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Japan Investments Profile in
Vietnam
Investment Profile
2 Japan Investments Profile in Vietnam
3 Japan Investments Profile in Vietnam
Contents
Japan Investments Profile in Vietnam ............................................................. 1
Foreword ......................................................................................................................................................... 4
VIETNAM ....................................................................................................................................... 5
GDP Growth .................................................................................................................................................... 6
Population ....................................................................................................................................................... 6
Financial Health ............................................................................................................................................ 7
Key Sector Strengths .................................................................................................................................. 7
Opportunities ................................................................................................................................................. 8
Overview of Key Legal Issues .............................................................................................................. 10
VIETNAM- JAPAN RELATIONS ........................................................................................................ 12
Key Japanese Organizations in Vietnam ......................................................................................... 13
Key Vietnamese Organizations in Japan ......................................................................................... 13
ODA and Other Government Assistance ......................................................................................... 14
Key Agreements ......................................................................................................................................... 16
LNT & PARTNERS PROFILE .................................................................................................. 17
About Us ........................................................................................................................................................ 18
Our Team ...................................................................................................................................................... 18
Our Lawyers ................................................................................................................................................ 18
Our Practice Groups ................................................................................................................................. 19
Our Rankings............................................................................................................................................... 20
Our Awards .................................................................................................................................................. 21
Our Japanese Clients ................................................................................................................................ 22
International Cooperation .................................................................................................................... 23
Our Strategic Partners ............................................................................................................................ 24
Appendix 1 ................................................................................................................................................... 25
Appendix 2 ................................................................................................................................................... 29
4 Japan Investments Profile in Vietnam
Foreword
Japan has historically regarded Vietnam as a critical economic partner, and recent
trends in foreign investment from Japan have cemented the growing ties between the
two countries. As Vietnam’s political landscape stabilizes, its regulatory framework
untangles and its rich resources and labor market begin to draw regional interest, the
attraction of Vietnam to Japan as an ideal investment landscape is expected to continue
to burgeon at a rapid rate.
It is, therefore, no surprise that Japan regards Vietnam as a long-term strategic partner.
The country’s FDI contribution increases almost every single year, making Japan now
the largest investor of Vietnam. In addition, the huge Japanese interest in Vietnam is
evidenced by the growing FDIs into Vietnam amid waning investments into China. A
study by JETRO found that FDIs into the Southeast Asia region from Japan doubled in
2012 yet decreased by 18% in China which suggests that Japanese investors are
beginning to shift their investments from China to Southeast Asia, mostly in Vietnam.
To ensure this growth continues in the long-term, the Vietnam Government and local
businesses have made endeavors to streamline and simplify the processes for Japanese
investors to set up business in the country.
We hope this profile will give you some insight into why so many Japanese investors
have rapidly expanded into Vietnam, and how your business will benefit from also
entering this country of opportunities
5 Japan Investments Profile in Vietnam
VIETNAM
6 Japan Investments Profile in Vietnam
GDP Growth
Thanks to its strengthening export-oriented economy, Vietnam’s GDP has been growing
year by year, much of which has been driven by key industries such as manufacturing,
electronics and agriculture.
As the Vietnamese Government continues to implement its roadmap of liberalizing the
country’s economy, GDP growth is expected to continue to remain stable and/or
increase. Furthermore, following Vietnam’s much awaited entry into the Trans-Pacific
Partnership (“TPP”) Agreement in late 2014 or early 2015, which will effectively tear
down trade barriers with Vietnam’s key trading partners, GDP is expected to grow
rapidly with the anticipated increase in exports.
Population
Vietnam is home to approximately 90 million people and is one of Asia’s most densely
populated countries. Over 70% of the population resides in rural areas, which rely
primarily on agricultural production.
Vietnam has a young population, with working-age adults representing over 50% of the
population. The younger generation is increasingly aspiring to achieve affluent lifestyles.
And with the introduction of jobs and an increase in wages, young people have more
disposable income, creating an ideal market for new products and services.
This youthful society presents an opportunity to foreign investors, both in terms of
potential markets and also in terms of human resources. The youth of Vietnam are
better educated than their predecessors and they have the drive to achieve a higher
standard of living, which makes them an eager and diligent workforce.
Graph compiled with data taken from The World Bank
7 Japan Investments Profile in Vietnam
Financial Health
The Vietnamese Government has taken efforts to curb the country’s recent high inflation
rates, which have hampered investment progress in the past several years. These efforts
have been successful and by the end of 2013, Vietnam’s average annual inflation rate
stood at 6.60%, the lowest it has been in 10 years. As the Government continues rolling
out its fiscal policies to slash inflation, which has decreased further as of early 2014,
investor interest is expected to rise and Japanese businesses will benefit from the
ensuing economic growth.
