French President Visits Vietnam

On September 5^th 2016, Mr François Hollande – President of the Republic ofFrance start visiting Vietnam at the invitation of the President of Vietnam – Mr Tran Dai Quang.

During the visit, the two parties will check, review and concretize the connotations towards promoting cooperation and further strengthen political relations, exchanging high-level visits on both bilateral and multilateral levels. Moreover, both parties will review and further improve the efficiency of cooperation mechanisms between the two countries.

The visit is also an opportunity for both sides to promote the economic cooperation in the fields of infrastructure, climate change combating, science – technology, health, agriculture… This is also an opportunity for France and Vietnam together to discuss international issues. The visit of President François Hollande will last for 3 days.

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

eck, review and concretize the connotations towards promoting cooperation and further strengthen political relations, exchanging high-level visits on both bilateral and multilateral levels. Moreover, both parties will review and further improve the efficiency of cooperation mechanisms between the two countries.

The visit is also an opportunity for both sides to promote the economic cooperation in the fields of infrastructure, climate change combating, science – technology, health, agriculture… This is also an opportunity for France and Vietnam together to discuss international issues. The visit of President François Hollande will last for 3 days.

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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Ba Ria – Vung Tau Attracts Investment to Build Logistics Center

In order to promote the development of seaports, Ba Ria – Vung Tau is calling for investors in the field of logistics to come and build logistics centers.

Being the only deep-water port in Vietnam, in the near future, Cai Mep – Thi Vai port will be planned to become the national southern gateway port.

This will be a large center of regional ports. However, the operation of logistics enterprises in Ba Ria – Vung Tau is quite discrete, not yet being organized into a unified network.

The operation of the logistics service centers will bring more sources of goods to the port. This reciprocal relationship is not only creating incentives for the South East region to develop, but also generating revenues from the export activities.

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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Good Risk Management for Enterprise – The Key to Success

Risk is an inevitable factor in business operation activities, higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business if you want to make profit and create value to shareholders. However, in fact, there are a lot of businesses does not manage risk effectively and furthermore not fully understand about the risks that they are facing.

Risk can be defined broadly as any factors or events could drive business and production activities of the enterprise below forecasted. Specifically, the measures that are commonly used as capital risk, profit risk or cash flow risk, depending on the emphasis that are accounting balance sheet and statement of cash flows.

According to the Vietnam Ministry of Industry and Trade, in recent times, there are many corporate scams between Vietnam and foreign enterprises. In particular, the main behaviors are foreign companies purchase/sell goods or provide services for partners in Vietnam and the Vietnam partner fail to make payment.

Typically, a director has scammed 3 billion VND of foreign companies and he was arrested. Although his company does not have pepper but he still receives nearly 350,000 USD of the Egyptian company, then appropriated half. According to the investigation, a few years ago, Vinamex Co., Ltd signed contract with a Libya company in Egypt to sell 4 black pepper containers with price of 669,600 USD even though the Vinamex Company do not have condition to implement the contract and also do not have goods.

To obtain the money of partners, the Director of Vinamex forging multinational bills of lading, certificate of plant quarantine and then send to Lybia Company. The Lybia Company then transfer to Vinamex a deposit amount of 348,300 USD. After that, Vinamex’s director withdraws all money to pay for his company’s debt.

After months have been urging, the Vinamex Company buy a container of black pepper worth 174,150 USD and then send to Lybia Company. The remaining amount equivalent to 3 billion VND was appropriated by the Vinamex’s director. The Lybia Company has adopted Vietnam embassy in Egypt to submit the denunciation.

In fact, many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management. Improving risk management process will create a tight and effective control of the Board of Directors, on the other hand will help integrate the risk management process into every daily decision-making process.

Businesses do not improve the risk management process will be faced with a lot of different types of risks: financial losses serious, adverse effects on cash flows and the value of shares, as declining prestige with customers, employees and investors.

Businesses that do not improve the risk management process will have to face with a lot of different types of risks: serious financial losses, adversely affecting cash flows and the value of shares, decreasing prestige with customers, employees and investors.

In the period of global crisis had been predicted that almost bottomed out and started to show signs of recovery, although the recovery process can occur with different speed and characteristics depending on sector and location of the business, the fully preparation of business in all aspects including process and risk management strategy could helps business not falling into the passive and also have more possibilities to take advantage of growth opportunities after the recession.

