Da Nang: Granting Investment Certificates for 14 FDI Projects in The First Month of 2020

  In the first month of 2020, Da Nang granted dozens of economic projects, including 14 foreign direct investment (FDI) projects of foreign investors coming to set up company in Da Nang, with a total capital of 1,686 million USD.

The registered projects operate mainly in the fields of food service, information technology and foreign language training.

Accumulated to December 2019, there were 331 projects with a total investment of 104,707 billion VND. In the past 2019, despite removing many obstacles, Da Nang's investment attraction has prospered. According to Department of Planning and Investment of Da Nang, from January 1^st to December 15^th 2019, FDI attraction reached 690.76 million USD. In which, there were 132 new projects, with total registered investment capital of 438.042 million USD; 16 projects increased capital with an additional capital of 117.38 million USD; 210 turns of foreign investors contributed capital with the value of 135.334 million USD; granted investment policy decisions for 9 projects with a total investment of over 8,829 billion VND.

Recently, in order to "cool off" traffic congestion in the inner city, Da Nang has spent hundreds of billion VND to renovate urban areas, build concentrated parking lots and renovate intersections. ...

In 2020, the city will continue to promote and implement key and motivational transport projects such as Lien Chieu port, relocate railway station, adjust the city's general plan, build T3 terminal - Da Nang international airport, the project to improve transport infrastructure borrowed from OFID Fund, the western ring road 2, North-West axis I, the consolidation road along both sides of Nam Hai Van bypass road, upgrading DT601 road... In addition, the city will study to promote and deploy urban railway connecting Da Nang with Hoi An city (Quang Nam province); continue to invest in developing public transport, compatible among types of transport in urban areas.

The investment in developing transport infrastructure and improving intersections will not only reduces traffic congestion but also promotes economic development.

Promote Vietnam-Canada investment under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

  Within the framework of CPTPP, Vietnam and Canada organized a "Business in Vietnam" Workshop organized by the City of Toronto and the Canada-Vietnam Trade Council in Toronto, Canada to promote investors to invest in Vietnam and set up company and factory.

Through the workshop, the participants discussed the topics "Looking back on a year of implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and opportunities in Vietnam" and "sharing business experience in Vietnam”. The parties assessed the investment opportunities in the field of aviation, information technology, telecommunications, agricultural products and services in Vietnam by Canadian investors.

The Export Development Canada Agency (EDC) representative affirmed that with the favorable demographics and the growing in middle class, the Vietnam economy brings many opportunities for Canadian businesses. Besides, before entering the market in Vietnam, enterprises should prepare to invest time and resources to build sustainable relationships in the local and recommend that Canadian exporters should choose a local representative to import/distribute their products.

The agencies like EDC and TCS (trade support agencies, under the Department of Global Affairs, which has than 1,000 Canadian trade experts) could play an important role in assisting businesses with go to the new market during the term of business. In 2019, Vietnam continues to be Canada's largest trading partner in Southeast Asia, with two-way trade turnover estimated at CAD 7.8 billion (USD 5.98 billion).

Participants mentioned the potential of cooperation between Vietnam and Canada in the field of finance, in the context of the value of financial services import into Vietnam reaching 523 million USD in 2018. Vietnam's investment in transport infrastructure - an area where Canada has many strengths - is expected to increase to USD 11 billion by 2020 and USD 17 billion by 2025. This is considered to be “expected land” that businesses of the two countries should promote exploitation.

Representative of Canada-Vietnam Trade Council opined that this seminar attracted the attention from the Canadian Government, the provincial Government of Ontario and especially Canadian businesses because they received many opportunities in Vietnam, a country with a stable economy and strong growth. As part of a cooperation agreement between Toronto and Ho Chi Minh City, the Canada-Vietnam Trade Council in collaboration with the Toronto city is planning a business trip to explore the market of Ho Chi Minh City to facilitate connecting Toronto businesses to access Vietnam market, set up company in Vietnam.

The participants expressed their desire to further promote investment opportunities from both countries. Thereby, it is hoped that in 2020, there will be more Canadian investors investing in Vietnam, which will help the parties improve the effectiveness of long-term cooperation in the future.

Why should you invest in Da Nang High-Tech Park?

  Da Nang Hi-tech Park is the only high-tech park in the Central and Highlands of Vietnam. The Da Nang high-tech Park has gradually attracted foreign investors to invest and set up company, factory in Da Nang, especially in the area of high-tech because of its advantages in location, environment, government policy, and local resources.

