Foreign investors prefer indirect investment in Vietnam

HCMC - Foreign investors have stepped up their indirect investments in Vietnamese enterprises through capital contributions and stake acquisitions, instead of direct investments.

According to data from the Ministry of Planning and Investment’s Foreign Investment Agency, new foreign direct investment (FDI) approvals in Vietnam this year reported a decline over last year, while there was a surge in foreign indirect investment inflows.

Specifically, from early this year to December 20, foreign investors conducted nearly 6,500 transactions to contribute funds and acquire shares in local firms, with a combined value of US$9.89 billion, up a staggering 59.8% from the year-ago period.

Meanwhile, the country issued investment certificates for over 3,000 new FDI projects, with total registered capital of nearly US$18 billion in the period, down 15.5% year-on-year.

In addition, FDI investors registered an additional US$7.59 billion for nearly 1,200 other operational projects in the period, marking a fall of 7.59% against the same period last year.

In general, the country attracted US$35.46 billion in new foreign investment this year, equivalent to 98.8% of the figure recorded last year.

According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector was the most attractive, receiving a total investment of US$16.58 billion, making up 46.7% of the fresh capital.

The real estate sector came in second, with US$6.6 billion, followed by the retail and wholesale sector, with US$3.67 billion.

Japan remained Vietnam’s largest investor this year, with US$8.59 billion, accounting for nearly 24.2% of the total. South Korea ranked second, with US$7.2 billion, and the third largest investor was Singapore, with US$5 billion.

- Saigon Times -

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Vietnam wants China to import more, invest more

China should increase imports of Vietnamese goods and make more hi-tech investments, government officials and business representatives say.

Le Hoai Trung, Vietnam's Deputy Minister of Foreign Affairs, proposed at the Vietnam-China Economic Promotion Forum Thursday that China creates more favorable conditions for more Vietnamese goods to enter the country through border gates.

"We hope that the Chinese government will be more open to the Vietnam market, especially for products that Vietnam has strong supply and China has high demand for, such as rice, pork, milk, agriculture, seafood, electronics and consumer goods," Trung told the forum attended by 500 Vietnamese government and business representatives and 200 Chinese counterparts.

Vietnam has a high trade deficit with China. From January to November, the country exported $37.7 billion worth of goods to China and imported $59.6 billion, a trade deficit of $21.9 billion, according to Vietnam Customs.

Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, said: "Although Vietnam’s exports to China have been increasing this year and trade deficit is declining, I don’t think this trend will be sustainable."

He said it would require a big effort from authorities to pave the way for Vietnamese goods, especially agriculture products, to enter China.

Loc also proposed that that unofficial trade activities between the two countries at the border be formalized to guarantee long-term benefits for both sides.

As protectionism in the world rises, Vietnam and China need to cooperate to control trade cheating, like Chinese businesses exporting its goods via Vietnam to other countries, which would impact on sustainable development of both countries, Loc said.

Trung said at the forum that Vietnam welcomes foreign direct investment from China that is focused on high technology in infrastructure, supporting industry and agriculture.

He added that Chinese FDI businesses should ensure environmental protection and Vietnamese labors’ benefits when investing in the country. 

Loc added that China, as a leading country in the world in the high-tech sector, can provide this kind of investment to Vietnam.

"Vietnam is looking for a new type of foreign investment which has higher quality, integrate more with Vietnamese businesses using high-technology which are environment-friendly," he said.

China is Vietnam’s largest import market, while Vietnam is China’s largest trading partner in ASEAN and the 8th in the world.

From January to November, bilateral trade turnover reached over $97 billion, up 16.5 percent year-on-year, according to official data.

China has invested in over 2,000 projects in Vietnam, with a total registered capital of $13 billion. It ranks 7th out of 129 countries with FDI in Vietnam.

-evnexpress-

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ANT Lawyers Joined with International Law Firms in Hong Kong on Dec 7th, 2018

In order to meet the legal demand arising from oversea investors, ANT Lawyers representative, Managing Partner Mr Tuan Nguyen has signed cooperation agreement with other international law firms in Hong Kong on Dec 7th, 2018 to provide legal support and service across numerous countries.

