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Vietnam – Fast Growing Country

Speaker: Tran Hai Anh (MSc., MBA) Innovation Norway

Content

1. Vietnam Overview

2. Overview of Industries

Vietnam Overview

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Fast Growing and Dynamic Nation

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Mainland Area: 331.690 km2 Political regime: Socialist Republic of Vietnam

The Communist party is leading party. Population: 90.5 million Labor force: 50.137 million Currency: DONG (VND)

1US$ = 22,340 VND 1 NOK= 2,655 VND)

GDP growth rate: 6.0% (2014) 6.2% (forecasted 2015)

National special cities: Hanoi - the capital Hochiminh city – the center of business and finance

National cities: Hai Phong, Da Nang, Can Tho Labor cost Minimum salary for workers in Hanoi USD 145/month

Minimum salary for workers in Hochiminh city USD 149/month

Powerful Agriculture Nation

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1st world pepper exporter.

1st world catfish exporter.

2nd world coffee exporter.

2nd world rice exporter.

2nd world cashew exporter.

2nd world cassava exporter.

5th world tee exporter.

Powerful Manufacturing Nation

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3rd world footwear and handbag exporter.

5th world garment exporter.

6th world furniture exporter. 10th world electronic device exporter

(78% growing rate p.a.).

1995

2002

ASEAN – China

2006

ASEAN – South Korea

2008

ASEAN – Japan

2009

Vietnam – Japan FTA

Vietnam –Australia/NZ

ASEAN – India

2010

Vietnam starts TTP negotiation

2011

Vietnam – Chile

2015

Vietnam – EU FTA

Vietnam – Korea FTA

Basically finishes TTP Negotiation

Vietnam – EFTA

TTP 2016

FTAs and Favorable Taxes

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EU eliminates 85.6 percent of tariff lines, equivalent to 70.3% of Vietnamese export value to the EU.

Vietnam eliminate tax for 50% pharmaceutical products, 100% of food and textile, 50% of chemical products imported from EU.

More tax exemptions after 03, 05 and 07 years.

Simplified Investment Certificate Process

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Direct Investment: Foreign Direct Investment; Joint Venture; M&A; Contractual Forms; Representative Office; foreign constructor; and Branch.

Indirect Investment: via stock market.

Form of Enterprises: Ltc, JS, Partnership, and Corporation Group.

To-Do List for Investors

Local law firm can help with legal issues. Local consultant can help with relevant report. Land are expensive.

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Overview of Industry

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Diversified Mineral Resources

Moderated Metallurgy Sector

Low Local Content in Automobile Sector

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Dominated by FDI firms.

5%-10% local content for cars and 95% of local contents for motorbikes.

Week supporting industry.

Under pressure of reduce cost.

Need more efforts for Quality Control.

Imported foods for Domestic Consumption

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11.4 % forecasted growing rate within 2014-2018.

Main import suppliers: China, Australia/New Zealand, Argentina, EU and USA.

Agriculture Waste To Money

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Rice husk to energy

Rice husk’s ash to silica-fume.

Rice husk to fire-proof paints.

Coconut shell to substrates for horticulture.

Catfish’s skill to collagen.

Wood chip to productive steam.

Construction Material Import and Export

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Export artificial stones to EU/USA/Australia and import silicon powder for making artificial stone

Import timber and high-end ceramic interior.

Import Natural Stones.

Import high-end paints.

Exporting Cement.

Photo: http://vicostone.com/our-product/vicostone-quartz-surfaces/

Thank you for your attention.

Futher Contact: Tran Hai Anh Senior Market Innovation Norway Hanoi Email: Tranh@innovationnorway.no Cell phone: +84903463318

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References

• http://vietnamembassy-usa.org/basic-page/

• DFDL Vietnam Investment Guidelines 204

• http://www.mutrap.org.vn/

• http://evbn.org/

• www.vcci.com.vn

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