The Government’s efforts to achieve monetary stability have also been successful. The
exchange rate of Vietnam’s official currency, the Vietnamese Dong (VND), has remained
steady over the course of the past couple of years.
Investors can take comfort in that the days of instability in Vietnam’s economy have
passed. A testament to the country’s positive financial outlook is the year-by-year
increase in the Vietnam Stock Market (VN-Index) and the Government’s continued
efforts to tackle its number of bad debts.
Key Sector Strengths
Electronics Manufacturing
Vietnam’s large supply of low wage workers and favorable tax incentives for the
industry have attracted a growing number of foreign companies assembling or
manufacturing electronics in the country. In 2013, computer and consumer electronics
products and components dominated Vietnam’s total exports.
Textiles
The country also boasts a strong textiles industry and the demand for these products is
expected to increase following entrance into the TPP Agreement. Vietnam’s
liberalization of business lines in this sector has led to unprecedented investor interest
to satisfy the growing demand from overseas markets. Growth is expected to jump from
12-13% to 15-20%, reaching 20 billion USD in 2017 and projected to surge to 50 billion
USD by 2025.
Agriculture
With over 70% of the population living in rural areas, exports in agriculture remain one
of Vietnam’s major contributors of GDP. The country’s tropical climate and unique
geographical location have made it ideal for producing certain crops. Today, Vietnam is
8 Japan Investments Profile in Vietnam
one of the world’s largest exporters of rice, cashew nuts, coffee and black pepper. Other
major exports of the country include seafood, rubber and wooden products.
Banking
While the Vietnamese banking industry has traditionally been restrictive against
prospective foreign stakeholders, the Government has recently passed new regulations
that will allow investors to acquire a larger stake in the country’s national banks. The
loosening of these restrictions is expected to drive further interest in this industry as
large infusions of capital will be needed to upgrade the systems, operations and
branches of the current commercial and retail banking system.
Logistics
The growth potential of Vietnam’s logistics industry has been expanding as a result of
the country’s increasing export turnover. Foreign interest in this industry has been
supported by recent figures provided by the Deputy Minister for Transport, who cited
that local logistics providers are only able to handle 20% of market demand (with the
remaining 80% being handled by foreign companies).
Tourism
For services, Vietnam’s tourism industry has attracted some of the largest FDI
commitments into the country. In 2012, Vietnam welcomed over 7 million visitors.
These figures, which are growing, make tourism a key growth industry driven by strong
global and domestic demand.
Opportunities
While challenges remain in the country’s regulatory framework, Vietnam remains an
attractive destination for foreign investment – not least because of the Government’s
efforts to open its market to investors.
Today, almost all investment sectors in the country are open to foreign investors (many
as a result of the WTO commitments) and the rollout of further market openings is
expected to take place within the next 1-2 years. On the agenda is also Vietnam’s long
awaited entrance into the Trans-Pacific Partnership Agreement (TPP), the conclusion of
which is expected to considerably drive demand for commodities from the country.
It is, therefore, no surprise that in the 2014 ASEAN Business Outlook Survey by the U.S.
Chamber of Commerce, Vietnam was ranked as the second most popular ASEAN
destination for investment (after Indonesia). As a positive outlook, 85% of survey
respondents in Vietnam further expected profits to increase in 2014.
9 Japan Investments Profile in Vietnam
The total amount of FDI has been increasing since 2011 and it is expected to continue in
years to come.
This positive outlook, which is driven by a stabilizing economy, a liberalization of the
market and a dynamic labor force, has placed Vietnam on the radar as an emerging
market to watch.
0
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400
600
800
1000
1200
1400
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2011 2012 2013
Total FDI influx into Vietnam (US$ mil.)
Total number of FDI projects in Vietnam
FDI Trend (2008-2013)
2008 2009 2010 2011 2012 2013
Total FDI influx into Vietnam
(million USD)
15,428.9 16,345.4 12,100.9 9,914.5 7,854.1 14,272.4
Total number of FDI projects in
Vietnam 1171 839 833 919 1100 1275
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Overview of Key Legal Issues
Investment Process in Vietnam
In 2007, Vietnam acceded to the WTO, which expanded foreign investors’ access to
Vietnamese markets. Vietnam’s WTO commitments have drastically altered the
investment environment by largely superseding the protective legislation which was
one of the greatest challenges to doing business in Vietnam.
