As of July 2019, Vietnam attracted 2,064 new FDI projects with a total registered capital of over US$8.2 billion, up 24.6% in terms of number of projects.
In addition, 791 existing projects registered to increase capital during the period with a supplemented capital of over US$3.4 billion. The foreign investors also carried out more than 4,300 transactions to contribute capital and acquire shares in domestic companies.
Vietnam Insider talks to Sophie Dao, Partner of Global Business Services (GBS) LLC – one of the most popular business and legal services firm for foreign investment in Vietnam about this topic.
Tell us about foreign investment in Vietnam last few months. What’s the outlook for the rest of 2019?
As you may know, between January and July 2019, Vietnam‘s foreign direct investment nearly 7 percent year-on-year. FDI pledges for new projects, increased capital and stake acquisitions – which indicate the size of future FDI disbursements – surged from a year earlier to 20.22 billion USD. Statistics from the Ministry of Planning and Investment’s Foreign Investment Agency show performance was strong in the first few months of the year.
As a result of the Vietnamese Government’s commitment to continue working on creating favorable conditions for foreign companies to do business in the country, foreign direct investment in Vietnam is expected to continue increasing by the end of this quarter. Trading Economics global macro models and analysts have projected that FDI in Vietnam Vietnam will reach 25.10 billion USD in 2020.
As an investment consultancy, what do you do to help foreign investors in Vietnam?
We support foreign invested companies at every stage of growth, such as business incorporation, legal services, tax and compliance services, and help them further expand their business, including establishing new bases and branching out into key regions of Vietnam. We also assist foreign invested companies already operating in Vietnam to broaden their investments, and we proud of our incorporation services help hundreds of foreign investors access Vietnam annually.
Normally, foreign investors need business information before entering a new market, can you help them in Vietnam?
Sure! At GBS, we provide the information on industry-specific overview of trends, key players, and related market data. We and our associate firms also conduct research tailored to individual requests.
To help foreign investors broaden their investments, we provide information on location-specific incentives, including capital expenditure grants, preferential tax treatment, employment-related subsidies. Our consultants can arrange meetings with local government officials tasked with facilitating investment and study tours to relevant facilities.
Your company has operated in Vietnam for more than 10 years. What kinds of services do investors typically need most?
At the first stage, when an investor enter Vietnam, they need support for licensing and approval, which means meetings with officials of regulatory agencies and municipal governments. Companies already operating in Vietnam also need advice in areas of expertise such as law, tax, accounting, social securities, etc. Investors might need help searching for business networking opportunities with potential partners in Vietnam. Businesses in Vietnam need the most updated information on regulations made by the central government as well as local governments of each region. And sometime FDI companies have asked our team to support with PR activities or conduct joint press releases, utilizing our network with mass media in Vietnam.
What about the procedures relative to foreign Investment and freedom of FDI establishment in Vietnam?
Our government has relentlessly perfected its legal system, created more incentive policies for foreign investors and tried to fulfil its commitments to the international community. As well, Vietnam’s efforts to maintain its socio-political stability and step up and professionalise investment promotion activities play a crucial role in increasing the FDI flow.
Nowadays, every investor can apply for the investment certificate and registration certificate themself in Vietnam. Anyway, if they need any support to start their business in Vietnam, we are here to help.
With assistance by Jenny Nguyen
This article was originally published on August 02, 2019.
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