Vietnam’s process manufacturing sector has to date attracted 252 billion USD in foreign direct investment (FDI), accounting for nearly 60% of the total foreign capital poured into the Southeast Asian country.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, there are currently 34,898 valid FDI projects worth 426.14 billion USD in Vietnam.

In the first half of this year, the country lured 16.03 billion USD in FDI, of which the sector accounted for 8.84 billion USD, or 63% of the total.

The sector has been attractive to the world’s major groups such as Samsung, LG, Canon, Honda, and Toyota, reflected through their continuous expansion of investment in Vietnam.

To make FDI projects in the sector effective, economists are advising Vietnam to be stricter in selecting projects to attract those with good financial potential, less labour intensive, and bringing about high added value./.

On July 4, 2022, Viglacera Corporation – JSC held a meeting to evaluate the results of production and business activities in the first 6 months of 2022. With the positive results achieved, Viglacera is closely following and exceeding the profit target approved by the General Meeting of Shareholders.

Mr. Nguyen Anh Tuan – Deputy General Director of the Corporation reported on the results of the first 6 months of 2022

Reported at the meeting, in the first 6 months of the year, the Corporation still maintained production and business activities, the consolidated profit of the whole Corporation reached 174% of the 6-month plan; parent company’s profit reached 233% of the 6-month plan, reaching 116% of the annual plan.

Concluding speech at the meeting, General Director Nguyen Anh Tuan directed the whole Corporation to plan in detail and stick to the plan for the last 6 months of 2022; focus on boosting business activities, developing domestic market and expanding export market; Actively regulate and control production activities; Develop detailed plans for investment and business abroad and be proactive in all developments of the market in the coming time.

Mr. Nguyen Van Tuan – Chairman of the Board of Directors of the Corporation directed at the meeting

With the results achieved in the first 6 months of the year, the Corporation believes that it will continue to successfully complete the targets of the 2022 Plan approved by the General Meeting of Shareholders and will be a premise to create momentum for the following years development. 

Mr. Nguyen Anh Tuan – General Director of TCT concluded at the meeting

It is forecasted that in the last 6 months of 2022, with the context of escalating war as well as rising raw material prices and transportation costs, the situation in the world and the region will continue to have complicated and unpredictable developments. The corporation will proactively review monthly production and business activities for each group of business fields, detailing each member unit in order to ensure that the whole Corporation completes beyond its 2022 plan target.

For more information about industrial parks developed by Viglacera, please contact: Viglacera Real Estate Company – Phone: (+84) 888 25 22 88 | Website: https://viglaceraip.com

Starting in February 2022, Thuan Thanh 1 Industrial Park has a scale of nearly 250 hectares, with a total investment of nearly VND 3,000 billion. The industrial park has a favorable geographical location, near important traffic hubs such as National Highway 17 and National Highway 38, which makes it convenient to travel from the IP to Hanoi (35 minutes), Noi Bai International Airport (45 minutes), Cat Bi international airport (2 hours), Dinh Vu – Hai Phong seaport (about 1.5 hours) and Cai Lan – Quang Ninh seaport (2 hours).

Thuan Thanh 1 Industrial Park has a prime location, being located close to Ring Road 4 and National Highways 17, 38

The IP is located close to Ring Road 4, which is expected to be basically completed in the period from 2022 to 2027. In addition, recently, Deputy Prime Minister Le Van Thanh proposed that the Ministry of Transport as well as related ministries and localities research the investment proposals to build the Bac Ninh – Pha Lai Expressway Project with a length of 10.3 km, the section from Ring Road 4 to National Highway 18 (total investment of VND 4,000 billion). Once completed, these important roads will link the major industrial chains of Bac Ninh together, especially the industrial chains in the East – South of Bac Ninh province from Thuan Thanh 1 IP as well as connecting to the industrial chains of Bac Giang province, helping increase the ability to link and trade goods between Thuan Thanh 1 IP and neighboring provinces.

Not only located at the “golden” location, Thuan Thanh 1 IP also has modernly and synchronously developed technical and service infrastructure. The IP will be a multi-functional industrial park, focusing on attracting multi-sector investment, mainly supporting industries, electronics, information technology, household goods, machinery and equipment, non-polluting and environmentally-friendly industries, aiming to become a sustainable ecological industrial park.

