Thứ Năm, 30 tháng 6, 2016

VIETNAM IS THE FOCUS OF FOREIGN INVESTORS

BY Linh Pham IN , , , , , , No comments

With favorable conditions in macroeconomic, political and social, Vietnam is a potential destination for setting up company and conduct the M&A activity.

In Vietnam, the growth of the retail market and the entry of international brands, while the average income of consumers is increasing along with stable economic conditions are creating motivation for retail market. In addition, e-commerce sector is growing and accounts for a large part of total retail sales, although traditional forms of shopping still being preferred by consumers.
Moreover, the liberalization of the retailmarket in 2009 created favorable condition for foreign brands to join and domestic brands are constantly expanding in order to maintain market presence. The most developing sectors of the retail segment are food & beverage (F&B) and consumer products.
Vietnam Retail Market
Prospect for the Asian retail market is very positive, the average growth rate in retail sales is 8.5% in the last 5 years. The number of tourist increases is promoting retail activity in the shopping venues with a prime and convenient location. Although the development of e-commerce in the region is now very noticeable, but the traditional forms of shopping still has an important position in the market. The store owner will need to focus on improving the shopping environment and concerning about the customer experience in order to increase competitiveness.
According to Cushman & Wakefield, in the next 5 to 7 years, approximately 1.5 million m2 of retail floor space will enter the Ho Chi Minh City market of retail space, bringing the total number of retail area to nearly 2.5 million m2. The retail market will be busy, especially in the affordable and intermediate segments. The powerful foreign retail corporations will consider Vietnam as potential market in the region, demonstrating that in the period 2014 – 2015, the retail and consumer goods are the mainstream of M&A activity in the world, accounting for 36% of the total value of M&A activity in Vietnam.
In addition, Vietnam ranked 32nd in the list of nations that have the shopping streets with the most expensive rent cost in the world, in the context of Vietnam is preparing to join a series of free trade agreements such as AEC and TPP, then this will cause domestic retailers to face with many difficulties because rent cost plays the 2nd important role (after the location) in business strategy. When foreign retailers have strong financial resources, they can afford to hire premises with the most favorable location in the market.
Vietnam Tourism Real Estate Market
Many promient investors have visited Vietnam to explore the market potential. In the real estate segment, Kevin Green, one of British’s leading millionaires has just come to Vietnam to experience the market. He interested in tourism real estate and especially Sapa when the Hanoi – Lao Cai highway has completed. Moreover, the Fansipan cable car when completed will attract huge number of tourists to come here. Convenient transportation is a golden opportunity for tourism real estate.
Sapa is currently attracting around 2.5 million visitors. This figure is expected to rise to 5 million in 2020 due to infrastructure connections between Sapa and other areas are increasingly improved.
When talking about investment opportunities in tourism real estate in Sapa, Kevin Green said that Sapa has a lot of potentials for investment. He interested in the resort project “Sapa Jade Hill”, which is currently being developed. He also works with investors to be able to offer this product to abroad market, while completing the procedure to purchase Sapa Jade Hill villa for long term investment.
Reportedly, Sapa Jade Hill is a key project in Sapa, developed by Truong Giang Sapa and by Dai Hung Investment and International Trade JSC (GBI Land) with a total investment of nearly 2,000 billion USD. This project has completed Phase 1 with 19 service villas, which was sold out and handed over the red book to customer.
In addition, in the Property Expo Conference was held in Hanoi, Kevin Green and enrichment experts have shown a huge shift of capital flow from foreign companies, factories to Vietnam, then this is the most ideal place for real estate investment within the next 5 -10 years. The employment index is an indicator of the increase in value of real estate, as the number of workers in the industrial zone of Vietnam is on the rise.
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



Thứ Tư, 29 tháng 6, 2016

AGRICULTURE IN VIETNAM

BY Linh Pham IN , , , , No comments

Among many economic sectors in Vietnam, agriculture has always been a traditional and long-standing industry.

