Australia Initiated the Anti-dumping Investigation Against Rod in Coil Originating from Vietnam

The Australian Anti-Dumping Commission has opened an anti-dumping investigation on wire rod in coil imports from Vietnam and other exporters

On June 7^th, 2017, the Anti-Dumping Commission of Australia (ADC) initiated the anti-dumping investigation against rod in coil originating from Indonesia, Korea and Vietnam.

At present, rod in coil is not applied tax when being exported from Vietnam into Australia.

Investigated product includes HS code: 7213.91.00.44, 7227.90.90.02 and 7227.90.90.42

The companythat filed claim for investigation: OneSteels Company.

Period of investigation: 1/4/2016 to 31/3/2017.

Period of damage investigation:1/1/2013 up to present.

Dumping margin of product as allegation of plaintiff is 30,6% for Vietnam, 30,6% for Indonesia and 43,3 % for Korea

However, as preliminary calculation of ADC, expected dumping margin should be: 20,9% for Vietnam, 29,8% for Indonesia and 20,9 % for Korea

The filing party alleges that Vietnam belongs to particular market situation because of the level tax of two primary input material types, accordingly, the normal price shall be calculated by using the selling price in Vietnam but using the cost of a similar producer. The ADC may apply temporary anti-dumping measures but not earlier than 60 days since the date of initiation.

As expected, ADC shall issue Essential Facts on Sep 25^th, 2017 and concerned parties shall have 20 days to comment.

The concerned parties could send the comment through their anti-dumping lawyers or law firm in Vietnam and Australia whom is familiar with the process and procedures in Australia.

In the past, Australia implemented anti-dumping investigation against this product originating from Indonesia, Taiwan and Turkey. Accordingly, Indonesia and Turkey were applied tax in 2015 but after the on review in 2016, tax has been lifted for product from Indonesia (due to causing no damage for Australian manufacturing industry).

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Differences Between Limited Liability Company and Joint Stock Company

How to distinguish a Limited Liability Company and a Joint Stock Company?

Vietnam Law allows the establishment of a company in Vietnam in various forms. It is an important step in investment process.

Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.

Currently, Limited Liability Company (“LTD”) and Joint Stock Company (“JSC”) are two popular enterprise forms operating inVietnam.

What is the difference between these two forms of companies?

I. Organizational Structure

Number of members/shareholders:

LTD

·         Single member LTD: Having only one member (member can be an organization or an individual);

·         Multi members LTD: Having at least 2 members and not exceed 50 members (member can be an organization or an individual).

JSC

Joint Stock Company has at least 3 shareholders and not limit the maximum number.

Management structure

LTD

·         Single member LTD

Single member LTD owner by an organization shall be organized under two models: Company president, Director/General director and Supervisor; (OR) Members Council, Director/General director and Supervisor.

Single member LTD owner by an individual shall be organized as follows:  Company president, Director/General director.

·         Multi members LTD

Multi members shall be organized by: LTD Council members, Chairman of the Members Council and Director/General director;

Multi members LTD having 11 members or more shall establish the Board of Supervisors.

JSC

JSC can be organized under two models: General Meeting of Shareholders, Board of Directors, Board of Supervisors and Director/General director; (OR) General Meeting of Shareholders, Board of Directors (Board of Internal Supervisors under Board of Directors) and Director/General director.

II. Capital Contribution

Raising capital

LTD

·         Single member LTD: Owner increases charter capital

·         Multi members LTD: Members increase their charter capital, or increasing the number of capital contributors

JSC

Different from LTD, JSC can raise its capital by various methods as follows: Selling shares to existing shareholders; Selling shares individually to non-shareholders; Issuing shres on the stock market.

Transfer of contributed capital

LTD

·         Single member LTD: Owner transfers a part of contributed capital to other persons and this could lead to changes of the type of business or other procedures if all capital is transferred (for instance in a M&A deal).

