7 Crucial Tips for Selecting the Right Law Firm in Vietnam

  Navigating the legal landscape in a foreign country can be challenging, especially in a rapidly developing market like Vietnam.

For foreigners, understanding how to choose a law firm in Vietnam is essential to ensure that their interests, investments, and personal rights are effectively protected.

With Vietnam’s unique legal system, language barriers, and distinctive business culture, finding the right legal partner is important.

7 Crucial Tips on How to Choose a Law Firm in Vietnam

In the following, we will walk through seven tips to help you select the suitable law firm for your needs in Vietnam.

Why Choosing the Right Law Firm in Vietnam Matters?

Vietnam’s legal system is a unique mix of socialist and civil law traditions. This combination, influenced by historical, political, and cultural factors, presents a series of challenges for those unfamiliar with its complexities.

Whether it’s for setting up a business, understanding labor laws, handling disputes, or navigating real estate regulations, finding a reliable law firm is critical to ensuring compliance and achieving favorable outcomes.

Therefore, understanding how to choose a law firm in Vietnam can make a significant difference in the success of any legal endeavor.

1. Define Legal Needs

Before diving into how to choose a law firm in Vietnam, it’s essential to first define your legal requirements. The legal landscape in Vietnam is diverse, covering various fields including:

• Corporate and Commercial Law: For foreigners looking to establish businesses in Vietnam, or expand existing operations in Vietnam.
• Real Estate and Construction Law: Important for individuals and corporations investing in Vietnam’s booming real estate sector, buying properties in Vietnam, or selling properties in Vietnam.
• Labor and Employment Law: Necessary for employers and foreign entities hiring in Vietnam, as well as expatriates working in the country, for i.e work permits in Vietnam or disputing on labour matters in Vietnam.
• Intellectual Property (IP) Law: Crucial for foreign businesses protecting patents, copyrights, or trademarks in Vietnam.
• Dispute Resolution and Litigation: For cases involving conflict resolution, including arbitration, mediation, and court proceedings in Vietnam.

By understanding and defining your primary legal needs, you’ll be better positioned to evaluate whether a law firm has the expertise and experience required to handle your case.

Different law firms in Vietnam specialize in different fields, so clarifying your needs will streamline the selection process.

2. Assess the Law Firm’s Experience with Foreign Clients

One of the most critical factors in how to choose a law firm in Vietnam is the firm’s experience with foreign clients. Foreign clients face unique challenges, including language barriers, different legal expectations, and often unfamiliarity with Vietnamese law.

A law firm with a strong track record of working with international clients will likely be better equipped to handle these issues, offering:

• Bilingual or Multilingual Services: Language fluency, particularly in English, is essential for ensuring clear communication. Many reputable law firms in Vietnam employ bilingual staff to bridge the communication gap. However, talking directly with lawyers handling and overseeing the matters in English with ease help a lot.
• Understanding of International Standards: Foreigners often expect services to meet international standards in terms of professionalism, transparency, and ethics. A law firm experienced with international clients will be familiar with these expectations.
• Expertise in Cross-Border Issues: From foreign investment laws to international trade, cross-border expertise is invaluable. Firms that handle cases with international implications are more adept at providing comprehensive legal solutions.

3. Research the Law Firm’s Reputation and Credibility

Vietnam has a rapidly growing legal market with numerous firms of varying sizes and reputations. When considering how to choose a law firm in Vietnam, researching a firm’s reputation and credibility should be a priority. Here’s how to do it:

• Look for Recognized Credentials: Awards, certifications, and recognitions from reputable institutions can indicate a firm’s credibility, providing insights into a firm’s standing in the industry.
• Client Testimonials and Reviews: Feedback from previous clients can offer a glimpse into a firm’s strengths and weaknesses. Testimonials on the firm’s website or reviews on forums and legal service platforms can provide valuable insights into the firm’s reliability and client service quality.
• Industry Reputation: Firms with a good industry reputation are more likely to have well-established networks and positive relationships with regulatory bodies, courts, and other essential entities in Vietnam.

4. Evaluate the Law Firm’s Expertise in Vietnamese Law

Understanding how to choose a law firm in Vietnam also involves assessing a firm’s knowledge and expertise in local laws. Vietnam’s legal landscape is complex, and regulations may change frequently. Look for firms with demonstrated expertise in:

• Vietnamese Regulatory Framework: Firms that stay up-to-date on Vietnamese regulations, particularly those impacting foreigners, will be able to offer accurate and relevant advice.
• Localized Knowledge of Vietnamese Business Environment: Beyond legal know-how, a firm with a deep understanding of Vietnam’s business culture and regulatory processes can be a major asset.
• Practice Specialization: Ensure that the firm specializes in the specific area of law you require, as generalists may not offer the depth of expertise needed for more complex cases.

In many cases, larger firms have dedicated departments for each practice area, while boutique firms focus exclusively on specific fields. Matching your needs to the right firm structure is essential.

