Vietnam investment – CRI Report

2024 Factory Rental and Industrial Land Rental in Vietnam – Quotes and Visits

admin — Wed, 13 Mar 2024 15:02:03 +0000

Factory Rental and Industrial Land Rental in Vietnam – Quotes and Visits

CRI Team Assists You in Factory Rental and Industrial Land Rental in vietnam. We provides quote and visiting services.

In today’s globalized economy, Vietnam has emerged as a hotspot for manufacturing and industrial investment. Its rapid development, stable economic environment, abundant labor resources, and open policies towards foreign direct investment make it an ideal choice for numerous international enterprises. For industrial businesses, a top priority when considering investment is to find suitable factories or industrial sites in Vietnam.

In this context, CRI Team collaborates with local industrial parks and landowners in Vietnam to provide enterprises with a range of reasonably priced, well-located factories and industrial land options, dedicated to helping your business swiftly launch and expand in Vietnam.

Factory buildings for Rent in Bac Ninh Province, Vietnam Advice from Yuanzhe Consultancy for Enterprises Planning to Invest in Vietnam: If the investment budget is limited, Yuanzhe Consultancy suggests considering renting factories in Vietnam to reduce cost pressure.

Call us: +86-21-6150 9726

Factory buildings for Rent in Bac Giang Province, Vietnam If the budget allows, CRI recommends enterprises to consider leasing land in Vietnam for constructing factories, with lease terms of up to 50 years. Constructing factories on leased land can save a significant amount of costs.

Call us: +86-21-6150 9726

Industrial Land for Rent in Bac Ninh Province, Advantages of Vietnamese Factories and Land Recommended by CRI:

Prime Location: The factories and industrial land in Vietnam, in collaboration with CRI, are located in several important economic zones in the northern part of Vietnam, such as Bac Ninh, Bac Giang, Hung Yen provinces, and the important port city of Hai Phong. These areas are not only close to major transportation networks such as international airports, seaports, and highways but also facilitate access to a wide range of supply chain networks and supporting services.
Flexible Design and Planning: Most of factory buildings recommended by CRI are designed flexibly and can be reasonably modified to meet the specific requirements of enterprises from different industries. Whether you need high-standard factories, warehouse facilities, or intend to establish Export Processing Enterprises (E-P-E), CRI can provide suitable advice.
Cost Efficiency: Vietnam offers comprehensive labor costs lower than many countries, which is particularly attractive for labor-intensive industries.
One-stop Service: CRI can provid business visa application services and arranging visits to factories and land to negotiating with Vietnamese landlords. We provide one-stop services to ensure your business can start and operate smoothly in Vietnam. From the time you confirm cooperation with CRI, it takes approximately one week to visit factories and land in Vietnam.

Local legal advisors and accounting firms in Vietnam will also address matters to be noted when investing in Vietnam as a foreign investor and the process of establishing foreign-invested enterprises.

Original post: https://www.yuanzhezixun.com/plant-rental-and-land-leasing-in-vietnam-cri/

The post 2024 Factory Rental and Industrial Land Rental in Vietnam – Quotes and Visits first appeared on CRI Report.

Vietnam Securities Market Has a Good Prospect

admin — Mon, 15 Jul 2019 02:36:29 +0000

There are two stock exchanges in Vietnam. The larger one is Ho Chi Minh Stock Exchange (HOSE) which is located in Ho Chi Minh City, the largest city of Vietnam. Established in 1997, it is the first stock exchange in Vietnam. The smaller one is Hanoi Stock Exchange (HNX) which is located in Hanoi, the capital of Vietnam. At the end of 2018, HOSE accounted for over 90% of the aggregate market value of about USD 170 billion of the two stock exchanges. HNX plays an important role in the listing of small and medium-sized companies, the bond market and the derivatives market.

According to CRI, at the end of 2018, over 2.10 million individual investors, including nearly 30,000 foreign individual investors, had a securities account in Vietnam. The number of individual investors was equivalent to about 2% of Vietnam’s population. Less than 5% of the securities accounts opened by individual investors were active. Although Vietnam’s securities market is dominated by individual investors, the number of institutional investors is also growing. At the end of 2018, there were 9,100 institutional investors in Vietnam. The number of foreign institutional investors reached 3,242, increasing by about 1% YOY. At present, the average daily turnover of stocks in Vietnam is less than USD 200 billion. The price limit for a normal trading day is 10%.

