US Investors Have Poured 1.1 Billion USD into Ho Tram Strip Project

Asian Coast Development Ltd is one of the large US investor who come and set up company in Vietnam.

Ho Tram Project Company (HTP) is a wholly foreign-owned subsidiary of Asian Coast Development Ltd, with more than 1 billion USD of committed capital deployed, which is the largest US private company investing in Vietnam. Moreover, they are also the first company to register for Vietnamese to play casino.

According to HTP – the investor of the 4-billion-dollar-super-project named “Ho Tram Strip”, the Company has poured 1.1 billion USD in this project and they has just announced to continue to fund the phase 3 includes apartment tower, condotel and villa.

Located on the north side of The Grand Ho Tram Strip resort, the 12-story Kahuna Ho Tram Strip project has a total of 244 rooms. It consists of 164 one or two-bedroom apartments, 9 penthouse apartments and 44 luxury villas located on the beach with area of 218 to 223 square meters.

According to the developer, this project when completed will contribute to the diversification of facilities and realize the goal of turning Ho Tram into the entertainment capital of Vietnam. In addition, HTP has developed the Gallery Villa apartment project at the nearby The Bluffs golf course. The 2nd hotel tower with 559 rooms named “The Beach Club” is now rushing to complete to welcome its first guests in early 2018. Furthermore, other service facilities such as water park, outdoor theater and private international airport are also underway.

It is known that the price of condotel apartment in Ho Tram is from 2 billion VND (equivalent to about 88,800 USD), villa is priced from 8 billion VND (about 350,000 USD). The project was designed by leading architectural firm Korn Architects and is due to commence in quarter 4 of 2017.

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Vietnam Technology Startup Attracts Foreign Enterprises

Technology startup in Vietnam is increasingly attractive. Many foreign enterprises are interested in this area and showing their desire to set up business in Vietnam.

According to Mr Mitchell Pham, president of the New Zealand Technology Association (NZTech) – who is known to be the 1st native of Vietnam elected to become the chairman of NZTech, representing for over 400 technology enterprises New Zealand: “All trip participants were impressed with the development of science and technology in Vietnam. We are looking for specific opportunities for cooperation with Vietnam-tech enterprise”.

More information about the members of the delegation, Mr Mitchell Pham said that back to Vietnam this time, accompanied him are 6 young leaders of technology enterprises in New Zealand with a desire to learn and exchange with technology businesses in Vietnam, in order to create connection for long-term investment goals.

In terms of the favorable conditions, according to Mr Mitchell Pham, trade relations between New Zealand and Vietnam have the fastest growth rate in Southeast Asia with 120% in the period 2010 – 2015. Two-way trade of the two countries in 2015 has reached 1 billion USD.

Moreover, Vietnam is known as the country with the booming information technology market and the government is also trying to create more incentives for this sector. Meanwhile, technology businesses in New Zealand have experiences and large operating network, certainly the cooperation and investment in Vietnam will be intensified in the coming period.

According Chicilon Media, Vietnam technology market, especially Ho Chi Minh City is developing extremely powerful. Consumers is having trend to access to communication products and services via smartphones instead of traditional media such as TV, poster… Hence, this Company has strengthened their strategy focusing on channels to access information over the phone and access to a diverse range of partners such as the startup.

In parallel, the growth of mobile devices will continue in the coming years. Therefore, the approach to the users of mobile devices – who are moving to the final stage of the shopping journey and going to buy the product – becomes extremely important. Currently, marketing on mobile devices is evaluated as a simple marketing channels, rapid deployment and easy to access to customers.

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US Investors Continue Pouring Capital into Vietnam

Vietnam has become an attractive destination for US investors, up to now, the United States ranks 9th among countries and territories set up company in Vietnam with foreign direct investment.