Since accession, according to the Ministry of Finance, wholly foreign-owned entities
have become the most common legal structure for FDI, followed by joint ventures and
then BOT, BT, BTA and BCC contract arrangements.
Licenses for foreign investors will be largely granted on the discretion of the ministries.
The process may take approximately anywhere from 3 months (average time for the
service sector) to 12 months (for large-scale projects needing prime ministerial
approval).
However, there has been a proposal to amend the current Law on Enterprises, which is
expected to transform Vietnam into a more investment-friendly environment for
investors. In practice, foreign investors in Vietnam are often required to obtain HS codes
and investment licenses before commencing their business activities. The proposed
amendments will remove these hurdles; instead, foreign investors will only be required
to obtain a Business Registration Certificate in the same manner as Vietnamese
companies. Moreover, the abolition of HS codes will allow businesses to engage in any
business activities (other than those otherwise specifically prohibited such as activities
in weaponry and drugs).
Restrictions
Prior to investing in Vietnam, certain requirements, such as demonstration of financial
capacity and industry experience, will generally need to be fulfilled to the satisfaction of
the authorities.
Furthermore, while investment in a vast majority of sectors in Vietnam is open
nowadays, certain sectors will demand for additional conditions to be satisfied. For
example, projects in sectors that may have an adverse environmental effect (e.g.,
manufacturing) will likely require an environmental impact assessment report.
FDI approval for special services, such as banking, insurance, finance, and securities, will
also be subject to higher scrutiny by the authorities, and satisfaction of more stringent
conditions may be needed
11 Japan Investments Profile in Vietnam
Taxation
There is a double tax avoidance agreement in force between Vietnam and Japan, which
allows taxes paid in one of these countries to be offset against taxes payable in the other.
Companies are generally subject to the corporate tax rate of 22%, which is applied from
January 1st, 2014 until December 31st, 2015. From January 1st, 2016 onwards, this tax
rate will be lowered to 20%.
Investors may also be able to enjoy preferential tax rates (or even tax exemptions) if
they satisfy some of the range of eligibility requirements set out under Vietnamese law
(e.g., by operating projects in encouraged sectors).
Legal Framework
However, Vietnamese laws are sometimes vague, ambiguous and inconsistent. This may,
at times, lead to inconsistent applications of the law by the authorities. For this reason,
we advise prospective investors to consult with the relevant authorities prior to
carrying out their investment projects if any regulatory ambiguity or inconsistency
arises.
For more information on Vietnam’s legal landscape pertaining to FDI, please refer to the
2014 IFLR Report by Bui Ngoc Hong, Do Huy and Nguyen Xuan Thuy at Appendix 3.
12 Japan Investments Profile in Vietnam
VIETNAM – JAPAN RELATIONS
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Key Japanese Organizations in Vietnam
Japanese interest in Vietnam is bolstered by the strong financial and technical support
provided by various organizations in the country. These organizations have assisted in
providing support, such as official development assistance (ODA), the provision of
which has been well-received by the Vietnamese Government.
The following key organizations are expected to play a more active role in Vietnam’s
economic development in the future, which will act as a catalyst for a boost in Japanese
investment:
1. Japan External Trade Organization (JETRO)
2. Japan Bank for International Cooperation (JBIC)
3. Japan International Cooperation Agency (JICA)
4. Development Bank of Japan (DBJ)
In addition to external support, Japanese investors benefit from the numerous industry
groups and associations in Vietnam. Dedicated organizations for the Japanese business
community exist to welcome investors into the country and offer services to aid them in
their business endeavors. These organizations often exchange dialogue with the
Vietnam Government to enable Japanese investors to voice any concerns:
1. Japanese Business Association of Ho Chi Minh City (JBAH)
2. Japan Business Association in Vietnam (JBAV)
3. Japan Da Nang Organization
4. Vietnam-Japan Human Resources Cooperation Center (VJCC)
5. The Japan Foundation Center for Cultural Exchange in Vietnam
For more information on these organizations, please refer to Appendix 1.
Key Vietnamese Organizations in Japan
Japanese investors who are interested in Vietnam may seek information from the Vietnam-Japan Business Association.
The Embassy of Vietnam is located in Tokyo. There is also a Vietnamese Consulate General located in Tokyo, Osaka, Fukuoka, Kushiro and Nagoya.
For more information on these organizations, please refer to Appendix 1.
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ODA and Other Government Assistance
As part of the Japanese Government’s pledge to assist developing countries in various
areas including infrastructure and construction, the Ministry of Foreign Affairs
established the ODA loan and grant aid program. Vietnam is one of the grateful
beneficiaries of the Japanese Government’s ODA program and thanks to this assistance,
the country has seen the successful completion of major and much-needed
infrastructure projects.
