Joining CPTPP – Opportunity for Vietnam to Attract Quality Investors

The UK discussed for the first time with all CPTPP members, including Vietnam, to discuss joining this agreement.

Pursuing the goal of joining the CPTPP is one of the UK government’s priorities and is an important part of the free trade strategy.

Becoming a CPTPP member not only opens new opportunities for UK businesses, but also promotes investment and trade as well as develops sustainable economic cooperation between the UK and CPTPP members.

British companies have invested nearly 98 billion pounds (125.27 billion USD) in CPTPP members in 2018. By 2019, the value of trade transactions between the UK and CPTPP member countries is more than 110 billion pounds.

CPTPP will help complement bilateral trade agreements that the UK has entered or is negotiating with CPTPP members.

Currently, the UK and Vietnam are also working hard to translate the EU-Vietnam Free Trade Agreement (EVFTA) into the UK-Vietnam Bilateral Trade Agreement later this year. This will ensure continuity and bring commercial benefits to both British and Vietnamese businesses; at the same time, British businesses coming to Vietnam to set up company will also want to take advantage of attractive trade conditions.

The UK is the 15th largest investor in Vietnam in terms of investment accumulation and the 13th largest investment country in 2019. British investors who are present in Vietnam include HSBC financial services firms, Standard Chartered Bank, Prudential; Jardines in real estate; AstraZeneca and GSK in the pharmaceutical sector…

In 2019, bilateral trade in goods and services between Vietnam and the UK reached about 5.8 billion pounds (7.41 billion USD). The total trade turnover between the two countries grew at an average rate of 13% per year in the 2009-2019 period.

According to the World Economic Forum’s (WEF) Global Competitiveness Report, Vietnam’s global competitiveness 4.0 has significantly improved. Vietnam has also announced a national vision for the development of a digital economy with the goal that by 2030, a digital economy will reach 25% of GDP.

These are areas where the UK can help Vietnam such as smart city development, digitalization in construction and healthcare, fintech application to support inclusive business and financial growth.

The CPTPP will reduce tariffs between member countries by 95% and establish modern rules in areas that are increasingly important to UK businesses, including digital commerce, data, finance, and professional and business services. It is expected that areas like fintech, medtech and AI will grow rapidly.

Vietnam is the leading anti-Covid-19 country in the region. This is not only a testament to a strong public health, but also demonstrates Vietnam’s resilience. The International Monetary Fund (IFM) forecasts that Vietnam’s economic growth in 2020 will reach 2.7%. Vietnam has become the fastest growing economy in the region, outside Singapore; increasingly open to global trade…

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Da Nang urgently implements solutions to support enterprises in Covid 19

On September 14, 2020, the People’s Committee of Da Nang city issued Official Letter No. 6125/UBND-SKHDT regarding the proposal of the Association of Small and Medium Enterprises of the city on enterprise support policy.

Accordingly, the City People’s Committee proposed departments, agencies, district People’s Committees to implement many solutions to further promote propaganda and dissemination of mechanisms and policies to support businesses by sectors and applications. Local authorities are implementing, increasing propaganda on the mass media so that businesses wishing to easily access information and enjoy policies.

For the policies under the regulatory authority of Central Government being implemented by the units, there are regulations on subjects, criteria and conditions for application that still face many difficulties for enterprises, not many enterprises meeting all conditions to enjoy policies, proposing units to study and make specific recommendations to the Central Government to promptly adjust, ensure that the policy is effectively implemented in practice; proactively send documents to associations and business associations so that associations can fully grasp information, serving as a basis for disseminating to member enterprises.

With regard to interest support policies and urgent support policies for affected enterprises by Covid-19, request the Department of Finance, Department of Labor, War Invalids and Social Affairs, Department of Taxation, State Bank Vietnam – Da Nang branch, Social Insurance of Da Nang city, Investment and Development Fund of Da Nang city and related units urgently implement to support enterprises to overcome difficulties and stabilize production, business early.

Da Nang city has been implementing many policies to support enterprises in the area; especially, in the context of both the prevention of the Covid-19 epidemic and economic development at present.

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Hai Duong Improves the Quality of Attracting Foreign Direct Investment

With 450 foreign direct investment projects with a total registered investment capital of over 8.36 billion USD, Hai Duong is becoming a destination for foreign investors to come and set up company in Hai Duong.

In 2019, the socio-economic situation of Hai Duong continues to be stable, developed and completed, exceeding 11/16 targets set out in the plan. Gross domestic product of the province is estimated to increase by 8% compared to 2018.

In the field of attracting investment, according to Hai Duong Department of Planning and Investment, up to November 2019 in the province has granted 60 new projects with a registered capital of 428.1 million USD (27 projects outside industrial parks, with capital of 175.1 million USD; 33 projects in industrial parks with capital of 253 million USD), an increase of 76% compared to 2018. It is expected that by the end of 2019, the province will grant 61 new projects with total registered capital of 446.1 million USD, up 60% compared to 2018.

The projects focus on manufacturing high-tech products, electrical products and electronic components, automobiles, cement, steel, textiles, manufacturing, precision engineering equipment.

The point of recognition is that the scale of investment projects is quite even, reaching 7 million USD/project. Some projects have good capital scale such as paper manufacturing factory (40 million USD); Magnets Project Ferrite Union Materials (22.7 million USD); George Glory Leather and Footwear Production Project (37 million USD); BW Hai Duong Industrial Development Project (32.2 million USD); Tinh Loi Garment Project (39 million USD).

In 2019, there are 13 countries and territories having investment projects in the area. In general, investors coming to learn and invest still focus on some familiar countries such as Hong Kong, Korea, China, Samoa, Japan, Singapore, British Virgin Islands, Seychelles…

It can be seen that Hai Duong province is increasingly an attractive destination for foreign investment.

The attraction of FDI projects has contributed significantly to the mobilization of Hai Duong’s total social investment capital in socio-economic development, job creation and income generation for Hai Duong workers; ensure social security, reduce poverty, increase revenue for local budgets.

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Flourishes in Attracting Investment in Can Tho

Can Tho has welcomed many large-scale investment projects from foreign and domestic investors come to set up company in Can Tho.

