Vietnam and India have a longstanding and resilient relationship, stemming from over 2,000 years of cultural exchange, which was established and nurtured by the leaders of both countries, including President Ho Chi Minh, spiritual leader Mahatma Gandhi, and Prime Minister Jawaharlal Nehru. The people and leaders of both nations have continuously worked to develop this relationship.

Vietnam - India diplomatic relations

India is one of the countries with which Vietnam has established a comprehensive strategic partnership since September 2016. India is an important partner in Vietnam's priority policy for the South Asian region and a reliable traditional friend of Vietnam. In Southeast Asia, Vietnam is a crucial pillar in India's Act East Policy and the Indo-Pacific vision, which emphasize openness and inclusivity. Vietnam is one of India's key partners and closest friends in ASEAN. The India-Vietnam relationship is one of India's most important bilateral relationships in Southeast Asia.

On December 21, 2020, the governments of Vietnam and India approved the "Vietnam-India Joint Vision for Peace, Prosperity and People" to guide the comprehensive strategic partnership between the two countries. This partnership covers traditional areas of cooperation such as politics, trade, investment, energy, defense, security, and people-to-people exchanges, as well as new areas of cooperation such as space cooperation, civilian nuclear cooperation, information technology, and marine science.

In 2022, at the invitation of the Chairman of the National Assembly of Vietnam, Vuong Dinh Hue, the Speaker of the House of the Republic of India, Om Birla, and the delegation of the Indian Parliament visited Vietnam from April 19 to 21. This visit was an important highlight for the comprehensive strategic partnership between Vietnam and India, especially as the two countries celebrate the 50th anniversary of diplomatic relations in 2022.

During the visit, through the activities of the Speaker of the House of the Indian Parliament meeting with high-level leaders of the Vietnamese Party and State, as well as the activities of the Secretary General of the Parliaments of the two countries, both sides discussed and agreed on many issues related to the bilateral relationship and legislative bodies of the two countries.

Strong economic & trade partnership between Vietnam - India

In South Asian countries, India is Vietnam's most important market, accounting for 80% of Vietnam's total trade turnover in the region. In 2017, bilateral trade between the two countries reached $7.5 billion, an increase of nearly 38% compared to 2016. By 2022, India had become Vietnam's eighth largest trading partner.

Bilateral trade between Vietnam and India has increased rapidly from $200 million in 2000 to $13.2 billion in 2021. This is the first time that two-way trade between Vietnam and India has exceeded $13 billion. In particular, only five years after the two countries upgraded their relationship to a comprehensive strategic partnership, bilateral trade turnover doubled and reached $15.05 billion in 2022.

In the first eight months of 2021, Vietnam-India bilateral trade showed positive growth. Exports to India reached $3.955 billion, up 26.7% compared to the same period in 2020, with key export items including phones and components (20.7%), computers, electronic products and components (13.8%), and machinery, equipment, tools, and spare parts (10.5%). Compared to the same period in 2020, chemical exports to India increased significantly (126.5%), metal and product exports increased by 45.2%, plastic raw materials increased by 432%, rubber increased by 121.2%, textile, garment, leather and shoe raw materials increased by 86.9%, and agricultural products such as pepper increased by 58.5% and vegetables and fruits increased by 51%.

Vietnam's imports from India in the first eight months of 2021 reached $4.689 billion, up 60.7% compared to the same period in 2020. The main imported items were iron and steel (16%), corn (6.5%), and machinery, equipment, tools, and spare parts (6.2%). Corn imports increased sharply, with a total value of $306 million. Imports of animal feed and raw materials were $203 million, up 219.4%.

As of the end of the first quarter of 2022, total trade turnover between the two countries reached $4.09 billion. The main export items from Vietnam to India in this quarter were phones and components ($464.6 million), computers, electronic products and components ($223.4 million), and other common metals and products ($180.5 million). The main import items from India to Vietnam in this quarter were various types of iron and steel ($306.5 million), corn ($155.8 million), and various types of cotton ($152.2 million).

Robust investment cooperation between Vietnam - India

India and Vietnam have not only established an important trade partnership but also a cooperative investment relationship with the participation of numerous Indian corporations and Vietnamese enterprises.

As of August 2022, Vietnamese enterprises had invested in 10 projects in India with a total capital of $6.2 million, ranking 44th out of 79 countries investing in India. India ranked 24th out of 139 countries and territories investing in Vietnam with 334 projects and a total investment capital of around $1 billion.

