6 Smart Moves to Improve ESG for Exporters in Vietnam and Unlock Global Trade Advantages

  The World Is Watching

You have the product. The factory is certified. Your logistics are smooth. But is your factory ESG readiness.  Let’s discuss how to improve ESG for exporters in Vietnam.

Across Vietnam, exporters are being asked not just about price or quality, but about responsibility. Foreign buyers want to know how your business treats workers, handles waste, and prevents corruption. ESG for exporters in Vietnam will become a key to global trade.

In here we talk about how ESG for exporters in Vietnam is now linked to contracts, audits, and free trade incentives. It outlines six moves to help you meet expectations, build trust, and secure your place in international supply chains.

ESG for exporters in Vietnam Becomes a Ticket to Global Trade

In the past, exporting from Vietnam required good logistics, decent pricing, and product quality. Those things still matter. But now they are only the beginning.

What used to be called soft requirements are now showing up in contracts, audits, and trade rules. ESG for exporters in Vietnam has become a filter. Buyers use it to decide who to work with, and who to avoid.

This is not just a global story. It is happening in Vietnam.

Exporters are being asked to show labor policies. Submit environmental records. Sign supplier codes of conduct. And some are even being dropped for failing ESG checks.

The expectation is clear. Companies are expected to be responsible in how they produce, how they manage people, and how they report operations.

And for those who prepare, there are real benefits.

ESG for Exporters in Vietnam

ESG Is a Trade Strategy, Not a Compliance Burden

Many factory managers feel nervous when ESG comes up. They worry it means more paperwork. More audits. More stress.

But that is not the full story.

If being done right, ESG for exporters in Vietnam can give business a strong position. It helps build trust. Qualify for new markets. Improve operations. And lower long-term risks.

We will walk you through:

• What ESG means for export-ready manufacturers in Vietnam
• How it connects to free trade agreements and buyer expectations
• Six practical moves you can make right now
• And how to avoid common mistakes and greenwashing

With the right mindset, ESG can become growth lever, not obstacle.

What ESG Looks Like in Practice for Vietnamese Exporters

Imagine this.

Two factories produce the same product. Both are located in Vietnam. Both offer competitive pricing. But one factory has proper labor records, clean environmental audits, and a code of ethics signed by employees. The other does not.

A buyer from foreign country comes knocking. Who gets the contract? The factory with ESG readiness wins.

That is how ESG for exporters in Vietnam plays out, quietly shaping who gets approved, who gets audited, and who gets left behind.

Here are the three pillars of ESG for exporters in Vietnam, and what they look like in an export-ready business:

Environmental (E)

• Monitoring of electricity, water, and emissions
• Waste management procedures in place
• Legal environmental permits on file
• Reporting of carbon footprint or sustainability actions

Social (S)

• Written employment contracts for all workers
• Compliance with minimum wage and insurance rules
• Safety procedures and training logs
• Respect for labor rights and anti-discrimination policies

Governance (G)

• Transparent company ownership and tax records
• Anti-corruption policies in writing
• Signed supplier codes of conduct

These are not extreme measures. Most of them are achievable with basic organization and internal controls. But without them, many exporters are blocked from premium markets.

ESG Is Now Embedded in Global Trade and Vietnam’s Future

There is no debate left. ESG for exporters in Vietnam is to stay. And there are five strong reasons why exporters in Vietnam must take it seriously now:

Free Trade Agreements Are Tied to ESG

Vietnam has signed FTAs like the EVFTA, CPTPP, and RCEP. These agreements include chapters on labor rights, sustainable development, and environmental protection.

Even if local enforcement is still developing, foreign buyers already use these standards to filter suppliers. Meeting ESG conditions often decides whether you get duty preferences or preferred supplier status.

Foreign Buyers Are Enforcing ESG via Contracts

More brands and retailers are embedding ESG terms in drafting purchase agreements in Vietnam. These include supplier self-assessments, right-to-audit clauses, and termination rights in case of non-compliance.

This means that ESG for exporters in Vietnam is now contractually enforceable, not just morally encouraged.