5. Consider the Firm’s Fee Structure and Transparency in How to Choose a Law Firm in Vietnam

Legal fees in Vietnam vary widely, depending on the complexity of the case, the firm’s size, and the nature of the legal services provided.

When examining how to choose a law firm in Vietnam, pay attention to the fee structure and transparency:

• Understand the Fee Model: Law firms in Vietnam may offer different billing structures, such as hourly rates, fixed fees, or retainer agreements. Knowing which model aligns with your budget and case requirements can help prevent unexpected expenses.
• Request a Detailed Estimate: Many reputable firms provide initial consultations and can offer an estimate of costs based on the scope of work. An upfront estimate helps in budgeting and avoids potential financial surprises.
• Transparency and Contract Terms: Ensure that all terms, conditions, and fees are clearly stated in a contract. This transparency helps protect your interests and establishes a professional relationship built on trust.

It’s advisable to discuss all cost-related matters early in your interactions with a law firm to avoid any misunderstandings or hidden charges.

6. Evaluate the Firm’s Approach to Communication and Client Support

Effective communication is a cornerstone in any legal relationship. When evaluating how to choose a law firm in Vietnam, examine the firm’s communication style, responsiveness, and client support services:

• Communication Channels: Reputable firms should offer multiple communication channels, including phone, email, and in-person meetings. Many firms now use online platforms for ease of access, especially useful for foreigners managing affairs from abroad.
• Timeliness and Availability: Frequent and prompt updates are crucial in legal matters. Check if the firm has policies to ensure timely responses, and consider firms that assign dedicated client managers or case managers to provide regular updates.
• Support for Remote Clients: If you’re managing legal matters from outside Vietnam, look for firms experienced in handling remote clients. Firms that utilize digital solutions for document sharing, virtual consultations, and progress tracking can be a significant advantage.

Choosing a firm that prioritizes clear and consistent communication can reduce stress and ensure you remain informed throughout the legal process.

7. Evaluate the Firm’s Network and Resources

Finally, when assessing how to choose a law firm in Vietnam, it’s beneficial to consider the firm’s network and resources. A well-connected law firm is often better positioned to navigate complex legal and bureaucratic procedures in Vietnam:

• Local and International Network: Firms with strong local ties can navigate Vietnamese legal procedures more efficiently, while firms with international networks can assist with cross-border issues.
• Access to Legal Resources: Well-established law firms typically have extensive libraries, access to research databases, and affiliations with various legal and business associations, all of which can enhance the quality of service.
• Partnerships with Other Service Providers: Many legal matters require interdisciplinary collaboration, such as working with accountants, consultants, or industry specialists. Firms with a robust network of partners can streamline these processes and provide comprehensive solutions.

Final Thoughts on How to Choose a Law Firm in Vietnam

In summary, knowing how to choose a law firm in Vietnam is essential for foreigners dealing with legal matters in the country.

By defining your legal needs, researching reputation, assessing local expertise, and considering communication styles and fee structures, you’ll be well-equipped to make an informed choice.

With Vietnam’s unique legal landscape, selecting a law firm that aligns with your specific requirements can save time, money, and provide peace of mind.

This guide should provide a comprehensive foundation for foreigners aiming to secure top-notch legal representation in Vietnam.

Making an informed decision on how to choose a law firm in Vietnam can mean the difference between a smooth process and unnecessary complications.

Prioritize firms with solid reputations, clear communication, and expertise in Vietnamese law to ensure a successful legal journey in Vietnam.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/how-to-choose-a-law-firm-in-vietnam-tips.html

Cultural Nuances: Building Trust in Vietnamese Private Equity Deals

  Vietnam’s vibrant economy and emerging market status have attracted a growing number of private equity investors seeking opportunities in the country. In this, we will explore the importance of understanding these cultural dynamics and how private equity law firms in Vietnam play a pivotal role in helping investors establish trust and navigate the complexities of the market.

While the potential for lucrative investments is undeniable, navigating the Vietnamese business landscape requires more than just financial acumen. Cultural nuances, local customs, and building trust are vital components of successful private equity deals in Vietnam. 

Cultural Nuances in Vietnamese Business Environment

1. Relationship-Centric Approach: Vietnamese business culture places a significant emphasis on relationships. Building trust and rapport with local partners, business associates, and government officials is paramount. This often involves cultivating personal connections over time, sharing meals, and participating in social activities. Private equity investors need to appreciate the value of these relationships in securing deals and gaining access to opportunities.

2. Respect for Hierarchy and Age: Respect for hierarchy and age is deeply ingrained in Vietnamese society. It’s essential to show deference to senior leaders and decision-makers within an organization. This respect fosters goodwill and opens doors for collaboration. Private equity investors should be aware of these dynamics and adapt their communication and negotiation styles accordingly.

