Hanwha Techwin Company (Korea) Wants to Invest in Bac Ninh

Vietnam has always been an ideal investment destination for many foreign companies to come and set up business in Vietnam.

Hanwha Techwin Company (Korea) Wants to Invest in Bac Ninh

Currently, Mr. Yang Jin Seol, CEO of Hanwha Techwin Company (Korea) came to Bac Ninh to survey and explore the investment environment in Bac Ninh province.

Working with the Chairman of Bac Ninh Province, Mr. Yang Jin Seol said that Hanwha Techwin Company (under Hanwha Group) is specializing in producing security devices with 27 networks globally. Turnover of the Company in 2015 reached nearly 600 million USD.

Through survey and research, the Company is expected to invest in building factories in Que Vo Industrial Zone with a total investment of 50 million USD, in which the first phase (2017-2019) is 30 million USD. When put into operation, the plant will create jobs for about 1,500 – 2,000 labor, with capacity of 2 million pieces/year.

Mr. Yang Jin Seol hopes that the company’s business ideas will be interested and the provincial leaders will create favorable conditions, especially the preferential policies for enterprises producing high-tech products so that the Company can early implemented the plant construction in the first quarter of 2017.

The Chairman of Bac Ninh province welcomes Hanwha Techwin Company have trusted and choose Bac Ninh as investment destination to invest in stable and long-term production.  He also assigned the Management Board of Industrial Zones in coordination with the Kinh Bac Urban Development Corporation – the infrastructure investor of Que Vo Industrial Park and other offices complete the legal procedures and creating all necessary conditions for the project of Hanwha Techwin Company.

Bac Ninh is one of the leading provinces in attracting FDI with nearly 1,000 projects with total registered capital of over 12.26 billion USD. South Korea has more than 400 projects, accounting for about 50% of total FDI capital of the whole province, in which there are many projects of large companies such as Samsung, Orion, Daewoo, Flexcom, Intops, Nano Tech…

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: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Have Vietnam’s relaxed rules caught on with foreign homebuyers?

Insiders say it may take time to fully evaluate the impacts of the new policy that allows foreigners to own a home here.

Ho Chi Minh City's property market experiences strong growth in the last quarter of 2016. Photo by VnExpress/Nguyen Thanh Van

When Vietnam opened up its housing market to foreigners in July 2015, many thought there would be so many buyers rushing in to grab the villas and apartments here.

But after a year and a half since ownership restrictions were removed, it seems nothing like that has happened.

Troy Griffiths, deputy managing director of real estate company Savills Vietnam, said that the relaxed rules make Vietnam as appealing as Malaysia and Thailand, which have already taken similar initiative to drive home sales to foreigners.

But the new policy, he said, has not been doing much for the Vietnamese economy so far. “It’s not been anywhere near as sensational as we all expected,” Griffiths toldVnExpress International.

He estimated that the number of sales has not reached thousands yet. His company has reported less than a hundred sales, mostly in high-end products, and smaller apartments to Taiwanese and Singaporeans.

There are around 80,000 foreigners working and living in Vietnam. Before July 2015, each of them could only buy one apartment here, under conditions that they were either married to Vietnamese nationals, held managerial positions, or had contributed to the country.

Industry insiders believe that easing ownership restrictions have at least created more interest in the local housing market. But many often complain that regulations and paperwork in general are still very complicated for foreign buyers.

Griffiths said that theoretically, there should be no regulatory problem with the new policy.

He said it is not easy to say for sure why the policy has not been a big success as expected. But he said the country might need more time for the new rules to work out, pointing out the case of Malaysia, which has implemented a similar law for more than 10 years and has only seen 3,000 foreign buyers a year at most.

Real estate was Vietnam’s best growing economic sector in2016 with 3,126 new companies in 2016, a staggering 84 percent annual increase.

But it also saw a nearly 70 percent rise in closures, only after agriculture and healthcare.

“It’s an extremely competitive sector,” Griffiths said.

He said the competition will continue in 2017 with a lot of supply coming on.

A report released by Savills Vietnam on Monday showed strong growth in all asset classes in Ho Chi Minh City, the country’s most crowded city, in the last quarter of 2016.

Tourism boom, new public transport projects, and the current low rate of urban citizens will be key drivers for Vietnam’s property market in 2017, it said.

More than 60,000 apartments are expected to enter the market in 2017 and 2018, with a strong growth in the mid-end and affordable segments, the report said.

Only 34 percent of Vietnamese are living in urban areas, and according to Griffiths, there’s a lot of room for residential development.

