Foreign Investment in Hanoi Increased Strongly

Foreign investment is flowing into Hanoi

Foreign direct investment (FDI) into Hanoi is increasing in both quantity and quality. Foreign investors have gradually believed in the decision to set up business in Vietnam.

Unlike many other localities in the country with large FDI projects such as billion-dollar manufacturing complex, Hanoi is much quieter in attracting FDI. But the reality is different. According to the statistics from the Foreign Investment Agency (Ministry of Planning and Investment), up to the end of May 2017, Hanoi still ranked at the 4thplace among provinces attracting the most FDI with over 26.2 billion USD.

If we list the large-scale FDI projects registered in Vietnam since the beginning of 2017, Hanoi can contribute 3 projects, first is Aeon Mall Ha Dong with registered capital of 192.51 million USD. The next is Coca-Cola Vietnam’s 319.8 million USD capital increase project and 72 million USD Park City project.

Last year, a series of FDI projects poured into Hanoi. For example, the project to invest in the purchase and operation of technical system, equipment, technology, software and trading of lottery elective named “Vietlott” (210 million USD); Vietnamobile Company increased its capital (208 million USD); or Vietnam Public Bank project (134 million USD) …

Not to mention, Hanoi has attracted Samsung’s 300 million USD Center for Research and Development (R&D). This proves that the quality of FDI inflows into Hanoi has been improved.

According to information from the Hanoi Department of Planning and Investment, the city is working hard to improve the investment environment to attract more investment capital both at home and abroad. Many solutions have been mentioned, such as facilitating access to land, land use, land for investment and business; improve the efficiency of administration, administrative reform, improve the investment environment; promoting and enhancing the effectiveness of investment promotion activities…

Good news for Hanoi is that the Prime Minister has officially issued a separate Decree allowing the implementation of separate mechanism for the Hoa Lac Hi-Tech Park. For example, allowing investment projects in Hoa Lac Hi-Tech Park to enjoy the highest incentives in accordance with the law of Vietnam, allowing the application of the one-door mechanism, prioritizing the allocation of land funds to develop housing for employees… This is also an opportunity for Hanoi to attract investment in hi-tech sectors, attracting investment from multinational corporations – a priority orientation for FDI attraction identified by Hanoi for many years.

In addition, Hanoi also determines to encourage the development of supporting industries, biotechnology, using modern technology, friendly with the environment; projects in the field of information technology, agricultural development, food safety… And especially, large-scale infrastructure projects.

Without hesitation, Hanoi has frankly expressed the desire that Japanese investors will invest in urban railway projects, investment projects to build bridges spanning the Red River, ring routes, metro lines, underground parking lots, satellite urban areas…

Not only FDI capital, calling for investment in these projects also means that Hanoi also determined to promote investment in the form of public-private partnerships (PPP). In the first 6 months, Hanoi has attracted 24 PPP projects, with a total investment of 32.103 billion USD. A very promising shift, promising that in the coming time, there will be strong waves of investment poured into Hanoi.

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Wind Power: The Inevitable Trend of Sustainable Development

With the increasing demand for electricity, Vietnam is also gradually considering investing in renewable energy, including wind power as the key to addressing energy security, contributing to the realization of the country’s green development strategy.

Energy is one of essential human needs and an indispensable input of economic activity. As the living standards of the people are improving, the level of production of the economy is more modern, the demand for energy is also growing, and satisfying this demand is a real challenge for almost every country.

The race to exploit fossil fuels at all costs of human beings is reaching the limits of nature’s endurance, causing polluted living environments, climate change, causing unrest for the welfare of the community and become one of the global non-traditional security issues, threatening the survival of humanity.

Being aware of that, many countries around the world have been switching from fossil fuel to renewable energy for sustainable development. In many areas, power source from renewable energy projects is equivalent to those from fossil fuel projects, breaking the threshold that we believed to be impracticable.

Currently, in Europe, nearly 50% of new power development projects are wind power projects. In China – the most populous country, in March 2017, the Government shut down its last coal-fired power plant in Beijing to switch to renewable and gas electricity and.

According to the IEA latest report, globally, in 2016, investments in wind and solar power have doubled investments in fossil-fuel power. Furthermore, it is estimated that wind, solar and gas powers will completely replace coal power in the next 25 years.

In Vietnam, the development of the economy has made demand for electricity surge while supply capacity has not developed in time. The Ministry of Industry and Trade has forecasted that average electricity production growth rate of Vietnam in the period 2016 – 2020 is 10.7% per year and the period 2021 – 2025 is 8.6% per year.

Therefore, the Government of Vietnam considers the exploitation and utilization of renewable energy resources have special and strategic meaning in terms of socio-economic, national security and defense, energy security, sustainable development and minimizing environmental impact.