3. Face-Saving: “Saving face” is a fundamental concept in Vietnamese culture. Avoiding confrontation and embarrassment is crucial. Investors should handle disagreements delicately and maintain a harmonious atmosphere during negotiations. Private equity law firms in Vietnam can provide guidance on effective conflict resolution strategies that align with Vietnamese cultural norms.

4. Long-Term Orientation: Vietnamese businesses often prioritize long-term relationships and sustainable partnerships. Quick, transactional approaches may be met with skepticism. Investors who demonstrate a commitment to the local market and a willingness to invest time and resources in building lasting connections are more likely to succeed.

Private Equity Law Firms in Vietnam: Bridging the Cultural Gap

Private equity law firms in Vietnam play a pivotal role in assisting investors in navigating these cultural nuances and building trust. Here’s how they can help:

1. Local Expertise: Private equity law firms in Vietnam possess a deep understanding of the local culture, business practices, and legal landscape. They can provide valuable insights into the cultural dynamics at play, helping investors tailor their approach to establish trust effectively.

2. Partner Identification: Law firms can assist in identifying trustworthy local partners or businesses for collaboration. They conduct due diligence to ensure that potential partners have a solid reputation, strong relationships within the industry, and a commitment to ethical business practices.

3. Negotiation and Communication: Understanding the nuances of negotiation and communication is crucial. Private equity law firms in Vietnam can act as intermediaries, facilitating effective communication between foreign investors and their Vietnamese counterparts. They help investors convey their intentions while respecting cultural sensitivities.

4. Compliance and Regulatory Guidance: Navigating the legal and regulatory aspects of private equity deals in Vietnam is complex. Private equity law firms in Vietnam ensure that all transactions adhere to local laws and regulations, reducing the risk of misunderstandings or legal issues that could harm relationships.

5. Conflict Resolution: In the event of disputes or conflicts, law firms can provide mediation and dispute resolution services that align with Vietnamese cultural norms. This approach helps maintain trust and ensures that issues are resolved amicably.

6. Long-Term Relationship Building: Private equity law firms can assist investors in establishing and maintaining long-term relationships with Vietnamese partners. They provide guidance on how to nurture these connections over time, which is crucial for the success of private equity investments in Vietnam.

Building trust in Vietnamese private equity deals is a multifaceted endeavor that requires a deep appreciation of cultural nuances and the assistance of experienced private equity law firms in Vietnam. Investors who take the time to understand the local culture and establish trust are better positioned to capitalize on the opportunities that this dynamic market offers. Private equity law firms serve as invaluable partners, bridging the cultural gap, ensuring compliance with legal requirements, and facilitating successful, long-term investments in Vietnam. In a market where relationships are key, the role of these law firms is indispensable for the success of private equity ventures.

ANT Lawyers, law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/private-equity-law-firms-in-vietnam.html

How Bank Guarantee Letter Could Help Secure a Transaction and Risks Involved?

  In the process of performing civil transactions, there is a need to bind the performance of obligations of the parties hence secured transaction is needed and guarantee is one of the commonly used methods to secure the performance of obligations in business and commercial activities.  The party that provides guarantee is normally a commercial bank and bank guarantee is normally a loan service.  In reality, there are potentially many risks involved in the guarantee transaction through issuing of bank guarantee letter which needs the attention of dispute lawyers in banking and finance to provide legal advice throughout the process.

Bank guarantee or guarantee commitment is a document issued by the guarantor or counter-guarantee or the guarantee-confirming party in the form of a Letter of Guarantee or a Guarantee Contract. Thus, a letter of bank guarantee is understood as a written commitment of the bank to the guarantee recipient that the bank will perform financial obligations on behalf of the guaranteed party when the guaranteed party fails to perform or not fulfilling the obligations committed to the guarantee recipient. In case the parties choose the form of counter-guarantee or guarantee confirmation, the letter of guarantee shall include the written commitment of the counter-guarantee issuing party to the guarantee, or of the guarantee-confirmation issuing party to the obligee.

When a guarantee obligation arises, the obligee must send a written request for the performance of the guarantee obligation, enclosed with the documents agreed upon in the guarantee commitment, to the guarantee-executing bank. The request for performance of guarantee obligations is considered valid when the bank receives it within the working time of the bank and within the valid guarantee commitment period. In case the request for performance of the guarantee obligation is sent in the form of a registered letter via the public postal network, the date the guarantor receives the request is the date of signing and receiving the registered letter.

Within 5 working days from the date the guarantor bank receives a valid written request for performance of the guarantee obligation, the guarantor shall be responsible for properly and fully performing the promised guarantee obligation for the with the guarantor. In case the guarantor bank refuses to perform the guarantee obligation, within 5 working days after receiving the request to perform the guarantee obligation, the bank must reply in writing clearly stating the reason for the refusal. In case of payment in foreign currency, credit institutions, foreign bank branches shall debit that foreign-currency sum to the mandatory lending account.