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 developingmarkets. 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 Vietnam – “Hot” Investment Channel

In recent years, foreign investors spent approximately 3 billion USD to buy shares in more than 3,000 enterprises in Vietnam, in which most of them purchased over 50% of the shares. It indicates that investment trends through the model of merger and acquisition (M&A) are booming strongly in the market.

According to the report from the Foreign Investment Department under the Ministry of Planning and Investment, from July 1^st 2015 to July 1^st 2016, there were 3,141 companies in Vietnam are acquired by foreign investors in the form of buying shares. The total value of those deals is 2,948 billion USD. This is the first time the Foreign Investment Department showed the statistics on foreign investment flows into Vietnam through M&A activities. It shows that the trend of investment into Vietnam through M&A is increasing greatly.

As reported by the IMAA, a foreign research institute on M&A, the total value of M&A in Vietnam in 2015 reached 4.3 billion USD, 40% higher than in 2014 and surpassing the record level of 4.2 billion USD in 2012. It is expected that the value of M&A deals in Vietnam in 2016 is likely to break the record of 2015 and reached 6 billion USD.

Many analysts are predicting that the food, logistics, retail and real estate industries will still be targeted by foreign investors. The main reason is that the potential of Vietnamese consumers is growing due to young population and growing economy.

Among more than 3,000 M&A deals that are statistically by Foreign Investment Department, there were 1,894 deals valued at 1.8 billion USD that are invested by foreign investors to hold dominant share of over 50% . It means more than half of M&A deals in the past year are made with long-term investment objectives.

There has been more active involvement of the Private Equity fund (PE). Previously, if the PE funds often take part in the purchase of shares which is not dominant, but now, the PE fund is ready to invest at a higher percentage to increase profit and reduce competition. In addition, the increase in ownership percentage will also help to increase the PE funds’ intervention in business activities of enterprises to create surplus value.

When the inflow of foreign investment into Vietnam through M&A increases, it will create opportunities for domestic enterprises to mobilize capital, improve enterprise management skills and competitiveness. One of the examples is the case that Vietnam Airlines sold 8.8% of shares to ANA Holding, the largest airline corporation in Japan.

In fact, many other businesses also consider M&A as an effective channel for capital mobilization. Therefore, after the Vietnam Government allowed to increase the percentage of capital held by foreign investors at the company listing on the stock market to 100%, many companies have decided to open “room” to welcome this new capital flows. Many examples are Hoang Quan Real Estate Company, Thu Duc Housing, An Phat Plastic and TNG Garment. Even Vinamilk, one of the most successful dairy enterprises in Vietnam, also have to think about loosening “room” to 100% to attract foreign investment through M&A activities.

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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Vietnam Aviation Outlook in 2016

Vietnamaviation market is growing fast with fierce competition. Although the growth rate reaches 20% in the first quarter of 2016, the airport infrastructure systems are not fully meet the demand.

Currently Vietnam Airlines (VNA) is at the last stage of the equitization process. Therefore, when the largest airline company of Vietnam finishes their equitization process, the majority of enterprises in this industry are joint stock companies.

Currently, Vietnam aviation industry has 137 aircraft teams with very young age (less than 6 years old) and the aircraft team is forecasted to increase rapidly in the coming time.

Domestic aviation market is increasingly fierce competition as VietJet Air has 31 aircrafts and VNA has 88 aircrafts, which are mainly serve domestic flights. However, while VietJet already accounts for 37% of the market, the market share of VNA fell below 50%. Accordingly, the competition in the domestic market is very fierce.

Furthermore, there are 53 foreign airlines joined with 3 domestic airlines. Accordingly, there are 48 domestic fly routes and 98 international fly routes, which are growing very fast with growth rate of more than 20% in the first quarter of 2016. Particularly Tan Son Nhat Airport has the strongest growth when accounting for 50% of market share.

The strong development of the aircraft teams have been identified as a huge pressure on the existing airport system. In a recent report on flight congestion, in the Lunar New Year period when travel demand increases, the congestion was limited. However, after the Lunar New Year period until now, the situation of delayed, canceled flights and congestion at the airport occurred more often due to unfavorable weather conditions.

Currently, Tan Son Nhat International Airport is under pressure to increase the load until the Long Thanh Airport goes into operation, which is expected until 2025. Moreover, the Department of Civil Aviation has set the direction and submitted to the Government by trying to bring Tan Son Nhat Airport to the design capacity of 40 million passengers/year, while relocating the whole military flight operations out of this airport.

In addition, other key projects are also being carried out according to plan. Among them, Da Nang Airport could be put into service for the Apec Conference in 2017; Cat Bi Airport is trying to put into operation before March 13^th and Cam Ranh Airport is still deploying the construction of the 2^nd runway.

