Ladies and Gentlemen
In the opening session, we heard a speech that was very important
full of information, suggestion for the discussion content by deputy Prime Minister Vuong Dinh Hue
I suppose this speech breaks my script from the beginning
Because, what I meant to ask is exactly what the PTT talks about
These are the questions that I want to ask the panelists who are present here
However, we will certainly have more discussion to focus on a question that Deputy PM has stated
What is the "new era" and "new thrust" here?
And Mr. Deputy PM also raised the question to us
In this new era, what the Government and the Business community must do to promote a healthy market
This is a central issue that we would like the experts to discuss
We have also heard a presentation by Mr. Warrick Cleine, Chairman and CEO of KPMG Vietnam.
Regarding the reality of the M&A market and especially in Cleine's speech,
Then we will also discuss the barriers to the market
This session we are very honored and also very surprised by Mr. Vuong Dinh Hue accepting
to join the discussion and dialogue with us
Although he delivered a speech with lots of information
We are also invited here, Minister of Planning and Investment Nguyen Chi Dung
This morning, due to a meeting, the Minister came late but is ready to join us to discuss issues related to the questions that the organizers put forward.
We would also like to re-introduce again, joining the discussion here
Vice Chairman of the State Securities Commission, Mr. Tran Van Dung.
Mr. Le Song Lai, Deputy General Director of SCIC
Mr. Seck Yee Chung, Managing Partner of Baker & Mckenzie Law Firm
Dominic Scriven is the Chairman of Dragon Capitals, who is very familiar with us in finance forums.
First of all, I would like to ask for Deputy PM
In the presentation full of information about the source
And Deputy Prime Minister pointed out the very specific opportunities in the process of equitization and divestment of state-owned enterprises
restructuring the business unit, restructure finance companies, commercial banks, and even agro-forestry enterprises.
Looking at the source of goods, we see certainly we will have a rich source of goods.
But the question that I want to ask the Deputy Prime Minister is
"What does the Deputy Prime Minister think about the ability of the buyer?"
That is, for the buyer, we provide such a large source of goods, then how does the government sees the buyer?
Coming soon, the Government expects
of both domestic and foreign investors as buyers of the products that will be marketed?
Please
[Deputy PM Hue] Thank you for the question of Dr. Nguyen Anh Tuan Nguyen, Editor-in-Chief of the Vietnam Investment Review, moderator of the first session
We know that a market always depends on supply and demand
The government must also calculate, bring the source, supply the route
and have a proper plan for how to stabilize the macro economy and the stock market, it does not stack the goods
However, it depends a lot on the demand sources
And here, that is the participation of investors.
There are many who question that in the world economic conditions that are unpredictable as at present,
like the US-China trade war, and many partners in the world,
In addition to investors in the country, what would it be like for foreign investor?
We would also like to say that the Government's view is that
The Government sees great importance to creating all necessary institutions and conditions for domestic enterprises to develop.
For domestic enterprises, the target is about 1 million by 2020
And this number will increase in the coming time
At present, this number is growing very strong. We expect the Vietnamese Business Entrepreneur of this year will publish the white paper
and the local business development index
so the leaders of each regions pay more attention to the development of domestic enterprises.
The point of government: internal force decides, but external force is important.
Create all favorable conditions to attract investment both directly and indirectly.
This year the government will review 30 years of attracting foreign direct investment
In October, there will be a national conference by the prime minister presiding over the field.
We continue to promote further selectively attracting foreign investment .
Choose businesses with good technology, good governance, available value chains and environmentally friendly technologies
ready to connect with Vietnamese enterprises
At the same time, it is in line with Vietnam's restructuring orientation
Obviously it is impossible now to attract investment at any cost, instead we need to be more selective
But I assert, the developments in the past few years to this point
Vietnam remains an attractive investment destination for foreign investors
Therefore, the proportion of foreign investment registration as well as disbursement rate is also happening in a very exciting way
This is a very large force is very good.
For indirect investors,
From the beginning of the year to now, the stock market is still net,
There are Mr. Dzung here, some investors are restructuring,
are temporarily leaving the idle money in their account to be ready,
probably to wait for conferences like this to decide which investments to invest in,
There have been no drawbacks.