The city has issued investment policy decisions for 18 domestic projects, with a total registered capital of over 25,046 billion VND and 9 projects with foreign direct investment (FDI) with a total registered capital of 65.28 million USD. Accumulated to date, Can Tho has a total of 103 domestic investment projects, with a registered capital of over 63,324.76 billion VND and 86 FDI projects, with a total registered capital of over 748 million USD.

Business development situation of Can Tho also has positive changes. It is estimated that in 2019, the city issue new business registration certificates to 1,500 enterprises of all types, with a total registered capital of 11,500 billion VND, an increase of 7.37% in the number of businesses and an increase of 46.98% of registered capital compared to 2018, bringing the total number of active businesses to about 10,000; accounting for about 26% of all businesses in the Mekong Delta region.

Over the years, Can Tho has invested strongly in the infrastructure system, especially the transport infrastructure, step by step completed in a synchronous and modern manner, better meeting the needs of socio-economic development and attracting investment not only for Can Tho, but also for the whole Mekong Delta region.

In terms of maritime, the central port of Can Tho including Hoang Dieu and Cai Cui wharves has completed upgrading and basically completed to accommodate such vessels as 10,000 DWT full-load and 20,000 DWT to reduce loading. The shipping channel project for large vessels entering the Hau River has been completed and cleared with technical channels, creating favorable conditions for transporting import and export goods.

Regarding aviation, Can Tho International Airport has strengthened the exploitation of more domestic routes to and from major cities in the country, along with two international routes to Thailand and Malaysia. Especially, from the beginning of 2020, the route of Can Tho – Seoul (Korea) operated by VietJet will officially open with the frequency of 3 flights/week.

Regarding road traffic, as planned, in April 2021, Trung Luong – My Thuan expressway will be put into use. Along with that, the My Thuan – Can Tho expressway deployed to invest will connect smoothly and quickly Can Tho with Ho Chi Minh City – the largest economic center of the country.

Besides, the investment promotion and image promotion of the locality are paid special attention. In 2019, the City has organized many missions to promote domestic and foreign investment cooperation, focusing on potential markets suitable to local investment attraction needs, such as Japan, Malaysia, Singapore, Czech Republic, Russia…

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Set-up company in Da Nang

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

The Vietnam prime minister has established central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Da Nang, 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, Da Nang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Da Nang – 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.

Currently, the road system in Laos, Thailand and the road line from Da Nang 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 Da Nang 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

Da Nang – entrance of the cultural heritage and natural wonders of the world

Da Nang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Da Nang, 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 Da Nang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30 km from the southeast) and My Son (about 70 km from the southwest).

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

Infrastructure is step by step improved

Da Nang 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.

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

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

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

Telecommunication systems: Da Nang is one of three major telecommunication centers of the country, international transmission speed with good quality of Southeast Asia. Da Nang 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 Da Nang. 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

Da Nang 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 Da Nang are lower than some other cities in the country.

Da Nang 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 Da Nang 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. Many IT company has chosen Da Nang to set up company in da nang to hold their talents for international projects.

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 Da Nang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Da Nang always bring a sense of peace, comfort and closeness to nature. Da Nang 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.

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

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Vinh Phuc Wants to Attract Investment in High Technology

The results of investment attraction are not commensurate with the potential and advantages of Vinh Phuc province, not meeting the expectation of attracting resources for development investment. Therefore, Vinh Phuc urgently needs investors come to set up company in Vinh Phuc, especially technology projects, high quality, environmental-friendly and great socio-economic efficiency.

According to the Chairman of the Provincial People’s Committee, although Vinh Phuc is considered a bright spot in attracting investment in the Northern region with 752 domestic direct investment projects in the country (DDI) with a total capital of over 78,000 billion VND (3.3 billion USD) and 378 FDI projects with a total registered capital of over 5 billion USD, but this result is not commensurate with the potential and advantages of the province, not meeting the expectation of attracting resources for development investment to achieve long-term goals.

Many large corporations in the world such as Toyota, Honda, Daewoo, Samsung, Compal,… have invested in Vinh Phuc, focusing mainly on the fields of processing technology, manufacturing and assembling electronics. Foreign investors in Vinh Phuc are mainly from Northeast Asian countries, such as Japan, Korea. European and US investors account for a relatively modest proportion.

Vinh Phuc currently has 10/376 FDI projects, accounting for nearly 3% of the total FDI projects from European countries and the US.

In the coming time, Vinh Phuc needs technology projects, high quality, environmental- friendly, bringing great socio-economic efficiency. In particular, in order to encourage investment in the development of supporting industries for automobiles, motorcycles, electronics, telecommunications, and food processing industry.

Regarding agriculture, Vinh Phuc hopes to develop high-tech agriculture, clean vegetable production projects and high-tech cattle and poultry breeding, and agricultural product processing projects. The province gives priority to attracting investment projects on infrastructure business of industrial parks and clusters, especially investment in specialized infrastructure, creating connections and linking clusters.

With a very diverse and abundant number of businesses both domestically and abroad, Vinh Phuc has created an extremely convenient industrial ecosystem in recent years, in accordance with the requirements of businesses and investors from Europe and the US who are inherently high technology, source technology and want to take advantage of existing businesses as a supply and support partner in the province.

In addition to the advantages of transportation system, Vinh Phuc has advantages that locating in the Northern key economic region, Kunming – Lao Cai – Hanoi – Quang Ninh economic corridor and the Northern industrial development belt.

With these potentials, advantages and the supportive attention of authorities at all levels in solving difficulties and obstacles for businesses, it is believed that Vinh Phuc will become a favorite destination for European the US investors.

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Binh Duong Finished the FDI Attraction Plan 2016 – 2020

With more than 9.9 billion USD of FDI capital from 2016 to October 2019, Binh Duong has completed early and exceeded the plan to attract FDI and investors come to set up company in Binh Duong in the period 2016 – 2020, creating a premise for the breakthrough developments in next time.