·         Multi members LTD: Offer the stakes to other members in proportion to their stakes in the company under the same conditions;  The stakes could only be transferred to other persons if the members do not buy or do not buy completely within 30 days from the offering date.

JSC

The shareholders of JSC are free for transfer their contributed capital after 03 years from the establishment.

Having said that, LTD is a type of enterprise that the capital contribution is not the only link between the members of the company but they are also linked together by relationship. They may be acquaintances and trust each other to jointly contribute capital to establish an enterprise. Therefore, the management of the LTD is as complicated as JSC. With the larger the number of shareholders, the level of capital mobilization, voting power to decide on issues of the company based on the ratio of capital contribution of each shareholder, the management and operation of the JSC is more complex.

The ability to raise capital of a JSC is higher than a LTD. Because, JSC can issue shares to the public in the form of securities. When the stocks are listed on stock exchange, the information of company’s business operations must be public and more transparent.

The procedure to set up a company in form of an LTD or a JSC has not much differences.

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What are the advantages of the Patent Cooperation Treaty (PCT)?

The advantages of the Patent Cooperation Treaty

The PCT is an international treaty with more than 145 Contracting States. The PCT makes it possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international” patent application instead of filing several separate national or regional patent applications. The granting of patents remains under the control of the national or regional patent Offices in what is called the “national phase”.

The PCT System has many advantages for you as an applicant, for the patent Offices and for the general public:

You have up to 18 months more than if you had not used the PCT to reflect on the desirability of seeking protection in foreign countries, to appoint local patent agents in each foreign country, to prepare the necessary translations and to pay the national fees;

If your international application is in the form prescribed by the PCT, it cannot be rejected on formal grounds by any PCT Contracting State patent Office during the national phase of the processing of the application;

The international search report and written opinion contain important information about the potential patentability of your invention, providing a strong basis for you to make business decisions about how to proceed;

You have the possibility during the optional international preliminary examination to amend the international application, enter into dialogue with the examiner to fully argue your case and put the application in order before processing by the various national patent Offices;

The search and examination work of patent Offices in the national phase can be considerably reduced thanks to the international search report, the written opinion and, where applicable, the international preliminary report on patentability that accompany the international application;

You may be able to fast-track examination procedures in the national phase in Contracting States that have PCT-Patent Prosecution Highway (PCT-PPH) agreements or similar arrangements;

Since each international application is published together with an international search report, third parties are in a better position to evaluate the potential patentability of the claimed invention;

For you as an applicant, international publication online puts the world on notice of your invention. You may also highlight your interest in concluding licensing agreements on PATENTSCOPE, which can be an effective means of advertising and looking for potential licensees;

You also achieve other savings in document preparation, communication and translations because the work done during the international processing is generally not repeated before each Office (for example, you submit only one copy of the priority document instead of having to submit several copies); and

If your invention appears to be not patentable at the end of the international phase, you may abandon the PCT application and you will have saved the costs you would otherwise have incurred by directly seeking protection in foreign countries, appointing local patent agents in each foreign country, preparing the necessary translations and paying the national fees.

Ultimately, the PCT:

Brings the world within reach;

Streamlines the process of fulfilling diverse formality requirements;

Postpones the major costs associated with seeking multinational patent protection;

Provides a strong basis for patenting decisions; and

Is used by the world’s major corporations, research institutions and universities when they seek multinational patent protection.

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Overview of the Patent Cooperation Treaty (PCT) System and The role of WIPO in the PCT

What is the Patent Cooperation Treaty (PCT)?

The PCT is an international treaty with more than 145 Contracting States. The PCT makes it possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international” patent application instead of filing several separate national or regional patent applications. The granting of patents remains under the control of the national or regional patent Offices in what is called the “national phase”.

The PCT procedure includes:

Filing: you file an international application with a national or regional patent Office or WIPO, complying with the PCT formality requirements, in one language, and you pay one set of fees.

