Transcript VIETNAM – Emerging Land for Investment

Viet Nam – Why now?
Commercial Section
Embassy of Viet Nam in Italy
Contents
• Overview of Viet Nam economy
• Bilateral economic and trade links
• Favourable environment for investors
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Overview of Viet Nam
economy
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Viet Nam at a glance
Geography
- Centre of Southeast Asia
- Area: 331,698 sq. km
- Coastline: 3,260 km
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Society
- Population: 85 mil.
- Labor force: 45 mil.
- Unemployment rate: 2%
- Literacy rate: >90%
Viet Nam economy /i
• Substantial progress was achieved
from 1986
• GDP growth averaged 7-8% per
year even against the background
of global recession.
• Particularly, the growth of 2007 was
8.4%
• Membership in ASEAN,
APEC
• Joined WTO since 2007
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ASEM,
“Every 10
years,
Viet Nam
has built
another
economy.”
Viet Nam economy /ii
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•
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Investment (gross fixed): 32.6 % of GDP (2006)
Inflation rate (consumer prices): 7.5% (2006)
GDP: $222 billion
GDP per capita: $1,000
GDP - composition by sector:
• agriculture: 19.4%
• industry: 42.3%
• services: 38.3%
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Infrastructure
Highways: 86,327km
Railways: 3,219 km
International airports: 3
International seaports: 11
139 industrial zones with area
of 29,392 ha
• 8 economic zones with area
of 323,940 ha
• Electricity output: 53.8 billion
kWh
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•
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•
•
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FDI flow in Viet Nam 1986-2006
FDI By Sector
12000
US$ mil.
10000
10,200
8000
5%
2%
1%
5%
6%
3%
1%
6%
7%
6000
4000
4,100
2000
Investment inflows Disbursement
200
5
200
6
200
3
200
4
200
1
200
2
199
9
200
0
199
7
199
8
199
5
199
6
199
3
199
4
198
8 -1
99
0
199
1
199
2
0
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2% 3%
7%
16%
31%
5%
Oil & gas
Light industry
Heavy industry
Food industry
Construction
Agriculture, forestry
Aquaculture
Transport, ICT
Hotel, tourism
Banking, finance
Culture, health, education
New urban area construction
Office, apartment construction
IZs infra contruction
Other service
Trade
• Exports: $49 billion (2007)
• Annual growth 20%
• Main exports: crude oil, marine products, rice,
garments, footwears, furniture, coffee, rubber,
tea, electronics …
• Trading partners: US, EU, Japan, China,
Singapore, Korea, Chinese Taipei, ...
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Trade
• Imports: $62 billion (2007)
• Main imports: machinery and
equipment,
petroleum
products,
fertilizer,
steel
products, raw cotton, grain,
vehicles…
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Bilateral economic
links
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Trade with Italy
• Export from Vietnam to Italy
• 695 million euro (13.8% growth)
• Main export items: foot wears, marine products,
coffee bean, garments, furniture, electronics, natural
rubber, tourist items, plastic items, cashew nuts…
• Import from Italy to Vietnam
• 515 million euro (70.7% growth)
• Mechanical and electrical machinery,
leather…
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vehicles,
Investment from Italy to Viet Nam
• Top investors in Viet Nam
• Chinese Taipei, Korea, Singapore, Japan, US
• Italy has 21 projects in effect, registered capital:
US$55.7 million, in which:
• Heavy industries: 17 projects, US$40 mil.
• Services: 3 projects, US$2.2 mil.
• Agriculture: 1 project, US$13.5 mil.
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Investment from Italy to Viet Nam
• Forms of investment:
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100% foreign-invested company: 13 projects
Joint venture: 7 projects
BCC: 1 project
Latest project: Piaggio
• Be present in 12 provinces (Binh Duong, Quang
Nam, Ha Noi, Vinh Phuc, …)
• Seeking opportunities in energy, environment,
infrastructure, metallurgy, telecoms, education,
transportation, etc.
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Favourable
environment for
investors
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Why to invest in Viet Nam?
• Socio-political stability
• Continuous economic growth
• Abundant human resources
• High level of literacy, IT-savvy
• Labourious, hard-working
• New generation of corporate leaders
• Low cost of materials and inputs
• Electricity, water, telecoms, air freight
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Why to invest in Viet Nam?
• Trade regime becomes more open
transparent following WTO entrance
• Favorable FDI policies
and
• Simplification of investment procedures
• Compliance with international practices
• Convenient
industries
for
outsource
and
• Located at the heart of Southeast Asia
• Easily reachable by air, sea or land
• Enjoy preferential tariffs by FTAs
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processing
WTO concessions on goods
• Bound rates for 10,600 tariff lines reduced from
17.4% to 13.4% phased over 5-7 years since
2007.
• Largest reduction applied to garment & textile,
aquatic products, wood & paper, manufacturing,
electrical and electronic machinery & equipment.
• Join Free Agreements by sector for IT, garment &
textile, medical equipment, airplane equipment,
chemical, construction machine.
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WTO commitments on services
• Open in 11 out of 12 service sectors (or 110 out
of 115 sub-sectors)
• trade, post & telecommunications, construction,
health, distribution, education, insurance, tourism,
environment, banking & finance, entertainment,
transport etc.
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Effects of WTO on investment
• TRIMS: Investors shall NOT be forced to
undertake any of the following requirements:
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Localization
Export or import ratio
Giving preferences to purchase domestic goods and services
Achieving a certain ratio in R&D
Selling goods and services at a certain location
• Duties reduction promotes trade in goods and
services between Vietnam and regional countries
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Preferential sectors
• New material, high-tech products, biotechnology,
information
technology
and
mechanical manufacturing
• Agricultural, forestry and aquaculture
• Labor intensive industries
• Development of infrastructure facilities and
important industrial large-scale projects
• Education, training, health, sports, culture
• Development of traditional crafts and industries
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IZs, EPZs, EZs
• 139 IZs and EPZs and 8 Economic Zones
• In 2006, 356 projects with registered capital of
US$4.4 billion
• Favourable incentives
• One-stop administrative procedures
• Better infrastructure facilities
• Custom services included
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What can be done with us?
• Provide general and specific info about Viet Nam
• Database of laws and regulations
• Assist in applying for RO, branch and investment
licenses
• Advise on doing business in Viet Nam
• Help in seeking an appropriate trading or
investment partner
• Support dispute mediation
• Facilitate visa processing
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Conclusion
“In the WTO, when
people work hard,
things happen - and
Viet Nam is a good
example of that.”
Pascal Lamy
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How to reach us?
• Commercial Office, Embassy of Viet Nam in Italy
Address: Via Po 22, Roma 00198
Tel: (+39) 06 841 3913
Fax: (+39) 06 841 4072
E-mail: [email protected] or [email protected]
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