Family Office Services

Vietnam has been considered as an attractive fit for family offices.

The Vietnam’s stock market has been around fifteen ten years. Fund certificates in various forms are available such as close ended fund, open ended fund, Exchange Traded Fund (ETF). Foreign investors are now allowed to hold up to 49% shares in a listed company and this room has been in the process to change in the near future. Although Vietnam market is considered small for pension funds or the similar, this market is a right fit for family offices.

Further, foreigners are now allowed to make direct investment, hold 100% and conduct business in most areas after the new investment law’s effective date of Jul 1st, 2015. Thereal estate law has been passed with effective on the same date with new investment law, allowing foreigners entering Vietnam to buy real estate.

We are a local professional management consulting firm with family office service that assist foreign clients with asset management and consolidated reporting of all the family’s assets.

In particular, we provide wealth management and tax planning, trustee and corporate services, and support with indirect investment, direct investment, real estate and family governance.

We are your consultants and we could act as nominee shareholder, nominee director, or provide management service that help you achieve the goal, and stay in private status at the same time.

We look forward to helping you find the family office services you need 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 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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Korea Convenience Store Chain Presented in Vietnam

In September 2016, the two first Ilahui stores in Vietnam have opened in Hanoi and Ho Chi Minh City (HCMC) in the form of franchise.

According to Ilahui brand manager in Vietnam, in the fourth quarter of 2016, this brand will expand to 6 – 8 stores to serve the needs of customers both throughout the country. In the next 5 years, Ilahui will have at least 200 stores spreading across the provinces of Vietnam.

With the advantages of products and prices are updated, diverse in types and designs with elegant shopping space, the company expects this will be a new business model with strong penetration step intoVietnam retail market.

According to Nielsen Vietnam – a market research firm, among 93 million people of Vietnam, there are nearly 60% of the population are under 35 years old. The income of this class has also increased from 433 USD per person per year (in 2000) to 2,111 USD per person per year (in 2015). Vietnamese consumers also have demand to enjoy new and quality shopping experiences.

That is the reason leading to the explosion of the Vietnam retail market in recent years, especially the chain of convenience stores, which significantly including Family Mart, MiniStop, B’s Mart, Circle K, Shop & Go, Vinmart Plus and 7-Eleven… Now we have Ilahui – convenience store chain specializing in Korean style utilities items and fashion accessories in Hanoi and HCMC.

Ilahui strengths are Korean style utility items and fashion accessories, which are interested by Vietnam young people. With more than 3,000 products; 20,000 -25,000 products on shelves at a price from 10,000 VND; 100 new products every month with all types from men/women fashion, accessories, toys, stationery, home appliances, electronic accessories, cosmetics… bringing to customers many choices in terms of models and pricing. Besides, the new trends, fashion accessories that are favored by Korean idols will be updated quickly in Ilahui.

Besides customers are young people aged 15 – 35 years old, Ilahui also owns large numbers of customers over 35 years old who have modern spending habits, preferred the products with good designs and competitive price… All of them have created competitive advantage for Ilahui comparing with other convenience stores chain in the market.

Furthermore, Ilahui also target the personality of today’s youth through creating new style of shopping experience with simply but modern decorated space. The fashion accessories and cosmetics products are packaged in cute and colorful packaging. The number of products is a lot but they are sorted neatly on wooden shelves.

According to representative of Ilahui Vietnam, the Vietnam retail market is booming and the competition will become fiercer. High success rate along with the increasing openness of the market have led the franchise to become the investment plan that is interested by a lot of young Vietnamese people.

Ilahui is the convenience stores chain specializing in Korean style fashion accessories, which is expanding very fast in Asia with more than 500 stores within a year. Despite many challenges but with the advantages in product, distinct market segments and new shopping style, Ilahui is believed to have steady steps to conquer Vietnamese customers.

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German Enterprises Seeking Investment Opportunities in HCM City

At a meeting between the leaders of Ho Chi Minh City (HCMC) and the German Business Association (GBA), Mr Jens Ruebbert – Chairman of GBA said that Vietnam is an attractive destination for investment and business activities of foreign investors, including German businesses.

