The Hong Kong Trade Development Council has published a free market profile of Vietnam in June.
You can find the report here.
The Hong Kong Trade Development Council has published a free market profile of Vietnam in June.
You can find the report here.
24 July 2019, Hanoi
On Tuesday 23 July in Hanoi, a fruitful and successful kick-off round the table meeting took place for potential Vietnamese companies, institutes and governmental organisations active in the horticultural sector by The Netherlands Vietnam Horti Business Platform and its partner the Crop Production Department of the Ministry of Agriculture and Rural Development. A long term vision and cooperation with the platform as a business tool is needed to let the dream come true -Bring the Vietnamese Horticultural Sector to the next level. The attendees expressed their enthusiasm and intention to contribute to this ambition.
The platform, a legally registered cooperative, which connects Vietnamese and Dutch companies and institutes in the horticultural sector in order to stimulate long-term working relationships in this industry between the two countries. Through introducing smart farming technologies and sharing of knowledge and expertise covering all aspect of the value chain – from seed to consumer- the members work together on sustainable, high-quality and efficient fresh production of fruit, vegetables, herbs, flowers and plants.
The meeting was attended by a diverse group of more than 20 Vietnamese companies, institutes and governmental organisations (MARD and Vietnam Trade Promotion Agency) representing the Vietnamese horticultural value chain and the Dutch platform members – Kenlog, Van der Valk Systems, Gakon and Ridder Group.
The meeting was opened by speeches of Mr. Nguyen Nhu Cuong – General Director Department of Crop Production Ministry of Agriculture and Rural Development, Mr. Willem Schoustra – Dutch Counsellor for Agriculture in Vietnam and. Mr. Henk van Eijk – Chairman of the Netherlands Vietnam Horti Business Platform. The reasons for setting up the platform- the strong bilateral trade relations between Vietnam and the Netherlands, the strong growth and high potential of the Vietnamese horticulture sector and the strong position of the Dutch horticulture industry were emphasised in these speeches.
After the speeches a presentation in which information about the platform and the meaning of being member was given in order to give the potential Vietnamese members a detailed insight into the Horti Business Platform. Followed by an interactive discussion about the opinion and needs of the attendees.
The Horti Business platform aims to organise a meeting for potential Vietnamese companies, institutes and governmental organisations in Da Lat as well as in Ho Chi Minh City later this year. If you are interested, please contact us.
For more information:
Ms. Mai Hong – Coordinator Vietnam
+84 90 341 6983
Ms. Mirjam Boekestijn – Coordinator the Netherlands
+31 6 25 27 60 71
H.E. Mme Ngo Thi Hoa, Ambassador Extraordinary and Plenipotentiary to the Netherlands and the Board of the Netherlands-Vietnam Chamber of Commerce hosted a well attended meeting on the occasion of the recent signing of the EU-Vietnam Trade and Investment Agreements (EVFTA) on Thursday 18 July 2019 at the Embassy of the Socialist Republic of Vietnam to the Netherlands. The interest in the meeting was so large, extra chairs had to be brought in to seat the more than 50 guests.
The meeting was moderated by Mr. Koos van Eyk, the Vice Chairman of the NVCC. Following a speech by H.E. Mme Ngo Thi Hoa, Ambassador Extraordinary and Plenipotentiary to the Netherlands, presentations were made by Mr. Hans Peter van der Woude, Dutch Ministry of Foreign Affairs and by Mr. Joost Vrancken Peeters, Chairman of the NVCC.
The meeting was concluded with a reception.
You can find an album with photos taken during the event here.
The EU has published a Guide to the EU-Vietnam Trade and Investment Agreements. The EVFTA was signed in Hanoi on 30 June 2019.
You can find a copy of the guide here.
The Council of Ministers today (25th June 2019) approved the EU-Vietnam trade and investment agreements, paving the way for their signature and conclusion. EU Commissioner for Trade Cecilia Malmström and Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea will sign the agreement on the EU’s behalf in Hanoi on Sunday 30 June. The agreements are set to bring unprecedented benefits for European and Vietnamese companies, consumers and workers, while promoting respect for labour rights, environmental protection and the fight against climate change under the Paris Agreement.
President of the European Commission Jean-Claude Juncker said:
“I welcome the decision taken today by EU Member States. After Singapore, the agreements with Vietnam are the second to have been concluded between the EU and a Southeast Asian country, and represent stepping stones to a greater engagement between Europe and the region. It is also a political statement by two partners and friends standing together for open, fair and rules-based trade.”
Commissioner for Trade Cecilia Malmström said:
“I am very pleased to see that Member States have given a green light to our trade and investment agreements with Vietnam. Vietnam is a vibrant and promising market of more than 95 million consumers and both sides have much to gain from stronger trade relations. Beyond the clear economic benefits, this deal also aims to strengthen respect for human rights as well as protecting the environment and workers’ rights. I welcome Vietnam’s engagement in the process so far – their recent ratification of the International Labour Organisation Convention on collective bargaining is an excellent example of how trade agreements can encourage higher standards.”