Most experts said that Vietnam has enormous potential for wind power. According to a study by the World Bank, Vietnam has the largest wind energy potential in the region, surpassing Laos, Cambodia and Thailand.

Accordingly, Vietnam’s wind reserve is estimated at 513,360 MW, more than 6 times the estimated total capacity of the electricity sector by 2020. The World Bank study also showed that 8.6% of Viet Nam’s land area is very potential, convenient for the installation of large wind turbines. The corresponding figure of Cambodia is 0.2%, Laos is 2.9% and Thailand is 0.2%.

Understanding the general trend of the world as well as encouraging investment incentives of the Government, about 50 wind power projects have been registered for investment in Vietnam and there are 4 projects with total capacity of 159.2 MW has gone into commercial operation.

Most recently, the Phuong Mai 3 Wind Power Project in Nhon Hoi Economic Zone (Quy Nhon – Binh Dinh), has a capacity of 21 MW – 28 MW, including 14 turbines with a total investment of 40 – 50 million USD are invested by HALCOM Company and its international partners. With an area of 140 hectares, the project is expected to supply about 72 million kWh of electricity per year and reduce emissions by 40,000 tons of CO2 per year. According to representatives of HALCOM, the project will be implemented in 2017 – 2018. Once completed, the estimated revenue can reach 150 billion VND per year.

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Vietnam – Russian Federation: Cooperation in The Spirit of Friendship

There are many opening opportunities, so that the Russian Federation enterprises can come to explore and set up business in Vietnam and vice versa.

Previously, there is almost a constant law, that is only Vietnam come to promote investment abroad, now the story seems to be different. Japan has organized an investment promotion conference in Vietnam. And just recently, on March 2017, during a visit to Vietnam of Mr Yuri Trutnhev – Deputy Prime Minister, Russian Presidential Representative in the Far Eastern Federation, also held the same investment promotion workshop. There have been calls for Vietnamese businesses to invest in Russia, with many investment incentives.

In fact, in the last few years, Vietnam’s investment in Russia has increased rapidly, from 100 million USD in 2008 to about 2.4 billion USD in the recent times, concentrating mainly on oil and gas, trade, agriculture… Vietnam’s large investment projects in Russia include Rusvietpetro, Gazpromviet Petroleum Joint Venture, TH TRUE Milk, Ha Hoi Trade Center in Moscow.

Contrary to the trend of capital inflows from Vietnam to Russia have increased dramatically in recent years, investment flow from Russia to Vietnam is slowing. In the first 5 months of 2017, Russian businesses only invested 7.2 million USD in Vietnam. To sum up, the accumulated investment capital from Russia to Vietnam is currently about 1 billion USD.

The figure is modest and substantial, focusing on traditional projects which is oil and gas cooperation. Besides the Vietsovpetro Joint Venture, the two countries have established such joint ventures as Rusvietpetro, Vietgazprom and Gazpromviet to expand oil and gas cooperation in Vietnam, Russia and third countries.

In April 2017, a meeting between two leaders of Russia and Vietnam’s leading oil and gas corporation that are Gazprom and PVN, took place in Moscow. In which, both sides have continued to discuss on the cooperation to exploit oil and gas in Vietnam, as well as oil and gas projects in Russia.

In fact, Gazprom has participated in the Hai Thach – Moc Tinh gas field project in Vietnam since 2003 and up to now, the total output of this mine has reached about 6.6 billion m3 of gas. In particular, in 2016, the output reached 2 billion m3.

In addition, the two sides also discussed the process of geological exploration in plots 112 and 129 – 132 on the continental shelf of Vietnam, also deployed the project of developing oil – gas – condensate – Nagumanovskoye field and gas field – condensate Severo – Purovskoye in Russia, at the same time discussed the prospect of joint venture cooperation in the field of electrification and transport vehicles using natural gas (NGV). Once these agreements become reality, Vietnam – Russia oil and gas cooperation will be more closely and effectively, opening great investment cooperation opportunities between the two sides.

Opportunities will be even greater when the free trade agreement between Vietnam and the Eurasian Economic Union (includes Russia, Belarus, Kazakhstan, Amenia and Kyrgyzstan) is effectively implemented. Implemented effectively. Although it is just a free trade agreement, the agreement will create a great opportunity for two sides to cooperate and take advantage of each other’s markets. This common market block has total GDP of 2,200 billion USD and 183 million people. Moreover, Vietnam and the Eurasian Economic Union have also set target of increasing two-way trade to 10 billion USD by 2020. This is an important basis for investment cooperation between Vietnam and the Russian Federation, as well as other intra-regional economy will be further boosted.

The visit to Belarus and the Russian Federation from June 26th to July 1st 2017 by Vietnam President Tran Dai Quang is expected to create opportunities for further economic and investment cooperation between Vietnam – Russian Federation and Vietnam – Belarus.

