US Investors Have Poured 1.1 Billion USD into Ho Tram Strip Project

Asian Coast Development Ltd is one of the large US investor who come and set up company in Vietnam.

Ho Tram Project Company (HTP) is a wholly foreign-owned subsidiary of Asian Coast Development Ltd, with more than 1 billion USD of committed capital deployed, which is the largest US private company investing in Vietnam. Moreover, they are also the first company to register for Vietnamese to play casino.

According to HTP – the investor of the 4-billion-dollar-super-project named “Ho Tram Strip”, the Company has poured 1.1 billion USD in this project and they has just announced to continue to fund the phase 3 includes apartment tower, condotel and villa.

Located on the north side of The Grand Ho Tram Strip resort, the 12-story Kahuna Ho Tram Strip project has a total of 244 rooms. It consists of 164 one or two-bedroom apartments, 9 penthouse apartments and 44 luxury villas located on the beach with area of 218 to 223 square meters.

According to the developer, this project when completed will contribute to the diversification of facilities and realize the goal of turning Ho Tram into the entertainment capital of Vietnam. In addition, HTP has developed the Gallery Villa apartment project at the nearby The Bluffs golf course. The 2nd hotel tower with 559 rooms named “The Beach Club” is now rushing to complete to welcome its first guests in early 2018. Furthermore, other service facilities such as water park, outdoor theater and private international airport are also underway.

It is known that the price of condotel apartment in Ho Tram is from 2 billion VND (equivalent to about 88,800 USD), villa is priced from 8 billion VND (about 350,000 USD). The project was designed by leading architectural firm Korn Architects and is due to commence in quarter 4 of 2017.

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SCG (Thailand) Pours Capital into Vietnam Petrochemical Sector

With the acquisition of 25% shares from Qatar Petroleum at Long Son Petrochemical Refinery Complex project, SCG Group (Thailand) continues to strengthen its position as a major investor in Viet Nam petrochemical sector.

Previously, Vina SCG Chemicals (VSCG), a wholly-owned subsidiary of SCG in Vietnam, has signed contract to acquire shares of QPI Vietnam Limited (QPIV), a subsidiary of Qatar Petroleum to receive all 25% shares in Long Son Petrochemical Co., Ltd – the investor of Long Son petrochemical complex, according to a press release posted on SCG’s website.

This 36.1 million USD deal (approximately 1.100 million Thai bath), which raised SCG’s direct and indirect shares in Long Son Petrochemical Co., Ltd from 46% to 71%. Meanwhile, the remaining 29% of the joint venture to develop this project is held by PetroVietnam (PVN).

This project is a major oil and gas project, the first petrochemical complex in Vietnam with production capacity of up to 1.6 million tons of olefins per year, total investment estimated at 5.4 billion USD, applying modern and advanced technologies and techniques, operating safely and meeting the requirements of environmental protection, ensuring high quality petrochemical products such as PP, PE…

The project will create about 15,000 – 20,000 jobs during construction and more than 1,000 jobs when go into commercial operations.

Moreover, the project is estimated to contribute to Ba Ria – Vung Tau and the national budget 115 million USD per year (about 2.5 trillion VND per year) during 30 years since its inception.

The successful negotiation and signing of documents and transfer of funds among partners are important milestone in the project implementation, ensuring that the project is put into operation by 2021.

The Siam Cement Group (SCG) is a leading corporation in the ASEAN region with many efforts to establish competitiveness in the global market. SCG has entered the Vietnam market since 1992.

SCG has also invested heavily in Vietnam in such core business lines as: construction materials, petrochemicals and packaging. In addition to direct capital inflows, in recent years, SCG has also expanded its investment in Vietnam through mergers and acquisitions (M&A).

SCG’s companies in Vietnam are mainly operating in the fields of cement – construction materials, chemicals and packaging. By the end of 2016, total assets of SCG in Vietnam are about 943 million USD.

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

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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

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Great Opportunity in Vietnam – Japan Aviation Cooperation

Not only contributing to the trade connection between the two countries, the aviation industry also opens up opportunities for investment cooperation for investors in Vietnam and Japan.

All Nippon Airways (ANA) has appointed Mr Koji Shibata, Senior Vice President, Asia – Pacific Strategic Director to be a member of the Board of Directors at Vietnam Airlines Corporation. (Vietnam Airlines). It showed the respect and high appreciation of the cooperation opportunities of the leading Japanese aviation corporation. Mr Koji Shibata also represented the capital and exercised the rights and obligations of ANA with 107,668,938 shares, equivalent to 8,771% charter capital of Vietnam Airlines.

Ealier, on July 1st 2016, ANA has transferred to Vietnam Airlines the amount of 109 million USD to complete the company’s largest offshore investment transaction, and officially became a strategic shareholder of Vietnam Airlines.

According to Mr Pham Ngoc Minh, Chairman of Vietnam Airlines, ANA is truly a strategic partner, capable of cooperating, supporting and accompanying Vietnam Airlines in the process of developing and expanding the market, upgrading quality, service and corporate governance.

Currently, Vietnam Airlines flight routes are connecting to 20 domestic destinations, 29 international destinations with high frequencies and concentrating to connect through gateway airports in Ho Chi Minh City and Hanoi, participating in exploiting large customer flows in the region, directly competing with major transit centers such as Hongkong, Bangkok, Singapore, Kuala Lumpur and the Greater Mekong Subregion. In addition, Vietnam Airlines is operating 66 flights a week to Japan, while ANA has not cooperated with any airline for the same flight route.

As known, in addition to passenger transport, another aviation sector which is attracting the attention of Japanese investors is the air traffic management.