I think, with an investment environment and growth as Dr. Tuan said
International organizations as well as forecast, at least this year, the growth will be 6.7 - 6.8%
And this growth momentum continues
The government and the Prime Minister also see growth as a condition for macroeconomic stability
Therefore, on the basis of macro-consolidation, then maintaining the momentum of growth and deepening the reform of institutions,
conditions of business economics
creating an investment environment, attracting domestic and foreign investment,
We have no reason not to believe in the coming time that we will have
a new wave of business development in Vietnam including M&A in Vietnam
I would like to thank the Deputy Prime Minister
Dear Minister Nguyen Chi Dung,
Deputy PM mentioned the 30th National Conference on Foreign Investment,
So, please the Minister can you tell us: so far,
How is the preparation for this important conference being conducted?
And in the near future, the Ministry of Planning and Investment, as the governmental advisory body of the Party, the National Assembly in this field,
What is the new policy that the Ministry will submit to the Government to ensure selective investment, quality
[Minister Dzung] Thank you for your question.
This year Vietnam will officially celebrate the 30th anniversary of attracting foreign investment.
As the Deputy Prime Minister just said
The government has decided on October 4 to hold a very major conference in Hanoi, a national convention.
There are 2 goals.
Firstly, to review and evaluate the achievements and results of 30 years of investment attraction.
And also give some direction in the coming time, in attracting foreign investment
At the same time, there is another goal, which is also to hold a national-level promotion and convention
This is expected to be the largest conference in the history of FDI in 30 years in Vietnam
In 1991, in March, Vietnam held a national promotion conference in Ho Chi Minh City
At that time, General Secretary Nguyen Van Linh came and directed the conference.
This time, we think there will be leaders from the Party the State come to also have directions,
orientations in the future and bring their messages
I hope that after this review the Government of Vietnam will reposition,
address the current shortcomings of foreign investment, as well as giving directions for the coming time
And certainly there will be things like the deputy prime minister stated,
The plan is to continue to promote the foreign investment interest in a more selective and environmentally friendly way,
have more technology, less resource use,
have the ability to connect with domestic enterprises,
has the ability to spread in many branches and fields of the economy
At present, we are organizing seminars on the sidelines
At present, we have made about 5 small seminars, specializing in land, transfer pricing and labor
The conferences provide us with an in-depth analysis and analysis on a one-to-one basis to help the overall review
In general, we will have an exhibition of achievements alongside these conferences
as well as connections between domestic and foreign businesses at these conferences
I would like to add a point beyond the problems I have presented
there is a point that Chairman and CEO of KPMG also said
In 2018 the Government will also urge, direct drastic review
completing the legal process to soon sign the FTA agreement between Vietnam and the EU.
We have now completed the review process
It is expected that during the convention at the end of this year, the Government will submit to the National Assembly
for the President to submit to the National Assembly for approval
of the CP TPP Agreement.
With a deep economic integration condition like this
And ASEAN leaders have also agreed to further strengthen intra-ASEAN economic exchanges.
With this investment environment and extensive international integration,
I believe that the wave of investment in business development,
Mergers and Acquisitions in Vietnam will also be continued at a larger scale.
Apart from the October 4th event as Minister Nguyen Chi Dung said, I would like to say a little bit more
From this 11 - 13/9,
The Government of Vietnam and the World Economic Forum (WEF) will host the WEF ASEAN 2019 Forum in My Dinh, Hanoi City
And right now there are 12 heads of state
and thousands of corporations, large corporations in the world registered to attend this forum
This is also a very good opportunity for us to promote the business investment environment
and encourage direct and indirect investment
On behalf of the Government and the Prime Minister, we cordially invite you to attend the WEF ASEAN 2018
at the National Convention Center, My Dinh from this 11th to 13th of September
Thank you very much.
We would like to thank the Deputy Prime Minister for providing more important information on Vietnam's integration process
We sincerely thank the Minister
Minister, I want to go back to the FDI topic
It is said that from 2016,
Newspapers, the media have received statistic that they are very interested in,
Especially the economic press, that is the form of M&A in total FDI
And in 2016 alone, M&A accounted for 16%.
2017, increased 18%
This year, in the first six months of this year, there were 4.8 billion out of a total of ove4r 20 billion registered FDI.
To say that these numbers show that foreign investors investing in Vietnam in the form of M&A in recent years tend to increase.
I would like to ask the Minister that
How does the minister perceive this 7th form?
I call the 7th form because in the 2004 Investment Law, the ministry has petitioned to the Government,
and finally, Congress has adopted an additional M&A form in the law
And in fact it has increased so.