According to Viglacera, the operating time of the IP is long and Viglacera is ready to hand over land to secondary investors from the third quarter of 2022. Viglacera will build a housing area for experts and workers with a scale of about 30.5 hectares right next to the industrial park to support workers and enterprises to settle down and create motivation for them to become more familiar to the working environment in the industrial park.

For more information, please contact: Viglacera Real Estate Company – Phone: (+84) 888 25 22 88 | Website: https://viglaceraip.com

The 43km-long coastal highway through Thai Binh province, expected to be completed in May 2023, will promote connections from Thai Binh to other provinces in the North Coast Economic Corridor. This is also the “motivation” for Viglacera’s Tien Hai Industrial Park (IP) to become a bright spot to welcome investment in the future.

Located in the planning of the North-South coastal road route, the 550km-long coastal highway project passing through 6 provinces from Quang Ninh to Thanh Hoa is one of the key traffic works, playing a strategic role in promoting the development of the North Coast Economic Corridor. In which, the section through Thai Binh province has a total length of 43 kilometers; the whole route is expected to be opened to traffic in May 2023. With a strategic location, the North bordering potential economic regions such as Quang Ninh and Hai Phong, the South bordering Thanh Hoa and Nam Dinh, Thai Binh will become a bridge connecting the coastal corridor traffic between the provinces and Thai Binh marine economic zone (EZ) with neighboring key economic zones, thanks to this route.

The coastal highway connecting 6 coastal provinces

Tien Hai IP is located in the Thai Binh Marine Economic Zone, adjacent to the coastal highway, which will help it directly benefit from the highway connecting 6 coastal provinces. Accordingly, the distance from the IP to Hai Phong port will be shortened to only 40 minutes by car, only 55 minutes to Cat Bi international airport and 60 minutes to Lach Huyen international port. The travel time to Ha Long will be 90 minutes instead of 2.5 hours as currently, to Van Don airport will be only 150 minutes and to Mong Cai border gate will be 180 minutes. As a result, the movement and circulation of goods from the IP to neighboring provinces and exporting to the international market will be more convenient and faster.

(*) The distance will be shortened to 40 kilometers when traveling through the coastal highway which is expected to be opened to traffic in May 2023.

Tien Hai IP is located next to the coastal road, which makes it easy to move from the IP to Hai Phong port and Cat Bi airport, …

In addition to convenient transportation, Tien Hai Industrial Park also has a great advantage in energy when it is located in the area of ​​​​Tien Hai gas field, to be more specific, CNG gas field with large reserves of hundreds of millions of cubic meters. In 2015, the North Low Pressure Gas Distribution Enterprise, Branch Of Petrovietnam Low Pressure Gas Distribution Joint Stock Company was inaugurated in Tien Hai Industrial Park and has been supplying gas to the entire North. At the same time, the project of the mining gas collection and distribution system in the IP is ready to supply natural gas to the local enterprises and neighboring provinces. When investing here, investors can also enjoy other mineral resources such as mineral water with large reserves that have been exploited and used effectively; the Red River Delta coal basin which has a reserve of 210 billion tons and has been planned to be exploited by the Government. Besides, the coastal area with traditional fishing grounds helps Tien Hai Industrial Park have the advantages of developing the fishery and seafood processing industry.

Image of Tien Hai Industrial Park

Moreover, Tien Hai Industrial Park has a harmonious location in the area of ​​​​administrative offices and densely populated areas of Tien Hai district, which is convenient to connect to administrative agencies, health-education and culture-sport-entertainment centers within a radius of 2km. Thai Binh city, which is 25 km from Tien Hai Industrial Park (20-minute travel) owns a variety of transport infrastructure, utilities, and many prestigious universities. In the future, Viglacera plans to continue to develop an urban area next to the IP, providing accommodation for workers in the IP.

Tien Hai Industrial Park (Thai Binh) has a scale of 446 hectares, being the largest operating industrial park in Thai Binh Province. Up to now, the industrial park has successfully attracted many reputable investors such as Toyoda Gosei – Japan’s leading auto parts manufacturing corporation, supplying to Toyota cars, Jeanson Industrial Ltd (Hong Kong) manufacturing home decor and many other enterprises. Enterprises in the IP can enjoy tax incentives in coastal economic zones such as 10% corporate income tax rate for 15 years, tax exemption for the first 4 years and 50% reduction for the next 9 years, import tax incentives, personal income tax incentives,…

The industrial park has available land, ready to welcome enterprises to survey and be subleased the land.

