Information about Vietnam's Market: - National Assembly Chairwoman Nguyen Thi Kim Ngan hosted separate receptions in Hanoi on April 25 for Australian Ambassadors to Viet Nam Craig Chittick. - Viet Nam cooperative to export mangoes to Australia - Australia, World Bank assist Vietnam’s inclusive growth - Vietnam-Australia cooperation focuses on economic partnership

1. VIET NAM TRADE OFFICE IN AUSTRALIA'S
NEWSLETTER APRIL 2017
National Assembly Chairwoman Nguyen Thi Kim Ngan
hosted separate receptions in Hanoi on April 25 for
Australian Ambassadors to Viet Nam Craig Chittick.
NA LEADER RECEIVES AUSTRALIAN AMBASSADORS
Meeting the Australian ambassador, Chairwoman Ngan expressed her wish that Australia would
continue helping Viet Nam improve capacity of its defence-security forces and consider expanding
assistance in bomb and mine clearance and overcoming war consequences.
Describing education as a promising field with nearly 30,000 Vietnamese students studying in
Australia, the chairwoman suggested Australia build training projects for Viet Nam in the fields of
agriculture (training, technical assistance and technology transfer) as well as joint scientific
research projects.
She hailed Australia’s increasing position in the world, and proposed the two nations continue
mutual support at regional and global forums such as the East Asia Summit (EAS), the Asia-Pacific
Economic Cooperation (APEC) forum and the United Nations (UN).
Chairwoman Ngan said the Vietnamese NA wants to share legislation experience with Australia
and added that the Viet Nam- Australia Friendship Parliamentarians’ Group has been established
with Head of the NA Office as its chairman.
Ambassador Chittick, for his part, expressed his delight at the close coordination between the
embassy and the Vietnamese legislature in gender equality promotion projects over the past years,
adding that gender equality is a major priority in the embassy’s agenda.
The ambassador said he was satisfied with the bilateral cooperation with highlights featured in
three partnership programmes on development and trade, security and innovation, adding that
the embassy has contributed to the innovation partnership programme to boost innovation in Viet
Nam.

2. On the East Sea issue, Chittick emphasised the importance of ensuring peace and stability as well
as navigation and aviation safety, security and freedom in the East Sea. He also stressed the need
to settle disputes through peaceful measures, respect diplomatic and legal processes, observe
international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS),
and not use force or threaten to use force.
The diplomat also affirmed that Australia is ready to work closely with Viet Nam to successfully
organise APEC Year 2017 in the Southeast Asian country.
AUSTRALIA’S TRADE WITH VIET NAM IN THE FIRST TWO MONTHS
OF 2017
Two-way goods trading between Australia and Viet Nam in the first two months of 2017 reached
AUD 1.41 billions in which, Viet Nam exported to Australia AUD 705.74 millions and imported
from Australia AUD 705.36 millions.
MR CRAIG CHITTICK, AUSTRALIAN AMBASSADOR TO VIET NAM I
THOUGHT I KNEW VIETNAM, BUT I WAS WRONG
When I arrived in Hanoi in July 2016 to start my job as Ambassador, after previous postings in
Malaysia and Indonesia, I was confident that I had a feel for a country I had been visiting as a tourist
and diplomat since 1998. But the old Viet Nam I knew had been replaced by a new, cutting-edge
Viet Nam: more dynamic, richer, and more aspirational than I remembered. And more polluted
and congested, and with more governance challenges too. It's a country that is more prospective
than ever, with lots of opportunities and quite a few challenges.
I've been heartened that this wasn't just my experience; our visitors – for business and pleasure –
have had similar experiences to me. Almost all have departed as advocates for the opportunities
available in modern Viet Nam.
We've chosen to showcase this new Viet Nam in the first edition of business envoy for 2017
because Viet Nam will be a focus of international attention this year as host of the Asia-Pacific
Economic Cooperation forum. It will be an opportunity for the world to see modern Viet Nam. Viet
Nam's APEC priorities align almost perfectly with what Australia is doing with Viet Nam: there is
a focus on 21st century education, making exporting and importing easier, empowering women in
the economy, and ensuring our food supply is safe and secure. These are not distant dreams for
Viet Nam; they are the contemporary experience for Australian businesses, universities and
government. I'm pleased to share their stories.
I was initially surprised to find out that the 22,000 Vietnamese are the fourth largest group of
foreign students in Australia, with another 7,500 studying in Viet Nam for an Australian