Go along with Mr. Jens Ruebbert attending this meeting, there are more than 70 German enterprises operating in various fields, wishing to expand investment and trading activities in a number of potential areas such as automobile, production, communication, finance, insurance…

With advanced professional qualifications and also experiences, German enterprises are expected to seek investment and trading opportunities, bringing practical benefits for both sides of the business community, as well as both countries.

Germany is one of the major and efficient partners of Vietnam in the field of education and training, science and technology… It is possible to mention some of their projects that have been implementing in Vietnam as Vietnamese-German University; Construction of Phu Lac 1 wind power plant worth 35 million Euros; No. 2 metro line in HCMC worth 240 million Euros or the project to improve energy efficiency in rural areas worth 120 million Euros…

According to the leader of HCMC, the relation between Vietnam and Germany are increasingly strengthened and is developing in various fields such as political, economic, commerce and education…

Germany is one of the important partners of Vietnam in the European Union. Therefore, Vietnam in general and HCMC in particular, wish to promote cooperation in the field of urban transport, health, education…

Until 2020, the two-way exchange trade turnover target between Vietnam and Germany will reach 15 billion to 20 billion USD.

Therefore, in order to create favorable conditions to help German businesses reaching and searching for investment and trading opportunities with Vietnam partners, the Department of Planning and Investment of HCMC has published information on economic and social development orientation of the city from 2016 to 2017.

Besides, the city also introduced several measures to boost production and trading, in order to remove difficulties for enterprises, improve the investment environment to attract human resources at home and abroad such as enhancing trade promotion, expanding the market by concentrating in investment sectors that are encouraged by the city.

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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Foreign Specialists Interested in Vietnam

Vietnam is attracting foreign specialists to visit, live and work as expatriates due to stable political, improved environment for doing business.

As such, Vietnam has becoming an attractive destination for setting up businessand factory in comparison with other countries in the region due to the capability to attract managements and talents.

Vietnam topped the list as the country bringing high income for foreign professionals with 67% said that their income has increased and 68% of them have capable of increasing accumulation. The study was published by HSBC in the foreign expert research which was newly implemented.

Accordingly, foreign professionals living in Asia Pacific was the highest paid people in the world with an average annual income of 126,537 USD.

The report also shows that Asia Pacific is the workplace of 18% foreign experts with salary exceeding 200,000 USD a year, the highest rate in the region, followed by the Middle East with 16%.

Living in Vietnam: Earning more money and good accumulation

In Asia in general, Vietnam, China, Hong Kong, Malaysia and Singapore bring the highest accumulation to foreign experts, thus making their disposable incomes rise.

In particular, Vietnam topped the list with 67% of professionals working here saw their incomes rise and 68% have increasing accumulation. In particular, 16% of experts said that they potentially own more real estate by the rotation.

However, according to HSBC then Vietnam topped the area in terms of potential savings of foreign experts.

For younger professionals, a few Asian markets provide opportunities for better accommodation. More than half of professionals under 35 years old in Indonesia (55%) and India (52%) spend less on accommodation than when they stay in their own country.

The report also shows that Asia Pacific has the ability to create easiest financial base for professionals with high incomes, with 73% (of all income levels) said that they can establish easiest finance in New Zealand, followed by Singapore (63%) and Australia (56%).

Justin Bull from HSBC in Hong Kong said that Asia given the best opportunities for financing, allowing foreign experts to improve living standards and achieve desired lifestyle. The majority of the experts here are British and American. According to the survey, an important part of Asian experts changing local for income increasing like Australian experts working in China and Vietnam; Indian professionals working in Malaysia and Indonesia; Filipino professionals working in Malaysia and the Malaysian and Indonesian professionals working in Singapore.

There will be high-quality workforce shifting

When ASEAN is closer to the establishment of an economic community, the demand for skilled manpower will be increased to be able to enhance the competitiveness of the sector.

With the fact that ASEAN will increase 57 million new households belonging to the middle class to the global markets as of 2025, HSBC said that experts will continue to contribute in the field of telecommunication, technology, banking, education, hospitality, health, marketing and construction…

In addition, the new agreements on trade and investment, connecting economies with each other will unfreeze international vacancies between Asia and developing markets. This will be a potential world for skilled professionals and skilled labor.

The ability to save more, the higher disposable income or the ability to buy realestate is important factors for experts to consider switching to a new country.

