FAST-MOVING CONSUMER GOODS MARKET IN VIETNAM

1.     Overview

With increasing disposable income, rising living standard, stable GDP and economic growth, young population and low inflation, Vietnam is one of the most dynamic emerging market in Southeast Asia region. Fast movingconsumer goods industry has promised a robust development.

2.     Fast-moving Consumer Goods (FMCG) in Vietnam

• FMCG growth

There is a significant volume growth from -1,6% in 2014 to 2,7% in 2015 in terms of demand for FMCG and the figure is expected to continue increasing in 2016 and 2017 (Nielsen, 2015). Vietnam’s volume growth in 2015 in only behind Thailand and the Philippines in South East Asian religion. In short term, urban citizens remain positive value growth of 3,6% whereas value of growth in rural areas grow at weak pace.

• Value contribution in FMCG

It can be seen from the chart beverage contribute the largest value to FMCG industry while baby care products remain the lowest value contribution. Interestingly, urban prefers liquid tonic food drink with the rise of 4,4 PTS when the most popular beverage in rural is soya milk with the increase of 8,7 PTS.

• Distribution channel

The data of Kantar research shows that traditional trade outlet such as wet markets and grocery stores is still one of the most popular channel for FMCG. Convenient stores/mini market is a new rising star in distribution channel which experience 60% growth from 2014 to 2015. For example, VinMart + have appeared from 100 to 200 store in 2015, Circle K from 97 to 129 stores, and Shop & Go from 103 to 130 stores. E-commerce also will be a big trend which reaches steady growth of 13%.

• Consumer behaviour patterns

Consumer confidence index also experiences positive trend since Vietnam is the 6^th most optimistic country globally. Despite of the increase of 6,3% CPI in 2015 compared to 2014, Vietnamese consumer is prudent, still prefer saving than spending. Pricing has also been one of the most important decision making factor during purchase. Additionally, dropping shopping frequency proves that Vietnamese consumer has been lessen spending

The demand for high end FMCG is still week regard to relatively low income of majority of Vietnamese consumers in rural areas. Compared to other South East Asian countries, Vietnam’s per-capital expenditure on food and non-alcoholic beverages was US$200 in 2011 while this figure is US$900 in Thai Land and US$1000 in Malaysia.

3.     Future trend and potential investment

• Booming of foreign investment in FMCG

Vietnam has emerged as a popular destination for multinational and regional retailers. It is allegedly agreed that Vietnamese consumers are more likely to prefer foreign brands. In addition, 57% of Vietnam’s population below 35 years old, 44% monthly increasing income, 30% urbanisation rate with 3,4% growth rate per year; and 1.6 times more college and university graduate (Nielsen) result inthe shift toward modern trade outlets such as shopping mall and supermarket. Some of well-known foreign retailers are AEON (Japan), Lotte (Korea), Central Group (Thailand), Mark and Spencer (UK). In additional to strong foreign competitors, Vinmart and Citimart are the most popular domestic rising stars in FMCG/retail market in Vietnam.

• Shopper get smarter and more purchasing power

In 2015, 48% of Vietnamese consumers stated that “staying fit and healthy” is the top concern (Nielsen). Therefore, Vietnamese consumers have become more concerned about the quality, hygiene and safety of the products. Due to high competition in FMCG industry in terms of manufactures and retail outlets, Vietnamese consumer have more purchase power decision. This implies that manufactures as well as retailers also need to be more selective with the products that provide to customers.

• The emergence of new online channel

According to Nielson report in 2 big cities: Hanoi and HCMC, 92% of internet users are online shopper and 93% of shopper are middle class and millennial. Additionally, in such a busy world, on-the-go lifestyle will become a big trend in Vietnam. Thus, it indicates the high demand for online platform that conveniently host information and acquire interaction between online and offline store choices. Also lack of innovative approach and strategy to attract online shoppers is a huge issue in Vietnam market at the moment. Also there has been a huge lack of accessibility to online channel in rural areas and other smaller cities. E-commerce in FMCG promises high potential for investment.

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.  