Dow Chemical, Coca-Cola, Uber… are well-known US companies that deploying expansion investment projects in Vietnam. In addition, such names as Exxon Mobil, Cargill, General Electric, Johnson and Johnson, Pfizer… have become familiar, not only because of the huge capital brought into Vietnam, but also help to increase production capacity, contributing to Vietnam’s export growth.

Presently, thanks to the good relationship between the two countries, the investment and business environment in Vietnam has been improved. Many US businesses have signed large contracts with Vietnamese enterprises, concentrating on the fields such as oil and gas, information technology, animal feed and electronics.

According to information from the American Chamber of Commerce in Vietnam (AmCham), many US businesses are working with the authorities to expand their projects in Vietnam.

Meanwhile, the big names that have long presence in Vietnam also urgently deploy expansion plans. Cargill Vietnam Co., Ltd is expanding its operations in Vietnam, in addition to the successful field of animal feed production. It is expected that by the end of this year, Cargill will put into operation a 10 million USD warehouse at Phu My port in Ba Ria – Vung Tau province.

Cargill also plans to work with the Ministry of Transport on investment in the northern port project to expand its range of operations in many investment sectors in Vietnam.

Dow Chemical, a large US chemical company, after more than 20 years of operation in Vietnam, the company is intending to expand its operations in 2017. Dow Chemical is cooperating with many companies in Vietnam in the fields of agricultural chemicals, biotechnology and services. Furthermore, with long-term investment commitments, in addition to raising capital, Dow Chemical is ready to assist Vietnam in developing a national list of chemicals for research and development.

Statistics show that, up to May 2017, US businesses have invested in 834 projects in Vietnam, with total registered capital of 10.2 billion USD, ranked 9/116 countries and territories that have investment projects in Vietnam.

Moreover, according to an AmCham survey of 100 US companies in Vietnam, 72% of respondents said that Vietnam’s investment environment was improving, much better than Myanmar, Malaysia, Thailand and Brunei.

US investment capital flows into Vietnam are no longer tied up in some areas of high profitability as before. Presently, some conditional business areas such as casino, entertainment… are expected to attract more capital from US businesses.

For example, Time Warner Inc., the world’s leading media and entertainment company, is also looking for direct investment opportunities in Vietnam.

So far, most of the key businesses in Vietnam are having the presence of major US investors, typically oil and gas sector with famous names such as Exxon Mobil and Chevron; Boeing, ADC-HAS Airport in the field of aviation; Information technology with Microsoft, Intel, Apple, HP; Electrical appliances with General Electric, General Atlantis and AES…

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Jabil Expands Investment in Vietnam

Jabil Circuit, Inc has just broke ground to build a new factory in Saigon Hi-Tech Park (SHTP), realizing the plan to expand investment in Vietnam.

The event marked the expansion of Jabil Group’s operation in Vietnam, with total factory area of 38,369 square meters. The factory is scheduled to be completed by the end of 2017. The new facility will provide additional production and warehousing spaces to meet future large-scale manufacturing activities for products such as computer, storage, networking equipment, telecommunications, automation, digital housing, mobility, sale equipment, printing, industry and energy.

This expansion also marks Jabil’s a decade of development in Vietnam and a stepping stone for the future growth of the Group.

Jabil started operations at SHTP in September 2007, specializing in the manufacture of electronics and telecommunications equipment with an initial investment of only 30 million USD. However, in 2011, Jabil decided to raise capital to 100 million USD. And in 2015, Jabil once again announced the expansion of investment in Vietnam. According to the signed memorandum, Jabil plans to invest an additional 500 million USD to expand production in Vietnam with a facility of more than 93,000 square meters.

Currently, Jabil Vietnam employs around 4,500 people and aims to create over 3,000 new jobs for the province in the next five years. In addition, Jabil also plans to develop high quality human resources in Vietnam for future leadership positions through training and development opportunities.