Vietnamese Law Is Catching Up Fast

Recent updates to the Environmental Protection Law and Labor Code have expanded compliance obligations. Inspections are becoming more frequent. Penalties are rising. And new laws are aligning with international norms.

Staying ahead of local ESG laws in Vietnam helps prevent fines and disruptions.

ESG Opens Access to Incentives

Banks and investment funds are beginning to offer better rates to ESG-aligned borrowers. In the future, exporters with verified ESG compliance in Vietnam may enjoy faster customs clearance or green trade certificates.

These early incentives reward businesses that prepare now.

Global Brands Are Under Pressure

Major brands are under pressure from shareholders and consumers to clean their supply chains. That pressure passes down to exporters in Vietnam. If you fail to meet their ESG standards, they will replace you. If you exceed them, you become a key partner.

6 Moves to Master ESG for Exporters in Vietnam

Move 1: Align ESG With Your Export Destinations

Different countries have different ESG expectations. A country might prefer carbon data and labor rights. Another might look closely at forced labor risks. Or another country focuses on workplace harmony and transparency.

Match your ESG efforts to where your goods are going.

Move 2: Build an ESG Audit File

Prepare for buyer audits in advance. Start a file that includes:

• Labor contracts and salary logs
• Safety training documents
• Environmental permits and waste records
• Company ethics policy and internal complaint process

Having this ready shows buyers that you are professional and prepared.

Move 3: Appoint ESG Contact Inside Your Company

Assign someone in your team to take ownership of ESG tracking. This person can lead internal checks, collect data, and update policies as needed.

Just someone responsible and trained.

Move 4: Train Employees on ESG Standards

Your policies only matter if your people understand them. Hold short, regular sessions to explain:

• Worker rights
• Safety practices
• Company rules and ethical behavior

Keep records of each session. These are valuable proof during audits.

Move 5: Work With ESG-Aware Legal Advisors

Local law firms in Vietnam understand the ESG requirements under both Vietnamese law and international buyer expectations. They can help you:

• Interpret audit questionnaires
• Draft ESG policies and codes of conduct
• Avoid greenwashing and vague claims

The right advisor saves you time, cost, and risk.

Move 6: Communicate Honestly With Buyers

When being asked about ESG, be transparent. Share what you have done. Show your progress. Admit what is still in development.

Buyers do not expect perfection. They expect clarity and effort.

Simple Step-by-Step Guide to ESG for Exporters in Vietnam

Step 1: Review Your Buyer Requirements

• Check your current buyer contracts for ESG-related clauses
• Review any supplier self-assessment forms or audit checklists

Step 2: Identify What ESG Areas Apply to You

• Environmental: emissions, water, and waste
• Social: labor compliance, wages, safety, contracts
• Governance: anti-bribery, corporate compliance, recordkeeping

Step 3: Assign Internal Roles

• Appoint an ESG lead
• Assign basic tasks: data collection, training, documentation

Step 4: Draft or Update Key ESG Policies

• Create simple, written documents covering environmental practices, labor rights, and business ethics
• Train your team on these policies

Step 5: Organize Your Documents

• Keep all contracts, permits, training logs, safety procedures, and supplier communications in one place
• Prepare to share these during buyer audits or inspections

Step 6: Engage an Advisor if Needed

• A local lawyer in Vietnam can help tailor your approach to match both Vietnamese law and global buyer standards

Frequently Asked Questions (FAQ)

What does ESG mean for an exporter in Vietnam?

Answer: ESG refers to how your business handles Environmental, Social, and Governance responsibilities. For an exporter in Vietnam, this means managing pollution, protecting workers’ rights, and maintaining ethical and transparent operations, all of which are now reviewed by international buyers and trade partners.

Is ESG compliance legally required in Vietnam?

Answer: While there is no single ESG law, many Vietnamese laws already cover ESG-related issues. For example, the Environmental Protection Law, Labor Code, and Anti-Corruption Law all impose obligations that align with ESG principles. Exporters who ignore these rules risk inspections, penalties, or lost contracts.

Do all foreign buyers require ESG compliance?

Answer: Increasingly, yes. Buyers from developed countries are making ESG a condition for doing business. It may appear in supplier codes of conduct, audit requirements, or contract terms. Even if it is not formalized, ESG is often considered during vendor selection.