In terms of geographical location, the High-Tech Park is planned in Da Nang, a key economic region of the Central and Highlands region, where there is a modern, synchronized technical infrastructure system, and a fiber optic cable station on SE- ME-WE that are three connects telecommunication lines with international and human resource training system is abundant and diverse. In addition, the High-Tech Park has a convenient location on the air route to Da Nang International Airport - one of Vietnam's international airports. About waterways, Da Nang is a coastal city of Vietnam, with large seaport systems such as Tien Sa and Lien Chieu ports to help trade goods with many countries in the region and around the world. In addition, Da Nang High-Tech Park is located on the arterial traffic route of Vietnam, convenient for connecting with surrounding industrial parks and urban areas.

In addition, the High-Tech Park is located in a rich natural landscape area, clean natural environment, close to resorts and eco-tourism such as Da Nang, this is the ideal environment for the formation of an eco-hi-tech urban area, giving investors, scientists and workers a convenient and comfortable living and working environment.

In addition, the Hi-Tech Park is located in Da Nang City, which has a strategic location, transparent and open investment environment, modern infrastructure, friendly living environment and human resources is abundant, the political stability, these are considered to be prerequisites for investors to be able to invest in the safely and effectively way.

Moreover, in recent years, Da Nang has continuously had effective policies to attract investment, attract FDI in the high-tech sector towards building a smart city, so the case many investors are investing in the Hi-Tech Park will help the city accomplish its development goals soon. Therefore, Da Nang always has the highest preferential policy in the country in attracting investment in high-tech parks and low investment costs, in addition, Da Nang's management agencies have always implemented reforms the administrative procedure, shorten time for investors when investing in here.

With the advantages of geographical location as well as supporting policies, attracting investment, Da Nang High-Tech Park is gradually becoming an investment destination of investors in the future, for setting up business in Vietnam.

What information matters in M&A transaction?

  Nowadays, in the field of business and investment, the term “Merger and Acquisition” (M&A) is a very common term. This is considered as one of the global investment methods, and is a business and development strategy applied by many businesses.  In conducting the M&A, beside information provided by the target company, other information are also important before the buyer stepping into negotiation with the seller of the target company.

Mergers and acquisitions are usually conducted through three main stages, that is: reviewing and evaluating target businesses, valuation and price negotiation, completing legal procedures. When participating in a business merger and acquisition, investor or buyer need to ensure high accuracy of inside information of the target business. It is extremely important for investor or buyer in determining the value of the deal as well as helping investors make decisions about whether to participate in the acquisition and merger of this business or not. The tasks to consider and evaluate the target business include searching information and evaluating the information on shareholders, investors, influential individuals, and further information i.e. financial statements, accounts receivable and payables, staffs, customers, business locations, facilities status, competitors, business registrations, licenses and business area divisions, company image, and potential disputes, or criminal records of relevant people of the target company.

In fact, not every country has specific regulations governing mergers and acquisitions, as does Vietnam, although it is mentioned in various legislations.  In many cases, the investors have to search information, and evaluate the situation themselves to learn various aspects of the business beside the information given by the target company for instance finding general information about a business, information about the legal representative, information about business manager or capital contributors of that business as well as other related information. In particular, the buyer might be interested to know if the owner or shareholders have other business similar to the target business or if any of those have criminal records.  Further, the buyer might wish to know the history or the target company with registration and changes of registration in the last three years.  Other information about business lines, subsidiary, child companies, dependent companies, charter capital, founding shareholders, seal specimen could also be of importance business intelligence.  Based on the information obtained, the buyer is able to reach some information conclusion about the business and the target beside official information provided by the target itself.

In conclusion, all relevant information about the business and people matters in M&A transaction, being corporate information or influential investors or stakeholders are important that the investor or buyer should pay attention to every details, and should attempt to search and evaluate such information such as part of their effort to evaluate market entry risks in investment through intelligence market entry risks analysis in Vietnam.

Vietnam Market Research

  Market research is an important operation. If the market research is well done, it provides accurate information to help marketers make an appropriate strategy and then, bring high efficiency in business. In other words, if the result of market research is inaccurate information and does not correctly reflect the actual market situation, marketing activities will be inefficient.

Companies would fail if underestimating the importance of market research before entering a new market.

Therefore, market research activity is so important for whomever needing success. Namely, the market research is considered an active approach to enter into the market. The market research also helps you understand the latest development in the target market, thereby making marketing decisions quickly. The international business environment is quite volatile, that‘s why you need a proactive approach like that and it is really your competitive advantage.

Through the market research, you can form the idea of developing a new product and choose the correct strategy for that product in each specific market. Through research, you also do not have to waste money and effort for the false hope, especially when you export the products to oversea for the first time. On the other hand, it should be noted that although the market research does not make sure success in business, it will help you avoid many wrong decisions.

Market research service can:

• Help find the biggest market for your products, the fastest growing market, trends and prospects of market, conditions, business practices and opportunities for your product on the market.
• Allow to make efforts effectively in a field or a certain range. After that, you can set the priority for a specific target market and plan for the future market.
• Help understand the competitors, including strengths and weaknesses, mistakes and their causes of success.
• Help find ideas to develop new products.
• Helps strengthen business relationships with partners.

