As businesses prepare their 2021 investment budgets, Vietnam will continue to appeal to foreign investors looking at the ASEAN region. However, as business should keep moving forward, there is new light at the end of the tunnel. 61/2020/QH14 (“LOI 2020”), replacing the currently effective Law on Investment No. VEPR said that China had become the biggest foreign investor in Vietnam with $723.2 million capital poured into Vietnam in Q1. HANOI -- Japan, once the largest source of corporate investment in Vietnam, has fallen to fourth place for the first nine months of 2020, overtaken by … The equitisation of state-owned enterprises (SOEs) in … Without these steps, Vietnam could see a major shortage of HR talent for future R&D centers. Vietnam posted $12.33 billion in foreign direct investment for the January-April period, down 15.5% on the year. Recently on 29 March 2021, the Government issued Decree No. It was followed by Singapore with $690.8 million, South Korea $547.3 million and Hong Kong $456.4 million. Written on May 31, 2021. Vietnam's foreign investment in the first quarter of 2020 has been severely impacted by the coronavirus. Vietnam remains attractive to PE funds in 2020 despite Covid-19. The government has targeted a 2 to 2.5 percent economic growth for 2020 with an aim of 6.5 percent in 2021. Vietnam's government said in December that it expects the economy to expand by 6.5% in 2021 after the COVID-19 pandemic and other forces … Have There Been Any Recent Changes to The Foreign Investment Rules in Vietnam? investment proposition for businesses who are looking to expand in one of the most dynamic and ambitious parts of the world. SOCIAL INFRANSTRUCTURE (Education … Client Update: Vietnam 2020 July The Law On Investment 2020 On 17 June 2020, the Vietnamese National Assembly adopted the Law on Investment No. This number was more than double compared to 2019 and nearly seven-fold compared to the 2015-2020 period. Vietnam’s revised Law on Investment (Law No. Negative list. Vietnam has been one of Asia's fastest-growing economies over the past decade, with an average GDP growth rate of 6.2% between 2000 and 2017. The growing focus on ESG in Vietnam was well-documented in a report released in August by Ho Chi Minh City Securities Corporation (HSC). THE ONLY REAL ESTATE FIRM IN VIETNAM WITH A TEAM DEDICATED TO THE HOSPITALITY SECTOR. In Ho Chi Minh City, apartment prices surged 27.5% in Q2 2020 from a year earlier (23.6% inflation-adjusted), to an average of US$2,582 per square metre (sq. January 30, 2020. It is also worth … In the first half of 2020, Intel saw its output increase 30 per cent, contributing three-fourth of its total global output. It doesn’t help that investments in Vietnam’s edtech sector have been fairly limited, with only US$3 million recorded for the first half of 2020. Highest values. The GDP growth of Vietnam over the past decades has averaged over 7%, so it’s safe to say they have experienced rapid progress. Line Bar Map. The Law of Investment 2020 (“LOI 2020”) was approved by the National Assembly of Vietnam on 17 June 2020, and takes effect from 1 January 2021, replacing and supplementing the Law on Investment 2014 (“LOI 2014”). September 2020 1 Vietnam’s EVN Faces the Future: Time to Get Renewables Right The Key to Success for PDP 8 Will Be Investment in New Renewables Technology and the Grid Executive Summary Vietnam has previewed its power development plans for the next decade, featuring a well-timed move away from over-reliance on inflexible coal-burning independent South Korea last year placed first in FDI in Vietnam, with $7.92 billion – over one-fifth of the total amount pumped into the country. The PEPFAR Vietnam Country Operational Plan (COP) 2020 prioritizes work to achieve two parallel and complementary goals: 1) Enable the Government of Vietnam (GVN) to establish a public health response approach to the HIV epidemic, grounded in a robust case-based surveillance system and using indigenous partners; Vietnam Innovation and Tech Investment Report 2020 out now. With its industrial sector being the most improved. Thanks to the skilled workforce, the increasingly better production infrastructure and the favorable high-tech investment attraction policy, Intel continues to pour investment capital in Vietnam. THE LIST OF VIETNAM’S NATIONAL PROJECTS FOR ATTRACTING FOREIGN DIRECT INVESTMENT TO 2020 I. Cecelia Smith-Schoenwalder June 11, … Vietnam's largest FDI attraction in the first five months of 2020 is a US$4 billion wind power plant construction project in the southern province of Bac Lieu. Recognizing this, the Vietnamese government has made transport infrastructure a priority and aims to raise investment from USD 7bn (2001 – 2008) to USD 120bn (2020). A market driven economy Vietnam’s rapid reforms include plans to encourage more investment from foreign and private companies. It will replace Law No. On 17 June 2020, the National Assembly of Vietnam passed the Law on Investment (LOI 2020), five years since the current Law on Investment 2014 (LOI 2014) came into effect. The National Assembly adopted the Law on Investment 2020 on June 17, 2020. 