Risk of disputes from transactions through social networks in Vietnam

  Social networks have become popular and become an indispensable part of modern life. Along with the development of the internet, social networking applications are also used by many people as a transaction method to exchange and conclude contracts or business transaction with each other.   When a dispute occurs, it is difficult for the parties to prove the transactions and the parties involved. Hence, it is important to conduct background check on the business counterparts from financial, operational aspects instead of blind belief in the exaggerated advertising or discounted offer from them.

In fact, many individuals and organizations have reported that their partners have denied purchase and sale transactions through social networks and caused huge damages. However, the evidence provided is only messages, icons … stored in social networking applications that carry many meanings and are easily confused in interpretation. These are quite common electronic transaction disputes today, but there is no strict legal corridor to protect parties with legitimate interests.

The legal system has not kept up with the strong development of the internet business. As a result, it raises a number of complicated issues, beyond the control of legal regulators and creates many difficulties and challenges when business disputes occur over social networks.

Specifically, many individuals engage in commercial activities but does not have a fixed location and do not register business with any authorities.  They might advertise over the internet with buying and selling goods and services without having to be responsible for any consequences for fake products or inadequate delivery of quantity or maybe even scam.

It can be seen that the lack of business registration makes it difficult to determine the truthfulness of the transaction and the competent authorities do not know the information of individuals and organizations transacting on social networks authentication of transaction status on social networks when participating in business.

According to the law, electronic data messages are expressed in the form of electronic data exchange, email and other similar forms according to the provisions of the law on electronic transactions. Electronic is also a source of evidence used as a basis to determine the validity of a transaction. Therefore, it can be seen that in fact transactions via social networks are also a form of electronic transactions with legal value. However, these transactions present a lot of potential risks because it is difficult to prove to the authorities when dispute arise.

Because these accounts can be easily disabled, communications can be deleted or hidden, and the name of the account holder is easy to change. Moreover, when transacting and exchanging via social networks, the parties cannot control whether the person being exchanged is an authorized person or not. The violating party will rely on the above reasons to deny all the content discussed with the partner.

Transactions through social network platform are thriving and are expected to bring value. However, in order to contribute to promoting the sustainable and safe development of this type of business, more legal regulations governing related issues are needed. In addition, in order to limit disputes and risks in these transactions, individuals and businesses need to carefully check the partner information, from authenticity, adverse media, reputation online or engage third party consulting company to verify business registration, search business shareholders information, visit office or operation site for audit, undertake background check, criminal record for protection of interest if the dispute occurs.

Source: https://www.antconsult.vn/set-up-company-in-vietnam/risk-of-disputes-from-transactions-through-social-networks-in-vietnam.html

Read More

Vietnam attracts Korean investment in research and development

  In recent times, the investment shift out of China is being carried out by many international investors. Vietnam is a country that has enough factors to receive investment shift, especially in the manufacturing sector with low-cost labor and low expenses. However, at present, Vietnam has changed its method of attracting FDI, instead of taking advantage of low expenses and low-cost labor, Vietnam now aims to take advantage of highly skilled workers and many incentives in research and development activities.

Recently, many Korean investors have plans to change production lines, invest in research and development (R&D) company in Vietnam. Previously, Korean businesses mainly invested in industries such as apparel, bags, and footwear, however, recently many Korean investors have made investments in industries such as high electronics, information technology, automotive and construction equipment, distribution and service industries.

Currently, Korea is the leading country in the list of countries investing in Vietnam. Previously, a joint venture between Korean and Vietnamese businesses proposed to the Dong Nai province government to invest and build a Vietnam-Korea Hi-Tech Park with an area of ​​300 hectares, total investment capital of 150 million USD. The project aims to attract high-tech enterprises from Korea as well as other developed countries to set up company in Dong Nai in order to create quality product values ​​in the fields that shape the industrial revolution 4.0. The project is expected to attract 2 to 3 billion USD of investment capital in about 6 – 9 years after it is put into operation.

