Thứ Hai, 19 tháng 7, 2021

Wind Power in Vietnam Attracts the Attention of Foreign Investors



Tra Vinh People’s Committee has approved the policy for three investors to implement the Hiep Thanh wind power plant project in the province with a total investment of nearly 3,370 billion VND; of which 20% is contributed by investors, the rest is loan from bank Landesbank Baden-Wurttemberg-LBBW, Germany. It shows that Vietnam wind power sector is attracting attention of foreign investors.


The Hiep Thanh wind power plant project will be built on a total area of 2,747 ha in the coastal alluvial land of Hiep Thanh commune, Duyen Hai town (Tra Vinh province) with the design capacity of 78MW, with 18 – 19 wind turbine columns.

Investors implementing the project include Ecotech Vietnam Renewable Energy Joint Stock Company (based in Hai Ba Trung District, Hanoi); Janakuasa Pte LTD (Singapore) and Mr Lam Minh (Ba Dinh District, Hanoi). Investors have established Ecotech Tra Vinh Renewable Energy JSC to carry out the project. The duration of the project is 49 years.

According to General Director of Tra Vinh Ecotech Renewable Energy Joint Stock Company, the project was included in the Power Development Plan for Tra Vinh province in the period 2016 – 2025, with a view to 2035, which was approved by the Ministry of Industry and Trade on May 19th 2016. Currently the project is implementing investment procedures with the aim of putting into operation in the first quarter of 2020.

Sharing about the wind power price, according to leader of Tra Vinh Ecotech Renewable Energy JSC, the price of wind power is currently approved by the Prime Minister under Decision 37/2011/QD-TTg on the mechanism to support the development of wind power projects in Vietnam and take effect from August 20th 2011 is 7.8 cents/kWh.

According to leader of Tra Vinh Ecotech Renewable Energy JSC, Vietnam is the most potential country in ASEAN in recent years and coming years.

However, with the electricity price of 7.8 cents/kWh in this project, it is difficult to arrange capital, but the company is willing to bet on the project because they believe in the development of the Vietnam economy and want to contribute to the development of power plants in Vietnam. Investors also believe that the Government of Vietnam will study and reconsider bring the price of wind power to a more harmonious level, ensuring equality between renewable energy sources.

Hiep Thanh wind power plant is the fourth wind power project which was granted investment policy in Tra Vinh province. Previously, Tra Vinh province has granted investment certificates for 3 wind power projects, with a total designed capacity of 192 MW, in Truong Long Hoa commune (Duyen Hai town) and Dong Hai commune (Duyen Hai district).

These projects are in the stage of implementing appraisal procedures, approving the basic design… to start the construction. These projects are also in the list of projects calling for investment of Tra Vinh province in the period 2016 – 2020.

According to Tra Vinh wind power development plan up to 2020, with a view to 2030, which was approved by the Ministry of Industry and Trade on December 4th 2015, Tra Vinh province has planned 6 wind power projects at 6 coastal mudflats of Duyen Hai district and Duyen Hai town; in which there are 3 plants in Truong Long Hoa commune, 2 plants in Hiep Thanh commune and 1 plant in Dong Hai commune.

By 2020, the total installed capacity is about 270MW, the corresponding wind power is 634 million kWh. By 2030, the installed capacity will be about 1,338 MW. Total investment for wind power grid connected projects by 2020 is about 14,313 billion VND.

The wind power development projects will bring many benefits to the socio-economic development of Tra Vinh province such as increasing the local budget from taxes, increasing the electricity supply to create jobs for local workers; create landscapes to attract tourists.

In order to implement Vietnam’s national energy development strategy up to 2020 with a vision to 2050 (promulgated together with Decision No. 1855/QD-TTg, December 27th 2007), Vietnam strives to increase the ratio of new and renewable energy sources to around 5% of primary commercial energy by 2020 and about 11% by 2050.

According to Decision No 1208/QD-TTg dated July 21st 2011 of the Prime Minister on the approval of the Power Plan VII will bring the total wind power capacity from current level to about 1,000 MW in 2020 and around 6,200 MW by 2030. Electricity produced from wind power accounts for 0.7% in 2020 to 2.4% in 2030.

