Google Shows Interests in Vietnam IT Industry

E-commerce, IT and software development have been developing incredibly fast in Vietnam over the years making it potential for IT business to be set-up.

With more than 93 mil of population which 52% having access to internet. The average Vietnamese using Google to extract information from internet is three times higher than world average. Vietnam has been rated top 10 Asian countries with fastest growth rate of internet users. Those are the reasons why Google considers Vietnam as important market for penetration, localization and business development.

Sundar Pichai, CEO of Google will arrive in Hanoi on December 22nd to talk with the start-up technology in Vietnam, showing the practical interests of Google in Vietnam. Technology so far appears to be one of the most attractive areas for foreign investment.

According to Google’s communications department in Vietnam, the initial interaction of Google CEO with Vietnamese audience including programmers, students and the media, will be held on a small scale in one hour, for the purpose of sharing experiences and inspiration. Sundar Pichai will also meet with three unidentfied individuals of Vietnam whom are supposed to be influencial in Vietnam IT industry.

Sundar Pichai joined Google since 2004, played role as orientation for the Google Toolbar and Google Chrome, the key products of Google that hundreds of millions of consumers are using.

In 2014, Sundar managed the product parts, engineering and research for all products and technology platforms of Google, including Google Search, Maps, Google Play, Advertising and solutions using cloud platforms for consumers, businesses and the education sector, which were known under the name of Google Apps and Cloud Platform. The two most important platforms in the computer industry as Android and Chrome are also within his administration.

After years of closely working with Google’s founders, Larry Page and Sergey Brin, Sundar has been accredited and formally undertaken the CEO position of Google since August 2015.

This is the first time that a senior leader of Google comes to Vietnam. In early December, Apple co-founder Steve Wozniak also came to Ho Chi Minh City to attend an event on social networks, mobile, statistical data and cloud computing in Vietnam.

In previous years, many well-known personalities of the world technology industry visited Vietnam. In 2006, Bill Gates as the Chairman of Microsoft visited Hanoi to launch the project to disseminate information technology. In May 2010, CEO of Microsoft Steve Ballmer had a talk with students of the Hanoi University of Science and Technology and Vietnam National University, focusing on new technologies such as cloud computing. In 2013, Stephen Elop, head of Nokia’s mobile segment (at that time belonged to Microsoft) also presented in Hanoi and Ho Chi Minh City to meet the domestic software 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 28 730 86 529 or email us ant@antconsult.vn

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Foreign Experts Felt “Breathe Easy” When Living in Vietnam

Vietnam ranked 21st in the economic ranking, but ranked 5th when talking about the saving ability of foreign experts.

According to the survey from HSBC. Most of foreign experts believe that Vietnam had a more comfortable life with less spending on housing costs (62%), travel (73%), clothing (68%), goods and necessities (62%), essential services like electricity, water, telephone (70%) and bills (77%).

Thus, experts are likely to save more (68%) while living in Vietnam.

More than half of the foreign experts (62%) said that in Vietnam they can afford to hire a maid and nanny, something that they cannot afford while living at home country, and can enjoy the luxury vacation (52%), compared with only 28% and 36% of global experts.

The survey from HSBC also showed that Vietnam ranked 22nd in the ranking on experience, but 2nd in the ability to make friends. More than half of the foreign experts (56%) find that they integrate quickly into life and culture of Vietnam, and the majority of foreign experts find it easy to make new friends in Vietnam (68%).

Stabilize the life in Vietnam is relatively easy, with 36% of the experts feel like home once or within six months after moving to Vietnam. Most of foreign experts also enjoy integrated into in Vietnam (61%), enjoy and cook Vietnamese foods (78%).

Vietnam ranked 31st in the ranking about family. Almost half of the foreign experts (43%) said that the cost of child care in Vietnam is less expensive than at home country, and most of foreign experts (74%) send their children to the international School.

Vietnam is developing very fast and owns a dynamic business environment. This is an attractive destination for entrepreneurs seeking start-up opportunity and new business projects.

As an emerging market, Vietnam brings foreign experts many challenges and chances to develop career. With significant attractions in terms of tourism, culture and people, Vietnam also brings foreign experts wonderful experiences along with ease of integration and stabilizes the life in Vietnam.

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 28 730 86 529 or email us ant@antconsult.vn

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How Financial Technologies (Fintech) Market Evolves in Vietnam?

Fintech as financial technology is innovative ways of technology in design and delivery of financial services in intermediary payment, crowdfunding, peer to peer lending, blockchain, big data, etc which have been happening in Vietnam over the last several years. It is important for the fintech companies to research and understand the Vietnam market from different perspective to have a proper market entry plan into Vietnam, taking advantage of habit of using smart phone, internet of young Vietnamese.