How can small or mid-sized exporters handle ESG requirements?

Answer: Focus on what is legally required and build from there. Many ESG practices are about proper documentation, training, and management, not high technology. It is possible to meet ESG expectations with good organization, internal policies, and guidance from local lawyers in Vietnam.

Can ESG help company gain trade benefits?

Answer: ESG alignment can improve chances of qualifying for FTAs like EVFTA and CPTPP. It may also help access green finance, win more contracts, and reduce the risk of supply chain disruptions.

ESG Is the New Standard for Global Exporters in Vietnam

The future belongs to exporters who are responsible, reliable, and ready. Not only in what they make, but also in how they make it.

ESG for exporters in Vietnam is not a barrier. It is a bridge. A way to show the world that Vietnamese-made goods are not just cost-effective, but also ethically produced and globally trusted.

You have the factory. You have the product. Now is the time to build the credibility that keeps orders coming.

And ESG is how you do it.

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/esg/esg-for-exporters-in-vietnam.html

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New Taste of Singaporean Investors

  Recent projects of Singaporean investors have shown new features in the investment taste of Singapore enterprises when they decide to set up business in Vietnam.

In July 2017, United Overseas Bank (UOB - Singapore) was approved by the State Bank of Vietnam (SBV) in principle to set up a 100% foreign owned bank in Vietnam. The list of personnel proposed to be appointed as members of the Board of Members, the Board of Supervisors, the General Director of UOB has also been approved. After much waiting, UOB finally has a "passport" to operate in Vietnam as a bank with 100% foreign capital in Vietnam. What is left is just completing the dossiers and procedures for the SBV to make the final decision.

UOB is the first bank in Singapore setting up a subsidiary in Vietnam. This event seems to mark the "new taste" of Singaporean investors. Previously, Singapore's investment capital is mainly focused on such projects as processing, manufacturing and real estate. Now, it seems that the cash flow is changing direction.

Not just banking project, latest information indicates that Singaporean investors have also begun to pay attention to the energy sector in Vietnam. Last year, UOB under UOB Venture Management Pte Ltd (UOB VM), along with ORIX Corporation (Japan) have invested 25 million USD in Bitexco Power JSC under Bitexco Group. The involvement of well-known global organizations like UOB and ORIX will make a significant contribution to Vietnam's energy sector.

In addition, Sembcorp is also a Singaporean investor willing to invest billions of dollars for a power plant in Vietnam.

According to the information, at the end of July 2017, Sembcorp's representative went to Quang Ngai to officially report to the leaders of this province that Sembcorp will have a Feasibility Study Report at the end of this year about the gas thermal power plant in Dung Quat Economic Zone.

Last year, The Blue Circle – Singapore’s wind power developer has received an investment certificate for a 40 MW project in Ninh Thuan province, with investment capital in the 1^st phase of 60 million USD.

In fact, Singapore has always been a leading investor in Vietnam. According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the accumulated capital so far invested by Singaporean enterprises is 41.6 billion USD, ranking 3^rd in countries and territories investing in Vietnam. Many of Singapore's projects have contributed significantly to Vietnam's socio-economic development.

One of the noteworthy examples is Sembcorp joint venture with Becamex to develop a series of VSIP industrial parks and urban areas spanning across Vietnam, from Binh Duong, Bac Ninh, Hai Duong to Quang Ngai, Nghe An, Hai Phong... At the beginning of this year, VSIP decided to invest in a third industrial zone in Binh Duong, with a total registered capital of 284.75 million USD.

Not only VSIP, many other Singaporean investors have also succeeded in Vietnam and are continuing to boost investment. Last year, Mapletree Investment Pte Ltd decided to acquire Kumho Asiana Plaza Saigon in District 1, Ho Chi Minh City from Kumho Industrial Company Limited and Asiana Airlines Incorporated. After this deal, Mapletree's assets in Vietnam amounted to more than 1 billion SGD.

Prior to Mapletree, Keppel Land has also acquired 40% of the Empire City project in District 2, Ho Chi Minh City, equivalent to 93.9 million USD. Not to mention, many other Singaporean enterprises have also invested much in Vietnam, such as Banyan Tree with Laguna Lang Co project, total capital of 875 million USD; or KinderWorld with a series of international schools in many provinces, cities and is continuing new investment plans...