Vietnam plans to have high tech city built to nurture IT start-up environment



It appears that Vingroup Incorporation is studying the US “Silicon Valley” model to implement VinTech City in Dong Anh (Hanoi). This is the first environment to help nurture the high tech to put into life.

With more than 70 hectares of land in Dong Anh, VinTech City will be fully equipped office buildings, computers and the internet for the companies to start up.


With the target is become a technology corporation in the next 10 years, Vingroup has taken the first steps in this strategy. In particular, the commercial-service field is a financial backbone and provides an ecosystem that supports the research and commercialization of industrial-technology products. The industry segment including automobiles and smart electric- appliances will increase both in terms of production and consumption, towards export.

Technology will be the main driver, and there will be sufficient human resources and infrastructure to research the artificial intelligence, development of new materials and software production.

The plan is to gather high-profile scientists of science and technology as well as foreign experts combined with local researchers. CEO Vingroup said that the corporation has signed with more than 50 universities in the field of science and technology to prepare human resources of 100,000 engineers for the next 10 years.

Vietnam has become attractive to IT development center business ideas and it is expected it will continue to strongly supply high quality programmers to play important role in global IT business.

Chủ Nhật, 18 tháng 7, 2021

Why Asian Investors Prefer Vietnam Real Estate Market?



Profitability of high-end real estate in Vietnam surpasses that of ASEAN countries.

According to Mr Pham Lam, General Director of DKRA Vietnam, in the past 3 – 5 years, Asian investors from Korea, Hong Kong, Japan, Malaysia and China have been active in the Vietnam real estate market. They prefer golden land funds, specializing in high-end and luxury real estate development.


Also according to leaders of DKRA Vietnam, the investment wave of Asian investors will increase in the next few years. The expert also outlines the 7 causes of the trend that Asian investors hunting for golden land to develop high-end real estate projects.

Firstly, Vietnam is a developing real estate market. In emerging markets, there are more investment opportunities than markets that have grown too long (saturation of opportunity). Real estate in many Asian countries are too expensive and the investment at the present time is not attractive in the native country has urged Asian investors poured capital into Vietnam market.

Secondly, Vietnam is a country with political stability, which is considered as the most important factor that is of international concern before entering a new market. The stable political background brings safety for investment yields in the context of global geopolitical fluctuation is increasingly unpredictable.

Third, high-end and luxury real estate in Vietnam, especially Ho Chi Minh City (HCMC), is more profitable than ASEAN countries. According to a recent report of some surveyors in the country, high-end real estate in districts 1 and 3 of HCMC have a profitability ratio of more than 4%. In District 2, especially Thao Dien, An Phu and Thu Thiem areas, luxury apartments achieved a profitability rate of 5 – 6.5%.

Meanwhile, the profitability rate of investment in luxury apartments in ASEAN is fluctuating in the range of 3.7 to 5.2% and in Asia, it also has the same threshold. Therefore, luxury real estate in HCMC is considered quite competitive while the price is lower.

Fourth, Vietnam has Asian culture in accordance with the culture of other countries in the area. The similarity or proximity in culture is a very effective bridge in the process of investment promotion, investment cooperation, helping the Asian real estate owners easily access and penetrate the real estate market in Vietnam.

Fifth, Vietnam has a young population and is experiencing a spurt in income, so the demand for housing has increased sharply. The middle class, even the rich and the super-rich, are among the fastest growing groups in the world. This is a remarkable advantage of Vietnam.

With the flagship product of Asian investors, which is high-end real estate, they target rich consumers who are willing to pay for high-value assets with outstanding quality to assert their position.

Sixth, interest rates in the developed real estate markets in the Asia is very low. Interest rate in Japan is 1%, Singapore is 3%, Korea is below 2% and other regions such as Taiwan, Hong Kong is also at a modest level compared to Vietnam. This is the factor attracting the attention of investment funds and major real estate companies in Asia coming to Vietnam. In addition to developing projects with committed profit margin, they also carry out loan deals with better interest rates than in their hometowns.