Da Nang City to carry out investment promotion in 2022 in the direction of innovation, initiative, focus, and prioritize on strategic markets

  In 2022, Da Nang selected the theme as "Year of safe and flexible adaptation, effective disease control and socio-economic recovery and development". Accordingly, the city has built the Investment Promotion Program in 2022 in the direction of innovation, initiative, focus, prioritizing strategic markets for key fields (high technology, information technology, high-quality service, etc.) to attract foreign investors to invest and set up company in Vietnam in genenal and Da Nang in particular.

To achieve this goal, Da Nang city has promoted research, assessed potential markets and investment partners, built images, promoted, introduced the investment environment, potential policies, and opportunities for investment association and connection. Along with that, the city has supported and guided to create favorable conditions for investment activities of international investors, built a list of investment attraction projects, publications and documents for investment promotion, etc. in order to attract foreign investors into Vietnam to establish company for doing business.

Accordingly, in 2022, Da Nang will study and implement the project "Building Da Nang into a regional financial center"; Project "Development of industry and services related to yachts"; Project "Promoting investment attraction to Da Nang city in the period of 2021 - 2025, vision to 2030"; The overall project of economic diplomacy in Da Nang city in the period of 2021 - 2025; Project on implementation of research - development, incubation - start-up, innovation and training of high-quality human resources... At the same time, Da Nang City implement investment procedures and call for businesses to invest in key projects. Access and connect with venture capital funds, start-up experts, large-scale technology enterprises, innovative start-up infrastructure investors, innovative start-ups. The City is focusing on promoting key investment projects, promoting projects in high-tech zones, concentrated IT zones, etc.

Besides, Da Nang City is organizing investment promotion conferences in the form of face-to-face and online to key markets such as the US, Korea, Japan, Europe, Taiwan, Singapore...; organize connection activities, promote private investment, event Route Asia Development Forum 2022 is held in Da Nang city.

The city will also increase proactive contact with high-level contacts with large corporations (belonging to Forbes 500), businesses in developed countries (G7, G8, OECD...), business associations, and big banks of other countries. The country is having the policy to shift investment capital to focus on calling for investment in Da Nang. Da Nang city is implementing the promotion of ODA projects, projects in the form of public-private partnership (PPP) ...

In Da Nang Hi-Tech Park and Industrial Parks, in order to effectively implement the 2022 Investment Promotion Program of the City People's Committee, the Management Board of Da Nang High-Tech Park and Industrial Parks has built and issued implementing investment promotion programs in the direction of innovation, prioritizing strategic markets for key fields such as high technology, information technology, high-quality services....

Through these activities, Da Nang City hopes that in 2022, many international investors will make investments in Da Nang to set up business, in order to create a vibrant and effective investment environment, taking advantage of the strengths, investment incentives from the city, thereby bringing high profits for their investment activities.

Risk of disputes from transactions through social networks in Vietnam

  Social networks have become popular and become an indispensable part of modern life. Along with the development of the internet, social networking applications are also used by many people as a transaction method to exchange and conclude contracts or business transaction with each other.   When a dispute occurs, it is difficult for the parties to prove the transactions and the parties involved. Hence, it is important to conduct background check on the business counterparts from financial, operational aspects instead of blind belief in the exaggerated advertising or discounted offer from them.

In fact, many individuals and organizations have reported that their partners have denied purchase and sale transactions through social networks and caused huge damages. However, the evidence provided is only messages, icons ... stored in social networking applications that carry many meanings and are easily confused in interpretation. These are quite common electronic transaction disputes today, but there is no strict legal corridor to protect parties with legitimate interests.

The legal system has not kept up with the strong development of the internet business. As a result, it raises a number of complicated issues, beyond the control of legal regulators and creates many difficulties and challenges when business disputes occur over social networks.

Specifically, many individuals engage in commercial activities but does not have a fixed location and do not register business with any authorities.  They might advertise over the internet with buying and selling goods and services without having to be responsible for any consequences for fake products or inadequate delivery of quantity or maybe even scam.

It can be seen that the lack of business registration makes it difficult to determine the truthfulness of the transaction and the competent authorities do not know the information of individuals and organizations transacting on social networks authentication of transaction status on social networks when participating in business.

According to the law, electronic data messages are expressed in the form of electronic data exchange, email and other similar forms according to the provisions of the law on electronic transactions. Electronic is also a source of evidence used as a basis to determine the validity of a transaction. Therefore, it can be seen that in fact transactions via social networks are also a form of electronic transactions with legal value. However, these transactions present a lot of potential risks because it is difficult to prove to the authorities when dispute arise.

