Transcript Ministry of Industry and Trade of Vietnam

Embassy of Vietnam in South Africa
Cape Town, 26 June 2015
Vietnam: Trade, Investment
& Tourism Potentials
VIETNAM
• Location: central of South-East
Asia, bordered with China in
the North, Laos, Cambodia in
the West, and by the Gulf of
Thailand, Gulf of Tonkin, East
Sea
• Area: 331,689 km2
• Population:
approximately
94,5 million (2015)
• Coat line: 3,444 km.
• Major cities: Ha Noi, Hai
Phong, Da Nang, Ho Chi Minh
city, Ba Ria - Vung Tau, Nha
Trang, Can Tho.
VIETNAM
• Languages:
- Vietnamese (official)
- English (most favoured)
- Chinese, French, Russian
• Religions:
- Buddhist (10%)
- Catholic (6.7%)
- Protestant (0.5%)
- None (81%)
- Others (1.8%)
• Oil-proved reserves:
10 bill tons equivallent ++
• Natural gas reserves:
1,000 bill cubic meter
• Coal-proved reserves:
15 billion tons ++
• Other resources:
Bauxite, iron ore, copper,
gold, precious stones, tin
and hydropower
Economic reform
The Renewal Process of Viet
Nam has been launched since
1986 and aimed at:
• Opened and socialist-oriented
market economy.
• Diversified in economic sectors:
state-owned, privates, FDI…
• Promote and expand international
relations.
• Public administrative reformed,
strengthen legal framework.
Annual GDP Growth rate (2004-2014)
8.4
9
8
7
6
5
4
7.7
8.2
8.4
6.78
6.18
5.32
5.89
5.03
5.42
5.98
3
2
1
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ECONOMIC FIGURES IN 2014
 GDP: 154 billions USD
 GDP per capita: 1700 USD
 Export: 150 bil. USD, increased 13,6 %
 Import: 148 bil. USD, increased 12.1%
 FDI: 15.6 billions USD, increased 9.6 %
Export
• Main export commodities of Viet Nam :
Seafood, Rice, Rubber, Crude oil, Coal, Garment and
textile, Footwear, Electronics and computer components,
Wooden products, pepper, tea, etc.
• Major Export Markets: USA (19 %), EU (18.6 %),
ASEAN (12.6 %), Japan (9.8 %), South Korea (5.2 %),
Export
Vietnam is:
• The world 2nd largest exporter of rice.
• The world 2nd largest exporter of coffee.
• The world largest exporter of pepper with 60 % of the
world market share.
• The world largest exporter of cashew nuts.
• The world 4th largest exporter of natural rubber.
• The world largest exporter of pangasius fish with 90 % of
the world market share.
Import in 2014
Item
Amount
(bill. USD)
Machineries, manufacturing
equipments and spare parts
22.5
Electronic and PC,
components
18.8
Fabrics
9.5
Fuel and petrochemicals
7.6
Iron and steel
7.6
Plastic materials
6.3
Materials for textile and
shoe leather
4.8
Fertilizers
1.3
Total
148
Import
• Main import commodities:
Machinery and equipment, petroleum products,
fertilizer, steel products, raw cotton, cars, wine, etc.
• Main import partners:
China (29.5 %), Asean (15,6 %), Korea (14.7 %), Japan
(8.6 %), EU (6.0 %).
VIETNAM’S ECONOMY 5 MONTH 2015
“The socio-economic performance has
been showing positive changes in
2014 and the Government has set
higher targets for 2015 “
HIGHER TARGETS FOR 2015