Not stopping with the current results, Singaporean enterprises are still quietly looking for new investment opportunities in Vietnam. The fact that UOB opened a subsidiary in Vietnam is to serve the purpose of investing more and more in Vietnam of Singaporean enterprises.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/industry/new-taste-of-singaporean-investors.html

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Why Japan Investors Invest in Vietnam

  The depreciation of yen against dollar, more available funds for loans from Japanese banks, and the fast aging population make Japanese corporations increasing investment in foreign markets including Vietnam through setting up business venture.

In a morning of Jan 22^nd 2015, the office of Ministry of Planning and Investment and Foreign Investment Agency have met and worked with small and medium business delegation of Japan to explore investment opportunities in Vietnam.  The Japanese business delegation led by Mr. Shuichi Kageyama, vice president of Sumitomo Mitsui Banking, are representative of 21 companies operating in the area of construction, real estate, electronics, manufacturing, chemicals, pharmaceuticals products, medical devices.  The visit has shown interests of Japanese investors in various sectors in the socio-economic development, environmental and investment policies of the government of Vietnam in attracting foreign investment. The Vietnam government also shows effort to support Japanese investor through improving on administrative procedures, and transparency.

The visit of Japanese delegation to Vietnam should be noted amid the strongest wave of Japanese corporations’ investment into foreign markets since 2006 after building up record cash on hands.  The yen has been at weak level making M&A into foreign market expensive.  However it is expected that yen will depreciate further against dollar over the year to come due to the policy of Mr. Shinzo Abe. In the meantime, Japanese banks are also ready to make more funds available for loans.  Another fact is that Japanese population is aging faster. Those combined reasons together with Vietnam's attractiveness for investors make Japanese corporations increase investment through making direct investment or acquiring other corporations in foreign markets including Vietnam.

According to the Foreign Investment Agency, as of Oct 2014, Vietnam has attracted more than USD 36.5 billion from Japan with more than 2,434 FDI projects. Japan ranks first in the number of countries and territories that have investment projects in Vietnam, in which, the first 10 months of the year 2014, total investment of newly registered and increased capital from Japan reached USD 1.66 billion.  Thanh Hoa has 9 projects with a total investment of USD 9.68 billion; Hanoi has 607 projects at nearly USD 4 billion; Binh Duong province has 241 projects at USD 3.8 billion.

Japanese corporations invest in various area including retail, food processing, IT, manufacturing, constructions.  Several prominent Japanese investors have been successful in Vietnam are Cannon, Isuzu Motors, Ajinomoto, Toyota Corporations, Logitem Logistics, Mitsubishi Corp, Kotobuki Holdings, Taisei Corp, Sumitomo Corp, Itochu Corp. The list will continue to grow as the time to come as Japan diversifies from China and Vietnam continues to emerge as an attractive destination.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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Foreign Corporations Want to Invest in The Vietnam Seaports

  Sebrina Group Holdings Ltd (Singapore) expressed their desire to seek more opportunities for cooperation between the Group and the Ministry of Transport of Vietnam in the near future; they also showed their interest in the projects to build seaport in Vietnam...

At the meeting with Minister of Transport Dinh La Thang on September 3^rd, Mr. Nasrat Muzayyin - CEO and Co-founder of Sebrina Group Holdings Ltd (Singapore) expressed his desire to seek more cooperation opportunities between the Group and the Ministry of Transport of Vietnam in the coming time.

Accordingly, Sebrina Holdings is a strong business in the energy sector. The Group wants to find out traffic projects related to energy in Vietnam. Simultaneously, the Group also expressed interest in the projects to build seaport in Vietnam.

Presently, Vietnam needs to develop breakthrough many sectors, in which transportation infrastructure is seen as one of the bottlenecks that need to develop rapidly in the future.

On that basis, the Minister appreciated the interest of foreign investors, including the Sebrina Group Holdings Ltd and pledged to create favorable conditions for investors to access to essential information about projects for researching and investment in developing the transportation infrastructure in Vietnam.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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Vietnam Prime Minister Visits Japan to Promote Investment

  Japan has played more and more important role as a strategic investor in Vietnam through making investment and setting up business in Vietnam with growing number of foreign direct investment projects.

