Why Japanese Companies will Increase Investment into Vietnam

When Japan sought to diversify the investment other than to China, Vietnam emerged as attractive destinations for international investors.

Within the last few years, companies doing business in China began diversifying its investment and reduce dependence on the China market. This is the result of increasing labor costs as well as the structural reforms taking place in China. In this context, Vietnam emerged as a potential destination for foreign companies which are looking for new investment opportunities.  Entering into Vietnam will open up open up a large domestic market at a geographic advantage location for Japanese companies.

In 2013, for the first time, China lost the top spot as a promising destination for Japanese investors. Japanese companies are now investing in Indonesia, India, Thailand and Vietnam. This does not mean that Japanese firms will withdraw from China, they are simply looking for new investment destinations.

Vietnam has increasingly become popular for Japanese companies making investment. The Japanese investment in Vietnam has increased rapidly, especially since the Treaty of the Economic Partnership Vietnam-Japan went into effect in 2009. The Japan’s largest investment are in transportation infrastructure transportation, electrical equipment manufacturing sector. Vietnam is one of the fourth largest motorcycle markets in the world, and therefore Japanese companies such as Honda or Yamaha are here to increase investment. The Japanese electronics company also raised the capital of investment, partly because Samsung has developed a mobile plant to produce a series of Galaxy smartphones. Panasonic is looking for business opportunities in the domestic electrical equipment and has seen Vietnam as a key market in the emerging countries. Teral, a leading Japanese industrial pumps and fans have just opened up its Vietnam office.  Canon has been investing in Vietnam for many years with success.  For the non-manufacturing sectors such as finance and insurance industry, capital investment has also increased significantly, for instance, Mizuho, Tokyo and Mitsubishi in banking, Dai-ichi Life in life insurance.

In addition, small and medium enterprises in Japan (SMEs) are looking for business opportunities in foreign countries due to increasing challenges they are facing in Japan. The domestic market has been shrinking due to aging population; larger companies that have contracts with the SME business are moving abroad, while competition with foreign companies in Japan has been increasing. After the global financial crisis of 2008, the Japanese companies have increased investment abroad to survive. Therefore, Vietnam should promote measures to adapt to small businesses from Japan.

In addition, both Vietnam and Japan are engaged in the process of negotiating Trans-Pacific Partnership (TPP). At the end, the TPP will help promote trade and investment, but it also leads to changes in the industrial structure and the domestic economy. It will be a challenge, especially for a developing country like Vietnam. In this context, Vietnam and Japan is an important partner of the other. Both countries will benefit from the closer economic relationship and cooperation.

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.  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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Investment Through Signing Contracts in Vietnam

Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:

(i) Construction, operation and management of brand-new infrastructure facilities; and

(ii) Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:

• Roads, bridges, tunnels, and ferry landings;

• Railway bridges and railway tunnels;

• Airports, seaports and river ports;

• Clean water supply systems; sewage systems;

• Wastewater, waste collecting and handling systems;

• Power plants and power transmission lines;
Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and

• Other projects as may be determined by the Prime Minister

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. 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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accounting

ANT Consulting provides a complete range of financial, accounting and reporting services designed to help clients do business in Vietnam efficiently by focusing on core business.

By outsourcing the service to us, we could ensure your financial reporting is transparent, up-to-date and accurate. We manage our clients’ accounting processes and reporting – both internal and external – without any conflict of interest. Our service gives client clarity of accounting stands at all times, ensuring full transparency.

We also provide a flexible and scalable solutions that suit each client’s needs in terms of:
Statutory book-keeping: maintaining your books and records in accordance with local rules and directives and preparing and filing all required reports and specifications;
Management reporting: tailored to your individual requirements, in dual currency format and meeting the relevant local accounting standards;
Consolidated reporting: monthly and quarterly assistance in preparing output accounting reports and accounting reconciliation, management reports.

You could learn about why you should outsource book-keeping and accounting services to a professional firm, the list of services which we offer for statutory book-keeping, reporting and accounting services and the benefits of using accounting services of ANT Consulting.

Please reach us via email: ant@antconsult.vn or office tel: +848 35202779.

Let ANT Consulting help your business in Vietnam.