According to the latest report of Binh Duong Department of Planning and Investment, from the beginning of the year to October 31st 2019, over 2.77 billion USD of FDI was licensed to invest in Binh Duong, increases by 69% compared to the same period last year and far surpassed this year’s plan (the plan is to attract 1.5 billion USD).

This result has brought Binh Duong to the third position in the country in terms of FDI attraction. Up to now, Binh Duong province has attracted more than 3,700 FDI projects from 64 countries and territories with a total registered capital of nearly 34 billion USD, mainly in the fields of industrial production, trade and services.

Some large-scale projects licensed to invest in industrial zones from the beginning of the year until now are: projects of Sharp Manufacturing Co., Ltd. (Japan), investment capital of 135 million USD; 2 projects of BW Industrial Development Company Limited (joint venture between Becamex IDC and Warburg Pincus LLC, USA) with total registered capital of 106 million USD; the project of Nitto Denko Co., Ltd (Japan), investment capital of more than 186 million USD…

In order to attract sustainable FDI, Binh Duong province has implemented the Renewal Program to attract investment in the 2016 – 2020 period, which aims to attract 7 billion USD of FDI in the whole period.

Updated information from the Department of Planning and Investment of Binh Duong shows that from 2016 to the end of October 2019, Binh Duong attracted more than 9.9 billion USD of FDI, exceeding 41% compared to the 2016 – 2020 5-year plan, exceeding both the attracted investment capital and the completion time compared to the set plan.

According to the statistics of functional departments of Binh Duong province, with nearly 75% of total FDI capital in the field of industrial production, in the period of 2011 – 2016, the FDI sector contributed over 67% of the industrial production value of the province, ensuring the economic structure of the province in the right direction with industry and services playing a leading role.

In 2018, the FDI sector contributed over 49.6% of the total social investment capital and accounted for nearly 20% of Binh Duong’s total budget revenue. FDI enterprises also contribute to connecting with domestic enterprises, focusing on industries with high technology content, supporting industries, producing competitive products, contributing to meeting supply needs of raw materials for production of domestic enterprises as well as creating high export value, contributing to the province’s trade surplus in 2018 reached nearly 5 billion USD…

Program No. 34-CTr / TU of December 15th 2016 of Binh Duong Provincial Party Committee on renovation and attraction of investment in the 2016 – 2020 period in Binh Duong province aims to focus investment attraction in the cooperation with large economic corporations in the world; strengthen calling and attracting FDI in high-tech fields with high added value, less labor-intensive and environmentally friendly; focusing on attracting to industrial zones, planned industrial clusters…

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FDI Is Expected to Flow into Vietnam After the Covid-19 Epidemic

The Covid-19 epidemic is also considered an opportunity for Vietnam to receive faster flows of foreign investment, especially capital flows away from China.

According to the Director of Foreign Investment Department (Ministry of Planning and Investment), a large US corporation is planning to invest a multi-billion-dollar project in Asia. The two locations they considered were China and Vietnam. Given the situation of the Covid-19 epidemic in China, it is likely that they will choose Vietnam. In March, they will make a final decision…

A group of Korean and US investors interested in LNG power projects in Vietnam is probably one of the rare foreign business delegations coming to Vietnam at the time of the outbreak of Covid-19. On February 11th, they went to the Government Office and the Ministry of Planning and Investment to work on this content.

Without hiding ambition, according to representative of Korean investors consortium including Korea Gas Corporation, Southern Korea Electric Company, Hanwha Group… – they want to invest into LNG port and gas power plant projects in Vietnam. Even in addition to the electricity sector, these investors also want to invest in other areas in Vietnam.

The fact that foreign investors still coming to Vietnam at this time proves the attraction of Vietnam. The postponement and cancellation of investment promotion trips of foreign investors is only momentary.

In addition, according to the National Center for Socio-Economic Information and Forecast, the Covid-19 epidemic showed that the world was too dependent on China.

Having similar views, the New York Times also forecast that the flow of foreign investment from China to Vietnam to avoid US taxes could be accelerated by the Covid-19 epidemic.

According to the representative of JETRO Hanoi Office, in order to disperse risks, 122 Japanese enterprises asked by JETRO said that they decided to relocate their production in China and the place to be moved to the top is Vietnam.

Vietnam is at the top of the list, with 42.3% of the 122 businesses mentioned above have chosen. Following Vietnam is Thailand (20.6%), Philippines (18.6%) and Indonesia (16.5%). Japanese enterprises moving away from China not only because of trade war, but also to evade the increasing input costs in this market.

In the international market, it is forecasted that the flow of international investment into China and investment from China to foreign countries will face difficulties in 2020, even possibly sharply decline in the first quarter of 2020. The Covid-19 epidemic, if combined with geopolitical risks, trade war risks… also makes the global political, economic and social environment even more uncertain, promoting defensive psychology, shrinking, thus weakening investment motivation.

This is an opportunity for Vietnam to have policies to attract investors who are intending to narrow production in neighboring countries and invest in Vietnam. Investment promotion units should proactively work with foreign investors who have plans to invest in Vietnam to discuss, orient and unify the preliminary investment procedures.

Besides, in the long term, it is necessary to continue improving the investment and business environment, amending policies and strategies to attract foreign investment.

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Korean Venture Capital Poured into Vietnam

According to Adjust’s Mobile Growth Map – a mobile market research company, Vietnam is the fastest growing application market that keeps Internet users.

In 2017, Korean President Moon Jae-in announced a new policy aimed at strengthening the relationship between Korea and ASEAN. These policies have boosted the dynamism of Korean companies to Southeast Asian business.

More and more companies in every field aim to Southeast Asia. Many of them, are venture capitalists.

Over the past two years, Southeast Asian technology companies have signed numerous agreements involving Korean investors, such as the 50 million USD investment in Bukalapak e-commerce company of Mirae Asset-Naver Growth Fund, seed sponsorship deals for real estate startups from BonAngels Venture Partners and Kakao Ventures.

In addition to trade and real estate, Korean venture capital funds have poured money into almost every other important area of Southeast Asia including fintech (KIP’s investment in C88 in Singapore), car (SoftBank Ventures Korea in Singapore by Carro), travel (BonAngels and Nextrans in Vietnam) and logistics (Nextrans and FuturePlay into EcoTruck Vietnam).