The average scale of Indian projects is $2.9 million per project, lower than the national average of $11.8 million per project. Indian projects focus mostly on the processing and manufacturing industry with 60 projects and a total investment capital of $459.6 million, accounting for 50.5% of the total investment capital. The electricity production and distribution sector has six projects with a total investment capital of $236.3 million, accounting for 26% of the total investment capital. The mining sector has five projects with a total investment capital of $96.5 million, while the remaining projects are in other sectors.

Excluding three oil and gas exploration projects, India has invested in 28 localities. Ninh Thuan province leads with four projects and a total investment capital of $195.1 million, of which the INFRA 1 solar power plant project has a total investment capital of $71.9 million. Phu Yen province has eight projects with a total investment capital of $189.64 million, of which the Son Hoa sugar factory project is the largest Indian project with a total registered capital of $94.5 million. Binh Duong province ranks third with 10 projects and a total investment capital of $116.26 million, including the TAT Coffee Vietnam Co., Ltd project with a total investment capital of $67.5 million. The remaining projects are located in Ho Chi Minh City, Nghe An, Long An, and other provinces.

Prospects and trends in future bilateral relations

Vietnam and India share a common desire for peace, stability, and security in the region, as well as a similar foreign policy approach based on multilateralism. Both countries share a vision for the Indian Ocean - Pacific Ocean region. They always support each other in regional and global issues through ASEAN-led mechanisms or the Mekong-Ganges Cooperation. In 2021, as non-permanent members of the United Nations Security Council, Vietnam and India collaborated closely to achieve consensus on many important documents such as resolutions or statements of the Council's President.

India has been and is promoting economic integration with CLMV countries (Cambodia, Laos, Myanmar, Vietnam) and the Mekong-Ganges Cooperation initiative. Recently, at the ASEAN-India Ministerial Meeting, the parties reviewed the ASEAN-India Free Trade Agreement, upgrading it to enhance economic connectivity with India. Meanwhile, Vietnam holds a central position in India's Look East Policy and its vision for the Indian Ocean - Pacific Ocean region. Under the framework of the Mekong-Ganges Cooperation, India has sponsored 37 Quick Impact Projects (QIPs) worth $50,000 each, which have been completed and brought positive results to people in difficult areas of Vietnam.

These are the premises and favorable conditions for developing trade and investment cooperation between the two countries. To leverage these advantages and promote economic cooperation between Vietnam and India, the following issues need to be addressed:

• Firstly, each side needs to leverage their strengths. India is leading in areas that Vietnam can learn from, such as science and technology, especially digital technology, energy, and nuclear technology. On December 15, 2021, the Indian Ministry of Technology announced a $10 billion plan to attract screen and semiconductor manufacturers with the ambition of making India a global electronic manufacturing hub. India also approved a plan to support 100 domestic companies in the field of chipset and IC design. Additionally, Vietnam can share its experience in social management, poverty reduction, and other social policies with India.
• Secondly, it is necessary to leverage the similarity in policy and the spirit of self-reliance of the two nations to unlock the potential for trade and investment cooperation. India is expected to be the fastest-growing major economy in the world, with some bold reforms to be implemented in agriculture, manufacturing, education, and labor. Vietnam aims to become a high middle-income country by 2030 and a high-income country by 2045.
• Thirdly, create a platform for strategic interests, economic interests, and emotional ties between the two nations.
• Fourthly, strengthen the connection and cooperation between small and medium-sized business communities in Vietnam and India to support each other's development.
• Fifthly, continue to enhance exchanges at all levels, fields, and strengthen people-to-people exchanges to constantly reinforce trust, sharing, and cooperation.

Vietnam and India are two rapidly developing economies in the region. The economic relationship between India and Vietnam is a pillar of the comprehensive strategic partnership between the two countries. In the coming time, the pillar of Vietnam-India development cooperation in the economic field will be further developed.

Conclusion

In the coming years, investment relations between the two countries will have new breakthroughs, focusing on the fields of seaports, energy, infrastructure, oil and gas, information technology, digital transformation, digital economy, marine science, processing and manufacturing technology, automotive supporting industries, and more.

If you are an Indian investor looking to expand your business into Vietnam, Viettonkin Consulting can help. We have extensive experience in the Vietnamese market and can provide you with the support you need to succeed. Contact us today to learn more. With our help, you can take advantage of the many opportunities available in Vietnam and build a successful business. Don’t hesitate to reach out to us!

