VIETNAM’S LEADING FOR-RENT
INDUSTRIAL DEVELOPER
Q2
2020
VIETNAM’S LEADING FOR-RENT
INDUSTRIAL DEVELOPER
BW BREAKING NEWS
On May 28, 2020, VIETINBANK and BW Industrial Development JSC held a ceremony to celebrate the signing of a strategic partnership with an aim to jointly exploit the advantages, experience and resources of their respective leading platforms. Strong credit relationships with VIETINBANK will enable BW to rapidly execute our project development and M&A activities across strategic industrial hubs.
Business is tough... You have to be prepared...You need to earn respect.
Investors can easily check the BW website for the latest business environment & business establishment consultation, recruitment and insurance tips. This information is relevant for both new market penetrators and existing investors.
BW INTERNAL NEWS
A LOT OF PEOPLE HAVE FANCY THINGS TO SAY ABOUT CUSTOMER SERVICE...
BUT IT’S JUST
A DAY IN,
DAY OUT,
ONGOING,
NEVER-ENDING,
PERSEVERING,
AND
COMPASSIONATE
ACTIVITY
Quarterly pest control for common areas at Bac Ninh, Bau Bang and My Phuoc 3
Semi-annual roof cleaning at Bac Ninh, Bau Bang and My Phuoc 3
Monthly landscaping at Bac Ninh, Bau Bang and My Phuoc 3
Periodic rainwater drainage pipe cleaning
EXPAT SHARING
Michael Chan
Head of Sales & Marketing – BW Industrial Development JSC
SHORT-TERM IMPACT OF COVID 19 – IMMEDIATE DISTURBANCE OF THE SUPPLY CHAIN
LONG-TERM IMPACT – DECENTRALIZATION OF THE GLOBAL SUPPLY CHAIN
INDUSTRY HIGHLIGHTS
(Follow link to read full articles)
VIETNAM BUSINESS ENVIRONMENT
The National Assembly has ratified the EU-Vietnam Free Trade Agreement, which will cut or eliminate 99 percent of tariffs on goods traded between the two sides. Both agreements will possibly take effect in July.
In its latest update released on June 3, the World Bank (WB) said Vietnam’s economy has gradually bounced back since social distancing measures were eased.
The US was Vietnam’s largest export market in the period with export turnover of $24.6 billion, an 8.2 per cent increase compared to last year.
MoIT has ordered the two northern border provinces of Lang Son and Quang Ninh to re-open some auxiliary border gates and crossings, per guidance from the Prime Minister on border trade activities.
The Government has been pushing more administrative procedures online, including the use of e-documents and e-reports, and the establishment of information and public service portals on local levels.
Vietnam will grant e-visa to citizens of 80 countries from July 1, 2020. Visitors with e-visas can enter Viet Nam at eight international airports or arrive via land at 16 international border gates and via sea at 13 ports across the country.
District authorities have been urged to complete site compensation, resettlement and handover of land to speed up the progress of major traffic projects this year.
The city plans to complete 29 traffic projects and start construction on 27 new traffic projects this year in an aim to reduce traffic congestion and develop connections between the city and neighboring provinces.
The realty market in eastern Hanoi is forecast to grow stronger than ever with important transport projects worth billions of dollars being built in the second half of the year. The east is a potential area connecting the capital city with the northern economic centres such as Hai Duong, Hai Phong and Quang Ninh.
MANUFACTURING
Car maker from Japan Mitsubishi Motors Corporation has intention to build its second automobile manufacturing plants in Vietnam in the south-central province of Binh Dinh due to having deep water port.
Apple is set to produce its first ever over-ear headphones in Vietnam – This is the first time it will manufacture a brand-new product outside China.
Also, earlier this month, Nikkei Asian Review reported that Apple will shift around 30% of its classic AirPods 2 production, about 3-4 million units – to Vietnam from China this quarter.
Japanese appliance-maker Panasonic Corp said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam. Factory near Bangkok will be shuttered in cost-cutting effort.
Tesa will produce adhesive tapes for the Asian market starting from 2023. It has been decided to build a 55 million Euro plant in Vietnam. The new building is located in the port city Haiphong in Northern Vietnam, approximately 70,000 square meters.
Japan has earmarked $2.2 billion of its record economic stimulus package to help its manufacturers shift production out of China as the coronavirus disrupts supply chains between the major trading partners.
The latest report showed that in the first four months of 2020, about 335 capital-adjusted projects recorded an added investment of more than $3.07 billion.
LEGAL UPDATES
We would like to inform you about legal updates from this quarter regarding tax, HR and labor issues.