Because these accounts can be easily disabled, communications can be deleted or hidden, and the name of the account holder is easy to change. Moreover, when transacting and exchanging via social networks, the parties cannot control whether the person being exchanged is an authorized person or not. The violating party will rely on the above reasons to deny all the content discussed with the partner.

Transactions through social network platform are thriving and are expected to bring value. However, in order to contribute to promoting the sustainable and safe development of this type of business, more legal regulations governing related issues are needed. In addition, in order to limit disputes and risks in these transactions, individuals and businesses need to carefully check the partner information, from authenticity, adverse media, reputation online or engage third party consulting company to verify business registration, search business shareholders information, visit office or operation site for audit, undertake background check, criminal record for protection of interest if the dispute occurs.

Nothing Can Stop Investors Coming to Vietnam

  Many foreign investors have once again affirmed the attractiveness of Vietnam as an investment destination.

It is no coincidence that the Vietnam Intensive Online Conference, recently held within the framework of Standard Chartered Bank's ASEAN-focused investment attraction series, took the theme “Vietnam - Rising star".

A survey showed that 38% of enterprises surveyed said that they would consider expanding their supply chain in Vietnam. This is the highest rate among ASEAN countries.

With strong fundamentals such as a young, dynamic and tech-savvy population, a growing domestic market, a growing middle class and an open economy, Vietnam continues to deliver attractive investment opportunities.  However, it is equally important to manage risk especially in understanding business partners through corporate intelligence investigation, background studying, adverse media search.

Many multinational corporations have been interested in establishing business investments in Vietnam in order to take advantage of the close geographical distance and the ability to connect with ASEAN to promote business activities.

According to data provided by the Japan Trade Promotion Organization (JETRO), more than 40% of the total of 3,500 Japanese enterprises surveyed said they were considering expanding operations in Vietnam, to set up company within the next three years.

A Memorandum of Understanding (MOU) has just been signed between the Foreign Investment Agency (Ministry of Planning and Investment) and JETRO. The agreement was awarded in the witness of Vietnam Prime Minister on September 7^th 2020, confirming the great efforts of both the Foreign Investment Agency and JETRO in implementing measures to promote Japanese investment in Vietnam.

Risk Management Necessity in Vietnam?

  As Vietnam further integrates into the world business, more investors are eyeing Vietnam for investment. As part of investment due diligence, risk management are always well considered before foreign investors decide to do business with Vietnam partners.

In any parts of the world including Vietnam, risk is an inevitable factor in business operation activities; higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business in order to make profit and create value to shareholders in import export transaction, investment, or merger and acquisition activities in Vietnam.

However, in our daily consulting practice, we have seen a number of businesses whom do not manage risk effectively and furthermore not fully understand about the risks that they are facing.

Typical risks in developing countries like Vietnam are political risks, policy risks, regulations risks, credit risks, bribery and corruptions, and organized crimes.

On daily transaction in trading, according to Vietnam Ministry of Industry and Trade, there are situations a number of corporate scams between Vietnam and foreign enterprises are reported. In particular, foreign companies sell goods or provide services to partners in Vietnam and in return the Vietnam partner fail to pay.

On a larger scale in FDI through business formation or M&A origination and execution, businesses that do not improve the risk management process will have to face with a lot of different types of risks: serious financial losses, adversely affecting cash flows and the value of shares, decreasing prestige with customers, employees and investors.

Many business leaders often put heavy emphasis on the business activity, profit, and revenues instead of concentrating more on risk management especially understanding business partners through corporate intelligence investigation, background studying, adverse media search through professional consultants in Vietnam whom understand languages, cultures, legal environment and business practices. Further searches could help foreign investors to understand the company itself, owners, shareholders, members of board of directors of partner companies whom make daily decisions of the business.

In the period that global crisis has been predicted that almost bottom out and start to show signs of recovery, although the recovery process can occur with different speed and characteristics depending on sector and location of the business, the fully preparation of business in all aspects including process and risk management strategy could helps business not falling into the passive and also have more possibilities to take advantage of growth opportunities after the recession.

Recently in Vietnam with the impact of high inflation rate and economic recession caused by the global financial crisis, enterprises are increasingly concern about risk management activities. Many experts believe that an effective and well organized risk management system will help businesses withstand and overcome fluctuations.

Tips to reduce risks when purchasing medical supplies from Vietnam

  As the Covid 19 pandemic is still occurring in many countries around the world, a large number of medical equipment or accessories being Personal Protective Equipment (PPE) such as N95 respirator masks, surgical masks and other items essential to protecting doctors, nurses, others on the front lines of the pandemic are required to be purchased and sold from many different countries to meet the demand for treatment disease globally.