Jabil is a product solutions company that provides electronic technology solutions including design, manufacturing and comprehensive manufacturing management for electronics and technology companies around the world. Providing complete supply chain management from facilities in 28 countries, Jabil offers comprehensive and focused solutions for customers in a variety of industries. In Vietnam, Jabil specializes in providing large-scale product solutions for sectors as industry, power, networking and telecommunications equipment, sales and printing equipment.

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Hong Kong Investors Explore Vietnam Infrastructure Projects

Hong Kong investors are promoting investment in southern provinces in the areas such as infrastructure investment, waste water treatment, waste and also learn about set up company in Vietnam.

Recently, about 40 Hong Kong investors and experts in investment and infrastructure development sectors have visited Ho Chi Minh City. Sharing the purpose of this business trip, Mr Vincent HS Lo – Chairman of the Hong Kong Trade Development Council said that these investors are people who have a lot of experiences in the financial, consulting, architecture, energy, water and waste treatment, engineering and construction, law and accounting, transportation sectors…

Also according to Mr Vincent HS Lo, investors and businesses in Hong Kong are very interested in Vietnam infrastructure projects, especially the system of railway, road, airport and seaport.

Previously, during meetings with representatives of the Ministry of Transport in Hanoi, representatives of Hong Kong investors and businesses also expressed their interest in the North-South Expressway Project with a length of more than 1,300 km. A Hong Kong representative said that this project would help develop the strengths of a gateway to attract investment in large projects.

According to Hong Kong businesses, in addition to transport infrastructure, they are also interested in large-scale real estate projects in Vietnam. Mr Johnson Choi, Managing Director of Sunwah Group said that the company had many large investment projects in Vietnam, notably real estate projects. According to Mr Choi, among countries in Asia, Vietnam is considered as a potential country for real estate. Therefore, not only investing in projects in HCMC, Hong Kong businesses also pay attention to projects in Hanoi and the Central region.

According to the Ministry of Planning and Investment, as of the end of the first quarter of 2017, Hong Kong is the sixth largest investor in Vietnam with more than 1,200 projects and a total registered capital of more than 17.57 billion USD.

Hong Kong’s licensed projects in Vietnam are quickly implemented. For example, the project of Worldon Vietnam Co., Ltd in Dong Nam Industrial Zone (HCMC), after being licensed to increase capital by 140 million USD in 2016, has nearly completed the Fashion Design and Production Center for high quality knitwear.

Or project of Nam Phuong Textile Joint Venture Co., Ltd., with registered capital of 120 million USD in Viet Huong 2 Industrial Zone (Binh Duong), has made new moves in the project implementation after starting work at the end of 2014. The project is constructed on an area of 12 hectares, operating in the field of weaving fabric, phase I has capacity of 36 million meters of cloth per year, mainly for export…

In 2016, Vietnam is Hong Kong’s largest export market in ASEAN with a total export turnover of 9.25 billion USD. In addition, Vietnam is Hong Kong’s third largest trading partner in the ASEAN region with a total bilateral trade reached 16.2 billion USD.

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Quang Binh Is Selected by AT Capital for Its Renewable Energy Project

That is the information released by representatives of the Orange Renewable Company (Singapore), under AT Capital Corporation at a meeting with Quang Binh People’s Committee Chairman Nguyen Huu Hoai on May 24th.

According to representatives of Orange Renewable Company, by studying the data on natural conditions as well as investment policy in Quang Binh, the Company found that this locality is very suitable for investing in renewable energy projects of AT Capital Corporation, therefore, the Corporation wishes to carry out renewable energy projects in the province.

In response to Orange Renewable Company, Chairman of Quang Binh Provincial People’s Committee Nguyen Huu Hoai welcomed and highly appreciated that AT Capital has paid much attention to investment in renewable h. Moreover, Mr Hoai also pledged to pay attention, support and create the most favorable conditions for investors in the process of research and implementation projects. He also assigned Department of Industry and Trade to coordinated with the Department of Planning and Investment to guide AT Capital’s experts to conduct field surveys and prepare related procedures.