International Search: an “International Searching Authority” (ISA) (one of the world’s major patent Offices) identifies the published patent documents and technical literature (“prior art”) which may have an influence on whether your invention is patentable, and establishes a written opinion on your invention’s potential patentability.

International Publication: as soon as possible after the expiration of 18 months from the earliest filing date, the content of your international application is disclosed to the world.

Supplementary International Search (optional): a second ISA identifies, at your request, published documents which may not have been found by the first ISA which carried out the main search because of the diversity of prior art in different languages and different technical fields.

International Preliminary Examination (optional): one of the ISAs at your request, carries out an additional patentability analysis, usually on an amended version of your application.

National Phase: after the end of the PCT procedure, usually at 30 months from the earliest filing date of your initial application, from which you claim priority, you start to pursue the grant of your patents directly before the national (or regional) patent Offices of the countries in which you want to obtain them.

How do I protect my invention in several countries?

Patents are territorially limited. In order to protect your invention in multiple countries you have a few options:

–  Direct or Paris route: you can directly file separate patent applications at the same time in all of the countries in which you would like to protect your invention (for some countries, regional patents may be available) or, having filed in a Paris Convention country (one of the Member States of the Paris Convention for the Protection of Industrial Property), then file separate patent applications in other Paris Convention countries within 12 months from the filing date of that first patent application, giving you the benefit in all those countries of claiming the filing date of the first application;

–  PCT route: you can file an application under the PCT, directly or within the 12-month period provided for by the Paris Convention from the filing date of a first application, which is valid in all Contracting States of the PCT and, therefore, simpler, easier and more cost-effective than both, direct or Paris route filings.

Who uses the PCT?

The PCT is used by the world’s major corporations, research institutions, and universities when they seek international patent protection. It is also used by small and medium sized enterprises (SMEs) and individual inventors. The PCT Newsletter contains a yearly list of the largest PCT filers.

What is the role of WIPO in the PCT?

WIPO administers the PCT. It also organizes the PCT Assembly, the PCT Working Group and the Meeting of International Authorities. Further, for each PCT application filed, WIPO is responsible for:

– Receiving and storing all application documents;

– Performing a formality examination;

– Publishing the international application on WIPO’s online database PATENTSCOPE;

– Publishing data about the PCT application as prescribed in the Treaty and Regulations;

– Translating various portions of the PCT application and certain associated documents into English and/or French, where necessary;

– Communicating documents to Offices and third parties; and

– Providing legal advice on request to Offices and users.

WIPO also:

– Provides overall coordination of the PCT System;

– Provides assistance to existing, new and potential Contracting States and their Offices;

– Provides advice on implementing the PCT in the national legislation and on setting up internal procedures in the Contracting States’ patent Offices;

– Publishes the PCT Applicant’s Guide and the PCT Newsletter;

– Creates and disseminates PCT information via the PCT website, webinars, and through telephone and e-mail assistance; and

– Organizes and gives PCT seminars and training courses

Source: ANTLawyers.vn

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Great Opportunity in Vietnam – Japan Aviation Cooperation

Not only contributing to the trade connection between the two countries, the aviation industry also opens up opportunities for investment cooperation for investors in Vietnam and Japan.

All Nippon Airways (ANA) has appointed Mr Koji Shibata, Senior Vice President, Asia – Pacific Strategic Director to be a member of the Board of Directors at Vietnam Airlines Corporation. (Vietnam Airlines). It showed the respect and high appreciation of the cooperation opportunities of the leading Japanese aviation corporation. Mr Koji Shibata also represented the capital and exercised the rights and obligations of ANA with 107,668,938 shares, equivalent to 8,771% charter capital of Vietnam Airlines.

Ealier, on July 1st 2016, ANA has transferred to Vietnam Airlines the amount of 109 million USD to complete the company’s largest offshore investment transaction, and officially became a strategic shareholder of Vietnam Airlines.

