Ministry of planning and investment (MPI)

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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
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Investment climate in Viet Nam

• Vietnam - Key facts at a glance
• Why investing in Vietnam?
• New Law on Investment
• Investment Opportunities to Vietnam and Its
  Central Region

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Investment Climate in Viet Nam
Vietnam Key facts at a glance
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Vietnam in the region
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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 mid-September) 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
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Socio-economic achivements
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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))

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GDP growth rate 1991-2005, 2006-2010
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• Foreign Direct Investment in Vietnam

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• 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

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TOP 10 FOREIGN INVESTORS IN
VIETNAM 1988 May, 2007 (projects in
operation only)
Table 1
Singapore Taiwan Korean Japan Hong Kong
British Holland USA France Cayman

V. Islands
Islands

• Registered Capital
• Disbursement

Source mpi vietnam
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ASEAN FDI TO VIETNAM(1988-2007)
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THAILANDS FDI TO VIETNAM BY OWNERSHIP AND
SECTORSMAY, 2007
Source MPI
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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
aqua-products. - 4 major merchandises imported
from Thailand various kinds of oil and
gasoline, plastic materials, motorbike
spare-parts, equipments and machineries.
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Why Invest in Vietnam?
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Vietnams 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)

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Vietnams Competitive Advantages
- Low cost and skilled labor force for new and
hi-tech - 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.
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Good potential market
Vietnam is currently the worlds 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 marketdespite the fact that a
Tiger costs 3 to 4 four times the local brew
Source The Business Times 15 April 02
Opportunities in Vietnam
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Impressive human resources potential
Vietnams Competitive Advantages
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Competitive Labour CostsMonthly Workers Wages
US/month
Vietnam Central Vietnam
KualaLumpur
Manila
HCMC
Batam
Bangkok
Seoul
Hanoi
Shanghai
Shenyang
Jakarta
Singapore
Shenzhen
Source Japan External Trade Organization, 2003
Vietnams Competitive Advantages
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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.
Source The Business Times 18 October 1001
Vietnams Competitive Advantages
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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 2nd
competitive place for transportation, mechanism
and plastic field (JETRO )
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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
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INVESTMENT CLIMATE IN VIETNAM

• new Law on Investment - open and transparent
• Effect as from1st July, 2006

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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 Vietnams accession
  to WTO
• 3. Variety of forms of investment
• 4. Guarantee

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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

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INTERESTING AND ENCOURAGING SECTORS TO INVEST
IN VIETNAM

• 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

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Central Vietnam

• A growing region for investments

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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.

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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
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INVESTMENT PROMOTION CENTER FOR CENTRAL
VIETNAM (IPCC) Address 102 Quang Trung
Str., Danang city, Vietnam Tel. (84 -
511) 889669 / 889689 Fax (84 - 511)
889679 Email ipccentraldng_at_viettel.vn
Welcome to Vietnam !
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• Thank you!