Some recent projects that are on the way to or have been successfully established
through ODA assistance include the following:
PROJECT
2013
Grants
Grant for “Next-Generation” vehicles
Human resource development scholarship
Loans
North-South Expressway Construction Project
Lach Huyen Port Infrastructure Construction Project
Thai Binh Thermal Power Plant and Transmission Line Construction Project
2012
Grants
Grant for medical equipment
Aid grant for small and medium-sized enterprises
Loans
reconstruction of bridges in the Central District
Hanoi City Urban Railway Construction Project (Line 1)
Climate change support program
Combined Cycle Power Plant Construction Project
Noi Bai International Airport to Nhat Tan Bridge connecting road
2011
Grants
North-South Expressway Construction Project
Lach Huyen Port Infrastructure Construction Project
Loans
Afforestation of the coastal sandy area in Southern Central Vietnam
Human resource development scholarship
E-Customs and national single window for customs modernization project
Development of traffic control systems for expressways in Hanoi
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PROJECT
2010
Grants
Saigon East-West Highway Construction Project
Ho Chi Minh City Water Environment Improvement Project
Climate change support program
Nhat Tan Bridge (Vietnam-Japan Friendship Bridge) Construction Project
Nghi Son Thermal Power Plant Construction Project
Ninth Poverty Reduction Support Credit
Loans
Rehabilitation of small-scale reservoirs in Quang Ngai Province
Program for the improvement of capabilities to cope with natural disasters caused by climate change
Afforestation of the coastal sandy area in Southern Central Vietnam
Human resource development scholarship
Two Japanese NGO projects
2009
Grants
National Highway No. 1 Bypass Road Construction Project
Thai Binh Thermal Power Plant and Transmission Line Construction Project
Small-Scale Humanitarian Infrastructure Development Project
Project to promote energy efficiency and renewable energy
Financing of small and medium-sized enterprises
Loans
Groundwater development in Central Highland Provinces
Afforestation of the coastal sandy area in Southern Central Vietnam
Improvement of equipment in national hospitals for obstetrics and gynecology
Project for reinforcing customs functions at Haiphong Port
The Forest Preservation Program
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Key Agreements
The promotion of Japanese investment into Vietnam is facilitated by the strong bilateral
investment relations between the two countries. This relationship has been encapsulated by
multiple bilateral agreements and treaties. Some key agreements include:
1. The Japan – Vietnam Investment Treaty (JVIT)
Signed on November 14th, 2003, came into effect on December 19th, 2004
The JVIT assigns the most favored nation treatment to both countries. Therefore,
Japanese investors can expect to receive equal trade advantages, such as preferential tax
rates, to those enjoyed by Vietnamese investors. The JVIT further prohibits adverse
behavior that would affect the investment interests of Japanese investors, as well as
liberalize and protect their trade interests.
2. The Japan – Vietnam Economic Partnership Agreement (JVEPA)
Signed on December 25th, 2008, came into effect on October 1st, 2009
The JVEPA aims to liberalize and facilitate commodities and services trading between
Japan and Vietnam. This aim is implemented primarily by way of a reciprocal removal of
a vast majority of import duties and tariffs in the two countries. The JVEPA further
provides for other commitments to promote bilateral investment relations, such as the
protection of intellectual property and also the prevention of anti-competitive conduct.
3. The Japan – Vietnam Joint Initiative (JVJI)
Signed on December 4th, 2003
The JVJI sets out a comprehensive action plan entered into between Vietnam and Japan
to boost Vietnam’s investment landscape and increase its industrial competitiveness.
Under this initiative, the Japanese Government agreed to offer support in the form of
ODA to invest in and provide technical support for major infrastructural projects in
Vietnam.
4. Japan – Vietnam Joint Statement on the Strategic Partnership for Peace and
Prosperity in Asia
Made in 2011
In a meeting between the Japanese Government and Vietnamese Government in 2011,
dialogue was exchanged in order to determine the means for both countries to make a
positive contribution to the peace, stability and prosperity of the region. Under the Joint
Statement, Vietnam expressed its gratitude for the extensive Japanese contribution by
way of ODA, while Japan expressed that it will continue efforts to support Vietnam’s
economic development by providing technology and expertise.