30 million jobs in Vietnam affected by COVID 19. According to the data from Vietnam’s Foreign Investment Agency (FIA), FDI investments in Vietnam were up 152.78% year-on-year in the first two months of 2017, and investment in Vietnam’s textile and apparel industry now accounts for 21% of the country’s total FDI. Foreign Direct Investment C. Setting up an investment in Vietnam 3 5 6 12 13 13 17 52 58 65 68 Deloitte Vietnam71 Foreign Investment Agency72 III. Land Rental Incentives56 D. Taxation and Customs I. Taxation 25 26 2Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world 3 In 2019, South Korea was the top investor in Vietnam investing US$7.9 billion, followed by Hong Kong at US$7.8 billion. In the first 11 months of 2019, the largest pledged FDI also came from Hong Kong. In any case, it would be a good idea to prepare at least USD 10,000 for your investment. The exciting rise of the tourism and hospitality industry in Vietnam has also prompted the infrastructure investment to keep pace with the boom of the industry. None. The … THE LIST OF VIETNAM’S NATIONAL PROJECTS FOR ATTRACTING FOREIGN DIRECT INVESTMENT TO 2020 I. The Vietnam market exhibited a modest performance in 2019, characteristic of contracted market P/E levels. The Vietnam home furniture market was valued at nearly USD 400 million in 2020 and the market is poised to grow at a CAGR of 9% by 2026. PE firms completed 38 deals i n Vietnam last year, a 41 percent increase from 2017 and a peak for this decade, according to the Global M&A Review 2018 from business information publisher Bureau Van Dijk. Openness To, and Restrictions Upon, Foreign Investment Policies Toward Foreign Direct Investment The report further revealed that tech startup funding in Singapore dipped to $693 million in 2019, when compared to the $705 million investment it attracted in 2018. In brief 9 min read. Vietnam's retail e-commerce sales in the 2016-2020 are expected to increase by 20% per year, and the country's total retail e-commerce sales are expected to reach USD 10 billion in 2020. m.), according to JLL Vietnam. The solution, apart from greater investment in education and R&D from the government, is to encourage R&D activities in local companies and to collaborate with foreign investors to educate employees and local communities. SOCIAL INFRANSTRUCTURE (Education … License : CC BY-4.0. Numerous investments by Vietnam specific private equity funds such as funds managed by Mekong Capital, Vietnam Investment Group and Private Equity New Markets (f.k.a. According to the General Statistics Office (via … The export revenue of Intel in Vietnam has reached $3.6 billion. Stay Permit for Foreign Investors in Vietnam. Vietnam aims to have 800 MW of wind energy capacity by 2020… That’s why the Vietnamese government a few weeks ago approved a new $921 million investment plan to boost the performance of its industrial parks from now until 2020. Furthermore, it is forecast that 20 million international visitors will arrive in Vietnam in 2020, generating US$ 30 billion of tourism and hospitality revenue. To strive to build a synchronous and modern national road network of a robust sea industrialized country in 2020. On June 17, 2020, the National Assembly of Vietnam adopted the Law on Investment (LOI 2020), which will take effect from January 1, 2021 with the following salient changes: List of … Intel has invested $1 billion in Vietnam and is looking to increase this in the coming years. Vietnam also has more ambitious targets for renewable energy due to its rich wind resources and potential. On 8 July 2020, Vietnam welcomed its first ever Law on Investment in the form of Public-Private Partnership (“PPP Law”), incorporating recommendations suggested by Duane Morris. India’s trade deficit with Vietnam reduced from US$ 2.22 billion during