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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US GOVERNMENT SPONSORED 1 BILLION USD FOR VIETNAM WIND ENERGY

US Consulate in Ho Chi Minh City has just signed a non refundable sponsorship for Cong Ly Construction, Trade and Tourism Co., Ltd an aid amount of nearly 1 billion USD to conduct a feasibility study program to develop Bac Lieu wind power plant with capacity of 300MW.

Accordingly, the research project involves conducting assessments on resources and wind energy; review of licensing issues and land controlling; grid connection and foundation design; estimating construction costs… The project has been approved by the Prime Minister and this is the first private project of Vietnam in the field of offshore wind power, which is benefit from the supporting programs of the US Government to Vietnam.

This activity is part of the implementation of commitments to comprehensive support Vietnam of the US Government. At the same time, the connection and promote cooperation between the two Governments will help organizations and enterprises of the two countries to have the opportunity to connect with many commercial activities.

According to the project investor, Bac Lieu wind power plant is implemented in 3 phases. The 1^st phase has been operated since August 2013 and used 10 wind turbines which were produced by the General Electric Company, with capacity of 16MW. After 19 months of operation, it has provided about 60 million KW of electricity into the national grid. The 2^nd phase of the project is being implemented and the number of wind turbines will increase by 50, which is expected to go into operation by mid 2016.

Directed to complete a project with capacity of 300MW, in the 3^rd phase, the project will be extended to the sea of about 2.1 km. According to leaders of Bac Lieu province, the construction of the Bac Lieu wind power plant is included in the overall plan to solve the problem of energy, especially clean energy. Moreover, through the deployment of wind power plant project, it is showed the benefits for ecology, culture, protection of forests and fisheries resources.

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. 

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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POTENTIAL OF VIETNAM WIND POWER

Located in the monsoon subtropical area with long coastline, Vietnam has fundamental advantages to develop wind energy. When comparing the average wind speed in the East Sea of Vietnam and the surrounding sea areas, the result showed that wind in the East Sea of Vietnam is fairly strong and seasonally change.

The World Bank (WB) conducted a detailed survey about wind power in Southeast Asia, including Vietnam. According to this study, among the four surveyed countries, Vietnam has the largest potential for wind power and better than the neighboring countries like Thailand, Laos and Cambodia.

Vietnam has 8.6% of the territory is rated as “good” and “very good” for the construction of large wind stations, while in Cambodia, Laos and Thailand, the numbers are 0.2%, 2.9% and 0.2% respectively. The total wind power potential of Vietnam is estimated to reach 513,360 MW, more than 200 times the capacity of Son La Hydropower Plant, and more than 10 times the total forecasting capacity of the power sector in 2020.

Vietnam has up to 41% rural areas that can develop small wind powers. Comparing this figure with the neighboring countries, the rural areas that can develop wind power in Cambodia, Laos and Thailand are 6%, 13% and 9% respectively.  It is indeed a privilege for Vietnam.

In Vietnam, the areas that can develop wind power do not spread across the entire territory. With the influence of monsoon, the wind regime is also different in each area. If the northern of Hai Van Pass, the strong wind season coincides with the northeast wind season, in which the most potential areas are Quang Ninh, Quang Binh and Quang Tri. In the southern part of Hai Van Pass, the strong wind season coincides with the southwest wind season, in which the most potential areas are the Tay Nguyen area, the coastal provinces of the Mekong Delta and especially the coastal areas of Binh Thuan, Ninh Thuan.

According to research conducted by the World Bank, in the territory of Vietnam, the two most potential areas for wind energy development is Son Hai (Ninh Thuan) and sand hills at the height of 60 – 100 meters from the west of Ham Tien to Mui Ne (Binh Thuan). The advantages of these areas are high average velocity wind, less storm and stable wind trend. They are the favorable conditions for wind energy development. During the monsoon months, the proportion of south and southeast winds are up to 98% with an average speed of 6 – 7m/s. It means that we are able to build the wind stations with capacity of 3 to 3.5 MW.

In fact, people in Ninh Thuan have also created a number of homemade small wind generators for the purpose of lighting. Both these areas are sparsely populated with hot and dry weather. Moreover, this is the ethnic areas with special difficulties of Vietnam.