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ACWA Power and FECON Develop Renewable Energy Projects in Vietnam

On July 3rd, ACWA Power Energy Corporation from Saudi Arabia and FECON JSC have signed Memorandum of Understanding on cooperation to develop renewable energy projects in Vietnam.

According to the national electricity development plan and the renewable energy development strategy of Vietnam, the Vietnam Government prioritizes the mobilization of all resources to develop renewable energy, increasing the rate of electricity produced from renewable energy sources (excluding medium and large hydropower), account for 7% by 2020 and above 10% by 2030. In which, wind and solar power are areas of great concern. Along with the above strategy, many incentives and support mechanisms are being built and perfected to attract investors in this field.

Recognizing this potential, ACWA Power (Saudi Arabia) decided to choose Vietnam as the first and strategic country in Southeast Asia to invest in renewable energy projects. ACWA Power is a developer, investor, operator and co-owner of a portfolio of power plants in 12 countries in the Middle East, North Africa, South Africa and Southeast Asia. Particularly in the Middle East, ACWA Power is a developer of electricity and water in the top 2 of region.

ACWA Power’s portfolio is valued at over 30.5 billion USD, with a total generating capacity of 21.5 GW.

According to the Memorandum of Understanding, FECON and ACWA Power will jointly study and evaluate the opportunities and potential of renewable energy investment in Vietnam. Particularly wind and solar power projects in some provinces in the Southern of Vietnam such as Binh Thuan, Ninh Thuan… Then, the two sides will set up joint venture company to invest in specific projects.

Furthermore, according to CEO of ACWA Power, Vietnam is the perfect place for investors to invest and develop renewable energy projects in the coming time. The investment potential in Vietnam is huge due to the increasingly cheaper technology cost, with the advantage of resources, the local partner ‘s understanding and the advantages of modern technology and capital. The cooperation between the two sides will certainly go to success. ACWA Power’s CEO also expects the Government of Vietnam will to continue to support and license the projects of this Corporation when they expanding investment in Vietnam in the future.

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Situation on M&A Transactions in Vietnam

In 2017, if nothing breaks through, M&A value will not easily surpass the value in 2015 and 2016. This will require a boost from businesses and the Government to take advantage of opportunity from foreign capital flows.

In 2016, the value of worldwide M&A transaction reached 3.5 trillion USD, decreased by 27% compared with the previous year but still at a high level. This could be a sign of ending a period of global M&A growth. With such event as Brexit or the policies of US President Donald Trump, global M&A activities becomes unpredictable and there may be a shift in capital flows.

According to IMAA statistics, in Vietnam, after reaching its peak in 2015, which was a record level in the past 10 years, with an estimated M&A value of 5.2 billion USD by 2015, ending the year 2016 with a value of 5.1 billion USD. However, there are also many obstacles and there was a slowdown in the second half of 2016 when large and quality deals are announced.

The most exciting sector in 2016 is retail, consumer goods and real estate. Banking and finance seems to be quiet in the past year. Other sectors that also attracted attention are education and technology.

Foreign investors still play a significant role in M&A activities in Vietnam with huge deals. Japan is persistent in its strategic partnership with state-owned companies such as Vietnam Airlines, Petrolimex… Korea has entered the market with some industrial sectors, while Singapore is focusing on real estate projects.

In addition, the market continues to witness M&A moves and strategic investments by some private corporation when the State divests. The most typical in the past year was a divestment deal involving Vinamilk. Along with Vinamilk, a number of Vietnamese companies are still in the sights of investors such as Sabeco, Habeco and Mobifone.

The challenges for M&A growth in Vietnam are: The change in US policy, in particular the United States decided to withdraw from the TPP, obstacles from equitization in Vietnam, business quality and size of the economy. In order to achieve high M&A value like 2016, it requires the assertiveness of the State in the divestment of large corporations. At the same time, the market needs a new push & breakthrough factors.

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New Billion Dollars Thermal Power Project in Vietnam

Recently, Vietnam is really blooming with a lot of renewable energy projects as many foreign investors choose to set up business in Vietnam in this field.

The Nam Dinh 1 thermal power project, with a total investment capital of 2.2 billion USD, is the largest thermal power project in Nam Dinh so far. The project owner is Nam Dinh 1 Power Co., Ltd but headquartered in Singapore and is a joint venture of two foreign corporations which are Taekwang Power (Korea) and Acwa Power (Saudi Arabia).

Taekwang Power is expanding its portfolio in areas as real estate, petrochemicals; at the same time continuing to increase investment capital in Southeast Asia. In 2008, Taekwang Power established its subsidiary Taekwang Power Holdings to participate in the development of power plants in Vietnam.