Accepted the invitation of Prime Minister Shinzo Abe, Prime Minister Nguyen Tan Dung will lead Viet Nam delegation to attend The Seventh Mekong-Japan Summit Meeting in Tokyo from Jul 2 to Jul 4th, 2015.

This is an important conference to unify the orientation about Mekong-Japan cooperation for the period 2016-2018. The conference will review the situation between Mekong-Japan cooperation, especially resulting the implementation of the Mekong-Japan Action Plan in the 2013-2015 period and measures the priorities in the near future.

Foreign Ministry Spokesman Le Hai Binh said, Prime Minister Nguyen Tan Dung attend The Seventh Mekong-Japan Summit Meeting to promote Economic Society development of the Mekong Sub-region in general and of Vietnam in particular, as well as consolidate friendship and cooperation between Vietnam and the Mekong region countries, and most important strengthen Vietnam's Extensive Strategic Partnership with Japan.

Within the framework of this Summit, Prime Minister Nguyen Tan Dung will have talks with Prime Minister Shinzo Abe of Japan and with The Leaders of the Mekong region countries.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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Which Sectors Attracting Investment in First Half of 2015?

  The trend of foreign direct investment (FDI) in Vietnam continues to tremendously increase into key sectors such as industrial processing and manufacturing, business and real estate, wholesale and retail, through setting up business in Vietnam.

Accordingly, the disbursed FDI inflows in June positively increased and exceeded the growth rate of last year. In June 2015, registered and new FDI is 1.19 billion dollars, bringing the total registered and new value to 5.49 billion dollars since the beginning of this year, equivalent to 80.2 % value of the same period in last year 2014.

In particular, FDI registered capital of 3.83 billion USD since the beginning of 2015 is equivalent to 79% FDI capital of the same period in 2014. Additional FDI capital was 1.65 billion in the first 6 months of 2015, equivalent to 83% FDI capital of the same period of 2014. The FDI project has disbursed a total of 6.3 billion, increase 9,6% value in the same period in 2014.

FDI in small-scale projects has a tendency to continue to play a leading role as the previous month. In June 2015, Vietnam has not had any large-scale projects yet. Meanwhile, small-scale projects including new and additional capital have increased. The number of new projects increased by 15% and the number of additional capital projects increased more than 28%.

Foreign investment in Vietnam in the past 6 months continuously focuses on key industries like processing industries, manufacturing, business and real estate, wholesale and retail.

Previous figures of Foreign Investment Agency (Ministry of Planning and Investment) stated that processing industries, manufacturing continues are the sector attracting the interest of foreign investors with 338 registered investment projects and 190 new projects increased capital, with total new and additional capital is 4.18 billion, which accounts for 76.2% of total registered capital. Real estate is second with 11 projects registered and 7 projects increased capital. The total investment of newly registered and additional capital is 465.5 million USD, accounting for 8.5% value of total capital investment. At third, the wholesale and retail sector with 119 new projects and 26 projects increased capital. The total investment of newly registered and additional capital is 276.5 million USD, accounting for 5% value of the total investment.

Compared with the same period of 2014 figures, it’s clearly that foreign capital invested in the retail sector is growing. In the first 6 months of 2014, FDI in retail sector figures stop at about 1.4% of total registered FDI capital in Vietnam. In the first 6 months of 2015, this figure has increased by 5%.

In conclusion, thanks to the considerably development in recent years, the retail industry has risen and competed against the construction industry, becoming one of three areas which attracts foreign capital the first six months of the year 2015.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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Japan Increases Investment in Vietnam in Finance and Services

  Japanese investors have switched from setting up business in Vietnam in manufacturing into financial investment, retail.

