Vietnam: The World Largest Smart Phone Manufacturer Headquarter

Samsung has become the largest investor in Vietnam by setting up factory to produce electronics products in Vietnam and then export to more than 50 countries in the world.

According to Mr Hyun Woo Bang – Deputy General Director of Samsung Vietnam, the cheap and abundant labor source is not the main reason leading to the decision to expand Samsung’s investment in Vietnam.

In a recent meeting with the Ministry of Information and Communications, a leader of Samsung has revealed that each 100 employees in the mobile segment of Samsung, there are 80 Vietnamese. Currently, the corporation is employing around 130,000 employees in Vietnam.

In 1995, Samsung started to invest in Vietnam, so far has been 21 years. Since 2008, Samsung has formally invested in mobile phone manufacturing factory. Currently, Samsung has about 130,000 Vietnamese workers. There were so many people questioning if Samsung invested in Vietnam because of cheap labor. However, labor is not the most important factor. In terms of labor resources, Vietnam is not the richest country in comparison with India. Regarding labor costs, there are many other countries in the region also having cheaper labor costs than Vietnam. The quality of Vietnam’s labor is also not the best in comparison with surrounding countries.

Samsung invests in Vietnam is a strategic decision of the corporation based on the economic developments, tax policy, stable political factor, labor sources, the ability to import raw materials…

So far Samsung has invested nearly 15 billion USD in Vietnam. The two largest projects of Samsung in Vietnam are Samsung Electronics Vietnam (SEV) with an area of 110 ha in Yen Phong, Bac Ninh and Samsung Electronics Vietnam Thai Nguyen (SEVT) on an area of 170 ha in Pho Yen, Thai Nguyen. These two factories are producing and assembling mobile phone, tablet and phone components. Products from these factories will be exported to more than 50 countries and territories worldwide.

In addition, Samsung has recently invested more than 3 billion USD in Samsung Display (Bac Ninh); 300 million USD in R&D center specialized in researching and innovating new products.

In 2015, Samsung exported about 32.5 billion USD and two factories in Bac Ninh has provided 200 million mobile phones globally. In 2016, the factory in Ho Chi Minh City and Samsung Display will continue to go in operation with great outputs providing to the global market.

Vietnam has become the largest smart phone manufacturing headquarter in the world. Samsung has 9 factories and investing in many countries, but their investment in Vietnam is the largest.

In many countries around the world, the business environment of Vietnam is very stable. Perhaps because of large investments, Samsung always get the support from the Government and local authorities. Currently, there is a shift of capital flows of multinational corporations from one country to another. Therefore, Vietnam should base on the new context to offer attractive strategy accordingly.

Cre:http://www.antconsult.vn/news/vietnam-the-world-largest-smart-phone-manufacturer-headquarter.html

Large Amount of Australian Beef is Coming to Vietnam after TPP

Recently, not only large quantities of frozen beef are imported to Vietnam but also live cows are increasingly imported including non-quota and quota ways.

Imported cows were recorded at most from the Australian market. In 2012, there are about 3,500 cows, then rise to 70,000 cows in 2013 and 170,000 cows in 2014. This year, though there has not official figures, but the imported quantities will not decrease compared to the previous years.

There are so many large enterprises participating in the slaughtering supply chain and distributing to markets and commercial centers in provinces throughout the country so they will import a large amounts.

This is a not-protected-industry. Raising buffalo and cow in Vietnam is not the main income of many households, then this fact should not affect too much on the livelihoods of farmers. Only frozen beef industry will bear the heaviest damage when Vietnam joining in TPP.

With frozen chicken and pork, after entering the TPP, the market for imported chicken will have shifting from Brazil to the US, and pork from Denmark, Spain to the US, Canada because Vietnam enjoys preferential tax from TPP member countries.

For the consumption of frozen products, most of the imported cattle and poultry are using in the collective kitchens, industrial zones… Consumers also use but not a significant amount. Therefore, the objects that are affected after these products are massively imported to Vietnam are aquaculture farmers with large-scale production.

Cre:http://www.antconsult.vn/news/large-amount-of-australian-beef-is-coming-to-vietnam-after-tpp.html

Game on Mobile Phone Industry in Vietnam

About 3-4 years ago, the world’s game industry is undergoing a very big transformation, witnessing the rise of mobile gaming which outperformed the traditional platforms such as PC or console. In Vietnam, the gaming industry also falls in line with the world trend, many new companies or even large organization had developed mobile game.