Vietnam is a country that has many enterprises producing medical supplies such as medical gloves, medical masks, which are the focal points supplying goods to many businesses around the world. However, buying and selling quickly, and without researching their partners has caused many businesses to face many risks when purchasing of medical supplies in Vietnam. Here are some tips for buying and selling medical equipment in Vietnam safely and effectively.

Searching for a partner is the necessary work. Currently, to meet the increasing demand for buying and selling medical supplies, many companies switch to the medical supplies business as the broker to take opportunities in this field. It will help the buyer finding a selling partner more convenient because more brokers reach out to buyers.  However, there are many sellers who do not have a valid business registration or are not able to supply the goods, however, they still approach the buyer and guarantee to deliver the goods on request. Many buyers have been deceived by businesses that are not capable of doing business with the deposits, failure to deliver goods, deliver the wrong quality, quantity, ... Therefore, searching for the seller carefully, and undertaking due diligence on the seller with the help of local risk management company will help buyers to avoid the risks of buying the wrong goods.

In terms of product prices, when buying medical supplies from a third party (not directly from the manufacturer), the price of the equipment could increase many times compared to the price offered by the manufacturer.  Sometimes, the brokers could not fix the price because their offering price depend on the buying price they receive from manufacturers or traders while the supply of goods are not guaranteed.  This could create problems for the buyer if the delivery and price have been committed to final clients oversea with hefty fine clauses if breaching the contract.

There are potential medical supplies without origin, or quality assurance, being purchased and sold to the market, therefore the buyer needs to ensure the seller provides qualified goods as their request.

When trading with an unqualified seller, there is a risk that the seller cannot meet the required quantity of the goods, especially in the case of the sellers are not the manufacturer. Because the number of goods produced could not meet the demand, in fact, many manufacturing companies in Vietnam have stopped accepting orders for some time from many customers.  However, many the third-party continue to receive orders from buyers, resulting in an inability to deliver on time or inability to meet the required quantity. When having a request for delivery from the buyer, these sellers will not answer the buyer's questions, refuse to receive phone calls, emails, ... leading to the buyer being inaccessible to the seller at this time which affects the business of the buyer.

Especially in the difficult situation when limited traveling between countries are allowed due to the pandemic, the discussion via electronic means such as Email or social network platforms, ... will help the parties can discuss in an easy way. However, discussion or exchange of information via electronic means, will meet potentially risk when the buyer exchange with another third party (who may not be representative of the seller). In many cases, the parties exchange messages via regular messaging apps, which cannot determine if the subject exchanging is exactly the seller or not. In the event of a dispute when buying or selling goods, this proof is that the message which cannot determine the sender shall not be enough to prove the wrongdoings. Therefore, when exchanging communication, the parties should take precaution steps to verify the other parties ensuring the exchange is carried out properly with the authorized person.

In addition, to ensure the rights in the purchase and sale of medical supplies, signing the sale and purchase contracts is extremely important.  The contracts should be in written and duly signed and stamped by parties.  Trusting in business should be accompanied with legal documents for sustainable business.   When performing the contract in accordance with the regulations of the law will help the parties to limit risks and this is considered as specific legal evidence that forces the parties to comply with regulations and ensure their rights when buying and selling goods, especially international sale goods.

Finally, with significant transaction, the buyer could minimize risks through the helps of local risk management company in Vietnam to undertake due diligence on the seller’s business registration certificate, business location, real operation at site, adverse media check for past wrongdoings and general personal or corporate reputation.

Vietnam and Denmark promote clean energy development

  Recently, the Ministry of Industry and Trade of Vietnam has cooperated with Denmark on clean energy development. Denmark has contributed to provide an important foundation for economical and efficient use of energy in Vietnam.

Another important cooperation content of the Vietnam - Denmark Energy Partnership Cooperation Program is the biennial publication of the Vietnam Energy Outlook Report. This report emphasizes energy efficiency as a cost-effective tool for Vietnam's green transition to 2030 and 2050 and recommends investment in energy-saving technologies because of this technology will be more cost effective due to the significant savings in fuel costs. Economical and efficient use of energy has many benefits, including major benefits to society such as reducing environmental pollution and enhancing national energy security.

Vietnam is a country with the potential to develop clean energy such as wind energy, solar energy, tidal energy, ... with the advantage of being a country adjacent to the sea, near the equator, with high hours of sunshine in a year, these are enough for Vietnam to become a country with a sustainable clean energy base. However, due to many objective factors, Vietnam has not been able to make good use of this resource. The limitation in science, technology, engineering and finance makes the clean energy sector in Vietnam not really focused on development.

Denmark is a European country with many years of experience in clean energy development. After many years of researching the clean energy market in Vietnam, many Danish investors have found the benefit and the ability to develop this field. With the goal of developing clean energy, providing energy efficient and safe platforms. Meanwhile, Denmark has many companies in wind and solar power and is very interested in market entry into Vietnam market through setting up company, or manufacturing in Vietnam.