Orange Renewable Company is headquartered in Singapore and is funded by AT Capital, one of India’s leading renewable energy developers, with a total portfolio of renewable energy projects with capacity of up to 758 MW including 191 MW of solar power, 567 MW of wind power…

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Thailand’s FDI into Vietnam Reached 8.13 billion USD

By the end of March 2017, Thai investors had invested in 458 projects with a total registered investment capital of 8.13 billion USD, standing at the 10th position out of 115 countries and territories investing into Vietnam.

With the determination of the two Governments and the proactive of businesses, the economic cooperation between Vietnam and Thailand will grow strongly and reach the target of 20 billion USD in bilateral trade by 2020. Vietnam-Thailand trade relation has grown by more than 40% during the past five years. Specially in 2016, the growth rate continues to reach 10% with total turnover of nearly 13 billion USD. In the coming years, the two countries’ trade will increase as the two countries move towards the implementation of the ASEAN Free Trade Agreement and other general agreements.

On the Vietnamese side, as of January 1st 2015, Vietnam has cut its tariffs by 0% on more than 8,600 tariff lines. The remaining 669 tariff lines will be reduced to 0% by 2018. On the Thai side, currently more than 9,500 tariff lines under the tariff reduction schedule of the ATIGA have been fully abolished since 2012. In that context, the two sides should organize activities to promote trade and investment; continue to encourage Thai businesses to invest in Vietnam, support Vietnamese businesses to expand their business to Thai market, contributing to balance the trade balance.

In fact, Vietnam is Thailand’s second largest trading partner in ASEAN and Thailand is the largest trading partner of Vietnam. The two countries are located on the mainland with convenient transportation. The two countries also have open policies, implementing many measures to reduce barriers, facilitate the flow of goods.

Not only a major trading partner, Thailand is also one of the countries having cooperative investment with Vietnam very early, right after Vietnam implement the policy to open and attract foreign investment. In the past few years, Thai businesses have made specific plans to increase their investment capital in advantageous areas in Vietnamsuch as retail, building materials production, thermal power, animal feeds…

The establishment of the ASEAN economic community (AEC) is a great motivation for Thai investors to bring capital to Vietnam and expand their business area. Not only towards the market of 90 million people in Vietnam, Thai businesses are far more visionary to penetrate the AEC market with a population of 600 million and a total GDP of 3,000 billion USD.

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Foreign Investors Affirm That Vietnam Is Their Only Destination

Vietnam has become a production center for large projects and billions of dollars contracts to produce high value products, along with many commitments from Vietnam Government have inspired the business community to set up company in Vietnam.

According to representative of HSBC Vietnam, in the context of the world economy with a lot of political instability, Vietnam is emerging as a bright spot in the region with the advantage of competitive labor prices, stable political and macroeconomic. Many foreign investors have confirmed that they considered Vietnam as their only investment destination in the region and that they are still expecting to expand their investment in Vietnam.

Looking at Vietnam now is a country with rapid development plus the Government’s fierce policies and the waves of FDI into Vietnam have created great opportunities for both Vietnamese and foreign businesses.

A country can only develop sustainably when domestic enterprises also develop strongly and sustainably. In order to be able to develop and survive in the future, Vietnamese enterprises truly need to reform, improve their competitiveness, invest in technology for sustainable development, improve their management skills apply science and technology, actively participate in the supply chain of FDI enterprises. These are the problems if Vietnamese enterprises want to develop sustainably.

Finally, Vietnam has huge advantages compared with other countries in the region, based on low cost labor and the strong wave of FDI into Vietnam. This is the “golden opportunity” of Vietnam to be able to carry out reforms of the country. Investors are very hopeful that the Government will continue to reform to make Vietnam become a new tiger of Asia.

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FDI from Asia Will Flow into Hai Phong

Hai Phong has made a splash in attracting foreign direct investment (FDI) and there are indications that foreign investors will continue to set up company in Vietnam in general and particularly this port city in the near future.