Feel “Breathe easy” when living in Vietnam
Vietnam ranked 21^st in the economic ranking, but ranked 5^th when talking about the saving ability of foreign experts.

According to the survey from HSBC. Most of foreign experts believe that Vietnam had a more comfortable life with less spending on housing costs (62%), travel (73%), clothing (68%), goods and necessities (62%), essential services like electricity, water, telephone (70%) and bills (77%).

Thus, experts are likely to save more (68%) while living in Vietnam.

More than half of the foreign experts (62%) said that in Vietnam they can afford to hire a maid and nanny, something that they cannot afford while living at home country, and can enjoy the luxury vacation (52%), compared with only 28% and 36% of global experts.

The survey from HSBC also showed that Vietnam ranked 22^nd in the ranking on experience, but 2^nd in the ability to make friends. More than half of the foreign experts (56%) find that they integrate quickly into life and culture of Vietnam, and the majority of foreign experts find it easy to make new friends in Vietnam (68%).

Stabilize the life in Vietnam is relatively easy, with 36% of the experts feel like home once or within six months after moving to Vietnam. Most of foreign experts also enjoy integrated into in Vietnam (61%), enjoy and cook Vietnamese foods (78%).

Vietnam ranked 31^st in the ranking about family. Almost half of the foreign experts (43%) said that the cost of child care in Vietnam is less expensive than at home country, and most of foreign experts (74%) send their children to the international school.

Vietnam is developing very fast and owns a dynamic business environment. This is an attractive destination for entrepreneurs seeking start-up opportunity and new business projects.

As an emerging market, Vietnam brings foreign experts many challenges and chances to develop career. With significant attractions in terms of tourism, culture and people, Vietnam also brings foreign experts wonderful experiences along with ease of integration and stabilizes the life 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 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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M&A Activities in Vietnam in Recent Years

Vietnam’s population is more than 90 million people so that foreign investors are looking at Vietnam as a fertile ground to expand their market by M&A deals.

Accordingly, along with the process of restructuring the economy and international integration of Vietnam, in recent years, merger andacquisition (M&A) activities have been fairly active, in which many major transactions involving Thai enterprises.

In 2009, the total value of M&A transactions in Vietnam reached 1 billion USD then in 2015, the number is 5 billion USD. Particularly for the first 6 months of 2016, the value of M&A in Vietnam has exceeded 3 billion USD, in which it took place in such sectors as retail, commodities and real estate…

Thailand, Japan and Singapore are still the major buyers in Vietnam market. While Japan invests in companies in aviation, petroleum and pharmaceutical sectors, Singapore emerges with commercial real estate projects. Lastly, Thailand continues to focus on the retail segment with the goal of expanding the market.

Head of M&A transactions last year is the retail sector and consumer goods, accounting for 38.46% of the total value. In particular, the scale of 2 M&A deals from Thailand accounted for 24.8% of the total value of 2015 and the first half of 2016. This shows the trend that retail businesses at home and abroad continue to explore the market with more than 90 million people of Vietnam. Recently, Thailand’s major corporations continuously acquired large supermarket chains such as Metro, Big C…  Singha has also become a strategic partner of Masan with investment value of 1.1 billion USD.

According to experts, there is a great competition in the business sector of Thailand and Japan when investing in Vietnam because Vietnam market has now fully matured and become more attractive. On the other hand, the market of Thailand and Japan has begun to saturate.

Especially, there is a wave of M&A of Thai investors in Vietnam in order to expand the market for the “Made in Thailand” products. While Thailand’s population is about 50 million, the size of Vietnam’s population is almost double – over 90 million people.

With many innovations in policy such as the Investment Law and the Enterprise Law, the process of international integration will create opportunities and new playing field for the M&A transactions to boom.

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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COSMETIC INDUSTRY IN VIETNAM

Overview

According to the figure of Nielsen in 2013, the annual turnover of the Vietnamese cosmetics market is around 15 trillion VND (US$704.2 million).  The average per-capita spending was only $4 per person per year, compared with an average of $20 per person in Thailand. This indicates a huge potential for growth of this sector in Vietnam.

According to a report from The Society of Cosmetics of Ho Chi Minh City, Vietnam has more than 400 cosmetics businesses, with 90% of the market share taken by foreign brands. Most of the popular domestic brands, such as Saigon Cosmetic, Thorakao and Lan Hao only achieved low sale volume and mainly export to neighbouring Asian markets.