In 2015, internet users in Vietnam reached 45 million, accounting for 48.4% of the total population of 93 million. The smartphone users reached 24 million, accounting for 25.8% of the total population, of which 9.3 million of mobile gamers and players loaded fee rate was 45%, reaching ARPPU index (average revenue average per player) is $ 27.71 (619.000 VND).

Until the end of 2015, the number of smartphone devices in Vietnam has reached $37 million, accounting for 52% the total number of mobile devices in the country. It can be seen from the General Statistic Office that from 2012 to 2015, 10 million devices have entered Vietnam’s market each year. Besides, Vietnam’s market has not come to saturation, so the potential growth for mobile gaming devices will continue to stay strong for at least 5-10 more years.

In terms of proportion of smartphone users based on age, the largest groups is from the age of 16-34 years old which accounted for 80% in 2015. In this group, the users from 16 – 24 years old take up to 45%. Besides, it can be noticed a remarkable rise of user groups of the age of 16-24 since this percentage rose from 20% in 2013 to 45% in 2015, indicating a huge change of demand of smartphone and purchasing power of smartphone.

If classifying users according to operating system, Android is still the most popular operating system in Vietnam in 2015 which accounted for 60% of users, followed by the 25% of iOS and Windows phone has the smallest market share of 15%. However, Windows phone showed significant change in 2015 when compared to 2014 (4%). It indicates the development of a new market alongside iOS and Android. This is a unique point in the Vietnam mobile gaming market compared to other countries.

In terms classification depending on by device users and gender, smartphone devices still dominated completely with 90.3%, while tablet only accounted for 9.7%. In terms of gender, the rate does not differ hugely with 58% male and 42% female.

Smartphone game market value in Vietnam in 2015 reach $ 116 million (2,592 billion VND), the growth rate was 39.75% compared with 83 million dollars (1,854 billion VND) in 2014.

In terms of marketing channel for mobile gamers, social network such as Facebook channel remains an ideal place to promote game which accounted for 45%, followed by the local ad network (Admicro, Nova Ads …) accounting 30%, while Google and PR normally accounts for respectively 15% and 10%. Thus, both domestic companies that wish to penetrate the market will be highly recommended to use the ad unit local to achieve optimum efficiency.

In a paid form of payment, Vietnamese users can mainly use the phone (85%) to pay for the mobile gaming, followed by domestic bank card (10%) and Visa / MasterCard (5%). Thus, the mobile game usually have good links with the network provider of mobile phones in Vietnam. It is due to the fact that the users have not had the habit of using cards.

Cre:http://www.antconsult.vn/news/game-on-mobile-phone-industry-in-vietnam.html

Market entery into Vietnam market through merger and acquisition

Over the past 10 years, Vietnam has always been one of the leading M&A destinations in Southeast Asia. Many international investors have chosen Vietnam as their place of business destination to set up company and apply for investment registration certificate under direct investment or acquiring shares or capital contributions through M&A.

M&A activities enable international businesses to take advantage of the existing business platforms of Vietnamese businesses to continue making investments. This helps international investors to timely grasp the changing trend of technology, legal policies, and facilities to do business, instead of rebuilding from scratch, it will take more time and effort.

Recently, the M&A market in Vietnam has been active and attractive to many investors around the world, especially in the retail and financial sectors. Many international investors have undertaken significant M&A deals in Vietnam over the years and achieved significant profits in their business.

There are many reasons for investors to choose Vietnam as a place to do business, but some of the main factors that make Vietnam attractive are political stability and its economic growth, despite the effects of the Covid-19 epidemic. In addition, with a population of 100 million people, this is considered a large consumption market, along with an abundant and high-quality labour source.

Currently, with the trend of moving production out of China, many investors have chosen Vietnam as the location of setting up company for manufacturing facilities. Rebuilding factories from scratch also makes investors time consuming and costly, therefore taking advantage of Vietnamese factories will help investors not to interrupt their production, and operate the business in a best way.

However, to be able to perform M&A activities in Vietnam, foreign businesses need to understand the Vietnamese market and partners before performing M&A. This will help investors understand the partners’ strengths and weaknesses, and outline a suitable business path after implementing M&A. In addition, to avoid unnecessary risks relating to the transaction and to the business itself, investors need to find a reputable and experienced professional consulting company that could help with market research, background check, management criminal record check, business certificate verification, corporate and individual reputation to build up confidence in doing M&A deal in Vietnam.

Cre:https://www.antconsult.vn/news/market-entery-into-vietnam-market-through-merger-and-acquisition.html