In fact, there are few places in the Northern of Vietnam having complete infrastructure system with five modes (railway, road, air, river, sea) such as Hai Phong.

The new Hanoi – Hai Phong highway is one of the most modern in Vietnam. In 2016, Cat Bi International Airport has been expanded to create a large capacity air transportation system in the North (after Noi Bai International Airport, Hanoi), capable of transporting goods on all international routes. The new Lach Huyen port will be operated next year, allowing ships with draft of 14 meters or tonnage of 100,000 DWT to berth in Hai Phong, minimizing the transit time of ports such as Singapore or Hong Kong. These advantages of Hai Phong bring direct benefits to investors by shortening the time to bring products to market. Therefore, many foreign investors have seized the opportunity to invest and deploy the projects in Hai Phong.

By 2016, Hai Phong has licensed 490 FDI projects, with total registered capital of nearly 14 billion USD. Particularly in 2016, with 2.9 billion USD of FDI capital, Hai Phong has risen to the second position in FDI attraction, after Ho Chi Minh City.

Hai Phong still has a large land fund, in the “gold” positions. For example, Dinh Vu – Cat Hai Economic Zone has a total area of 22,540 ha and can be expanded to 600 ha; 19 industrial parks with an area of 9,112 ha and 33 industrial clusters with area of 2,284 ha.

According to representatives of the Deep C Industrial Complex, one of the reasons why investors chose to deploy the project is that industrial parks are located in strategic locations near the newly invested infrastructure, combined with a reliable utility system (including electricity, water, sewage) and the best incentive policy. This is why many investors have implemented large capital projects in Deep C’s industrial parks such as Bridgestone (Japan), Flat Glass (Hong Kong), Knauf (Germany)…

Apart from the advantages of location, infrastructure and good human resources, Hai Phong now has many models of quality industrial parks. That is the basis to believe that in the coming time, industrial zones in Hai Phong will welcome large capital flows from Asia.

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:

• Advisory

• Market Entry

• Tax Advice

• Legal Advice

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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: +844 32232771 .  To learn more about us, please visit www.antconsult.vn

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Vietnam Real Estate Ranks Second in Attracting FDI

In the first quarter of 2017, the real estate sector continued to grow steadily as it continued to rank second in attracting foreign direct investment (FDI) and the number of newly established businesses continued to increase. Those are good signs showing that foreign investors prefer to invest and set up company in Vietnam.

According to the Vietnam National Real Estate Association (VNREA), in a total of 7.71 billion USD registered FDI in the first quarter of 2017, the real estate business sector attracted 0.34 billion USD, accounting for 4.5% of total registered capital and ranked second after processing and manufacturing industries in attracting FDI.

The most remarkable project in the field of real estate in the first quarter was the Vietnam – Singapore Industrial Park III project, which is invested in Hoi Nghia commune (Tan Uyen town) and Tan Lap commune (Bac Tan Uyen district), Binh Duong province, on an area of 1,000 hectares with investment capital of 284.7 million USD, invested by Vietnam – Singapore Industrial Park Joint Venture Limited Company (VSIP).

The first quarter, also recorded 924 real estate businesses were newly established, increasing 55% in number of enterprises and 34% in capital.

According to real estate professionals, in the second quarter, the resort real estate market will continue to grow strongly, attracting the attention of both foreign and domestic investors thanks to the great tourism potential of Vietnam.

Regarding capital for real estate development, it is forecasted that FDI capital will still accounts for a high proportion, domestic capital is the main source of capital. Capital in the people and remittances will be mobilized more, especially investment in the tourism and resort sectors.

Real estate transactions are expected to increase as some large projects with thousands of units are soon to be offered for sale. However, investors are advised to be cautious in selecting projects with good incentives and professional operators to invest.

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:

• Advisory

• Market Entry

• Tax Advice

• Legal Advice

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: +844 32232771 .  To learn more about us, please visit www.antconsult.vn

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