For more information, please contact: Viglacera Real Estate Company – Phone: (+84) 888 25 22 88 | Website: www.viglaceraip.com

In the first half of 2022, Viglacera Real Estate Company continuously promoted investment attraction activities and expanded cooperation with countries through online and direct investment promotion programs. Thanks to this, the Company connected with more than 500 domestic and international investors from the United States, Korea, Cuba, etc.

Korean investors were interested in and learned about Phong Dien Viglacera Industrial Park at the “Binh Dinh – Korea 2022” Conference

On May 12 – 13, 2022, the “Binh Dinh – Korea 2022” Conference took place in Binh Dinh province on the occasion of the 30th anniversary of the establishment of diplomatic relations between Vietnam and Korea, with the participation of representatives of Central and Southern provinces, KOTRA, KOCHAM in Central South Vietnam and more than 200 Korean investors. At the event, Viglacera representatives connected and discussed with delegates who came to survey and look for opportunities to expand investment and do business in the Central South region. Especially, Viglacera also displayed and introduced investment opportunities and incentives in Phong Dien Viglacera Industrial Park (IP), Thua Thien – Hue province to Korean enterprises.

Moreover, in May 2022, Viglacera joined the Delegation led by Prime Minister Pham Minh Chinh to attend the US-ASEAN Special Summit in Washington D.C., the USA at the invitation of the President of the United States, Joseph Robinette Biden Jr; simultaneously visited and worked in the United States and the United Nations. During the business trip which included investment promotion activities along with events in Washington DC, New York and San Francisco, Viglacera met and discussed with US enterprises that intended to learn about investment information in Vietnam, called on US enterprises to invest in the industrial parks developed by Viglacera Corporation – JSC.

Viglacera Real Estate Company connected with more than 200 enterprises at the “Connect Thai Binh – Korea” Conference

On July 6, 2022, the People’s Committees Of Thai Binh Province coordinated with the Ministry of Foreign Affairs and the Korean Embassy in Vietnam to organize the “Connect Thai Binh – Korea” Conference. The Conference was an event in the series of activities to celebrate the 30th anniversary of the establishment of diplomatic relations between Vietnam and Korea, with the expectation to open up many new opportunities, new developments, and new relations in investment cooperation between the two countries in general and between Thai Binh province and its Korean partners in particular. Participating in the Conference, Viglacera introduced the investment potential in Tien Hai IP which is located in Thai Binh Economic Zone, as well as 12 IPs of Viglacera in Vietnam to the participants. Viglacera’s representatives also connected with more than 200 investors from KOCHAM and Korean companies that have been wishing to expand investment in Vietnam. Korean enterprises expressed their interest in the Vietnam market and wished to come to Viglacera’s IPs to research and learn about investment in the future.

For more information about industrial parks developed by Viglacera, please contact: Viglacera Real Estate Company – Phone: (+84) 888 25 22 88 | Website: https://viglaceraip.com

Deputy Prime Minister Pham Binh Minh signed Decree No 38/2022/ND-CP on June 12 after reaching an agreement with the relevant government agencies and labor representatives.

Vietnam is set to increase regional minimum wages by an average of 6 percent from July 1, 2022, Under the decree, the minimum monthly wage will be raised by six percent, which is equivalent to VND260,000 (US$11.23) in Region I; VND240,000 (US$10.37) in Region II; VND210,000 (US$9.07) in Region III; and VND180,000 (US$7.77) in Region IV.

In addition, the Decree also ensures minimum hourly wage rates for the relevant regions. These are:
Region I – VND 22,500 (US$0.97)
Region II – VND 20,000 (US$0.86)
Region III – VND 17,500 (US$0.75)
Region IV – VND 15,600 (US$0.67)

Wages for employees that are paid daily or on a weekly basis, must not be lower than the minimum wage when converted to monthly or hourly rates.

