Transcript Production

VIETNAM AS A TRADE AND
INVESTMENT PARTNER
Mr. Le Xuan Duong
Director – Export Promotion Center
Vietnam Trade Promotion Agency
Email: [email protected]
Bangkok - 23/5/2013
1. Economic overview

At present, Vietnam is undergoing a market oriented
economy with growing agricultural, industrial and service
sectors. The trade, infrastructure, telecom, construction,
transportation, banking, finance, tourism, … increasingly
contribute to the growth of Vietnam’s economy.

In recent years, despite the world and domestic difficulties,
Vietnam is still one of fast growing economies in Asia.The
main drivers: export, investment & private consumption.

Vietnam’s Mekong river delta (MRD) including 13 provinces
and cities in southernmost of Vietnam, is the center for rice
production, aquaculture and aquatic products processing
that contribute considerably to Vietnam’s export turnover.
The area is also one of nation’s biggest energy and tourist
centers.
Bangkok - 23/5/2013
2. Economic indexes
Population (2012):
Labor force (18–60 years old):
92 mill.
52 mill.
Total GDP (2012 at real value)
*GDP’s growth:
*GDP per capita income:
$138 bill.
+5.03%
$1500
*GDP Structure (% of real value):
*Agriculture, forest, fishery
*Industry and construction
*Services
21.7%
40.6%
37.7%
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3. International economic relation
Under policy of "multi-lateralization and diversification" of
international relations, Vietnam has integrated more deeply into
the world and regional economy:
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Signed BTA with many countries (incl. US, EU, Japan);
Accession to WTO from Jan. 2007
Member of ASEAN, ASEM, APEC.
Participating in FTA and Partnership Agreements that
ASEAN signed with China, Japan, India, Korea, Australia
and New Zealand. Signed FTA with Chile.
Negotiating FTA with EU, Korea, Russia-Belarus-Kazakstan
Customs Union, TPP with 10 other countries, incl. USA.
Bangkok - 23/5/2013
4. 1. VIETNAM’S TRADE 2012
Despite of global economic downturn during 2010-2012:
 Export of commodity: US$ 114.6 billion, up 18,3% from 2011
-Domestic companies 37% (US$42,3 B), up 1.3%
-FDI companies 63% (US$72,3 B) up 31% (incl. crude oil)
 Export surplus US$285 mill. (high export by FDI companies)
 Export value = 81% of GDP (2011: 80%).
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Vietnam 1st place:
2nd place:
4th place:
5th place:
Top World Exporter for:
pepper; cashewnut
rice; coffee
footwear; natural rubber
textile & apparel; tea
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4.2. MAIN TRADE PARTNERS
2012
TT Countries/ Regions
1
2
3
4
5
6
7
8
9
10
TOTAL (bill. US$)
EU 27
USA
ASEAN
JAPAN
CHINA
KOREA
HONG KONG
AUSTRALIA
TAIWAN
INDIA
Export
Import
XNK
114.65
20.27
19.56
17.30
13.09
12.24
5.59
3.70
3.18
2.04
1.80
114,35
8.78
5.20
20.78
11,67
28,93
15,60
0,98
1,80
8,64
2,12
229.00
Bangkok - 23/5/2013
29.05
24.76
38.08
24.76
41.17
21.19
4.68
4.98
10.64
3.92
4.3. INDUSTRIES
Textile & Garments
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Largest industry: more than 2500 enterprises /over 2 million workers
Key export sector increase 21% a year in recent years ($15.3B. in 2012)
More than 60% export orders are processing for international brands
Largest importers: USA (40%), Japan (10.3%), EU, Korea, South America
Footwear & Leather
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About 400 enterprises /over 0.5 million workers
80% export orders are processing for international brands
Largest importers: USA (32%), EU, Japan, Korea
Key export sector $7.26B for footwear and $1.5B for handbags
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Electronics, computers & components
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Almost by FDI manufacturers: Samsung, Sony, Panasonics, Canon,…
Export in 2012 at $7.9B, up 69%
Main markets: China (24%), EU, US (11%), Malaysia
Telephone, cellphone of all kinds
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Almost by FDI manufacturers: Samsung, Nokia
Export in 2012 at $12.64, up 98%
Main markets: EU (44%), Saudi Arab, Russia, Hong Kong
Wooden Furniture
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Both industrial factories and craft villages – high competitiveness
Export in 2012 at $4.6B
Main markets: US (38%), China (16.2%), Japan (15%), EU
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Plastic and plastic products
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Fast growing industry of 35% / year in last decade
There are 200 enterprises (80 in the South)
Export $1.5B up 17% (shopping bags, plastic ware)
Main export markets: Japan, US, EU, China, Cambodia, Thailand,…
Arts and craft
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Traditinally in the villages by SME and family businesses
Products of variety: from Bamboo & rattan wares (33%), portery &
porcelain ceramics (30%), art objects, embroideries, lacques, craft textile
and other craft products
Main export markets: : Japan, US, EU, Taiwan, Cambodia, Thailand
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4.4. MINERAL & STEELS
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CRUDE OIL:
COAL:
Export: 9.51 mill. MT / $8.4 B
Export: 15.57 mill. MT / $1.26 B
(New policy for crude oil & coal: less for export, more for domestic use)
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PETRO GAS, DIESEL OIL:
STEELS OF ALL KINDS:
MACHINERY:
AUTO & MOTORCYLES:
Export 1.92 mill. MT/ $1.85B
Export 1.94 mill.MT / $1.62 B
Export $5.54 B
Export $4.5 B
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5. AGRICULTURE & SEAFOOD
Traditional agriculture production country in South-East Asia
+ Warm tropical climate: high humidity & rain falls;
+ 65% of total population (92 mill.) working in agriculture and
aquaculture;
+ Contribution 22% to total GDP;
+ Secured domestic food supply and spared for exports.
