Issuing Investment Certificate for Foreign Investors

Foreign investors whom wish to carry out business in Vietnam need to have investment project proposal prepared for submission to State Authority in Vietnam.  Investment projects of foreign investors and projects of economic organizations with 51% or more foreign owned capital (except for cases of capital contribution, purchase of shares or capital contributions of economic organizations) need to follow procedures for issuing Investment Registration Certificate (IRC).

invest in  Vietnam 

Investment registration certificate records information of an investor’s registration of an investment project. In Vietnam, the agency which has competent to grant, adjust and revoke investment registration certificates is the Department of Planning and Investment or the Management Board of Industrial Parks, Export Processing Zones, High-Tech Zone and Economic Zone depending on the specific project details. The time limit for issuing investment registration certificates for each project is usually 15 days from the date of receipt of a complete application dossier submitted by the investors.

When the investors need to change the scope, purpose of an investment registration certificate, he must carry out the procedures for adjusting the investment registration certificate corresponding to the changed content. Within 10 days, this procedure will have results based on the records that investors submit to the competent authorities.

The existence of an investment project permitted by the State for an investment project in an economic zone shall not exceed 70 years; investment projects outside economic zones shall not exceeding 50 years; investment projects implemented in geographical areas with difficult socio-economic conditions, areas with exceptionally difficult socio-economic conditions or projects with large investment capital but with slow capital recovery, the term can be granted longer but not more than 70 years.

In some cases, to ensure the project implementation in Vietnam, the State issues regulations that require obligations of investor. During the operation of a project, for projects that are allocated or leased land, permitted to change the purpose of land use by the State, investors must make a deposit from 1% to 3% of the project investment capital to ensure project implementation based on the scale, property and implementation schedule of each specific project. This deposit is returned to the investor according to the progress of the investment project, unless otherwise refunded. In addition, investors are responsible for ensuring the quality of machinery, equipment, technology lines to execute investment projects in accordance with law by themselves.

In case of subjective or objective reasons, the investor is entitled to transfer the investment project, delay the investment schedule, suspend the operation of the investment project, or terminate the investment project’s operation.

It is always challenging to navigate the Vietnam regulations, especially with real estate, energy, infrastructure, manufacturing projects involving the use of land, with large scale of investment involving the authorities at provincial levels and therefore at ANT Lawyers our lawyers and consultants would assist the clients from the early stages to work with state government agencies, landlords being industrial parks, industrial processing zone to work out the land lease contract, project appraisal process, and setting up company corresponding to the needs of the investors, and finally assist the investors in obtaining Investment Certificate.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact us to book your time in advance to let us provide our best services.

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Korean Venture Capital Poured into Vietnam

According to Adjust’s Mobile Growth Map – a mobile market research company, Vietnam is the fastest growing application market that keeps Internet users.

In 2017, Korean President Moon Jae-in announced a new policy aimed at strengthening the relationship between Korea and ASEAN. These policies have boosted the dynamism of Korean companies to Southeast Asian business.

More and more companies in every field aim to Southeast Asia. Many of them, are venture capitalists.

Over the past two years, Southeast Asian technology companies have signed numerous agreements involving Korean investors, such as the 50 million USD investment in Bukalapak e-commerce company of Mirae Asset-Naver Growth Fund, seed sponsorship deals for real estate startups from BonAngels Venture Partners and Kakao Ventures.

In addition to trade and real estate, Korean venture capital funds have poured money into almost every other important area of Southeast Asia including fintech (KIP’s investment in C88 in Singapore), car (SoftBank Ventures Korea in Singapore by Carro), travel (BonAngels and Nextrans in Vietnam) and logistics (Nextrans and FuturePlay into EcoTruck Vietnam).

In recent years, Korean venture capital companies have also established joint funds with partners in Southeast Asia to target startups in the region, including a cooperation fund worth 87 million USD of Korean Investment Partners with Golden Equator, the 100 million USD cooperation fund of Intervest and Kejora Ventures. The bigger ones are Hanwha Asset Management and Golden Gate Ventures with 200 million USD fund and most recently the investment fund of about 100 million USD of KB Investment and MDI Ventures.

In 2017, Southeast Asia’s private capital and venture capital surpassed Europe for the first time, with the amount of 23.5 billion USD invested in this area, nearly three times higher than in 2016, according to data from Singapore Venture Capital & Equity Association

(SVCA). Investments in startups doubles to 8 billion USD. In 2018, Alibaba invested an additional of 2 billion USD in Lazada while Indonesia’s Gojek closed the 1.5 billion USD funding round.

Korean investors pay special attention to Indonesia and Vietnam. According to the Vietnam Technology Investment Report of Cento Ventures and ESP Capital, 13 of 61 venture capital funds operating in Vietnam in the first half of 2019 are Korea.

According to Adjust’s Mobile Growth Map – a mobile market research company, Vietnam is the fastest growing application market that keeps Internet users.

One of the reasons is that Vietnam is the market with the largest potential for internet growth worldwide.

That’s why so many businesses come to this region, and so many acquirers are actively looking for Southeast Asian companies. Silicon Valley giants like Google and competitors are beginning to look more seriously at Southeast Asian companies as an investment and acquisition opportunity.