Although there are many advantages as mentioned above, but when mentioning wind energy, we need to note a number of unique features to be able to develop it in the most effective way.

The biggest disadvantage of wind energy is the dependence on weather condition and wind regime. Therefore, at the design stage, the wind regime, terrain and type of wind without turbulence flows which badly affect the transmitter should seriously be studied. Moreover, although wind power is becoming more popular but it cannot be used as the main energy. However, the possibility of the combination between wind power and storage hydropower will open up opportunities for Vietnam to develop energy in areas such as Tay Nguyen, which has advantages in both of these kind.

Another noted point is that the wind power stations will cause noise pollution during operation as well as disrupt the natural landscape and could affect the signal of the radio waves. Therefore, when constructing wind power stations, it is needed to calculate reasonable distance to residential areas and tourist resorts in order not to cause negative impacts.

In order to meet the goal of ambitious growth, in the medium term, Vietnam should continue to exploit the traditional energy sources. In the long term, Vietnam needs to develop strategy and roadmap for the development of new energy sources. In this strategy, the economic costs (including internal and external expenses on the environment and society) need to be analyzed carefully, taking into account new developments in technology, as well as reserves and price movements of alternative energy sources. In these new energy sources, wind power has emerged as a worthy choice and therefore need to be fully assessed.

Vietnam has many advantages for the development of wind energy. If Vietnam does not invest in research and development of wind power will be a huge waste because the risk of power shortage is always permanent, affecting economic growth and national competitiveness. Meanwhile, the current national strategy for power seems only interested in hydropower and nuclear power – the energy sources with huge initial investment and many hidden risks on both environment and society.

In the world, the development of wind power is a major trend, showing the highest growth rate compared with other energy sources. Unlike nuclear power which needs a complicated technical process and strict supervision, the construction and installation of wind power does not require such rigorous processes. With the experiences of successful development of wind power in India, China, Philippines and the geographical advantages of Vietnam, Vietnam can completely develop wind power and contributing to the overall development of the economy.

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VIETNAM MARKET RESEARCH

Market research is an important operation. If the market research is well done, it provides accurate information to help marketers make an appropriate strategy and then, bring high efficiency in business. In other words, if the result of market research is inaccurate information and does not correctly reflect the actual market situation, marketing activities will be inefficient.

Companies would fail if underestimating the importance of market research before entering a new market.

Therefore, market research activity is so important for whomever needing success. Namely, the market research is considered an active approach to enter into the market. The market research also helps you understand the latest development in the target market, thereby making marketing decisions quickly. The international business environment is quite volatile, that‘s why you need a proactive approach like that and it is really your competitive advantage.

Through the market research, you can form the idea of developing a new product and choose the correct strategy for that product in each specific market. Through research, you also do not have to waste money and effort for the false hope, especially when you export the products to oversea for the first time. On the other hand, it should be noted that although the market research does not make sure success in business, it will help you avoid many wrong decisions.

Market research service can:

• Help find the biggest market for your products, the fastest growing market, trends and prospects of market, conditions, business practices and opportunities for your product on the market.
• Allow to make efforts effectively in a field or a certain range. After that, you can set the priority for a specific target market and plan for the future market.
• Help understand the competitors, including strengths and weaknesses, mistakes and their causes of success.
• Help find ideas to develop new products.
• Helps strengthen business relationships with partners.

If you wish to explore investment opportunities, before setting-up company, or learn benefits of doing business in Ho Chi Minh City, or doing business in Hanoi, let us help with market research.  Please contact us via emailant@antconsult.vn or call our office number: +848 35202779 (HCMC) or +844 39388751 (Hanoi).

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THAI BILLIONAIRES AND M&A ACTIVITIES IN VIETNAM

The billion-dollar acquisitions of Thai billionaires have brought Thailand to become a formidable force in M&A activities in Vietnam and Asia.