3. qualification. Australian education delivers around $1 billion in export revenue for Australia and
provides Viet Nam with an internationally-competitive group of future leaders. The 50,000 or so
Vietnamese alumni of an Australian education – who understand both Vietnamese culture and
language and our love of Vegemite – provide a ready bridge for Australian business. The
emergence of a group of young Vietnamese and Australian leaders in business, government and
society is evident through the entrepreneurial group who have established the Australia-Viet Nam
Young Leadership Dialogue and whose businesses win top awards in Australia. There are some
great examples in the stories that follow.
Those education links have also fostered an innovation partnership that, while still in its infancy,
is already delivering benefits for Australian business and research institutions. Our universities
are finding world-class collaborators, often amongst our alumni community; whether it is RMIT
University's Centre of Digital Excellence in Ho Chi Minh City that leverages that city's reputation
as a "coding factory" or the University of Technology, Sydney's new joint research center with Viet
Nam National University in Hanoi where they work on the Internet of Things. Businesses like the
Viet-Uc Seafood Company are collaborating with CSIRO and numerous other Australian
organizations to develop and test new commercial technologies in the aquaculture sector.
Australian culture and produce are recognized as world class in Viet Nam. These will be on display
at the Australian Government's Taste of Australia celebration in Viet Nam in April 2017. Australia's
own Luke Nguyen will again be our Face of Taste of Australia, and will be on hand (and at the
kitchen bench) to support Australian food, beverage and (for the first time) fashion companies
seeking to enter the Vietnamese market.
There are still problems in Viet Nam. Australian businesses tell me they often struggle to navigate
government red tape, deal with insufficient infrastructure and deflect requests by some for
corrupt payments. Reflecting these challenges, Viet Nam is currently ranked at 82 out of the 190
countries in the World Bank survey on ease of doing business (more difficult than Thailand and
Malaysia, better than Indonesia and the Philippines). Viet Nam itself understands these problems
and has embarked on an economic reform program to develop a business environment
competitive with the top four in ASEAN (Singapore, Malaysia, Thailand and Indonesia).
The Australian Government is investing through the aid program to support Viet Nam improve its
business environment, including through better competition policy and trade facilitation
arrangements, and construction of roads and bridges to address infrastructure challenges.
Australia is co-financing the Cao Lanh Bridge which will open later this year. This crucial transport
link will spur economic development by connecting Viet Nam's Mekong Delta with regional
markets.
International competition will be vital to improving Viet Nam's business environment, and Viet
Nam has built a network of international trade agreements to further open its market. Australia's
own free trade agreement with Viet Nam (through the ASEAN Australia- New Zealand Free Trade
Area) provides ongoing improvements in market opportunities, primarily in merchandise exports.
Our participation with Viet Nam in new trade agreements, including the Trans-Pacific Partnership
and the Regional Comprehensive Economic Partnership, could offer new opportunities in services
and investment as well.
While these challenges are real, there is also a hardheaded optimism amongst the Australian
business community in Viet Nam about the future for Viet Nam and their own businesses. We are