In addition, Korean investors have also cooperated with Vietnamese partners to build a Science and Technology Industrial Park with an area of ​​900 hectares in Binh Duong. In addition, many Vietnamese investors have actively worked with high-tech manufacturing partners to promote the participation of key partners as well as prepare the first customers.

With the policy of attracting investment in high technology and in particular the Investment law 2020, there are special investment incentives for newly established investment projects (including the expansion of the establishment project), the centers for innovation, research and development centers with total investment capital of 3,000 billion VND (about USD 150 million) or more, disbursing at least 1,000 billion VND within first 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy; a national innovation center established by decision of the Prime Minister; Investment projects in sectors or trades specially given investment incentives with an investment capital of VND 30,000 billion (about USD 1.5 billion) or more, with a minimum disbursement of VND 10,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy” will be given special incentives in accordance with the provisions of corporate income tax and land law.

As the investment attraction and investment shift preparation of Korean R&D enterprises, Vietnam hopes to become an investment destination for Korean high-tech enterprises in the future to establish company.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/vietnam-attracts-korean-investment-in-research-and-development.html

Read More

Why is it necessary to verify business partners when entering the Vietnam market?

  The verification of business information of partners in Vietnam about legal status, financial capacity, technology, reputation, and experience is important but often overlooked by foreign companies seeking investment partners, or business cooperation partners in Vietnam. If done systematically, the verification and evaluation of partners’ business information for the purpose of trading goods, or investment or cooperation will help foreign businesses avoid dealing with the business not as described, or the businesses partners having unsuitable capacity or even committing fraudulent activities. The cooperation with these wrong business partners in Vietnam might also result in business cooperation not being achieved, for example, the quality of the goods is inappropriate, the goods are not received on time, or the payment is made without receiving the goods, or the investment project is not as fruitful as proposed.

The verification of customer and business partner information can be assigned to professional consulting companies with the advantage of local knowledge, available information channels, or expertise.

In order to conduct the assessment of customers, business partners, and investors, foreign companies need to provide the basic information necessary for the assessment. The information about the partners needs to be objective. The information about the partners should be specific, and instructive which orientates the action and decision of the requester. When conducting the assessment, information about the business partners will need to be compared and verified from different sources if possible  to help have a more objective view, even visiting the business location might be required.

What to be verified when entering market to work with Vietnam partners?

Legal status of the company includes business license, practising certificate, background check of Board of Directors, fulfillment of tax payment obligations, litigation, trade disputes, and causes (if any).

The type of business includes joint stock company, limited liability company with one member or multi-members, partnership company, family company.

Financial capacity includes financial situation, revenue, profit, share value, stock price fluctuation, the increase or decrease of tax obligation, financial difficulties or bankruptcy status, experts’ assessment of the company’s operational capacity and development prospects.

Expertise and technology includes the level of technology compared to other enterprises in the industry, management team, skilled staff, and business network in the region and the world.

Business and management experience includes operation duration, the field of activities, implemented projects.

What is the methods to be chosen when conducting background check of a company?

Before conducting business partner verification, the professional consulting companies in Vietnam with qualified consultants will consider the specific level and scope of the information to be verified, the source of information, the approach to information depending on the level of requirements of the client, the size and importance of the project, and the local culture.

Public sources could be consulted from target company websites, business directories, chambers of commerce and industry, industry associations, stock exchanges, and public financial statements.

Other sources includes contacting the state competent authorities, meeting at the company’s office, visiting production and business places, learning about business activities and cooperation possibilities; acquiring information through government service; collecting information through stock investors.

Further informal verification methods includes contacting businesses operating in the same industry, competitors or partners who have co-operated with the company (especially in large projects), the network of businesses, banks, etc.

After collecting information from different sources, it is necessary for the business consultants in Vietnam whom help making assessment of Vietnam partners for foreign company entering Vietnam to compare and synthesize sources to make comprehensive assessments of the target company being verified, combining background check of individuals of stake holders, public sources or through secondhand information about company for the client’s further decision making process.