Vietnam now has 10.3 million hectares of arable land, majority of which is used for export. The exported agricultural products in Vietnam accounts for about 20% of Vietnam’s total export value. According to data from the General Statistics Office, the total export turnover of the whole sector in 2014 was around 30.86 billion USD, increased 11.2% compared to 2013. The sector’s trade surplus is estimated at $ 9.5 billion which increased 7.7% compared to 2013. Most of the exported products increased compared to 2013, such as: seafood products reached 7.92 billion US dollars; total value of wood and wood products was 6.54 billion; Coffee reached $ 3.6 billion; vegetables reached 1.47 billion USD; Pepper’s value was $ 1.2 billion; cashew nuts reached $ 2 billion.
Foreign investors today are looking for opportunities in Vietnam. When the Economic Partnership Agreement Trans-Pacific Strategic (TTP) was signed, there have been more exporting opportunities for Vietnam agricultural products. According to a study in 2014 of the United States Department of Agriculture, Vietnam should make use of “potential commercial development of agriculture” due to the implementation of the TPP agreement. Coffee and rubber has “received enough” benefits from the last trade agreements, TPP would probably be not much beneficial to these groups. However, rice, cassava, pepper, processed foods, and honey will have more opportunity to export, while meat, dairy, and fruits are likely to suffer from the greater competitiveness since US will increase to export these products to Vietnam.
The equitization of large state-owned enterprises in Vietnam from the Decree 37 of 2014 have had huge influence in the agricultural sector. The government planned to withdraw 3.2 trillion VND (150.6 million dollars) from 167 enterprises of the Ministry of Agriculture & Rural Development (MARD). In 2014, the Government has executed equitization 776.2 billion (36.5 million dollars) from 28 member enterprises of Vietnam Rubber Group (VRG), and 54 billion (2, 5 million dollars) from the Southern Food Corporation, reaching 17% of targeted equitization. Also in 2014, the Ministry of Agriculture and Rural Development has also executed equitizationof Agriculturaland Rural Development Corporation, National Fisheries Vietnam, Vietnam Tea Corporation, Agricultural products and Fruit Corporation, Vietnam National Forestry Corporation, Southern Food Corporation, and Vietnam National vegetablesCorporation.
Ministry of Agricultural and Rural Development maintains the level of investment of 3.6 trillion VND (167.6 million dollars) in 13 corporations and companies as well as continue equitisationof Forestry Corporation, General AgriculturalCorporation, 3 units of the Vietnam Rubber Corporation, 7 units of the General Southern Food Corporation, and 5 units of the Vietnam coffee Corporation. This will be a good opportunity for investors to select opportunities for themselves in the future.
In addition to these opportunities, Agricultural industryhas been facing some challenges which include uncompetitive technology, poor infrastructure, poor labor skills, and low quality of exported products; also the environmental challenges such as climate change, the rise of sea levels, deforestation and soil erosion. According to the world Wide Fund for Nature (WWF), Vietnam had lost 43% of forest cover from 1973 to 2009.
However, the Government of Vietnam has been taking steps to improve agricultural industry seriously, seeking methods to protect environment and increasing investment in infrastructure, including roads and irrigation system. Vietnam’s government has been working with other governments, especially Japan and South Korea, to encourage the exchange of technology to help Vietnam’s export become more competitive. The government has also increased investment in agricultural science at the University and industrial leaders. More than 10,800 scientists have been working in the agricultural sector, with over 1 trillion VND (46.9 million dollars) annually is spent on scientific research and technology transfer through MARD. This amount accounts for more than 1/3 of the total state budget for scientific research and technology transfer.
It can be seen, there has been a huge opportunity for growth and investment in Vietnam’s agriculture. However the remaining restrictions are also very challenging, requiring the innovation of enterprises in the industry from technology to management, which put Vietnam agriculture sector become more potential for investment in the future.
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



Thứ Ba, 28 tháng 6, 2016

PLASTIC INDUSTRY IN VIETNAM

BY Linh Pham IN , , No comments

Vietnam’s plastics industry is being evaluated as potential sectors with the maintaining stable growth rate of 16% – 18% during the last 5 years.