In addition, Danish investors also promote development, investment cooperation, building smart city in Vietnam, apply science and technology applications and clean energy to build and develop a sustainable way. Therefore, this is an opportunity for Vietnam to attract energy investment from Denmark and also an opportunity for Danish investors to invest in Vietnam. In the coming time, Vietnam hopes to have more investors from Denmark implementing energy development projects in Vietnam so that they can reap high returns for both investors and Vietnam in the future.

How to minimize risks buying from Vietnam sellers in the new era?

  Currently, the purchase and sale of international goods are very popular from Vietnam and around the world, taking the advantage of Vietnam the signing a number of Free Trade Agreements (FTAs), and the application of technology 4.0 in the business helping the international transaction of goods just got easier.  However there are many risks involved in the meantime for international buyer purchasing goods from Vietnam sellers if due diligence on the seller, whether being corporates or individuals are not under taken.

In the international goods sale and purchase using technology, the best benefits are that, the parties in the transaction do not need to meet, negotiate, and check goods before buying. All of the international goods purchase and sale activities are done via the internet means such as Website, Email, Social media,... which help parties save time and costs when doing the purchase. However, the use of digital technology in the goods sale and purchase transactions still has many hidden risks that the buyer cannot foresee.

Specifically, in the process of discussion of the purchase and sale of international goods, there are many cases where the Vietnam seller does not provide the expected quantity of goods or the goods are meet the minimum quality requested by the buyer, but the seller still signs the contract and require the buyer make the deposit/payment before delivery.  Some time, all the transactions are conducted via social media and there is no contract at all.  Unless the transaction is small, it is always suggested a proper contract to be properly signed with the envision of potential disputes might arise.

Further, there might be fraudulent activities involved taking advantage of the urgent needs of buyers whom skip the process of verifying the business partner for business existence, reputation, financial capability, bad history, and potential fraudulent acts.  In some cases, the seller could go further to forge legal documents, quality certificates, ... to create confidence for the buyer in performing the contract. Some lure buyers by creating fake websites, fake contracts, fake phone numbers, ...using alias names to avoid being traced when taking fraudulent activities.

With significant transaction, the buyer could minimize risks through the helps of local partner on the ground to check the seller's legal documents including corporate documents to be able to trace back the and if the seller does not perform, at least they could be located for legal action.  The buyer could send people to physically check the seller's office, factory to ensure that the seller operates at the registered address.   Before making a deposit, the buyer could check if the beneficiary's account matches the seller's registered account.  The more information about the partner, the better.  The buyer needs to thoroughly check the information that their partners provide including phone numbers, emails, bank accounts, business registration certificate, and other legal documents ... If involved significant transactions, more emphasis on risk management especially understanding business partners through corporate intelligence investigation, background studying adverse media search on company, owners, shareholders, business managers through professional background check consultants in Vietnam whom understand languages, cultures, legal environment and business practices could help.

Singaporean Investors Increase Capital in Finance and Technology

  In addition to the real estate sector, Vietnam has recently been considered a key market for many financial and technology enterprises from Singapore.

Investment capital flows of Singaporean businesses are flowing strongly into southern provinces to welcome opportunities when Vietnam joins many free trade agreements (FTAs).

According to a report by Ho Chi Minh City Statistics Office, in the first 9 months of 2020, out of 111 countries and territories having investment projects in the City, businesses from Singapore contributed 813.5 million USD, accounting for 25 % of total foreign direct investment (FDI) in Ho Chi Minh City.

Broadly, according to recent statistics, out of 106 countries and territories having investment projects in Ho Chi Minh City, Singapore is ranked first with 1,100 projects with a total investment of 10.73 billion USD. Up to now, there have been many investors, large corporations of Singapore such as Keppel Land, Capital Land... having large-scale projects in Ho Chi Minh City.

In Binh Duong, from the beginning of the year up to now, Singapore businesses have invested the third largest investment capital among countries and territories investing in this locality, with a total registered capital of 198 million USD, accounting for 16% of the total investment capital.

According to the Singapore Consulate General in Ho Chi Minh City, up to now, this country has invested in Dong Nai more than 70 projects with a total registered capital of about 3.6 billion USD, ranking 4th among countries and territories investing in this province. Singapore businesses invest in Dong Nai quite successfully, so many businesses are researching and planning to continue to invest.

A month ago, when receiving the project investment certificate of SG Logistics Joint Stock Company with an investment of more than 80 million USD in Tan Phu Trung Industrial Park, the CEO of BW Group said that this was the third project of this business in Ho Chi Minh City to prepare for investment waves.

In fact, businesses from Singapore operating in the field of industrial real estate soon had projects in Binh Duong, Ho Chi Minh City, Dong Nai... and had outstanding successes.