*Total export:
- Main agriculture and forest products: US$ 17.7 billion
- Aquatic and seafood products:
US$ 6.2 billion,
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5.1. MAIN AGRI-PRODUCTS:
*RICE: Export 8 mill. MT / $3.7B
- Production: 42.3 mill. MT (3 crops: WS-SF-FW)
- Export markets: Indonesia, Philippine, Africa, Mid-East, China,..
*CASSAVA (starch, dried chips): Export. 4.2 mill. MT / $1.33B
- Production:
10 million MT (roots)
- Export markets: China (95%)
*CORN: Domestic use only
- Production: 4.65 mill. MT
*NATURAL RUBBER:
- Export 1.01 mill. MT / $2.83B
- Production:
811,600 MT;
- Export market: China (70%), USA, Japan, Korea, Russia.
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COFFEE (Robusta): Export 1.73 mill. MT / $3.69 B
*Production: 1.17 mill. MT
*Export markets: USA, Germany, Japan, Netherland,
CASHEW: Export 0.22 mill. MT / $1.48 B
*Production:
318,000 MT;
*Export markets: USA (33%), Japan, India, Netherland
PEPPER: Export 119,000 MT / $808 M
*Production:
120,400 MT;
*Export markets: USA, India, Pakistan, Mid-East,..
TEA: Export 148,000 MT / $226 M
*Production: 888,600 MT
*Export markets: Indonesia, Russia, Germany, Arab Saudi
COCO production: 1.19 million MT;
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b. FRUITS FOR EXPORT: Export $800 M
- ORANGE, MANDARINE:
700,000 MT
- PINEAPPLE:
533,000 MT
- BANANAS:
1,670,000 MT
- MANGO:
595,800 MT
- GRAPE FRUITS:
417,600 ha
- LONGAN:
616,400 MT
- LITCHI, RAMBUTAN (chom chom):
700,000 MT
Bangkok - 23/5/2013
5.2. Aquatic and seafood processing:
About 250 processing plants (80% in South and Central of Vietnam).
*Main export products
- Frozen Shrimp & prawn:
- Frozen Catfish (Basa & Tra - pangasius)
- Frozen Tuna fish,
- Frozen Cephalopods & Bivalve mollusks
(cuttlefish, squid, octopus, clamps, scallop,…
- Ready-to-cook seafood meals
- Canned seafood
*Largest markets:
JAPAN (31%), USA (25%), EU (10%), ASEAN (7%),
KOREA (6%), China (5%), others (16%).
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6. Main Import Products
Main Import Products
2012
Up from
2011
bill. US$
Total import
114.35
7.1%
1
Machine, equipment, parts
16.03
3%
2
Computers, electronics,
13.10
66.8%
3
Petro gas & Diesel oil
8.89
-10.0%
4
fabrics
7.05
4.7%
5
Steel
5.98
3.4%
6
Phones & cell phones, access.
4.98
82.4%
7
Materials, access. for apparel,
footwear
3.18
7.9%
8
Chemicals
2.78
2.3%
9
Metals other than steel
2.67
-1.1%
10
Chemical products
2.46
2.9%
11
Animal feed
2.42
2.0%
Bangkok - 23/5/2013
7.VIETNAM’S DOMESTIC MARKET
Potential market for domestic sales:
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60% of population are under 35 year old;
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Rising per capital income;
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High rate of FDI in the local marketoriented industries (consumer products,
chemicals, mechanicals, real estates,
building materials…).