GDP growth: 6.2 %

CPI increase: 5 %

Export growth: 10 %

Investment for Social Development: 30 %
of GDP
VIETNAM’S ECONOMY 3 MONTH 2015

GDP growth: 6.03 %

Export: 35.7 bil. USD, increased
6.9 %

Import: 37.5 bil. USD, increased
16.3%

FDI: 1.22 billions USD, decreased
40.6 %
International relations
• Trade Relations with 221 countries and territories, signed
90 trade agreements of all kinds
• Member of International Organizations: UN, NAM.
- ASEAN (since 1995)
- APEC (since 1998)
- WTO (since 2007)
- Free Trade Agreement: ASEAN-China, ASEAN-India,
ASEAN-Korea, ASEAN – Australia – New Zealand
- Currently negotiating FTA with the EU and Trans-Pacific
Partnership (TPP)
Relationship with South Africa
• Diplomatic relation established in 22/12/1993
• Vietnam Embassy in South Africa was established in 2000
• South Africa Embassy in Vietnam was established in 2002
• High level Vietnam delegations to South Africa: Vice
President in 1994, Minister of Foreign Affairs in 1995,
President in 1998, Deputy Prime Minister 2002, Prime
Minister 2004.
• South Africa President Thabo Mbeki visited Vietnam in
2007
Signed Legal Documents
Trade Agreement signed in April, 2000
Agreement on establishing Inter-Governmental Partnership
Forum for Economic, Trade, Scientific, Technological and
Cultural Cooperation .
Agreement on establishing the Joint Commission.
Agreement on Cooperation between the Chamber of Commerce
and Industry of the two countries.
Agreement on Cooperation between the Ministry of Foreign
Affairs of Vietnam and the Dept of International Relations and
Cooperations of South Africa.
 MES of Vietnam recognized by South Africa since 2010.
Bilateral trade volume
Unit: US$ million
Year
2007
2008
2009
2010
2011
2011
2013
2014
Export
115,6
147
378,3
494
1.864,6
612
765
1,061
Import
73,2
137
126,9
165
222,7
111
155
178
188,8
284
505.2
659
2.087,3
723
920
1239
TOTAL
Bilateral trade volume
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Export
Import
2007
2008
2009
2010
2011
2012
2013
2014
Vietnam Export to South Africa in 2014
Main items
Mobile phone
Value
Millions USD
534.6
Shoes
137
Coffee
23.8
Rice
16.1
Pepper
14.6
Cashew nuts
12.4
Furniture
9.8
Computers
9.3
Coal
6.3
Travel items
6.3
Vietnam Import from South Africa in 2014
Main items
Value
Millions USD
Dry nuts
35.0
Shrimps
26.8
Metal scraps
20.7
Aluminium ingots
14.1
Leather
13.3
Plastic materials
7.1
Oranges
6.2
Enzymes
5.5
Stainless steel
5.0
INVESTMENT - INBOUND
• For the last 20 years: Vietnam has emerged as one of the
most attractive destination for foreign investment.
• In 2014 foreign investors have invested in 1,588 newly
licensed projects with a total capital of USD 15.6 billion, an
increase of 9.6 %.
• South Korea is the leading investment country followed by
Hongkong, Singapore, Japan, Taiwan, UK, Belgium,
Canada.
• Most of the world’s famous brand-names such as ADDIDAS,
NIKE, REEBOK, NIKE, INTEL, COCA-COLA, PEPSI,
METRO CASH & CARRY, CANON, FUJITSU,
MERCEDES, TOYOTA, YAMAHA, FORMOSA, POSCO,
SAMSUNG, KUMHO, HYUNDAI … are now being made
in Vietnam.
INVESTMENT – INBOUND FROM AFRICA
•
•
Seven African countries
(Seychelles, Morocco, Nigeria,
Mauritius, Egypt, Kenya and Sierra
Leon) invested in Vietnam in 37
projects for food processing,
manufacturing, wholesale & retail,
repair, science & technology,
accommodation, and consultancy,
worth USD 67.76 million.
South Africa’s investment in
Vietnam includes 3 projects with a
total capital of USD 180 thousand.
INVESTMENT - OUTBOUND
• Vietnamese investors are also starting to invest in foreign
countries.
• By December 2014 Vietnam has 930 outward projects with
registered capital of USD 19.78 billion.
• By 2012 Vietnam has 18 investment projects in 11 African
countries with investment capital of USD 1.1 billion.
• Tanzania had a single largest project of USD355 million,
which accounted for 31 % of Vietnam’s total investment
abroad.
• Burundi had 2 projects of USD 170 million, which
accounted for 16.2 %.
• Vietel Group invested USD 345.6 million in Mozambique,
as well as USD 400 million in Cameroon in
telecommunications infrastructure.
INVESTMENT - OUTBOUND
• Vietnamese investors also start to invest in foreign countries.
• By December 2014 Vietnam has 930 outward projects with
registered capital of USD 19.78 billion.
• By 2012 Vietnam has 18 investment projects in 11 African
countries with investment capital of USD 1.1 billion.
• Tanzania had a single largest project of USD 355 million, which
accounted for 31 % of Vietnam’s total investment abroad.
• Burundi had 2 projects of USD 170 million, which accounted
for 16.2 %.
• Vietel Group invested USD 345.6 million in Mozambique, as well as
USD 400 million in Cameroon in telecommunications infrastructure.
INVESTMENT - OUTBOUND
• Petro Vietnam invested USD 300 million in oil & gas in
Algeria, Tunisia, Cameroon, and the Congo.
• Vietnamese private companies invested in DAP and Urea
manufacturing projects in Morocco and Egypt, assembling
and manufacturing of agricultural machinery in Tanzania,
construction, roof-sheeting, making of two-wheelers,
garments, electronics, soft drinks, forestry, as well as gold
& mineral mining investments in Angola, South Africa,
Ghana, Tanzania and Mauritius.
INVESTMENT - OUTBOUND
• Vietnam has invested in South Africa in 2 FDI projects. The
projects represent a total capital investment of USD 1.665
million and create 4,000 jobs for the people of South Africa.
Why doing business with Vietnam?
Economic
Strategic
Growth
Partner
Political,
security
stability
Strategic
Strategic
geographical
geographic
location
location
Ideal Hub
Big
potential
market
Competitive
man power
Open Policy
Rapid
economic
integration
- Standard rate 22%, to be reduced to 20% from 1/1/2016
- 20% (to be reduced to 17% as from 1/1/2016):
• 10 yrs: areas with socio-economic difficulties; production of feed for
poultry, livestock and fisheries; agricultural machinery, energy –saving
products, high-grade steel; traditional trades
• Entire operation period: (i) enterprises with aggregate revenues of less
than VND 20 billion (1 mil USD); (ii) income of people’s credit fund &
micro-finance institutions
- 10%:
• 15 yrs: areas with special socio-economic difficulties, Economic Zones
and High Tech Zones; hi-tech, R&D, soft ware, specially important
infrastructures, environmental protection, large-scale manufacturers.
• Entire operation period: socialization sectors (education, training, health
care, culture, sports and the environment…); agriculture; social
residential housing development etc.