Changes in fintech have greatly contributed to access of financial service decrease transfer fees, enhance on clearance and simple, more convenient and effective products, control effectively expenses and incomes.

Understanding the benefits of fintech, since 2017, the Governor of the State Bank of Vietnam (SBV) established a Steering Committee on Financial Technology of the SBV, advising the Governor on solutions to improve the ecosystem, including legal framework to facilitate the development of fintech businesses in Vietnam, in line with the Government’s guidelines and orientations.

From practical perspective, fintech companies operating in Vietnam have to meet the legal requirements upon establishment license, enterprise registration certificate, service plan and obtain approval and permits. In addition, charter capital, human resources, facilities, technical infrastructure, IT system need to be considered when operating the financial technology to ensure the security for customers’ information and the safety of the whole system.

In the technology boom with the Industrial Resolution 4.0, electronic payment methods have become a popular trend all over the world. In Vietnam, this market is not really grown as much as other countries, but it is considered to be very potential.

The fintech sector in Vietnam is relatively new despite the intermediary payment companies’ appearance was from 2008. There are up to 90% in payments performed in cash in Vietnam. Concerns of applying financial technology in Vietnam includes business risk, network risk and compliance risk from stakeholders. Along with the systemic risk, operating risk increases with the scale of system expansion. The entry of fintech companies into banking sector adds to the complexity of the system, as most new fintech businesses lack of experience in information technology.

Looking at positive sign, Vietnam is currently considered as a market space to develop fintech products that meet the demand. The State Bank of Vietnam shall take many actions to support fintech companies to meet customers’ increasingly diverse needs, but it is important to stay complied with the current legal frameworks on financial technology.

Consultants and lawyers at ANT Consulting have assisted a number of investors whom are interested in fintech for a proper market entry.

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 28 730 86 529 or email us ant@antconsult.vn

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Over 4 Months, 8 Billion USD FDI Capital Poured into Vietnam

According to the Foreign Investment Department – Ministry of Planning and Investment, in the first 4 months of 2018, total registered foreign investment capital in Vietnam reached 8.06 billion USD, equaling 76.1% over the same period in 2017. It shows that Vietnam still an attractive destination for foreign investors to invest in Vietnam.

Overview of FDI in 4 months showed that 883 new projects were granted investment certificates, with a total registered capital of 3.55 billion USD, equaling 76.1% over the same period in 2017. Besides, 303 projects registered to adjust investment capital, with total registered capital increase of 2.24 billion USD, equaling 51.5% over the same period in 2017.

In addition, in the first 4 months of 2018, the country has 1,863 capital contribution turns, purchasing shares of foreign investors, with a total capital contribution of 2.26 billion USD, increase by 67% over the same period in 2017. Among this, there are 1,087 turns of capital contribution and purchase shares to increase the chartered capital of the company, with the capital contribution value of 1.56 billion USD and 776 turns of capital contribution to purchase share of foreign investors, in which foreign investors purchase domestic capital without increasing chartered capital, with a total capital contribution value of 703.5 million USD.

According to the Foreign Investment Department, while new registered FDI capital is still declining, the disbursed FDI capital continued to be positive. Up to April 20th 2018, it is estimated that FDI projects have disbursed 5.1 billion USD, increase by 6.3% over the same period in 2017.

Also, according to the Foreign Investment Department, since the beginning of 2018, foreign investors have invested in 17 sectors and industries. In particular, the manufacturing and processing sector attracted the most attention of foreign investors, with a total registered capital of 4.52 billion USD, accounting for 56.1% of total registered investment capital.

The real estate business ranks second, with total investment capital of 807.5 million USD, accounting for 10% of total registered capital. The third is wholesale and retail sector, with a total registered capital of 779 million USD, accounting for 9.7% of the total registered capital.

In terms of investment partners, 82 countries and territories have investment projects in Vietnam in the past 4 months. In which, Korea ranks first, with a total investment of 2.32 billion USD, accounting for 28.7% of total investment capital. Japan ranks second with total registered capital of approximately 1.29 billion USD, accounting for 16% of total investment capital. Singapore ranks third with a total registered investment of 808 million USD, accounting for 10% of total investment capital.

Regarding provinces, Ho Chi Minh City is attracting the most foreign investment, with a total registered capital of 1.92 billion USD, accounting for 23.8% of total investment capital. Hai Phong ranks second with a total registered capital of 1.03 billion USD, accounting for 12.8% of total investment capital. Hanoi ranks third with a total registered capital of 746 million USD, accounting for 9.25% of total investment capital.

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 28 730 86 529 or email us ant@antconsult.vn

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