The interest of Swedish investors is opening the future for a new wave of investment from this country to invest in Vietnam.

Although being one of the earliest investor communities present in Vietnam, it is not until recent years that the names of enterprises from Sweden really caught the attention.

If before, when talking about Swedish investment, one could know ABB Group, a corporation established in Vietnam since 1993, which has a factory and focuses on 4 main areas which are electrical products, robotization, automatic technology and power grid. Or another case is Electrolux, Ericsson…

Now, with the rapid opening of the domestic market, the brands from Sweden have become more and more familiar. Referring to Sweden, consumers can now spot famous and familiar brands such as Skype voice and messaging software, H&M fashion brands, IKEA furniture, and Tetra Park in the industrial sector with milk and soft drinks packaging products…

And it is impossible not to mention a brand that is considered a symbol of this country, which is the luxury car brand Volvo. Only started to enter the market of imported luxury cars in Vietnam in recent years, but this brand has quickly attracted the great attention of the middle class in the country.

According to the Swedish Ambassador to Vietnam, Volvo is a symbol, or an important milestone in the promising relationship between Sweden and Vietnam. Although trade or investment turnover between the two countries is still modest, it still increases steadily, similar to the interest of Swedish enterprises for investment and production in Vietnam.

The rapid increase in brands or capital inflows from this Nordic country is even more apparent when looking at statistics.

If the third quarter of 2017, accumulated investment from Sweden into Vietnam only reached over 100 million USD, with Tetra Pak’s new factory with scale of 110 million USD, this capital doubled at the end of the year. Until now, after only one and a half years, this investment has reached 365 million USD, an increase of 3.5 times.

It can be seen that the investment picture of Sweden has changed dramatically and along with that, Vietnam is becoming more and more attractive in the eyes of this nation’s investors and businesses.

The presence of hundreds of large enterprises and leaders of the two countries, the presence of Victoria’s successor Princess, Prince Daniel, Royal Swedish representative at the Vietnam – Sweden Business Summit was held on May 7th 2019 is the clearest evidence for the potential for cooperation in investment and trade between the two countries.

The event was evaluated as a great opportunity for representatives of the top businesses and leaders of the two countries to exchange views, ideas, experiences and share best practices towards mutual benefits.

Speaking at the Conference, the Swedish Minister of Foreign Trade acknowledged there are many reasons to look for current trade and business opportunities in Vietnam, such as high economic growth, the growing middle class, the market opens through many free trade agreements, dynamic business ecosystems…

It is easy to see that Sweden’s investment has increased rapidly over the past time, but has focused heavily on the consumer sector. Therefore, with the appearance of 50 leading Swedish enterprises this time, Swedish capital will join more strongly in Vietnam in the fields of health, transportation, green production and start-up.

Vietnam is starting to embrace a new wave of investment in high-tech fields, areas of high added value and innovation.

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On 16 Jan 2017, Vietnam Prime Minister issued Decree 03/2017/ND-CP on casino including investment conditions and procedures of foreign investment in service, tourism, and entertainment with casino, including investment registration of foreign investors, business operation license eligibility, and notable three-year pilot plan that allow the Vietnamese playing in the casino.

Vietnam has allowed investment in the field of casino business and that foreign investors have been in Vietnam since 1995. But it is expected only when Vietnam law makers loosens the regulations on casino and gaming business allowing Vietnamese to come and try luck, foreign investors would be encouraged to invest in constructing real estate, entertainment projects providing services, tourism and entertainment with gaming and casino to serve the entertainment needs of the increasing population of Vietnam, and attract international tourists.

1. Vietnamese will be accepted at casino during three-year pilot

Casino will accept Vietnamese to try luck whom must be at least 18 years of age, with regular income from 10 million / month or more, and no close family ties with the casino business enterprises. Entrance tickets will be at around VND 1 mil (around USD 50) for 24 continuous hours per person or VND 25 million (around USD 1,200) per month per person.

2. Casino Operation

The casino enterprises can only provide casino in one location and such location must be separated from other business areas of entertainment.

3. Investment Registration and Business Operation License investing and operating Casino

Eligible investors wishing to invest and operate service, tourism and entertainment with casino have to make investment a minimum capital of USD 2 billion, and submit plans to manage the negative impacts of casino operations.

Investors meet investment conditions when being granted the investment registration, business certificate and operation license in casino; has disbursed at least 50% of total capital as regulated in the investment registration; layout area for casino business; employ proper casino operation manager; and have plans approved by the authority.

