Markets

New Issue of Vietnam Briefing: 100% FOEs, JVs and the Promotion of Supporting Industries

Jan. 17 – The new issue of Vietnam Briefing Magazine, titled 100% FOEs, JVs and the Promotion of Supporting Industries, is out now and is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100 percent FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons and the permissible establishment details (such as percent of foreign capital contributions) for each vary by sector.

As 2012 will be a year of significant change in limitations on foreign ownership regulations for 100 percent FOEs and JVs, this issue offers a clear snapshot of up-to-date regulations and specific changes to expect in 2012, as well as a useful summary of tax incentives and exemptions. Also, a roadmap and timeline for licensing procedures take the guesswork out of this initial step in establishing a business in Vietnam. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured, Markets | Tagged Vietnam Briefing Magazine, Vietnam Establishment, Vietnam FDI, Vietnam FOEs, Vietnam JVs | Leave a comment

Vietnam’s M&A Activities 2011

Nov. 7 – Following amendments more than five years ago to two major laws regarding investment activities in Vietnam – namely the “Competition Law” and the “Law on Investment” – the country’s mergers and acquisitions (M&A) market has increased from US$299 million in 2006 to US$1.7 billion in 2010. Furthermore, M&A activities for the first nine months of 2011 have reached over US$2.6 billion, doubling the value seen in the same period last year. M&A transactions are also expected to continue to see strong growth in the foreseeable future.

“M&A in Vietnam will flourish in the last quarter of 2011 and the following years, with an annual growth rate of 30 percent to 40 percent,” said The Competition Management Department (under the Ministry of Industry and Trade) at the Vietnam M&A Forum 2011 held in Ho Chi Minh City on June 9, 2011. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Markets | Tagged European Chamber of Commerce in Vietnam, Vietnam Economy, Vietnam European Union, Vietnam FDI, Vietnam Japan, Vietnam Mergers and Acquisitions | Leave a comment

New Issue of Vietnam Briefing: International Taxation Agreements

Oct. 17 – The new issue of Vietnam Briefing Magazine, titled Vietnam’s International Taxation Agreements, is out now.

As Vietnam increasingly finds itself on the receiving end of foreign investment and becomes progressively integrated into the global economy, the pace of changes to trade and tax policies can be difficult to keep up with. However, understanding the state’s policy objectives, and understanding the wider context of its trade policy and how it affects one’s investments, can make the difference between an investment and a lucrative investment.

In this issue, we will first look at the broader context of global trade and the growing salience of free trade agreements (FTAs) between Vietnam and its trade partners. We will examine the effects of current FTAs on Vietnam’s exports, the advantages and disadvantages thus far, as well as the response of Vietnamese enterprises to the policies of the FTAs in effect. Also, an in-depth look at key bilateral and regional trade agreements will reveal some telling trends. Continue reading →

Posted in FDI and Foreign Trade, Featured, Finance, Tax and Accounting, Markets | Tagged Canada, China, France, Vietnam Briefing Magazine, Vietnam Double Taxation Avoidance Agreements, Vietnam FDI, Vietnam Free Trade Agreements, Vietnam Tax | Leave a comment

Positive Outlook on Vietnamese-Indian Trade

Aug. 17 – Continuing growth in bilateral trade between India and Vietnam is reinforcing the importance of these two emerging economies to each other.

In 2010, bilateral trade grew 34 percent year-on-year to US$2.06 billion, with a similar pattern emerging in 2011. For the first half of 2011, bilateral trade came to US$1.8 billion, a 39.2 percent increase over the same period in 2010.

India’s involvement in trade with Vietnam has grown exponentially in the last decade as evidenced, most recently, by a more than 136 percent increase in exports from Vietnam to India in 2010 over 2009. Key Vietnamese exports include steel, coffee, rubber and electronic items. Continue reading →

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Vietnam Commits US$48.8 Bln Towards Increasing Electricity Capacity

Aug. 5 – Vietnam’s Ministry of Industry and Trade recently announced that the country will be spending US$48.8 billion to help boost electricity generation capacity to meet the growing domestic demand.

The majority of the funds will be put towards the construction of new plants and power-transmission systems, the ministry said in a statement. Vietnam will also seek FDI and official development aid, as well as commercial loans for the projects. Continue reading →

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Vietnam’s June CPI Hits Lowest Point in Nine Months

By Nguyen Huyen My

Jun. 28 – According to figures released by the General Statistics Office (GSO) on June 24, Vietnam’s CPI in June increased 1.09 percent compared to May, 13.29 percent compared to December 2010, and 20.82 percent against June 2010.

After many efforts made by the Vietnamese government to stabilize prices in Vietnam, this is the lowest CPI in the first six months this year and for the last nine months. With such slower rising speed, the average CPI of the first six months of 2011 has increased 16.03 percent in comparison with the same period last year. Continue reading →

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Vietnam Attracts Japanese Investors as Bilateral Relations Improve

Jun. 7 – On his recent trip to Japan, Vietnam’s Party Politburo member Truong Tan Sang commended Vietnam-Japan relations over the last 40 years while encouraging future high-level visits and the expansion of delegation exchanges because of the “Vietnam-Japan Friendship Year” coming in 2013.

In his conversation with Japanese Prime Minister Naoto Kan, Sang added that they will try to stimulate the “strategic partnership for peace and prosperity in Asia” between Vietnam and Japan. Also he offered his sympathies to the Japanese people because of the recent natural disasters and promised that Vietnam will support Japan as well as it can. Additionally, he hopes and expects that Japan continues to raise its ODA to Vietnam following the agreements signed during Prime Minister Kan’s visit to Vietnam last October. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets | Leave a comment

Vietnam’s M&A Market: An Overview

May 31 – Following two major laws concerning M&As in Vietnam which came into effect almost five years ago, namely the “Law on Investment” and the “Competition Law,” the number of M&A deals in Vietnam has surged from 38 in 2006 to 108 in 2007 according to Reuters, and from US$299 million to US$1.72 billion over the same time frame. Continue reading →

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Vietnam Drawing In Italian Investors

By Christian Quill

May 30 – More and more Italian investors are considering their investment options into Vietnam. According to the Italian Ambassador to Vietnam Lorenzo Angeloni, the Italian government would like to boost Vietnamese-Italian joint ventures financially. This is especially the case in joint ventures in agriculture, breeding, fisheries, food-processing, craftsmanship, and energy.

The Italian government also wants to assist some Vietnamese government projects. The priority areas for those projects are energy, transportation, waste treatment, cultural and environmental projects, microfinance, fair-trade and sustainable tourism. Continue reading →

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East Asian Companies Keen on Vietnam as a China Alternative

May 9 – More and more foreign investors, especially out of the textile and clothing industry, are looking to invest in Vietnam due to the increasing production costs in China.

Two weeks ago, a joint venture between Pacific Vietnam Textile Ltd and Crystal Corporation was authorized by the Hai Duong provincial People’s Committee. The collaboration is centered on a garment and textile complex in Hai Duong’s Tu Ky with a volume of US$180 million with a calculated revenue of US$590 million per year. According to the investors, it is the largest vertically integrated project in Vietnam. The production process includes knitting and dyeing, cutting and sewing, and reining the textiles. Continue reading →

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