Upcoming ASEAN Economic Community From The Perspective Of A Non ASEAN

Establishment of ASEAN Economic Community

The ASEAN Economic Community (AEC) originates from the ASEAN Vision 2020, which was adopted in 1997 on the 30th anniversary of the Association of Southeast Asian Nations, made up of Brunei Darussalam, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam (ASEAN). With a population of more than 600 million and a nominal GDP of about $2.31 trillion, ASEAN is a strong economic community in Asia and also a driver of global growth.

The AEC is the realisation of the end goal of economic integration as espoused in the Vision 2020, which is based on a convergence of interests of ASEAN member countries to deepen and broaden economic integration through existing and new initiatives with clear timelines. AEC will have to envisage the key characteristics: (i) a single market and production base, (ii) a highly competitive economic region, (iii) a region of equitable economic development, and (iv) a region fully integrated into the global economy. By end of 2015, the AEC will be already started to realize those goals of regional economic integration and to create a single market and production base for the region by 2020.

Investing in big motorcycle industry in Vietnam

Key notes: Generally speaking, there are more and more foreign motorbike manufacturers flock to Vietnam in the context that the driving license policy in this country has been loosened and the Vietnamese nationals now have more opportunities to possess large capacity motorbikes.

I.              Trading right

After the WTO accession in 2007, Vietnam opened the market for importing the big motorcycle (175cc+), officially entitled to import as from June 2007.

As of 1 January 2009, foreign invested companies engaging in distribution services will be permitted to engage in the commission agents', wholesale and retail business of tractors; motor vehicles; cars and motorcycles.

Thus, there is no limitation to the foreign investor on the market access. However, the establishment of outlets for retail services (beyond the first one) shall be allowed on the basis of an Economic Needs Test (ENT).

New foundations for real estate deals

New foundations for real estate deals - Vietnam Investment Review

The recent National Assembly session passed the Law on Enterprise, Law on Investment, Law on Residential Housing and Law on Real Estate Business. These new laws contain provisions which help to create a more transparent, consistent and conducive legal environment for domestic and foreign real estate investors alike.

These provisions should help revitalise the real estate market by paving the way for investment and mergers and acquisitions. David Lim, managing partner at Zicolaw Vietnam outlines the main provisions in the new laws.

The real estate sector has been an attractive investment field. However, it is also a challenging sector due to restrictions and complicated rules imposed on investors and real estate transactions. It is important to understand the new provisions in laws to take advantage of the investment opportunities provided. 

From now, 05 year visa will be granted for the foreign investors in Vietnam

With the enforcement of the Law on Entry, Exit and Residence of Foreigners in Vietnam No. 47/2014/QH13 dated 16 June 2013 by the National Assembly of Vietnam (“Law No. 47/2014”), as from 01 January 2015, the foreign nationals who have the business investment in Vietnam may be granted a 05 year visa.  Previously, the foreign nationals were only allowed to obtain one year visas and three years residency cards.

Under the Law No. 47/2014, the foreign investors in Vietnam who are eligible will be issued a visa named “ĐT” which has the duration of maximum 05 years. A temporary residence card will be accordingly considered for issuance to those who have got this type of visa. The Law No. 47/2014 also allows the foreigners that are parents, spouse, children under 18 years of age of the foreigners issued with a ĐT visa to receive the same treatment.

In order to be considered as the foreign investor in Vietnam, the foreign nationals must qualify for the definition of foreign investor under the Law on Investment in Vietnam and also obtain an investment certificate for their business investment in this country.