(Source: chinhphu.vn)

Vietnam is again in the spotlight after Apple’s move to shift production activities to this Southeast Asian country, according to TRT World page of Turkish Radio and Television Corporation. This move showed that Vietnam has emerged as a preferred manufacturing destination for global tech giants.

For the first time, Apple is moving part of its iPad manufacturing out of China, taking them to factories in Vietnam, Nikkei Asia reported on June 1.

The development comes as lockdowns in the Chinese city of Shanghai disrupted supply chains for various tech products, prompting the iPhone maker to find alternatives, it said, adding that an iPad assembler has already built assembly lines in Vietnam.

Apple is already sourcing its Airpod earpieces from the Southeast Asian economy, which has registered sustained economic growth in the past two decades.

But where Vietnam has really made its presence felt in the past decade has been in its ability to attract foreign direct investment (FDI) in factories that are assembling and manufacturing tech products from smartphones to TV components.

The Republic of Korea (RoK) and Japan – home to some of the biggest technology names – accounted for 376 billion USD in total FDI poured into Vietnamese manufacturing sector between 2015 and 2020, according to one study.

(Source: Vietnamplus/VIR)

VGP – Deputy Prime Minister Le Minh Khai signed Decree 34/2022/ND-CP dated May 28, 2022 on extension of deadlines for payment of value-added tax, corporate income tax, personal income tax, and land rental fees in 2022.

The tax payment extension is seen as an interest rate-free loan provided by the State to support enterprises and individuals to gather more financial resources to overcome difficulties caused by the COVID-19 pandemic.

Beneficiaries of the policy include enterprises, organizations, business households and individuals operating in agro-forestry-fishery, construction, entertainment, crude oil extraction, food production, transport vehicles production, waste water treatment, logistics, hospitality and catering services, education, healthcare and real estate.

Credit institutions and branches of foreign banks in Viet Nam providing support for enterprises and customers affected by the pandemic could also be subject to extension of tax payment deadline under the decree.

Decree 34 shall take effect from the date of issuance to December 31, 2022.

Specifically, the Decree stipulates a six-month extension for VAT from March to May 2022 and the first quarter of 2022, five-month extension for VAT in June 2022 and Q2 2022, four-month extension for VAT in July 2022, and 3-month extension for VAT in August 2022.

For corporate income tax (CIT), extension of the tax payment that enterprises have to pay temporarily for the second and third quarters of 2022 is three months.

As for business households and individuals, the extension of VAT and PIT in 2022 is no later than December 31, 2022. 

In addition, the Government also agreed a six-month extension for the payment of fees for leasing land and water surface in 2022, starting from May 31, 2022 to November 30, 2022.

This is the fourth time the Government decided to extend the payment deadline of taxes and land rental fees for businesses and people affected by the pandemic, estimated to be worth up to VND54 trillion (US$2.32 billion).

Earlier, the Government also continued extending the deadline for excise tax payment for domestically-manufactured and assembled cars./.

(Source: VGP)

Vietnam was one of the few Asian countries that did not fall into a sharp economic downturn during the Covid-19 pandemic in 2020 and 2021. The World Bank (WB) forecasts that in 2022, Vietnam’s GDP will increase by about 5.5%.

FDI business

79 countries and territories invested in Vietnam in the first 5 months of 2022. In which, Singapore led with a total investment of nearly 3 billion USD, accounting for 25.3% of the total investment capital in Vietnam, decreasing by 43.8% over the same period in 2021. Korea ranked second with over 2.06 billion USD, accounting for 17.6% of the total investment capital, increasing by 12.6% over the same period. With the large-scale Lego project which has a total investment of over 1.3 billion USD, Denmark continued to rank third with a total registered investment capital of around 1.32 billion USD, accounting for 11.3% of the total investment capital. The next ones were China, Japan and Hong Kong.

As regards the number of projects, Korea was still the partner with the largest number of investors that were interested as well as making new investment decisions, expanding investment projects, contributing capital and buying shares in the first five months of 2022 (accounting for 19.4% of the total number of new projects, 33.9% of adjustments and 36.7% of contributing capital and buying shares, respectively).

DW (German Media): Vietnam is a new destination for European companies

According to an article published on DW website (Germany) on June 8, Vietnam’s vibrant economic activity in recent years has been a factor attracting the attention of European companies.