TAX
The Decree is applicable to companies engaging in various business activities and those that have generated revenue from such activities in 2019 or 2020. The following would be applied:
- Extension of deadline to pay VAT and CIT.
- Extension of deadline to pay VAT and PIT for individuals and business households.
- Extension of deadline to pay annual land rental fee.
According to Official Dispatch No. 897/TCT-QLN regarding the tax deferral and late payment interest exemption granted to mitigate the impact of COVID-19, taxpayers falling into the situations specified in point a of clause 1 in Circular No. 156/2013/TT-BTC (Consolidated document No. 14/VBHN-BTC, dated May 15, 2017) are deemed eligible for the tax deferral.
HR & LABOR
Beginning March 22, 2020, the Vietnamese Government temporarily suspended the entry of all foreigners, overseas Vietnamese and their spouses and children who have been granted with a certificate of visa exemption. Moreover, the Vietnamese Government requested the Ministry of Labor, War Invalids and Social Affairs to temporarily suspend the issuance of new work permits to foreign employees who are from countries or territories affected by COVID-19. The renewal of expiring visas or work permits may continue for special cases.
BUSINESS ACTIVITY
This is a new policy from Official Letter 2698/BCT-DTÐL of April 16, 2020, to support businesses facing difficulties due to COVID-19. Total duration of the reduction is three months. Specifically, the retail price of electricity for the manufacturing & business sectors and the wholesale price of electricity for industrial parks is discounted 10% compared to the price specified in Decision 648/QD-BCT of March 20, 2019.
The suspension is applicable to enterprises involved in passenger transportation, tourism, accommodation, restaurants, and other special industries experiencing difficulties due to COVID-19. Eligible enterprises will benefit from a temporary suspension of contributions to the retirement and survivorship allowance fund until the end of June 2020.
According to Official Dispatch No. 245/TLD, production and business entities affected by COVID-19 will be able to extend the deadline of the payment of union dues for the first six months of 2020 through June 30. Enterprises affected by COVID-19 are defined as those that have social insurance-protected employees accounting for at least 50% of the total employees compulsorily participating in social insurance programs who temporarily leave work.
The State Bank of Vietnam has recently promulgated the Circular No. 01/2020/TT-NHNN, regulating the rescheduling of debt repayments, interest or fee exemptions, and reduction or non-reclassification of debt by credit institutions and foreign bank branches due to the impact of COVID-19.
SITE AVAILABILITY
(Latest update as of June 9, 2020; please check with your favorite sales representative before confirming with your client.)
READY-BUILT FACTORY
MY PHUOC 3 - BINH DUONG
| PHASE 1 + RBF C13 | PHASE 2 | PHASE 3 | PHASE 4,5,6 | |
|---|---|---|---|---|
| Construction completion | 06/19 | 07/19 | 12/19 | 05/20 |
| Available GFA | Fully occupied. | Fully occupied. | 5,842 sqm. | 74,817 sqm. |
BAU BANG - BINH DUONG
| PHASE 1,2 | PHASE 3,4,5,6,7 | |
|---|---|---|
| Construction completion | 06/19 | 04/20 |
| Available GFA | 1,620 sqm. | 124,187 sqm. |
VSIP HAI PHONG - HAI PHONG
| PHASE 1 | PHASE 2 | PHASE 3 | |
|---|---|---|---|
| Construction completion | 04/20 | 02/21 (tentative) |
N/A |
| Available GFA | 1,442 sqm. | 16,175 sqm. | 49,196 sqm. |
VSIP BAC NINH - BAC NINH
| PHASE 1 | |
|---|---|
| Construction completion | 07/19 |
| Available GFA | 1,443 sqm. |
VSIP HAI DUONG - HAI DUONG
| PHASE 1 | PHASE 2 | PHASE 3 | |
|---|---|---|---|
| Construction completion | 04/20 | 03/21 (tentative) |
03/21 (tentative) |
| Available GFA | 17,377 sqm. | 26,460 sqm. | 22,835 sqm. |
BUILT-TO-SUIT WAREHOUSE
TAN PHU TRUNG - HO CHI MINH CITY
| PLOT 1 | PLOT 2 | PLOT 3 | |
|---|---|---|---|
| Construction completion | 03/20 | 07/20 (tentative) |
01/21 (tentative) |
| Available GFA | Fully occupied. | Fully occupied. | 41,995 sqm. |
STANDARD COMMERCIAL TERM
| STANDARD FITOUT | |
|---|---|
| GFA (sqm.) | Minimum 500 sqm. We also offer built-to-suit for requirement 10,000+ sqm. |
| Lease Term (year) | Minimum 3 years – 10 years |
| Security Deposit | 06 months of gross rent |