Credit institutions, or foreign bank branches, shall agree on the guarantee-issuing fee amount paid to customers. In case of a counter guarantee or guarantee confirmation, the guarantee-issuing fee amount shall be agreed upon by parties on the basis of the guarantee-issuing fee amount approved by the obligor. If the guarantee currency is foreign one, parties shall agree on collecting the guarantee-issuing fee by accepting that foreign currency or converting that foreign currency into Vietnam at the sell rate defined on the fee collection or fee collection notification date.

Disputes could arise from many situations, for example, there is a case of issuing a false letter of guarantee because an individual in the bank violates the law, or the bank officer signs a letter of guarantee without proper authorization from the legal representative of the bank, or letter of guarantee is in violation of form according to the regulation of state bank. In addition, if a conditional letter of bank guarantee is applicable, a dispute may arise from an understanding of whether or not the conditions for the guarantee have been met. In many cases, there might need to be a lawsuit to determine the conditions fulfilment of the guarantee and such might be lengthy and costly. Therefore, the parties involved in the guarantee transaction might need to consult a lawyer with expertise in banking disputes to check the legitimacy and validity of the letter of bank guarantee and the possibility to be guaranteed when the conditions are met.

ANT Lawyers – As a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to banking and finance to update clients on regular basis.

Source: https://antlawyers.vn/library/how-bank-guarantee-letter-could-help-secure-a-transaction-and-risks-involved.html

Vietnam Business Expansion: Why You Need Solicitors in Vietnam by Your Side

  At a time that marks the beginning of the global pandemic, Vietnam is one of the only countries to report GDP growth in 2020. Specifically, Vietnam’s GDP will increase by 5.2% in 2021 and growth of 5.2%. 7.7% by 2022. This positive economic position has made Vietnam a potential market for international investors.

Expanding your business into a foreign market is an exciting endeavor, and Vietnam has been steadily emerging as a prime destination for entrepreneurs seeking growth opportunities. With its dynamic economy, vibrant culture, and a population of over 97 million, Vietnam presents a wealth of possibilities for businesses. However, to navigate the complex legal and regulatory landscape in this Southeast Asian nation, you need more than just a map; you need Solicitors in Vietnam by your side.

Why Vietnam?

Before we delve into the role of solicitors in Vietnam, let’s briefly explore why Vietnam is a compelling choice for business expansion. The country’s economic transformation over the past few decades has been nothing short of remarkable. Its strategic location, robust infrastructure, and a young, skilled workforce make it an attractive destination for various industries, from manufacturing to technology and services.

Vietnam’s government is actively promoting foreign investment, with initiatives such as tax incentives and preferential treatment for certain industries. The growing middle class is fueling consumption, and the country’s proximity to other major Asian markets makes it an ideal base for regional operations.

The Complex Legal Landscape

While the potential rewards are substantial, entering the Vietnamese market comes with a unique set of challenges. The legal and regulatory framework in Vietnam can be intricate and sometimes ambiguous. Navigating the system without local expertise can lead to costly mistakes and setbacks.

This is where Solicitors in Vietnam come into play. Here’s why having legal experts by your side is essential for a successful business expansion:

Understanding Local Laws and Regulations

Vietnam has its own legal system, which is often vastly different from Western legal systems. Without a deep understanding of Vietnamese law, you could unknowingly violate regulations, which can result in fines, legal disputes, or even the termination of your business operations. Solicitors in Vietnam can help you interpret and adhere to local laws, ensuring compliance at every step.

Navigating Licensing and Permits

Obtaining the necessary licenses and permits to operate in Vietnam can be a daunting task. Solicitors in Vietnam can streamline this process, guiding you through the bureaucratic maze to secure the required approvals efficiently.

Contractual Agreements

Drafting and negotiating contracts with local partners, suppliers, and employees is a crucial part of business expansion. Having solicitors in Vietnam who are well-versed in the local business environment can help you create contracts that protect your interests and align with Vietnamese legal standards.

Intellectual Property Protection

Protecting your intellectual property (IP) is essential when expanding into a new market. Solicitors in Vietnam can advise you on registering trademarks, patents, and copyrights, ensuring that your IP rights are safeguarded.

Dispute Resolution

Should any legal disputes arise during your business expansion, solicitors in Vietnam can represent your interests in negotiations and, if necessary, in Vietnamese courts. They understand the intricacies of local dispute resolution procedures and can help you achieve a fair and favorable outcome.

Tax Compliance

Vietnam’s tax system can be complex, with various regulations and tax incentives available to different types of businesses. Solicitors in Vietnam can assist in optimizing your tax strategy, helping you minimize tax liabilities while remaining fully compliant with local tax laws.

Cultural and Language Barrier

The cultural and language differences in Vietnam can pose significant challenges for foreign businesses. Solicitors in Vietnam can bridge these gaps, facilitating effective communication with local authorities, partners, and stakeholders. Their local expertise ensures that you navigate cultural nuances with sensitivity.

