Transparency in Transportation Operations

Vietnam could become the seventh largest exporter to the US in 2019 if it can maintain the growth rate of 40.2% as in the first quarter.

According to the data announced by the US Bureau of Statistics, in the first three months of 2019, the export speed of goods from Vietnam to the US increased by 40.2% over the same period last year. This is the fastest growth rate among the 12 largest exporters to the US in 2018. Behind Vietnam is Korea with a growth rate of 18.4%. On the other hand, Chinese goods to the US fell 13.9% amid increasing trade tension between the two countries.

If maintaining the growth rate in the first quarter for the rest of 2019, Vietnam could surpass the big ones like France, England, Italy and India to become the 7th largest commodity exporter for the world’s largest economy, with an estimated value of nearly 69 billion USD. Last year, Vietnam ranked 12th with the value of goods exported to the US reached more than 49.2 billion USD.

According to the statistics of the General Department of Customs, in the first 4 months of this year, the US continued to be the largest importer of Vietnamese goods such as textiles and garments with value of 4.42 billion USD, increase by 9.1% compared to the same period last year; footwear (2 billion USD), increase by 13.5%; machinery, equipment, tools and spare parts increase by more than 54% (1.3 billion USD); wood and wood products (1.42 billion USD), increase by 34.7%.

In early May, US President Donald Trump also mentioned that producers could choose Vietnam as a destination after leaving China. According to the Fitch credit rating agency, there were signs that Vietnam could benefit from the impact of trade tension from the flow of trade out of China.

Technology startup in Vietnam is increasingly attractive. Many foreign enterprises are interested in this area and showing their desire to set up business in Vietnam.

According to Mr Mitchell Pham, president of the New Zealand Technology Association (NZTech) – who is known to be the 1st native of Vietnam elected to become the chairman of NZTech, representing for over 400 technology enterprises New Zealand: “All trip participants were impressed with the development of science and technology in Vietnam. We are looking for specific opportunities for cooperation with Vietnam-tech enterprise”.

More information about the members of the delegation, Mr Mitchell Pham said that back to Vietnam this time, accompanied him are 6 young leaders of technology enterprises in New Zealand with a desire to learn and exchange with technology businesses in Vietnam, in order to create connection for long-term investment goals.

In terms of the favorable conditions, according to Mr Mitchell Pham, trade relations between New Zealand and Vietnam have the fastest growth rate in Southeast Asia with 120% in the period 2010 – 2015. Two-way trade of the two countries in 2015 has reached 1 billion USD.

Moreover, Vietnam is known as the country with the booming information technology market and the government is also trying to create more incentives for this sector. Meanwhile, technology businesses in New Zealand have experiences and large operating network, certainly the cooperation and investment in Vietnam will be intensified in the coming period.

According Chicilon Media, Vietnam technology market, especially Ho Chi Minh City is developing extremely powerful. Consumers is having trend to access to communication products and services via smartphones instead of traditional media such as TV, poster… Hence, this Company has strengthened their strategy focusing on channels to access information over the phone and access to a diverse range of partners such as the startup.

In parallel, the growth of mobile devices will continue in the coming years. Therefore, the approach to the users of mobile devices – who are moving to the final stage of the shopping journey and going to buy the product – becomes extremely important. Currently, marketing on mobile devices is evaluated as a simple marketing channels, rapid deployment and easy to access to customers.

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:

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

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.

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 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)

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.

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.