4. working with the Australian Chamber of Commerce in Viet Nam, under the leadership of Chau Ta,
to help Australian companies navigate their way through Viet Nam.
AusCham's new MOU with Viet Nam's Department of Foreign Affairs of the Provinces allows it new
reach to all of Viet Nam's 63 provinces. This work will be brought together at the Meet Australia
conference later this year where Australian business will have a chance to meet with Viet Nam's
provincial leadership on commercial opportunities throughout Viet Nam.
So, my best advice, given my own experience and that of almost all of our visitors, is come and see
modern Viet Nam for yourself.
VIET NAM COOPERATIVE TO EXPORT MANGOES TO AUSTRALIA
The Suoi Lon Mango Cooperative in the southern province of Dong Nai will export its first batch of
mangoes to Australia soon, said Director Nguyen The Bao.
According to an agreement reached between the cooperative and two Australian businesses, 18
tonnes of mangoes will be exported daily via air and marine routes.
The cooperative will ship two tonnes of mangoes via air each day, with the fruit sold at
supermarkets. Meanwhile, a container carrying about 16 tonnes of mangoes will be brought to
Australia via sea and then distributed to retailers.
The cooperative is also piloting the preservation of mangoes using new technologies to export
abroad via sea to reduce transport costs.
Suoi Lon Mango Cooperative was the first agricultural cooperative in Dong Nai to receive the
Vietnamese Good Agricultural Practice (VietGap) certificate for mangoes in 2010.
The cooperative has 114 members growing 314 hectares of mangoes, including more than 14.5
hectares meeting VietGap standards and 16 hectares meeting Global Good Agricultural Practice
standards.
It has been shipping mangoes to Ukraine and China for years.
AUSTRALIA, WORLD BANK ASSIST VIETNAM’S INCLUSIVE GROWTH
Australian Ambassador to Viet Nam Craig Chittick and World Bank Country Director for Viet Nam
Ousmane Dione signed a deal on April 11, to extend their partnership on supporting Viet Nam’s
sustainable and inclusive economic reform agenda.
Accordingly, Australia will provide 25 million Australian dollars to the World Bank to implement
this partnership over the next five years.

5. Assistance for Viet Nam during the period will focus on the areas of trade and competiveness;
transport; ethnic minorities; Mekong delta and gender with two crosscutting issues of gender and
innovation.
The partnership will help Viet Nam implement reform priorities identified in the Socio-Economic
Development Plan 2016-2020 (SEDP).
“One of the great achievements under the first phase of the partnership was to support the
Government of Viet Nam to develop the Viet Nam 2035 report – a bold and ambitious vision for
Viet Nam’s economy in the next 20 years,” said Craig Chittick.
The Australian diplomat added that in the second phase, Australia will work with the World Bank
to support Viet Nam to implement the vision for the sake of all citizens.
Ousmane Dione noted, “The first partnership created a strong synergy to support Viet Nam’s
development agenda. We have seen joint work in critical policy and reform areas enabling greater
impact and influence than by working individually. This stepped up engagement will be mutually
beneficial and help deliver stronger development results for Viet Nam”.
The partnership between Australia and the World Bank was established in 2012.
HCM CITY, AUSTRALIA SEEK STRONGER COOPERATION
Ho Chi Minh City wants to further cooperation with Australian localities across fields in which both
sides boast potential, including tourism, education and high-tech agriculture, said a local official.
Chairman of the municipal People’s Committee Nguyen Thanh Phong made the statement while
hosting a reception for Keith Pitt, Australian Assistant Minister for Trade, Tourism and
Investment, on April 5.
Phong expressed his delight at the sound comprehensive cooperation between Viet Nam and
Australia, saying that Keith Pitt’s visit to Viet Nam will give a push to cooperation activities
between the two countries and between Australian localities and Ho Chi Minh City in particular.
Speaking highly of education quality of Australia’s universities and institutes, he said HCM City’s
students and officials, who had been trained in Australia, have contributed to high-quality human
resources in the city.
Phong also affirmed that the municipal authorities will create favourable conditions for foreign
businesses, including those from Australia, to make long-term investments in the city.
For his part, Keith Pitt recommended that increasing the frequency of direct flights between two
countries, including flights from/to HCM City, will facilitate trade, investment tourism links
between Australia and Viet Nam’s southern hub.
Impressed by HCM City’s strong development, he promised to do his utmost to further relations in
trade, investment and tourism between Australian localities and the city.