Due to benefit from a reduction of raw material and an increase in demand for plastic products, plastic manufacturing businesses have had experience strong growth.
10 plastic business on the stock market has had a successful year of 2015 with a total revenue of 13 trillion, increased 15% and net profit of approximately 1.1 trillion, increased 30% compared to 2014.
Besides, the business transaction in the quarter I/2016 was also very positive, with total revenue and profits reached 3.1 trillion and 367 billion respectively, increased 20% and 78.1% respectively compared to the same period of 2015. Therefore, the local enterprises have been expanding the production capacity.
In the past 3 years, there has been an impressive, reaching 15% -17% per year.
According to the reports of BIDC Security Company (BSC) in 2016, the demand for plastics in 2016 is forecasted to keep growing. This is based on factors such as the consumption of plastic per capita will increase and reach 45 kg / person / year in 2020. Also the recovery of realestate and construction industries in the near future will promote the consumption of plastic products.
Besides, the trend of moving production to Vietnam and increasing foreign direct investment will lead to the growth of technical plastic. Also raw material prices continue to drop, thus helping plastic manufactures to be more active in their production.
Due to many favorable factors of businessenvironment, the plastics manufacturers have invested in the scale of manufacturing capacity. It is mentioned that An Phat Plastic (AAA) has been building 2 plants: No. 6 (with a capacity of 3,000 tons / month) and No. 7 (capacity of 800 tons / month), which specializes in exporting bio-plastic bags to the markets such as Japan and the US.
In June 2015, HCD investment and commercial joint stock company planned to invest new production line of bio-plastic bags (similar technology to AAA) in Q3 with capital of over 100 billion after a significant increased im profit.
Meanwhile, Binh Minh Plastics (BMP) has put Long An Factory in operation since the end of 2015 to meet greater domestic consumption. Tien Phong Plastic has approved the merger of Five Star Plastics to launch the manufacture (Phase 1) in the central of Vietnam with a capacity 10,000 – 15,000 tons / year.
East Asia Plastics (DAG) also putprofile sheet production plant into operation in 2015 with the expectation to become a leader of plastic used in construction and adverting material.
Besides the expansion of the plants, the domestic enterprises have also focused on M & A to strengthen and expandmarket share such as Plastics Phat holds 30% stake of Plastic Packaging Vinh (VBC) or Dong Nai Plastics (DNP ) acquires Tan Phu Plastic (TPP)…
Thai enterprise desires for plastic enterprises in Vietnam.
From 1990 to present, the consumption of plastic Vietnam has shown rapid growth which proves that the demand for plastic products in Vietnam would be fertile land for enterprises’ exploitation. Besides, Vietnam has joined the Trans-Pacific Partnership (TPP), investors are pouring into this country to take advantage of this.
Siam Cement Group (SCG) in Thailand has invested in more than 20 plastic companies in Vietnam in which 20% share of Binh Minh Plastic and 23.8% share of NTP – 2 current market leader in plastic used inconstruction. Last year, SCG bought 80% stake of Tin Thanh Plastic Company – top 5 manufacturers of plastic packaging in Vietnam.
SCG and other Thai corporations are continuing to purchase plastic companies in Vietnam. Some Thai companies have shown strong interest in acquiring all the shares that the state divested in plastic enterprises in 2016. Therefore, certainly, Vietnam will have to witness many of the other acquisitions of Thai companies in plastic industry and many other industries. According to published information, SCG will spend total of 5-6 billion USD for M&A in Vietnam by 2020.
Many experts, in the coming period, the plastic industry will maintain high growth rates in both revenue and profitability due to a series of trade agreements signed. However, if local enterprises are not alert, they will lose this piece of bread into the hands of the Thai people as it has currently happened to the retail industry in Vietnam.
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 could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn



POTENTIALS OF VIETNAM LOGISTICS INDUSTRY

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When Vietnam joins the TPP, Vietnam logistics industry has many opportunities to develop and engage more deeply into the world’s logistics centers…