Meanwhile, Acwa Power was established in 2004 as a joint venture between Abunayyan Trading Company and Abdulkadir Al Muhaidib & Sons Company together with MADA Group. Acwa Power is trading in power supply and desalination, and is the first private company to operate in this area after Saudi Arabia decided to strengthen its role in the private sector in 2002.

The total investment capital of the Nam Dinh Power Project includes: owner’s equity is 0.56 billion USD, accounting for 25% and loan is 1.68 billion USD, accounting for 75%. The commercial operation date is scheduled for December 2020 with a BOT contract term of 25 years.

The two companies in the joint venture of Acwa Power and Taekwang Power are large and experienced organizations in the field of power generation and supply. Taekwang Power with its subsidiary Taekwang Power Holdings specializes in the field of power supply. Meanwhile, Acwa Power owns a lot of domestic and international power generation and supply projects, especially 10 projects using renewable energy.

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Vietnam Is One of Fastest Tourism Growing Countries in The World

Dubbed as a smoke-free industry, Vietnam tourism industry is a potential sector and presently, Vietnam has become the top choice destination for foreign visitors.

The United Nations World Tourism Organization (UNWTO) has just announced the list of the top fastest tourism growing countries in the world. Notably, Vietnam ranks 7th in the list, with an increase of 24.6% in foreign visitors in 2016, just behind other 2 countries in the same continent which are Nepal (increases by 39.7%, ranks 2nd) and South Korea (increases by 30.3%, ranks 4th). Other Asian countries on the list include Japan at 8th and Indonesia at 20th. The Sierra Leone nation, which is located in West Africa, topped the list with an increase of 310% in 2016.

According to the General Statistics Office, international visitors coming to Vietnam in the first 6 months of 2017 were estimated at 6,206.3 thousand people, increases by 30.2% over the same period last year. In which arrivals by air reached 5,212 thousand people, increases by 33%; by road reached 823.5 thousand people, increases by 15.8%; by sea reached 170.8 thousand people, increases by 26%.

Of the international visitors to Vietnam in the first half of 2017, led by visitors from Asia with 4,572.7 thousand people, accounting for 73.7%. Followed by visitors from Europe with 979.3 thousand people, accounting for 15.8%.

To promote Vietnam tourism on the Internet, on July 9th, the Tourism Information Center, Vietnam National Administration of Tourism will officially launch new website “vietnamtourism.com” and special pages “Travel Destination” in English. This new interface is expected to contribute to improve the efficiency of Vietnam’s online travel advertising on the internet, creating novelty, modern features and interfaces, getting tourists centered to change the way to access and provide information to visitors.

Also for the purpose of serving tourists, on June 30th, Hanoi Transport Corporation (Hanoi Transerco) has tested a two-stage bus named City Tour.

With a value of about 7-9 billion VND, the bus is painted in bright red color for visitors to easily identify, the car equipped with 4G wifi system, many modern equipments, accessories to support up, down and lock the wheelchair in the cab for disabled clients. The 2nd floor has mobile roof to cover sun and rain.

The bus is designed for Vietnam tourism market to develop city tour product. It is expected that the first 10 buses will be put into use in July 2017. If the test run successful, Hanoi Transerco will order to produce this product domestically, scheduled to officially start operation in the next 2 months.

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State of Baden-Wuerttemberg (Germany) Opens Representative Office in Vietnam

The representative office of the State of Baden-Wuerttemberg (Federal Republic of Germany) in Vietnam has officially come into operation from July 2017 with the purpose of promoting trade and investment, paving the way for German businesses to set up business in Vietnam and vice versa.

This representative office is located at the Delegate of German Industry and Commerce in Vietnam. The office will provide information about the market, business and investment environment in Baden-Wuerttemberg to businesses in Vietnam. For businesses in the state of Baden-Wuerttemberg, the office will assist in finding partners and exploring the investment environment in Vietnam.

The State of Baden-Wuerttemberg is Germany’s third-largest state, one of Europe’s most important economic centers and also a major investment destination of this continent.

With its favorable geographic location, adjacent to France, Austria and Switzerland, the State of Baden-Wuerttemberg is the ideal gateway to the European market with nearly 500 million customers. In fact, The State of Baden-Wuerttemberg has always been a leader in exports and a major contributor to the significant growth of the German economy. The gross domestic product (GDP) of the state in 2015 is 460 billion euros, higher than the GDP of Belgium, Sweden or Austria. The global companies such as Daimler, Bosch, SAP, GFT Technologies and Posche all have their headquarters in this state.

Meanwhile, established in Vietnam since 1993, the Delegate of German Industry and Commerce in Vietnam, as a representative for Germany’s Ministry of Economy and Energy, always supports and promotes business cooperation and Investment between Germany and Vietnam.