Source: https://www.antconsult.vn/news/why-is-it-necessary-to-verify-business-partners-when-entering-the-vietnam-market.html

Read More

JLL: Vietnam Tourism and Hotel Industry Is Growing

  Vietnam tourism industry has achieved steady growth in recent years. Furthermore, Vietnam has become an attractive tourist destination for foreign visitors.

According to a report of JLL (Jones Lang LaSalle), Vietnam resort real estate has become one of the most mentioned markets in Asia Pacific and in the future, the potential for development is still very wide open.

In 2015, Vietnam has seen a strong increase in the number of foreign tourists when it exceeds the goal of 10 million international visitors by 2020. According to Vietnam National Administration of Tourism, in 2017 Vietnam is expected to increase by 15% the number of international tourist arrivals to 11.5 million and tourism industry ‘s revenue will reach 20 billion USD.

In order to facilitate growth, the Government of Vietnam has recently exempted visas for travelers from many countries. As a result, the number of international tourists has increased steadily. The target for international visitors travelling to Vietnam in 2020 has been revised up to 20 million tourists with 30 billion USD in revenue and generated 3.5 million jobs in the tourism sector, increased sharply compared with the initial target of 10 million visitors.

According to JLL, the impressive growth in the number of tourists travelling to Vietnam will promote important strategies and increase investment in tourism product development to take advantage of existing strengths in the domestic tourism industry, as well as the development of new areas. As infrastructure investment continues to grow and private funds participating in the transportation and hotel sectors, Vietnam may open new destinations beyond its usual destinations such as Ho Chi Minh City, Hanoi and Da Nang/Hoi An.

Along with the "boom" in the number of tourists travelling to Vietnam, tourism products are also increasingly diversified, the resort real estate products associated with golf course are opened, the Government also loosen the regulates on the activities of prize-winning entertainment complex. In addition, the type of ecotourism, culinary tourism, spiritual tourism is also expanded more diverse.

According to JLL, the strong growth of the tourism industry and the number of visitors are shown most clearly in the resort real estate supply, especially condotel. Accordingly, in the period 2017 – 2018, Da Nang will welcome about 2,500 hotel rooms come into operation, the number in Nha Trang is 2,200 and Phu Quoc is about 2,000.

Assessing the potential of the resort tourism industry, according to JLL, Vietnam's increasing tourist arrivals and a growing economy make the hotel and resort market attractive to many investors in the region. To sum up, Vietnam resort real estate has become one of the most mentioned markets in Asia Pacific. In the near future, international hotel operators are increasingly interested in resorts, while real estate developers continue to seek investment opportunities.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/jll-vietnam-tourism-and-hotel-industry-is-growing.html

Read More

Vietnam Welcomes Trillion Renewable Energy Projects

  The number of renewable energy projects with total investment capital of about 1,200 - 1,400 billion VND is constantly increasing, confirming that investment in Vietnam renewable energy is an attractive trend.

Recently, the People's Committee of Binh Thuan Province has handed the decision and received commitment to invest in renewable energy of 20 enterprises in order to diversify the form of energy production, step by step achieving the goal of becoming a large national energy center of the country in the next few years.

Currently, Binh Thuan and Ninh Thuan are the two leading provinces in attracting investment in renewable energy because most of the area has an average radiation intensity of about 5 kWh per square meter, less rainfall and hours of sunshine always maintained at an ideal level.

Although the natural conditions are not as favorable as Binh Thuan and Ninh Thuan, some neighboring provinces such as Khanh Hoa, Quang Tri, Binh Dinh... also attract many domestic and foreign enterprises committed to pour capital.

Most recently, Fujiwara (Japan) also received license to invest in solar and wind power plants in Binh Dinh with total capital of 1,446 billion VND. According to the investment registration progress, the project will be implemented right in 2017 and is expected to complete the first phase in the first quarter 2019.

