The EVFTA, EU-Vietnam free trade agreement, eliminates almost 99 percent of customs duties between the two countries.
The RCEP,Regional Comprehensive Economic Partnership, further builds on free trade agreements within ASEAN 15 countries ASEAN members, which Vietnam is a part of, as well as Australia, China, Japan, South Korea, and New Zealand.
Vietnam adopted an amended Law on Enterprises and Law on Investment, which took effect in January 2021. Both laws are timely given the passage of new free trade agreements.
Thus, the scenario for investment in Vietnam is quite favorable and our services include support for the following areas,
Investment in Vietnam
- The amended Law on Investment provides updates on conditional business lines, investment incentives, support mechanisms while removing administrative approval for certain types of investment projects.
- Vietnam’s economy, despite the pandemic, has continued to showcase strong growth patterns leading investors to favorably consider the country as a solid investment destination.
- While Vietnam was hit hard, it continued to record net positive growth with the economy set to bounce back to 6.8 percent.
- ManuD Vietnam JSC belong to FDH Holding JSC with a wide experience in investment consultancy.
- Main areas,
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- M&A
- Real state
- Industrial
- Services
Production facilities set up in Vietnam
- Labor costs are currently 50 percent those of China and around 40 percent of those reported in Thailand and the Philippines. The country’s workforce is seeing an annual increase of 1.5 million people, and its workers are young and increasingly highly skilled.
- The amended Law on Enterprises simplifies the business registration process, redefines state-owned enterprise (SOE), and excludes household business from the scope of the current law.
- Vietnam approved a new labor code which took effect in January 2021 what is a step towards aligning with the International Labor Organization (ILO).
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- Our management can support for your production facilities set up from the location stage up to the building handover.
- Successful experiences guaranty our confidence.
Outsourcing in Vietnam
- The pandemic has had a significant impact on global supply chains, upending trade and slowing growth. Due to the pandemic, China, known as the ‘factory of the world’ shut factories and production lines, battering supply chains. This created a domino effect with businesses struggling to finish products and source raw inputs.
- Foreign companies outsourcing operations to reduce costs and improve market share is nothing new. The only things that seem to change are the companies changing the way that operations are relocated and the countries that manage to attract capital inflows.
- In this context, Vietnam has benefitted in attracting investors due to several factors including its ability to reopen its economy, gaining an advantage over others.
- IIndustries suited for this supply chain shift,
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- Garment and textile cluster
- Automotive cluster
- Electronic clusters
- Food, beverage and feed processing cluster
Sourcing from Vietnam
- Finding the right sourcing partners to work with can be a complex and stress-inducing process. Before rushing into the countryside and interviewing every possible partner, it is important for a company to clearly define what specifically they are looking for in a sourcing partner and what they expect from the area where that partner is located and here we support for the important specifics for most companies which include:
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- The Search
- The Screening
- Choosing the location