FY 2019-2020 to US$ 1.12 billion in FY 2020-2021. Investment No. II. Same region. TECHNICAL INFRASTRUCTURE (Transport, Power, Urban and Industrial Parks). The LOI 2020 shall take effect on 01 January 2021. Thailand had 40 new registered projects, 23 projects registering for capital adjustment and 100 capital contribution and share purchases in Vietnam with total registered capital of nearly $1.8 billion last year, according to Vietnam’s Ministry of Planning and Investment. Spending more than tripled to $1.6 billion, second only to Singapore at $7 billion and on a par with Indonesia at $1.7 billion in South-East … • The Law on Enterprises 2020 and Law on Investment 2020 will take effect from 01 January 2021 (except for some points in the Law on International Monetary Fund, Balance of Payments database, supplemented by data from the United Nations Conference on Trade and Development and official national sources. Vietnam has strong fundamental drivers for foreign private equity interest and will continue to attract more investments even after the Covid pandemic is contained, Usman Akhtar, Bain & Company partner, told Hanoitimes. 61/2020/QH14 (Law on Investment 2020) with new changes that set out favorable conditions for enterprises at the market entry stage, as well as investment and business operation in general. KPMG also has an … Generally, changes are made to align with the Vietnamese Similar values. Most of this potential relates to the areas of renewable energy and green infrastructure, including public … 31/7/2020. 67/2014/QH13 dated 26 November 2014 (“LOI 2014”). Around 3,883 new projects were licensed with a total registered capital of US$362.5 billion in 2019. The Law on Investment and Law on Enterprises are passed by the National Assembly. Vietnam Market Outlook 2020. Investment. In March 2020, the government started enacting fiscal and monetary policies to counter the effects of the pandemic, including a stimulus worth USD 30 billion and monetary policy designed to inject upwards of USD 11 billion into the economy. July 31, 2020. Vietnam is strategically located in the center of Southeast Asia. Aggregates. In FY 2020-21, for India, Vietnam was the 15th largest trading partner globally and the 4th largest within ASEAN, following Singapore, Indonesia and Malaysia. Though, the Law on Investment 2014 (LOI 2014) has been in effect for six years, new regulations are needed to create a more transparent, favourable and sustainable investment environment. Savills Vietnam report: FDI still flows into industrial real estate. Hanoi does not set FDI targets for a … Total foreign investment capital into Vietnam: As of April 20, 2020, the total newly registered capital, additional capital, contributed capital and the right to buy shares of foreign investors reached USD12.33 billion, equivalent to 84.5% in the same period in 2019. Decree 31 guiding the implementation of the Law of Investment 2020 in Vietnam. The Best Investment Opportunities in Vietnam in 2020 What are the Best Investment Opportunities in Vietnam in 2020? More Carve-Outs For 24-Month Limit of Project Implementation Schedule Extension Total registered FDI in Vietnam between January and November fell by 7 percent year-on-year, to $14.7 billion. August 26, 2020. Additionally, FDI pledges, which indicate the size of future FDI disbursements, increased 0.8 percent in the year to around USD 14 billion. These investments are typically in the US$6-20 million range and are much larger in … Fueled by continuous growth, Vietnam continues to attract record foreign direct investment (FDI). The new Law on Investment No. US businesses have accelerated their long-term investments in Vietnam. If you are really motivated to settle down in Vietnam , I will reveal to you the solution to apply for this investment retirement visa. Leveraging international and local experience, the Hotel Team provides specialized advice to investors, financiers, operators and developers. Vietnam will be looking to the FDI mainstays of Singapore, Japan, Hong Kong, and South Korea to consolidate their presence in the country in 2020. 1. A reference guide about investment in Vietnam 2020. In Ho Chi Minh City, apartment prices surged 27.5% in Q2 2020 from a year earlier (23.6% inflation-adjusted), to an average of US$2,582 per square metre (sq. October 11, 2018 | 11:00. When we check online on some expat forums, we find different information regarding the Vietnam retirement visa for 2020. Reports by various consultancies have cited U.S.