Consumer behavior

Vietnamese consumers are familiar with Korean brand cosmetics compared with cosmetics from other countries. The market share for cosmetics products by foreign countries is as follows: Korea – 30%, EU – 23%, Japan – 17%, Thailand – 13%, US – 10%, and others – 7%. The Korean cosmetic products are often associated with “brand of youth”, “affordable price”, and “being fashionable”. Vietnamese women often consider American products as “expensive”, “good quality” and “brands for adult” whereas Japanese products as “good quality” and “good value for money”.

The research of Q&Me shows that there is 44% of Vietnamese women usually wearing makeup in which 24% women wear makeup every day, 44% women wear makeup once a week. Thus, it underlines that wearing makeup every day is not popular for Vietnamese women.

In terms of sources for finding information about cosmetic, friends and website are the most popular source. The websites are usually designed for women such as eva.vn, phunutoday.vn …

Domestic enterprises

Since there is a fierce competition of international cosmetic brands, Vietnamese enterprises in cosmetic industry is seeking to export or link with other international companies for new items. However, there have not been a lot of successful business which may include Cosmetics Manufacturing Company Limited Lan Hao (Thorakao), JSC Saigon Cosmetics, JSC Sao Thai Street…

According to Nguyen Thi Thanh Thao – Vice Chairman of HCM City Cosmetics Association, there are a few FDI enterprises stop production chain in Vietnam and moved to Malaysia, Thailand to enjoy preferential policies. Therefore, in Vietnam, the exported cosmetic product to Vietnam significantly increased.

According to Ms. Thao, even though importing and distributing cosmetics or machinery in this industry in Vietnam is the best solution to survive in the market, not many companies choose this solution.

“There are also cases which companies have modern production lines due to the cooperation with pharmaceutical companies to supply to the market, but they do not want to be published. Also some of cosmetics enterprises cooperate with foreign companies to product cosmetic products, but only retain only a few specific products to distribute in the domestic market. There are some small cosmetic enterprises forced to stop operation due to difficulties and fierce competition.”

Many free trade agreements between Vietnam and other countries has signed which put tariffs on exported good to 0% including cosmetic, thus this industry has longer attraction for domestic enterprise to invest in manufacture or production chain.

Majority Vietnamese cosmetic enterprises are still relatively young, thus only able to produce shampoo, shower gel … Most of cosmetic products used in spa are imported. Therefore, it is an opportunity for high-end foreign owned cosmetics brands to compete in Vietnam market. Specifically, cosmetic products which curse/reduce acne and treatment for oily skin, rejuvenate the skin, whiten skin and take care of hair are the best seller products.

According to Phuong Mai JSC, the trend of using natural products with 100% organic (organic) ingredients become the top choice of spa. So if any domestic brands catch up cosmetic this trend, they will succeed in finding a new direction for the cosmetic enterprises to compete in this industry in Vietnam.

Even if domestic enterprises are able to catch up with the current trend, Vietnamese enterprises still need to learn, update technology as well as knowledge and experience from the big corporations with turnover of billions dollars such as Korean business and hundred billions of baht  such as Thailand’s enterprises.

Vietnam enterprises are aware their position in this industry through different beauty exhibition. There have been many exhibitions of the beauty industry took place in Vietnam recently.

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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SUSTAINABLE DEVELOPMENT IN VIETNAM

Achievement of sustainable development in Vietnam

The sustainable development objectives including economic, social development and environment protection have been integrated into national priority development together with economic growth objective.

With a stable GDP and economic growth, improvement of education, Vietnamese citizens have gained more knowledge about gender quality, environmental and other social issues, thus, creating campaigns to support collective action. For example, the campaign collecting garbage along beaches in Vietnam attracted more than 1000 students to participate in which indicated collective action to mitigate effect of disaster and climate change.

Vietnamese government has significantly improved the rate of hunger eradication, poverty reduction, population, job creation, education and healthcare. Particularly, in 2014, total state budget for hunger eradication and poverty reduction were more than 34 billion VND. Thus, the poverty rate took a nosedive from 14.2% in 2010 to 1.8-2% in 2014, proving average reduction of 2% per year national wide.