In recent years, Korean venture capital companies have also established joint funds with partners in Southeast Asia to target startups in the region, including a cooperation fund worth 87 million USD of Korean Investment Partners with Golden Equator, the 100 million USD cooperation fund of Intervest and Kejora Ventures. The bigger ones are Hanwha Asset Management and Golden Gate Ventures with 200 million USD fund and most recently the investment fund of about 100 million USD of KB Investment and MDI Ventures.

In 2017, Southeast Asia’s private capital and venture capital surpassed Europe for the first time, with the amount of 23.5 billion USD invested in this area, nearly three times higher than in 2016, according to data from Singapore Venture Capital & Equity Association

(SVCA). Investments in startups doubles to 8 billion USD. In 2018, Alibaba invested an additional of 2 billion USD in Lazada while Indonesia’s Gojek closed the 1.5 billion USD funding round.

Korean investors pay special attention to Indonesia and Vietnam. According to the Vietnam Technology Investment Report of Cento Ventures and ESP Capital, 13 of 61 venture capital funds operating in Vietnam in the first half of 2019 are Korea.

According to Adjust’s Mobile Growth Map – a mobile market research company, Vietnam is the fastest growing application market that keeps Internet users.

One of the reasons is that Vietnam is the market with the largest potential for internet growth worldwide.

That’s why so many businesses come to this region, and so many acquirers are actively looking for Southeast Asian companies. Silicon Valley giants like Google and competitors are beginning to look more seriously at Southeast Asian companies as an investment and acquisition opportunity.

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M&A Foreign Capital Dominates, Pouring into Education

Foreign investors are interested and want to invest in Vietnam education market.

Foreign direct investment (FDI) into education sector from August 2018 – the time when Decree 86/2018/ND-CP takes effect – reached 97 million USD in October 2019, of which M&A activities, in particular buying shares in education sector accounted for 37%.

This figure shows that foreign investors are more interested in a more collaborative strategy to reduce risks in education investment.

Regarding the trend of attracting foreign capital into Vietnam’s education market, FDI into this field will continue to increase, in which the trend of cooperation is a key strategy.

In 2018, the education sector had two important Decrees: Decree 135 and Decree 86. These two decrees have simplified conditions for investment in the education sector for both domestic and foreign investors.

In particular, Decree 135 has simplified the legal and operation requirements, shortened administrative procedures, while Decree 86 has reduced the requirement for personnel and increased the enrollment limit for Vietnamese students.

Overall, education accounts for less than 2% of total FDI into Vietnam. High tax costs, personnel requirements, minimum required capital for foreign investment, besides a complex approval process are some of the significant barriers for foreign investors.

It is still too early to fully assess the impact of Decree 86, but it can be seen that the level of foreign investors’ interest in Vietnam’s education market has increased significantly.

Before the effective date of Decree 86, foreign investors faced many barriers when investing in education, such as limiting the percentage of Vietnamese students: 10% for primary school and 20% for high school level. International schools in Vietnam therefore depend heavily on the enrollment of foreign students.

After this Decree came into effect, international schools took advantage of opportunities and promoted the enrollment of Vietnamese students. This move has certainly affected the attraction of foreign investors considering the attractive opportunities of the international education market in Vietnam.

The number of international schools in Vietnam with affordable tuition is quite limited, but often, schools with small and old campuses and basic facilities will have a modest tuition fee. ExpatFinder’s latest international school fee survey shows that the average annual tuition of international schools in Vietnam is 17,940 USD, ranking 13th in the world and 5th in Asia. Countries with higher fees may include China, Singapore, Hong Kong and Australia. However, there is always a significant source of demand for international schools in Asia, because this is the stepping stone for their children to apply for prestigious universities in the Western countries.

In addition, the recruitment needs of children from foreign experts in Vietnam are also increasing. Vietnam will attract more FDI after the signing of trade agreements and become an ideal alternative destination for multinational companies in the context of the US-China trade war.

The number of foreigners working in Vietnam will increase, bringing with them their families, thereby creating a significant demand for international education, especially in cities that attract a lot of FDI. In 2018, Vietnam had more than 320,000 foreign workers, an average increase of 8% per year since 2008. A survey of HSBC’s foreign workers in 2019 showed that Vietnam rose from the 19th position to 10th on the ranking of countries with “attractive working and living environment” because of low living costs and rising incomes.

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The processing and manufacturing industry leads in attracting foreign investment in Vietnam

In the first 05 months of 2021, the processing and manufacturing industry continues to be the leading industry in attracting foreign investment, with a total investment capital of 6.14 billion USD.

According to the General Statistics Office, in the first 05 months of 2021, the foreign investors have invested in 18 industries and fields, of which the processing and manufacturing industry leads the way with a total investment of 6.14 billion USD, accounting for 43.9% of total registered investment capital.

The field of electricity production and distribution ranked second with a total investment of 5.43 billion USD, accounting for 38.8% of the total registered investment capital. Followed by real estate, wholesale and retail business with a total registered capital of 1.05 billion USD and nearly 522 million USD.

According to statistics, until the end of May 2021, the total newly registered capital, adjusted and contributed capital, bought shares, purchased capital contribution of foreign investors reached nearly 14 billion USD, up by 0. 8% over the same period in 2020, realized capital of foreign direct investment projects were estimated at 7.15 billion USD, up 6.7% over the same period in 2020.

In the first 5 months of 2021, there were 613 new projects granted investment registration certificates, the total registered capital reached nearly 8.83 billion USD (up 18.6% over the same period), 342 projects registered to adjust investment capital, the total registered capital increased to 3.86 billion USD, and 1,422 times of capital contribution to buy shares from foreign investors, total value of capital contribution reached 1.31 billion USD.

