Transcript Viet Nam

PRESENTATION
OF H.E. AMBASSADOR NGUYEN XUAN LUU
ECONOMIC FORUM CLUB
Bratislava, 20 June 2013
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Viet Nam
Part I: Overview of Vietnam
Part II: Main economic achievements of Vietnam in
recent years
Part III: Some aspects of Vietnam - Slovakia
economic and trade relations
Recommendations to promote economic
cooperation between the two countries
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I. Overview of Vietnam
 Area: 331,051.4 km2
 Bordering: China (North),
Laos, Cambodia (West), East
Sea (East)
 Population: 88,780,000 (2012),
54 ethnic groups, multi
religions
 Capital: Hanoi with 6.7 mn
 Business Center: HCM City,
7.5 mn
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Hanoi Capital
4
Hue City
5
Ho Chi Minh City
6
Ha Long Bay
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Overview of Vietnam
 Vietnam is gateway of Southeast Asia and North-East
Asia countries, a geopolitical location conducive to
intergration and economic cooperation with other
countries
 Security, political stability
 Viet Nam-active member of international
organizations in the region and world.
 Market is growing faster and more uniform (economic
reform – renovation)
 Abundant young workforce, 70% of the population
under 40 years old, skilled and good education system
conductive to economic development.
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II. Main economic achievements of
Vietnam in recent years
Renovation achievements
 Economic reform (Doi Moi - Renovation) from 1986
 Sustain high and stability economic growth for years,
- GDP growth average 7.5% during 2001-2005, 7%
between 2006-2010 and 5.03% in 2012
- GDP 2012 total: USD 136 bn; Agriculture: 21% GDP,
Industry: 41% and Service: 38%; corresponding
structure in 1991: 41%, 24%, 35%.
- GDP per capita in 1986: 100 USD, 2012: 1,540 USD
 Viet Nam joined the middle-income countries
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GDP growth in 2010-2012 at relatively high level
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8
7
6
5
4
3
2
1
0
GDP
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
10
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 Regional and International Integration:
- Motto: Vietnam is a friend and reliable partner of
all countries in the international community
- Diplomatic relations with over 180 countries.
Trade-investment relations with more 200
countries and territories
- Member of ASEAN, APEC, UN, WTO …
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Export and Import
Import-export
turnover increase 1520%/ year
In 2012, exports
reached USD 115 bn,
up 18% compared with
2011
Imports reached USD
114 bn, up 7%
compared with 2011
Opening of economy
is high: im-ex/GDP:
170%
120
110
100
90
80
70
60
50
40
30
20
10
0
Export
Import
2009 2010 2011 2012
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Goods export market in 2012
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EU: USD 20 bn, 17% of
total exports
United States: USD 20
bn, 17%
ASEAN: USD 17 bn,
15%
Japan: USD 13 bn, 11%
China: USD 12 bn, 10%
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US
EU
15
ASEAN
10
CHINA
5
JAPAN
0
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Main export goods
Textiles & garments: USD 15 bn, up
7% in 2012
Phone & accessories: 12.6 bn, up 97%
Crude oil: USD 8.5 bn, up 16%
Electronic & computer: 8 bn, up 70%
Footwear: 7 bn USD, up 11%
Aquatic products: USD 6 bn, up 1%
Machinery, equipment, tool & spare
parts: USD 5.5 bn, up 27%
Wood & wood products: USD 4.6 bn,
up 17%
Vehicles & parts: USD 4.5 bn, up 30%
Rice: USD 3.7 bn,
Coffee: USD 3.7 bn,
Rubber: USD 2.8 bn,
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14
12
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Textiles and
garments
Crude oil
Phone &
accessories
Footwear
Aquatic products
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Electronic &
computer
Machinery parts
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Wood products
4
Rice
2
0
Rubber
Coffee
Vehicles & parts
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 Vietnam is the world leader in exports of
black pepper, cashew nuts.
 Second place in exports of rice, coffee.
 Third place in exports of natural rubber.
 Top 10 place in exports of seafood.
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Goods import market
China: USD 29 bn, 25% of
total imports
ASEAN: USD 21 bn, 18%
South Korea: USD 15.6
bn, 14%
Japan: USD 12 bn, 10%
EU: USD 8.8 bn, 8%
United States: USD 4.7 bn,
4%
30
25
CHINA
ASEAN
20
15
SOUTH
KOREA
JAPAN
10
EU
5
US
0
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Main import goods
Electronic, computer &
accessories: USD 13 bn
Machinery, equipment, tools,
spare parts: USD 16 bn
Petroleum: USD 9 bn
Fabric: USD 7 bn
Steel: USD 6 bn
Phone & accessories: USD 5 bn
Plastics: USD 5 bn
Raw materials for textile, wear,
footwear: USD 3 bn
Chemicals and Chemical
products: USD 5 bn
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Machinery, equipment,
tool, spare parts
Petroleum
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Fabric
Plastic
10
8
6
4
2
Raw materials for
textile, wear, footwear
Chemicals
Chemical products
Animal feed & raw
materials
Electronic
Steel
Phone & accessories
0
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Foreign investment
(Law adopted in 1988)
Value
FDI in 2010: USD 18.6 bn
In 2011: USD 14.7 bn
(Billion
USD)
Projects Countries,
territories
2010
18.6
1,237
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2011
14.7
1,465
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2012
13.0
1,535
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As of
5/2013
217
14,918
100
In 2012: USD 13 bn
As of 5/2013: USD 217 bn,
14,918 investment
projects from 100
countries and territories
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Top five countries FDI
Value
As of 5/2013
Japan: USD 32 bn, 1,959 projects
Taiwan: USD 27 bn, 2,249
projects
Singapore: USD 27 bn, 1,154
projects
South Korea: USD 25 bn, 3,302
projects
British Virgin Islands: USD 15
bn, 511 projects
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Japan
30
25
Singapore
20
South Korea
15
Taiwan
10
5
British
Virgin
Islands
0
Projects
3.500
3.000
2.500
Japan
Singapore
2.000
1.500
1.000
South Korea
Taiwan
500
0
British
Virgin
Islands
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 FDI of Viet Nam in abroad:
Up to 3/2013, Vietnam had 742 investment
projects abroad with a total registered
capital of USD 15.5 bn in many countries
and territories.