Adapting to Market Changes

Vietnam’s regulatory environment is not static; it evolves with market dynamics and government policies. Solicitors in Vietnam can keep you informed about changes that may impact your business and help you adapt to new requirements seamlessly.

The Persuasive Case for Solicitors in Vietnam

In a market as promising and complex as Vietnam, the value of having Solicitors in Vietnam by your side cannot be overstated. They serve as your legal guides, helping you not only avoid pitfalls but also leverage opportunities effectively.

Consider this: while venturing into a new market is a bold move, it’s also a significant investment. To protect your investment and ensure a smooth entry into Vietnam, you need the expertise and guidance of solicitors who understand the local landscape intimately.

In a place where business customs, legal practices, and even negotiation styles may differ from what you’re accustomed to, solicitors can be your invaluable allies. They offer not just legal acumen but also a deep cultural understanding that can make or break your success in Vietnam.

Building a Strong Partnership

Selecting the right solicitors is crucial. Look for law firms with a strong track record in assisting businesses with their Vietnam expansion. They should have a team of lawyers who are not only skilled in Vietnamese law but also committed to your success and speak English for better communication.

When partnering with solicitors in Vietnam, establish a collaborative relationship. Share your business goals, objectives, and concerns openly. The more they understand your business, the better equipped they are to provide tailored legal solutions.

Expanding your business into Vietnam is a remarkable opportunity, but it’s not without its challenges. To overcome these challenges and thrive in the Vietnamese market, you need the support of Solicitors in Vietnam who can guide you through the legal intricacies, ensure compliance, and protect your interests.

Remember, in a foreign market, legal missteps can be costly and time-consuming. Investing in solicitors is an investment in your business’s long-term success and sustainability in Vietnam. With their expertise by your side, you can confidently navigate the complexities of the Vietnamese business landscape and seize the abundant opportunities it offers.

About ANT Lawyers, your solicitors in Vietnam

Our Vietnamese lawyers all hold high standards of legal expertise and professional ethics. We use English to communicate with foreign customers.

Our lawyers are members of Vietnam Bar Federation, Hanoi Bar Association.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/solicitors-in-vietnam/solicitors-in-vietnam.html

Transport market in Vietnam - Investment opportunities for foreign investors

 Currently, Vietnam is considered to have a stable economy and politics, and is gradually becoming an investment destination for many investors in the world. In addition, with the goal of becoming a part of the global supply chain, the transport market in Vietnam is in strong demand to meet the demand for freight transportation of businesses.

As a country with bordering the sea, Vietnam is considered a trading place of Southeast Asia, Asian countries and other countries in the world. The modes of transport include: road, rail, water, air, and pipeline. According to the Strategy of the Government, until 2030, transport enterprises in Vietnam will be developed with the orientation of applying an advanced management model, high business efficiency, competitiveness, and ownership of the domestic transport market, occupying the role of plays an important role in the transport of goods import and export, step by step reaching out to invest and business effectively in the international transport market, the details as follow:

1.To complete the restructuring of state-owned transport enterprises in the direction of accelerating the equitization, reducing the number and proportion of state ownership in transport enterprises, except for the case in transportation business units to ensure national security and social security.

2.To separate the business of railway infrastructure from the transport business into independent enterprises, urgently equitizing the transport enterprises and providing railway transport support services.

3.To establish a number of large-scale multimodal transport enterprises, capable of carrying out complete transport chains by road - rail - sea or road - waterway - sea, road - airline; strengthen connection of transport services between modes through the connection of service distribution, especially giving priority to the development of the intermodal ticket sale model between modes of passenger transport.

Regarding the implementation of investment in the transport sector for foreign investors, according to the provisions of the WTO and EVFTA services, foreign shipping companies can establish 100% foreign- capital enterprises. Foreign-invested enterprises are allowed to carry out activities including: (i) Marketing and sales maritime transport services through direct contact with customers, from quotation to invoicing; (ii) Acting on behalf of the cargo owners; (iii) Provision of required business information; (iv) Preparation of documentation concerning transport documents including customs documents, or other documents related to the origin and character of the goods transported; and (v) Provision of maritime transport services including cabotage services by Vietnamese flagged vessels for the supply of integrated transport services; (vi) Acting on behalf of the company, organizing the call of the ship or taking over cargoes when required; (vii) Negotiate and sign contracts for road, rail, inland waterways transportation related to cargoes transported by the company.

With the strategy of developing and opening up to attract foreign investors, Vietnam hopes to have more international transport investors to invest, set up company, apply for investment registration certificate for conducting business, to not only develop the transport market in Vietnam, but also bring economic benefits to international investors.