A-Share Listed Securities Companies – Profiles and Financial Data

According to CRI, low trading capacity and low liquidity (T+2) make Vietnam’s stock market less attractive to foreign investors to some extent. However, this situation is expected to change as the Vietnamese government is introducing measures to increase market liquidity and expand the stock market. On one hand, the government is reducing or withdrawing investment in state-controlled enterprises by advantage of capital market. More large enterprises are planning to go public， which is regarded as a good investment opportunity by all parties on the market. On the other hand, Vietnam is considering reform of its securities trading system. The plan is to achieve T+0 trading by the end of 2019 to improve stock liquidity.

Vietnam’s GDP is growing at an annual rate of more than 7%. Foreign investment is pouring into Vietnam, which will definitely promote the growth of Vietnam’s stock market.

According to CRI, the Vietnamese government has honored its WTO commitments and opened its securities market. The securities companies in Vietnam mainly engage in brokerage business with commission rate of about 0.15%. They can also engage in margin trading and securities lending, issue letters of guarantee (similar to the letters of guarantee by Chinese commercial banks) to grant loans to investors at annual interest rates of more than 10%. In addition, they provide investment bank services with a minimum commission of only USD 10,000. With passport, foreign investors can open accounts with local securities companies and banks. Lacking financial knowledge, Vietnamese people would rather invest in the real economy than invest in securities. As their income rises, more people will participate in the securities market.

Dominated by foreign investment, Vietnam’s fund management industry has a large scale. The amount of assets managed by the largest fund in Vietnam exceeds USD 1 billion. For example, Bill & Melinda Gates Foundation has dozens of funds in Vietnam, and the smallest one manages more than USD 10 million. Chinese financial companies such as Ping An Asset Management Co., Ltd. are also entering the Vietnamese market.

Thanks to loose regulation of foreign exchange, international funds continue to flood into Vietnam’s capital market where fund lows is unrestricted and personal capital gains are tax-free. With the introduction of favorable policies, foreign funds are flowing into Vietnam’s securities market.

According to CRI, on July 10, 2019, VNINDEX (HSX) closed at 973.65 points, up about 9% from the beginning of 2019; the turnover was about VND 3.87 trillion (USD 165 million).

CRI estimates that the dynamic price-to-earnings (P/E) ratio of stocks in Vietnam is lower than 15. The P/E ratios of consumable stocks and bank stocks are 20 or higher while the P/E ratios of real estate stocks and electricity stocks are low. In Vietnam, most listed companies like passing dividends, which leads to high dividend yields. Some companies have dividend yields of 50% or 60% and even see dividends exceed market value mainly because listed companies in Vietnam prefer cash dividends. Some listed companies in Vietnam may defraud investors by creative accounting. It is advised to avoid buying stocks with high risks.

For more information about Vietnam’s securities market, please call +86-21-6150 9726.

[contact-form-7]

The post Vietnam Securities Market Has a Good Prospect first appeared on CRI Report.

Vietnam’s Consumer Market Has Huge Growth Potential

admin — Mon, 15 Jul 2019 02:31:55 +0000

Vietnam’s per capita GDP was only USD 2,540 in 2018, which was less than one third of China’s and lower than that of Singapore, Thailand, Malaysia and other ASEAN countries. However, Vietnamese people spend little on housing, education and medical services and have low savings rate, making consumption as the major driver of economic growth.

According to CRI, consumption is a major contributor to Vietnam’s GDP. Household consumption is closely related to final consumption expenditure. Since 1995, final consumption expenditure has been accounting for more than 70% of Vietnam’s GDP, and household consumption has been accounting for nearly 90% of Vietnam’s final consumption expenditure. In recent years, the CAGR of consumption expenditure in Vietnam is 10%, which is higher than GDP growth rate. Consumption expenditure contributes a significant share of Vietnam’s economic growth.