ANT Lawyers – Law firm in Vietnam is supported by a team of experienced Vietnam Law  and skills handling full range of legal services relating to setting up business in Vietnam.

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

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:

• 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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ITALIAN BUSINESS EXPAND INVESTMENT IN BINH DUONG

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.

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ITALIAN BUSINESS EXPAND INVESTMENT IN BINH DUONG

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.

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NESTLÉ SET UP THE 6TH FACTORY IN VIETNAM

This is the 6th plant of Nestlé in Vietnam and the 2nd factory located in Hung Yen. The project has investment capital of 70 million USD, which is expected to come into operation in 2017.

Nestlé Vietnam Company has just started construction of a new factory in Thang Long II Industrial Park in Hung Yen. As reported by the company, the new plant with capital investment of 70 million USD was built on an area of 10 hectares and expected to go into operation in 2017, creating jobs for hundreds of local workers.

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In 3 years, Nestlé has continually set up new plants and expand existing plants. The investment activities are continued to expand expressed the firm belief in the rapid development of Vietnam’s economy. At the same time, assessing that Vietnam is having many advantages in attracting investment with a young and dynamic population, growing consumer markets and favorable business environment.

Nestlé Group specializes in manufacturing and supplying nutrition and health products. Founded in 1866 and headquartered in Vevey, Switzerland, till now, the group has developed 447 plants in 86 countries with 339,000 employees, owns more than 2,000 brands with 10,000 products.

Estimating that every day, there are about 1 billion of Nestlé products are sold worldwide. Nestlé operates in Southeast Asia since the early years of the last century, the first sales offices located in Saigon in 1912. In 1995, Nestlé Vietnam was born. So far the total investment capital of Nestlé in Vietnam reached over 520 million USD, employs approximately 2,000 employees and operates 5 plants.

Earlier, in 1992, Nestlé joint ventured with Long An Trading Company to founded La Vie Co., Ltd. In 2001, the company continues to build La Vie mineral water plant in Nhu Quynh town, Van Lam district, Hung Yen with registered capital of more than 10.3 million USD.

As noted by the Deputy Minister of Industry and Trade, Nestlé Vietnam is one of the 100% foreign investments that have invested very soon in Vietnam. Since going into operation so far, the company has maintained a fairly annual growth rate, especially in 2015, the growth rate of the company reached approximately 15%.

According to the Swiss Ambassador in Vietnam, Switzerland is in the list of 20 largest investors in the world. In Vietnam, investment projects of Swiss firms are growing significantly. The Swiss company has been operating in Vietnam for many years, contributing more than 2 billion USD of investment capital in Vietnam, bringing the Swiss became the 4th largest investor in Vietnam, surpassing Germany.

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Vietnam Expecting Strong Capital Wave from Apple

Leaders of Ho Chi Minh City (HCMC), Binh Duong and Bac Ninh will create the most favorable conditions to invite and welcome Apple projects to be invested in Vietnam.

Ho Chi Minh City

Apple has proposed to build a database center serving Asia in Vietnam. The project has a total investment of approximately 1 billion USD. Presently, Apple is looking for place to put on the project construction headquarter.

According to Mr Nguyen Van Hung from HCMC’s Department of Planning and Investment, the leaders of the City have surveyed and contacted with Apple in the United States. The City always ready to welcome the high-tech projects.

Moreover, according to Mr Le Hoai Quoc from HCMC hi tech park, their management board has also actively contact with representatives of Apple in the previous year. The general view of the city as well as the management board is looking forward and welcoming the projects with high technological content. Therefore, the city has been very interested and willing to introduce to the Apple representatives about the preferred location for their investment projects. However, it seems they have chosen Hanoi.

Binh Duong

Similarly, in Binh Duong, Binh Duong People’s Committee also said that they are looking forward to welcome Apple’s projects to Binh Duong.

If their choice is Binh Duong, Apple will enjoy all the best preferential policies according to the criteria of high technology sector.

Binh Duong has favorable conditions, clear mechanisms and policies to attract investment with the most beautiful and modern infrastructure in the country.

In terms of location, Binh Duong is the HCMC’s gateway center. It is just 30 minutes driving from Tan Son Nhat airport to Binh Duong. All the conditions are not inferior to Bac Ninh and Bac Giang.

Binh Duong is the place that gathering most of the supporting technology manufacturing enterprises from Japan and South Korea. Hence, if Apple headquarter is located here, this province certainly can meet part of their business requirements. Binh Duong seems to be the only one area in Vietnam that develops high technology.

Bac Ninh

Bac Ninh is the province that is attracting a lot of high-tech projects, including Samsung as one of Apple’s major competitor.

This seems to be opportunities for both investors to compete with each other because everything is equal.

In addition to the general incentives policy of the Government, Bac Ninh is ready to offer their own incentive policies. In any case that the supporting was not enough, Bac Ninh will looking for further support.

In terms of the incentives policies for high-tech enterprises, Bac Ninh is currently leading the country, other provinces still have to learn from Bac Ninh to develop their policies. Moreover, Samsung and Nokia are still located in Bac Ninh therefore Apple will feel satisfy.

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