Decree 03/2017/ND-CP will become effective from 15 Mar 2017 and do not affect the organizations which have been granted permission.

Currently casino in Vietnam allows foreigners such as Do Son Casino in Hai Phong, Ho Tram Casino in Vung Tau, Casino Aristo International in Lao Cai, Silver Shore Casino in Da Nang, Casino Royal Quang Ninh, and projects Casino Hoi An, Casino Van Don, and Casino Phu Quoc.

Easing regulations on casino business will help prevent flyout capital of Vietnamese to visit casinos in neighboring countries such as Cambodia, Macao; help better manage the social order in the sensitive entertainment area in Vietnam and attract foreign tourists.

Furthermore, Vietnam hopes to further integrate regionally, and internationally, attract billions of dollars of foreign investment to sustain growth, and make tourism a key sector to further develop. However, Vietnam will also meet challenges arisen in management of smuggling, illegal transportation of foreign currency, gold, silver, precious stones, precious metals, money laundering, high-tech crime and terrorist financing. Further laws will be issued to cope with the changes along the way but the loosen of laws on casino and gaming is needed.

Vietnam has been increasingly needing energy for industry development and consumption and therefore investment in building plants are encouraged by governments in all forms, especially with sources from Public Private Partnership.

The nuclear energy has not been approved by Vietnam National Assembly in 2016. Vietnam has now more depending on up-coming thermal coal power plant construction projects when the sustainable energy projects i.e. wind, solar are slowly initiated.

For most of the significant projects, the developers requires the foreign EPC contractors to provide equipment, engineering and constructions whom requires construction licenses to operation in Vietnam. They also keep an eye on on the changes in the law in electricity and Vietnam development of energy sector to follow opportunities.

In 2016, Vietnam has issued decision on national power development into 2020.

With aim to grow the energy sector to meeting growing demands and publicly announce the plan to the interested parties, Vietnam government has now restructuring the power sector aiming to achieve the conversion of the power sector under the market mechanism in order to enhance business efficiency, enhance the publicity, transparency, equal competition in terms of international integration, ensuring the development of sustainable electricity systems, market development-oriented retail electricity in Vietnam according to the market mechanisms under the regulation of Government.

Restructure Electricity Sector 2016 – 2020

The period from 2016 to 2018

Privatize the power generation corporation of Vietnam electricity Group (EVN), Vietnam National Oil and Gas Group (PVN), Vietnam national coal – mineral industries holding corporation limited (Vinacomin). Vietnam Power Generation Corporation to be remained in the groups managed by EVN and the group hold at least 51% of the shares.

To encourage the plant using the renewable energy to engage in the wholesale electricity market.

Orienting the National Load Dispatch Center to become one member limited liability company with independent profit and loss center to manage the system, the electricity market and metering activities.

The period from 2019 to 2020

Reduce the State capital in the power generation corporation, separate the Vietnam Power Generation Corporation from Vietnam Electricity Group, and guarantee the State capital ratio in the power generation companies.

Allow the BOT power plant, the large power plant having important meaning to involve in the wholesale electricity market. Ensure a fair, equality environment for investors.

Separate the cost of distribution and retailing of electricity to operate the retail electricity market.

Before the competitive wholesale electricity market officially implemented, complete the conversion of the National Load Dispatch Center into one member limited liability company.

Restructure Electricity Sector 2021 – 2025

Creating an environment for fair competition in the electricity retailing, separate the cost of distribution and retailing.

Privatize the power generation corporation, and retail activity ensuring the state’s capital ratio but not to private each company, or distribution activity.

Ensure the independence of the legal status, personnel, financial and interests between the power seller, and power buyer.

The Expected Changes of the Law on Electricity

The competent authority will revise the Vietnam Electricity Law and the related legal documents to propose the necessary amendments, to fit with the open market direction for the electricity industry in Vietnam, in order to avoid the legal entanglements for domestic as well as foreign investors.

Allows the plant using the renewable energy to have a options for preferential price mechanism or engage in the competitive wholesale electricity market.

Provide guidance on the cost separation on distribution and retailing of electricity, renew the mechanism of the retail price of electricity suitable for the market mechanisms under the state’s management.

Build a road map to transform the national load dispatch center to become one member limited liability company to complete the tasks independently and take responsibility.

The laws on electricity will be changed to attract investment of the private sector, boosting the industrial development of the country, which is always hunger for power to develop. The changes of laws will be monitored by ANT Lawyers Energy and Project Department in Hanoi, Da Nang and Ho Chi Minh City to provide clients with updates.