According to the report of World Bank, the forecasted growth rate between 2015 and 2020 is 12%/year and import export turnover reached 623 billion USD in 2020, Vietnam is a promising destination for investors.
According to the statistics from the Vietnam Logistics Business Association (VLA), Vietnam’s logistics costs accounted for about 25% of GDP per year, much higher than countries such as the US, China or Thailand.
In the coming time when TPP agreement takes effect with many tariffs equal 0%, the export-import operations in Vietnam will promise to develop strongly. This is considered a great opportunity for the logistics industry to “boom”.
As an important link of the economy, the logistics activities help the goods to reach consumers and ensure the materials for the production process.
Despite facing strong competition from foreign rivals, many experts still appreciate the future prospects of the domestic logistics enterprises, especially in the context of free trade agreements (FTAs, TPP) boosted FDI inflows pouring into Vietnam industries.
On the other hand, the increasingly improved infrastructure in Vietnam will strengthen connectivity between logistics facilities and production areas; planning and supporting from the State, along with customs procedures are gradually improving in a positive direction.
In the recent two years, a series of key infrastructure projects have been started and completed as Long Thanh – Dau Giay  highway, Noi Bai – Lao Cai highway, Ha Noi – Hai Phong highway, Ben Luc – Long Thanh highway Highway 51 connecting industrial park with the ports and Soai Rap channel dredging works (in Hiep Phuoc port) and Thi Vai – Cai Mep channel…
In addition, the Government and the Ministry of Transport have launched a number of policies to guide, support and stimulate the sustainable development of the domestic logistics industry such as: policy to control road loading, preferential policies for Vietnam ships on domestic routes, the draft to establish port authorities to develop ports and port services, Decision No. 1037/QD-TTg on the port development plan till 2020…
Moreover, according to the General Department of Vietnam Customs, Vietnam is also actively developing and implementing the ASEAN Single Window mechanism. The implementation of this process will benefit the business community, including logistics businesses such as reducing the time taken for administrative procedures and also cost reduction.
However, in order to develop logistics industry, the State should build and complete the legal framework, standardized service processes, upgrading infrastructure and human resources for the field of logistics.
Government should also take measures to guide and promote logistics companies to link together, formed the company with strong capabilities, able to compete with foreign companies.
With the above subjective and objective elements, Vietnam’s logistics industry still have great potential to develop and first of all, they will have conditions to advance to move towards to same level with foreign logistics businesses in the region.
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 could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn




Chủ Nhật, 26 tháng 6, 2016

VIETNAM’S OIL AND GAS INDUSTRY CONTINUES TO GROW

BY Linh Pham IN , , No comments

Vietnam oil and gas industry has a great potential as it plays a vital role in Vietnam’s industrial development.