 

The advantages of attracting FDI to Vietnam in 2021

  In 2020, due to the impact of the covid-19 epidemic, the global supply chain will be seriously affected. Besides, the effects of the US-China trade war, the shift of production out of China took place quickly. In which, there are four areas that corporations tend to shift to Vietnam to set up company and make investment are information technology and high technology, electronic equipment, e-commerce and logistics, consumer goods, and retail.

Some big global corporations have started recruiting, searching for supply chains, and Vietnam is one of the destinations in the transition to other countries in the region such as Indonesia, Thailand, or Malaysia.

Vietnam, with the advantage of being close to China, is favorable for the movement of investment and machinery. Besides, having policies to attract FDI from Vietnam will make it easier for international investors to transfer investment.

At the same time, Vietnam also participates in many Free Trade Agreements such as CPTPP, EVFTA, etc. that facilitate trade relations with many countries and regions in the world, which will make cooperation more favorable. In addition, the stability in the value of Vietnam currency is also a strong point in attracting international investment.

As the report of a famous industrial real estate brokerage firm, data comparing occupancy rates and rental rates of industrial zones in Southeast Asian countries in the first quarter shows that Vietnam has an average rental rate of 45-50% lower than in Thailand, Malaysia, and Indonesia. According to a report in 2019, Vietnam's labor costs are also lower than that of Thailand, Malaysia and Indonesia, in addition, the labor force in Vietnam is increasingly abundant and the quality of labor is increasing.

Regarding electricity prices, according to EVN, comparing electricity prices in 2019 of Vietnam compared to other countries in the region, according to statistics, shows that electricity prices in Vietnam reach 80% compared to electricity prices of Indonesia; 42.1% of the electricity price of the Philippines and 66.7% of the electricity price of Cambodia.

In addition, with the application of supportive policies such as reduction of corporate income tax, import and export tax, land rental assistance, labor supply, and administrative procedures, Vietnam deserves to become be best investment destination in the world, for international companies to make investment, establish company and obtain investment registration certificate.

Da Nang Ranks First in Information Technology Application Index

  At the end of April 2021, the Ministry of Information and Communications announced the ranking of the readiness index for the application and development of Vietnam's information technology (Vietnam ICT Index) 2020, in which Da Nang was ranked first in 12 consecutive years of this ranking.

After 16 years of evaluation and ranking, Da Nang city has been rated the highest in the provinces and cities for 12 consecutive years (from 2009 up to now), demonstrating the effective application and development of information technology. The results above also create a hope for the next phase of the city - the stage of upgrading to a comprehensive digital transformation under the guidelines of the City and Government.

In addition, Da Nang is also ranked 5th nationally on the Information Technology Industry Index, after Ho Chi Minh City, Hanoi, Bac Ninh and Thai Nguyen.

The results of evaluation and ranking of Vietnam ICT Index are considered the most prestigious, quality and complete assessment in the country, serving as a basis for the Ministry of Information and Communications and local authorities to make appropriate decisions. select investment priority areas, promote the development of the information technology industry and the information technology industry in the country.

The Vietnam ICT Index is divided into groups of indexes on: technical infrastructure, human infrastructure, information technology application, online public services and assessment of the local information technology industry; with more than 100 indicators and conducted independent investigation, statistics and evaluation.

Da Nang is a city that prioritizes the development of information technology and high technology, always applying information technology in operation and management. Information technology is also a priority industry, developed in Da Nang next to the industries supporting tourism. There have been many domestic and foreign investors in the field of information technology making investments in Da Nang and achieving high achievements. In addition, the city is also actively building an information technology infrastructure system to help investors easily make investments in the city, and establish company in Da Nang.

With 12 consecutive years of leading the country in the Vietnam ICT index, Da Nang is confident to bring information technology investors the best investment environment, efficiency and long term benefits.

Why the Investors to Choose a Reputable Enterprise for Cooperation?

  Profitable investment is the legitimate aim of every investor. However, to be able to make an overall assessment of an enterprise that investors can trust is really a difficult choice. Especially for foreign investors who do not have much experience in the Vietnam market whom wish to enter Vietnam market for making investment through M&A.  It is very important for the foreign investors to undertake the research for the reputation of the company and each shareholders being corporate or individual, obtain public information of the company, and key personnel under take brief due diligence to access potential risks for cooperation.

According to the data reported as of March 20, 2021 by the Foreign Investment Department (Ministry of Planning and Investment), the total foreign investment capital registered for new, adjusted and contributed capital, purchased shares of investors foreign investment amounted to 10.13 billion USD, an increase of 18.5% over the same period in 2020. This data shows that the demand of foreign investors to invest in Vietnam is still gradually increasing. So, how can foreign investors choose businesses to invest with peace of mind?

In addition to choosing an enterprise with an appropriate industry and intended investment capital, the fact that that enterprise has reputable name, capability, and experience in the market in the business field is a criterion that investors should consider and can be trusted. Moreover, investors should take the time to learn information from official sources by looking up the company's name, grasping basic information such as: owner's name, representative, capital status, influential individual being shareholders,... and compare such to the company's website to know if the company provides full information, images, updates on the company's operations regularly, accurately or are not.