According to experts, with the impact of FTAs ​​and the movement of capital into Vietnam, industrial real estate and logistics are the fastest growing segments recently. In particular, investors from Singapore, having an early presence in Vietnam, actively preparing many large land banks in the strongly developed industrial areas, are considered to have many advantages.

In addition to the real estate sector, Vietnam has recently been considered a key market for many financial and technology enterprises from Singapore to set up company and enter the market. According to Chairman of Bankograph Pte Limited, a Singapore's fintech company, Vietnam stands out as a leading destination for foreign investors, not only in the financial sector, but also in many other sectors.

The wave of Singapore's technology enterprises participating in investment and cooperation in Vietnam has been more strongly developed in the past two years. For example, Finaxar cooperates with Indovina Bank Vietnam to provide suitable financial support solutions for small and medium enterprises...

With the above handshakes, Vietnamese companies and financial institutions will benefit in cooperation with Singapore's fintech company. At the same time, cooperation between businesses of the two countries is expected to create an ecosystem in the fields of finance and technology.

Vietnam attracts Korean investment in research and development

  In recent times, the investment shift out of China is being carried out by many international investors. Vietnam is a country that has enough factors to receive investment shift, especially in the manufacturing sector with low-cost labor and low expenses. However, at present, Vietnam has changed its method of attracting FDI, instead of taking advantage of low expenses and low-cost labor, Vietnam now aims to take advantage of highly skilled workers and many incentives in research and development activities.

Recently, many Korean investors have plans to change production lines, invest in research and development (R&D) company in Vietnam. Previously, Korean businesses mainly invested in industries such as apparel, bags, and footwear, however, recently many Korean investors have made investments in industries such as high electronics, information technology, automotive and construction equipment, distribution and service industries.

Currently, Korea is the leading country in the list of countries investing in Vietnam. Previously, a joint venture between Korean and Vietnamese businesses proposed to the Dong Nai province government to invest and build a Vietnam-Korea Hi-Tech Park with an area of ​​300 hectares, total investment capital of 150 million USD. The project aims to attract high-tech enterprises from Korea as well as other developed countries to set up company in Dong Nai in order to create quality product values ​​in the fields that shape the industrial revolution 4.0. The project is expected to attract 2 to 3 billion USD of investment capital in about 6 - 9 years after it is put into operation.

In addition, Korean investors have also cooperated with Vietnamese partners to build a Science and Technology Industrial Park with an area of ​​900 hectares in Binh Duong. In addition, many Vietnamese investors have actively worked with high-tech manufacturing partners to promote the participation of key partners as well as prepare the first customers.

With the policy of attracting investment in high technology and in particular the Investment law 2020, there are special investment incentives for newly established investment projects (including the expansion of the establishment project), the centers for innovation, research and development centers with total investment capital of 3,000 billion VND (about USD 150 million) or more, disbursing at least 1,000 billion VND within first 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy; a national innovation center established by decision of the Prime Minister; Investment projects in sectors or trades specially given investment incentives with an investment capital of VND 30,000 billion (about USD 1.5 billion) or more, with a minimum disbursement of VND 10,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy” will be given special incentives in accordance with the provisions of corporate income tax and land law.

As the investment attraction and investment shift preparation of Korean R&D enterprises, Vietnam hopes to become an investment destination for Korean high-tech enterprises in the future to establish company.

Why should you need to research the partner before signing the contract?

  It is important to find and work with a capable and long-term partner to build confidence doing business in a safely and effectively way for all parties, and avoid potential risks. In order to be guaranteed their legitimate rights and interests, individuals and organizations conducting business need to have a clear understanding of their partner before cooperating, in order to start their business cooperation most effectively.

In cooperation with a partner lawfully established in Vietnam, individuals and enterprises could find out information that has been registered at the competent state agencies. Accordingly, information about the owner, legal representative, business lines, head office address, tax code, charter capital, founding shareholder, business registration certificate, corporate history of the last three to five years, the latest business registration information, etc. could be checked on the National business registration information system. The registered information is the official information, valuable to determine the authority, position and responsibility of organizations and individuals if there is a mistake in the operation.

In addition, to find out if an individual is an owner, manager or capital contributor of one or more enterprises in Vietnam, organizations and individuals can also check the information registered in the National business registration information system. If an individual owns, manages, or contribute capital to any business lawfully established in Vietnam within 3 years, it will be recorded. This is the information which helps the organization and individual to verify the truth of information provided by their partner.

In addition, information related to the protection of trademarks of enterprises that have been protected in Vietnam, enterprises and individuals can also be found on the website of NOIP before cooperating.

The information that has been registered at the competent authority, these are basic and public information, so businesses and individuals can search. However, in the course of operation, a number of enterprises have been carrying out illegal activities that are not recorded on the registered information. Therefore, fact checking or finding out at other sources of information for an enterprise is essential to avoid cooperating with a party who is not capable of doing business.

