Joining CPTPP – Opportunity for Vietnam to Attract Quality Investors

 The UK discussed for the first time with all CPTPP members, including Vietnam, to discuss joining this agreement.

Pursuing the goal of joining the CPTPP is one of the UK government’s priorities and is an important part of the free trade strategy.

Becoming a CPTPP member not only opens new opportunities for UK businesses, but also promotes investment and trade as well as develops sustainable economic cooperation between the UK and CPTPP members.

British companies have invested nearly 98 billion pounds (125.27 billion USD) in CPTPP members in 2018. By 2019, the value of trade transactions between the UK and CPTPP member countries is more than 110 billion pounds.

CPTPP will help complement bilateral trade agreements that the UK has entered or is negotiating with CPTPP members.

Currently, the UK and Vietnam are also working hard to translate the EU-Vietnam Free Trade Agreement (EVFTA) into the UK-Vietnam Bilateral Trade Agreement later this year. This will ensure continuity and bring commercial benefits to both British and Vietnamese businesses; at the same time, British businesses coming to Vietnam to set up company will also want to take advantage of attractive trade conditions.

The UK is the 15th largest investor in Vietnam in terms of investment accumulation and the 13th largest investment country in 2019. British investors who are present in Vietnam include HSBC financial services firms, Standard Chartered Bank, Prudential; Jardines in real estate; AstraZeneca and GSK in the pharmaceutical sector…

In 2019, bilateral trade in goods and services between Vietnam and the UK reached about 5.8 billion pounds (7.41 billion USD). The total trade turnover between the two countries grew at an average rate of 13% per year in the 2009-2019 period.

According to the World Economic Forum’s (WEF) Global Competitiveness Report, Vietnam’s global competitiveness 4.0 has significantly improved. Vietnam has also announced a national vision for the development of a digital economy with the goal that by 2030, a digital economy will reach 25% of GDP.

These are areas where the UK can help Vietnam such as smart city development, digitalization in construction and healthcare, fintech application to support inclusive business and financial growth.

The CPTPP will reduce tariffs between member countries by 95% and establish modern rules in areas that are increasingly important to UK businesses, including digital commerce, data, finance, and professional and business services. It is expected that areas like fintech, medtech and AI will grow rapidly.

Vietnam is the leading anti-Covid-19 country in the region. This is not only a testament to a strong public health, but also demonstrates Vietnam’s resilience. The International Monetary Fund (IFM) forecasts that Vietnam’s economic growth in 2020 will reach 2.7%. Vietnam has become the fastest growing economy in the region, outside Singapore; increasingly open to global trade…

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Joining CPTPP – Opportunity for Vietnam to Attract Quality Investors

 The UK discussed for the first time with all CPTPP members, including Vietnam, to discuss joining this agreement.

Pursuing the goal of joining the CPTPP is one of the UK government’s priorities and is an important part of the free trade strategy.

Becoming a CPTPP member not only opens new opportunities for UK businesses, but also promotes investment and trade as well as develops sustainable economic cooperation between the UK and CPTPP members.

British companies have invested nearly 98 billion pounds (125.27 billion USD) in CPTPP members in 2018. By 2019, the value of trade transactions between the UK and CPTPP member countries is more than 110 billion pounds.

CPTPP will help complement bilateral trade agreements that the UK has entered or is negotiating with CPTPP members.

Currently, the UK and Vietnam are also working hard to translate the EU-Vietnam Free Trade Agreement (EVFTA) into the UK-Vietnam Bilateral Trade Agreement later this year. This will ensure continuity and bring commercial benefits to both British and Vietnamese businesses; at the same time, British businesses coming to Vietnam to set up company will also want to take advantage of attractive trade conditions.

The UK is the 15th largest investor in Vietnam in terms of investment accumulation and the 13th largest investment country in 2019. British investors who are present in Vietnam include HSBC financial services firms, Standard Chartered Bank, Prudential; Jardines in real estate; AstraZeneca and GSK in the pharmaceutical sector…

In 2019, bilateral trade in goods and services between Vietnam and the UK reached about 5.8 billion pounds (7.41 billion USD). The total trade turnover between the two countries grew at an average rate of 13% per year in the 2009-2019 period.

According to the World Economic Forum’s (WEF) Global Competitiveness Report, Vietnam’s global competitiveness 4.0 has significantly improved. Vietnam has also announced a national vision for the development of a digital economy with the goal that by 2030, a digital economy will reach 25% of GDP.

These are areas where the UK can help Vietnam such as smart city development, digitalization in construction and healthcare, fintech application to support inclusive business and financial growth.

The CPTPP will reduce tariffs between member countries by 95% and establish modern rules in areas that are increasingly important to UK businesses, including digital commerce, data, finance, and professional and business services. It is expected that areas like fintech, medtech and AI will grow rapidly.

Vietnam is the leading anti-Covid-19 country in the region. This is not only a testament to a strong public health, but also demonstrates Vietnam’s resilience. The International Monetary Fund (IFM) forecasts that Vietnam’s economic growth in 2020 will reach 2.7%. Vietnam has become the fastest growing economy in the region, outside Singapore; increasingly open to global trade…

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Vietnam attracts Korean investment in research and development

  In recent times, the investment shift out of China is being carried out by many international investors. Vietnam is a country that has enough factors to receive investment shift, especially in the manufacturing sector with low-cost labor and low expenses. However, at present, Vietnam has changed its method of attracting FDI, instead of taking advantage of low expenses and low-cost labor, Vietnam now aims to take advantage of highly skilled workers and many incentives in research and development activities.

Recently, many Korean investors have plans to change production lines, invest in research and development (R&D) company in Vietnam. Previously, Korean businesses mainly invested in industries such as apparel, bags, and footwear, however, recently many Korean investors have made investments in industries such as high electronics, information technology, automotive and construction equipment, distribution and service industries.

Currently, Korea is the leading country in the list of countries investing in Vietnam. Previously, a joint venture between Korean and Vietnamese businesses proposed to the Dong Nai province government to invest and build a Vietnam-Korea Hi-Tech Park with an area of ​​300 hectares, total investment capital of 150 million USD. The project aims to attract high-tech enterprises from Korea as well as other developed countries to set up company in Dong Nai in order to create quality product values ​​in the fields that shape the industrial revolution 4.0. The project is expected to attract 2 to 3 billion USD of investment capital in about 6 – 9 years after it is put into operation.

In addition, Korean investors have also cooperated with Vietnamese partners to build a Science and Technology Industrial Park with an area of ​​900 hectares in Binh Duong. In addition, many Vietnamese investors have actively worked with high-tech manufacturing partners to promote the participation of key partners as well as prepare the first customers.

With the policy of attracting investment in high technology and in particular the Investment law 2020, there are special investment incentives for newly established investment projects (including the expansion of the establishment project), the centers for innovation, research and development centers with total investment capital of 3,000 billion VND (about USD 150 million) or more, disbursing at least 1,000 billion VND within first 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy; a national innovation center established by decision of the Prime Minister; Investment projects in sectors or trades specially given investment incentives with an investment capital of VND 30,000 billion (about USD 1.5 billion) or more, with a minimum disbursement of VND 10,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy” will be given special incentives in accordance with the provisions of corporate income tax and land law.

As the investment attraction and investment shift preparation of Korean R&D enterprises, Vietnam hopes to become an investment destination for Korean high-tech enterprises in the future to establish company.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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