Seventh, due to the same region, the moving distance between Vietnam and their home country of Asian investors is considered to be faster, more convenient than other continents. Close geography distance helps Asian investors have more opportunities to monitor, check the new market and make important decisions in time, making the most effective investment.

Thứ Sáu, 16 tháng 7, 2021

Coastal Shipping in Vietnam | ANT Consulting

 1.Coastal shipping competition

According Maritime Bureau, in 2015, although business activities of coastal shipping enterprise still had some difficulty, the total output reached 118.7 million tons, increasing 9.5% compared to 2014.

A Deputy Director of Vietnam Maritime Bureau, Mr Bui Thien Thu said that domestic shipping had taken charge of 100% of the domestic demand of coastal shipping. The domestic container ships has increased to 39 ships, a total increase of freight load is 200% from 2013 to 2015. The coastal shipping routes has transported 6.1 million tons of cargo including coal, slag, stone, rock, metal, fertilizers, cement, ore, fuel oil …

In 2015, output of goods in Vietnam’s seaport system continues an impressive growth, estimated at 427.3 million tons, rising 14.6%, in which the container reached 12 million TEUs, rising 15.5% compared to 2014.

According to Deputy Director of Bureau Bui Thien Thu, cargo volumes through Vietnam’s seaport system in 2015 in accordance with the approved plan in Decision No. 1037 of the Prime Minister in 2014 was 410 million tons. Thus, the volume outperformed 4.1% in 2015 compared with the initial plan.

However, the goods have been misallocated between different domestic seaports. To resolve this situation, there is a need to improve connectivity transport infrastructure and supporting services to relocate goods in different seaports, while speeding up the relocation of the port on the Saigon River and Ba Son shipyard.

During the year, Vietnam Maritime Bureau has completed the review and adjustment of detailed planning of port group 1, 2, 3, 4 and 6, thus managing the system more effectively. The Ministry of Transportation approved this plan.



By 2016, the total output of goods through the port system is estimated to reach 470 million tons (increasing 10% compared to 2015), in which each container is expected to reach 13.3 million, increasing 11% TEUs.

2.Vietnam Government published policy on Coastal Shipping, particular container services

In late May 3/2013, the Ministry of Transport has issued Document No. 128 / TB – BGTVT decision to terminate the operation of foreign fleets in terms of container shipping service in domestic routes, consisting of 20 units with a total tonnage of 500,000 DWT.

The foreign ship owners are not able to disapprove this decision since prioritising domestic fleets is compatible with the Law of the customs, as well as commitments to the world Trade Organization (WTO) on the protection of the members.

From 2013 to 2015, the fleets of Vietnam were given good opportunity to win back market share in terms of the domestic container shipping, which used to belong to the foreign shipping companies (with an estimated value of 1,000 billion / year). There are various container shipping companies gaining loyal leads which ground stable roots for domestic fleets.

Also Vietnam Maritime Bureau in collaboration with Ministry of Transport, Vinalines, Vietnam Ship Owners Association and Vietnamese ship owners operating on domestic routes ensure the limitation of congestion at seaport.

Average freight rates of Vietnamese fleet are offering customer around 5.2 million / 20-foot container for the north – south journey. This price is equivalent to the unit price of the foreign shipping company in 2012.

There have been more Vietnamese fleet being able to operate on domestic routes such as Hai Phong and Cai Lan to HCMC, Ba Ria – Vung Tau and vice again.

3.Vietnam regulations establishing who can and who cannot provide coastal shipping services, particular containers.

To ensure sufficient capacity to meet the demand for domestic container market, in addition to 30 domestic container shipping companies, Vietnam Maritime Bureau has also allowed 8 foreign fleets owned by Vietnamese enterprises to operate on domestic routes.

The biggest difficulty for domestic container shipping companies is that market has not completely recovered. Currently the container shipping companies from the South to the North reach approximately 80% of capacity, while the reverse route only reaches 50% capacity.

In long term, this policy has enabled the Vietnamese fleet to gradually recover from difficult period when all the domestic container shipping belonged to foreign companies.

