Samsung Invests Aggressively in Bac Ninh Province

With the favorable and open business environment, Vietnam has committed to be the attractive investment destination for multinational enterprises to come and set up business in Vietnam.

Samsung wants to raisethe total investment in Bac Ninh to 6.5 billion USD and transferred the model from high-tech project to large-scale project…

Bac Ninh Provincial People’s Committee has just sent an official letter to the Prime Minister on supporting Samsung Display Co., Ltd Vietnam (SDV) in the process of project expansion in Bac Ninh province.

According to the Provincial People’s Committee of Bac Ninh, so far SDV has raised investment capital to 4 billion USD. Reportedly, SDV’s total revenue in 2015 was 2.7 billion USD, in which exports reached 2.5 billion USD. Accumulated to October 2016, SDV has revenue of 5.9 billion USD.

Project disbursement schedule of Samsung by the end of 2016 is estimated at 2.5 billion USD. Expected in 2017, Samsung will disburse the registered capital of 4 billion USD in Bac Ninh.

Bac Ninh confirmed that SDV has done on schedule and as planned when the entire Module 3 project when come into operation will be a prerequisite to attract more companies to serve SDV.

Notably, SDV has expressed their desire to invest an additional of 2.5 billion USD, disbursed in 5 years since 2018. Thereby, raising the total investment in Bac Ninh to 6.5 billion USD.

Recently, according to Mr. Hyun Woo Bang – Deputy General Director of Samsung Vietnam, in 2016, although the Company has to face with the problem of Samsung Galaxy Note 7, thanks to the support of the Government and Ministries in Vietnam, Samsung has overcome difficult period. In 2016, revenue of Samsung Vietnam reached 46.3 billion USD; exports reached 39.9 billion USD, increased by 9.9% compared to 2015.

Samsung accounted for 22.7% of export turnover nationwide, a slight increase compared to the rate of 20% of the previous year.

Reportedly, Bac Ninh is the province that attracting a lot of foreign investment projects in Vietnam. Moreover, Bac Ninh is the investment destination of 30 countries and territories around the world. Accumulated up to the present time, in the Industrial Zones in Bac Ninh province, 1,050 projects are licensed with a total investment of 13.1 billion USD. FDI sector has created 231,000 jobs.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Continue Reading

Vietnam sees record new business in 2016

A man welds a steel bed at a furniture factory outside Hanoi. Photo by Reuters/Kham

The new 110,000 businesses could create nearly 1.3 million jobs.

Vietnam saw a record number of business openings in 2016, shedding hopes for robust growth and strong investment in the near future.

A new report from the Ministry of Investment and Planning said the past year saw 110,000 new businesses open, up 16.2 percent from 2015. Registered capital increased 48 percent to more than VND891 trillion ($39 billion).

These new companies are expected to create nearly 1.3 million jobs, independent of the nearly 26,700 firms who suspended operations during tough times only to resume operations in the past 12 months.

Vice Minister Dang Duy Dong described the numbers as “lively.”

“With such energy and investmentopportunities, the market will surely be more competitive and the economy will leap strongly,” the government report quoted Dong as saying.

More than 36,000 new businessescame online in Ho Chi Minh City and nearly 23,000 in Hanoi.

New openings in the real estate sector increased almost 84 percent from last year, while education and healthcare openings increased 43 and 52 percent, respectively.

Arts, entertainment and agriculture businesses all dropped from last year.

But the ministry’s report also revealed a dark side of the boom.

Bankruptcies surged 32 percent to nearly 12,578, including in both agriculture and real estate.

Vietnam hopes to see over one million businesses in operation by 2020, which means an average of 100,000 openings every year.

Source: Bao Vnexpress

Continue Reading

Hanoi, Ho Chi Minh City listed as foreign investment magnets

Vietnam received an estimated $18.1 billion in new FDI pledges from January to November this year.

Ho Chi Minh City and Hanoi have been ranked 10th and 17th respectively out of the top 25 emerging market cities on the fDi 2016/17 Global Cities of the Future listing, a global investment service provided by the Financial Times.

Ho Chi Minh City, Hanoi listed as foreign investment magnets

Chinese cities dominated the ranking with Shanghai and Beijing claiming the top two places.

Thailand’s Bangkok was the other Southeast Asian city named on the list, placed above Ho Chi Minh City and Hanoi in 9th.

In the top 25 overall ranking, which included emerging and developed countries, Singapore kept its position at the top of the table as the Global City of the Future 2016/17, with London holding strong in second place and Dublin displacing Hong Kong to rank third.

 The ASEAN Investment Report 2016 showed that Cambodia, Laos, Myanmar and Vietnam (CLMV) recorded a combined 38 percent jump in FDI inflows to $17.4 billion last year from the year before. Their share as recipients of the investment flowing into the region rose from 10 percent in 2014 to 14 percent in 2015.

Leading the CLMV group, Vietnamattracted FDI inflows of $11.8 billion in 2015, a 28 percent increase year-on-year, said the report.

Vietnam received an estimated $18.1 billion in new FDI pledges from January to November this year, down 10.5 percent from a year ago, according to the Ministry of Planning and Investment.

However, the investment ministry said foreign investors had disbursed an estimated $14.3 billion in Vietnam as of the end of November, a rise of 8.3 percent from the same period last year.

Foreign direct investment inflows to Vietnam are expected to hit a record high of $15 billion this year, Prime Minister Nguyen Xuan Phuc said at the Vietnam Development Forum earlier this month.

Source: Bao Vnexpress

Continue Reading