For airports in the northwest area, currently there are many investors interested in the Lao Cai Airport project in the form of socialization. Lai Chau Airport is proposing to the Department of Defense to switch to civil airport; Na San Airport would like to retain the airport by the budget of the Ministry of Defense; Dien Bien Airport will organize study to rotate the shaft.

To overcome the congestion, delayed or canceled flights, the operating capability at airports and the training of air traffic control have been enhanced. At the same time, the Department of Civil Aviation has begun to send officials to pilot school in order to save the State budget for the rental of flight inspection as well as enhanced flight safety.

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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Tourism Industry in Vietnam

The tourism industry is regarded as an smokeless industry, holds an important position in the global economy and Vietnam is not an exception.  As a new destination with natural resources and many foreign investment hotels and resorts, Vietnam tourism industry has developed rapidly in the past decade and has the potential to develop further in the coming time.

1. Tourism – impressive numbers

In 2015, Vietnam tourism industry has made remarkable achievements in terms of revenue, number of passengers and the improvement of infrastructure systems. Particularly, the country has received more than 7.94 million international passengers and served 57 million domestic tourists; the whole industry reached 402.66 trillion VND revenue, and has 18,800 accommodation places with 355,000 chambers.

According to the General Statistics Office, total industry revenue reached 402.66 trillion, contributing 9.6% to GDP and increased 5.75% compared to 2014. In particular, revenue from accommodation F&B services reached 372.24 thousand billion VND and revenues from travel services reached 30.41 trillion VND.

Vietnam tourism industry has consistently recorded growth of tourists, both domestic and international from 2010 to 2015. According to the General Department of Tourism, Private 2015, the country has received more than 7.94 million international visitors and serve 57 million domestic tourists, increased 48.1% and 0.9% respectively compared to 2014.

In terms of foreign tourists, the number of tourists coming from Northeast Asia region accounted for the highest proportion of international visitors to Vietnam. There are 1,781 thousand Chinese tourists travelling to Vietnam, accounting for 22.4% of international passengers to Vietnam in 2015; followed by South Korea (1,113 thousand passengers, representing 14.0%) and Japan (671 thousand passengers, accounting for 8.5%).

Vietnam Tourism 2015 also achieved positive outcome in the development of luxury infrastructure systems. According to the General Department of Tourism, in the end of 2015, there were 18,800 accommodation places with 355,000 chamber; of which the number of hotel 3-5 star hotels reached 747, increased 16.7% compared to 640 3-5 star hotels of 2014. In particular, there are 441 of 3-star hotel with 30.734 suites, 215 of 4-star hotel with 27.379 91 suites of 24.212 suites of 5 star hotel with suites.

HCMC – economic center and Hanoi – the capital are destinations which were highly selected by the tourists, especially for international tourists. By the end of 2015, HCMC has received 4.7 million international passengers, 19.3 million domestic visitors while Hanoi has served 3.4 million international tourists and 16.4 million domestic tourists.

2.Opportunities

The participation in TPP and AEC has brought Vietnam huge opportunities. Firstly, lessening legal conditions of investment and freedom of labor movement between the 12 countries help to increase demand for travel as investment opportunities, jobs combined with tourism; as well as density, size and type of international tourists such as combination of business travel – meetings (MICE)

Secondly, all the trade agreements has created favorable conditions for tourism industry to develop. The international visitors have the privileges to make procedures faster with affordable price by temporary commitments of business visitors under TPP agreement

Finally, 5/12 of TPP countries are on the top of ecologically diverse countries list which lead to the need of tightening the requirements on hygiene and environmental factors… Therefore, all of these factors and infrastructure will be improved as the implementation of commitments in the TPP. This promotes sustainability for tourism industry.

3.Challenges

According to the many agencies the tourism industry has been facing many challenges.

As outdated infrastructure, lack of integrity leads to the fact that the accessibility of tourist destinations is limited, particularly mountainous areas. Lack of uniqueness, innovation in tourism products is also an issue that has not been able to be handled in Vietnam

In addition, there has been missing human resources to serve in the industry. Tourism activity still strongly depends on season, the quality of service during peak period is not guaranteed.

Besides, the budget for tourism promotion is still limited, particularly compare with other countries in the region; funding comes from mainly state budget. The promotional activities has not built professionally, promoting only image is not enough to attract tourists. Promotion only should focus on building brand and unique products. The budget for scientific research and application of science and technology in tourism industry is still limited.

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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