There are the 5 main types of business entities available in Malaysia.

· Sole Proprietorship
· Partnership
· Sendirian Berhad (Sdn Bhd): Private limited company limited by shares
· Berhad (Bhd):

• Unlisted Public Company
• Listed Public Company
• Company Limited by Guarantee

· Limited Liability Partnership (LLP): Mix of traditional partnership and Sdn Bhd company

During the progress, simple procedures that can be finished include incorporating a business in Malaysia and creating a corporate bank account. If a Power of Attorney is granted to the Malaysia incorporation agent, who will then carry out all procedures on his behalf, Our Client won't need to travel to the nation. The following steps are as below:

Requirements

After deciding on the business entity type, to set up a company in Malaysia, the following requirements shall be met:

· Minimum of 1 shareholder
· Minimum of 1 local resident director
· Minimum of 1 local resident company secretary
· Minimum of RM1.00 initial paid-up capital
· A local registered address

Pre-incorporation planning

• Before Viettonkin Consulting moves forward with the establishment of a Malaysian business, our firm demands that our Client shall:

i) pay the engagement fees that are due,
ii) sign our engagement letter, and email it back to us;
iii) each shareholder, director, and the corporate beneficial owner shall deliver to us all requested due diligence papers such as:
Copy of Identification Card (IC) or Passport
Copy of residential proof address or bank statements

• The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia – SSM) is searched by Viettonkin Consulting's Malaysia Incorporation Team for company names. If the name is available, we fill out Form PNA 42 on your company's behalf to reserve it. SSM typically takes 1 to 3 working days to approve a name reservation.
• For our Client, Viettonkin Consulting creates a thorough engagement strategy for the creation of a Malaysian Company that includes the requirements for creating a corporate bank account. In order to maximize openness and ensure that our Client's expectations will be met throughout the project, this engagement project plan outlines, week by week, each stage to engagement completion;

Incorporation procedure

• Viettonkin Consulting will complete the incorporation of Form A for our Client's signature and courier return once the corporate structure has been decided upon with our Client. After that, we create the corporate documents for the company incorporation.
• To our client for his signature and courier return to us, our team emails the Memorandum and Articles of Association, as well as the director and shareholder consent forms. Viettonkin Consulting' Incorporation Team works with the SSM to finalize business incorporation in Malaysia, provided our Client gives us the original signed documents in a timely way;
• The Certificate of Incorporation from the Malaysia SSM is sent to Viettonkin Consulting via email, and our staff quickly forwarded it to the Client;
• The Viettonkin Consulting Malaysia incorporation team submits to the SSM a register of the company's shareholders, directors, managers, and secretaries on behalf of the client.

Post-incorporation

• By filling out and submitting Form CP 600C to the Inland Revenue Board of Malaysia, Viettonkin Consulting registers our Client's business for corporate tax;
• Together, the Banking Team at Viettonkin Consulting opens a corporate bank account for our Client in Malaysia with top-notch multi-currency internet banking capabilities. For the purpose of offering corporate bank account services, we collaborate with locally-based Maybank, Public, CIMB, and RHB banks as well as globally renowned institutions like HSBC, Standard Chartered, and Citibank.
• In order to avoid our Client having to go for a bank account opening interview, Viettonkin Consulting's Banking Team will also communicate with the bank. Our Client is obliged to deposit the proposed share capital of the company as soon as the bank account is opened. The board resolution to move forward with creating a bank account will be sent by our company secretary together with all approved corporate documentation;
• Following the conclusion of the engagement, Viettonkin Consulting couriers a company kit folder containing the following corporate documents, including original corporate documents, bank correspondence, and a client feedback survey to evaluate the quality of our Malaysia company incorporation services, to our Client's preferred international address;
• All foreigners wishing to work lawfully in Malaysia must first get a working visa in Malaysia. There are 2 main types of work passes available in Malaysia:

· Employment Pass
· Professional Visit Pass
Viettonkin Consulting will assist clients in applying for a working visa for foreigners working in Malaysia

Conditional business sectors in Malaysia

The following commercial activities call for a license for foreign investors when forming a company in Malaysia:

(i) manufacturing;
(ii) banking;
(iii) construction projects;
(iv) oil, gas,
(v) both retail and wholesale.