According to investment partners, there are 70 countries and territories have invested in Vietnam, of which Singapore leads with a total investment capital of 5.26 billion USD, Japan ranks second with a total investment capital of 2.59 billion USD, Korea ranked third with a total registered investment capital of 1.83 billion USD, followed by China, Hong Kong, Taiwan…

In 2021, although still affected by the Covid-19 epidemic, with many policies to restore the economy and support foreign investors, Vietnam has made many outstanding achievements in attracting FDI. With this achievement, Vietnam hopes that many international investors choose Vietnam as an investment destination for setting up company not only in the field of processing and manufacturing but also in many other investment fields so that they can contribute to promoting the country’s economy and investors in the future.

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An Additional of 60 FDI Projects Received Investment Licenses into Hanoi

According to Hanoi’s Department of Planning and Investment, in November, the city had 60 newly licensed FDI projects with a total registered capital of 600 million USD.

Of these, there are 52 projects with 100% foreign direct investment; 8 joint venture projects. Besides, there are 8 projects being adjusted to increase investment capital with the additional capital of 6.7 million USD.

Also, in November 2019, foreign investors contribute capital and buy stakes reach 72.9 million USD.

Notably, during the recent Prime Minister’s business trip to Korea, the leader of Hanoi People’s Committee awarded 4 investment policy decisions worth more than 400 million USD, signing the memorandum of understanding to invest in Hanoi worth more than 4 billion USD.

Accumulated from the beginning of the year to November 25th 2019, the total registered capital of newly established projects and additional capital increased projects reached 2,142 million USD, of which newly registered 788 projects with total capital of 1,562 million USD; 160 additional projects register to increase investment capital of 580 million USD.

In the first 11 months of 2019, foreign investors contributed capital, buying capital contribution reach 5,330 million USD.

Previously, in October 2019, Hanoi had 91 newly licensed FDI projects with a total registered capital of 468 million USD, of which 72 projects were 100% foreign direct investment, 19 joint venture projects. Of these, foreign investors contribute capital and purchase shares reach 5,330 million USD. The number of projects terminating, suspending and dissolution is 27 projects, of which 24 projects are 100% foreign direct investment and joint ventures are 3 projects.

Major projects from the beginning of the year until now have invested in Hanoi such as the capital contribution and share purchase project of Beerco Limited (Hong Kong) in Vietnam Beverage Co., Ltd., the value of the capital contribution is 3.85 billion USD with the main target of brewing and brewing malt in Hanoi. The project Meiko Electronics Co., Ltd. (Hong Kong) with the goal of designing, assembling and manufacturing electronic components in Hanoi adjusts to increase an additional of 200 million USD investment capital.

Hanoi together with many leading corporations in Japan also exchanged memorandums of understanding (MOUs) on investment cooperation in many projects in the city with a total committed investment capital of up to 3.75 billion USD.

In addition, the newly released data of Foreign Investment Agency (Ministry of Planning and Investment), in the first 11 months, the country has attracted nearly 31.8 billion USD of foreign investment, up 3.1. % compared to the same period last year.

Specifically, in 11 months, capital contribution and share purchase reached US $ 11.24 billion, up 47.1% over the same period in 2018 and accounting for 35.4% of the total registered capital. Meanwhile, both newly and increased capital decreased. Specifically, newly granted capital reached 14.68 billion USD, down 7%; additional capital reached US $ 5.87 billion, down 10.7% over the same period last year.

In addition, the newly released data of Foreign Investment Agency (Ministry of Planning and Investment), in the first 11 months, the country has attracted nearly 31.8 billion USD of foreign investment, increase by 3.1% compared to the same period last year.

Specifically, in 11 months, capital contribution and share purchase reached 11.24 billion USD, increase by 47.1% over the same period in 2018 and accounting for 35.4% of the total registered capital. Meanwhile, both newly and increase capital decreased. Specifically, newly granted capital reached 14.68 billion USD, decrease by 7%; additional capital reached 5.87 billion USD, decrease by 10.7% over the same period last year.

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Why background check is needed when applying for second passport?

Nowadays, it is popular for individuals to have a second passport. It can be seen that in many countries, individuals are restricted to travel freely between countries. Typically, such nationals whom wish to travel abroad are required to apply for a visa which takes a lot of paper preparation for proof of financial status, legitimate reasons and waiting time.

The investment for second citizenship will help investors get a more powerful passport, less limited mobility, especially in European countries. This is also an invaluable advantage for those who wish to expand their business opportunities internationally. Different countries will have different citizenship investment programs, the most common forms of contribution to national funds and investing in real estate in that country.

However, in addition to the mandatory conditions for the investment, in order to be able to receive the passport, the investor also needs to go through a certain application review process. Normally, the countries that grant citizenship to foreign citizens will conduct judicial background verification, background check, criminal record, and the investor’s health status such as Cyprus, Montenegro, Bulgaria, Hungary. In particular, the applicant will have to be qualified for civil liability. There are countries that are particularly concerned about the investor’s health such as Malta, which requires the individual applying to have global health insurance, investors and families need to prove that they purchased health insurance in their immigration application. In Cyprus, in order to pass the document check, investors also need to provide proof of the investment money source. Similar in Malta, Montenegro the investors need to present documents proving that the money has legal origin. Sometime, there are needs to verify the legitimate of the documents provided by the applicants.

Further, verification of employment, salary, income, assets are also important for the review process. To some extents, the investors and their companies are also assessed for reputation and adverse media impact. In some countries, investors need to have documents certifying that they have resided there for a specific period of time at the request of the Government. In Malta, for example, the investor needs to reside here for 12 months before applying. In Bulgaria or Antigua & Barbuda, after being granted citizenship, investors need to reside in these countries for a certain period of time. For the citizenship by investment program in Montenegro, the application will only be accepted when it is submitted through a government-licensed agent under the program.

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Korean Enterprises Poured Nearly 3.2 Billion USD into Binh Duong

Korean investment ranked 5th among countries and territories investing in Binh Duong, mainly in the fields of textiles, leather shoes, manufacturing products to support the automotive, medical, cosmetic industries and food processing…

According to Binh Duong Department of Planning and Investment, since the beginning of the year, Binh Duong has attracted nearly 1.45 billion USD of foreign direct investment (FDI), increase by 70% compared to the same period last year.