-China trade tensions as a key driver behind an investment shift to Vietnam, which boasts one of the highest GDP growth rates in Southeast Asia alongside low inflation. Vietnam’s top 10 investment and M&A deals in 2019 – 2020 Regarding the investment deal, the most prominent deals in 2019 – 2020 are the deals between KEB Hana Bank and BIDV worth 878 million USD, Vinhomes and KKR & Temasek worth 652 million USD… TECHNICAL INFRASTRUCTURE (Transport, Power, Urban and Industrial Parks). m.), according to JLL Vietnam. Cecelia Smith-Schoenwalder June 11, … Investing in Vietnam, Engaging the world. This attraction is illustrated by the level of FDI flows into ASEAN countries, which rose to record levels from US$123 billion in 2016 to US$137 billion in 2017. In the first nine months into 2020, the balance of payments on financial account portfolio investments in Vietnam amounted to -793 million U.S. dollars. … Foreign direct investment into Vietnam rose 6.7 percent from a year earlier to USD 7.15 billion in January-May 2021. Disruptions in supply chains and slowed global trade have severely impacted the Vietnamese furniture sector amidst the COVID 19 pandemic. According to the Ministry of Planning and Investment, Vietnam attracted US$12.3 billion in additional foreign investment in the first four months of 2020, including almost US$2 billion worth of shares and capital of foreign investors, up 52.6 percent from the same period of 2019. Strategic location. South Korea last year placed first in FDI in Vietnam, with $7.92 billion – over one-fifth of the total amount pumped into the country. 10 Doing business in Vietnam 2020. As Vietnam is embarking on a new round of tax reforms, in line with the directions set in the Tax System Reform Strategy (2011-2020), there is huge potential for even greater tax incentives that will benefit foreign investors even more in the near future. Vietnam is upgrading and strongly renovating its road system. 8 | nvestment in Vietnam 2020 02 Investment in Vietnam An Overview The Investment regulations in Vietnam are regularly reviewed and revised, for the purpose of stimulating the economy and maintaining a rapid and sustainable development. China is the biggest foreign investor in Vietnam. KPMG is one of largest professional services firms in Vietnam with offices in Hanoi, Ho Chi Minh City, and Da Nang. Following the recent Resolution 50/NQ-TW of the Politburo on foreign investment policy towards 2030, Vietnam is set to continue to improve its legal framework and processes to attract more foreign investment. USD 130,000) cannot obtain resident cards for themselves or their respective dependents. “Hi everyone, I’m Peter Hoang – a local agent with 6 years of experience working in real estate. Check out the end of this article for more information. This number was more than double compared to 2019 and nearly seven-fold compared to the 2015-2020 period. Vietnamese Prime Minister Nguyen Xuan Phuc said at a recent meeting that Vietnam should attract FDI by focusing on leading companies and high-tech companies by industries. Vietnam has signed over 10 free trade agreements and ratified the European Union Vietnam Free Trade Agreement (EVFTA) in 2020. However, article 20 of Law on Investment 2020 regulates special incentives for certain projects with the investment capital reaching more than 3 trillion VND and 30 trillion VND (subject to specific conditions). Vietnam will be looking to the FDI mainstays of Singapore, Japan, Hong Kong, and South Korea to consolidate their presence in the country in 2020. These cornerstone laws establish a common regime and unified ‘company’ law for domestic and foreign investment in Vietnam. Vietnam’s share of the value of investments in Southeast Asia also increased substantially from 4 percent in 2015 to 18 percent last year, compared to Singapore’s 17 percent. 61/2020/QH14)(“Law on Investment 2020”) enters into force from January 1, 2021. Foreign direct investment, net inflows (BoP, current US$) - Vietnam. 61/2020/QH14 was passed by the National Assembly of Vietnam on June 17, 2020 and will come into effect from January 1, 2021 (“LOI 2020”). The latest figures from the Ministry of Planning and Investment (MPI) give an overview of Vietnam’s performance in the first nine months of 2020. 