Recently, more and more businesses outside the industry have not hidden their ambition to enter the renewable energy sector. According to Deputy General Director of Bamboo Capital, the company plans to raise 300 million USD through issuing bonds and certificates with rights to buy shares held in period from 2017 to 2020. In which, about 100 million USD will be poured into renewable energy projects.

According to this year's plan, the company will promote the procedure to build a 140 MW solar power plant in Long An province. In addition, the company is seeking investment opportunity in solar power projects in Phu Ninh (Quang Nam) and Ninh Thuan, while taking advantage of international relations to attract capital and experiences from foreign investors.

Furthermore, Bamboo Capital expects to officially sell electricity and record revenue from the energy segment by 2018. By 2020, this segment will be able to deliver significant revenue streams to the company.

Explaining the fact that businesses are racing to plan, commit to invest and directly invest in renewable energy sector, the Renewable Energy Center (under The Energy Institute) thinks that it comes from many factors. First of all, the demand for energy is rising, while the supply of fossil fuels is becoming more expensive and exhausting.

In addition, the technology enters the ripe stage, making business easier to access, while reducing the difference in levelized cost of electricity (LCOE) compared to thermal power. A few years ago, the cost of producing wind electricity was about 3,500 VND per kWh and now it drops to 2,200 - 2,500 VND.

Moreover, the incentive mechanism for the development of solar power projects issued in April this year has also influenced the investment decisions of enterprises. Currently, the purchase price of electricity at the power point is 2,086 VND (equivalent to 9.35 cents/kWh).

In addition, investors are also entitled to many tax incentives such as import tax exemption for imported goods to create fixed assets, exempt from land use fees, land rent, water surface rent at the construction location, lines, substations connected to the grid. In the short term, it is likely that the Government of Vietnam will also consider increasing wind power prices to assist businesses, boosting investment to achieve a total capacity of 6,000 MW by 2030.

Source: https://www.antconsult.vn/news/vietnam-welcomes-trillion-renewable-energy-projects.html

Read More

Capital from China's 'Ring Road and Route' Is Coming to Vietnam

  In response to the China Government’s initiative to build the 21^st Century Silk Road running across the Eurasian, the Chinese’s construction enterprises are actively coming to Vietnam.

Chairman of the Hong Kong Trade Development Council (HKTDC) Vincent HS Lo has just led a delegation of 40 investors and experts to visit Hanoi and Ho Chi Minh City. The delegation includes large domestic firms (including Hong Kong) in the fields of finance, consulting, architecture, energy, water and waste treatment, engineering and construction, law and accounting, transportation...

According to Mr Vincent HS Lo, the delegations have goal to invest in areas that specially focusing on the implementation of the "Ring Road and Route", which is implemented by the Chinese government to develop the infrastructure of the area. Vietnam is determined locating in a critical position to invest in infrastructure, so that is the key to promote trade and commerce among nations.

The delegation also has meeting with Prime Minister Nguyen Xuan Phuc, Minister of Planning and Investment Nguyen Chi Dung, Deputy Minister of Transport Nguyen Hong Truong and leaders of Hanoi and Ho Chi Minh City. Along with that, they also have meetings with many Vietnamese businesses, including big names such as Van Thinh Phat Investment Group or Sunny World Real Estate Development Company.

According to Mr Johnson Choi - CEO of Sunwah Group, with a very flexible policy of the Government of Vietnam, he believes that investment in infrastructure in Vietnam is quite feasible in comparison with other countries in Asia. Together with many businesses introduced by the HKTDC, Sunwah will work with other partners to express special interest in the 1,000 km North-South Expressway project.

Also according to Mr Choi, the Vietnamese Government is showing their support to businesses as committed. Compared with other countries in the region, the liquidity of the Vietnamese currency is at a better level. Over the past twenty years, Chinese investors have moved overseas remittances to Hong Kong quite easily.

Chairman of HKTDC Mr Vincent HS Lo believes that businesses in Hong Kong and China will have strength on infrastructure investment and set-up company in Vietnam thanks to the abundant capital and good experience. Hong Kong is the financial center of the world, so it's easy for them to raise funds from everywhere to invest. At the same time, they have experience in most services, from consulting to construction and operation.