According to a report by the Vietnam Ministry of Industry and Trade, oil production in Vietnam in April 2015 reached 1.5 million tons, up 7.2% from the last year’s figure. Gas production reached 0.9 billion cubic meters (+1.8%), and production of liquefied petroleum gas (LPG)—60.3 thousand tons (+2.9%). During the same period of time, Vietnam produced 6.1 million tons of oil (+8.9%) and 3.5 billion cubic meters of natural gas (+1.6%). In contrast, the amount of liquefied petroleum gas produced fell by 12.2%, down to 241.3 thousand tons. The country produced 12.5% more petroleum products, some of which saw greater production rates than the average for the industry. Over the 4 months of 2015, the country produced 2.26 million tons of petroleum products, the source reported. According to the Vietnam Ministry of Industry and Trade, the overall performance of the oil and gas industry is in line with the targets set out for the sector.
Opportunity for oil and gas equipment, service and distribution enterprise to set-up business and invest in Vietnam has been predicted positive.
Vietnam’s expanding offshore exploration and production have created steadily growing market for offshore oil and gas equipment and service. In general, suppliers of oil and gas equipment and service are quite competitive in the upstream and midstream sub-sectors where advanced technologies and reliability are strict requirements. Offshore enterprise will find significant opportunity for exporting their equipment and services in Vietnam with many offshore oil and gas exploration and production projects, as well as several gas pipeline projects. The number of projects is likely to increase substantially over the next few years as PetroVietnam awards new oil and gas blocks to foreign oil and gas companies.
A quick overview of Vietnam oil and gas industry
Vietnam’s oil and gas industry is currently the country’s biggest foreign currency earner and a major procurer of imported technology. Since the first export shipmentin April 1987, crude oil has earned over US$17 billion for Vietnam. The oil and gas industry contributes US$1 billion to Vietnam’s State budget every year. The rapid expansion of Vietnam’s economy has fueled a surging demand for energy, which is projected to grow at the rate of over 10% annually. To meet this need, the Government of Vietnam is encouraging investment from both local and foreign sources in offshore oil and gas exploration and production.
Oil in Vietnam
Vietnam is ranked third in the Southeast Asian region and 31st in the world in terms of crude oil and gas output. Among the 50 field structures with proven oil and gas reserves, 20 commercial fields have been developed. Vietnam has 600 million barrels of proven oil reserves. Bach Ho (White Tiger), RangDong (Dawn), Hang Ngoc, Dai Hung (Big Bear), and Su Tu Den (Ruby) are the largest oil producing fields in the country. Crude oil production averaged average volume of 500,000 barrels per day.
Vietnam is a small exporter on the world oil market, currently supplying about 0.6% of global demand. The United States is named as the biggest importer of Vietnam’s crude oil, accounting for 27.9% of the country’s export volume, followed by Singapore with 27%, Japan 22.2%, China 18%, the Netherlands 2.8% and Malaysia with 2%.
Gas in Vietnam
Vietnam has proven gas reserves of 6.8 trillion cubic feet. Besides crude oil, Vietnam also produces associated and natural gas from several fields. Vietnam’s natural gas production and consumption have been rising rapidly since the late 1990s, with further increases expected as additional fields come on stream. Natural gas iscurrently produced entirely for domestic consumption. The Cuu Long basin offshore from the Mekong Delta in southern Vietnam, a source of associated gas from oil production, is the largest Vietnamese natural gas production area. Only two fields in Vietnam have been developed specifically for their natural gas potential: Tien Hai, with a potential output of 1.76 million cubic feet per day, and LanTay/ Lan Do in the Nam Con Son Basin, which began producing over 5 million cubic feet per day in 2002. In the Nam Con Son Basin, a $565 million, 230-mile pipeline has been completed connecting the Lan Tay and Lan Do fields to the mainland at Vung Tau. The Nam Con Son project consists of five sub sea wells linked to aproduction platform and a pipeline leading to an onshore treatment plant. Gas is piped to three generating plants at the Phu My industrial complex, where electricity is provided primarily to areas surrounding Ho Chi Minh City. Output from Nam Con Son has reached 88 billion cubic feet. The project currently supplies the Phu My 1, My 3, Phu My 2.1 power plants and the extended Phu My 2.1 plant. Phu My 2.2will soon begin using output from the field. A consortium headed by KNOC of Korea, signed a 23-year contract with PetroVietnam in 2002 to install facilities to pump and supply 130 million cubic feet per day of natural gas to Vietnam. The natural gas, located in the Rong Doi and Rong Doi Tay fields on Block 11-2 of the Nam Con Son Basin, is sold to PetroVietnam,which then resells most of the volume to Electricity of Vietnam (EVN). Production at the fields began in 2005. In 2004, KNOC and PetroVietnam signed agreements to further exploit natural gas in both Blocks 11 and 12. Construction of an additional pipeline to bring ashore natural gas from block 11 began in 2005, and is scheduled for completion in 2006.The Su Tu Den and Rang Dong oil fields, both of which have considerable reserves ofassociated natural gas, are located near the 62-mile pipeline from the Bach Ho field.An estimated 60 million cubic fee per day of gas from the fields is earmarked forconsumption in power plants in southern Vietnam.Both TotalFinaElf and ChevronTexaco have found natural gas in exploratory drillingin the Malay basin. Additionally, Talisman Energy has found natural gas at the CaiNuoc field in block 46. The discovery is close to block PM-3-CAA, which straddles the maritime border with Malaysia, and is expected to contain up to 100 billion cubic feet of recoverable gas reserves.