Many cases of "virtual" businesses taking advantage of investment needs and the lack of information about the Vietnam market have taken advantage of and defrauded foreign investors. On the other hand, the enterprise will be the one to make decisions that directly affect the investment results of the investor; therefore, the foreign investors should understand, consider and choose a reputable and safe enterprise entirely to invest capital.

In addition, what is the name and influence of that enterprise in the investment field? What is experience and enterprise performance in recent years? It is also the actual evidence that proves the capability of that enterprise. An important note for investors is that in addition to information about enterprise achievements, negative information about the company such as violations in business practice, errors in service provision, etc. causing disputes, compensation with customers is less public information and difficult to find.

In many cases, investors do not have a thorough understanding of their partners, but only decide based on virtual commitments, the display of capability beyond the capabilities of the business. From there, putting your investment capital on a risky way lead to potential unnecessary disputes with the target enterprise.

Furthermore, understanding the Vietnamese legal regulations on rights and obligations for foreign investors, although not related to the selection of enterprises to invest in, is also necessary information for investors to have projection of the problems that may arise during the process of participating in investing in the business.

After all, what investors are looking for are "clean" enterprises that have the capability to grow quickly but at the same time must be able to maintain stability and develop sustainably. However, every business environment has certain potential risks and it is the job of foreign investors to always be alert and learn exactly the information of enterprises to minimize risks potential.

Why is it important to undertake background check before hiring?

  Every business in order to be able to operate stably and develop must first have an effective resource. In addition to material, technological, and machine resources, human resources are considered as an important resource that determines the success of an enterprise.  It is important to conduct background check before hiring to confirm the information given by the employee reflects the truth.

Human resources are people who are directly involved in working for the business in different positions with the aim of creating values ​​and profits for the business, contributing to the development of the business. Thus, in order for businesses to be able to recruit capable and qualified individuals suitable for the position that the business is looking for, the business needs to have research and selection. Below is the necessary information that businesses can refer to be able to choose a suitable candidate.

Professional competence and skills are concerns that every business wants in its candidate. With high professional ability and good problem-solving skills, it will be a factor to help businesses develop well, satisfy customers, increase competitiveness with competitors... contribute to creating profits and improving location of the business. To find out this information, businesses can look in the information about the education and experience that the candidate provides or contact the previous company to confirm the accuracy of this information.

Besides, professionalism is also a necessary requirement that businesses should look for in candidates. It is shown in punctuality, polite manners, proper manners, responsibility for work, seriousness and respect for work, respect for colleagues and superiors, responsibility for work results, admit faults and get solution.

In addition, businesses should learn the personality of the candidate to know if the candidate is a good fit for their corporate culture. Because corporate culture is an "implicit" rule common to everyone in the business. Candidates who do not fit the corporate culture find it difficult to get along with everyone in the process of working together. Businesses can find this information in a candidate's interests or activities section, or through candidate sources from a previous workplace.

Honesty, integrity, ethics are essential qualities of a good employee. That is the basis for businesses to trust and work long-term with candidates. Therefore, when choosing employees to work, businesses should consider this factor because candidates with these qualities will bring many benefits and be the basis long-term commitment. However, it is difficult for businesses to find out if a candidate is honest and integrity through just one interview. For important positions, businesses should carefully learn this information from the previous company or through the personal information channels of the candidate.

Moreover, there is a method that businesses can apply when selecting candidates that is taking a test. Through the test results, businesses can know about a lot of general information such as: attitude, skills of handling situations, reasoning and calculation ability of candidates when facing a problem and also in terms of cognitive ability, achievements, work experience, interests... From there, enterprises also assess the candidate's ability to integrate and adapt.

In addition, the candidate's resume, background check, personal reference are also a reliable basis for businesses to know about their working history, reputation of employee in previous assignment, work, previous criminal records or not, etc. There is evaluation and consideration when selecting suitable candidates.

These are the reasons why businesses need to find out information about candidates before hiring. Knowing what skills and characteristics to look for in current employees as well as when recruiting new employees ensures the quality of your human resources and leads to an efficient business.  Hence, background screening has been increasingly important before hiring as part of risk management and risk prevention in Vietnam.

Why Market Research and Risk Evaluation Are Important for Foreign Investment?

  Market research and risks assessment before investing or having any business cooperation, especially in the period of integration, trade between countries, have become very popular. When entering Vietnam, the new market with different cultures, market mechanism, the first and indispensable step is to do market research, evaluate the risks to know the strengths, weaknesses of business, in order to bring the best profit on investment.

Market research and risk evaluation require a high level of expertise and a deep knowledge of a particular market. The team of research and risk evaluation services are also people with professional capacity, good research, analysis and judgment ability. Consulting service companies have also been established with an increasing number and quality are also specialized and professionalized to meet the high requirements of foreign investors.