According to Mr Vincent HS Lo, businesses in Hong Kong and China are open to the investment and cooperation models with Vietnamese enterprises. However, the Chinese are particularly interested in the form of PPP. At the same time, the joint venture model is also considered more than the 100% capital investment to take advantage of local market knowledge of Vietnamese enterprises.

On May 14^th, Chinese President Xi Jinping hosted the "Ring Road and Route" forum, with nearly 30 leaders in the world. This is an action to promote the "Ring Road and Route" initiative, in order to revive the "Silk Road" connecting Asia and Europe. Accordingly, Credit Suisse Group forecasts that China could pour more than 500 billion USD into 62 countries over the next five years to implement plans to promote its soft power.

We, ANT Consulting company, support you with the service of setting up a company in Vietnam, Risk management in Vietnam, Employee background check in Vietnam... to help you shorten the implementation time.

Read More

New Solar Power Plant Project in Binh Dinh

  Solar energy is encouraged to invest by Vietnam Government. Therefore, there were many foreign business delegations come to Vietnam to find out opportunities in this area.

On January 11^th 2017, Chairman of Binh Dinh Province has met and worked with the President of Truong Thanh Investment and Development Co., Ltd (Vietnam) and Truong Thanh's partners from Japan and Spain to find out opportunities to invest in solar energy plant project in Binh Dinh, Vietnam.

According to representatives of Truong Thanh, in recent time, the Company has made the solar power plant investment project proposal in Cat Hiep commune, Phu Cat district, Binh Dinh province. The project capacity is 95mW, using land area of about 150 hectares.

The expected investment capital for plant construction is 4,000 billion VND. Tuong Thanh Company wants to be supported by leaders in Binh Dinh Province and relevant local Government agencies with the investment procedures.

According to Chairman of Binh Dinh Province, they are always welcome and encourage enterprises to invest in power plant using renewable energy, which is very environmentally friendly.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Textile Industry in Vietnam

  Vietnam textile industry for many years has always been one of the major export sectors of Vietnam. With the development in technology, the number of skilled worker is growing along with many preferential policies from the Government, the textile industry has obtained encouraging results, creating the value of goods, ensuring domestic demand and export.

1.Overview of the industry

According to the General Department of Customs, in 2014, the value of exports textiles reached 20.91 billion dollars, increasing 16.6% compared to 2013. The value of textile exported was the second largest export industry in Vietnam.

Vietnam's textile industry has a high production capacity: 4,424 enterprises (as of 31/12/2013) with 2.5 million workers, growth rate of 14% annually. There are 1.2% of enterprises reaching $100 million export revenue, 3.25% of them reaching 50 million and 30% reaching over $1 million. There been several textile products including 8000 tons of cotton fiber, yarn 900 thousand tons, 1.5 billion m2 fabric. Localization ratio of the whole industry was 50% in 2014.

Export capacity of the textile industry is also very impressive. Particularly in 2014, the export value reached 20.91 billion US dollars, accounting for nearly 14% of total turnover exporting ones in the country­­ - No. 1 export industry of Vietnam until 2012, No. 2 in 2013 onwards (after the mobile phone). Vietnam is the 4^th largest exporting country, accounting for 4.92% of global textile exports in 2014, after China, Bangladesh, Italy.

Vietnam's textile sector has yet to master generating raw material. The high-quality raw material required depends heavily on importing (around 60-70%). Mainly imported raw materials are from China, Taiwan and Korea. Vietnam's textile industry has currently imported 90% of raw cotton, 100% synthetic fibre and 80% cotton fabric.

According to research by the Ministry of Labour, every $1 billion of Vietnam textile export created extra 250,000 jobs. Currently, Vietnam has a population of over 90 million people which 49% of the population of working age worked in the textile industry. Moreover, the labour cost in Vietnam is relatively low compared to many countries in the region. The advantage of the lower labour cost will resulted in lower production cost, thus being price competitive. However, in this sector, there is a shortage of skilled labour leading to difficulties to develop the industry.

