How to work abroad

Sharp increases in capital contributions and share purchase

According to the Ministry of Planning and Investment (MPI), there were 1,321 valid projects invested in by Vietnamese enterprises abroad with a total registered capital of US$20.6 billion by the end of 2019. The disbursement of the investment capital was US$9.49 billion by the end of the same year.

Vietnamese enterprises have invested in 78 countries and territories across the world with the largest investments poured into Laos, Russia, Cambodia, Venezuela, and Myanmar. Enterprises invested in 18 key industries and sectors with the biggest capital running in the oil and gas industry, accounting for 38.4% of the total offshore investment capital.

About 15.3% of the investment capital was poured into agricultural, forestry and fishery sector while 12.8% of the capital was invested in telecommunications and information technology and 7.2% of the capital went into the hydroelectricity sector.

The number of small and medium-sized projects run by the private sector has increased over the years while the number of large-scale projects run by State-owned enterprises in the areas of oil and gas exploration and extraction, telecommunications, industrial crops and hydroelectricity has fallen sharply.

The volume of investment capital transferred abroad has tended to decrease since the 2015-2017 period due to a plummet in the number of large projects.

According to the MPI, accumulated profits transferred to Vietnam from abroad was approximately US$3 billion while the profit retained for reinvestment was about US$363.4 million. Nearly 10,000 Vietnamese workers have been sent abroad to work.

In addition, Vietnamese enterprises have established a significant amount of assets abroad including factories and production facilities worth billions of US dollars. These are favourable conditions for Vietnamese enterprises to expand their overseas investment and business activities in a context of deeper international economic integration.

Notably, investment abroad in 2019 was entirely implemented by the private sector with no projects conducted by State-owned enterprises. More and more large private corporations and domestic joint stock companies have invested in developed countries in order to expand their market and affirm their brands such as Vingroup, Vietjet, Thaco, T&T, Vinamilk, FPT, and others.

Investment forms are also diverse with an increasing number of investment projects in the form of capital contributions and share purchase in foreign enterprises.

Minister of Planning and Investment Nguyen Chi Dung said that there are Vietnamese enterprises that have spent US$3-5 million to buy shares of foreign enterprises that are now valued in the hundreds of millions of US dollars.

Major global changes due to the COVID-19 pandemic have led to a wave of mergers and acquisitions through capital contributions and share purchase at potential companies for very cheap prices. Vietnamese enterprises need to have big aspirations to participate in this market segment to accelerate the process of reaching out to the world and bringing greater value into the country.

To date, five Vietnamese enterprises have invested abroad with registered capital of over US$1 billion each including the Vietnam Oil and Gas Group (Petrovietnam), Military Industry and Telecoms Group (Viettel), Vietnam Rubber Group, Hoang Anh Gia Lai Group, and Long Thanh Golf Investment and Trading JSC.

Besides these impressive achievements, there remain inadequacies including legal risks, international lawsuits and disputes, slow progress of projects, and ineffective implementation of projects, among others.

According to experts, the change in the investment tendency of Vietnamese enterprises in recent years has been market-oriented and consistent with the process of trade and investment liberalisation and international economic integration.

There is large room and great potential in international markets, thus, the most important thing for offshore investment is to perfect mechanisms and policies and create more favourable conditions for private enterprises to easily invest their resources abroad in order to transfer the profits to Vietnam. Meanwhile, enterprises need to improve their governance capacity, their ability to grasp the market and sufficiently strong cash flows.

The amended Law on Investment which will take effect on January 1, 2021 has completed policies on investment abroad regarding clear updates of cases prohibited from investment abroad, conditions accompanied with investment abroad, lending abroad, reporting the process of State management agencies related to investment abroad, the use of profits from overseas projects to contribute to other projects abroad, and others.

To prevent risks in offshore investment activities, the MPI has proposed the Government assign relevant agencies to review and evaluate investment trends abroad in the areas of real estate and the investments of foreign investors in Vietnam abroad in order to devise timely solutions to problems arising.

In addition, Vietnam should boost negotiations and early signing of investment promotion and protection agreements with countries receiving large investment from Vietnam or with Vietnam’s potential partners to create a legal framework for safe and effective investment abroad.

Construction of the Thu Thiem 2 Bridge spanning the Saigon River to link District 1 with District 2 (now part of Thu Duc City) started in 2015. The 1.4 kilometers long, six lane bridge would connect with the Thu Thiem New Urban Area.

Being built at a cost of nearly VND3.1 trillion ($134.9 million), the project was originally scheduled for completing in 2018. As of last year, work on the project was 70 percent complete but construction on certain sections in District 1 continues to face delays since some of the required land belongs to the Ministry of National Defense.

The cable-stayed bridge, with its main tower rising 113 meters and leaning towards Thu Thiem, is supposed to become an architectural highlight on the river with an artistic lighting design. Once complete, it will help connect the downtown HCMC with the Thu Thiem New Urban Area and ease traffic congestion at the intersections of Ton Duc Thang-Nguyen Huu Canh streets and Ton Duc Thang-Le Thanh Ton streets in District 1.

