Nestlé Set up the 6th Factory in Vietnam

Set-up factory in Vietnam

This is the 6th plant of Nestlé in Vietnam and the 2nd factory located in Hung Yen. The project has investment capital of 70 million USD, which is expected to come into operation in 2017.

Nestlé Vietnam Company has just started construction of a new factory in Thang Long II Industrial Park in Hung Yen. As reported by the company, the new plant with capital investment of 70 million USD was built on an area of 10 hectares and expected to go into operation in 2017, creating jobs for hundreds of local workers.

In 3 years, Nestlé has continually set up new plants and expand existing plants. The investment activities are continued to expand expressed the firm belief in the rapid development of Vietnam’s economy. At the same time, assessing that Vietnam is having many advantages in attracting investment with a young and dynamic population, growing consumer markets and favorable business environment.

Nestlé Group specializes in manufacturing and supplying nutrition and health products. Founded in 1866 and headquartered in Vevey, Switzerland, till now, the group has developed 447 plants in 86 countries with 339,000 employees, owns more than 2,000 brands with 10,000 products.

Estimating that every day, there are about 1 billion of Nestlé products are sold worldwide. Nestlé operates in Southeast Asia since the early years of the last century, the first sales offices located in Saigon in 1912. In 1995, Nestlé Vietnam was born. So far the total investment capital of Nestlé in Vietnam reached over 520 million USD, employs approximately 2,000 employees and operates 5 plants.

Earlier, in 1992, Nestlé joint ventured with Long An Trading Company to founded La Vie Co., Ltd. In 2001, the company continues to build La Vie mineral water plant in Nhu Quynh town, Van Lam district, Hung Yen with registered capital of more than 10.3 million USD.

As noted by the Deputy Minister of Industry and Trade, Nestlé Vietnam is one of the 100% foreign investments that have invested very soon in Vietnam. Since going into operation so far, the company has maintained a fairly annual growth rate, especially in 2015, the growth rate of the company reached approximately 15%.

According to the Swiss Ambassador in Vietnam, Switzerland is in the list of 20 largest investors in the world. In Vietnam, investment projects of Swiss firms are growing significantly. The Swiss company has been operating in Vietnam for many years, contributing more than 2 billion USD of investment capital in Vietnam, bringing the Swiss became the 4th largest investor in Vietnam, surpassing Germany.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Large Amount of Australian Beef is Coming to Vietnam after TPP

Business consultants in Vietnam

Recently, not only large quantities of frozen beef are imported to Vietnam but also live cows are increasingly imported including non-quota and quota ways.

Imported cows were recorded at most from the Australian market. In 2012, there are about 3,500 cows, then rise to 70,000 cows in 2013 and 170,000 cows in 2014. This year, though there has not official figures, but the imported quantities will not decrease compared to the previous years.

There are so many large enterprises participating in the slaughtering supply chain and distributing to markets and commercial centers in provinces throughout the country so they will import a large amounts.

This is a not-protected-industry. Raising buffalo and cow in Vietnam is not the main income of many households, then this fact should not affect too much on the livelihoods of farmers. Only frozen beef industry will bear the heaviest damage when Vietnam joining in TPP.

With frozen chicken and pork, after entering the TPP, the market for imported chicken will have shifting from Brazil to the US, and pork from Denmark, Spain to the US, Canada because Vietnam enjoys preferential tax from TPP member countries.

For the consumption of frozen products, most of the imported cattle and poultry are using in the collective kitchens, industrial zones… Consumers also use but not a significant amount. Therefore, the objects that are affected after these products are massively imported to Vietnam are aquaculture farmers with large-scale production.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Japanese Enterprises Want to Leave China to Enter Vietnam

set-up business in Vietnam

The labor costs in China rose steadily, along with the territorial dispute between Beijing and Tokyo are the two factors that the Japanese business community wants to move their production to Vietnam instead of China.

Mitsui OSK Lines, the largest shipping company in Japan has decided to invest 1.2 billion USD in the project to build international container port in Hai Phong. The decision is given 3 years since the Japanese businesses gradually increase investment in Southeast Asia due to the rising labor costs in China and the territorial dispute between Beijing and Tokyo causes many complex issues to incur.

The International Container Terminal Project in Hai Phong is implemented by the Tan Cang Saigon Company, partner Molnykit (Japan) and Hai Phong International Container Port, in the form of public-private partnership (PPP) and under the guidelines the Government of Vietnam and Japan.

According to the Financial Times, the terminal will start operation in 2018 and double the port’s current capacity to serve the needs of the growing electronics manufacturer industrial zones near Hanoi.

Currently, the situation that many Japanese companies close their factories in southern China and moved manufacturing operations to areas with cheaper labor costs in Vietnam.