A contract was awarded to Mc Dermott International in March 2006 for construction of a 200-mile pipeline, which will transport natural gas from the PM3-CAA block to Ca Mau province in southern Vietnam. It is scheduled for completion in 2007.
Oil Refineries in Vietnam
Although it is a significant oil producer, Vietnam remains reliant on imports of petroleum products due to a lack of refining capacity. Most of Vietnam’s crude oil is exported to refiners in the United States, Japan, Singapore, and South Korea. Vietnam is contemplating development of two oil refineries: the Dung Quat refinery with a planned capacity of 6.5 million tons per year and an estimated total investment of $1.5 billion, and the Nghi Son refinery with estimated capacity of 7 million tons and $3 billion in investment. According to many industry experts, the decisions to build these two facilities were based largely on political considerations, raising questions regarding their commercial viability. Nevertheless, after several years of delays in financing, the construction of the $1.5 billion Dung Quat Refinery, located in Quang Ngai province, finally began in November 2005. More than $1 billion has been invested. Vietnam’s distribution infrastructure is discontinuous, with the north and south of the country functioning to some extent as separate markets. Completion of the Dung Quat Refinery, located in the center of Vietnam, led to greater interaction between the regions. A second refinery project, with investment of $3 billion, is located at Nghi Son, north of Hanoi in the Thanh Hoa province. In August 2004, Mitsubishi Corporation agreed to participate in building Nghi Son for completion in 2010. Vietnam has also contracted a feasibility study for a third oil refinery, to be located at Vung Ro in the southern province of Phu Yen, close to both currently producing oil fields and the major markets in southern Vietnam. The Vietnamese government hopes to complete the refinery within 12 years. PetroVietnam is proceeding slowly with the development of the third refinery in light of the other two projects discussed above.
Oil and Gas Players in Vietnam
Vietnam Oil and Gas Group (also known as PetroVietnam or PV), the national oil and gas monopoly that is monitored by Vietnam’s Ministry of Industry on behalf of the Vietnamese government, is empowered to make decisions on strategies, plans and policies for the development of the industry, including cooperation with foreign entities, signing petroleum contracts as well as implementing, monitoring, inspecting and supervising petroleum activities.PV has supplied up to 70 percent of services for the domestic oil and gas industry andis also a businesspartner with foreign companies in the oil and gas sector. Any oiland gas exploration and production activities by foreign entities in Vietnam aresubject to cooperation with PV.Vietnam’s largest oil producer is Vietsovpetro (VSP), a joint venture (JV) betweenPetroVietnam and Zarubezhneft of Russia. VSP operates Vietnam’s largest oil field,Bach Ho. Other foreign partners include Conoco Phillips, BP, Petronas, and Talisman Energy.
Vietnam’s storage and transportation division, Petrolimex,recently completed a new oil storage facility in the central Khanh Hoa province. The depot is largest in the country, with a total storage capacity of 3.68 million barrels.To date, exploration rights for only 25-30% of the country’s continental shelf with hydrocarbon potential have been awarded. Forty-nine foreign oil and gas companies with exploration contracts operate under Product Sharing Contracts (PSC), Joint Operating Companies (JOC) and Business Co-operation Contracts (BCC), with total registered investment capital of more than $7 billion. The remaining offshore areas, generally with water depths of 200 meters or more, are unexplored and open for new bidding.
Oil and Gas Products and Services in Vietnam
Vietnam’s expanding offshore exploration and production has created a steadily growing market for offshore oil and gas equipment and services, which is estimated at $1.2 billion in 2006. American equipment and services have captured about 15% ofthe market and this share is expected to expand over the next few years. In the local market, American companies are well known as world leaders for advanced technologies, quality, and experience in the offshore oil and gas sector. These U.S.firms are currently the most successful in the oil and gas sector in Vietnam. In general, U.S. suppliers of oil and gas equipment and services are quite competitive in the upstream and midstream sub-sectors where advanced technologies and reliability are strict requirements. Sales opportunities are promising in the following areas:
• 3-D Seismic Survey Equipment
• Blowout Preventers
• Buildings
• Chemicals
• Computer and Wireless Technologies
• Corrosion and Abrasion Control
• Cranes, Hoists, and Winches
• Deep-Sea Drilling Services
• Enhanced Recovery Equipment Services
• Fishing Tools
• Instruments and Control Systems
• Logging and Formation Evaluation
• Marine Equipment and Services
• Offshore Engineering & Design Services
• Offshore Platforms (Fixed and Floating)
• Offshore technology licensing
• Perforating and Testing Services
• Pollution, Oil Spill Control, and Environmental Technologies
• Power Supply, Engines, and Turbines
• Process Equipment
• Production Equipment and Services
• Project management services
• Pumps and Compressors
• Ropes, Wire Ropes, and Chains
• Rubber Products
• Software Engineering Services & Equipment
• Tools• Tubes and Piping
• Valves and Actuators
• Wellhead Assemblies
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.  
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn



Thứ Năm, 23 tháng 6, 2016

THE GROWTH TREND OF VIETNAM TELECOM INDUSTRY

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Vietnam telecom industry is a major sector of the economy, contributing to the development of the whole country. This sector is promised to develop rapidly in the future.

Presently, the global economic integration is the inevitable trend of the world, including Vietnam. When Vietnam opens its market and participates in the large economic organizations, the domestic industries and services will have to face with a huge competitive pressure.
The foreign corporations and companies with abundant capital, modern technology and many experiences in business management will be formidable competitors of the Vietnam businesses. Among many economic sectors, the telecommunication – informatics – information technology sector is considered to play vital role and has made important contributions to economic development. This sector is not only a key economic factor in the integration process, but also has helped to raise the public awareness, as well as contributing to ensure national security and social order. Therefore, the telecommunication – informatics – information technology sector needs to have positive changes, promote expansion and diversification in order to develop the economy in line with global integration.
It can be seen that telecommunication – informatics – information technology sector has always been a potential industry of Vietnam. According to a recent evaluation by expert from Kyunghee University – Korea, Vietnam’s telecommunication – informatics – information technology sector is growing faster than other countries at the same level and this sector also has great potential for development in the future.
The telecommunication market of Vietnam now includes many different types of service, of which there are two main types that are mobile telecommunication service and internet service. In the past period, due to the high competition among telecommunication service providers that customers had more favorable conditions for access to telecommunication and information technology services, lowering the prices of mobile telecommunication and broadband internet services compared with other countries in Southeast Asia.
For the telecommunication market, the race on rates and competition in products and services of the large networks are happening increasingly fierce between local and foreign suppliers. The level of competition on the telecommunication market of Vietnam is forecasted to be more intense as the market has entered the period of saturation and many new service providers have appeared in accordance with WTO accession commitments.
Besides, the training of personnel for the field of informatics – information technology will continue to be focused in the future. In fact, the information technology business is still very understaffed, while many graduated students are unemployed or working in other professions. Therefore, in order to meet the needs of high-quality personnel for the information technology companies, Vietnam has to improve the quality of education from the levels of college, university as well as encourage employees to frequently accessing to new technology, promoting creativity and initiative in their works.


Thứ Tư, 22 tháng 6, 2016

VIETNAM PROMOTES THE DEVELOPMENT OF WIND POWER

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The very first wind power plants, one in Binh Thuan and one in Bac Lieu, can be considered a breakthrough to pave the way for the construction of Vietnam’s wind power industry, which is expected to be pillar of the future power source in Vietnam.

 In the field of renewable energy, hydropower and wind power are considered clean power sources
In fact, hydropower has hidden dangers for communities. On the other hand, wind power is friendly and gentle to humans. We can consider hydropower as an old power source and the wind power is the young one. While hydropower has been playing a vital role in the power industry of many countries, wind power has only been noticed and invested for about 5 – 10 years.
With the wind power plants in Bac Lieu, Binh Thuan and Ninh Thuan, recently, Vietnam Prime Minister has agreed to invest in a wind power plant in Khai Long resort – Ca Mau.
Under the direction of the Government, the investment objective of the above project is to build a wind power plant, connecting to the national electricity system and sell electricity through power purchasing agreement with the Electricity of Vietnam (EVN), contributing to ensure national energy security.
The plant will be built in Khai Long Village, Dat Mui Commune, Ngoc Hien District, Ca Mau. The total installed capacity is 100 MW on an area of land and sea of approximately 2,165 hectares.
The project will be implemented in the period from 2016 to 2018.
According to the Ministry of Industry and Trade, Vietnam currently has nearly 50 registered wind power projects but only about 10% of which are under construction, of which 3 projects are producing commercial electricity, which are Tuy Phong wind power project (Binh Thuan) with capacity of 30 MW; Phu Quy island wind power project with capacity of 6 MW in Binh Thuan; Bac Lieu wind power project with capacity of 16.5 MW.
Most recently, Phu Lac wind power project (Binh Thuan) with capacity of 20 MW and the total investment of nearly 1,100 billion USD has been started construction in July 2015.
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



Thứ Ba, 21 tháng 6, 2016

VIETNAM REAL ESTATE SECTOR REVIEW

BY Linh Pham IN , , , , No comments

Real estate is one of the sector with important position and role for the national economy, have a direct relationship with the financial and monetary market, the construction market, building materials market and the labor market… The sustainable development and effective management of this sector will contribute significantly to promoting economic-social development, creating the ability to attract investment capital, contributing to the development, industrialization and modernization of the country.

