Vietnam Market Research

corporate research in Vietnam

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.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Private Hospital Projects Attract Foreign Investment

set-up business in Vietnam

After many domestic investors failed to invest in the construction of private hospital, from 2014 until now, especially in the first months of 2016, there were many foreign investors interested in this area.

Recently, a US delegation composed of more than 40 representatives from US leading hospitals, pharmaceutical companies, medical equipment companies, research institutions and medical training institutions came to offer Ho Chi Minh City (HCMC) leaders, as well as with the 175 Military Hospital to join hands and develop the private health sector under the health socialization policy of HCMC till 2020.

According to the chairman and founder of the worldwide health service network company, they want to invest in Vietnam medical sector. If so, in addition to investment in infrastructure and equipment in the public – private cooperation model, investors also need to invest in manpower training and hospital management model to operate more efficiently.

According to the Director of the HCMC Health Department, the city is having a lot of large projects that need the cooperation of both domestic and foreign investors such as the Health Complex in Tan Kien, Binh Chanh District, with many projects such as the City Children’s Hospital, Hospital of Otolaryngology campus 2, Hematology and Blood Transfusion Hospital, Oncology Hospital, Pham Ngoc Thach University of Medical campus 2…

The Government of Vietnam is conducting the socialization schedule in the medical field. In fact, the total health expenditures of 93 million people in Vietnam now accounts for 5.8% of GDP, the highest in ASEAN, which is said to become the magnet for investors in this market.

In 2016, many foreign investors such as Bumrungrad Hospital Corporation (Thailand) and Lippo Group (Indonesia) have expressed their intention to develop hospital chain in Vietnam. This is considered a good time to invest in Vietnam health sector.

In a recent meeting with leaders of Vietnam Government, Temasek Corporation (Singapore) said that in the coming time, this corporation wish to promote investment activities in Vietnam, in which they will mainly invest in health sector by building private hospitals.

Earlier, in January 2014, Shangrila Corporation of Malaysia has invested to build Thanh Do Hospital in Binh Tan district, HCMC. The hospital has 320 beds, 21 clinical and subclinical specialties such as obstetrics and gynecology, pediatrics, surgery, cardiology, otolaryngology, ophthalmology, urology, cancer, hepatobiliary, digestion… Until June 2015, the hospital has announced to change their name and logo into City International Hospital (CIH).

At the beginning of 2016, the investors in the health sector continues to surprise when VOF Investment Fund (managed by VinaCapital) announced to takeover 75% stake in Thai Hoa International Hospital in Dong Thap province. The amount of money that VOF invested here is about 10 million USD.

According VOF, in the coming time, the Fund will continue to seek investment opportunities in the healthcare sector, including investment opportunities in equitized public hospitals if they feel attractive enough.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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M&A Vietnam – “Hot” Investment Channel

M&A Opportunities in Vietnam

In recent years, foreign investors spent approximately 3 billion USD to buy shares in more than 3,000 enterprises in Vietnam, in which most of them purchased over 50% of the shares. It indicates that investment trends through the model of merger and acquisition (M&A) are booming strongly in the market.

According to the report from the Foreign Investment Department under the Ministry of Planning and Investment, from July 1st 2015 to July 1st 2016, there were 3,141 companies in Vietnam are acquired by foreign investors in the form of buying shares. The total value of those deals is 2,948 billion USD. This is the first time the Foreign Investment Department showed the statistics on foreign investment flows into Vietnam through M&A activities. It shows that the trend of investment into Vietnam through M&A is increasing greatly.

As reported by the IMAA, a foreign research institute on M&A, the total value of M&A in Vietnam in 2015 reached 4.3 billion USD, 40% higher than in 2014 and surpassing the record level of 4.2 billion USD in 2012. It is expected that the value of M&A deals in Vietnam in 2016 is likely to break the record of 2015 and reached 6 billion USD.

Many analysts are predicting that the food, logistics, retail and real estate industries will still be targeted by foreign investors. The main reason is that the potential of Vietnamese consumers is growing due to young population and growing economy.