In addition to information about the market, partners and investment locations, this office also co-operated with German businesses in Vietnam to implement projects on parallel vocational training, bringing supporting projects of the German Ministry of Economy to Vietnam in renewable energy and energy efficiency sectors, as well as supporting Vietnamese enterprises in accessing the German market via the trade fair channels.

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CPG Corp (Singapore) Invests in Hospital in Binh Dinh province

Recently, CPG Corporation from Singapore has expressed their aspiration to set up business in Vietnam.

In particular, CPG wishes to invest in the construction of a 150-bed high-class hospital; cooperation in training human resources to serve in the field of health, bringing Quy Nhon city to become a destination of health care tourism.

On July 7th, the General Director of CPG Corp (Singapore) in Vietnam has visited Binh Dinh province to find out investment opportunities. It is known that CPG Corp has 180 years of experience in such areas as development consulting, design and manage infrastructure of urban areas and industrial parks in Asia-Pacific region.

In Vietnam, CPG Corp has been involved in implementing more than 100 infrastructure development projects and participating in the design of many international airports, hospitals, hotels… in some localities.

In response to CPG ‘s aspirations, Binh Dinh province committed to creating the most favorable conditions for CPG to invest in implementing some projects in the coming time.

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FDI Flows into Vietnam’s Geotechnical Engineering

The need for strong development of infrastructure in Vietnam is attracting more and more foreign businesses in the geotechnical engineering industry to come and set up business in Vietnam.

Geonia, a leading corporation in Korea specializing in the production of high quality geotextile product (the fabric with permeability, when using to line in the soil, it is capable of separating, filtering, protecting, processing strengthening and water drainage), which are expected to achieve strong revenue in Vietnam market.

According to Geonia’s Chief Representative in Vietnam, the Government of Vietnam is promoting the construction of road and port infrastructures; therefore the demand for geotextile products is very huge. Vietnam has built a number of highways and Geonia has provided this product, with revenues of more than 5 million USD in 2014 and approximately 5 million USD in 2015. In the coming years, revenue can increase; even twice when many projects in Vietnam are performed.

At the 3rd International Conference on Geotechnical took place recently in Hanoi, not just Geonia, there were nearly 50 other foreign companies participated and wanted to find out the business investment opportunities in Vietnam, through the establishment of partnerships, joint ventures and promoting the sale of geotechnical products in Vietnam market.

According to Sales Manager of ACE Geosynthetics Company (Taiwan), until the end of 2016, this Company will set up partnership with 5 enterprises in Vietnam, bringing the total number of partners to 18, although ACE Geosynthetics has not have official investment and trade activities in Vietnam. Currently, ACE Geosynthetics is the leading exporter of geothermal synthetic products in Asia.

ACE Geosynthetics could set up factory in Vietnam in the future. Last year, ACE Geosynthetics has achieved sales growth at 2 figures. In 2016 and 2017, ACE Geosynthetics also expect to achieve such results.

Meanwhile, according to Director of Sanshin Construction Corporation (Japan), Sanshin is considering setting up partnership with local business to implement a number of large infrastructure projects in Vietnam, beginning from 2017.

Since early of this year, Sanshin has partnered with Technical Link Construction Company (Vietnam) to implement a number of industrial infrastructure projects in the southern region. In the next year, these two enterprises will jointly implement a number of other similar projects.

Many construction enterprises from Japan are coming to Vietnam for the construction of infrastructure projects. Therefore, Sanshin also wants to expand its presence here to cooperate with Japanese companies.

According to construction experts, Vietnam is a country located in geographic areas with complex geological conditions; therefore the selection of foundation solutions for infrastructure is extremely important.

In the strategy to 2020, Vietnam will basically become an industrially developed towards modernization country, so the demand for infrastructure development, industrial development, urban development during this period is very large. In particular, the Government has been setting up special policies giving priority to infrastructure development in all industries and sectors. This is the opportunity for businesses and investors at home and abroad.

According to Vice President of International Society for Soil Mechanics and Geotechnical Engineering, in Vietnam, in addition to forms of public transport in major urban centers, the economic development requires faster means of transportation over long distances. Therefore, high-speed rail and highways will soon become urgent needs. This shows that the demand for geotechnical engineering will increase in the very near future. This is the investment opportunity for many businesses.

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:

• Advisory
• 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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Potential of Vietnam’s Renewable Energy

Potential of Vietnam’s Renewable Energy

Vietnam territory is located in the tropical climate zone with over 3,200 km long coastline. Therefore, there is great potential for renewable energy development. The available renewable energy sources in Vietnamare: solar energy, wind energy, biological energy, hydropower and energy from the sea.