In the energy and natural resources sector, both countries agreed to cooperate in the
peaceful use of nuclear energy, as well as develop Vietnam’s growing rare earth industry
under which Japan will provide financial and technical support
17 Japan Investments Profile in Vietnam
LNT & PARTNERS
PROFILE
18 Japan Investments Profile in Vietnam
About Us
LNT & PARTNERS is a leading full-service independently ranked local law firm in
Vietnam with offices in Ho Chi Minh City, Hanoi, Hong Kong (affiliate), and San
Francisco. The firm is among Vietnam’s most prominent, representing a wide range of
multinational and domestic clients, including Fortune Global 500 companies as well as
well-known Vietnamese listed companies on a variety of business and investment
matters.
Our Team
Our Lawyers
Mr. Hong Bui
Practice areas
• Compliance
• Foreign Investment
• M&A
Mr. Huy Do
Practice areas
• Intellectual Property
• Dispute Resolution
• Antitrust/ Competition
Ms. Quyen Hoang
Practice areas
• Corporate
• Employment & Benefits
• Foreign Investment
• M&A
Dr. Net Le
Practice areas
• Banking & Finance
• M&A
• Tax
Dr. Tuan Nguyen
Practice areas
• Antitrust/ Competition
• Bankruptcy
• Employment & Benefits
• M&A
Dr. Vinh Nguyen
Practice areas
• Dispute Resolution
• Employment &
Benefits
• Tax
Mr. Binh Tran
Practice areas
• Real Estate/ Infrastructure
• Dispute Resolution
• Employment & Benefits
Mr. Su Tran
Practice areas
• Dispute Resolution
• Real Estate/
Infrastructure
• Banking & Finance
19 Japan Investments Profile in Vietnam
Our Of Counsel and Senior Advisor
Our Practice Groups
LNT & PARTNERS has domain expertise in key legal disciplines organized into five
Practice Groups:
(i) Corporate Group: Our highly-regarded corporate team regularly handle M&A
deals, advise on complicated business licenses, guide investors with their
inbound and outbound investments, and navigate regulatory compliance issues
(including in matters of competition, labor and taxation) to deliver
commercially-practical solutions to our clients.
(ii) Dispute Resolution Group: Our award-winning dispute resolution lawyers,
which include two former judges, have represented major companies in both
court and international arbitral proceedings
(iii) Banking and Finance Group: Our banking and finance team has been at the
forefront of millions of dollars’ worth of financial transactions for large financial
institutions, funds, and private companies.
(iv) Intellectual Property/TMT Group: Our IP/TMT professionals have extensive
experience in advising and representing major clients in some of the most
complex and high-profile IP related matters in various industries, including
biotech, pharmaceutical, electronics and software.
(v) Real Estate and Infrastructure Group: Our real estate and infrastructure team
has been behind some of Vietnam’s largest development projects.
Mr. Kiyoshi Hirasawa
Practice areas
• Japan Practice
• Corporate, M&A
• Foreign Investment
Dr. Sy Chung Pham
Practice areas
• Corporate Compliance
• Foreign Investment
• M&A
20 Japan Investments Profile in Vietnam
Our Rankings
PUBLICATION PRACTICE AREAS RANKING YEAR
Asia Pacific
Legal 500
Banking and Finance Leading Lawyers 2013 / 2012
Corporate/ M&A Leading Lawyers 2013 / 2012
Dispute Settlement Leading Lawyers 2013 / 2012
Tax Leading Lawyers 2013 / 2012
Chambers and
partners
Banking and Finance Vietnam Leading
Law Firm
2013 / 2012 / 2011
/ 2010
Corporate/ M&A Vietnam Leading
Law Firm
2013 / 2012 / 2011
/ 2010 / 2009
Projects, Infrastructure &
Energy
Vietnam Leading
Law Firm 2013 / 2012
International
Financial Law
Review (IFLR)
Banking and Finance Notable 2013 / 2012
Mergers & Acquisitions Notable 2013 / 2012
Project Finance Leading Lawyers 2012 / 2011
PLC Which
Lawyer? Recommended Law Firm 2012 / 2011
21 Japan Investments Profile in Vietnam
Our Awards
Leading Law Firm 2014 – Asia Pacific Legal 500
Recognised Firm 2014 – International Financial Law Review
Most Trusted Law Firm of the Year – Lawyers World Magazine
Vietnam Deal Firm of the Year 2014 – Asia Legal Business, a Thomson Reuters Company, SE Asia Awards 2014
Full Service Law Firm of the Year 2014 – Vietnam
Intellectual Property Innovators of the Year – Vietnam
Commitment to Cross-Border Investment – Vietnam