Vietnam has a population of nearly 100 million. The mainstream of its population is people aged between 20 and 50 who have strong spending power. Different from Chinese people, Vietnamese people prefer consumption to savings. Statistics show that the savings rate in China is 60% while that in Vietnam is less than 30%. A young population means huge consumption potential.

According to CRI, Vietnam has a low savings rate and a narrow wealth gap. Its savings rate increased all the way from less than 5% in 1990 to 30% in 2000, began to decrease in 2001 and reached about 25% at the end of 2018. Overall, the savings rate in Vietnam is lower than that in China. The Gini coefficient in Vietnam stays between 0.4 and 0.45, which is lower than that in many other development countries. Because the Vietnamese government invests a lot in compulsory education and basic medical services and most Vietnamese people live in self-built houses, Vietnamese people needn’t pay much for education, medical services and housing, and the wealth gap in Vietnam is narrow. But as Vietnam’s economy grows rapidly, the wealth gap is becoming wider.

According to CRI, household consumption in Vietnam includes the consumption in retail trade, tourism, catering trade, e-commerce, education and training, etc. Traditional retail trade takes a leading position and the shares of tourism and catering trade are growing rapidly. Although retail trade accounts for a large proportion of household consumption in Vietnam. Its growth rate and share is decreasing in recent years. In contrast, tourism, accommodation and catering trade account for a small proportion but they are growing fast and their shares are increasing sharply as driven by the continuous flows of foreign tourists and investors. The number of foreign tourists to Vietnam was 5 million in 2010 and 15.50 million in 2018, representing a CAGR of 12%. In 2018, the number of Asian tourists to Vietnam reached 12,075,500, increasing by 23.70% YOY; the number of European tourists reached 2,037,900, increasing by 8.10% YOY. In 2018, the three largest sources of foreign tourists to Vietnam were China, South Korea and Japan. The number of Chinese tourists reached 4,966,500, increasing by 23.90% YOY; the number of South Korean tourists reached 3,485,400, increasing by 44.30% YOY; the number of Japanese tourists reached 826,700, increasing by 3.60% YOY.

Vietnam’s sales figures are closely related to per capita income. Improving spending power is the key to stimulating consumption in Vietnam. Consumption growth mainly depends on the ability and the willingness to consume. Per capita income is a key indicator of the ability to consume. A comparison shows that the growth rates of Vietnam’s GDP and total retail sales of consumer goods are highly correlated. In case of low income level, stronger spending power helps accelerate consumption growth. Therefore, the high correlation between Vietnam’s per capita GDP and sales figures from 1998 to 2018 indirectly reflects that the increase in disposable income has improved spending power and boosted household consumption. As Vietnam’s per capita GDP is still at a low level, it is expected that Vietnam’s total retail sales of consumer goods will grow significantly in the next 10 to 20 years.

According to CRI, in addition to the increasing personal income, the new driving forces for Vietnam’s consumer market also include:

Expansion of e-commerce market

The market size of e-commerce in Vietnam in 2018 is estimated to be USD 9 billion to USD 12 billion by different institutions. CRI estimates that the market size was USD 10 billion, and it will grow at a CAGR of 25% to 30% from 2019 to 2023.

Fast growth of mobile Internet and mobile payment

In Vietnam, especially in large cities, mobile payment has become popular among consumers because of convenience and safety. Vietnam has developed fast and inexpensive mobile Internet services. Over half of Vietnamese people have two or more mobile phones. In large cities of Vietnam, people spend an average of 3.5 hours per day online, second only to Singapore among the 10 ASEAN countries. Vietnamese people go online on their mobile phones to get information, do business and carry out other activities.

Rapid development of high-end services

Many Vietnamese people are willing to invest in education and training. For example, many people attend classes to learn English, Japanese and financial knowledge and have their children take extracurricular foreign language courses and art courses. The development of high-end services can promote the growth of Vietnam’s consumer market.

If you are interested in investing in Vietnam’s retail trade and service industry, pleasecall +86-21-61509726 to contact CRI.