Big C Vietnam has fallen into the hands of billionaire Tos Chirathivat – the boss of Central Group (Thailand) from Casino Group (France) for 1.05 billion USD. In 2015, this group also spent about 100 million USD to acquire Nguyen Kim – the leading retailer in the electronics market. Recently, the Group also spent 10 million USD to acquire the business segments in Thailand and Vietnam of Zalora (belongs to Global Fashion Group of Rocket Internet Corporation).

Previously, billionaire Charoen Sirivadhanabhakdi – owner of TCC Holdings (Thailand) spent 655 million Euros to buy 19 centers and relating real estates of Metro Cash & Cary Vietnam. Also, Berli Jucker (BJC), a subsidiary of TCC Holdings also acquired Family Mart Vietnam. Especially, along with the acquisition of Metro Cash & Carry Vietnam, billionaire Charoen Sirivadhanabhakdi also through the Singapore Beverage Group – Fraser & Neave (F&N) became the 2^nd largest shareholder in Vinamilk with 11.04% share. Currently, Thaibev which also belongs to this billionaire is racing to buy 40% share in Saigon beer (Sabeco), with a value of 1 billion USD.

In fact, the trend that Thai businesses acquired businesses outside their national borders is not new. In 2012, Siam Cement Group (SCG) of Thailand signed an agreement to buy 85% share in Prime Group JSC (Vietnam) at the price of 7.2 billion Baht (nearly 5,000 billion VND). This is also the biggest M&A deal in the field of building materials in Vietnam so far.

In the plastic industry, currently, SCG has invested in more than 20 Vietnam plastic enterprises. Particularly, the most significant  investment is to buy 80% share in Tin Thanh Plastic Company, a top enterprise in the field of plastic packaging of Vietnam. SCG also holds large shares in 4 companies specialized in manufacturing plastic household – packaging in Vietnam, which are Vietnam – Thai Plastchem Joint Venture, TPC Vina Plastic and Chemical, Minh Thai and Chemtech Plastic Materials.

Currently, SCG is also the 2^nd largest shareholder in Tien Phong Plastics and Binh Minh Plastics, just after State Capital Investment Corporation (SCIC). Moreover, SCIC planned to divest from this two plastics companies. This will create opportunities for Nawaplastic Industries to increase its shares in Tien Phong Plastics and Binh Minh Plastics. SCG continues to seek opportunities to invest in Vietnam’s plastic industry.

Most recently, the Ton Poh Thailand Fund has spent 130 billion VND to buy 5.9 million shares of Hoang Huy Investment – Service Company, equivalent to 5.32% of the charter capital of the company. In addition to Hoang Huy, Ton Poh Thailand Fund also owns nearly 6% share of Cotec Construction Company.

An open economic space will create significant opportunities for investment flows. The formation of the ASEAN Economic Community (AEC) and the Trans-Pacific Partnership Agreement (TPP), which expected to take effect from 2018, is the impetus for  investment flows into the country in this area. The race has just begun for the countries, investors and Thailand businesses seem to hold this game.

The billion-dollar acquisitions of ambitious billionaires brought Thailand to become a powerful force in M&A activity in Asia. According to experts, the deal with the presence of Thai companies in theM&A market in Asia has increased rapidly, just behind China, Korea and India.

In particular, the market of more than 600 million people of AEC is considered as a more stable market than most emerging markets in the world. The growth opportunities for businesses here will be very attractive, regardless of Thailand, Vietnam enterprises or from other economies.

To sum up, according to economic analysts, the increase of M&A activities will be the obvious result due to the free trade between the countries in goods, services and human resources.

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:

• 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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BANKING SECTOR IN VIETNAM

1. Overview

Vietnam’s banking sector has shown significant improvement which results from stable inflation and interested rate, favorable environment for foreign direct investment and a shift from deficit to surplus of the country’s current account. This sector plays a crucial role in Vietnam’s economic development in recent years.

2.Banking system

There are two tiers in banking sector in Vietnam. The first one is State Bank of Vietnam (SBV) which is responsible for monetary policy and supervision/regulation of the banking system in Vietnam. The second one consists of commercial banks, financial companies, credit co-operatives, people’s credit funds, and insurance companies. The main activity driving banking system is commercial bank which includes 5 state-owned commercial banks, 33 joint stock commercial banks, 5 joint venture commercial banks and 5 wholly-owned foreign owned bank.