- Acquisition International
Corporate Finance Law Firm of the Year in Vietnam
– 2014 Corporate Intl Magazine Global Award
ALB Award Deal Firm of the Year – Finalist 2013, 2012 Employer of Choice 2012 – ALB 2nd position
22 Japan Investments Profile in Vietnam
Our Japanese Clients
Our partners have had the privilege of representing multiple Japanese clients, from
major conglomerates to branch offices, in a broad spectrum of industries and matters,
including:
23 Japan Investments Profile in Vietnam
International Cooperation
The Firm’s partners have established strong relationships with attorneys at
international law firms such as:
US Law Firms
European Law Firms
Asian Law Firms
24 Japan Investments Profile in Vietnam
Our Strategic Partners
LNT & PARTNERS has developed an active presence across a broad range of industries
through its strategic partnerships with leading industry publications and sector groups,
including:
Vietnam Investment Review
Quang Trung Software City
Colliers International Vietnam
25 Japan Investments Profile in Vietnam
Appendix 1
Key Japanese Organizations in Vietnam
1. Japan External Trade Organization (JETRO)
Hanoi Office
Address: Suite 205-207, 2nd Floor, 63 Ly Thai To Street, Hanoi
Tel: +84-4-3825-0630
Fax: +84-8-3821-9362
E-mail: [email protected]
URL: http://www.jetro.go.jp/vietnam/
Ho Chi Minh City Office
Address: 14th Floor, Sun Wah Tower
115 Nguyen Hue Street, District 1, Ho Chi Minh City
Tel: +84-8-3821-9363
Fax: +84-8-3821-9362
E-mail: [email protected]
URL: http://www.jetro.go.jp/vietnam/
2. Japan Bank for International Cooperation (JBIC)
Hanoi Representative Office
Address: 3rd Floor, Sun City
13 Hai Bai Trung Street, Hoan Kiem District, Hanoi
Tel: +84-4-3824-8934/8935/8936
Fax: +84-8-3824-8937
URL: http://www.jbic.go.jp/
3. Japan International Cooperation Agency (JICA)
Primary Office (Hanoi)
Address: 16th Floor, Daeha Business Center
360 Kim Ma Street, Ba Dinh District, Hanoi
Tel: +84-4-3831-5005
Fax: +84-8-3831-5009
Liaison Office (Ho Chi Minh City)
Address: No. 905, 9th Floor, Saigon Riverside Office Center
2A-4A Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City
Tel: +84-8-3827-4942
Fax: +84-8-9827-4943
URL: http://www.jica.go.jp/vietnam/
26 Japan Investments Profile in Vietnam
4. Development Bank of Japan
Head Office (Japan)
Address: Otemachi Financial City South Tower
9-6 Otemachi, 1-chome, Chiyoda-ku, Tokyo 100-8178
Tel: +81-3-3270-3211
URL: www.dbj.jp/
5. Japan Business Association of Ho Chi Minh City (JBAH)
Address: No. 1407, 14th Floor, Sun Wah Tower
115 Nguyen Hue Street, Ben Nghe Ward, District 1, Ho Chi Minh City
Tel: +84-8-3821-9369
URL: http://www.jbah.info.vn/jp/
6. Japan Business Association in Vietnam (JBAV)
Address: Room 605, Sun Red River Building
23 Phan Chu Trinh Street, Hanoi
Tel: +84-4-2220-9907
Fax: +84-4-2220-9909
Email: [email protected]
URL: http://jbav.vn/
7. Japan Da Nang Organization
Address: 4 Tran Phu Street, Da Nang
Tel: +84-511-3889-543
Email: [email protected]
URL: http://www.japan-danang.org/index.php/ja/
8. Vietnam-Japan Human Resources Cooperation Center
Address: No. 91 Chua Lang Street, Dong Da District, Hanoi
Tel: +84-4-3775-1278/1279
Fax: +84-4-3775-2226
Email: [email protected]
URL: http://www.vjcc.org.vn/
27 Japan Investments Profile in Vietnam
9. The Japan Foundation Center for Cultural Exchange in Vietnam
Address: 27 Quang Trung Street, Hoan Kiem District, Hanoi
Tel: +84-4-3944-7419/7420
Fax: +84-4-3944-7418
Email: [email protected]
URL: http://jpf.org.vn/jp/
Key Overseas Investment Organizations in Japan
1. Vietnam-Japan Business Association
Address: 805-30 Kanda Higashi Konyacho
Chiyoda-ku, Tokyo 101-0034
Tel: +81-3-5413-7418
Fax: +81-3-5207-6786
Email: [email protected]
URL: http://vjba.org/
2. Embassy / Consulate General of Vietnam in Japan
Address: 50-11, Motoyoyogi-cho
Shibuya-ku, Tokyo 151
Tel: +81-3-3466-3313
Fax: +81-3-3466-3391
Email: [email protected]
URL: www.vietnamembassy-japan.org/en/
3. Consulate General of Vietnam in Osaka
Address: 4-2-15 Ichinocho Higas
Sakai-ku, Osaka 590-0952
Tel: +81-72-221-6666
Fax: +81-72-221-6667
E: tlsqvn@[email protected]
URL: http://www.vietnamconsulate-osaka.org/en
28 Japan Investments Profile in Vietnam
4. Consulate General of Vietnam in Fukuoka