The bridge as seen from Ton Duc Thang Street in District 1. Work resumed on Thursday on the bridge after city authorities worked with Dai Quang Minh and others to tackle all issues so that the project can be completed in 2023.

In 2016, work began on the Nam Ly Bridge on Do Xuan Hop Street at the cost of VND857 billion. It was to replace an old one that had degraded and was too small to meet rising traffic demand. The 450m long, 20m wide bridge over the Rach Chiec Canal was to be completed in 2018, but in 2019, just 39 percent of the work had been done. The project has been put on hold since, awaiting site clearance.

Building materials rust on the half-finished bridge.

Wild plants grow around barriers set at the foot of a bridge span. Locals have begun using them to advertise various products and services.

Some areas beneath the unfinished bridge resemble landfills.

Six kilometers from Nam Ly, the Tang Long Bridge on La Xuan Oai Street is another one that has been languishing after work began in 2017. The 680 meters long bridge over the Trau Trau Canal is meant to replace an old, downgraded one nearby.

The VND450 billion bridge was to be completed in 2019, but so far, only around 30 percent of the work has been done, site clearance proving to be the stumbling block, yet again.

Work on the Long Dai Bridge across the Tac River, a tributary of the Dong Nai River, began in March 2017. Built at a cost of VND353 billion, it was to be completed in two years. But two years after the original deadline, the bridge is far from completion with around 50 percent of the work remaining unfinished. Construction work on the bridge stopped in December, 2018.

The delay in site clearance has been blamed on disagreements over the compensation.

A ceremony marking the handover was held April 9 at the offices of the 3rd Regional Coast Guard in the southern province of Ba Ria – Vung Tau.

Attending the ceremony were Vietnam Coast Guard commander Lieutenant General Nguyen Van Son, U.S. Consul General Marie Damour and other officials, the U.S. embassy said in a Facebook post Saturday.

Lt. Gen. Son said that Vietnam highly appreciated the U.S. gesture and considered the event “an important milestone of the Vietnam-U.S. partnership,” helping Vietnam improve its law enforcement capacity at sea.

The cooperation between the coast guards of both countries has strengthened in recent years.

In 2017, the U.S. Coast Guard handed over the Hamilton-class (the second-largest class of vessels in the U.S. Coast Guard) USCGC Morgenthau cutter to the Vietnam Coast Guard under their Excess Defense Articles (EDA) program. The ship was then commissioned for the Vietnam Coast Guard and renamed CSB 8020.

The U.S. has also sold a total of 24 Metal Shark high-speed patrol boats and is overhauling the USCGC John Midgett, another Hamilton-class vessel, to hand it over to Vietnam.

At a press conference in Hanoi, outgoing U.S. Ambassador Daniel Kritenbrink had remarked that security cooperation was developing strongly between the two countries, especially between the two militaries.

He said that Vietnam and the U.S. have worked together to implement a United Nations resolution on North Korea and to promote a common stance on the East Sea. The U.S. has assisted Vietnam in building its defense capacity, especially maritime capabilities, and supported Vietnam in sending peacekeeping personnel to South Sudan.

Referring to East Sea disputes, Kritenbrink had stressed that the U.S. always stood by its partners and allies in building an international order based on rules, and opposed ” the provocative actions of China with the other countries in the region.”

Speaking at the Theoretical Council’s meeting in Hanoi, the Party leader highly valued the council’s work during 2016-2021.

He also suggested some issues needing attention in the time ahead and asked for thorough understanding of the requirements in the political theoretical work in the new period.

The leader told the council to study new theoretical issues in the world, experiences of developed countries, along with scientific – technological revolutions.

General Secretary Trong also asked the council to improve the quality and effectiveness of political theory-related advice to help the Party Central Committee , the Politburo, and the Secretariat direct national development and defence efforts./.

Three Vietnamese people who recently returned from abroad have tested positive for SARS-CoV-2, raising the total number of patients in the country to 2,784, the Ministry of Health reported on Sunday evening.

Illustrative photo

According to the ministry’s report, the newly-reported patients include two men and a woman aged between 23-51 who returned from Japan, Angola, and the US. They were sent to quarantine areas in Khanh Hoa, Hoa Binh, and Bac Ninh provinces upon arrival and are now being treated at local hospitals and healthcare centres.

With these new infection cases, the number of Covid-19 patients in Vietnam has increased to 2,784, including 910 locally-transmitted cases reported since the new outbreak started in Hai Duong on January 28.

As of 6 pm on April 18, a total of 2,475 Covid-19 patients had recovered and been discharged from hospital. There have been 35 deaths, most of them being the elderly with serious underlying diseases.

At present, over 40,000 people who had close contact with Covid-19 patients or returned from virus-hit areas are being monitored at hospitals, quarantine facilities, and at home.