State owned commercial banks (SOCB) account for more than 40% of market share. The largest bank in terms of total assets, network and still 100% state owned share is Agribank. And four other SOCB areVietcom bank, Viettin Bank, BIDV and MHB.

Joint stock commercial banks (JSCB) have small capital/deposit base and more diversified shareholding structured compared to state owned commercial banks. There are currently 33 JSCB, which the leading ones are SaiGon Joint Stock Commercial Bank (SCB), Military Joint Stock Commercial Bank (MBB), Vietnam Export Import Commercial Joint Stock Bank (EIB), Asia Commercial Bank (ACB) and SaiGonThuong Tin Commercial Joint Stock Bank (STB)

Also SBV had granted 5 licences to permit HSBC, Standard Charter Bank, ANZ Bank, Shinhan Bank and Hong Leong Bank to establish as wholly-owned foreign banks

3.Potential opportunities for foreign investment

There are solid evidences to prove that Vietnam’s banking sector has such a huge potential for foreign investment

• Government effort of reforming banking system

• Trade agreements facilitate foreign ownership and investment

• Vietnam- a destination of foreign investment in South East Asian market

• Market Entry

• Tax Advice

• Legal Advice

• Outsourcing Services

SBV suggested that merge and acquisition of loss making and incompetent bank would be necessary to improve efficiency within the industry. For example, in 2015, SBV forced merge of loss making Vietnam Construction Bank to Vietcom bank with purchasing share price for 0 VND. By forcing merge and acquisition of incompetent banks, SBV has increased exploitation of economies of scale and the reduced burden on regulators

Have taken part in variety of trade agreement such as Trans Pacific Strategic Economic Partnership (TTP),  Association of Southeast Asian Nations (ASEAN) and Free Trade Agreement with different countries, Vietnam has made restructuring move to standardize banking system which will be compatible and accessible to other countries. Vietnam is required to have bilateral arrangement which eliminate the challenges of foreign establishment of banking services.

The government also encourages foreign investors to hold shares for five year period and partnering with the local bank to enhance management, capacity or new development. With the 30% limit of oversea ownership to domestic banks, the strategic foreign investors are allowed to acquire up to 15% of share in a bank, and up to 20% with Prime Ministerial approval. HSBC has also invested in a leading local bank, possessing a 20% stake in the Vietnam Technological and Commercial Joint Stock Bank—Techcombank. It is also the sole foreign strategic partner of the BaoViet Finance-Insurance Group, Vietnam’s largest insurance company. In a vote of confidence in the insurer, HSBC increased its stake to 18% in October 2009.

There is a huge untapped market in Vietnam. According to SBV, only 20% of more than 90 million citizens in Vietnam hold bank accounts and 3% of the population have credit cards. With 87% of the population under the age of 54, there is a great opportunity for retail banking activity development in Vietnam.

Also it is agreed that SME and rural areas have had challenges to access bank investment and loan. The data of Asian Development Bank shows that “lack the capacity to assess the risk of investment into SMEs and find bankable projects” and lack of knowledge about loan and lending systems for rural citizens are the main reasons leading to currentunder-banked circumstances.

The stable economic with GDP growth of around 6% to 7%; low wage costs; a large population with a high savings rate and lack of innovative approach to the market are advantages for foreign investors to accelerate financial and industrial development in Vietnam market.

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:

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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HIGHLIGHTS IN REAL ESTATE INVESTMENT IN VIETNAM

Vietnam is attracting interest of investors in both domestic and foreign market. Overall, investor confidence was returning to the Vietnam real estate market. Both buyers and sellers have enhanced activity in recent months.

The real estate market of Vietnam has overcome the recession period within 4 or 5 years ago but in the last 12 months, the market has recovered and noted positive signs as well as confidence in the market in general.

Law on housing and real estate business Law takes effect in July 2015 and has acted quickly and positively on the real estate market in Vietnam. The changes in the Law on housing have significantly eased the regulations on home ownership for foreigners, although there are still some limitations.