2.Opportunities for textile industry

TPP is a great opportunity for many industries including textile. According to economic experts, TPP will have a huge influence in the global textile industry. TPP opens investment opportunities (FDI) into developing materials and supporting industries. When joining the TPP, textile tax rate reduced to 0% which indicates a huge profits for Vietnam's textile sector.

Besides, FTAs (The free trade agreements) also opens up further export opportunities for Vietnam’s textile industry to the market European Union, Korea, Asian Economic Union - Europe ...  Vietnam will benefit from free tariff agreement from EU . Besides, the Vietnamese enterprises will be supported in terms of access to high technology from other countries, thus enhancing value of products.

3.Challenges

Other than opportunities, the textile industry will be facing many challenges. The domestic textile enterprises are mainly operating in small and medium scale with low capital investment and financial resources, limited technology, equipment and innovation capabilities. This lead to inability to achieve economic efficiency and compete with other countries. After all trade agreements take effect, Vietnam’s textile industry must meet strict rules and requirements such as origination of raw material (fabric). Meanwhile, most of raw materials (fabrics) was imported from other countries such as China (not a member of TPP). Therefore, if Vietnamese enterprises do not use raw materials from Vietnam or other countries in the TPP, it will be difficult for them to enjoy free tariff when exporting to the US and other countries in the TPP. Therefore, Vietnamese enterprises are highly recommended to learn about TPP and other free trade agreements. Besides, Vietnamese enterprises should prepare for qualified workforce, equipment and new technologies and intellectual property. The state and agencies functions have created specific guidance on the provisions of the tax, customs to help Vietnamese enterprises to utilise export opportunities with the advantages of tariff.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Why do we have to undertake background check before recruitment?

  Recruitment is the process of screening and recruiting qualified people to meet a job in an organization in general and in particular business. Recruitment plays a very important role in business development. Effective recruitment will provide businesses with a team of skilled, active, creative employees and provide human resources in accordance with the business performance of the business. Only when doing well the recruitment stage can we do well in the next stages. Therefore, businesses need to recruit the right people right the first time as well as arrange them in an important position.

Most of the information that enterprise has is provided by the employee and there is no verification of the information. And if the enterprise only relies on the information provided by the employee, it is likely that the employee is dishonest, or causes mistakes and avoid responsibility. To recruit “right employee, right job”, enterprise needs to check the applicant’s background.

Checking employee's background is to create trust between enterprise and employee. The background check includes: Verify Identification; Verify at home; Verify qualifications and certificates; Verify employment history at old jobs; Verify criminal records in Vietnam.

Verification of the background helps to know personal information, origin, hometown, criminal status of the employee. Thereby, background check will minimize commercial risks; preventing fraud and internal theft better; increase security of data and documents in the enterprise. In particular, for important positions in the enterprise, the confidentiality of enterprise document information is extremely necessary.

Verifying employment history at past jobs is to understand working process and the reason for job termination; obtain an objective view of the necessary competencies, skills and work experience. From there, enterprise could save time in searching for suitable employees as well as saving labor training costs.

In addition, background check improves business efficiency, developes a team of integrity to meet the business requirements of the enterprise. Because recruiting well means finding out people to perform the job with the capabilities and qualities to complete the assigned work, then effective recruitment helps the enterprise perform well its business goal and improve profitability.

Currently, the situation of fraud, diploma trading, or dishonesty in recruitment, many enterprises cannot control and verify all the information that employees provide. Enterprises need to check applicant's background when recruiting to prevent fraud, internal theft; increasing security of data and documents in enterprises; decrease recruitment time and training costs. Besides, creating trust between businesses and employees; increase employee productivity and product quality as well as increase business profits.  It is suggested to consult with professional background check service company with proven track record in Vietnam to help with the local service.

Read More