Address: 4th Floor, Aqua Hakta
5-3-8 Nakasu, Hakata-ku, Fukuoka 810-0801
Tel: +81-82-263-7668
Fax: +81-92-263-7676
Email: [email protected]
URL: http://www.mofa.gov.vn/vnconsulate.fukuoka/en
5. Consulate General of Vietnam in Kushiro
Address: 4th Floor, Omachi Building
1-1-10 Omachi, Kushiro, Hokkaido 085-0847
Tel: +81-154-44-1040
6. Consulate General of Vietnam in Nagoya
Address: 6th Floor, 1st Centrair Building
1-1 Centrair, Tokoname0shi, Aichi-ken 479-8701
Tel: +81-569-37-7790
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29 Japan Investments Profile in Vietnam
Appendix 2
Recent Press Announcements
SMTB tie up with a Vietnamese bank December 16th, 2013
http://www.japantimes.co.jp/news/2013/12/16/business/smtb-ties-up-with-
vietnam-bank
Sumitomo Mitsui Trust Bank said Monday it has signed a memorandum of understanding for business cooperation with the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
Through the partnership with the Vietnamese state-run bank, the Sumitomo Mitsui Trust Holdings Inc. unit will help Japanese firms open local bank accounts, extend dong-denominated loans and give advice on mergers and acquisitions.
The collaboration is also designed to provide Japanese clients with more information on the investment environment and regulations in the Southeast Asian country.
Sumitomo Mitsui Trust also aims to start trust and asset management services in Vietnam through the BIDV, one of the country’s four major state-run commercial banks.
The Vietnamese bank has already teamed up with the Japan Bank for International Cooperation and Shinkin Central Bank.
30 Japan Investments Profile in Vietnam
Mizuho Bank, Aeon Vietnam tie up for one-stop payment services December 22nd, 2013
http://asia.nikkei.com/Business/Deals/Mizuho-Bank-Aeon-Vietnam-tie-up-for-
onestop-payment-services
HANOI -- Mizuho Bank will establish a partnership with Aeon Vietnam, a subsidiary of Japanese supermarket operator Aeon, to provide comprehensive cash management and payment transaction services for the retailer.
The partnership will be the first attempt to offer such services in Vietnam, where management of sales data has lagged, and it is expected to help modernize the country's retail sector.
Mizuho Bank and its existing Vietnamese business partner, Vietcombank, will form a comprehensive alliance with Aeon Vietnam on Monday. The two banks will handle all cash management and payment transaction operations for supermarkets directly operated by Aeon Vietnam and for the 120 or so stores in Aeon Vietnam's first Aeon Mall, which will open in January 2014, in Ho Chi Minh City.
Sales data will be managed comprehensively through point-of-sale systems to be installed in each store and which are capable of supporting credit card transactions. The banks will also offer other financial services, including direct deposit of employee salaries.
The partnership will also issue an Aeon-Vietcombank debit card. To promote sales and enhance customer loyalty, the card will offer such perks as points based on purchase amounts and coupons.
31 Japan Investments Profile in Vietnam
Mitsubishi Corporation Constructs Coal Fired Power Plant in Vietnam December 25th, 2013
http://jcnnewswire.sys-con.com/node/2908553
TOKYO – Mitsubishi Corporation (MC), together with Doosan Heavy Industries & Construction of Korea, and Vietnamese partners, Power Engineering Consulting Joint Stock Company 2 and Pacific Corporation, has concluded a contract with state-owned Vietnam Electricity (EVN) to build a coal fired thermal power plant in Vietnam.
The plant, located in Vinh Tan in Binh Thuan province, will be composed of two units of 600 MW each with completion expected by 2017 for the first unit and by 2018 for the second unit.
Electricity demand in Vietnam is expected to see a remarkable increase of more than 10% per annum in the coming years due to rising population and economic growth. Southern Vietnam in particular, the country's largest economic bloc, which includes Ho Chi Minh City, faces a critical situation in relation to the current imbalance between existing supply and the increasing demand for electricity. There is therefore urgent need for the development of power generation infrastructure in the region.