 “Hot spots” of FDI inflows

According to a recent report of Jones Lang LaSalle Vietnam (JLL), a series of free trade agreements such as TPP, EU and ASEAN will further promote the medium and long term development. Interest rates and inflation rate have declined significantly and became more stable in the past two years, helping the investment activity to occur more positive in both Ho Chi Minh City and Hanoi. With some domestic and foreign investors such as CapitaLand and Keppel Land, they have spurred the construction activities thanks to the growing revenue in the last 12 months.

Accordingly, the amount of disbursed FDI in the period from January to September of 2015 rose by 8.4% compared to the same period last year, reaching 9.7 billion USD. This is the strongest growth since the late 1980s, contrary to the slowdown of the Chinese economy. The amount of registered capital of new investors also rose even more sharply with 11 billion USD, focused primarily on the manufacturing industry, in which the energy and electronics industries are the sectors with the highest registered capital investment in the year, followed by the real estate sector.

According to the Ministry of Planning and Investment, FDI investment in the industrial park in Vietnam accounted for 67% of total FDI in Vietnam with 11 billion USD and accounting for 59% of the total 1,400 projects in the first 9 months of 2015. A notable transaction is the event that Amata Corporation acquired the land worth 279 million USD in Long Thanh (Dong Nai) for the purpose of building residential and industrial areas valued of 500 million USD.

According to JLL, the residential real estate prices in Vietnam maintained an average rate with 2 bedroom apartments, 70 m2, 10 – 15 minutes to reach the central area of Ho Chi Minh City, which are sold at the price of 1,600 – 2,000 USD/m2, equivalent to 112,000 – 140,000 USD/apartment. When compared with the big cities in the region, the price is believed to increase significantly.

Who dominated the real estate market of Vietnam?

JLL’s report showed that domestic investors are boosting investment activity in the real estate market of Vietnam. The largest real estate investors in Vietnam are Vingroup and Novaland Group.

Vingroup is Vietnam’s largest real estate development and management with market capitalization of about 3.4 billion USD. Vingroup’s investment portfolio includes 45 real estate projects spread across many sectors of the real estate market, including Vinhomes luxury apartments and villas; Vincom Center and Vincom Mega Mall; Vincom Office; 5 star Vinpearl resort; Vinpearl Luxury resort….

Novaland Group has participated in the real estate market in 2007 with the first project is Sunrise City with investment capital of 500 million USD located on Nguyen Huu Tho road, district 7. The real estatebusiness of Novaland focused on the apartment complex segment from mid to high classes and the segment of house land with 25 projects that are being implemented throughout the downtown districts.

Vietnam is becoming an attractive place for foreign investment in the medium term than many other countries in Southeast Asia. Data from Real Capital Analytics (RCA) recorded that there are more attention from a number of private investment funds that are allocated foreign capital into Vietnam in an attempt to increase their market presence in Vietnam.

In the 2^nd quarter of 2015, a joint venture of Warburg Pincus – a US investment fund, has invested 100 million USD into Vincom Retail, the Vietnam’s largest trade center ownership and management in Vietnam. Also in this quarter, Gaw Capital Partners has received the transfer of 4 real estate projects under various segments from Indochina Land with a total value of 106 million USD. Gamuda Land has also receive the transfer of 40% shares (equivalent to 64.1 million USD) in the Celadon City project, a modern urban area with initial investment by a joint venture between Sacomreal, Thanh Thanh Cong (TTC) and An Phu Gia.

The current real estate profit margin is high

JLL’s analysis shows that investors are now enjoying 6 – 7% profitability rate for residential real estate and 9 – 11% for commercial real estate, depending on location, completion time, quality of the project and the signing time of the tenants.

According to General Director of JLL Vietnam, real estate investment in emerging markets has always been seen as risky investments but with higher potential profits. Investors are willing to engage in joint venture projects in these markets, where they will combine with local investors who wish to have capital supporting – in order to have a foothold in the market before and also experience the exponential growth in the future when the economy of these market growing fast.

Moreover, the emerging markets such as Vietnam will have the potential growth factors, including population growth and high urbanization rate. Investors and project developers can take advantage of these factors.

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:

• 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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