Vietnam’s economic performance during and after the pandemic has attracted the attention of some large European companies. German automation engine supplier Brose is deciding on a new production site between Thailand and Vietnam.

Previously, in December 2021, the Danish toy maker Lego announced that it would build a $1-billion factory near Ho Chi Minh City – one of Europe’s largest investment projects in Vietnam so far.

Speaking to DW, Mr. Raphael Mok, head of Asia at Fitch Solutions, said that Vietnam has become a more attractive destination for investors. The country is also massively investing in infrastructure.

A report by Germany Trade & Invest, a research and consulting platform, indicates that these agreements also help European businesses have easier access to public procurement activities in Vietnam.

Catching the wave of real estate investment from Japan to Vietnam

A strong wave of investment from Japan is “landing” in Vietnam’s real estate market as industry leaders are encouraged and promoted to invest in building smart cities in potential cities in 10 ASEAN countries.

Since the end of 2020, the Japanese government has had policies to encourage and promote large real estate companies to invest in and build smart cities in 10 ASEAN countries. These policies have quickly helped Vietnam become the focus of many Japanese investors.

(Source: FIA/TTXVN)

On April 26, 2022, Viglacera Corporation – JSC (stock code VGC) held the Annual General Meeting of Shareholders.

 With respect to business and production results in 2021, the parent company’s revenue reached 5,559 billion VND, accounting for 111% of the plan assigned by the General Meeting of Shareholders; the Corporation – Joint Stock Company (consolidated) reached 11,194 billion VND, making up for 93% of the plan assigned by the General Meeting of Shareholders. In terms of pre-tax profit, the Parent Company reached VND 1,149 billion; the Corporation – Joint Stock Company (consolidated) reached VND 1,541 billion, up 53% and 54% of the plan assigned by the General Meeting of Shareholders, respectively. With these results, the dividend payout ratio in 2021 is expected to be 15%, up 3% compared to the plan.

Regarding the investment and development plan in 2022, Viglacera sets a plan for consolidated pre-tax profit to reach VND 1,700 billion and revenue of VND 15,000 billion, up 10% and 34% compared to 2021, respectively. The Parent Company sets a pre-tax profit target to reach VND 1,200 billion and revenue to reach 6,500 billion dong, up 4% and 17% compared to 2021, respectively. The dividend payout ratio is expected to be 16%.

For the real estate sector, VGC continues to synchronously invest in technical infrastructure in the industrial parks being deployed. To achieve the target in 2022-2023, the Corporation is preparing to invest and deploy new investment in about 2,000 hectares of industrial parks: Phu Ninh Industrial Park (Phu Tho), Dong Trieu Industrial Park (Quang Ninh), Tay Pho Yen Industrial Park (Thai Nguyen), the complex of Industrial Parks – Urban Areas – Services in Yen Bai…

In addition, Viglacera Corporation will continue to develop social housing and worker housing with projects in Dong Van IV Industrial Park, Phu Ha, Yen Phong – Bac Ninh… and commercial housing, resort tourism. In the plan 2022-2023, the Corporation prepares to invest and deploy new investment of about 200 hectares in the housing sector.

For more information about industrial parks developed by Viglacera, please contact: Viglacera Real Estate Company – Phone: (+84) 888 25 22 88 | Website: https://viglaceraip.com

On March 23, 2022, the Standing Committee of the National Assembly approved a Resolution No. 17/2022/UBTVQH15 on the annual and monthly overtime hours of employees while ensuring COVID-19 prevention and control and socio-economic recovery and development.

According to the Resolution, an employer may assign employees to work overtime for 200-300 hours per year if it is agreed by the employees, except for the following cases:

– Employees aged between full 15 and under 18;

– Employees with mild disabilities with work capacity reduction of least 51% or employees with severe disabilities or extremely severe disabilities;

– Employees doing arduous, hazardous, dangerous or extremely arduous, hazardous or dangerous works;

– Female employees in their 7th month of pregnancy onward (or in the 6th month of pregnancy onward in case they work in the highlands, remote areas, bordering areas or islands);

– Female employees nursing children under 12 months old.

This document comes into force from January 01, 2022 and does not apply to the cases specified in Clause 3 Article 107 of the Labor Code.