The lawyers are from Hong Kong SAR, the United Kingdom, Myanmar, Thailand, Vietnam, Malaysia, Taiwan, Macau, China (Beijing, Shanghai and Chengdu) have met up and discussed cooperation plan. The cooperation is expected create a platform for communication and cooperation to provide legal support and services to global enterprises, optimizing the business environment, promoting interconnection, investment and trade cooperation. At the formal event, the eleven representatives of the participated international law firm signed the Memorandum of Understanding, and promised to strengthen legal cooperation and exchanges in policy analysis, legal research, and legal services to provide comprehensive services for investors.

The cooperation signing ceremony was participated by the representatives of Government of Hong Kong Special Administrative Region (“HKSAR”) and the Standing Committee of the National People’s Congress, the governors, members and other professionals to witness this important moment. Ms. Tan Huizhu – Deputy Director of the Basic Law Committee of the HKSAR; GBM, GBS, JP and Standing Committee of the National People’s Congress – Mr. Tan Yaozong; GBM, GBS, JP and Vice Minister Vice Minister of Legal Department of Liaison Office of the Central People’s Government in the HKSAR – Mr. Liu Chunhua attended the ceremony as guest.

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Vietnam officially introduces national rice trademark

CAN THO – The Ministry of Agriculture and Rural Development today, December 18, has announced the logo of Vietnamese rice, marking the milestone of building a national rice trademark after many years of tapping the global market.

The organizer of the third Vietnam Rice Festival taking place in the Mekong Delta province of Long An from December 18 to 24 noted that the event was aimed at supporting Vietnamese rice producers and traders in boosting trade and investment, as well as ensuring sustainable development and cementing the position of Vietnamese rice in the global market.

This is the first time Vietnam has announced the national rice trademark since the country entered the global rice market in 1989.

To build the rice trademark, the ministry had earlier hosted a rice logo design contest.

Earlier, Le Thanh Tung, head of the southern representative office of the ministry’s Department of Crop Production, told The Saigon Times that Vietnam had completed procedures to seek international protection for its rice trademark.

Accordingly, to have the rice trademark protected, Vietnam filed an application with the Madrid System, a system for the registration of worldwide trademarks governed by the Madrid Agreement and the Protocol relating to the agreement. A single application with the system enables a trademark owner to obtain protection in all member nations.

Tung remarked that the ministry had also formulated regulations concerning the use of the Vietnamese rice trademark, requiring individuals and organizations to meet particular criteria to use the trademark.

In particular, Decision 1499/QD-BNN-CBTTNS 2018 stipulates individuals and organizations can use the certified trademark when granted business registration certificates or investment certificates that include rice production, processing and trading.

Individuals and organizations must be certified to satisfy food-safety requirements for rice processing, preservation and trading, or they must obtain one of the following certificates: good manufacturing practices, hazard analysis and critical control points, food safety management system ISO 22000, international food standards, global standards for food safety, food safety system FSSC 22000 or equivalents that are still valid.

Further, they must have rice products that are certified to meet Vietnamese standards, fulfill tax obligations and boost environmental protection activities.

Rice products that have been certified include white rice, jasmine white rice and glutinous white rice.

Regarding product quality, rice bearing the Vietnamese rice trademark must meet national quality standards, with white rice meeting TCVN 11888:2017 requirements, jasmine white rice meeting TCVN 11889:2017 requirements and glutinous white rice meeting TCVN 8368:2010 requirements. If there is a change to quality standards, rice products must comply with the updated standards.

Under the ministry’s Decision 1499, individuals and organizations have the right to use the rice trademark and their own brands for packaging, advertising and trading certified rice products. They can also exploit, use and enjoy other economic benefits from the trademark and participate in rice trademark promotion activities.

However, individuals and organizations are obliged to use the trademark only on certified rice products, to ensure product quality, to inform the trademark management unit if they no longer need to use the trademark and to pay any related fees.