Thứ Năm, 15 tháng 7, 2021

Hotel Business in Danang, Great Opportunity for Investors | ANT Consulting

According to the Department of Tourism of Danang City, the number of tourists to Da Nang in the first 6 months of 2018 reached 4 million visitors including domestic and international ones. Currently, the city has more than 700 accommodation establishments with more than 32,000 rooms and continues to increase rapidly to meet the demand of the tourists in the future.

The number of accommodation establishments in Danang has increased by at least 10%/year to meet the growing demand of tourists. Small-scale hotels (1-2 stars), spontaneously do not get the desired profit, due to the lack of management and facilities to meet the requirements of customers. However, the medium and large accommodation (3-5 stars) is extremely attractive to tourists, because of the convenience, as well as the appropriate management, along with the services that cater to the needs of the client’s holiday, even in the season which is not the tourist season these hotels are also out of rooms.



Today, with many policies of the city to attract investment in Da Nang to set up company and business destination and building Danang to become the tourist attraction of the country, the hotel business has become a great opportunity to develop. However, in order to attract profits in the hotel business, investors need to understand the demands of customers, select the scale and how to manage effectively. In addition, now with many methods of advertising, Internet booking support, hotel management software, … will make business easier, customers and hotels can meet easily, therefore they will bring profits in the business.

At the same time, many investors are doing business in the form of condotel, combined staying with leasing, this will help investors not only make a profit in investing in the resort hotel sector but also help investors or their friends and relatives of their rest in their own room when traveling in Danang.

For many foreign investors, investing in the hotel in Da Nang is a suitable option to seek profits. Taking the opportunity and investment at this time will help investors build the reputation for customers and bring long-term benefits in the future.

Thứ Tư, 14 tháng 7, 2021

Foreign Direct Investment from CPTPP | ANT Consulting

Still familiar investors, but with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) expected to come into effect by the end of 2018 and approved by the National Assembly on November 12th, there will be a greater and more quality flow of capital poured into Vietnam.

Two of the large foreign direct investment (FDI) projects registered to invest in Vietnam since the beginning of the year are owned by investors from 11 CPTPP countries. It is the 4.138 billion USD Smart City project of the joint venture between Sumitomo (Japan) and BRG (Vietnam), or the Laguna project register to increase the investment capital by 1.12 billion USD from Banyan Tree (Singapore).

There are also several projects such as Hanbaram Wind Power Plant (150 million USD), Ramatex Nam Dinh Textile and Apparel Factory (80 million USD) of Singaporean investor, Ykk Ha Nam Ykk factory project (80 million USD) of Japanese investors…

In fact, without CPTPP, investment capital from Japan, Singapore, Malaysia… still poured into Vietnam. They are the leading investment partners of Vietnam in the last three decades of FDI attraction.



According to data from the Foreign Investment Agency (Ministry of Planning and Investment), accumulated up to now, Japanese investors have invested in Vietnam over 56.2 billion USD, this figure of Singaporean investors is 46.2 billion USD, Malaysia is 12.5 billion USD, Canada is 5 billion USD, Australia is nearly 1.86 billion USD, Brunei is more than 1 billion USD…

Currently, out of 11 CPTPP members, all members have invested in Vietnam, except Peru. In total, the CPTPP members have invested in Vietnam of about 123 billion USD, accounting for nearly 37% of total registered FDI in Vietnam over the last 3 decades. This is not a small figure, indicating that the investment of CPTPP members is very significant for Vietnam’s FDI attraction.

The CPTTP will create favorable conditions for Vietnam to attract investment capital from other member countries, especially those countries that do not have FTA agreements with Vietnam, such as Canada and Mexico. The reason is that, this agreement will promote trade cooperation, in which trade is associated with investment. On the other hand, this is also an opportunity for Vietnamese enterprises, especially large corporations, to seek investment markets in other member countries.

Moreover, once the plans to invite Thailand, Korea and the UK join the CPTPP successfully, the opportunities for trade and investment cooperation in the region will be even greater. That will bring more benefits to Vietnam.
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