An oversupply will be good for the competition, Griffiths said, dismissing concerns of a bubble similar to the one that hit the market nearly a decade ago. “The good developers will continue on and the poor ones will drop away,” he said.

Source: Bao Vnexpress 

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Vietjet Air Had 26 Foreign Investors

The total number of shares that foreign shareholders are holding at Vietjet Air accounting for more than 24% of charter capital.

Recently, Vietnam’s Deputy Minister of Transport has signed a written approval for Vietjet’s 5 shareholders to transfer 66,506,870 shares, equivalent to 22.169% of the charter capital of 3,000 billion VND to 23 foreign investors.

Earlier, in December 2016, the Ministry of Transport has also agreed for 1 Vietjet’s shareholder to transfer 6.566 million shares, equivalent to 2.626% of charter capital for 3 foreign investors, who are: Wareham Group Limited (British Virgin Island), Dragon Capital Markets Limited (Cayman Island) and DC Developing Markets Strategies Public Company (Ireland). The amount of transferred money was not revealed, but ranged from 65 billion VND to 788 billion VND. The transfer has been completed and aproved by the Department of Planning and Investment of Hanoi on December 22^nd 2016.

In total, the transfer of shares to foreign investors has reached 24.358% of charter capital.

According to Vietnam Civil Aviation Administration, the transfer of shares to foreign investors of Vietjet is valid. The transfer does not increase the charter capital of Vietjet, foreign investors do not participate in the executive apparatus, management operations and administration works of Vietjet and therefore it does not alter the business plan and development strategy of Vietjet.

Relating to the transfer of shares to foreign investors, according to Decree 92, the foreign parties cannot occupy more than 30% of charter capital and foreign members shall not exceed 1/3 of the total number of members participating in the executive apparatus.

Vietjet Air is the first airline in Vietnam operating under the model of the new generation airline, with low cost and provides a variety of services for customers to select. Vietjet is an official member of the International Air Transport Association (IATA) with IOSA safety operation certificate. Besides the position of “Top 500 Leading Brands in Asia in 2016”, Vietjet is voted as “Best Asian Low Cost Carrier” in 2015 by the TTG Travel Awards and Top 3 airlines that have fastest growth facebook fanpage in the world, evaluated by SocialBakers.

Currently, Vietjet is operating 42 A320 and A321 aircrafts, performed about 350 flights a day and has transported nearly 35 million passengers, with 60 routes covering destinations in Vietnam and international routes to Hong Kong, Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia…

Vietjet has planned to develop extensive flight network throughout Asia – Pacific region. Moreover, they are studying for further expansion of routes in the region and has signed procurement contracts to purchase new generation aircrafts.

Relate news: Vietnam company formation

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: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Flappy Bird creator lends a wing to Vietnamese startups

'Just propose those projects to me, no matter how bad it is,' Nguyen Ha Dong writes on Facebook.

The overnight success of mobile game Flappy Bird has turned its creator Nguyen Ha Dong into a star of the local startup scene.

Flappy Bird creator Nguyen Ha Dong (L) and Google CEO Sundar Pichai (R) shake hands at a sidewalk café in Hanoi on December 22, 2015. Photo by Reuters

The game, hailed by the industry as one of the milestones of Vietnam's startup history, has brought Dong great fame and fortune, all within a short period of time.

Now Dong is making a pledge to pay it forward and fund Vietnamese startups in the fields of robotics, artificial intelligence, social services, community development and education.

“Just propose those projects to me, no matter how bad it is,” he wrote on his Facebook page.

He did not give specific details about mentoring and funding.

Flappy Bird was released in May 2013 with little fanfare. By February 2014, the sleeper hit topped the charts in more than 100 countries and had been downloaded more than 50 million times. Dong reportedly earned an estimated $50,000 a day.

The Vietnamese government has seen successes like Flappy Bird as an encouraging sign. It is trying hard to cultivate a startup scene where tech entrepreneurs can create products and services that will go global.

Unlike the well-developed startup ecosystem in most other countries, where there are venture capitalists and a strong network of entrepreneurs working together, the system in Vietnam is at a fledgling stage, with many funding difficulties.

Relate news

Vietnam Technology Startup Attracts Foreign Enterprises

Source: Bao Vnexpress

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Vietnam, Ireland ink deals to build $2.2 billion wind farms

The farms, one in the central region and the other in the south, will have a combined capacity of 940 MW.

Companies from Vietnam, Ireland and the U.S. on Monday signed cooperation agreements to build two wind farms in Vietnam worth $2.2 billion.