Vietnam has great potential for hydroelectric power, with total theoretical capacity of about 35 GW, the technical potential is about 26 GW, annually it can produce more than 100 GWh; in which the small hydropower (the installed machine capacity <30 MW) has the potential to produce about 15-20 GWh of electricity.

Until 2013, the total number of projects have been put into operation is 268 projects, with a total installed machine capacity of 14,240.5 MW. As planned, until 2017, there will be 473 projects will be put into operation with a total installed machine capacity of 21,229.3 MW. In addition, according to the Electricity Corporation of Vietnam, the potential of small hydropower has installed machine capacity of about 4,000 MW.

In a report of the World Bank in 2001, the wind energy potential of Vietnam is estimated at 512 GW, much higher compared to other countries such as Thailand, Laos and Cambodia.

Vietnam has great potential for solar energy, particularly in the Central and South of the country, with the average intensity of solar radiation of about 5 kWh/m2. The total theoretical potential of solar energy in Vietnam is estimated at 43.9 billion TOE (TOE – tons of oil equivalent).

With the advantage of being an agricultural country, Vietnam has a large and diverse biomass sources, including wood, firewood, rice husk, rice straw, sugarcane bagasse and other kind of agricultural residues. Annually, Vietnam is estimated to have over 60 million tons of biomass from agricultural waste. The biomass energy sources mentioned above can be used to produce bio-fuel (ethanol), fuel pellet, biogas and various other products.

Vietnam livestock industry is now quite developed, released to the environment annually a large amount of livestock waste in the form of solid and liquid.

According to the statistic data from national environmental status by 2014, the amount of solid waste from livestock in 2013 in Vietnam includes: 18.5 million tons from raising cows, 13.8 million tons from raising buffalo, 18.9 million tons from raising pig, 22.6 million tons from raising poultry. Part of livestock waste in rural area of Vietnam provides raw material for more than half a million active biogas in three regions of the country.

With a population of nearly 90 million people, the annually amount of domestic waste generated due to activities of the population is very huge. Domestic waste after being collected and classified can be recycled, reused and recovered energy from waste incineration or landfills.

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:

• Advisory
• 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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Changes needed for Development on Wind Energy in Vietnam

Changes needed for Development on Wind Energy in Vietnam

For economic sustainable development combined with environmental protection, the Government of Vietnam has made significant steps in the formulation of policies on renewable energy development, which take advantages of favorable conditions for the production of wind energy.

Many policies have been initiated to support wind power project, including power price assistance from central budget; assistance to grid and off-grid connected wind power projects… focusing on wind power electricity development target to achieve the total wind power capacity from the current negligible level to around 800 MW by 2020 and around 6,000 MW by 2030, raising the rate of electricity from wind power accounted for 0.8% in 2020 to 2.1% in 2030.

Some financial policies for investment projects under the Clean Development Mechanism (price supporting mechanism) are issued. Moreover, the Government published independent mechanisms to support wind power projects on electricity price for grid-connected wind power projects, power purchase agreements for wind power projects.

Nonetheless, there are difficulties in the development of wind power projects in Vietnam that should not be ignored. The first thing is difficulty of legal framework. The system of legislation, mechanisms and policies for wind power development are not synchronized.  New project must be granted by the Ministry of Industry and Trade to establish the supplementary planning procedures prior to implementation.  Power purchase agreement with EVN will be required as the initial condition to obtain investment permission.

Moving toward the future of clean energy in Vietnam, the Government should focus on implementation of preferential treatment to wind energy projects to increase the competitiveness of this renewable energy. In addition, the Government should also collaborate with investors, and industry experts to continue to research the wind power potential in Vietnam, further attract investment and assistance from domestic and international organizations for the wind power projects.  Further, it is in the meantime required to have synchronized policies, legislations with the establishment of government authority to execute wind power planning and management to remove unreasonable barriers.

The increase in purchasing price from EVN will be attracting more investment.  It has been discussed on the increase of buying price from 7,8 US cent/kWh however the timeline for the increase has not yet been finalized.

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:

• Advisory
• 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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Solar Energy Power Future in Vietnam

Although the initial investment cost for solar energy in Vietnam is high but it brings in opportunities for cheaper option than thermal power technology being used in Vietnam.

In other country, solar power plants are competing fiercely with the thermal power plants running on coal.

In Vietnam, Thien Tan solar energy plant has been started to construct on 24 ha land in Quang Ngai with capacity of 19.2 MW at investment of VND 800 bil.  The Ministry of Industry and Trade has also approved the investment project of Tuy Phong solar energy plant on 50 ha land in Binh Thuan with capacity of 30 MW at investment of VND 1,454 bil.  This will open opportunities for renewable energy to contribute to the effort of protecting the environment and curbing climate change.

The solar energy is new in Vietnam therefore the investment in this area is at very early stage.  However, the foreign investors have been increasingly interested in seeking opportunities in investment in solar energy projects.