So up coming, according to the minister, that this form continues to increase
and How will the Government, the Ministry of Planning and Investment
Create opportunities outside the elements of the Securities Law?
Then the competition regulation the Ministry of Finance has issued to MPI what to do to promote M & A investment? Rồi là những luật cạnh tranh Bộ Tài chính đã ban hành về phía Bộ KHĐT sẽ làm gì để thúc đẩy đầu tư theo hình thức M&A
[Bộ trưởng Dũng] M&A in nature Về M&A thì thực chất
The essence of M&A is the transfer of cash flow from low-cost to high-profit bản chất của M&A là chuyển dịch dòng tiền từ nơi có hiệu quả thấp sang đến nơi mà có khả năng sinh lợi cao
And whether the high profitability is or not is due to investors' evaluation and reflection Thế và cái khả năng sinh lợi cao có hay không thì do các nhà đầu tư nhìn nhận và đánh giá
Based on the growth of the macro economy, based on reforms, administrative procedures dựa trên sự tăng trưởng của nền kinh tế vĩ mô, dựa trên các cải cách, các thủ tục hành chính
as well as improving the investment climate, and the accompanying policies cũng như cải thiện môi trường đầu tư, rồi các chính sách đi kèm
(Warrick) Thank you very much. I think the 2 sort of things, 2 main issues, I think,
One is that the government has to keep the momentum to demonstrate that Vietnam is open for business
And the participation in the trade agreement CP TPP, the EU FTA, the SEA economic community and so on
These are very important signal to the investment community
That Vietnam is open for business and that they want to do or they should be doing deals here
When it comes to executions of deal, I think the government has made
enormous progresses in the 20 years I've been here on moving away from ask-and-grant mechanism of deal approval
I think that's probably the area will continue to be the focus of Minister Dzung & Deputy Prime Minister Hue
And in continuing to reduce the digression that the government officials have over deal approval
And there still a scene and there still a feeling
not withstanding the change to the regular chain of the environment
That deals can happen without the approval
Many deals don't need the approval from the public policies perspective: anything outside of banking and sensitive areas
So I think that is probably the biggest regular trend would be
Continuing to move away from the asking ground approach to deal approval
[Tuan] So the main issue is still Vâng như vậy là vấn đề chủ yếu
Still the story of the procedure for the deal approval post negotiation Vẫn là câu chuyện của thủ tục để chấp thuận những thương vụ mà sau khi đã đàm phán
This is a topic that I think the experts in the audience are likely to add comment regarding the administrative process Đây là một câu chuyện mà theo tôi nghĩ là thủ tục hành chính chốc nữa chắc là các vị sẽ bổ sung thêm
Especially representatives of the local authorities here, such as Ho Chi Minh City representative đặc biệt là có đại diện của chính quyền các địa phương ở đây, nhất là Thành phố Hồ Chí Minh
However, I would like to ask Mr Seck Yee Chung a question Nhưng mà tôi xin muốn được dành câu hỏi cho ông Seck Yee Chung
As a very experienced lawyer in Vietnam Với tư cách là một luật sư có rất nhiều kinh nghiệm tại Việt Nam
How to you evaluate the M&A legal environment in Vietnam Ông đánh giá như thế nào về cái môi trường pháp lý cho hoạt động M&A tại Việt Nam
And do you have any recommendations to the Government to improve the legal environment? Và ông có kiến nghị gì với Chính phủ để môi trường pháp lý tốt hơn nữa
and facilitate the M&A investments further tạo điều kiện thuận lợi hơn nữa cho hoạt động đầu tư theo hình thức M&A
[Yee Chung] Thank you for the question. First of all congratulation Vietnam M&A Forum's 10th anniversary
And also for inviting me to such a distinguish panel
I'll start by saying that as I reflect on 10 years ago, the deal that we did then
10 years ago, I did a deal, working for a foreign investor, looking into a logistic space involve a joint stock company
And there was also state ownership in it
Literally, yesterday, I was up in Hanoi and speaking to the Vietnam Competition Authority
As this particular investor, as this particular joint venture was looking at regional collaboration
Somewhere in between 10 years ago and today, there has certainly been a lot of changes
I think, however, that something remain the same, something are different
but the most important thing, and I'm sure we all know this
is that the only constant is change
And I will just quickly elaborate at some points
I think some of the things that remain the same is that
Vietnam is open for businesses. We can see that the leadership here is committed to growing the economy
giving opportunities for businesses, both foreign and domestic.