According to Mr Pham Ngoc Minh, Chairman of Vietnam Airlines, ANA is truly a strategic partner, capable of cooperating, supporting and accompanying Vietnam Airlines in the process of developing and expanding the market, upgrading quality, service and corporate governance.

Currently, Vietnam Airlines flight routes are connecting to 20 domestic destinations, 29 international destinations with high frequencies and concentrating to connect through gateway airports in Ho Chi Minh City and Hanoi, participating in exploiting large customer flows in the region, directly competing with major transit centers such as Hongkong, Bangkok, Singapore, Kuala Lumpur and the Greater Mekong Subregion. In addition, Vietnam Airlines is operating 66 flights a week to Japan, while ANA has not cooperated with any airline for the same flight route.

As known, in addition to passenger transport, another aviation sector which is attracting the attention of Japanese investors is the air traffic management.

According to the Civil Aviation Authority of Vietnam, the Japanese party is proposing the establishment and operation of a special purpose company (SPC) to collect, analyze and provide information for air traffic management for relating companies. The SPC will be a joint venture with 51% Vietnamese capital and 49% Japanese capital. This model is being considered by the Vietnamese authorities, considering for implementation.

In addition, the investment in the Long Thanh International Airport project (Phase I), worth 3.53 billion USD project is still open to international investors, including Japanese companies, those who pursue this project from the first days.

According to the Civil Aviation Authority of Vietnam, based on the current agreements, the two countries’ airlines are allowed to operate without restrictions between destinations in Vietnam and Japan (except Haneda Airport in Tokyo). Currently, three Japanese aviation corporations that are ANA, Japan Airlines and Vanilla Air are operating five routes from Tokyo (Narita and Haneda) to two destinations in Vietnam (Hanoi and Ho Chi Minh City), with a total frequency of 42 flights/way/week.

Meanwhile, Vietnam Airlines is the only Vietnamese airline that operate the Vietnam – Japan flights, but with great frequency. As of the end of January 2017, Vietnam Airlines is operating 10 flights from three destinations in Vietnam: Ho Chi Minh City, Hanoi and Da Nang to 4 destinations in Japan: Tokyo (Haneda/Narita), Nagoya, Fukuoka and Osaka, with a total frequency of up to 66 flights/way/week. Furthermore, Vietjet Air and Jetstar Pacific have been licensed by the Civil Aviation Authority of Vietnam to operate flights from Hanoi/Da Nang to Osaka in 2017.

To sum up, in 2016, the total air transport between the two countries reached nearly 2 million passengers, increased by 18.6% over the same period in 2015, with an coefficient of average seat use of 80%, of which Vietnam Airlines has transported 1.28 million passengers, accounting for 66% market share, with coefficient of average seat use of over 82.2%.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Surpassing Korea, China’s Capital Flowing Strongly into Vietnam

Only in the first two months of 2017, China investment capital is pouring strongly into Vietnam market through indirect investment for acquiring shares or direct investment for setting up business in Vietnam.

The Foreign Investment Department (Ministry of Planning and Investment) has announced the situation of attracting foreign investment.

Accordingly, in the first 2 months of 2017, there were 313 new projects were granted investment certificates with a total registered capital of 2,028 billion USD, increased by 6.5% over the same period; 137 projects register to increase capital with 759 million USD, decreased by 15.5% over the same period.

In addition, foreign investors have spent 619 million USD to buy share or contribute capital to Vietnam enterprises, 4 times higher than the same period in 2016. Generally, in the first 2 months of 2017, the total newly, additional capital and contribute to purchase share reach 3.4 billion USD, increase by 21.5% over the same period in 2016.

In particular, foreign investors have invested in 18 sectors, in which the processing industry and manufacturing are attracting the attention of foreign investors with total capital of 2.5 billion USD, accounting for 73.4% of total registered investment capital in two months.

