Economy & Trade

Vietnam Market Watch: FDI Inflows, Da Nang Startups, and Aquaculture Exports

Posted on by

VietnamMarkrt Watch Logo with a subtitle (550px) -01-01

Vietnam’s FDI Inflows Rise to US$4.8 Billion in April

FDI disbursed in the first four months of 2017 shows a strong year on year growth with inflows rising to US$4.8 billion, up 3.2 percent from the same period last year for a total of 734 newly registered projects. The total registered and additional capital in the first four months witnessed a jump of 40.5 percent, reaching US$10.95 billion. The growing numbers prove the increasing confidence of foreign investors in the country’s investment climate.

Read more

Continue reading…

Vietnam’s FDI Inflows Rise to US$4.8 Billion in April

Posted on by

By: Koushan Das

FDI disbursed in the first four months of 2017 shows a strong year on year growth with inflows rising to US$4.8 billion, up 3.2 percent from the same period last year for a total of 734 newly registered projects. The total registered and additional capital in the first four months witnessed a jump of 40.5 percent, reaching US$10.95 billion. The growing numbers prove the increasing confidence of foreign investors in the country’s investment climate.

Continue reading…

Electronics Production in Vietnam: A Guide to Emerging Opportunties

Posted on by

By: Eugenia Latova

While many industries of the Vietnamese economy are growing rapidly, perhaps the most exciting is electronics. Imports have nearly tripled from 2011 to 2016, while exports have increased by nearly 5 times — rising from US$12.8 billion to US$65.8 billion in 2015. In 2015 alone, electronics exports nearly doubled, something that took aggregate exports nearly four years to accomplish. In the years ahead, the implementation of key trade agreements, strong demographic tailwinds, and supportive government policies are likely to continue this trend and present a variety of opportunities for investors. To tap these trends effectively, it will be critical to understand recent events in electronics production, the structure of Vietnam’s electronics sector, and prepare to meet opportunities as they arise. 

Continue reading…

Vietnam Market Watch: GDP Growth Projections, State Divestment Plans, and Aviation Guidance

Posted on by

VietnamMarkrt Watch Logo with a subtitle (550px) -01-01

Government to sell stakes in 137 state-owned enterprises by 2020

Vietnam’s State Capital Investment Corporation (SCIC) is planning to divest its entire capital in 137 state-owned enterprises (SOE) by 2020. Changes in foreign ownership limits, a growing economy, and a strong performing stock market have attracted considerable interest from foreign investors for earlier SOE’s divestments. However, a lack of transparency and the slow progress of divestments are affecting investor sentiment.

Read More

Continue reading…

Vietnam to Sell Stakes in 137 State Owned Enterprises by 2020

Posted on by

By: Koushan Das 

Vietnam’s State Capital Investment Corporation (SCIC) is planning to divest its entire capital in 137 state-owned enterprises (SOE) by 2020. Changes in foreign ownership limits, a growing economy, and a strong performing stock market have attracted considerable interest from foreign investors for earlier SOE’s divestments. However, a lack of transparency and the slow progress of divestments are affecting investor sentiment.

For 2017-18, the companies under consideration for divestment are Giang Stone Exploitation & Processing One Member Company, Trang Tien Trading Co. Ltd, Hoang Quan Appraisal Co. Ltd, and the Publishing & Printing company under HCM City’s Publishing Association. However, SCIC will continue investing in SCIC Investment One Member Company Limited, Ha Giang Mineral and Mechanics Joint Stock Company, and FPT Corporation, which are already part of their portfolio. Since its inception in 2006, SCIC has divested in over 900 enterprises. In 2016, SCIC divested from 60 business and in turn achieved an impressive 2.58x return.

