FOREIGN EXPERTS FELT “BREATHE EASY” WHEN LIVING IN VIETNAM

Vietnam ranked 21st in the economic ranking, but ranked 5th 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 22nd in the ranking on experience, but 2nd 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 31st 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.

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Google Shows Interests in Vietnam IT Industry

E-commerce, IT and software development have been developing incredibly fast in Vietnam over the years making it potential for IT business to be set-up.

With more than 93 mil of population which 52% having access to internet.  The average Vietnamese using Google to extract information from internet is three times higher than world average.  Vietnam has been rated top 10 Asian countries with fastest growth rate of internet users. Those are the reasons why Google considers Vietnam as important market for penetration, localization and business development.

Sundar Pichai, CEO of Google will arrive in Hanoi on December 22nd to talk with the start-up technology in Vietnam, showing the practical interests of Google in Vietnam.  Technology so far appears to be one of the most attractive areas for foreign investment.

According to Google’s communications department in Vietnam, the initial interaction of Google CEO with Vietnamese audience including programmers, students and the media, will be held on a small scale in one hour, for the purpose of sharing experiences and inspiration. Sundar Pichai will also meet with three unidentfied individuals of Vietnam whom are supposed to be influencial in Vietnam IT industry.

Sundar Pichai joined Google since 2004, played role as orientation for the Google Toolbar and Google Chrome, the key products of Google that hundreds of millions of consumers are using.

In 2014, Sundar managed the product parts, engineering and research for all products and technology platforms of Google, including Google Search, Maps, Google Play, Advertising and solutions using cloud platforms for consumers, businesses and the education sector, which were known under the name of Google Apps and Cloud Platform. The two most important platforms in the computer industry as Android and Chrome are also within his administration.

After years of closely working with Google’s founders, Larry Page and Sergey Brin, Sundar has been accredited and formally undertaken the CEO position of Google since August 2015.

This is the first time that a senior leader of Google comes to Vietnam. In early December,Apple co-founder Steve Wozniak also came to Ho Chi Minh City to attend an event on social networks, mobile, statistical data and cloud computing in Vietnam.

In previous years, many well-known personalities of the world technology industry visited Vietnam. In 2006, Bill Gates as the Chairman of Microsoft visited Hanoi to launch the project to disseminate information technology.  In May 2010, CEO of Microsoft Steve Ballmer had a talk with students of the Hanoi University of Science and Technology and Vietnam National University, focusing on new technologies such as cloud computing. In 2013, Stephen Elop, head of Nokia’s mobile segment (at that time belonged to Microsoft) also presented in Hanoi and Ho Chi Minh City to meet the domestic software partners.

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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Big Manufacturer Waves Enter Vietnam

Facing difficulties in manufacture and consumption, some big car manufacturers in Thailand and Indonesia are planning to find new market in ASEAN. Moreover, recently, LG Electronics- the world’s second largest television manufacturer also intends to move from Thailand to Vietnam.

According to Federal Thailand Industry –FTI’s figures, In 2014, 881,800 cars were sold in Thailand, decreasing 34% compared to 2013. That is the second year in two consecutive years the market is in recession. It was a strong effect to decrease the quantity of output produced in last year : 1,88 million cars (included quantity exported). In Indonesia, quantity sold also lightly decreased which caused reduction of the quantity produced from 1.4 million cars down to 1.3 million cars.

Except for the problem of production, Thailand investors are facing other difficulties, political depression has effected manufacture and trade,and high costs of labor have risen the price up. Besides, Thailand’s manufacturing capacity is full, if we want to increase it, we have to invest more. All difficulties above force cars manufacturers to seek for new producing places.

In ASEAN, there are two places which investors are considering to: Philippines and Vietnam. These are two populous countries have enormous potentiality. Hence, the investors still want to invest money in these two countries.

Many people think that this is a facile opportunity for Vietnamto intensively attract new investors, develop cars industry, accommodate domestic demand and export. In Vietnam,  monthly figures on consumption which enterprises declared indicated that the growth still has not had signs of slowing down.

According to the monthly report in Jan 2014, VAMA forecasted industry’s  consumption rate in 2014 would be about 120.000 cars and increase 9% compared to ones in 2013. However, the real number raised almost 158.000, increased 43%. The quantity sold in December achieved a new record when surpassing 20.000 cars and this is the 21th consecutive month when the industry’s  quantity sold higher in comparison with the same period previous year .

Vietnam’s  advantage is an enormously potential cars market.In forecast, after 2020 when nation’s income per capita overcomes  3000 USD, the demands of cars will break out. In Vietnam, there are two million of car types, rate of cars per capita is still low, in 2030 the quantity sold would overcome 1 million cars per year. In addition, the low costs of labor in Vietnam helps reducing the costs of manufacture.

 LG chooses Vietnam to be the producing place instead of Thailand:

LG Electronics – the world’s second largest televisions manufacturer is planning to move manufactory from Thailand to Vietnam in this year because of efficient producing system, low costs and good logistics services.

In October 2013, LG was authorized to invest 1.5 billion USD to Vietnam for constructing factories in order to produce and assemble electrical goods.

In a phone  interview with Reuters’ reporters, Mr. NiponWongsaengarunsri – LG’s marketing manager in Thailand revealed that LG want to construct a manufacturing “fortification” where produce new lines of TV like the main factories in Korea. And Vietnam is their best choice.

 “We consider Vietnam as an ideal destination to invest. Low costs of labor is an important factor. However, decisive elements are quality and good logistics services” said Mr. Nipon.

Besides, Mr. Nipon also revealed that LG produces about 600.000 TV products per year in Thailand, cost about 8 billion baht (243 million USD). Among those products, there are about 100.000 for export.

Will Vietnam gain benefit?

Following the integration process,  at the end of 2015,Asean Economic Community (AEC) will be established. It will give Vietnam opportunities to expand import and export market, attract investment and skillful labor force in ASEAN area.

Besides, Trans Pacific Partnership (TPP) is on negotiation stage with final rounds, will prospectively give opportunities to Vietnam’s economy. Free Trade Agreements (FTA)  is and will be concluded which contribute to attract investment and stimulate export.

In that circumstance, Vietnam government continually gives special treatments to foreign enterprises investing in high technological fields, many big Manufacturer chose Vietnam to be manufacturing “fortification” or expanding investment.  For instance, Samsung invested 11 billion USD for factories in Bac Ninh, Thai Nguyen, Ho Chi Minh city; Intel also declared production line of Haswell chip for desktop in Vietnam;  expecting to accommodate 80% global demand within the next six months.

2014 is the year for transferringbig enterprises from China to Vietnam. Not only Samsung, Intel, Nokia… but also many enterprises in textile, shoes, are pouring billion USD to manufactories in Vietnam, even when they already have had large factories in China.

Considering Vietnam’s opportunities, many experts suppose that Vietnam should prepare thoroughly in order not to be disadvantageous in our own house, by enforcing science and technology, developing supportive industries and improving competitive ability. If we can do well these stages, Vietnam will receive chances from future transfers.

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