The real estate business sector ranked second with a total investment of 345.5 million USD, accounting for 10.1% of total investment capital.

Standing at the third position are the wholesale and retail sectors with total registered investment capital of 222.6 million USD, accounting for 6.5% of total registered capital.

In the first 2 months of 2017, there are 61 countries and territories having investment projects in Vietnam.

Singapore ranked first with total investment of 881.6 million USD, China ranked second with total investment of 721.7 million USD, Korea ranked third with total registered investment capital of 637.1 million USD.

If as every year, Korea ranked first in terms of investment capital into Vietnam, this year the ranking has changed as China took place.

The ranking of top 5 largest investors into Vietnam hardly have the participation of China investors. But this year, this country has increased investment into Vietnam through two forms that are pouring fund to implement the project or purchase share of Vietnam enterprises. China investors usually focus on textile and plastic projects…

In 2 months, China investors have registered to implement 123 projects in Vietnam and 174 turns of purchasing share, accounting for 21.1% of total investment in Vietnam

Some major projects of China investors are Billion Vietnam polyester factory project, with total investment of 220 million USD in Tay Ninh. Besides there are Lan Son industrial zone infrastructure investment project and Khai Hong Viet plastics factory, with total investment capital 150 million USD, invested by Wenzhou Hendy Mechanism and Plastics Co., Ltd in Bac Giang.

In the first two months of 2017, foreign investors have invested in 47 provinces, in which Binh Duong attracted the most FDI with total registered capital of 791 million USD. Hanoi ranks 2nd with total registered capital of 519 million USD. Ho Chi Minh City ranks 3rd with total registered capital of 464.2 million USD accounted for 13.6% of total investment capital.

Also according to the Foreign Investment Department, as of February 20th 2017, there were 22,904 projects that are still valid with total registered capital of 297 billion USD.

The accumulated capital of foreign investment projects is estimated to reach 156.35 billion USD, with total valid registered capital of 52.6%.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Benefits of Setting Up Business in Danang

Da Nang is considered an ideal destination for investment. The result shall be incredible where we evaluate on the following aspects:

Da Nang – one of the strategic economic centers of Vietnam’s central region

The Vietnam prime minister has established central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Da Nang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Da Nang – eastern gateway of east – west economic corridor (EWEC)

EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.

Currently, the road system in Laos, Thailand and the road line from Da Nang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of  2006 to facilitate the circulation of goods and passengers by road line from Da Nang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development

Da Nang – entrance of the cultural heritage and natural wonders of the world

Da Nang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Da Nang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Da Nang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).

With the advantage of geographical location and potential economic development in tourism, Da Nang is an ideal destination for tourists as well as investors.

Infrastructure is step by step improved

Da Nang is an important traffic hub of the central  – highlands and country with system of international airports, deep sea ports, roads, north-south railways  developed conveniently.

Da Nang port is the third largest commercial ports in Vietnam after Saigon port and the port of Hai Phong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Da Nang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Da Nang is the international shipping route enabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.

Da Nang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Da Nang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Da Nang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargo.

The system of roads in and out of the city are constantly being expanded and newly constructed

Telecommunication systems: Da Nang is one of three major telecomunication centers of the country, international transmission speed with good quality of  Southeast Asia. Da Nang post provides various and modern telecommunication services and be capable meeting the needs of customers.

The other services supporting investment (financial, banking, insurance …): most banks and finance companies of Vietnam have large branches in Da Nang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.

Trained and abundant human resources

Da Nang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Da Nang are lower than some other cities in the country.

Da Nang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Danang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …

Software technology center in Da Nang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center  has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard. Many IT company has chosen Da Nang to set up company to hold their talents for international projects.

In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …

Quality of life

Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Da Nang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Da Nang always bring a sense of peace, comfort and closeness to nature. Da Nang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.

Da Nang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that Da Nang is an exciting place to live, work, travel  and invest in Vietnam.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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