Among more than 3,000 M&A deals that are statistically by Foreign Investment Department, there were 1,894 deals valued at 1.8 billion USD that are invested by foreign investors to hold dominant share of over 50% . It means more than half of M&A deals in the past year are made with long-term investment objectives.

There has been more active involvement of the Private Equity fund (PE). Previously, if the PE funds often take part in the purchase of shares which is not dominant, but now, the PE fund is ready to invest at a higher percentage to increase profit and reduce competition. In addition, the increase in ownership percentage will also help to increase the PE funds’ intervention in business activities of enterprises to create surplus value.

When the inflow of foreign investment into Vietnam through M&A increases, it will create opportunities for domestic enterprises to mobilize capital, improve enterprise management skills and competitiveness. One of the examples is the case that Vietnam Airlines sold 8.8% of shares to ANA Holding, the largest airline corporation in Japan.

In fact, many other businesses also consider M&A as an effective channel for capital mobilization. Therefore, after the Vietnam Government allowed to increase the percentage of capital held by foreign investors at the company listing on the stock market to 100%, many companies have decided to open “room” to welcome this new capital flows. Many examples are Hoang Quan Real Estate Company, Thu Duc Housing, An Phat Plastic and TNG Garment. Even Vinamilk, one of the most successful dairy enterprises in Vietnam, also have to think about loosening “room” to 100% to attract foreign investment through M&A activities.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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Danang Resort Real Estate Is Growing Well

Energy market in Vietnam

Savills Vietnam has just published a report updating the situation of Danang real estate market in the first half of 2016. Accordingly, the segment of hotel, resort and villa continues to be exciting with the launch of many new projects as well as the presence of many famous brands in the world.

Specifically, according to Savills Vietnam, in the first half of 2016, the number of tourists coming to Da Nang has increased by 28% year on year, while domestic passenger traffic increased by 4% year on year.

Thanks to the flourishing of the tourism activity, only in the second quarter of 2016, the total number of 3 – 5 stars hotel in Danang increased by 4% quarter on quarter and 15% year on year. The average occupancy rate has also increased by 2% compared to the first quarter of 2016. The average room rate has increased by 6% over the same period in 2015.

Place these datas in the context of the tourism industry of some central provinces (from Ha Tinh to Thua Thien Hue), which are suffering heavy losses due to the environmental disaster caused by Formosa in the first months of 2016, it is clear that the attraction of Danang tourism is very good.

Also according to Savills, in the second half of 2016, 3 new projects in the hotel segment, which are expected to enter the market, will continue to provide about 1,320 rooms; including Crowne Plaza phase 2, Hilton Danang Hotel and Four Points under Sheraton. Since the third quarter of 2016 to 2018, it is expected to have 35 new projects entering the market.

For the resort villa segment, Danang is a pioneer in high-end coastal real estate segment and second (after Nha Trang) in total supply with 1,199 villas and 3,367 apartments. The surveys indicate that more than 80% of buyers coming from Hanoi, being attracted by diverse portfolio of products, complete infrastructure, tourism prospects, attractive sales policy as well as an image of Danang as a green, young and dynamic city.

We have to mention the successful projects such as Bana Hill, Ocean Villas, Hyatt Regency, Furama, Intercontinetal and Azura. Moreover, there are large-scale future projects that are Soleil Danang, Coco Bay, Da Phuoc, Han Riverside, Ariyana, Central Coast, Vinpearl Han River and Ocean Suites & Estates. The market is expecting a large supply of coastal apartments and villas.

According to Savills Vietnam, Danang provides investors benefits from the complete development of infrastructure and urban planning. While the northwest coastal areas have the advantages of natural landscapes to develop eco-tourism, the urban areas are developing towards becoming a center of trade, finance and education. In addition, the eastern coastal areas are marked for tourism and hotel industries; the southern of Danang is expected to develop tourism and a large urban area.

With the modified Real Estate Business Law, Housing Law and expanding the conditions for foreigners to own houses in Vietnam, the real estate market of Danang will certainly become more attractive and with sustainable development in the future.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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