6. Ho Chi Minh City has established friendship and cooperation relations with Australia’s Queensland
State and Northern Territory.
Among 84 countries and territories that have invested in HCM City by March 2017, Australia was
the city’s 19th largest source of investment with 167 projects valued at 184 million USD. Two-way
trade in 2016 was estimated at 900 million USD.
VIETNAM-AUSTRALIA COOPERATION FOCUSES ON ECONOMIC
PARTNERSHIP
The Vietnamese and Australia governments on March 31 held their High-Level Consultations on
Development Co-operation to discuss results of their long-term development co-operation and the
importance of its transformation into an economic partnership.
The biennial High Level Consultations were led by Philip Green, First Assistant Secretary, South
East Asia Mainland and Regional Division, Department of Foreign Affairs and Trade (Australia),
and Vietnamese Deputy Minister of Planning and Investment Nguyen The Phuong.
Accordingly, the two countries gained key achievements for the 2015-17 development co-
operation, including due completion of the Cao Lanh Bridge late this year, encouraging progress
in developing three new initiatives - Aus4Reform, Aus4Transport and Aus4Water - to develop a
strong and competitive private sector in Viet Nam.
They also noted the effective commencement of the new Aus4Skills initiative in 2016, which will
continue to deliver the prestigious Australia Awards Scholarships as well as a new range of flexible
human resource development support packages and support for women’s economic
empowerment, including preparation for the new Aus4Equality and Investing in Women
initiatives.
“Viet Nam has been an important partner of Australia in the region for a long time, and our
commitment to development cooperation with Viet Nam is ongoing,” Green said.
Given Viet Nam’s tremendous achievements in socio-economic development, it is now time to
transform the relationship into an economic partnership, based on mutual benefit and shared
challenges,” he added.
The economic partnership is expected to be built on the principles of commitment to pursuing
shared economic interests as outlined in the Plan of Action 2016-2019, encouraging a dynamic
private sector, fostering greater business and market access opportunities, empowering women
in the economy and promoting environmentally sustainable growth.
VIETNAMESE AIRLINES ROLL OUT NEW INTERNATIONAL FLIGHTS
Vietnamese airlines have drawn up plans to expand their international presence to serve the
increasing demands of both domestic and foreign passengers.

7. Low-cost carrier Vietjet Air will open a new flight connecting Hanoi and Singapore on April 27, its
second air route to the country after flight between HCM City and Singapore was launched in 2014.
Meanwhile, flights from Da Nang to the Republic of Korea (RoK)’s Seoul are set to begin from May
31.
The carrier also launched services between Hanoi-Siem Reap (Cambodia) and Ho Chi Minh City-
Taichung (Taiwan) at the outset of this year.
Another budget airline, Jetstar Pacific, will offer services on the Dong Hoi-Chiang Mai (Thailand)
route in June as part of its plan to expand in Asia. On March 27, the airline began Da Nang-Hong
Kong (China) flights.
Meanwhile, promotional air fares will be provided by Australian Jetstar Group for passengers
flying between Australia’s Sydney and Melbourne cities and Ho Chi Minh City from May.
The national flag carrier Viet Nam Airlines commenced direct flights from Hanoi to Sydney on
March 28. This is the airline’s third air route to Australia, following flights connecting Ho Chi Minh
City and Sydney and Melbourne.
Opportunities will arise for trade between Viet Nam and foreign cities as other international
airlines have fleshed out plans to fly to Viet Nam. Da Nang city and the RoK’s Daegu city have been
linked by T’way Air, a low-cost airline in the RoK, from April 2. Also, Emirates Airline will operate
daily non-stop flight from Hanoi to Dubai from July 2.
FIRST VIETNAMESE YOUNG ENTREPRENEUR CLUB IN AUSTRALIA
DEBUTS
The Vietnamese Business Association of Australia (VBAA) recently held a ceremony to launch a
young entrepreneur and start-up club in Melbourne city.
This is the first club established by the VBAA to connect Vietnamese youths who are interested in
business in Australia.
The 25-member club will act as a bridge linking young entrepreneurs in Viet Nam and Australia
so they can support each other in their business activities.
VBAA President Tran Ba Phuc stressed the importance of the club in supporting young
entrepreneurs and awakening the start-up spirit of graduates.
Young entrepreneurs are a key force in achieving economic development goals between Australia
and Viet Nam, he said, adding that VBAA will work to help them.
SETTING UP A FOREIGN-INVESTED ENTERPRISE IN VIET NAM
By continually issuing favorable policies and incentives aimed at attracting inflows, and deciding
to decrease the country’s corporate income tax levels to 20 percent from January 1, 2016, it is clear
that Viet Nam’s government is intent on taking a proactive approach to foreign direct investment.