See this page for more information;

Malaysia local business industry licenses are as follows:

Compliance under Malaysian regulations

The following post-incorporation compliance factors for our Client's Malaysian company:

• Our Client is required to appoint Malaysian auditors six months before the required Annual General Meeting;
• The Annual General Meeting (AGM) must be convened 18 months after incorporation, and the Annual Return must be filed within 14 days of the AGM;
• Our Client must finish Employee Provident Fund (EPF) registration within a week after formally hiring the first employee, and within a month, register with Social Security Organization (SOCSO);
• Our Client must register for GST with the Royal Malaysia Customs Department and submit quarterly reporting if annual sales exceed US$121,000 (RM500,000).

Dubai’s thriving creative economy drew Dh4.9 billion foreign direct investment in 2021 to rank first in the region and fourth globally in terms of creating jobs from FDI in the sector.

Dubai attracted 233 new projects in the creative economy in 2021. Surpassing other major cities such as New York, Singapore and Berlin, Dubai improved its rankings from fifth in the previous year, according to the Dubai FDI Monitor report, published by the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET).

The rise in FDI inflow and rankings reflect the enhanced attractiveness of the emirate’s creative economy. In terms of the number of new jobs in the creative economy, Dubai held on to its top rank regionally and fourth globally with 6,204 new jobs created from FDI, according to the report that was based on data from the ‘FDI Markets.’

Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, Chairperson of the Dubai Culture and Arts Authority (Dubai Culture) and member of the Dubai Council, said the emirate consolidated its status as a global cultural hub and investment destination, ranking first in the Mena region and second in the world in attracting foreign direct investment (FDI) in the cultural and creative industries (CCI) in 2021.

“These results reflect the maturity and stability of the investment environment in the emirate’s creative economy. Dubai has created outstanding FDI opportunities in the sector by building a robust ecosystem and an advanced business-enabling infrastructure for creative entrepreneurs,” Sheikha Latifa said.

“By fostering an environment that promotes learning, development, and innovation, Dubai has developed a vibrant global creative community. Its unique social fabric that has evolved out of the emirate’s remarkable cultural diversity and its comprehensive human-centred development process has further supported the growth of Dubai’s creative economy,” she said.

Sheikha Latifa said Dubai has witnessed a remarkable rise in FDI capital flows in the creative economy during the past five years. In the 2017-21 five-year period, the emirate’s creative economy witnessed FDI capital inflows of Dh50.9 billion across 787 projects. “This increase follows the directives and initiatives of Dubai’s wise leadership to make the emirate a destination for creativity and talent through innovative infrastructure, laws and legislation. The results are now a tangible and sustainable reality in the development journey, as envisioned by the leadership.”

According to the Dubai FDI Monitor report, these projects created 32,542 new jobs during the five-year period. Dubai ranks fifth globally in terms of projects, eighth in terms of FDI capital flows into the creative economy, and fourth in terms of jobs created during the past five years.

“Dubai’s success in continuously enhancing the well-being of its citizens, residents, and visitors and elevating the quality of services provided to them has raised the global creative community’s confidence in the emirate and made it a preferred global business, lifestyle, and entertainment destination,” said Sheikha Latifa.

Hala Badri, director general of Dubai Culture, said the Authority continues to reinforce the foundations to open new horizons for the various components of the emirate’s creative economy and cement its position on the global scene as an ideal investment destination.

Helal Saeed Almarri, director general of the Department of Economy and Tourism in Dubai, stressed that Dubai’s regional and global pre-eminence in FDI attraction stems from the vision and guidance of the leadership to build a diversified economy based on knowledge and innovation. Fahad Al Gergawi, chief executive officer of Dubai FDI, stressed that Dubai’s cultural and creative industries sector has increased its attractiveness to all forms of FDI, including greenfield FDI projects, FDI Reinvestment projects, Mergers and Acquisitions, Joint-Ventures, and New Forms of Investments, in addition to Venture Capital Backed FDI.

According to ‘Dubai FDI Monitor’ data, Greenfield FDI accounted for 71 per cent of the total FDI projects in Dubai’s cultural and creative industries in 2021, followed by Mergers & Acquisitions projects (12per cent of the total), Reinvestment FDI projects (9.0 per cent), New Forms of Investments (5.0 per cent) and Joint Venture (2. per cent).

Source: Khaleej Times