impact of the TPP to Vietnam economy and the US investment here. TPP agreement “will allow the US to become the number one investor and trading partner of Vietnam” he said.

In about 4.5 million Vietnamese living overseas, about 2 million are living in the US. In particular, many people have made a name in the business world. They are Mr. Henry Nguyen – who brought McDonald’s to Vietnam and Mr. David Thai – founder of Highlands coffee chain.

According to the Ministry of Foreign Affairs of Vietnam, approximately 180,000 companies in the United States are owned by Vietnamese, achieved a total revenue of 20 billion USD. Strengthening ties between the two countries could stimulate greater cash flow stream across the Pacific.

The Ministry of Planning and Investment of Vietnam is estimated to spend 500 billion USD in over 10 years to develop the infrastructure necessary for sustainable growth. However, Vietnam can only able to meet 40% of the above figure, through the Government budget, ODA and private capitals.

That is why the Government wants to attract FDI. The Vietnam Government has set a target to create an industrial economy by 2020. Six priority areas are agriculture, forestry and fisheries processing, agricultural machinery, electronics, shipbuilding, environmental and energy saving, automobile production.

The transition from growth based on FDI into industrial-based growth can be rather difficult. However, Vietnam has shown it is serious and is still on track.

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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Lawyer Position

ANT Consulting in Hanoi recruitment

We are currently hiring lawyers for legal practice in our office.

Requirements:

• LLB degree/Lawyer certificate;
• 3 – 5 years  experience in law firms;
• Experience in investment, contract, labour, dispute resolution;
• Represent clients, and act on behalf of clients on assigned tasks;
• Actively develop client relationship;
• Frequently update legal document;
• English capability (speaking, reading, writting)

Interested candidates to send application with pictures to email hr@antconsult.vn

We will contact suitable candidates.

About ANT Consulting:

ANT Consulting assists the clients from the outset; providing intelligence, information, management or support, corporate, secretarial, and administrative services that assist market entrance, and ensure efficient business start-up operation. We strive to save cost by guiding client towards economical solutions that comply with local legislation and procedures. We support the client through early logistic solutions and carry through as the client’s 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.

Our services are as following:

Market Entry

Tax Advice

Legal Advice

Outsourcing Services

ANT Consulting was founded by experienced and internationally trained professionals in Vietnam market entry services.  We are different by combining the strength of business acumen with legal experience and the understanding of local cultures to assist clients deliver the right results.  The services could be tailored to meet sophisticated clients’ requirements.  We strive for integrity, professionalism, accountability and long-term relationship. We could be reached at email: ant@antconsult.vn

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Vietnam Personal Income Tax Laws Foreigners Should Know

AS THE DEADLINE FOR DECLARING PERSONAL INCOME TAX (PIT) IS APPROACHING, WE ARE REVIEWING SOME TAX LAWS IN VIETNAM THAT FOREIGNERS WORKING AND EARNING IN VIETNAM SHOULD KNOW AND COMPLY.

Law No. 71/2014/QH13 dated 26 November 2014 issued by Vietnam National Assembly amending five tax laws including Law on Personal Income Tax (“PIT”) and Law on Tax Administration provides with regulations on PIT finalization.

Vietnamese Government further issued a number of regulations on tax declaration, payment and finalization, as follows:
1. Decree No. 91/2014/ND-CP dated 1 October 2014, of Government, amending Decree No. 65/2013/ND-CP and Decree No. 83/2013/ND-CP of guidance on the Law on Tax Administration (“Decree 91”). Decree 91 has complemented several exemptions from PIT finalization and comes into effect from 15 November 2014.
2. Circular No. 119/2014/TT-BTC dated 25 August 2014, of the Ministry of Finance, amending and supplementing a number of tax circulars in order to simplify tax formalities (“Circular 119”). Circular 119 has supplemented regulations on PIT obligations of any individual who is a citizen of the country and/or territory entered into an agreement on preventing double taxation with Vietnam.
3. Circular No. 128/2014/TT-BTC dated 5 September 2014, of the Ministry of Finance, guiding the reduction of personal income tax for individuals working in economic zones and border-gate (“Circular 128”). Circular 128 broadens the subject of tax deduction and comes into effect from 20 October 2014.
4. Circular No. 151/2014/TT-BTC dated 1 October 2014, of the Ministry of Finance, guiding Decree 91/2014/ND-CP on various aspects of PIT finalization, providing detail subjects which are not required to finalize PIT.

Tax resident in Vietnam should note that 2014 Personal Income Tax finalization shall be made no later than 31 March 2015.

About ANT Consulting 

We assist with Tax advice and related tax services in Vietnam to clients in various industries including financial services, trading, distribution and IT sectors on Corporate Income Tax, Personal Income Tax, Value Added Tax, Withholding Tax and update on relevant tax regulations.

We could be reached via email: ant@antconsult.vn or office tel: +848 35202779.

Let ANT Consulting helps your business in Vietnam.

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