But they would also like to regulate it. They want to know who is investing, how much, what you are doing
So what remains the same is going to be things like approval, requirements
Certain sectors are open, certain sectors remain subjected to conditions
Primarily looking at, say, WTO commitments as well as domestic law
But something are definitely changed, something are different over the year
For example, the corporate firms that foreigners can set up
The corporate firms that foreigners can invest into
It used to be just foreigners invested into private and joint venture on one side
and they have joint stock company and else on the other side
But now all foreign investors can set up the same corporate firm
This has actually facilitate M&A
I think the Sabeco deal, of course, is rare, exciting and sort of encouraging for so many reasons
It shows the confidence the investors have in Vietnam
But I think it also puts to test who is considered a "foreign investor"
I know from the legal point of view, it has been discussed so many times
I recalled that when the previous iterations of investment laws being discussed
We did asked for more certainty: who is the foreign investor?
I think it is good to see that, today, that's a lot clearer
So in the case of ThaiBev's investment, and we see it in other deals as well,
if a company that comes in with foreign ownership, let's say, 49% or 50%
And the Vietnamese ownership of 50%
That's actually considered a domestic investor
I know I mentioned the WTO. I know a lot of you are familiar with it.
But let's understand as well that WTO is not a static document
So I just remembered that years ago before foreigner beverage was actually allowed
For foreign investment, we had a client that wanted to do a deal
But because of foreign ownership restriction, it couldn't go through
Today, that has changed under the WTO commitment
The restriction on foreign investment in the condition, I'm sorry,
on foreign investors and entities has actually been opened, has been lifted
And we did do a deal that involved a well know chain of Vietnamese restaurants
I think, I just said on the last big point which is change. And change will continue
I mean obviously State divestment, equitization will continue
I do believe that out of the Sabeco deal that a lot of things have been learnt
I do believe that the auction process is what the government favors now
I do recall when we were helping a particular client to look at the Sabeco deal
Questions abound it around: Do you need to get competition approval,
What's the pricing is going to be like? Do we need the State Securities Commission's (SSC) approval
All kind of uncertainties, questions surround that
I think we will going to see more certainties
Next point will be around the new business model. And I'm talking about digital economy
Obviously, Vietnam is very familiar with agriculture, production, real estate
but once we talk about digital economy
we are talking about e-commerce platforms, fintech, PTP lending, credit assessment, you know, travel websites
I mean look at these business lines, these are not stuff that you can find in the WTO commitment
You might find them in domestic regulations and some of them are still evolving
So I supposed my message, if I can, to the government and to the leadership is
to appreciate that technology changes, opportunity changes, business model changes
And there are doors that Vietnam has opened before
But now businesses are finding other doors to open, other opportunities to look at, both domestic and foreign
And I know from the number of present deals that I'm doing right now, there are questions around
"Oh, it is a fintech company, we are foreign investor, can we bring this beyond a majority foreign ownership?"
So these are some of the messages they would like to share. So thank you
I share your opinion Tôi xin chia sẻ ý kiến vừa rồi của ngài
One of the issues that the Government and the Prime Minister is very concerned about Một trong những vấn đề hiện nay Chính phủ và Thủ tướng cũng rất là quan tâm
is the institutional framework for economic activity in the digital economy. đó là cái khuôn khổ thể chế cho hoạt động kinh tế trong nền kinh tế số
At present, many foreign investors want to buy a small legal entity in Vietnam to make a digital bank
or to buy a legal entity to make non-cash payments
In Vietnam, the Prime Minister is also directing the development of the strategy
And we also request the Ministry of Planning for the development of a shared economy scheme
Then there are areas related to Fin-tech (Financial Technology), etc.