-The SaigonTimes-

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Google plans a representative office in Vietnam

A senior Google official says the tech behemoth is studying the process of opening a representative office in Vietnam.

Google senior vice president Kent Walker told Deputy Prime Minister Vuong Dinh Hue at a meeting Tuesday that the opening of a rep office in the country would follow the principle of ensuring that host country regulations do not contradict the firm’s international commitments.

A report on the government website chinhphu.vn also quoted Walker as saying that he agreed with the Vietnamese government on the need for cyber-security to ensure a stable society. Google will cooperate with authorities in achieving this goal, he said.

The rep office announcement came as Vietnam’s cybersecurity law is set to take effect next month. The law requires digital businesses like Facebook and Google to open a representative office in Vietnam.

Deputy PM Hue said that he appreciated Google’s contribution to a draft decree on guidelines to implement the law and ensure cyber-safety and security.

"Vietnam’s market advantages and the adaptability of its young workforce will be attractive factors for Google to open a representative office in Vietnam," he said.

Meanwhile, a Google spokesperson told Reuters Wednesday: "We remain very excited to see how technology is being used by businesses and people in Vietnam. There are a number of different factors we look at before opening an office, but we have nothing to announce at this time."

Vietnam’s Cybersecurity Law, which was passed in June, requires tech businesses to store the data of Vietnamese users in Vietnam, and to provide this data to the Ministry of Public Security upon receipt of requests in writing, in cases where any infringement of the cybersecurity law is being investigated.

Seventeen U.S. lawmakers in July urged the CEOs of tech giants Facebook and Google to resist changes stipulated by the law.

However, Vietnam’s Ministry of Foreign Affairs reasserted that the cybersecurity law is designed to protect rights of organizations and individuals. 

- evnexpress -

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Application documents for grant of commercial bank establishment licenses are now released

The Circular No. 28/2018/TT-NHNN amending the Circular No. 40/2011/TT-NHNN was promulgated by the Governor of the State Bank of Vietnam on November 30, 2018.

Pursuant to this Circular, Article 14 in the Circular No. 40 specifies application documents for licenses for establishment and operation of commercial banks. 

The Circular No. 28 amends and supplements regulations on submission of criminal records of personnel of the control and management boards as follows:

- These criminal records must be issued by criminal record database authorities (Vietnamese nationals), competent authorities of Vietnam or other overseas countries (Non-Vietnamese persons);

- These criminal records must be issued no later than 06 (six) months before the date of submission of application documents;

- These criminal records must contain such information as criminal status, prohibition of holding office, establishing and managing enterprises and cooperatives. 

- Thuvienphapluatvn -

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Documentation requirements for grant of certificates of conformance to food safety regulations are now available

This is the highlight of the Circular No. 43/2018/TT-BCT on food safety administration within the scope of responsibilities assigned to the Ministry of Industry and Trade.

The Circular prescribes that, in case of application for initial issue of a certificate of conformance to food safety regulations, application documentation will be comprised of the followings:

- The completed application form No. 01a.

- The interpretation of facilities, equipment and appliances conforming to food hygiene and safety regulations prepared using the form No. 02a (applicable to manufacturing establishments), 02b (applicable to business establishments) or the form No. 02a and 02b (applicable to manufacturing and business establishments).

- The certificate of fitness for occupation/ the list of workers fit for work of the owner of the food manufacturing and business establishment and the person directly manufacturing and trading foods, issued by a district-level healthcare service provider (a duplicate copy attested by the applicant establishment).

- The certificate of completion of training in food safety knowledge/ the certificate of acquisition of food safety knowledge of the food manufacturing and business establishment and the person directly manufacturing and trading foods (a duplicate copy attested by the applicant establishment).

This means that the certificate of business registration/ the certificate of enterprise registration/ the certificate of investment in the food manufacturing and business industry will not be required in comparison with the application requirements prescribed in the Circular No. 58/2014/TT-BCT dated December 22, 2014 remaining in force to date.

The Circular No. 43/2018/TT-BCT will take effect on January 1, 2019.

Source: Thuvienphapluatvn

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