[contact-form-7]

The post Vietnam’s Consumer Market Has Huge Growth Potential first appeared on CRI Report.

Vietnam’s Real Estate Industry Keeps Developing

admin — Mon, 15 Jul 2019 02:28:29 +0000

According to CRI’s survey, Vietnam’s real estate market is seeing increasing demand and will have a bright prospect in the next decade. The rapid development of Vietnam’s real estate industry is driven by both supply and demand. On the demand side, the structural consumption resulting from continuous progress in urbanization, objective rate of return on investment and rental yields enable Vietnam’s real estate market to fully meet the purchase demand of investors. The expansion of opening up and favorable policies on foreign investment can satisfy the investment demand of foreign investors. On the supply side, the private ownership of land-use rights in Vietnam ensures abundant supply of land, simple approval procedures for real estate development and low operating costs for real estate developers.

The reasons why Vietnam’s real estate market is promising are as follows:

(1) The low urbanization rate is low.

By the end of 2018, Vietnam’s urbanization rate was only 37%. It is increasing by about 2 percentage points every year but is still at a low level as compared with that in other countries. As Vietnam has a population of nearly 100 million, every 2-percentage-point increase in urbanization rate will result in the migration of about 2 million rural residents to urban areas. As urbanization continues in Vietnam and rural residents migrate to cities, the demand for commodity housing will increase and such rigid demand will drive Vietnam’s real estate development for a long time to come.

(2) The absolute housing prices are low, showing huge growth potential.

According to CRI’s market survey the housing prices in Vietnam show high price-to-rent ratios. In China’s first-tier cities such as Shanghai and Beijing, the price-to-rent ratio for an ordinary apartment is between 600 and 1,000. (The price of a house is equivalent to 600 to 1,000 months of rent.) In Vietnam. the price-to-rent ratio is generally below 200. The low commodity housing prices in Vietnam can satisfy the demand for housing for both personal use and investment purpose. For people who buying houses for personal use, the housing prices are acceptable. In Vietnam’s first-tier cities such as Ho Chi Minh City, the price of an ordinary apartment is about 1,000 USD/square meter, which is equivalent to two months’ average wages. In China’s first-tier cities, the price of an ordinary apartment exceeds 7,000 USD/square meter, which is about seven months’ wages of ordinary people. Therefore, the housing prices in Vietnam still have great growth potential. According to CRI’s estimate, in 2018, the returns from investment in an apartment in Ho Chi Minh City, the largest city of Vietnam, was about 8% to 10%. (Ho Chi Minh City is to Vietnam as Shanghai is to China and New York is to the United States.)

(3) The private ownership of land-use rights facilitates land supply.

Vietnamese law stipulates that land ownership belongs to the “people”. (Some people believe that Vietnam’s land is state-owned.) But the ownership of land-use rights is private. Vietnam’s Land Law has been revised several times. Vietnam enacted its first Land Law in 1987, the second edition in 1993, the third edition in 2003 based on the revisions and supplements made in 2001 and the fourth edition on November 29, 2013. According to the Land Law currently in force, land use terms in Vietnam include long-term and stable use and definite-term use. Long-term and stable use can be regarded as permanent use. And a definite term may be five years, 20 years, 50 years, 70 years or 90 years. When the definite term expires, it can be extended free of charge. Individual and enterprise owners of land-use rights can enjoy the results of the labor and investment on land. They may also exchange, transfer, lease, sublease, inherit, donate, mortgage land-use rights and contribute land-use rights as capital. In addition, forced demolitions are prohibited. The private ownership of land-use rights guarantees the stability of Vietnam’s real estate market. The Land Law has also supporting policies for foreign-funded enterprises. According to the 2013 edition of the Land Law, foreign investors are not allowed to purchase land in Vietnam, but they can obtain land-use rights by lease. The land use term is usually 50 years and no longer than 70 years and can be extended after expiration.

(4) High-end houses are favored by foreign investors.