Continue reading…

Vietnam’s GDP Forecast to Grow at 6.5 Percent in 2017

Posted on by

By: Koushan Das

Vietnam’s GDP is forecast to grow by 6.5 percent in 2017 and at 6.7 percent in 2018, according to the 2017 Asian Development Bank (ADB)’s Outlook report. While the results remain largely upbeat, Vietnam’s first quarter growth, which came in slightly below prevailing estimates in March, has led to a more conservative outlook from the ADB. From the perspective of investors, however, aggregate GDP figures are likely to play a less significant role than the performance of key industries within the Vietnamese economy such as agriculture and manufacturing.

Continue reading…

Understanding Provincial Competitiveness in Vietnam

Posted on by

By: Loan Quach

Da Nang, Quang Ninh, and Dong Thap were recently awarded as the top three most competitive provinces in Vietnam, according to the twelfth Provincial Competitiveness Index (PCI) of 2016, recently published by the Vietnam Chamber of Commerce and Industry (VCCI). Compiled in partnership with the United States Agency for International Development, PCI 2016 surveys private enterprises and measures economic governance of 63 provinces and municipalities in order to help promote Vietnam’s private sector development. In more conventional terms, the report assesses the regulatory environment within each province and relays this data to businesses through rankings and comprehensive information pertaining to the sentiment of established business leaders. Foreign investors can then refer to this data to make a decision regarding whereabouts to relocate or expand their businesses in Vietnam.

Continue reading…

Setting Up a Foreign-Invested Enterprise in Vietnam

Posted on by

By: Dezan Shira & Associates
Editors: Tam Nguyen and Dam Thi Phuong Mai 

By continually issuing favorable policies and incentives aimed at attracting inflows, and deciding to decrease the country’s corporate income tax levels to 20 percent from January 1, 2016, it is clear that Vietnam’s government is intent on taking a proactive approach to foreign direct investment. Enterprises and individuals interested in taking advantage of the country’s friendly investment environment therefore need to be aware of the various market entry structures available to foreign investors.

There are two main types of vehicles for foreign investment in Vietnam: 100 percent foreign-owned enterprises (FOEs) and joint venture enterprises (JVEs).

100 percent FOEs can be established by one or more foreign investors, under the form of either a limited liability company (LLC) or a joint-stock company (JSC). JVEs can be established as an LLC, a JSC, or a partnership, and the profits and risks in a JVE are distributed among the parties in proportion to their charter capital contributions. Other options for establishing a commercial presence in Vietnam include representative offices and branch offices, but these are not legal entities.

Continue reading…

Podcast: Talking ASEAN Episode 1 – FDI Opportunities in ASEAN, a Look Ahead for 2017

Posted on by

By: Dezan Shira & Associates

In the first-ever episode of the Talking ASEAN podcast series, Dezan Shira & Associates’ Dustin Daugherty and Max Brown provide a country-by-country prediction of ASEAN’s foreign investment future. As part of this, the recent progress and prospects for the Vietnamese economy are evaluated in a regional context. 

 

Continue reading…

Upcoming Area Code Adjustments in Vietnam

Posted on by

By: Dezan Shira & Associates

Over the next six months, Vietnam will adjust nearly all of its area codes within the country. First announced in 2016, under the Ministry of Information and Communication’s (MIC) Decision No. 2036/QD-BTTT, gradual implementation of these changes come as part of a concerted effort by Vietnamese authorities to enhance cohesion with global best practices set out by the International Telecommunications Union. 

Currently, Vietnamese area codes range from one to three digits and lack in a clearly defined system of organization. Under the updated structure, all area codes outside of Vietnam’s capital, Hanoi, and its financial hub, Ho Chi Minh City, will be standardized to three digits in length. Ho Chi Minh and Hanoi will be shifted to area codes of two digits, away from their current one digit codes. In addition to standardizing length, all area codes will now start with the number two, opposed to the prevailing area code classification which allows for any number.

Continue reading…

Dezan Shira & Associates

Meet the firm behind our content. Dezan Shira & Associates have been servicing foreign investors in China, India and the ASEAN region since 1992. Click here to visit their professional services website and discover how they can help your business succeed in Asia.

News via PR Newswire

Scroll to top