• Why Japanese Investors Invest in Vietnam?
• Three Reasons Japan Invests in Vietnam
• Why Japan Will Increase Investment in Vietnam

Til end of Jan 2015, Japan is the second largest foreign investors in Vietnam in direct investment form with 2,494 projects, and total registered capital of nearly 36.9 billion USD however there have been changes in the structure of the investment capital in Vietnam.  In particular, the manufacturing sector once accounted for the largest proportion of investment in Vietnam drops 30% from nearly $ 1.2 billion in 2013 to nearly 830 million 2014.  In fact, the projects in the manufacturing sector often require huge capital during a long-term investment.  In the context that Japan's economy faces difficulties as well as the global economy is not bright, the reduction of investment in the manufacturing sector is also understandable.

In indirect foreign investment in Vietnam, Japan ranks sixth in the list of countries conducting M&A in Vietnam with more focus on small or medium but long-term and potential large area.  The field of production only accounts for 10% of the total value.

However, the recent survey has shown there is a new wave of Japanese investment in other sectors such as construction, real estate, transportation or financial investment.  The report of The Japan External Trade Organization, or JETRO, a Japanese government-related organization that promotes trade and investment reflects the proportion of new investment projects in the construction, real estate increased from 3% in 2013 to 6% in 2014, while the capital had risen to 13%, compared with 2 % of a year ago.

In real estate sector, Tokyu Corporation has joined invested with Becamex IDC to develop Tokyu Binh Duong Garden City in an area of ​​over 110 hectares with a total investment of about USD 1.2 billion. Daibiru Corporation also acquired the office building Corner Stone in Hanoi with value of the deal at USD 60.1 mil.  These are example that Japanese investors recognizing the potential development of Vietnam’s changes in real estate market as the land ownership have been approved and effective from Jul 2015. As reported, M&A deals in real estate in 2014 accounted for 61% of M&A deals.

In financial investment, in 2014, Daiwa PI Partners and Vietnam Opportunity Fund of Vina Capital invested USD 45 million in the International Dairy Joint Stock Company, making foreign ownership increase to 70%.

In retail sector, Vietnam is also considered as an attractive market with growing mid-income consumer group. The largest retailer Aeon Japan after years of market research has poured more than USD 500 million for two commercial centers were opened in Ho Chi Minh City, Binh Duong and a new center in Long Bien (Hanoi).  The group also plans to expand through acquiring shares of two local supermarket being Fivimart and Citimart.

It appears that Japan is holding strong among the leading investors in Vietnam, together with Korea and Singapore.

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Why Japan Investors Invest in Vietnam

  The depreciation of yen against dollar, more available funds for loans from Japanese banks, and the fast aging population make Japanese corporations increasing investment in foreign markets including Vietnam through setting up business venture.

In a morning of Jan 22^nd 2015, the office of Ministry of Planning and Investment and Foreign Investment Agency have met and worked with small and medium business delegation of Japan to explore investment opportunities in Vietnam.  The Japanese business delegation led by Mr. Shuichi Kageyama, vice president of Sumitomo Mitsui Banking, are representative of 21 companies operating in the area of construction, real estate, electronics, manufacturing, chemicals, pharmaceuticals products, medical devices.  The visit has shown interests of Japanese investors in various sectors in the socio-economic development, environmental and investment policies of the government of Vietnam in attracting foreign investment. The Vietnam government also shows effort to support Japanese investor through improving on administrative procedures, and transparency.

The visit of Japanese delegation to Vietnam should be noted amid the strongest wave of Japanese corporations’ investment into foreign markets since 2006 after building up record cash on hands.  The yen has been at weak level making M&A into foreign market expensive.  However it is expected that yen will depreciate further against dollar over the year to come due to the policy of Mr. Shinzo Abe. In the meantime, Japanese banks are also ready to make more funds available for loans.  Another fact is that Japanese population is aging faster. Those combined reasons together with Vietnam's attractiveness for investors make Japanese corporations increase investment through making direct investment or acquiring other corporations in foreign markets including Vietnam.

According to the Foreign Investment Agency, as of Oct 2014, Vietnam has attracted more than USD 36.5 billion from Japan with more than 2,434 FDI projects. Japan ranks first in the number of countries and territories that have investment projects in Vietnam, in which, the first 10 months of the year 2014, total investment of newly registered and increased capital from Japan reached USD 1.66 billion.  Thanh Hoa has 9 projects with a total investment of USD 9.68 billion; Hanoi has 607 projects at nearly USD 4 billion; Binh Duong province has 241 projects at USD 3.8 billion.