According to CRI, foreign investors, especially Chinese investors, are confident in the development of high-end houses (with an average price of higher than 1,000 USD/square meter) in Vietnam. On July 1, 2015, the new Housing Law came into force, which cancelled restrictions to encourage foreigners to purchase houses in Vietnam. As a result, the supply and demand on Vietnam’s real estate market has been booming since 2015. The supply and sales of houses in Ho Chi Minh City in recent years show that the proportions of luxury houses and high-end houses has increased sharply since 2015 and foreign investors are optimistic about the high-end house market. Compared with other emerging economies, Vietnam has attracted masses of foreign investors in recent years. And the real estate market is an important option for investors to allocate assets. According to CRI’s market survey, the proportion of foreign investors who purchase apartments in Vietnam for investment purpose keeps increasing and is 90% in July 2019.

Procedures for Purchasing a House in Vietnam

According to CRI’s survey, Vietnam has specific procedures for house sales and house payments. House buyers should make house payments and pay taxes according to contract in five stages of the house purchase procedures. The VAT and certificate fees are usually directly included into housing prices. Developers make payments to constructors according to construction progress and investors make payments according to contract. In Vietnam, mortgage loans are not the mainstream of investor loans. Moreover, foreign investors are not allowed to purchase houses by mortgage payments. For Vietnamese, the maximum proportion of mortgage payments is 50% in the total payments for a high-end house and 10% in the total payments for a low-end house. This is to stimulate the purchase of high-end houses. But foreigners cannot apply for a home mortgage loan in Vietnam.

Procedures for Purchasing a House in Vietnam

Stage	Payment schedule	Particulars
Booking	Paying earnest money	Booking is generally not allowed by law. However, booking usually occurs one to three months before official sales. Developers collect earnest money in the name of membership fee. The amount of earnest money is between USD 2,000 and USD 5,000.
Making advance payment when sales begin	It is up to the developer to decide whether there is advance payment or not. When advance payment is required, the amount of advance payment is usually 30% of the housing price.	When the developer has met the sales conditions, the buyer will sign the subscription contract and make advance payment, or directly sign the sales contract without making advance payment.
Signing the sales contract	Making 20% payment before house delivery	The sales contract is usually signed in seven to 14 days after the subscription contract is signed. When the sales contract is signed, the advance payment will be regarded as a part of house payments. After the sales contract is signed, the buyer should pay the first installment, which is 20% or 30% of the house payments and includes the advance payment. The following installments should be paid as scheduled by the developer. Before house delivery, 50% payment should have been made. House delivery usually takes two to four years.
House delivery	Making 45% payment	When the house is delivered, the buyer should make 45% house payment, pay the maintenance fee (2% of the purchase value) and sign the property management agreement.
Getting the property ownership certificate	Making 5% payment	Property ownership certificate application begins after house delivery. It takes 12 to 18 months to obtain the property ownership certificate. The buyer should make the final payment of 5% when receiving the property ownership certificate.

If you are interested in investing in real estate in Vietnam, please call +86-21-61509726 to contact CRI.

[contact-form-7]

The post Vietnam’s Real Estate Industry Keeps Developing first appeared on CRI Report.

2018 Top 10 Business Foreigners Can Invest in Vietnam

admin — Wed, 29 Aug 2018 08:11:32 +0000

No. 1 Home furniture Making and Remodeling: Home furniture making is a great business because nearly every office or home you step into offers one furniture piece or the additional. Asides that, a whole lot of businesses and businessmen far away source for home furniture from Vietnam that they take to their countries for resale.

Since Vietnam is a favorite place to resource for furniture among furniture importers in a number of countries, it won’t hurt to create your own furniture building company. It doesn’t actually matter in the event that you understand how to make home furniture or not; you can always outsource the creation facet of the business when you concentrate on advertising and advertising your business. Another strategy to use about any of it is to take the time out to figure out how to make and remodel home furniture.

No. 2 Garment and Textile Items: Garment and Textile producing is another lucrative business in Vietnam because Garments and Textiles are among items that Vietnam exports. You may also focus on making ready-to-wear clothing or start your personal clothing line. However, if you think that it would be too costly to begin your own textile and garment Production Company, you may become a cloth merchant or start an on-line clothing shop. All these businesses are profitable equally.

