Transcript Slide 1

Ministry of planning and investment (MPI)
Investment Climate
in VIET NAM
By Le Huu Quang Huy, M.A
D.D.General & Executive Director
INVESTMENT PROMOTION CENTER FOR CENTRAL VIETNAM
Bangkok, 28 May, 2007
Investment climate in Viet Nam
I.
Vietnam - Key facts at a glance
II.
Why investing in Vietnam?
III.
New Law on Investment
IV. Investment Opportunities to Vietnam
and Its Central Region
Investment Climate in Viet Nam
Vietnam
Key facts at a glance
Vietnam in the region
Vietnam - Key facts at a glance
Location: Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South
China Sea, alongside China, Laos, and Cambodia.
Area: total: 329,560 sq km, land: 325,360 sq km, water: 4,200 sq km.
Climate: tropical in south; monsoonal in north with hot, rainy season (mid-May to midSeptember) and warm, dry season (mid-October to mid-March).
Population: 84 million (2006) ,60% of the population is below the age of 30.
GDP real growth rate: 8.2% (2006).
GDP by sector: Agriculture (20.8%), Industry and Construction (41%), Services (38%).
GDP per Capita: around $ 740 (2006).
Labor Force: 42.5 million.
Main Exports: crude oil, coffee & cashew; textiles & garments, footwear; fishery
products; electronic products & components.
Main Imports: machinery, equipment & parts, refined petroleum, steel, textile industry
materials, cloth
Socio-economic achivements
Socio-economic
achivements
After 20 years of implementing the “Doi moi”
policy (Renovation)
- Rapid economic growth
- Technical material basis strengthened
- Better living standard of people
- Stable socio-political situation maintained
- External relation expanded and so on.
- The annual average GDP: 8% (in 2006, 8.2%))
GDP growth rate 1991-2005, 2006-2010
Vietnam's GDP Growth Rate, 1991-2003
12
10
8.7
8
6 5.81
8.08
9.54 9.34
8.83
8.15
5.76
6.75 6.84 7.04 7.1
7.7
8.4
8
4.77
4
2
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20062010
(plan)
Foreign Direct Investment in
Vietnam
Over view of FDI in Vietnam
1988 - May, 2007
• * 7,086 projects in operation
•
over $ 64 billion of registered capital
•
over $ 29 billion disbursement
• * Accounting for:
– 16 % of GDP
– 56% of export value
• * Creating 1,2 million direct jobs;
• Thailand ranks number 12: with 145 projects, US$ 1.6 billion (disbursement
of US$ 832 Mil or 52% of total registered capital)
FDI in 1st 5 months of 2007
•
* 372 projects with registered capital of $ 4.3 billion (18.7% higher same
period of 2006)
• In which, Thailand, 7 projects with registered capital of $ 301 mil accounting
for 8,6 % of whole country and 33,7 % compared with ASEAN countries
10000
9000
Table 1
8765
8420
8351
7779
8000
7000
6000
5190
5408
5000
4047
4000
3414
2983
3126
3000
2327
2361
2 2 4 1 2301
2000
1439
717
1000
2203
1680
1150
641
0
Singapore Taiwan Korean Japan Hong Kong British Holland USA
V. Islands
- Registered Capital
- Disbursement
France Cayman
Islands
ASEAN FDI TO VIETNAM
(1988-2007)
ASEAN FDI to Vietnam
Singapore
ASEAN FDI to Central Region
71%
Philippines
2%
Indonesia
1%
Sin g a p o r
Thailand
13%
e
Malaysia
68%
13%
Ma la ysi
Ph ilip p in
Th a ila n d
es
11%
19%
THAILAND’S FDI TO VIETNAM
BY OWNERSHIP AND SECTORS
MAY, 2007
900
800
827
BCC
1%
700
$ Mil
600
500
449
400
330
300
200
100
0
industry
service
Registered Capital
Source : MPI
A-F-F
JointVenture
43%
100%FOC
56%
Vietnam - Thailand
two way business
- In 2006, import-export turnover : US$ 3.93 billion
- The 7th trade partner of Vietnam (number 11 as
importer from and number 6 as exporter to Vietnam).
- 3 major merchandises exported to Thailand :
Computers and electronic products, crude oil and aquaproducts.
- 4 major merchandises imported from Thailand :
various kinds of oil and gasoline, plastic materials,
motorbike spare-parts, equipments and machineries.
Why Invest in Vietnam?
Vietnam’s Competitive Advantages
- Political and socio-economic stability;
- Fast economic growth (recently more than 8%
per year, next to China);
- Potential for domestic and export markets (84
million population, easy access to some 2
billion population of ASEAN and China
markets);
- Strategic geographic location (located in the
most dynamic development region in the
World);
Vietnam’s Competitive Advantages
- Low cost and skilled labor force for new and hitech;
- Abundant natural resource;
- Successful integration into regional and world
economies (member of ASEAN, APEC, ASEM
and the 150th member of WTO in late of 2006)
and;
- Open and friendly policies to foreign investors.
Good potential market
Vietnam is currently the world’s
fastest growing beer markets.
The potential is tremendous
given its large population and
that current beer consumption
in Vietnam is only about 10l or
30 cans per person.
…its 2 main brands Tiger &
Heineken have cornered
85% of the premium
market…despite the fact
that a Tiger costs 3 to 4 four
times the local brew
Opportunities in Vietnam
Source : The Business Times 15 April 02
Impressive human resources potential