11 RESTRUCTURING AND EQUITISING STATE-OWNED ENTERPRISES The Vietnamese Government upholds its commitments to economic reform. Foreign investment has been one of the key drivers of socio-economic growth in Vietnam over the last 30 years. I have helped a lot of foreigners to successfully invest in large and small projects in HCMC, today I would like to share with you complete guides regarding real estate investment, buying and selling property in 2020 … Vietnam’s proximity to major cities and countries in Asia, especially … Strategically Great Location. 67/2014/QH13 (“Law on Investment 2014”), which has been in force since 2014. The PM on 6 April 2020 issued Decision No.13/2020/QD-TTg (“Decision 13”) on mechanisms for encouragement of development of solar power in Vietnam and it took effect on 22 May 2020. The Asian Development Bank estimates that Vietnam's gross domestic product grew by 6.9% in 2019 and will grow by 6.8% in 2020. Specifically, FDI in processing and manufacturing significantly decreased in the first quarter of 2020. Vietnam's property market remains fundamentally strong, buoyed by real owner-occupier demand which has been resilient despite the pandemic. New investment wave . The latest data from the Foreign Investment Agency (FIA) shows that FDI in Vietnam in 2019 reached US$38.2 billion an increase of 7.2 percent as compared to the same period in 2018. Nguyen Xuan Phuc, the current Prime Minister, wants the private sector to account for 50 per cent of Vietnam’s GDP by 2020, … Vietnam's property market remains fundamentally strong, buoyed by real owner-occupier demand which has been resilient despite the pandemic. Vietnam attracted $8.55b FDI in the first quarter. Forms of Investment Incentives and Who Are entitled to Investment Incentives Removing Public Private Partnerships (PPP) from The Law on Investment Vietnam’s continued FDI growth despite pandemic This figure does not reflect the real picture as many US investors have put money into Vietnam through investment vehicles incorporated in other countries. Thailand had 40 new registered projects, 23 projects registering for capital adjustment and 100 capital contribution and share purchases in Vietnam with total registered capital of nearly $1.8 billion last year, according to Vietnam’s Ministry of Planning and Investment. According to the infrastructure development plan to 2020, with a vision to 2030, Vietnam will have 22 highways with a total length of 5,837km. In a context of a global decline of FDI, Vietnam has managed to attract more than USD 28.5 billion of foreign investment in 2020, according to the Ministry of Planning and Investment, reported the newspaper Le Courrier du Vietnam. 2 Investing in Vietnam 2020 KPMG was established in Vietnam in 1994, at a time when Vietnam was reopening its doors to investment. II. Despite the fact that NPATMI of stocks under our coverage increased by 14.5%, the VN Index only increased by 7.7%. In the first nine months into 2020, the balance of payments on financial account portfolio investments in Vietnam amounted to -793 million U.S. dollars. During the first four months of 2020, the total value of the investment capital from US groups reached $94.08 million. EY được hiểu là một tổ chức toàn cầu bao gồm các thành viên của Ernst & Young Global Limited, hoặc là một hoặc nhiều thành viên của tổ chức toàn cầu này, trong đó mỗi thành viên là một pháp nhân riêng biệt. Market entry conditions for foreign investors clearer but potentially subject to quicker changes. 5 I Investing in Vietnam 2020 Graphic© Asia Briefing Ltd. USA Europe China ASEAN Japan Top 5 Import and Export Partners (US$ Billion) TOP 5 EXPORTS TOP 5 EXPORT PARTNER 61.35 41.55 41.41 25.21 20.41 1 Telephones 2 Computers and Components 3 Textile and Garment 4 Footwear 5 Machinery and Equipments 51.38 35.93 32.85 The increase started in May 2020 with a particularly alarming spike among girls aged 12–17 from February to March 2021. The Asian Development Bank estimates that Vietnam's gross domestic product grew by 6.9% in 2019 and will grow by 6.8% in 2020. On May 31st, 2021, Do Ventures and the Vietnam National Innovation Center (NIC) co-publish the Vietnam Innovation and Tech Investment Report 2020. Additional investment capital increased by $1.3 billion. FDI in Vietnam according to pundits. The LOI 2020 introduces, for the first time in Vietnam, a market access "negative list." Impact of COVID-19 on employees in Vietnam, May 2020 The Vietnam Business Coalition for Women’s Empowerment and Investing in Women commissioned a survey of 300 men and 300 women employees, aged from 18 to 60, from large private sector firms.