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. 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 call +848 3520 2779 (HCMC Office), +844 39388751 (Hanoi Office). To learn more about us, please visit www.antconsult.vn

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Benefits of Setting Up Business in Danang

DANANG IS CONSIDERED AN IDEAL DESTINATION FOR INVESTMENT. THE RESULT SHALL BE INCREDIBLE WHERE WE EVALUATE ON THE FOLLOWING ASPECTS:

Danang – one of the strategic economic centers of Vietnam’s central region

In March 13th, 2004, the prime minister signed a decision to establish central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Danang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Danang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Danang – eastern gateway of east – west economic corridor (EWEC)

EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.


Benefits of Setting Up Business in Danang

Currently, the road system in Laos, Thailand and the road line from Danang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of 2006 to facilitate the circulation of goods and passengers by road line from Danang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development

Danang – entrance of the cultural heritage and natural wonders of the world

Danang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Danang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Danang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).

With the advantage of geographical location and potential economic development in tourism, Danang is an ideal destination for tourists as well as investors.

Infrastructure is step by step improved

Danang is an important traffic hub of the central – highlands and country with system of international airports, deep sea ports, roads, north-south railways developed conveniently.

Danang port is the third largest commercial ports in Vietnam after Saigon port and the port of Haiphong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Danang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Danang is the international shipping route anabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.

Danang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Danang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Danang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargos.

The system of roads in and out of the city are constantly being expanded and newly constructed

Telecommunication systems: Danang is one of three major telecomunication centers of the country, international transmission speed with good quality of Southeast Asia. Danang post provides various and modern telecommunication services and be capable meeting the needs of customers.

The other services supporting investment (financial, banking, insurance …): most banks and finance companies of Vietnam have large branches in Danang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.

Trained and abundant human resources

Danang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Danang are lower than some other cities in the country.

Danang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Danang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …

Software technology center in Danang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard.

In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …

Quality of life

Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Danang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Danang always bring a sense of peace, comfort and closeness to nature. Danang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.

Danang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that Danang is an exciting place to live, work, travel and invest in Vietnam.

If you wish to explore investment opportunities in Danang, or set-up company, business in Ho Chi Minh City in particular or in Hanoi or in Vietnam in general, please contact us via email ant@antconsult.vn or call our office number: +848 35202779 (HCMC) or +844 39388751 (Hanoi).

ANT Consulting, let us help your business in Vietnam.

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Set-up Branch Office in Vietnam

The Branch of a foreign business entity in Vietnam (referred as “The Branch”).

Means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.


Set-up Branch Office in Vietnam
The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

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. 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 call +848 3520 2779 (HCMC Office), +844 39388751 (Hanoi Office). To learn more about us, please visit www.antconsult.vn

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Vietnam Supports Australian Enterprises Investing and Setting-up Business in Vietnam

DURING AN OFFICIAL VISIT TO AUSTRALIA, IN THE MORNING OF MARCH 17TH (LOCAL TIME), IN SYDNEY, PRIME MINISTER NGUYEN TAN DUNG AND HIGH-LEVEL DELEGATION TO THE GOVERNMENT OF VIETNAM HAD THE DIALOGUE WITH THE BUSINESSES OF VIETNAM AND AUSTRALIA’S ON THE DEVELOPMENT OF VIETNAM’S ECONOMY AS WELL AS THE OPPORTUNITIES, PROSPECTS FOR COOPERATION BETWEEN THE TWO COUNTRIES.

The dialogue of Prime Minister Nguyen Tan Dung has attracted the participation of hundreds of large enterprises of Vietnam and Australia in the areas of banking, finance, energy, oil and gas, mining. Prime Minister Nguyen Tan Dung has directly answered many questions of the businesses, Australian investors relating to prospects, opportunities to promote and enhance the intrinsic comprehensive partnership between Vietnam and Australia.

Prime Minister Nguyen Tan Dung has generalized the development of Vietnam’s economy from an underdeveloped country with a closed economy and until now Vietnam has become a middle-income country with a dynamic economy, enter into the regional economy and the world’s.