8. Enterprises and individuals interested in taking advantage of the country’s friendly investment
environment therefore need to be aware of the various market entry structures available to
foreign investors.
There are two main types of vehicles for foreign investment in Viet Nam: 100 percent foreign-
owned enterprises (FOEs) and joint venture enterprises (JVEs).
100 percent FOEs can be established by one or more foreign investors, under the form of either a
limited liability company (LLC) or a joint-stock company (JSC). JVEs can be established as an LLC,
a JSC, or a partnership, and the profits and risks in a JVE are distributed among the parties in
proportion to their charter capital contributions. Other options for establishing a commercial
presence in Viet Nam include representative offices and branch offices, but these are not legal
entities.
In this article, we discuss the establishment requirements, common purposes, as well as the pros
and cons for the following foreign investment vehicles:
 Limited liability companies
 Joint-stock companies
 Partnership companies
 Representative offices
 Branch offices
 Business cooperation contracts
 Specific authorized projects
Limited Liability Companies
100 percent FOEs and JVEs can be established as limited liability companies. In an LLC, members
are only liable for the debts of the company to the extent of the capital contribution they have
poured into the company.
There is usually no minimum capital requirement for foreign investors that intend to establish an
LLC in Viet Nam, although authorities will expect the investor to commit a reasonable amount of
charter capital according to the scale and business scope of the project.
An LLC can consist of a single member or multiple members, but the total number of members
cannot exceed 50. Investors can be corporations or individuals.
Note: An LLC cannot issue shares.
Joint-stock Companies
FOEs and JVEs can also be established as joint-stock companies. A JSC can issue securities and
bonds, so investors will often choose this form if they plan to go public in the future.
The JSC’s charter capital is composed of shares belonging to founding shareholders in proportion
to the capital they have subscribed. There is no minimum requirement for the charter capital of
the foreign investors.

9. A JSC is required to have at least three shareholders. There is no limitation on the maximum
number of shareholders, nor on their nature – they can be individuals or institutions, Vietnamese
or foreigners.
Partnership Companies
A partnership company is a legal entity established by at least two individuals who are the
members of the partnership and co-owners of the enterprise. They are the general partners and
are liable for all obligations of the partnership without limit. Unlimited liability partners must be
individuals who shall be liable for the obligations of the company to the extent of all their assets.
In addition, a partnership company can consist of limited liability members (individuals or
organizations) who only contribute part of the capital and have limited liability and rights in the
operation of the company.
Note: Partnerships cannot issue any type of securities.
Representative Offices
In contrast to JVs and 100 percent FOEs, a representative office (RO) is forbidden from conducting
any revenue-generating activities. Rather, ROs are permitted to conduct market research, serve as
a liaison with an overseas parent company and/or serve other supporting roles such as ensuring
quality control, acting as a product showroom and helping to facilitate the execution of the
contracts of the parent company. Unlike in certain other Asian countries, ROs in Viet Nam are
permitted to hire staff directly, both Vietnamese and expatriate.
Branch Offices
A branch office is the subsidiary of a parent company and does not constitute a separate legal
entity according to Vietnamese law.
Unlike an RO, a branch office is entitled to do business in Viet Nam, although the law prohibits it
from carrying out commercial activities other than those stated in the parent company’s business
license. If a branch conducts business in a conditional sector, it is only allowed to operate upon
meeting the prescribed conditions.
To set up a branch, a parent company must have had conducted business in its home country for
at least five years.
Alternative Structures
Business Cooperation Contracts
A business cooperation contract is signed between multiple parties, typically between a foreign
investor and a local company or the government with the objective of jointly conducting business
operations in Viet Nam on the basis of mutual allocation of responsibilities and sharing of profits
or losses without creating or forming a legal entity in Viet Nam. This form of business is a means
of private financing without transferring management control to a foreign partner.
Specific Authorized Projects

10. Build-operate-transfer contracts, build-transfer-operate contracts and build-transfer contracts
are specific projects carried out by foreign investors and an authorized governmental agency.
These additional investment vehicles have been introduced in Viet Nam to entice international
capital into the infrastructure sector. Business scopes can range from traffic, electricity,
production and business or a number of restricted sectors as stipulated by the Prime Minister.
The difference between these contract types is at what point the title of the project is transferred
to the government, namely after the investor commences the project, before the investor
commences operations on a project, or immediately following completion of a project.
[COMPANY
NAME]
[Address, City, ST
ZIP Code]
[Telephone] | [Email
Address] | [Web
Address]