According to the Civil Aviation Authority of Vietnam, the Japanese party is proposing the establishment and operation of a special purpose company (SPC) to collect, analyze and provide information for air traffic management for relating companies. The SPC will be a joint venture with 51% Vietnamese capital and 49% Japanese capital. This model is being considered by the Vietnamese authorities, considering for implementation.

In addition, the investment in the Long Thanh International Airport project (Phase I), worth 3.53 billion USD project is still open to international investors, including Japanese companies, those who pursue this project from the first days.

According to the Civil Aviation Authority of Vietnam, based on the current agreements, the two countries’ airlines are allowed to operate without restrictions between destinations in Vietnam and Japan (except Haneda Airport in Tokyo). Currently, three Japanese aviation corporations that are ANA, Japan Airlines and Vanilla Air are operating five routes from Tokyo (Narita and Haneda) to two destinations in Vietnam (Hanoi and Ho Chi Minh City), with a total frequency of 42 flights/way/week.

Meanwhile, Vietnam Airlines is the only Vietnamese airline that operate the Vietnam – Japan flights, but with great frequency. As of the end of January 2017, Vietnam Airlines is operating 10 flights from three destinations in Vietnam: Ho Chi Minh City, Hanoi and Da Nang to 4 destinations in Japan: Tokyo (Haneda/Narita), Nagoya, Fukuoka and Osaka, with a total frequency of up to 66 flights/way/week. Furthermore, Vietjet Air and Jetstar Pacific have been licensed by the Civil Aviation Authority of Vietnam to operate flights from Hanoi/Da Nang to Osaka in 2017.

To sum up, in 2016, the total air transport between the two countries reached nearly 2 million passengers, increased by 18.6% over the same period in 2015, with an coefficient of average seat use of 80%, of which Vietnam Airlines has transported 1.28 million passengers, accounting for 66% market share, with coefficient of average seat use of over 82.2%.

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

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Vietnam is Increasingly Attracting Capital from the US

Vietnam is taking every opportunity to grow its economy and improve the living standard. This is not a vain dream since Vietnam has young and plentiful work force. That is why multinational companies wish to come and set up company in Vietnam.

• Japan Increases Investment in Vietnam in Finance and Services
• Why Japan Investors Invest in Vietnam

The year 2015 marked the 40 years since the war end and the 20 years of normalized the relationship between Vietnam and the US. Vietnam began the process of innovation since 1986 but not until 1995, foreign investment in Vietnam began to flow in when the Government established formal diplomatic relations with the United States and joined the National Association of the South East Asia (ASEAN).

In recent years, foreign investment in Vietnam has accelerated. The Korean company is particularly excited with this market. Samsung Electronics is operating and building three plants at three locations – Ho Chi Minh City, Thai Nguyen and Bac Ninh. In total, this giant electronic corporation has poured more than USD 10 billion in Vietnam.

Vietnam is also expected soon to welcome a “wave” of investment from the US. The Procter & Gamble (P&G) – a consumer goods manufacturer is building a factory in Binh Duong with the cost of 100 million USD. The plant will produce Gillette razors.

Since starting operations in Vietnam in 2008, Intel is also pouring money into this market. This semiconductor giant is planning to manufacture in Vietnam the most of advanced processor for personal computers in the future.

Moreover, other big names come from the US that are expanding operations in Vietnam are Starbucks and McDonald’s. They opened their first store here in December 2013 and February 2014.

There are a number of factors that make foreign investment in Vietnam explode. One of the most important reasons is the low labor cost. Labor cost hikes in China are the reason why many multinational manufacturers turned their attention to Vietnam where the cost is 50% cheaper. Besides, the purchasing power of Vietnam consumer is increasing, inflation has been curbed and many easing regulations to boost growth are also the reason why continuous investments are poured tin..

However, the biggest attraction for most foreign investors is the Trans-Pacific Partnership agreement (TPP) about free trade in which Vietnam is one of 12 countries that participate in negotiations. In mid of this year, General Secretary of Vietnam, Mr. Nguyen Phu Trong will visit the United States. TPP agreement will be the main topic of the conversation with the US officials. If the two countries can reach an agreement, the US will become even more important partner of Vietnam’s economy in the future.

In a press conference in HCM city in January 2015, US Ambassador in Vietnam – Mr. Ted Osius was upbeat about the impact of the TPP to Vietnam economy and the US investment here. TPP agreement “will allow the US to become the number one investor and trading partner of Vietnam” he said.

In about 4.5 million Vietnamese living overseas, about 2 million are living in the US. In particular, many people have made a name in the business world. They are Mr. Henry Nguyen – who brought McDonald’s to Vietnam and Mr. David Thai – founder of Highlands coffee chain.

According to the Ministry of Foreign Affairs of Vietnam, approximately 180,000 companies in the United States are owned by Vietnamese, achieved a total revenue of 20 billion USD. Strengthening ties between the two countries could stimulate greater cash flow stream across the Pacific.

The Ministry of Planning and Investment of Vietnam is estimated to spend 500 billion USD in over 10 years to develop the infrastructure necessary for sustainable growth. However, Vietnam can only able to meet 40% of the above figure, through the Government budget, ODA and private capitals.

That is why the Government wants to attract FDI. The Vietnam Government has set a target to create an industrial economy by 2020. Six priority areas are agriculture, forestry and fisheries processing, agricultural machinery, electronics, shipbuilding, environmental and energy saving, automobile production.

The transition from growth based on FDI into industrial-based growth can be rather difficult. However, Vietnam has shown it is serious and is still on track.

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