Part of a wind farm in the Tuy Phong District of Binh Thuan Province. Photo courtesy of Nguoi Lao dong news site

The pacts are part of various deals reached by Vietnam and Ireland during the visit to Vietnam by President of Ireland Michael D. Higgins from November 5-14.

Vietnam’s Phu Cuong Corporation will join hands with Ireland’s Mainstream Renewable Power Ltd. and the U.S. giant General Electric to set up an 800-megawatt wind farm in the southern province of Soc Trang. The project will need $2 billion.

In the second project, Vietnam’s Pacific Corporation will cooperate with Mainstream Renewable Power Ltd. to build another 140-MW wind farm in the central province of Binh Thuan, which is worth $200 million for construction.

The same day Vietnam and Ireland also signed other agreements on poverty reduction, education and training, information and communications.

Vietnam has recently revised down the target for electricity generation by coal-fired thermal power plants from 56.4 percent of the total electricity generation to 53.2 percent by 2030.

The country is more focused on renewable energy, particularly solar and wind energy, targeting a renewable energy ratio of 10.7 percent by 2030.

But that will require a lot of investment in the coming years. Wind and solar power capacity is estimated to account for only 0.8 percent and 0.5 percent of total electricity generation respectively by 2020.

With over 3,000 km of coastline and numerous islands, Vietnam has more wind power potential than most of other Southeast Asian nations with a total estimated capacity of 24,000 MW, the Vietnam News Agency has reported.

Source: Bao Vnexpress

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Fast-growing Vietnam to invest $40 billion in electricity projects by 2020

The country is also shifting attention to renewable energy to meet the needs of the economy.

Vietnam may need to invest about VND859 trillion ($38 billion) in electricity generation, transmission and distribution infrastructure between now and 2020 to meet domestic demand, the government said in a new report.

 Fishermen working near the first towers of wind turbines from a Vietnamese wind power plant. Photo by AFP

That is equivalent to 20 percent of the country's gross domestic product last year.

According to the report, about 75 percent of the investment will go to generation and the remaining 25 percent to upgrade, repair and expand the national transmission and distribution system.

The government said a majority of the investment would be funded by loans and the state budget would cover only 0.5 percent.

The average electricity consumption steadily grew at 13 percent between 2000 and 2010, and about 11 percent between 2011 and 2015, said Le Tuan Phong, deputy head of the General Directorate of Energy, under the Ministry of Industry and Trade.

The country’s electricity demand is expected to continue to grow 13 percent annually in the next four years to feed the economy, which has grown above 5 percent a year on average since 1999 and is forecast to reach 6.5-7 percent in the next four years.

It is estimated that Vietnam will need about 47 billion kilowatt-hours by 2030 for the annual economic growth rate of 7 percent.

Vietnam is trying to generate enough energy for growth and for millions of people who still lack access to electricity while gradually shifting towards clean and low-carbon energy, said Tran Dinh Thien, who heads the Vietnam Economic Institute.

The government has recently revised down the target for electricity generation by coal-fired thermal power plants from 56.4 percent of the total electricity generation to 53.2 percent by 2030.

Vietnam is more focused on renewable energy, particularly solar and wind energy, targeting a renewable energy ratio of 10.7 percent by 2030.

But that will require a lot of investment in the coming years. Wind and solar power capacity is estimated to account for only 0.8 percent and 0.5 percent of total electricity generation respectively by 2020.

Source: Bao Vnexpress

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Foreign investors lay eyes on Vietnam’s renewable energy sector

Vietnam has opened up to foreign investors in a bid to meet the rising demand for power.

The World Bank’s International Finance Corporation (IFC) and the Singapore-based renewable energy private equity fund Armstrong S.E. Clean Energy Fund have formed a partnership to invest in Gia Lai Electricity JSC (GEC).

IFC has acquired a 16 percent stake in the Ho ChiMinh City-based power company while Armstrong has taken a 20 percent share.

The move by IFC and Armstrong could spur further foreign interest in the country’s renewable energy sector.

Hydropower is the world’s largest source of renewable energy and accounts for one-fifth of the world’s electricity, according to statistics from IFC.

“As shareholders, IFC and Armstrong will not only support the company in expanding its core business in hydropower, but also help GEC become a leading company in Vietnam’s renewable energy sector,” said chief executive Le An Khang.

“Their investment is a vote of confidence in Vietnam’s hydropower sector potential and should help attract more international investors,” he continued.

Vietnam’s electricity consumption has grown twice as fast as the country’s economic growth rate in recent years. The country’s power output is expected to grow at an annual rate of 14 percent between 2015 and 2030.

Source: Bao Vnexpress

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