Accumulated until now, Binh Duong ranked 3rd in the whole country (after Ho Chi Minh City and Hanoi) in attracting FDI with over 3,650 projects from 64 countries and territories, with a total registered capital of 33.93 billion USD.

Notably, Korean enterprises have more and more investment projects, contributing positively to socio-economic development of Binh Duong. Among more than 3,650 FDI projects in Binh Duong, Korea ranked 5th with more than 800 projects, with a total investment of nearly 3.2 billion USD. Korean businesses operate mainly in the fields of textiles, leather shoes, manufacturing products to support the automotive, medical, cosmetic and food processing industries…

From the beginning of the year until now, the project to expand investment with the largest registered capital in Binh Duong is from a Korean enterprise.

Specifically, the project of KyungBang Vietnam Co., Ltd in Bau Bang Industrial Park, registered capital increased by 84 million USD, bringing the total registered investment capital to 179.2 million USD.

According to the Chairman of Binh Duong People’s Committee, the results of FDI attraction in Binh Duong are due to the positive contributions of the people and the foreign business community, including the contributions of Korean enterprises.

Therefore, the difficulties that Korean enterprises raised about human resources, problems in the investment process, technology, procedures for selling projects, machinery and equipment, changing the owners’ names, transfer of capital… Or, petitions on building more hospitals, applying health insurance for foreigners; opening Korean language teaching centers in colleges and universities in the province; set up e-mail system to solve difficulties in the province… Binh Duong People’s Committee will officially reply by documents for enterprises to thoroughly resolve petitions. At the same time, relevant departments must coordinate in strengthening the links between schools and businesses to focus on addressing the problem on lack of high quality human resources…

Besides, Binh Duong will concentrate resources to complete the socio-economic infrastructure system such as transportation, water supply, electricity, environmental treatment… to carry out planning to expand industrial parks, creating a clean land fund to attract investment.

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Sharp Plans to Build A New Factory in Vietnam, Operating in 2020

China will not be Sharp’s place of manufacturing LCD screens for cars sold in the US, this stage will be transferred to Vietnam. Sharp is going to set up factory in Vietnam.

According to Sharp, they will build a new factory in Vietnam to avoid the new tax imposed in the long-running US – China trade war.

The factory in Vietnam will assemble LCD screens for cars sold in the US. At the same time, about 10% of Dynabook’s production of personal computers can also be transferred from China to the new facility.

Sharp has not disclosed the investment amount to build a new factory but said it will operate in 2020 near Ho Chi Minh City. At the same time, Sharp will establish a subsidiary company with a capital of 25 million USD to operate the plant. In addition to LCD screens, this factory will also produce air conditioners and other electronic devices for sale in Vietnam.

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Quang Ninh Is About to Receive 40 Million USD of FDI From Korean Investors

Recently, Chairman of Bumjin Electronic Company from Korea had a meeting with Chairman of Quang Ninh People’s Committee on the implementation of the project in Quang Yen town.

Accordingly, the Company is preparing to deploy the investment project to build audio equipment factory in Dong Mai Industrial Park, Quang Yen Town, Quang Ninh Province with a total investment of 40 million USD. It is expected that the project will be started construction and go into production in December 2019.

Chairman of Quang Ninh People’s Committee affirmed that the investment project of Bumjin Electronic Company is the area that Quang Ninh province is prioritizing to attract investment. To ensure on time schedule that the company has set, Quang Ninh province confirmed to provide maximum support during project implementation.

He also shared with investors that Quang Ninh province is proposing the Government to allow the establishment of Quang Yen coastal economic zone with better preferential policies. At the same time, Chairman of Quang Ninh People’s Committee expressed his desire that besides the project implementation, Bumjin Electronic Company will become a bridge to connect Quang Ninh and Korean investors, contributing to promote investment activities of Korean businesses in Quang Ninh in the future.

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The ASEAN – Hong Kong Trade Agreement Can Expand Investment Opportunities in Vietnam

The ASEAN – Hong Kong Free Trade Agreement (AHKFTA) has been effective from June 11th 2019 for Singapore, Thailand, Vietnam, Laos and Myanmar, which are expected to positively impact the South East Asia economy, particularly Vietnam.

This trade agreement was signed between Hong Kong and 10 member countries of the Association of Southeast Asian Nations (ASEAN) in November 2017, which will help reduce commodity taxes, boost service and investment flows among regional markets and Hong Kong.

Accordingly, countries will gradually reduce tariffs in the coming years.

According to HSBC Vietnam, the ASEAN – Hong Kong Free Trade Agreement is a new step in efforts to ensure global trade freedom and is a great success for ASEAN, particularly Vietnam.

In the context of ongoing trade tension, Hong Kong businesses are seeking to expand investment opportunities and this Agreement opens up more opportunities in Southeast Asia.

Bilateral cooperation between Hong Kong and Vietnam has developed steadily over the years and the implementation of the new agreement promises to open more opportunities for cooperation in these two markets. ASEAN is Hong Kong’s second largest trading partner in the field of merchandise trade in 2018 and is the fourth largest partner in service trade in 2017.

By the end of 2017, ASEAN ranked fourth among Hong Kong’s direct offshore investment markets. ASEAN is the sixth direct foreign investment source of Hong Kong worth about 628 billion Hong Kong dollars.

Vietnam with the advantage of geopolitical factors is considered an attractive investment destination for foreign investors. The AHKFTA Free Trade Agreement will open more business opportunities for this fastest growing Southeast Asian country, continuing to boost trade flows between Vietnam and Hong Kong.

In the first five months of 2019, Hong Kong ranked first among investment markets in Vietnam with a total investment of 5.08 billion USD, accounting for about 30.4% of total investment in Vietnam. The agreement is expected to make it easier to access trade flows between Hong Kong and ASEAN. Intensified trade and investment flows will help Vietnam improve its production capacity, thereby maximizing the opportunities that come from trade flows.

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British Investors Proposed to Invest in Wholesale Market in Gia Lai

Chairman of Gia Lai Provincial People’s Committee has just had a meeting and worked with Chairman of the Board of Directors of TKV Holdings International (United Kingdom), coming to survey and find out investment opportunities to set up business in Vietnam and in particular set up wholesale market project in Gia Lai province.