Similar to investment in wind power energy in Vietnam, one of the concerns for investors is the expected increase in purchasing price from Electricity Vietnam Corporation, the party whom purchase the electricity on Power Purchase Agreement (PPA).   Further, legal frameworks for promoting solar energy investment are not yet finalized.  Accordingly, the contribution ratio of renewable energy in Vietnam is minimal.  The Vietnam government has been trying to put some effort to increase the renewable energy contribution to 5,6% (in 2020) and 9,4% (2030).

 To achieve this, Vietnam government shall need to be consulted on plan to support the solar energy investment project in Vietnam in tax, land, capital, power purchase agreement.  Investors would need to be consulted by local consulting firm on process, procedures on investment policy, appraisal process, power purchase agreement, and other steps to develop and execute an energy project in Vietnam to improve the effectiveness of the investment in renewable energy.

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:

• Advisory
• 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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US President Donald Trump is Visiting Vietnam in November 2017

According to the White House, US President Donald Trump will visit Hanoi after attending the APEC Summit in Da Nang in November.

On October 16th, The White House announced details of President Trump’s upcoming visit to Asia, with destinations in Japan, South Korea, China, Vietnam and the Philippines in early November.

The President’s visit will underscore his commitment to longstanding US’s partnerships and alliances, and reaffirmed US’s leadership in an open and free India-Pacific region.

Trump will attend the Asia-Pacific Economic Cooperation (APEC) Forum in Da Nang on November 10th.

In Da Nang, the US leader is expected to deliver a speech at the APEC CEO Summit, in which the White House said that it would “highlights the US vision for an open and free India-Pacific region, underscores this region’s significant role in promoting US economic prosperity.”

On November 11th, President Trump will visit Hanoi to meet Vietnam President Tran Dai Quang and other senior Vietnamese leaders.

President Trump’s Asian visit is expected to last 11 days, from November 3rd – 14th.

After a stopover in Hawaii on November 3rd, the US president will visit Japan for two days from November 5th– 6th, visiting South Korea on November 7th and China on November 8th.

After spending two days in Vietnam on November 10th– 11th, the US President will have a two-day visit to Manila, Philippines. On November 12th, Trump will attend a dinner party celebrating the 50th anniversary of the founding of ASEAN and the 40th anniversary of US – ASEAN relationship on November 13th. Trump’s last day schedule in the Philippines will include a meeting with President Rodrigo Duterte.

The White House in September confirmed President Trump’s first Asian tour in November, marking the first visit to this region since his inauguration in January.

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German Investors Funded 15 Million USD for Kinh Bac to Implement Workshop Project

Japan-Vietnam economic cooperation will form a new value chain

The total investment value of the project is 33.4 million USD, equivalent to about 755 billion VND, which is invested in construction and development in industrial zones.

According to information from Kinh Bac City Development Holding Corporation (KBC), the subsidiary of this unit is Kinh Bac Office and Workshop Trading One-Member Limited Company has just reached an agreement: signed contract to finance a project to build a workshop with the German Investment Corporation (DEG) under the German Development Bank (KfW). KfW is now managing more than 600 billion euros.

Accordingly, Kinh Bac Office and Workshop Trading One-Member Limited Company will receive a long-term loan from the DEG worth 15 million USD (total value of the project is 33.4 million USD) with a loan term of up to 8 years to supplement the capital for construction and development of workshops in industrial zones.

According to DEG’s representative, Mr Hubertus Pleister – Director of DEG Asia, Vietnam’s economy has grown steadily, continuously and sustainably over the long term, this is an important market, with many investment inflows. In addition, KBC is known as a prestigious business in the field of real estate and calls for foreign investment in industrial parks.

According to KBC, in addition to sponsored the above funds, DEG also committed to support KBC to access to other long-term development funds from financial institutions under the European Development Finance Institutions (EDFI) where DEG is a key member. KBC has undergone a rigorous 2-year appraisal process that ensures DEG’s criteria for financial capacity, management and environmental factors.

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Foreign Investors Implement Food Projects in Vietnam

Foreign investors who are licensed to invest in the food sector in Ho Chi Minh City are in the process of implementing the project, while other projects are interested by foreign partners. It shows the excitement of investors when deciding to set up business in Vietnam.

In particular, project of Nam Duong International Food Co., Ltd with registered capital of 25.6 million USD has completed the construction of the factory, installation of equipment and machinery. The project is licensed by the end of 2015, which is a joint venture between the Saigon Co-operative Alliance (Saigon Co.op) and Wilmar International Limited (Singapore), with the capital contribution of 49% and 51% respectively. The project aims to produce sauces and spices for domestic and export markets.