Currently, nearly half the country's electricity supply is generated by hydraulic power, but due to weather and other factors, the need for a more stable source of electricity is ever more present. This project, therefore, is expected to play an important role in preventing the shortage of electricity in the area.
Under "New Strategic Direction", its recently released corporate strategy, MC is seeking to accelerate global business development by leveraging the shift towards Asian markets. As building multiple robust and large-scale earnings drivers is also part of the company's business strategy, MC intends to pursue other power generation related business opportunities in the future.
32 Japan Investments Profile in Vietnam
Lixil Vietnam opens Dong Nai Factory January 10th, 2014
http://vietnamnews.vn/economy/249994/lixil-vietnam-opens-dong-nai-factory.html
DONG NAI (VNS) — Lixil Global Manufacturing Vietnam, a company under Japan's Lixil group, inaugurated its factory in the Long Duc industrial zone in the southern province of Dong Nai on Wednesday.
The factory, constructed on an area of 55ha at a total investment of US$440 million, will produce aluminium and PVC windows and doors for houses, offices, as well as civil and industrial projects.
It is the biggest investment project of the Lixil Group in Viet Nam, as well as by Japan in Dong Nai Province. The inauguration marks the end of 20 months of construction. Going forward, the factory will provide jobs for about 2,000 local workers.
Dinh Quoc Thai, chairman of the provincial People's Committee, told Vietnamplus newspaper that the number of Japanese investors seeking official approval to conduct business in Dong Nai had been increasing in recent years.
In 2013 alone, he revealed, Japanese investors accounted for 30 per cent of the $1.6 billion in foreign direct investment in the province.
Thai pointed out that the committee is always willing to support companies and create the best operating conditions for companies to carry out their production and other business activities effectively.
The Lixil group of Japan specialises in manufacturing products for the construction industry. Currently, it offers kitchen and bathroom fixtures, such as toilets and bathtubs, under the brand ‘INAX' in Viet Nam.
33 Japan Investments Profile in Vietnam
Tokyo-Mitsubishi Bank in Hanoi granted approval to change allocated capital January 25th, 2014
http://www.stoxplus.com/News/134850/1/186/the-bank-of-tokyo-mitsubishi-ufj-ltd-
hanoi-branch-approved-to-change-allocated-capital.stox
On January 20, 2014, the State Bank of Vietnam (SBV)’s Governor issued Decision 79/QD-NHNN on changing capital in the license of The Bank of Tokyo-Mitsubishi UFJ, Ltd. - Hanoi branch.
Specifically, the Governor approved the change in the allocated capital recorded in the establishment and operating license No. 55/GP-NHNN of The Bank of Tokyo-Mitsubishi UFJ, Ltd. - Hanoi branch to USD105 million.
The Decision shall take effect from the date of signing and is an integral part of the above-mentioned establishment and operating license
34 Japan Investments Profile in Vietnam
Tokyo Metro offers assistance to Hanoi Metro February 18th, 2014
http://english.vov.vn/Economy/Tokyo-Metro-offers-assistance-to-Hanoi-Metro/273354.vov
Japan’s Tokyo Metro will provide technical assistance and counselling services for the Hanoi Metropolitan Railway Management Board (MRB) to develop and run urban metro lines.
A document to this effect was signed in Hanoi on February 18 by Tokyo Metro Co. Ltd CEO Yoshimitsu Oku and MRB director Nguyen Quang Manh.
Both sides will exchange information and increase cooperation in human resources for metro projects.
Since February 2013 the Japan International Cooperation Agency (JICA) has helped Hanoi carry out a project on technical assistance and increased capacity building of a Hanoi agency to operate and repair metro lines in the city.
Tokyo Metro and MRB experts are working on the establishment of an agency to manage and operate the lines in the future.
Yoshimitsu Oku expressed hope Tokyo Metro’s 90 years of experience will help Hanoi develop modern urban rail lines, giving it a facelift in the coming years
35 Japan Investments Profile in Vietnam
36 Japan Investments Profile in Vietnam
FOR MORE INFORMATION PLEASE CONTACT:
Ms. Quyen Hoang
Managing Partner
Ho Chi Minh City Head Office
Unit 03, Level 21, Bitexco Financial Tower
No.02 Hai Trieu Street, District 1
Ho Chi Minh City, VIETNAM
Tel: +84 8 3821 2357
Fax: +84 8 3910 3733
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17 Ngo Quyen Street, Hoan Kiem District
Hanoi, VIETNAM
Tel: +84 4 3824 8522
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Mr. Huy Do
Partner
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Suite 2710
San Francisco, CA 94111 USA
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