At the meeting, representatives of TKV Holding International Cooperation Joint Stock Company expressed their interest in building wholesale market; electronic portal of wholesale market without managers; strategic product identification; advising on the province’s strategic product identification in the global value chain (building national product images) and Gia Lai province’s product consumption plans.

The representative of the company also assessed that Gia Lai is a potential province and if implemented, the wholesale market model in Gia Lai will also have its own characteristics; At the same time, asking the province to provide additional issues related to regional planning and sector planning; local determination and orientation of Gia Lai province for the participation of enterprises in implementing this wholesale market model.

At the meeting, Chairman of Gia Lai Provincial People’s Committee Vo Ngoc Thanh also raised a number of issues for the unit to learn investment such as the project scale of the wholesale market, the need to connect between the wholesale market and the people. production if the model is deployed in Gia Lai.

Chairman Vo Ngoc Thanh expects TKV Holdings International Cooperation Joint Stock Company will soon agree with the province on how to do as well as speed up the implementation plans of this project. At the same time affirmed Gia Lai’s determination and will create favorable conditions for the unit through the Department of Planning and Investment to promote investment in implementing the wholesale market project in Gia Lai province in the early period. Best.

At the meeting, Chairman of Gia Lai Provincial People’s Committee also raised a number of issues for investors such as the project scale of the wholesale market, the need to connect between wholesale market and producers if the model is implemented in Gia Lai.

Chairman of the province expects TKV Holdings International Cooperation Joint Stock Company will soon agree with the province on how to do as well as speed up the implementation plans of this project. At the same time affirmed Gia Lai’s determination and will create favorable conditions for the unit through the Department of Planning and Investment to promote investment in implementing the wholesale market project in Gia Lai province in the shortest time.

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Quang Ninh Calls for Investors in Tourism Real Estate

Quang Ninh is becoming an open destination for tourism investors to come and set up business in Vietnam.

With the land area and sea surface of over 12,000 square kilometers, the topography of more than 2,000 islands spread over 250 kilometers of coastal lines, Quang Ninh is considered as a “small Vietnam” with the potential to develop green tourism. Therefore, it is not surprising that many travel experts perceive Quang Ninh is blessed with special values.

The first highlight of the Quang Ninh tourism journey is Ha Long Bay – the world natural heritage, the most typical and unique island in the island’s integrated marine tourism system. This system stretches 250 kilometers of sea route, linking Ha Long – Bai Tu Long – Van Don island – Bai Tu Long National Park – Co To island – Vinh Thuc island – Tra Co beach with Cat Ba National Forest (the World Biosphere Reserve) and the marine resources system of Hai Phong city. These remarkable advantages make Ha Long Bay along with Cat Ba, Do Son (Hai Phong) are prioritized to develop into national tourist area.

Along with Ha Long Bay, places like Quan Lan, Minh Chau, Ngoc Vung, Bai Dai, Van Hai white sand mine… (in Van Don island district); or Tra Co, Vinh Thuc (in Mong Cai city) … with beautiful beaches, natural forests, intact coral reefs around the islands, offshore locations, have created special values of Quang Ninh tourism.

In addition to natural advantages, Quang Ninh is the only province with land and sea borders with China, an important and vibrant trade gateway between Vietnam, China and ASEAN countries. That is why large investors want to choose Quang Ninh. From the end of 2013 up to now, Quang Ninh has attracted more than 100 projects with total investment capital of more than 5.5 billion USD, nearly half of capital concentrated in Ha Long city, of which the strong investment waves mostly focus on the field of tourism.

There is not only the presence of Vietnamese investors such as Tuan Chau, Vingroup, Sun Group, FLC…, the attractiveness of Quang Ninh is also reflected in the presence of billion-dollar-super-projects of giants investors from United States, China, Thailand, United Arab Emirates… The famous names such as Wyndham, Starwood, ISC Corp, Amata, Nakheel… have landed in Ha Long with huge investment plan.

In the development plan, Quang Ninh is calling for investment in 14 large-scale eco-tourism real estate projects (period 2016 – 2020) and many other projects to develop 4 major tourism centers: Ha Long; Mong Cai – Tra Co; Van Don – Co To; Uong Bi – Dong Trieu – Quang Yen.

Standing in the top on tourism investment attraction, the keys that help Quang Ninh to balance its economic benefits and resource conservation are unified planning, consistent development and a clear view on investment attraction

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Mikazuki Group Wants to Build A Night Market and A Japanese Pedestrian Street in Da Nang

On July 15th 2019, representative of Mikazuki Group (Japan) had a meeting with Da Nang City People’s Committee on the investment plan of night market and pedestrian street, similar to Tokyo night street.

Accordingly, Mikazuki Group’s leaders continue to affirm and commit to complete the construction of the onsen hot mineral water park at the Mikazuki Spa & Hotel tourist project in April 2020 and complete the whole project in 2021.

Besides, General Director of Mikazuki Group (Japan) expressed his desire to invest 50 million USD to build night market and pedestrian street next to Mikazuki Spa & Hotel project (Hoa Hiep Nam ward, Lien Chieu district).

The group also proposed the city to soon complete the conversion of the purpose of using the area of 5,000m2 of the land into commercial land – services as well as implementing the project related parts.

Vice Chairman of Da Nang City People’s Committee welcomed Mikazuki Group to study and invest an additional of 50 million USD to build night market and walking street next to the Mikazuki Spa & Hotel tourist area. Regarding the proposals of the group, the City People’s Committee pledged to direct the Department of Natural Resources and Environment to actively accelerate the conversion of land use purpose for 5,000m2 to soon complete the project.

For the roads around the project, the City People’s Committee will work with the project operating units and Lien Chieu District People’s Committee to speed up the implementation, striving to complete soon; assigned Construction Department, Institute of Construction Planning, Department of Transport and People’s Committee of Lien Chieu District to study and renovate the landscape of roads around the tourist area.