Source: chinhphu.vn

On March 24, 2022, in Quang Yen town, Quang Ninh province, Viglacera Corporation – JSC held the Groundbreaking Ceremony of the housing project for workers and experts in Dong Mai Industrial Park.

The event marks the next important step in 2022 for the Corporation, continuing to affirm the leading enterprise of the construction industry; the prestigious brand not only in the field of production of building materials but also in industrial park infrastructure investment, real estate investment, social housing development, especially housing for industrial workers.

Attending the groundbreaking ceremony were Members of the Central Committee of the Party, Minister of Construction Nguyen Thanh Nghi and Secretary of the Quang Ninh Provincial Party Committee Nguyen Xuan Ky, representatives of the leaders of the Provincial Party Committee, People’s Council and People’s Committee of Quang Ninh Province; Leaders of departments of Quang Ninh province; Leaders of the Party Committee, People’s Committee of Quang Yen Town; the comrades representing leaders of Departments and Departments of the Ministry of Construction, central and local press and television agencies; representatives of local government and people; Leaders of Viglacera Corporation and enterprises participating in investing in Dong Mai Industrial Park.

Viglacera Corporation has more than 20 years of experience in industrial park (IP) development in Vietnam, with 12 IPs with more than 4,000 hectares of leased land attracting more than 300 domestic and foreign investors. Among them are large and high-tech manufacturing corporations, multinational corporations such as Samsung, Hyosung, Amkor (Korea), Canon, Yazaki, Toyoda Gosei (Japan), Foxconn (Taiwan), BYD (China), etc. with investment capital up to tens of billions of USD.

Viglacera focuses on developing synchronous infrastructure in IPs: technical infrastructure, service infrastructure and social infrastructure, full of other utility services, Viglacera’s IPs have affirmed its outstanding advantages in the business of industrial real estate and become the leading industrial park developer in Vietnam.

Minister of Construction Nguyen Thanh Nghi directed at the ceremony

Particularly in Quang Ninh, Viglacera Corporation – JSC is currently the investor of two infrastructure investment and business projects in Dong Mai Industrial Park (Quang Yen Town) and Hai Yen Industrial Park (Mong Cai City). These are two of the industrial zones identified by Quang Ninh province as a key attraction for strategic secondary investors.

In which, Dong Mai Industrial Park has an area of 168 hectares, has completed the construction of technical infrastructure and has attracted 23 production enterprises with a workforce of about 15,000 people; it is expanding with an expected scale of 149 hectares and carrying out procedures to prepare for project investment.

Deputy Secretary, Standing Vice Chairman of the Party Committee of Quang Ninh Provincial People’s Committee Cao Tuong Huy spoke at the ceremony

With a location right next to Dong Mai Industrial Park, Dong Mai Industrial Park’s housing project for workers and experts developed by Viglacera Corporation – JSC has a total area of 9.1ha, including 5 blocks of 6 floors with 1,000 apartments for workers and 72 low-rise houses for professionals working in Dong Mai Industrial Park. The apartment area is from 26 – 67 m2, including 1 – 3 bedrooms; the low-rise land area is from 82 – 90 m2 and the construction area is from 245 – 287 m2. The project is invested with synchronous technical infrastructure and full utilities such as green parks, kindergartens, public services plus, fire protection system, supermarket, clinic, pharmacy, etc.

Director of Construction Investment Projects Management Board of Viglacera Corporation Tran Anh Tuan reported on the project at the Ceremony

The project has a selling price of only 7.1 million VND/m2 and the apartment rental price is only from 31,500VND/m2/month, this will help employees “settle in and live happily” with a long-term commitment to enterprises in the industrial park and ensure the goals of economic development and local social security.

Groundbreaking Ceremony of Dong Mai Industrial Park Housing Project for workers and experts

By taking the initiative and taking the lead in investing in worker’s housing in industrial zones, Viglacera is making a great contribution to implementing guidelines and policies of the Government and the Ministry of Construction as well as Quang Ninh province on social housing development for workers, especially when the situation accommodation shortage is increasing with the speed of industrial development in Vietnam, thereby it is demonstrated Viglacera’s responsibility to the community as well as increases its attractiveness for industrial zones that Viglacera invests in.

Layout of residential area for workers and experts in Dong Mai Industrial Park

The housing project is fully invested with utilities such as green park, kindergarten and supermarket