this is the field that is currently the framework is very inadequate
And the government is also advocating some of the areas that need to be able to pilot,
Afterward, there is the summary, in order to have a system
to create an ecosystem for digital economies, as well as economic strategies such as shared economy can be promoted
It is very true that in Revolution 4.0 it is so revolutionary but also destructive
So many old business methods, old business experience, old business models are no longer valuable
While new ones are not set up
At these forums we are very eager to hear recommendations like this
And I very much hope that the development partners in Vietnam will also support Vietnam
Because you have more experience than Vietnam than in finalizing, soon setting up a legal framework for the economy it operates
Many of the areas that we are still very confused
On the one hand to facilitate the kind of economic development
But on the other hand, it can also overcome the risks that new business models bring
And here, for example, in the economics of sharing, not just the service provider is the business
But also the consumers rồi người tiêu dùng
but the third one here is the technology companies that provides digital platform solutions
the 4th partner is the government
How can we manage digital ownership
as well as ensuring the revenue generated by the business through legal channels, how to pay the tax appropriately
This issue is very inadequate. I also share your opinion
Looking forward that in this forum
there is a voice. It can be said that this is new thrust.
This is new era, this is 4.0
Now the government is very interested and is also very confused and is looking forward to your further advice.
Well, thank you, Deputy Prime Minister talked directly about the issue that Seck Yee Chung just stated
I would also like to invite Minister Nguyen Chi Dung, Minister Dung has paid close attention to solutions to grasp the opportunities of the 4.0 revolution.
What is the opinion of the Minister after the sharing of Mr. Seck Yee Chung
Regarding the 4.0 revolution, it is not the subject of our seminar today. But it does involve a lot of you here
I also shared some additional information that Deputy Prime Minister has presented nearly full.
The government's view is that facing to this industrial revolution 4.0, we should actively and flexibly adapt
It means that we must change and adapt to that spirit, according to that motto
It also takes innovation, creativity, technology to motivate fast growth and sustainable development
as well as improve competitiveness capacity of the economy
That is the current approach of the government.
And now the government is delegating to the Ministry of Planning and Investment to do three things: the first is to build a national strategy of the 4.0 revolution
We think that this revolution is tremendously powerful, it is changing a lot of things. And we define this as an opportunity.
It is probably a golden opportunity for developing countries including Vietnam to accelerate and shorten the development gap with the previous countries.
This is an opportunity and to take full advantage of all these opportunities we need a strategy
Let us take advantage of all even the smallest chance in this revolution.
And we can also avoid the challenges of it
The second problem that we also find is that a constraint of the current economy, that this is also an opportunity of the ability to innovate.
And the ability to adapt to the current technology is also very limited.
Therefore, we have promoted a project that the Prime Minister has assigned, which is to set up a National Innovation Center
That is to form a Center to support research for innovation, for the creation of science and technology, which serves for development, for businesses and for development in the 4.0 industrial era
The third issue is a very big issue. About the 4.0 industrial revolution, apart from innovation, besides technology, it must be mentioned to human resources.
Human resources, we now see that the talent of the people around the world is very large
At present, there are 4.5 million Vietnamese who are overseas and hold a lot of technology and are doing research work in big universities, institutes and research centers.
When we had a task that reported to the Prime Minister, the Prime Minister agreed
It is a network of creative innovation that connects all the knowledge of the Vietnamese people around the world.
together with the knowledge and technology in the country to jointly research and serve the needs of enterprises, business needs of research institutions and especially for business, for enterprise needs
And I think that this is also a new opportunity for both domestic and foreign businesses. We have this center, we have this human resource and we have the new technology and adaptable to the 4.0 platform brought
This is a very good opportunity
We are currently implementing these three tasks in a positive way, particularly from August 18th to August 24th
we have announced the national technology innovation network, first we will do in Hanoi then on the 23rd it will be held in HCMC
Now that we have agreed with the city authority and then on the 22nd, I know that the city has held a very big conference
to exchange with 100 young talented Vietnamese people around the world, those will return in this phase
and another conference is to exchange with Ho Chi Minh City and the businesses, entrepreneurs, technology circles, the intellectual circles tomorrow night in Ho Chi Minh City.
We want businesses to respond and this is a great opportunity for us to have a vision and to share the orientation of cooperation in the industrial revolution.
And, thank the Minister for providing further information with comments related to the proposal
By the opinion of the Deputy Prime Minister and the Minister, it can be seen that the Vietnamese Government has been prepared to embrace change in the digital age.
And I would like to mention one of the ideas that Seck Yee Chung stated as a suggestion
Regarding the law, there is a proposal to loosen the conditions for foreign investors
You mentioned "49% & 51%" due to the section, the condition of investment for foreign investors in the country and business conditions
Could the minister tell us what our future undertaking is about?
changes to reduce the business conditions for
the foreign investors when they invest in our country.
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