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Official Development Aid (ODA)
 ODA record USD 7.9 bn in 2010, 7.4 bn in 2011
and 6.5 bn in 2012.
 As of 2012, about USD 37 bn ODA disbursed since
1993.
 The major ODA donor: WB, ADB, EU, France,
Germany, Japan, South Korea, Australia...
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Vietnam’s economic success:
The reason for
 Political and social stability
 Improve the legal environment and institutional market
economy
 Reform the public sector and encourage the
development of the private sector
 Improving infrastructure, transport, energy and
training of human resources for development
 International economic integration activities
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Socio-economic development
indicators in 2013
 GDP increased by 5.5%.; Export turnover
increased by 10%.; Trade deficit about 8%; State
budget deficit by 4.8% of GDP; Inflation about 8%;
Total investment of the whole society developed
around 30% of GDP.
 The poverty rate fell by 2%; Create jobs for about
1.6 million workers; The unemployment rate in
urban areas as 4%;
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Difficulties to be solved
 Overcome the difficulties as Potential risk of high
inflation; Macroeconomic instability; High bad
debt (7% of GDP); High level of bankruptcy; Real
estate market and stock market plummeted.
 Steps are taken:
- Reform banking system to solve the high bad
debt
- Fix financing policy to reduce inflation, reduce
the income and company tax.
- Restructuring the state companies
- Promoting exports, FDI and ODA inflows.
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III. Vietnam and Slovakia relations
Traditional friendship and multilateral cooperation
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 In 2006 President of Slovakia Ivan Gaspanovic visited Viet
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Nam.
In 2008, Prime Minister Fico visited and reopened the Embassy
of Slovakia in Hanoi.
In 2009, Vietnam President Nguyen Minh Triet visited
Slovakia. Embassy of Vietnam opened in Bratislava in 2010.
In 2010, Chairman of N A Pavol Paska visited Viet Nam
The results of the visits gave new impetus to the development
of bilateral relations today.
In April 2013, First Meeting of Joint Commission on Economic
Cooperation between Viet Nam & Slovakia
The two countries signed several treaties and cooperation
agreements to create a legal framework for promoting bilateral
cooperation.
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Trade
TWO-WAY TRADE TURNOVER
Million USD
VIETNAM EXPORT-IMPORT
350
Million USD
300
300
250
250
200
200
Two-way
trade
turnover
150
100
100
50
50
0
0
2006 2011 2012
export
import
150
2011
2012
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Trade
 Two-way trade turnover increased from USD 26 mn in
2006 to USD 170 mn in 2011 and USD 307 mn in 2012.
 Viet Nam exported USD 291 mn mainly computers,
electronic products and components, footwear of all
kinds, textiles and garments, seafoods
 Viet Nam imported USD 16 mn mainly machinery,
equipment and parts, wood and wood products;
chemical raw materials for textile, leather, shoes and
feed materials
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Investment & economic cooperation
 Investment & economic cooperation are limited
 Investment: Slovak companies interested in the Vietnam
market. Group Investment and Development of Slovakia
(BTG) has an investment project in Hoa Binh province
(Industrial park).
Finance Group J & T (investment in construction project of
office buildings in HCM City).
 Slovak companies participated in Exhibitions in Ha Noi 2011
and 2013; Economic forums are organized in Viet Nam &
Slovakia.
 Some Vietnamese companies are interested in Slovak mobile
market; selling coffee, rubber, seefood to Slovakia and though
Slovakia to EU countries.
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Recommendations
 Vietnam is a bridge to Slovakia in the ASEAN
market and Slovakia for Vietnam into Eastern
Europe - EU.
 Great potential to develop cooperation in
tourism, cultural cooperation, training and
education.
 Joint Commission is a good mechanism to
promote cooperation. Encourage the small &
medium enterprises (SME)
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 How doing business in Vietnam?
- Open economy but highly competitive and lack
of information.
- Big markets, profitability prospects but
administrative procedures; unskilled workers
- Doing business in the cities, the industrial
zones due to good infrastructure conditions
- Increase export of SK through investment
projects
- Support from the Slovak Embassy in Vietnam
and the Vietnam Embassy in Slovakia.
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Conclusion
 Time of opportunity to promote relations and
cooperation between Vietnam and Slovakia.
Vietnam - industrialization, modernization and
rapid economic development. Slovakia – new,
active member EU.
 Slovakia and Vietnam will take advantage of
opportunities to enhance cooperation, exploit
strengths and potential of the two sides, meeting
the interests of our two countries.
 Friendly relations and cooperation need a new
driving force from the young generations.
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Thank you!
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