Earlier, in March 2019, Mikazuki Group organized a groundbreaking ceremony for the Mikazuki Spa and Hotel Resort project in Japanese style at Xuan Thieu beach. The 5-star project Mikazuki Spa & Hotel Resort (Xuan Thieu Tourist Area) with a total investment capital of 100 million USD, total area of about 13 ha, located on Xuan Thieu beach (Hoa Hiep Nam ward, Lien Chieu district).

The project is designed by Raymond Vietnam – Japan Architecture Design Company Limited with a scale of 5-star standard hotels, 19-storey high, construction density of 25%, including 464 accommodation rooms, amusement parks, resort serving about 6,000 guests/day and restaurant area, conference, water park, food court, car park…

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What to Note When Signing Labour Contract with Foreign Workers?

With the policy of opening the economy in Vietnam, not only Vietnam attracts investors to set up company, but also the demand for foreign workers in enterprises grows and diversifies. However, in order for Vietnam companie to be able to use foreign workers, they must sign a labor contract.

After meeting the conditions specified in the Labor Code on meeting the requirements for recruitment and working in Vietnam, the foreign worker working in Vietnam shall sign a labor contract before the expected date intend to work for the employer. In this contract, the employer and the foreign worker will agree on all issues arising in the process of working as well as using labor together.

Firstly, on the working position in the labor contract, it must show the correct position and position for which the employer has determined the needs with the competent authority and in accordance with the working position shown in the document and the work permits which have been granted to foreign workers.

Regarding the working time, it will normally be agreed upon by the two parties but must not exceed the number of working days (hours) as prescribed by Vietnamese law. The number of overtime hours must be based on voluntary work and must ensure rest time, rest during working time and weekends for foreign workers.

According to the provisions of the Labor Code, in addition to Vietnamese public holidays and New Year’s holidays, foreign workers are allowed to take one more day off for the national traditional New Year and one national day of the country. This is a humane regulation, respecting the national culture of Vietnam. Therefore, the employer needs to learn about the National Day and the traditional Tet holiday of foreign workers so that the employees can take leave in accordance with the provisions of the law.

Regarding the term of the labor contract, the term of the labor contract for foreigners is also governed by the duration of the work permit issued by the competent Vietnamese authority. Accordingly, the term of the labor contract for foreign workers working in Vietnam must not exceed the term of the work permit. Therefore, the employer should pay attention to conclude the contract term in accordance with regulations.

In addition, employers and foreign workers should be aware of the terms of disputes which could potentially arise. Because, contract terms are an important legal basis to resolve when a labor dispute arises, agreeing in advance on how to resolve a dispute when a dispute arises will create a clear legal foundation for easy settlement by both parties. Dispute lawyers are suggested to be consulted at an early stage to avoid dispute escalation.

At most, it is important that the employers and foreign workers need to pay attention and strictly comply with the provisions of the law so that the process of entering into and performing the contract is conducted smoothly and in compliance with the law in Vietnam.

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Many Large Businesses in Norway Want to Invest in Hanoi

7 leading corporations and enterprises from Norway include ITS Noway, Pixii AS, Ruter, Avfall Norge, Cambi, Host, Tomra want to set up business in Hanoi, at the same time cooperate, invest and transfer the most advanced technology in Hanoi city.

Chairman of the Hanoi City People’s Committee has just had a meeting with Innovation Norway and 7 leading Norwegian corporations and enterprises operating in the fields of: Developing smart traffic system, energy and energy storage, management and development of public transport systems, providing solutions for waste and waste sludge management, recovery and recycling of plastic and waste materials.

At the meeting, leaders of corporations exchanged views with the Chairman of Hanoi People’s Committee on Norway’s strengths, experiences and the most advanced technology such as waste and sludge treatment technology and recycling into fertilizer preparations for agriculture; technology to use clean energy in waste treatment; technology to collect, process and recycle hazardous plastic wastes; payment technology and smart transportation applications that encouraging people to use the City’s public transport system; experiences and management mechanisms that encourage corporate cooperation in waste and wastewater treatment and development of public transport.

At the same time, the leading corporations in Norway also expressed their desire to cooperate, invest and transfer advanced technology into Hanoi.

On the side of Hanoi, the Chairman of the city thanked the leaders of the corporations for exchanging and introducing valuable experiences in management as well as advanced technologies in areas that Hanoi is very in need of, serving for the construction and development of Hanoi towards smart, sustainable and effective urban.

At the same time, the city leaders also expressed that Hanoi is willing to create the most favorable conditions for Norwegian corporations and businesses to research, survey and seek investment and business cooperation opportunities in Hanoi.

Notably, representatives of the Innovation Norway, corporations and companies committed to organize Norwegian business delegations to Hanoi as soon as possible to implement the discussed plans.

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The US Increased Imports of Vietnamese Goods

Vietnam could become the seventh largest exporter to the US in 2019 if it can maintain the growth rate of 40.2% as in the first quarter.

According to the data announced by the US Bureau of Statistics, in the first three months of 2019, the export speed of goods from Vietnam to the US increased by 40.2% over the same period last year. This is the fastest growth rate among the 12 largest exporters to the US in 2018. Behind Vietnam is Korea with a growth rate of 18.4%. On the other hand, Chinese goods to the US fell 13.9% amid increasing trade tension between the two countries.

If maintaining the growth rate in the first quarter for the rest of 2019, Vietnam could surpass the big ones like France, England, Italy and India to become the 7th largest commodity exporter for the world’s largest economy, with an estimated value of nearly 69 billion USD. Last year, Vietnam ranked 12th with the value of goods exported to the US reached more than 49.2 billion USD.

According to the statistics of the General Department of Customs, in the first 4 months of this year, the US continued to be the largest importer of Vietnamese goods such as textiles and garments with value of 4.42 billion USD, increase by 9.1% compared to the same period last year; footwear (2 billion USD), increase by 13.5%; machinery, equipment, tools and spare parts increase by more than 54% (1.3 billion USD); wood and wood products (1.42 billion USD), increase by 34.7%.

In early May, US President Donald Trump also mentioned that producers could choose Vietnam as a destination after leaving China. According to the Fitch credit rating agency, there were signs that Vietnam could benefit from the impact of trade tension from the flow of trade out of China.

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