The state fund for environmental protection has been increased, thus the policies for environmental protection has put into regular operation. By executing tax exemption for environmental friendly enterprises, businessesin Vietnam have been more aware of coordinating environmental protection policies into long term vision and mission.

Vietnam takes part in international agreement to show commitment to sustainable development such as: WTO, United Nation Framework Convention on Climate Change, United Nation Convention to combat desertification, the convention on International Trade in Endangered Species of Wild Fauna and Flora…

Challenges of sustainable development in Vietnam

There have been some challenges in Vietnam when implementing sustainable development policies. An increase in natural disaster, degenerated natural resource (water and biodiversity resources), wasteful and ineffective production and consumption are causing huge destruction to various local communities.

Even though there have been some supporting policies for enterprises in Vietnam to implement sustainable development policies, they have not obtained full awareness of the link between good environmental, social, and governance performance and the ability of companies to be profitable and survive in turbulent times. Therefore, most of the firms succeeded in promoting sustainable development practices are international businesses.

 Sustainable development in business

Since Vietnam takes part in international trade agreements, there will be more international and institutional investors need the information of material environmental, social and governance information about company performance to decide whether to make investment decision.

Sustainable development of the business should be proven by social factors (employee compensation, benefits, staff turnover, safety practices, diversity and local community) and environmental factors (energy efficiency, GHS emissions, biodiversity conservation, water usage, natural resource use, waste to energy and recycling practices). These factors are crucial for investors as they indicates how the company takes into account risks, opportunities, management approach, stakeholder value and long term development.

Sustainability report has been strongly recommended by Vietnamese government. Vietnam Brewery Ltd is one of a few leading companies taking this report seriously. Their report in 2014 stated that the company switched from diesel to biomass as boiler fuel, reducing direct CO₂ emissions as a result. In addition to reducing our carbon footprint and mitigating the effects of global warming, the local community has also benefitted from the programme with an additional income from the sale of rice husks. The company also highlighted the code of conduct which allowed the employees to voice their opinions. There have been also other big cooperation taking part in the trend for example Bao Viet Corporation, Vinamilk, Hau Giang Pharmacy…

In conclusion, in order for enterprises in Vietnam to actively engage in sustainable development and voluntarily adopt sustainability as common practice, Vietnamese government should take more urgent actions.

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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FDI WAVE FROM THE UK INTO HO CHI MINH CITY

UK businesses are gradually becoming the largest investors inVietnam.

The southern key industrial zone (SKEZ) including Ho Chi Minh City (HCMC) and neighboring provinces such as Binh Duong, Dong Nai, Long An and Ba Ria – Vung Tau.

SKEZ include 106 active industrial zones with a total area of 33,500ha. Those industrial parks have the advantage that lie near the highway, intercity road, seaport and international airport.

HCMC is the economic center of SKEZ, therefore this is the area that always receives the largest amount of FDI projects.

According to Savills Vietnam, in the first half of 2015, UK businesses have invested the most in HCMC, accounted for 59% of total FDI capitals, followed by investors from the British Virgin Islands (15%) and South Korea ranks 3^rd(10%).

HCMC has 16 active industrial parks, operating with 2,300ha leased land, attracted 425 million USD from FDI, increase by 50% compared with 2014.

Currently, HCMC has announced plans to open 7 new industrial parks, with a total area of around 2,000 ha to welcome FDI inflows in the textile, service and food processing industries.

Moreover, in recent years, HCMC has adopted preferential tax policies to encourage new businesses operating in the high-tech industry and related scientific disciplines.

Especially in infrastructure development, in order to welcome foreign investors, infrastructure of the city has been growing rapidly with many underway projects, such as the HCMC – Long Thanh highway, the metro 1 and the belt roads of the city.

In early 2016, two key roads will begin construction includes the belt road no.3 connecting Nhon Trach District, Dong Nai and Ben Luc – Long Thanh highway.

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

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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VIETNAM: THE POTENTIAL DESTINATION FOR VENTURE CAPITALS

If we see the business, the attention of Venture Capitals (VCs) and foreign investors are the indication then Vietnam is emerging as a potential environment for the startup operation.