Vietnam achieved GDP growth of nearly 6% in 2014. Until now, registered aboard direct investment capital is up to nearly $ 300 billion, with nearly 18,000 projects from more than 100 countries and territories. Currently, there are over 100 leading corporations investing and set-up company in Vietnam.

The Prime Minister stressed: “To attract more powerful, more efficient foreign investment, the Government of Vietnam will continue to fulfill its smooth operation and economic institutions in Vietnam market, compete equally between domestic firms and foreign firms as committed international integration of Vietnam.

Vietnam confirms continuing international economic integration deeper through the full implementation of its commitments in the WTO and bilateral free trade agreements as well as other multilateral ones. Currently we are implementing 8 free trade agreements and negotiations and will continue to expand the market, open market with other free trade agreements, especially the new generation FTA with high requirements to create competitive business environment in the ASEAN region and create a legal framework consistent with international business practice in the market of Vietnam … “

Prime Minister Nguyen Tan Dung also said that Vietnam is focusing on the three breakthrough strategies to facilitate the attraction of investment and development, business and promote economic development, which is perfect institutional market economy as well as investment in infrastructure development and training human resources, especially human resources quality.

Vietnam also continues to ensure political and social stability and protects the legitimate rights and legality of investors, including domestic and foreign; and continue to improve the rule of law, ensure and promote strong democratic liberties of the people, both economically and politically.

Prime Minister Nguyen Tan Dung has listened and directly answered many of the questions of businesses, Australian investors relating to prospects, opportunities to promote and strengthen comprehensive partnerships between Vietnam and Australia especially to promote cooperation in the field of competitive advantage, such as mining, energy, chemicals, agriculture, finance, banking, education and high quality services.

Government of Vietnam also supports Australian businesses involved in the process of restructuring the economy of Vietnam, especially in the strong field of Australia such as energy, telecommunications infrastructure, education – training, agricultural business and finance.

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

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Vietnam Personal Income Tax Laws Foreigners Should Know

AS THE DEADLINE FOR DECLARING PERSONAL INCOME TAX (PIT) IS APPROACHING, WE ARE REVIEWING SOME TAX LAWS IN VIETNAM THAT FOREIGNERS WORKING AND EARNING IN VIETNAM SHOULD KNOW AND COMPLY.

Law No. 71/2014/QH13 dated 26 November 2014 issued by Vietnam National Assembly amending five tax laws including Law on Personal Income Tax (“PIT”) and Law on Tax Administration provides with regulations on PIT finalization.

Vietnamese Government further issued a number of regulations on tax declaration, payment and finalization, as follows:
1. Decree No. 91/2014/ND-CP dated 1 October 2014, of Government, amending Decree No. 65/2013/ND-CP and Decree No. 83/2013/ND-CP of guidance on the Law on Tax Administration (“Decree 91”). Decree 91 has complemented several exemptions from PIT finalization and comes into effect from 15 November 2014.
2. Circular No. 119/2014/TT-BTC dated 25 August 2014, of the Ministry of Finance, amending and supplementing a number of tax circulars in order to simplify tax formalities (“Circular 119”). Circular 119 has supplemented regulations on PIT obligations of any individual who is a citizen of the country and/or territory entered into an agreement on preventing double taxation with Vietnam.
3. Circular No. 128/2014/TT-BTC dated 5 September 2014, of the Ministry of Finance, guiding the reduction of personal income tax for individuals working in economic zones and border-gate (“Circular 128”). Circular 128 broadens the subject of tax deduction and comes into effect from 20 October 2014.
4. Circular No. 151/2014/TT-BTC dated 1 October 2014, of the Ministry of Finance, guiding Decree 91/2014/ND-CP on various aspects of PIT finalization, providing detail subjects which are not required to finalize PIT.

Tax resident in Vietnam should note that 2014 Personal Income Tax finalization shall be made no later than 31 March 2015.

About ANT Consulting

We assist with Tax advice and related tax services in Vietnam to clients in various industries including financial services, trading, distribution and IT sectors on Corporate Income Tax, Personal Income Tax, Value Added Tax, Withholding Tax and update on relevant tax regulations.

We could be reached via email: ant@antconsult.vn or office tel: +848 35202779.

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