Bangkok - 23/5/2013
8. New policy for FDI
- More attention to quality, not to number of registered projects;
- Promote FDI projects by industries/ areas to exploit maximum
potential of country’s variously geographic areas.
- Better licensing approval process
- Better inspection of FDI performances
- Better assessment regarding efficiency, especially for large
projects, in large area of land use, use of minerals and natural
resources and projects with high risks of water/soil/air pollutions;
- Cancelation of FDI licenses for non-performance projects
Bangkok - 23/5/2013
9. Priority sectors for FDI
- High-tech production: high technology and modern equipment,
Bio-tech products, telecom, electronics, clean & green industries;
- Infrastructure (roads, bridges, ports, airports, subways…) under
ODA, BT, BOT;
- Education & training, vocational training: universities, schools
- Health care: hospitals, pharmaceutical productions
- Environment: - industrial water treatment, waste and rubbish
treatment, other environment measures,…
- Supporting/ Auxiliary industry: materials, supplies and spare
parts for textile & garment, footwear, auto,…
- Manufacturing industry: to produce competitive products for
export and domestic consumption
Bangkok - 23/5/2013
10. What to invest
in Vietnam
4 consumption trends :
-Good Growth: Food & beverage, pharmaceutical, education.
-Stable Growth: Telecommunications, household goods, financebanking and health care.
-Weak Growth: Computer - visual equipment, electronic
appliances and equipment, furniture, travel services.
-Flat Group: Automotive, personal care products, entertainments
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11. Opportunities
Vietnam’ FDI attraction!
- Location at the center of rapid development of South East Asia.
- Political stability and Vietnam’s position in the international
arena is more and more enhanced.
- Abundance of natural resources and competitive labor costs
- Very competitive in export of agriculture, aquatic products,
manufacturing products, especially textile, footwear, furniture).
-Investment environment and market economy are improving
and in conformity with international practices.
Bangkok - 23/5/2013
12. Incentives for FDI
>Preferential tax break:
10%, 15%, 20% depends on industrial sectors and geographical areas.
>Reduction and exemption of enterprise income tax:
- Exemption: maximum first 4 years
- Reduction: 50% discount in the next 9 years.
>Import duty exemption:
For equipment, machinery, means of transport, construction materials,…
related to production, which are not available domestically.
>Reduction for rent of land:
Subject to local authorities
and geographical areas.
Bangkok - 23/5/2013
13. VIETNAM’S TRADE WITH MEKONG MARKETS
TT
Countries
TOTAL (BILL.)
EXPORT
2012
IMPORT
Increase %
2012
6.05
6.87
7.9
1 Cambodia
2.82
0.46
7.9
2 Thailand
2.69
5.87
-8.0
3 Laos
0.42
0.43
-6.0
4 Myanmar
0.12
0.11
29.0
-Annual joint trade fairs in Cambodia, Laos, Myanmar
-Annual Vietnam Expo in Hanoi with free booths for CLM
-Thai trade fairs in Vietnam
-Seminars on various subjects in Mekong countries
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14.1.Vietnam – Korea trade relation
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Vietnam-Korea trade relations have steadily grown since the
two countries set up diplomatic relations in 1992.
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Vietnam-Korea signed the Treaty on Investment Protection
and Encouragement and the Treaty on double-tax avoidance;
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Korea signed the agreement on ASEAN-Korea;
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Korea’s FDI is ranking number 2 in Vietnam with 2600 projects
registered at US$25 billion.
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Korea’s investment focuses in sectors: industrial production,
industrial park infrastructure, real estate, manufacturing
industries (textile & garment, footwear, mechanicals…)
Bangkok - 23/5/2013
14.2.Vietnam – Korea trade relation
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Developing a strong and in-depth friendship in politic,
economic, diplomatic, cultural, tourism and labor
cooperation.
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The Government of Vietnam is willing to share and
solve the problems and to encourage Korean
enterprises to expand investment and business in
Vietnam, especially in infrastructures, ports, energy,
urban development, high-tech industrial production,
auxiliary industries, agriculture.
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VIETRADE – The Vietnam Trade Promotion Agency
(Ministry of Industry and Trade) is in collaboration
with Korean trade promotion organizations such as
ASEAN-Korean center (AKC), KOTRA, KITA, KOIMA,
for organizing many business matching programs and
seminars for Vietnamese and Korean companies.
Bangkok - 23/5/2013
Bangkok - 23/5/2013