There have been more favorable developments for the country’s economy in 2015 and 2015. The prices of oil continued to fall; GDP grows at stable rate around 6%. The inflation rate was controlled at 4.09% average; reduced deposit rates, lending rates were adjusted down to 10%. Foreign direct investment in Vietnam reached US $ 20.23 billion, exceeding 19% compared to the target (17 billion dollars) and expected in increase in 2016.
Mr. Nguyen Tran Nam, Former Deputy Minister of Construction, president of the Vietnam Real Estate Association, said the real estate market has been recovering, particularly in 2015. There were 40,000 successful transactions, increased 75% compared to 2014 in only Hanoi and HCM. In addition, the Vietnamese laws have changed which allow foreigners and Vietnamese people living abroad to own real estate in Vietnam from January 7/2015. The metro construction projects in Hanoi and HCMC, modern road system construction suchas Nhat Tan Bridge,  Long Thanh – DauGiay highway …  are also factors contributing to boost the real estate market.
Along with these positive factors, the volatility of the financial markets due to the impact of political issues and global movement (the gold market, securities, forex have reduce the lending rate) has turned the property into a safe place for investment at the moment.
In the current favorable environment, the property becomesa channel to attract investors who want to own property not to live but to invest in. This is an appropriate time for investment after nearly 7 years. In a report, Mr. Marc Townsend, Managing Director of CBRE Vietnam, saidthat ” in 2015 the real estate market will witness the spectacular comeback of property speculators”
According this report, if in 2014, cheap apartment was considered as the hottest segment of the market, in 2015, the segment of medium and high-end apartments returned to be the hottest attraction. According to data from CBRE, yielding from investing in luxury apartments in Vietnam is quite high compared to other countries in the region (7- 8% compared to 3% in Singapore, 4-6% Bangkok and 4% in Hong Kong). With a minimum profit margin of 7-8% a year and the highest one at 15-20%, this segment is attracting the attention of real estate speculators.
The project with big scale which delayed during freezing period such as Goldmark City, Sapphire Palace, Gemek Tower in Hanoi, Vista Verde, the Park Residence, Le Meridien, City Gate Towers, has been released to sell up.
As reported by CBRE, in the quarter 4/2014, in HCM, it was recorded that 6670 apartments were offered, increased 117.8% from the previous quarter and 150.2% over the same period last year. For the whole 2014, it was sated that 60% of 14 807 apartments from 37 projects were offered while this figure was 47% in Hanoi of total 16,200 units from 31 projects.
In terms of price, the projects inside the city and surrounding areas with developed infrastructure continue to attract buyers and tends to keep the price high. The average selling price luxury apartments in Hanoi and Ho Chi Minh City are in the range of US $ 1500-1700 / m2, apartment Range US $ 1,000 / m2, the budget – US $ 700 / m2.
The companies with foreign investors are allowed to sublet the property which has been leased or acquire buildings which has been built. This contributes to dynamic of office properties in Vietnam. According to CBRE’s report, in 2014, many office buildings have adopted methods of long-term lease or buy off the area. In 2015, this trend will be more popular in terms of office building.
In the segment of real estate retail, restructuring the dynamics of retail businesses such as Parkson Hanoi Co. and the close of Parkson shopping center in Keangnam Landmark Tower Complex (Hanoi) showed very strong pressure this segment due to increase in supply and competition. With more than 90 million people, Vietnam is a leading nations in the Asia – Pacific region in terms of growth of retail market (9.3% versus 6.3% in Hong Kong, 4.5 1.7% of Malaysia and Singapore). Thus, the segment of retail market is still promising.
A series of big brand to expand the retail network such as as Aeon Group (Japan) plans to open 20 hypermarkets in Vietnam. Vinmart plans to build 9 shopping center, 100 supermarkets and 1,000 Vinmart convenience stores in 2017. Lotte Group (Korea) announced that it would open 60 supermarkets in Vietnam in 2020…
However, in 2015, the new game will be very intensed. According to the CBRE, in 2015-2016, the market will welcome nearly 800.000m2 retail space from 24 projects. Therefore, retailer market will be faced a new challenges. Rising operating costs, the development of electronic commerce and improved knowledge of consumer in purchase decision will be the factors that led to high level of market competition.
Also in 2015-2016, villa projects seem to become very attractive investment in Vietnam. In 2016, Vingroup will launch the resort in Da Nang, Nha Trang, Quy Nhon, PhuQuoc that combines financial investment to attract investors. Especially, at the beginning of March, the Group will launch VingroupVinpearl Resort & Villas project in Long Beach – Nha Trang.
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