Other Briefings
Vietnam Loosens Housing Laws for Foreign Investors
The Vietnamese government has liberalized its Housing Laws related to property ownership by foreigners. Foreigners will now be allowed to lease or own a maximum of 30 percent of the apartments in a condominium building and up to 250 houses in a ward-level populated area, excluding those in the areas of defense security. In addition, foreigners entering Vietnam with valid entry visas will be able to acquire a 50-year leasehold tenure.
Key ASEAN Industries in Vietnam for Foreign Investors
As Vietnam experiences greater integration into the ASEAN community the country is seeing strong growth in a number of industries, among the key business areas are electronics, information and communications technology, textiles and apparel, and medical devices. Foreign investors seeking to find the next manufacturing destination after China, would be well advised to look closely at this dynamic country. In this article we provide a snapshot into each industry within Vietnam and provide context within the wider ASEAN region.
Vietnam Footwear Industry Sees Growth Ahead of TPP
The upcoming Trans-Pacific Partnership (TPP), a US-led free trade agreement, is expected to have strong positive effects on Vietnam’s footwear industry. Once implemented, the TPP will reduce tariffs on most Vietnamese exports to the US to zero.
Vietnam Sees Strong Growth in Auto Sales
The Vietnam Automobile Manufacturers’ Association (VAMA) has announced that August was the 17th consecutive month of auto sales growth within the country. The month saw a 59 percent year on year increase, with total sales of 12,562 units. Total sales for 2014 are now forecast to be 130,000 units, representing an 18 percent growth year on year.
Intel Builds First Made-in-Vietnam CPU
On July 29, Intel announced that it had produced the first made-in-Vietnam CPU. By the end of this year, Intel expects to manufacture 80 percent of their CPUs for the world market in Vietnam.
Vietnam Could Become World’s Largest Coffee Producer and Exporter
Vietnam could become the world’s largest producer and exporter of coffee. Currently, the country is the world’s second largest coffee exporter, behind only Brazil. However, many experts believe that Vietnam has the potential to overtake Brazil thanks to its favorable climate conditions, lower cost production and a bumper coffee crop.
Foreign Invested Firms Dominate Vietnam’s Garment and Textile Industry
Despite their small overall number, foreign direct invested (FDI) firms account for 60 percent of Vietnam’s total garment and textile export revenue. According to the Vietnam Textile and Apparel Association, there are 3000 garment and textile firms in Vietnam – 25 percent of which are FDI firms.
Real Estate Attracts High Level of FDI into Vietnam
With 20 newly licensed projects worth a total US$1.13 billion, Vietnam’s real estate sector has attracted the second highest amount of foreign direct investment in the country.
Foreign Logistics Firms See Success in Vietnam
While their presence is still small, foreign logistics firms are seeing increasing success and growth in Vietnam. As the country’s economy continues to grow, these firms are expected to continue to increase their level of investment and footprint on the ground in Vietnam.
Marks & Spencer to Join Vietnam Retail Market Competition
British retailer Marks & Spencer has announced plans to enter Vietnam’s retail market this summer with the opening of a flagship in Ho Chi Minh City. In the long-term, their company plans to open at least 20 stores in Vietnam by 2020.