Wilmar’s investment in Vietnam and cooperation with Saigon Co.op is to utilize strengths from both sides to improve the competitiveness and coverage of Nam Duong brand as well as contribute significantly to the development of the sauce and spices industry.

Meanwhile, the project of CJ Cau Tre Foods Joint Stock Company, with investment capital of 53.3 million USD, which was licensed by the end of May 2017, is being expedited by investors to implement the procedures under regulations to prepare to start construction.

This is a food processing complex on an area of 7.1 ha, including food processing plant, research and development center, modern food safety center… The 1st phase of the factory has designed capacity of 12,000 tons of products per year, which will be consumed domestically and exported to markets such as Korea, Japan, USA, EU…

The project is invested by CJ Cheiljedang Corporation (Korea) through the ownership of 71.6% stake in Cau Tre Export Processing Joint Stock Company.

We can see that, in recent times, many foreign investors have approached the market by acquiring or holding controlling shares in local companies and it is forecasted that this trend will continue.

In terms of attracting investment in the coming time, Ho Chi Minh City has many incentive policies for projects in 4 key industries, which are food processing, chemicals – rubber, mechanical and electronic – information technology. The field of food processing has received a lot of attention from many foreign investors and the fact that many large-scale investment projects have been licensed.

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New Taste of Singaporean Investors

Recent projects of Singaporean investors have shown new features in the investment taste of Singapore enterprises when they decide to set up business in Vietnam.

In July 2017, United Overseas Bank (UOB – Singapore) was approved by the State Bank of Vietnam (SBV) in principle to set up a 100% foreign owned bank in Vietnam. The list of personnel proposed to be appointed as members of the Board of Members, the Board of Supervisors, the General Director of UOB has also been approved. After much waiting, UOB finally has a “passport” to operate in Vietnam as a bank with 100% foreign capital in Vietnam. What is left is just completing the dossiers and procedures for the SBV to make the final decision.

UOB is the first bank in Singapore setting up a subsidiary in Vietnam. This event seems to mark the “new taste” of Singaporean investors. Previously, Singapore’s investment capital is mainly focused on such projects as processing, manufacturing and real estate. Now, it seems that the cash flow is changing direction.

Not just banking project, latest information indicates that Singaporean investors have also begun to pay attention to the energy sector in Vietnam. Last year, UOB under UOB Venture Management Pte Ltd (UOB VM), along with ORIX Corporation (Japan) have invested 25 million USD in Bitexco Power JSC under Bitexco Group. The involvement of well-known global organizations like UOB and ORIX will make a significant contribution to Vietnam’s energy sector.

In addition, Sembcorp is also a Singaporean investor willing to invest billions of dollars for a power plant in Vietnam.

According to the information, at the end of July 2017, Sembcorp’s representative went to Quang Ngai to officially report to the leaders of this province that Sembcorp will have a Feasibility Study Report at the end of this year about the gas thermal power plant in Dung Quat Economic Zone.

Last year, The Blue Circle – Singapore’s wind power developer has received an investment certificate for a 40 MW project in Ninh Thuan province, with investment capital in the 1st phase of 60 million USD.

In fact, Singapore has always been a leading investor in Vietnam. According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the accumulated capital so far invested by Singaporean enterprises is 41.6 billion USD, ranking 3rd in countries and territories investing in Vietnam. Many of Singapore’s projects have contributed significantly to Vietnam’s socio-economic development.

One of the noteworthy examples is Sembcorp joint venture with Becamex to develop a series of VSIP industrial parks and urban areas spanning across Vietnam, from Binh Duong, Bac Ninh, Hai Duong to Quang Ngai, Nghe An, Hai Phong… At the beginning of this year, VSIP decided to invest in a third industrial zone in Binh Duong, with a total registered capital of 284.75 million USD.

Not only VSIP, many other Singaporean investors have also succeeded in Vietnam and are continuing to boost investment. Last year, Mapletree Investment Pte Ltd decided to acquire Kumho Asiana Plaza Saigon in District 1, Ho Chi Minh City from Kumho Industrial Company Limited and Asiana Airlines Incorporated. After this deal, Mapletree’s assets in Vietnam amounted to more than 1 billion SGD.

Prior to Mapletree, Keppel Land has also acquired 40% of the Empire City project in District 2, Ho Chi Minh City, equivalent to 93.9 million USD. Not to mention, many other Singaporean enterprises have also invested much in Vietnam, such as Banyan Tree with Laguna Lang Co project, total capital of 875 million USD; or KinderWorld with a series of international schools in many provinces, cities and is continuing new investment plans…

Not stopping with the current results, Singaporean enterprises are still quietly looking for new investment opportunities in Vietnam. The fact that UOB opened a subsidiary in Vietnam is to serve the purpose of investing more and more in Vietnam of Singaporean enterprises.

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