There are many areas to look into for market research and risk evaluation, i.e. general market research services, customer research services, buying behaviour, supply and demand rend, reputation of company being buyer or seller, reputation of the individual managing the company, reputation of key employee for hiring, work records of employee, criminal record of individual stakeholders. These diverse research fields have solved the obstacles of foreign investors and become an effective channel to exploit information in a reputable, fast and accurate way.

Today, with the development of information technology, a foreign investor can access information and data of a market, of an enterprise or information of a business or production field which are not too difficult. However, it is not easy to use data and link information together to make an accurate assessment for investors’ purposes. Many investors have decided to do their own research. However, participating in a completely strange field and market is a risky decision. Accordingly, in addition to the information collected, foreign individuals and organizations need to have realistic analysis reports, in-depth research enough to grasp the potential and risks of that market before choosing to invest in.

Besides the cost, the research and risk evaluation service of professional consultant have helped investors to know the information of the market and the expected business field without having to spend time and money to go in person to the country in other to research. Moreover, the research and risk service can provide results from the measurement that make an assessment of the prospects, potential, and suitability of the investment orientation thanks to the understanding of the characteristics and business practices… It will therefore be possible to give useful and reliable advice on investment opportunities.

Research and risk evaluation services also help investors narrow the vision and effective investment scope to avoid risks. From there, investors can work towards a specific goal and plan the next steps. As a consulting channel, the research and evaluation service also provides useful information such as the strengths and weaknesses of competitors, the risks they have encountered, and the trends they are deploying so the investors can consult and note. Based on that information to create for a suitable strategy such as a unique promotion tactic, a special, impressive product, hiring strategy…

Research and risk evaluation services also help analyze the legal matters that have significant impact that investors gain more legal knowledge in the expected field and have the most general picture of the field. On the other hand, it helps investors when implementing launch programs and entering the market to comply with the provisions of the law, as well as in accordance with the local culture.

It can be seen that in today’s investment market, research and risk evaluation services are not only useful, but it is an initial factor to determine the possibility of success. Therefore, foreign investors do not forget to choose for themselves a reputable and experienced research and risk evaluation service provider to successfully implement investment projects together in Vietnam.

Quang Nam promotes and attracts foreign investment in 2021

  At earlier of 2021, the representative of Quang Nam province proposed the province’s investment promotion program in 2021. Accordingly, the objective of Quang Nam province is to promote investment promotion in the following fields: supporting industries; agro-forestry-fishery processing industry, building materials; agricultural production towards high efficiency; field of investment, construction and business of infrastructure of industrial zones, industrial zones, airport infrastructure, seaports, urban transport infrastructure.

In the industrial structure, focus on investment promotion projects in supporting industries for mechanical engineering, automobiles, supporting industries for electricity, electronics and textiles – footwear, processing of products which use the local material.

The representative of Quang Nam province committed to promoting the improvement of the investment environment, administrative reform, and improving the efficiency of investment promotion. Quang Nam recognized the importance of investment promotion on the spot through increasing support for projects that have been licensed for investment; directly work with investors to determine the portfolio of projects to expand production and business in accordance with the capacity of the investor and the potential and strength of the province.  The province also focuses on dialogue activities with businesses and investors to promptly solve difficulties, problems, proposals and recommendations of investors.

However, Quang Nam will resolutely refuse to attract projects with high risk of causing environmental pollution, wasteful exploitation of resources, outdated technology, etc.

In addition, Quang Nam will cooperate with research institutes, domestic and foreign investment consulting companies to conduct research activities, evaluate investment potentials and trends of investment partners. foreign countries such as Japan, Korea, the US, Europe… and large domestic enterprises and investors. Also, the province intends to organize overseas investment promotion in the target markets of the following countries: Japan, Korea, Russia, Dubai, Hong Kong, Taiwan… Continue to review, update and build the list project calling for investment in Quang Nam province. In particular, it will review the status of projects that have been implemented, projects that have had an investor or issued an investment policy but are slow to implement, projects that have had their investment registration certificates revoked, collected land recovery … to avoid the situation of “hanging” projects, attracting and calling for qualified investors to implement the project.

According to statistics from the Department of Planning and Investment of Quang Nam province, in 2020, the province has granted 50 new domestic projects with a total investment of VND 8,140 billion. Regarding foreign investment projects (FDI), in 2020, Quang Nam province has granted 7 new foreign investment projects, with a total registered investment capital of more than USD 33 million by investors from the following countries: Korea China, Singapore, Macau, Hong Kong, France, Germany.

The total number of valid projects in the province so far is 197 projects with a total investment of more than USD 5.93 billion.

With efforts to attract FDI, Quang Nam hopes to be an investment destination for domestic and foreign investors to set up company, to contribute to the province’s socio-economic development and to maximize profits for investors. fourth in the future.