60% below 30 years old
(Asia’s youngest)

94% literacy rate
(Among the highest in Asia)

Productive & diligent workforce
Well educated and low cost labor
Vietnam’s Competitive Advantages
1600
1520
1400
Competitive Labour Costs
1200
Monthly Workers Wages US$/month
1000
800
600
400
462
339
261
200
208
193
163
150
134
116
108
97
50
0
Vietnam’s Competitive Advantages
Source: Japan External Trade Organization, 2003
Safest place for business
Vietnam stood out as the
country believed to have
the least risk of unrest as
it is not really exposed to
social problems of its
neighbours.
Vietnam’s Competitive Advantages
Source : The Business Times 18 October 1001
A most investment attractive country
Report by UNCTAD, 2006
* One of 8 most investment attractive countries in the Asian region, namely China, India,
Thailand, Korea, Malaysia, Indonesia, Vietnam and Singapore
* Vietnam has the best environment for attracting electrical/electronic projects and the 2 nd
competitive place for transportation, mechanism and plastic field (JETRO )
Integrating into World Economy
1997 : Member of ASEAN
1998 : Member of APEC
APEC 2006 is taking place in Vietnam
2001 : Vietnam-US Bilateral Trade Agreement
2006 : Full realization of AFTA
2006 : 150th Official Member of WTO
Integrating into World Economy
INVESTMENT CLIMATE IN VIETNAM
new Law on Investment - open and transparent
Effect as from1st July, 2006
New points of the Law
- Passed by The National Assembly of S.R.Vietnam on 29
November 2005 and comes to effect as from 1st July 2006.
- Making a break-through in improving and completing
system of laws and polices on investment with main new
basic contents as below :
1. Large scope of application
2. Opening market related to Vietnam’s accession to WTO
3. Variety of forms of investment
4. Guarantee
New points of Law (continued)
5. Dispute resolution and application of international laws
6. Simple investment procedures, two categories:
(i) investment registration
(ii) investment evaluation
7. Procedures for implementation of investment incentive
8. Business, investments funded by State capital
9. State administration of investment
INTERESTING AND ENCOURAGING
TO INVEST IN VIETNAM
SECTORS
Investment Partners
•
•
-All countries and territories
-Especially, investors from industrialized countries as USA,
EU, Japan
•
-Investors from Asian region:
China, Korea, Singapore, Taiwan and Thailand, etc.
Investment sectors:
•
•
•
•
•
•
•
High technology and IT industry;
New materials and new energy;
Supporting industries;
Investing in vegetation and livestock breeding;
Farming and processing of agricultural, afforestation and
aquaculture products;
Infrastructure developments;
Healthcare and education
Central Vietnam
A growing region for investments…
WELCOME TO CENTRAL VIETNAM
Endowed with a strategic gateway for East Sea of the Greater
Mekong Sub-region countries and rich in natural resources,
tourism potential, Central Vietnam is keen for calling foreign
investors, Thai investors in particular, come to invest in the
following sectors:
- Infrastructure (highway, airport and seaport);
- High quality and light construction materials;
- Ship-building, ship and aircraft repair;
- Financial, banking and insurance sectors;
- Education with international standard;
- Hotel, resort, trade center and eco-tourism;
- Cultivation and processing aquaculture, agro-product;
and
- Environmental treatment factory.
What is IPCC?
Located in Danang city - Vietnam, IPCC is an organization under
Foreign Investment Agency (FIA), Ministry of Planning and
Investment (MPI). Its function is to promote investment activities
over provinces and cities in Central and High Lands from Thua Thien
Hue to Khanh Hoa province
Organizational chart of IPCC
DIRECTOR
INVESTMENT
PROMOTION DIVISION
ADMINISTRATIVE
DIVISION
CONSULTANT
DIVISION
IPCC’S DOMESTIC AND FOREIGN PARTNERS
INVESTMENT PROMOTION CENTER FOR
CENTRAL VIETNAM (IPCC)
Address
Tel.
Fax
Email
: 102 Quang Trung Str., Danang city, Vietnam
: (84 - 511) 889669 / ~889689
: (84 - 511) 889679
: [email protected]
Welcome to Vietnam !
IPC
CENTRAL VIETNAM
Thank you!