Besides the investment funds that have been presented in Vietnam as IDG Ventures Vietnam, a number of new VCs have joined the Vietnam entrepreneurship ecosystem and are very optimistic about the ahead opportunities.

On August 2015, the Captii Ventures owned by Captii Corporation has invested a sum of 6 numbers to the startup OnOnPay phone recharge. This represents the first venture investment of Captii in Vietnam.

Factors attracting investors here are the demographic advantages and business models that can be replicated. According to Techlist.asia, the startup figure in Vietnam has risen to 1,400, bringing this country becomes the 3^rdlargest startup ecosystem in Southeast Asia after Singapore and Indonesia.

With a population of 90 million people who are in the process of economic growth, young population structure, emerging middle class and the rate of Internet user is increasing rapidly, especially mobile phone, Vietnam is in the beginning phase of a very exciting cycle.

Moreover, Vietnam is a large, young and growing rapidly economy, the technology index such as the ratio of using the Internet and smart phone are in large-scale, the leading founder generation have achieved success and demonstrate the potential of the talent and market of Vietnam.

Compared to other Southeast Asian countries (Indonesia, Thailand, Malaysia, Singapore, Philippines and Vietnam), Vietnam has strong advantages in the available technique human resources, energy, resources and potential growth the market.

Moreover, the new policy on foreign investment has entered into force on July 1^st 2015 with more freedom for foreigners to own real estate in Vietnam and simpler procedures for projects or portfolios.

In the 3 areas that Captii Ventures is focusing on that are market, digital media and apps for business, they will participate more actively in at least two areas that are market and apps for business.

Not only with the VCs, Vietnam startup is also attractive to other foreign companies such as Yello Mobile from South Korea, the company has invested in CleverAds advertising company and Websosanh – the price comparison site.
Garena, a Singapore’s internet company has invested Series B for Foody, startup locations that in the same month continued to receive Series C investment from Tiger Global Management – US venture capital fund.

Transcosmos, a software manufacturing company based in Tokyo, had previously acquired a 30% stake in Hotdeal e-commerce platform in a deal signed on August 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.  

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 BILLIONAIRE MARK MOBIUS EXPANDING INVESTMENT IN VIETNAM

US billionaire Mark Mobius – one of the most famous investor in the world visited Vietnam to seek and expand investment through M&A in Vietnam.

In the world, billionaire Mark Mobius is considered one of the best investors of the 20^th century, alongside names such as Warren Buffett, George Soros and Julian Robertson.

During this business trip to Vietnam, Mark Mobius met partners in potential areas such as banking, logistic services. Till now, the Fund entitled Franklin Templaton by Mark Mobius as chairman has invested nearly 300 million USD (equivalent to nearly 6,000 billion VND) in Vietnam.

In particular, billionaire Mark Mobius has declared that Franklin Templeton Investment Fund may invest 3 billion USD to Vietnam market in the coming time. This figure is equivalent to 1/10 of the total GDP of Vietnam in 2014.

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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INVESTMENT IN WIND POWER PROJECT IN VIETNAM

Wind power is one of priority sectors to develop in Vietnam. Vietnam Government has been given a lot of incentives as well as support for wind power development projects.

Wind power investment procedure in Vietnam

Step 1: Project location

Investment in wind power projects must be suitable with the development plans of wind power and electricity, which are approved by the competent authorities.

Investors are licensed the wind power investment and development permit for wind power projects that are on the list of approved national wind power and electricity development plans. Moreover, in terms of the projects which are not in the approved list, the investors are responsible to create its dossiers which will be added to the development plan and examined by Ministry of Industry and Trade and then by Prime Minister.

Step 2: Evaluate wind potential at selected location

It is necessary to install wind measurement masts (if they are not available on the project location) and implement the wind measurement at least one year.

Step 3: Pre-feasibility research and require adding the project to power development plan

If the project location has potential wind condition, the investors will make a report and submit to Ministry of Industry and Trade to add this project to the list of power development plan. The Ministry is responsible to consider the application and asks for Prime Minister’s approval (wind power is a new sector in Vietnam, so the procedure has not been issued yet. All wind power projects with large scale as more than 50 MW have to be approved by the Prime Minister). After the project has been approved, the application is submitted to Department of Planning and Investment where the project is located

Step 4: Make investment report (feasibility study)

After being approved, the investment report will be submitted to Ministry of Industry and Trade to evaluate and approve

Step 5: Signing power purchase agreement with EVN

Under the provisions of Decision No. 37/2011/QD-TTg, EVN is obliged to buy the entire power output of the wind power project. Agreement and finalize the signing of the power purchase contracts, connection, design metering systems. Currently, the standard power purchase agreement is still in the process of waiting for approval from the Government.