No. 3 Construction and Building Components: Another great business that you could begin in Vietnam is selling of building and building components. There are therefore many building components that you could sell like cement, roofing materials and house fitting materials. You could also take up a business in the structure support sector like painting solutions, plumbing, home decoration, house renovation, HVAC installation and repair among several others.

No. 4 Detergents and Cosmetics: Detergents are utilized by almost everyone for washing and house cleaning. There are therefore many brands of detergents but that doesn’t imply that you cannot develop something unique and various. There would continually be a demand for a thing that is unique, different from the standard and solves a problem.

For example, you can opt to concentrate on developing car washing detergents or detergents for baby clothing. Both of these niches would look for a ready-made marketplace because people are researching to clean their vehicles without ruining the paint and end, as being a large amount of new parents want for methods to protect their bundles of pleasure from the result of harsh chemical substances in detergents.

No. 5 Agricultural Items Processing: Any business in the meals industry would usually sell so long as the business enterprise owner employs the proper technique to promote and marketplace the business. Agricultural items processing entails sourcing for natural farm create that you can procedure for sale. For example, Tomato puree is manufactured out of tomatoes, Poker chips from natural potatoes and so forth and so forth. You can constantly find an agricultural item that you could process for product sales and export.

No. 6 Exportation: Vietnam exports a whole lot of items like rice which really is a world staple, coffee, Crude oil, shoes, rubber, seafood; electronics; there are simply so many points that you could sell to purchasers from various other countries. To get worldwide buyers, you can visit a website like Find quality Manufacturers, Suppliers, Exporters, Importers, Buyers, Wholesalers, Products and Trade Leads from our award-winning International Trade Site. Import & Export on alibaba.com and many other e-commerce websites; you will look for a lot of individuals looking to buy stuffs from Vietnam.

You can even consider learning to be a product sourcing consultant. What an item sourcing consultant does is usually to link customers and sellers together. For example, there are individuals who would like to purchase stuffs from Vietnam via internet and given that they have never gone to Vietnam, they might need someone they are able to trust who is the Vietnamese or resides in Vietnam to greatly help out.

You could also turn into a freight forwarder for individuals who want to buy stuffs from Vietnam. You may also merge importation and exportation collectively, meaning that you’ll export what to other countries and in addition import from too. Some products you can import consist of raw cotton, petroleum items, cement, fertilizer, electronics and motorcycles.

No. 7 Real Estate: Another rewarding business you can begin in Vietnam is definitely building/buying properties for resale. With the amount of expatriates and immigrants getting into Vietnam, real estate can be a business you won’t regret. You can purchase aged properties to renovate and resell; you can build workplace blocks for lease or small housing models for rent aswell.

However, real estate is certainly expensive business because you will need a lot of capital to purchase real estate. But it’s not really a totally hopeless scenario for the cash-strapped trader, as possible still partake in the true estate business by learning to be a property manager. Just what a property supervisor does is to keep up properties with respect to the owners and generate commission for his providers.

No. 8 Restaurant and Bar: Vietnamese love good meals and drinks. If you like to spend money on the entertainment industry, starting a restaurant and bar is a very lucrative niche in this industry. You might consider establishing a night golf club where people can relax and unwind after a difficult day’s job.

No. 9 Logistics: with haulage and logistics business, you can begin this business without capital by leasing a pickup truck from an organization which would enable you to spread your repayments over a long time period. You can even consider investing in an used truck which is usually cheaper and less expensive. Your clients will be producers, importers, wholesalers, construction businesses and also private individuals.

No. 10 Used Car Seller: Everyone loves a good, clean, completely new vehicle but unfortunately, not everyone can afford it. This is why a lot of individuals resort to buying used vehicles. Car or truck dealers make lots of money simply from assisting people sell their utilized automobiles or importing used vehicles from other countries on the market. You can also turn into a car or truck broker which is very different from a car or truck dealer. As a car or truck broker, you don’t want much cash; what you would be doing is definitely linking individuals who need used vehicles with people who have to sell their vehicles and make commission for it.

Contact us for details:

[contact-form-7]

The post 2018 Top 10 Business Foreigners Can Invest in Vietnam first appeared on CRI Report.