The trade agreement will eliminate nearly all customs duties on goods traded between the two sides in a progressive way that fully respects Vietnam’s development needs. The agreement also contains specific provisions to remove technical obstacles, such as those in the car sector, and will ensure that 169 traditional European food and drink products recognised as Geographical Indications are protected in Vietnam. Thanks to the agreement, EU companies will also be able to participate in bids for procurement tenders in Vietnam on an equal footing with domestic companies. Besides offering significant economic opportunities, the EU and Vietnam have agreed strong sustainable development measures. This includes a commitment to implement the Paris climate agreement effectively. The agreement also commits both sides to respect and effectively implement the principles of the International Labour Organisation (ILO) concerning fundamental workers’ rights. To this end, Vietnam has recently ratified the ILO Convention on collective bargaining and has notified the EU of its intention to ratify the two outstanding fundamental ILO conventions by 2023 at the latest. It is also in the process of reinforcing its labour legislation. The agreement also establishes dedicated platforms for the EU and Vietnam to involve civil society in the implementation of these commitments. In addition, the trade agreement includes an institutional and legal link to the EU-Vietnam Partnership and Cooperation Agreement, allowing appropriate action in the case of human rights’ breaches.
The investment protection agreement includes modern rules on investment protection enforceable through the new Investment Court System and ensures that the right of the governments on both sides to regulate in the interest of their citizens is preserved. It will replace the bilateral investment agreements that 21 EU Members States currently have in place with Vietnam putting in place new legal guarantees preventing conflict of interest and increasing transparency.
What is the next step ?
Following the endorsement by the Council, the agreements will be signed by the EU and Vietnam and presented to the European Parliament for consent. Once the European Parliament has given its consent, the trade agreement can be officially concluded by the Council and enter into force, while the investment protection agreement will first need to be ratified byMember States according to their respective internal procedures.
Vietnam is the EU’s second largest trading partner in the ASEAN region after Singapore, with trade worth €49.3 billion for goods and over €3 billion for services. While EU investment stock in Vietnam remains modest standing just at €6 billion in 2017, an increasing number of European companies are establishing there to set up a hub to serve the Mekong region. Main EU imports from Vietnam include telecommunications equipment, footwear and textiles, furniture and agricultural products. The EU mainly exports to Vietnam goods such as machinery and transport equipment, chemicals and food and beverages.
The agreements reached with Vietnam, alongside those signed recently with Singapore, help paving the way for a future region-to-region agreement with the entire Association of Southeast Asian Nations (ASEAN).
Saigon Times, 1 June 2019 – Foreign direct investment (FDI) approvals in Vietnam last month reached US$2. 15 billion, bring in the total FDI pledges in the first five months to US$16.75 billion, surging 69.1% year-on-year and the highest Jan.-May FDI over the past four year
According to the Foreign Investment Agency under the Ministry o Planning and Investment, 1,363 FDI projects with total registered capital of US$6.46 billion were licensed in the period, up 38.7% year-on-year. In addition, 505 operational projects were allowed to increase capital by a combined US$2.63 billion, up 5.5%. Meanwhile, foreign capita! inflow from 3,160 mergers and acquisitions deals amounted to US$7.65 billion, 2.8 times higher than the figure a year ago.
FDI capital disbursement in the five-month period was reported a US$7.3 billion, up 7.8% from a year earlier.
New FDI capital was mainly poured into the processing and manufacturing sector, at over US$10.5 billion the real estate sector at US$1.1 billion, and wholesale and retail US$74 million.
Among the 88 countries and territories making fresh investment in Vietnam, China, including Hong Kong, took first place, with US$7.1 billion. South Korea carne second with US$2.62 billion, and Singapore third with US$2.09 billion.
Hanoi attracted the largest FDI capital, at some US$4.8 billion, followed by HCMC, at US$2.7 billion, and the Southern province of Binh Duong US$1.25 billion.
Nowadays I receive many questions from companies about the so-called “China plus One” strategy. In this article I will explain the concept of the China plus One strategy, the reasons why more companies are looking into it and the reasons why Vietnam is such a popular destination. In a next article I tell more about how to implement such a strategy.
past three decades China has become a major production center and also a very
important consumer market. Today the Chinese economy is still growing and offers
many opportunities for companies to expand and grow. However, more companies nowadays are looking more
closely to their China operations. The obvious reasons for US companies of
course being the growing tension between the US and China and the resulting
trade war and tariff increases. But I US companies are not the only ones
approaching me, , more and more European companies too want to discuss the
China plus One strategy.
The China plus One strategy can best be described as the strategy whereby companies with an existing investment in China are also setting up a company or production facility in a ‘nearby’ location. The most popular nearby locations are Vietnam, Cambodia, Thailand and Indonesia. But why do international companies want to spread their investment across multiple countries, next to China. As stated above China still offers a lot of advantages as manufacturing base and of course as soon to be biggest consumer market it the world.