Machines, materials, special transport means… imported to create
fixed properties of investment incentive projects.

Materials which are not locally produced.

Commodities and devices are imported for the 1st time for
projects such as hotels, offices, apartments, supermarkets, golf
course, resorts, clinics, training, culture, finance…(regulated in
the list of the Government)

Raw materials, materials, components of projects enjoying
investment incentives or areas with especially socio-economic
difficulties are exempted from import tax for 5 years.
What should be done to further promote
bilateral trade and investment
• Make the best use of Embassy, including Trade and Economic
Offices of both countries as information and supporting channels.
• Focus on Investment cooperation in each country’s sectors of
strength and advantages.
• Further exchange of business delegations
• Information sharing seminars or conferences
• Market survey and participation at trade fairs
• Trade promotion activities
Advantages of Hanoi
HÀ NỘI
Advantages of Hanoi
Advantage of Hanoi
- safe & successful investment destination
- rich cultural & friendly environment
SUCCESSFUL ACCOMPLISHMENTS
14.48%
8.52%
42.9%
11.9%
22.2%
Communication
Real Estate
Manufacturing
Trade
Others
TRADE
TOURISM - INBOUND
• Vietnam is a new destination to the world.
• In 2014: 7.87 million foreign visitors, including from :
China:
South Korea:
Japan:
USA:
2 million
0.9 million
0.7 million
0.4 million
South Africa
5 thounsands
TOURISM – OUT BOUND
• Vietnamese tourists tend to travel overseas
• In 2012: 3,5 Vietnamese tourists spent USD 3.5 billion
in foreign countries, including:
• China: 1.1 million
• Thailand: 0.5 million
• Singapore: 0.3 million
• Malaysia: 0.2 million
• South Korea: 0.11 million
WHY TRAVEL TO VIETNAM
•Vietnam is no longer a war, a country of
peace.
•Attractive reasons:
Affordable cost.
Unique beautiful places
Rich cultural and historical background
Rich Historical & Cultural sites
Ha Long Bay – UNESCO World Heritage Site, one of
Seven World Wonders
The Cham beauties
Water Falls
Ethnic agricultural farming
Floating Markets on Mekong River
Foreign tourists on Mekong Rivers
World famous beaches
Fast and easy immigration
process?
How to apply for a visa for Vietnam?
How to apply for a visa for Vietnam?
How to apply for a visa for Vietnam?