Many businesses and individuals neglect their partner information before signing contracts. During the implementation of the contract, these partners were not able to continue to perform the contract, leading to many negative impacts on the business of the business. In addition, there are partners that commit fraud, provide inaccurate information, in order to appropriate assets of businesses and individuals through the signing of sales contracts. This makes businesses and individuals take a lot of time and effort to reclaim lost assets, affecting their business.

Searching the information of the partners before cooperating is very essential when doing business in any case so that businesses and individuals can cooperate in a long term. Cooperation with a good partner can help businesses and individuals achieve economic benefits, save time and costs in business, thereby bringing the best profit for themselves.

Trade cooperation between Vietnam and Germany and potential future

  After 45 years of establishing diplomatic relations between Vietnam and Germany (from 1975 to 2020), Germany and Vietnam have had cooperation programs in many fields such as culture, economics, education, and health. Especially, after the Vietnam-EU Free Trade Agreement (EVFTA) came into effect, the commercial cooperation relationship between the two countries has developed.

EVFTA is an opportunity for Vietnamese businesses to expand their markets to European countries, including Germany. On the contrary, this is also an opportunity for German businesses to invest in Vietnam to set up company thanks to policies to attract and preferential investment commitments.

Germany is the world's leading technologically developed country and an integral part of the global supply chain. Germany also has many strict requirements on the quality of goods and the environmental friendliness of products, which requires Vietnam to improve production quality and use environmentally friendly products/materials. With the signing of the EVFTA, Vietnam and Germany will have more favorable conditions for technology exchange and investment, which will help trade cooperation between the two countries more developed.

Before 2014, Vietnamese goods exported to Germany were the least polluted category, including agricultural products, wood products, processed foods, beverages, garments, footwear and glassware. Since 2014, the export of machinery and equipment to Germany began to increase and became the item with the highest export turnover. After EVFTA, Vietnam will increase exports of footwear, textiles and agricultural products such as coffee, tea, pepper and rubber and will import many products related to processing, pharmaceuticals, chemicals.

In addition, in order to improve product quality to meet import criteria into Germany and Europe, Vietnam also attracts foreign investment to develop sustainably economic sectors such as pharmaceuticals and chemicals, in order to create quality products that are qualified for domestic use and import to many countries around the world.

Currently, the number of investment projects of German investors implementing in Vietnam is not high compared to other countries such as Japan, Korea, Singapore, etc. This requires Vietnam to re-examine its strengths and weaknesses in order to meet the investment needs of German investors. The implementation of EVFTA, Investment Law 2020, Enterprise Law 2020 is an opportunity for international investors, including German investors to easily access Vietnam market when expanding their investment.

With many cooperation efforts between Vietnam and Germany in recent years, Vietnam hopes that in the coming years, Vietnam will be the leading destination in investment for German investors and help improve furthermore good relationship between the two countries in the future.

Da Nang cooperates with the Netherlands in the field of high-tech agriculture

  On November 18, 2020, representatives of Da Nang city and experts, Dutch farming enterprises organize an online seminar "Promotion and cooperation of high-tech agriculture in Da Nang- Netherlands" to develop hi-tech agricultural cooperation relations between the two countries.

The Netherlands is a country with developed agriculture and high technology application in Europe and is also a country that is known to apply technologies to cope with the impacts of climate change on agriculture. Similarly, Vietnam is also an agricultural country affected by climate change, but Vietnam's agriculture has not had the conditions to apply high technology to improve the quality of agriculture.

Currently, the high-tech agriculture is a priority for Da Nang to thrive in order to meet the needs of use and export to many countries around the world.  The creation of quality and safety products is the city's top goal. At present, Da Nang is concentrating on solutions, promulgating supportive and encouraging policies to attract investment to set up company in the field of hi-tech agriculture, completing the detailed planning of 3 agricultural regions which applying high technology. Although the land reserve for agricultural production is limited, the city always gives priority to the development of hi-tech agriculture.

Not only investing in production, planning and application of high-tech science, Da Nang hopes to receive Dutch help in choosing applied technology, export standards as well as how to use the agricultural land effectively, avoid wasting resources. In addition, attracting Dutch investors with financial ability and business experience in the field of high-tech agriculture will help Da Nang learn how to manage effectively and meet demand of the city and providing food for millions of visitors to Da Nang each year. Besides, in the future, Da Nang hopes to combine high-tech agriculture and tourism to create the highest economic efficiency for the city.

With its efforts, Da Nang hopes that in the future there will be more Dutch investors investing in the city through setting up company in Da Nang, Vietnam or cooperate with local company in the field of high-tech agriculture, thereby bringing the highest economic efficiency to the investors and the city.