When asked about their motives, most companies mention a concern about the rising costs in China, predominantly labor costs. Many investments in China were driven by getting access to low labor costs and there is no doubt that China is no longer the lowest cost source. The minimum wages in most countries around it are lower. However, lower costs are not the only reason. Many companies also mention the risk of being active in a transitional economy. China faces political, economic and social changes, which may bring pressures. Another motive is the changing business climate in China. Although China still welcomes foreign investment, it has also become more selective. And last but not least, some companies do not wish to be depended on one market and one production location. They want to take advantage of the growing middle class in most countries that are a member of the Association of Southeast Asian Countries (ASEAN).
What explains the popularity of Vietnam in the China plus One strategy? Most companies mention five reasons.
The first being the Vietnamese labour force. Not only because the wages are lower. Due to China’s ageing population, it is not so easy to find enough workers. Vietnam offers a young and dynamic workforce, even if this workforce still needs to be developed into a skilled one. Another reason is that Vietnam is close to China. This means lower costs of transport and since production is nearby, manufacturers can limit delay times. A third reason is that Vietnam is close to regional shipping lines, is rapidly improving its infrastructure and has more than 100 ports, many of them capable of handling deep sea ships. Vietnam also offers a relatively stable government and the government has worked hard to improve the business laws. Last but not least Vietnam is very active in free trade agreements.
As a member of ASEAN, Vietnam has access to several agreements ASEAN has signed. In August 2018, the EU and Vietnam agreed on the final texts for the EU-Vietnam trade and investment agreements (EVFTA). This EVFTA is expected to be ratified soon. The EVFTA contains full dismantling of nearly all tariffs except for a few tariff lines that are subject to duty-free tariff rate quotas. Moreover, the EVFTA also offers a modern and reformed investment dispute resolution mechanism which guarantees the respect of the substantive investment protection rules applicable to European and Vietnamese investors.
So, based on the above, it is not surprising that many companies set up a second facility in Vietnam. How to set up such a facility and the factors to consider will be the topic of my second article on Vietnam the one in China plus one.
This article was written by Joost Vrancken Peeters, chairman of the NVCC and partner Asia Practice at law firm Kneppelhout & Korthals.
More than twenty members and guests of the Netherlands Vietnam Chamber of Commerce joined an interesting and sunny visit to the Royal IHC shipyards in Krimpen aan den IJssel and Kinderdijk on Friday 24th May 2019.
Chairman Joost Vrancken Peeters was delighted to welcome, as special guests of the Chamber, H.E. Ambassador Ngo Thi Hoa and Mr. Nguyen Hai Tinh, Commercial Counsellor of the Embassy of Vietnam.
At the Royal IHC shipyard in Krimpen aan den IJssel, the NVCC delegation was warmly received by Mr. Dingeman van Woerden, Area Sales Manager of Royal IHC.
After donning special safety vests, shoes and spectacles, the delegation made a tour around the yard, where, in a huge hall, the reel lay vessel SEVEN VEGA was nearing completion for the launch, one day later.
After the visit in Krimpen aan den IJssel, the delegation moved by watertaxi to the Royal IHC location in Kinderdijk. After lunch, Ambassador Ngo Thi Hoa updated the NVCC members and guests about the developments in Vietnam.
Mr Dingeman van Woerden gave a fascinating presentation about the history of Royal IHC and its current projects.
During the afternoon, the delegation was split up in two groups who toured the Kinderdijk wharf where, at present, the largest cutter suction dredger in the world, the Spartacus, is moored for final fittings.
In the training centre, Mme Ngo thi Hoa and others had the opportunity to try out the dredging simulator and ‘virtually’ deepened the River Maas in the Centre of Rotterdam.
Note about photo album: The NVCC cannot publish, due to legal restrictions, photos showing the Seven Vega and the Spartacus.
The Hague, 19 May 2019.
The Chairman of the Netherlands Vietnam Chamber of Commerce, Mr Joost Vrancken Peeters, had a meeting on 19 May with the Party Secretary of Ho Chi Minh City, Mr Nguyen Thien Nhan. The Ambassador of the Socialist Republic of Vietnam, H.E. Madame Hoa, Economic Counsellor Mr Tinh and NVCC Board Member Hanh Do were also present at the meeting.
Key topic of the meeting: the importance of co-operation between Vietnamese and Dutch companies. Mr Nhan endorsed the importance of the role the NVCC plays in this co-operation.
In Q1, FDI enterprises made an estimated export turnover of US$ 58.51 billion, representing a year-on-year rise of 4.7 pc, the Ministry of Industry and Trade (MoIT) reported.
Including crude oil, the FDI sector earned US$41.46 billion of export turnover, occupying 70.9pc of total export volume.
Overseas shipment of the processing and manufacturing industry grew 6.1pc in Q1, contributing 83.8pc of total export turnover.
Nine commodities earned over US$ 1 billion of export turnover of which seven gained over US$ 2 billion of export turnover.
The MoIT reported that in Q1, FDI enterprises engaged in 18 sectors especially the processing and manufacturing industry which absorbed US$ 8.4 billion, accounting for 77.7pc of total registered capital.
On the other hand, in Q1, the FDI sector imported US$ 33.89 billion of goods, up 6pc against the same period last year.
Hence, in the first three months, the sector ran a trade surplus of US$ 7.57 billion.