Step 6: Implementation of the project

When the technical design is completed and the investment report is approved by the competent authorities such as Department of Industry and Trade, Department of Construction, Department of Natural Resource and Environment and other relating departments.

Step 7: Construction

According to Decision 37/2011/QD-TTg, the investors are allowed to start the construction only when its investment certificate is granted, have the signed power purchase agreement with the power buyer, have connecting agreement with the power distributor; wind condition report is continuously recorded in 12 months. 

Policy framework relating to wind power supporting in Vietnam

Policies and incentive mechanisms of the Vietnamese Government for wind power sector are expressed through clearer legal policies clearer in recent times. Prime Minister issued Decision No. 1208/QD-TTg of July 21, 2011, approving the national plan for power development in the period 2011 – 2020 with consideration to 2030. In which expresses the goal of the Vietnam Government is to prioritize developing renewable sources for electricity production, increasing the proportion of electricity produced from 3.5% in 2010 to 4.5% of total power manufactured in 2020 and 6% in 2030.

The government’s commitment to renewable power sector in general and wind power sector  in particular is clearly indicated after Decision No. 37/2011/QD-TTg was issued on 29 June 2011 (taken into effect on 20^thAugust, 2011) stipulating the mechanism to support the development of wind projects in Vietnam. Accordingly, the wind power projects enjoy preferential of capital, tax and fee.

– Mobilizing investment capital: Investors are allowed to mobilize capital in the form of permission from the organizations and individuals at home and abroad, has preferential investment credit under the existing legal provisions on investment credit and export gorvernment’s.

– Preferential of tax:

+ Import tax: The project to develop and use of renewable energy sources are exempt from import duty for goods imported to form fixed assets for the project; imported goods are raw materials, supplies and semi-finished products cannot be produced domestically and imported for production of projects as stipulated by the current legislation on export tax and import tax.

+ Enterprise income tax: The exemption and reduction of enterprise income tax for projects to develop and use of renewable energy sources is made as to projects in the field of investment incentives as stipulated by the current legislation on taxes.

– Incentives on land: The project to develop and use of renewable energy sources be exempted or reduced of land use fees and land rent as stipulated by the current legislation applicable to projects in the field of incentives invest.

– Priority is given to research related to the development and use of renewable energy resources in the field of scientific development and technology and development of high-tech industry; allocate funds from the fund to support scientific studies and technology in the pilot project, the project of industrialization for development and use of renewable energy, promote technological improvements relating to the development and use of renewable energy, reduce production costs of renewable energy products and improve product quality.

According to Decision No. 37/2011 / QD-TTg on the mechanisms to support wind power. In which, the buyer (EVN) is responsible for purchasing all electricity output from wind power project at the price of 1,614 VND / kWh (excluding VAT value added taxequivalent to 7.8 US cents / kWh) at the point of delivery of electricity. Electricity purchase prices are adjusted according to fluctuations in the exchange rate between VND and USD. In particular, the State shall support for the buyer the price of electricity at the price of 207 VND / kWh (equivalent to 1.0 US cents / kWh) for the entire output of electricity purchased from wind power plants through Protection Fund Vietnam environment. This means, the buyer or EVN only pay 6.8 US cents / kWh.

According to Decision No. 37/2011/QD-TTg on the mechanisms to support wind power. In which, the buyer (EVN) is responsible for purchasing all electricity output from wind power project at the price of 1,614 VND / kWh (excluding VAT, equivalent to 7.8 US cents / kWh) at the point of electricity delivery. Electricity purchase price will be adjusted according to the fluctuations in the exchange rate between VND and USD. In particular, the State shall support for the buyer at the price of 207 VND / kWh (equivalent to 1.0 US cents / kWh) for the entire output of electricity purchased from wind power plants through Vietnam Environment Protection Fund. This means, the buyer or EVN has to pay only 6.8 US cents / kWh.

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