Since the protests against Japan exploded in major cities of China in 2012, investing activities of Japanese companies in Southeast Asia surged. The foreign direct investment from Japan to ASEAN reached more than 20 billion USD in 2015, according to Government data, and exceeded total foreign direct investment in China, Hong Kong.

Results from an annual large-scale survey of Japan External Trade Organization showed that the proportion of Japanese companies want to expand production in China fell below 40% since 1998.

According to another report from Mizuho Research Institute, after surveying the opinions of more than 1,000 Japanese manufacturers, it is showed that Vietnam was the top destination among 12 countries participating in TPP Agreement for companies who want to increase their investment.

Vietnam is also one of the countries in which Japanese firms considered ideal to build the factory if they move production out of China’s territory.

Many reports estimate the total domestic product of the ASEAN countries will increase from the current rate of 2.6 trillion USD to 5.8 trillion USD in 2025. The rising labor costs in China are changing the conception of the Japanese business community on the role of ASEAN in the global supply chain. Vietnam is really an emerging heaven of electronic products. This fact will completely change the macroeconomic outlook of Vietnam.

In addition to the prospect to become the center of merchandise exports to Europe and the United States, Vietnam can also directly supply goods to the ASEAN markets in the context of mass population is about to reach 700 million people.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Company profiling and due diligence

business due diligence in Vietnam

At ANT Consulting, we could assist client to study the financial strength business due diligence of a company in Vietnam and provide useful information extracted from the local press, industry contacts, and other sources.

We could provide:

A report on a target company;

A listing of the company’s key officers and senior management;

Banking and other financial information about the company;

Market information, including sales and profit figures, and potential liabilities

We could also provide clients with an opinion as to the viability and reliability of the overseas company or individual as well as an opinion on the relative strength of that company’s industry sector in target market.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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M&A Activities in Vietnam in Recent Years

Buy a company in Vietnam

Vietnam’s population is more than 90 million people so that foreign investors are looking at Vietnam as a fertile ground to expand their market by M&A deals.

Accordingly, along with the process of restructuring the economy and international integration of Vietnam, in recent years, merger and acquisition (M&A) activities have been fairly active, in which many major transactions involving Thai enterprises.

In 2009, the total value of M&A transactions in Vietnam reached 1 billion USD then in 2015, the number is 5 billion USD. Particularly for the first 6 months of 2016, the value of M&A in Vietnam has exceeded 3 billion USD, in which it took place in such sectors as retail, commodities and real estate…

Thailand, Japan and Singapore are still the major buyers in Vietnam market. While Japan invests in companies in aviation, petroleum and pharmaceutical sectors, Singapore emerges with commercial real estate projects. Lastly, Thailand continues to focus on the retail segment with the goal of expanding the market.

Head of M&A transactions last year is the retail sector and consumer goods, accounting for 38.46% of the total value. In particular, the scale of 2 M&A deals from Thailand accounted for 24.8% of the total value of 2015 and the first half of 2016. This shows the trend that retail businesses at home and abroad continue to explore the market with more than 90 million people of Vietnam. Recently, Thailand’s major corporations continuously acquired large supermarket chains such as Metro, Big C… Singha has also become a strategic partner of Masan with investment value of 1.1 billion USD.

According to experts, there is a great competition in the business sector of Thailand and Japan when investing in Vietnam because Vietnam market has now fully matured and become more attractive. On the other hand, the market of Thailand and Japan has begun to saturate.

Especially, there is a wave of M&A of Thai investors in Vietnam in order to expand the market for the “Made in Thailand” products. While Thailand’s population is about 50 million, the size of Vietnam’s population is almost double – over 90 million people.

With many innovations in policy such as the Investment Law and the Enterprise Law, the process of international integration will create opportunities and new playing field for the M&A transactions to boom.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Assistance in Setting-up Business Venture

set-up company in Ho Chi Minh City

To help Clients start business in Vietnam, ANT Consulting introduces the service to assist in setting up business venture in Vietnam.

Foreign investors could make direct investment in Vietnam through setting up one hundred per cent (100%) capital of foreign investors, or establishing joint venture between domestic and foreign investors, or investing in the contractual forms of: BCC, BO, BTO, and BT

Types of enterprise for foreign investors to invest in Vietnam are as following:

Limited Liability Company

A limited-liability company may not issue securities to mobilize capital.

Joint Stock Company

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities. In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company. Management system of Joint Stock Company is more complicated than Liability Company.

Partnership

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets. Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Representative Office of Foreign Trader

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services)

Branch of Foreign Trader

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

Investing by Signing Contracts

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

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

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

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

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

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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