Japanese corporations invest in various area including retail, food processing, IT, manufacturing, constructions.  Several prominent Japanese investors have been successful in Vietnam are Cannon, Isuzu Motors, Ajinomoto, Toyota Corporations, Logitem Logistics, Mitsubishi Corp, Kotobuki Holdings, Taisei Corp, Sumitomo Corp, Itochu Corp. The list will continue to grow as the time to come as Japan diversifies from China and Vietnam continues to emerge as an attractive destination.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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UK Company Interested in Vietnam Aviation Market

  NATS (National Air Traffic Solutions), a UK-based aviation solutions provider, has showed its ambition to set up company in Vietnam and enter the Vietnam aviation market. In addition, NATS is interested in Long Thanh Airport.

NATS is headquartered in the UK but the company is also present in Asia and is currently implementing a globalization strategy. NATS is planning to expand its market in addition to offices currently based in Singapore, Hong Kong and Bangkok. In which, Vietnam is an important market for NATS because Vietnam aviation market is growing at a very fast speed. The number of passengers is expected to double by 2020.

Vietnamese airlines are bringing in a lot of new aircrafts. Therefore, Vietnam aviation industry is facing many challenges in terms of infrastructure and air traffic control... Therefore, NATS with experiences working and managing airports with one, two, three runways as well as the busiest airports in the world are ready to assist the Vietnam aviation authorities to operate more effectively.

Long Thanh Airport is a concern of NATS because it will be a large airport. NATS always wants to be able to deliver efficient, optimal management solutions to airports with high capacity. Currently, NATS is supporting the management of 2.4 million flights and 250 million passengers a year in the UK. Moreover, they are also involved in managing and providing solutions to many major airports in Europe. NATS has been presented in Asia for 40 - 50 years and has cooperated with gateway airports in Thailand, Hong Kong, Singapore...

NATS has met and worked with Vietnam Air Traffic Management Corporation (VATM), a member of CANSO (Civil Air Navigation Services Organization) to discuss the potential and opportunities for cooperation in the coming time.

In the short term, NATS will cooperate with VATM to open training courses, for example air traffic controllers. At the same time, NATS will learn more about the Vietnam market. If you have the opportunity and opportunity, NATS will set up a representative office in Vietnam.

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How to Terminate the Employment Contracts Due to Economic Reasons?

 

 Termination of a labor contract is an event that terminates the employment relationship between the employee and the employer. In particular, there are many cases of termination of labor contracts such as the labor contract expires, the work stated in the labor contract has been completed, both parties agree to terminate the labor contract, the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative,…

In case more than one employee face the risk of unemployment for economic reasons, the employer shall propose and implement a labor utilization plan in accordance with labour code. Specifically, the labor utilization plan must contain the following main contents: list and number of employees who continue to be employed, employees sent for re-training to continue using; list and number of retired employees; list and number of employees transferred to work part-time; employees must terminate labor contracts and measures and financial sources to ensure the implementation of the plan.

In case the employer cannot employ and have to dismiss employees, the employer shall pay job-loss allowances to the employees. Accordingly, the employer shall pay a job-loss allowance to an employee who loses his/her job and has worked regularly for the employer for 12 months or longer. The job-loss allowance is equal to 1 month’s wage for each working year, but must not be lower than 2 months’ wage.

The working period used for the calculation of job-loss allowance is the total time during which the employee actually works for the employer minus the time during which the employee benefits from unemployment insurance in accordance with the Law of Social Insurance and the working period for which the employer has paid a severance allowance to the employee. The wage used for the calculation of job-loss allowance is the average wage in accordance with the labor contract during 6 months preceding the time the employee loses his/her job.

The dismissal of more than one employee in accordance with this regulation may be implemented only after discussion with the representative organization of the grassroots-level employees’ collective and notification 30 days in advance to the provincial-level state management agency of labor.

It is important for the employer to consult with dispute lawyers specializing in labour matters for the avoidance of potential dispute with the employee, and cause negative social impact when deciding to terminate contract due to economic reasons.

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