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8/3/2019 1_Rodney
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Overview of Vietnam and the KeyOverview of Vietnam and the KeyEmerging MarketsEmerging Markets
Presented by: Rodney Sim
General ManagerT A Management Pte Ltd
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About T A ManagementAbout T A Management
Project Management and Market Consultancy. Priority focus in Mekong Region countries of Vietnam,
Cambodia and Myanmar. Serve Vietnamese Clients in their projects with
Singapore partners. Conduct market studies/consultancy for Singapore-
based Clients. Inland Containers Depot Opportunities in Second-tier Provinces
of Vietnam, Containers Depot Association of Singapore. Healthcare opportunities in Vietnam, International Enterprise
Singapore. Education opportunities in Vietnam, International Enterprise
Singapore
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Outline of SessionOutline of Session Overview of Vietnam and significant recent
developments
Emerging cities and provinces in NorthernVietnam
Emerging cities and provinces of SouthernVietnam
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OVERVIEW OF VIETNAMOVERVIEW OF VIETNAM
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Economic Growth of VietnamEconomic Growth of Vietnam
Source: Asia-Pacific Economic Cooperation (APEC)
Economic Growth of Selected Countries in Asia (2003-2005)
2.9
0.5 0.4
10 10.1 10.2
4.8 5.15.65.5
7.2
4.9
6.2
5
2.9
8.7
6.47
6.2
4.5
7.37.8
8.4
5.2
0
2
4
6
8
10
12
2003 2004 2005
Year
G r o w t h i n P e r c e n t a g e
Brunei Darussalam China Indonesia Malaysia Philippines Singapore Thailand Vietnam
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GDP by Sector ContributionGDP by Sector Contribution
Manufacturing20.70%
Mining and quarrying10.52%
Hotels and restaurants3.50%
Financial activities1.80%
Transport, storage andcommunications
4.37%
Education and training3.22%
Electricity, gas and watersupply3.45%
Construction6.36%
Wholesale and retail trade13.58%
Fishing3.86%
Forestry1.20%
Agriculture15.83%
Others2.61%
Government services5.00%
Real estate and businessactivities4.01%
Source: General Statistics Office, Vietnam
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VietnamVietnam s Export & Import Trendss Export & Import Trends
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Cargo Throughput (Import & Export) ofCargo Throughput (Import & Export) of
Northern & Southern PortsNorthern & Southern Ports
Source: Vietnam Seaport Association
Import and Export Cargo Throughput Trendsin Northern and Southern Vietnam (2001-2005)
NorthNorthNorthNorthNorth South South South South South0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2001 2002 2003 2004 2005
Year
I m p o r t a n
d E x p o r t
C a r g o T
h r o u g h p u
t
( i n
' 0 0 0 m e t r i c
t o n n e s
)
14,987
27,221
24,000
29,972
35,267
13,786
18,234
21,61623,704
10,505
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Significant TrendsSignificant Trends
Accession to WTO & steadyeconomic growth.
Increasing importance &global recognition of Vietnamas a location formanufacturing activities.
Growth of Hanoi & HCMC ashub cities for services in North& South respectively,including healthcare andeducation services.
Development of industrialactivities outside Hanoi &HCMC.
Vietnam government reducedGDP growth target to 7%.
Annual inflation hits more than20% in April 2008.
Commercial banks are limiting
loans to individuals andenterprises.
Some factories face workers
strike.
Standard & Poor cut outlookon Vietnams sovereign rating
from stable to negative.
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Northern VietnamNorthern Vietnam
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GDP ComparisonGDP Comparison -- Northern VietnamNorthern Vietnam
Source: Hai Duong Statistical Yearbook 2005, GSO Vietnam
Comparison of GDPs among Selected Provinces inNorthern Vietnam (at current prices) (2005)
4,395.38
1,302.94
520.94 597.81 853.44 514.88948.44
663.94300.94 264.69
630.88187.50
-
1,000
2,000
3,000
4,000
5,000
Hanoi Hai
Phong
Bac Ninh Vinh
Phuc
Hai
Duong
Hung
Yen
Ha Tay Thai
Binh
Ninh
Binh
Ha Nam Nam
Dinh
Lao Cai
Province
U S
$ m i l l i o n
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GDP Per Capita ComparisonGDP Per Capita Comparison Northern VietnamNorthern Vietnam
Source: Hai Duong Statistical Yearbook 2005, GSO Vietnam
Comparison of GDP Per Capita among Selected Provincesin Northern Vietnam (at current prices) (Year 2005)
1381
730
522 513 499 456
376 359 329 321 322 312.5
0
200
400
600
800
1000
1200
1400
1600
Hanoi HaiPhong Bac Ninh VinhPhuc HaiDuong HungYen Ha Tay ThaiBinh NinhBinh Ha Nam NamDinh Lao Cai
Province
G D P
P e r C a p i t a
i n U S $
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HANOIHANOICITYCITY
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Hanoi CityHanoi City s Key Indicatorss Key IndicatorsIndicator Value
Economic structure Primary: 1.7% Secondary: 40.8% Tertiary: 57.5%
GDP at current prices (year 2005) US$4.4 billion.
Economic growth (estimated) 11.6%Registered FDI (from 1998 to 2005) US$12 billion
Key foreign investors origin China Japan Taiwan
Key products Electrical products Electronics Aluminum products
Population size (year 2006) 4 million
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Significant Development TrendsSignificant Development Trends
Highest concentration of industries in NorthernVietnam, second highest after HCMC.
Rapid development to catch up with HCMC.
Entrenched hub for business services in
Northern Vietnam due to its political importanceand strategic location.
Important consumers market due to increasingaffluence of the urban population.
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BAC NINHBAC NINH
PROVINCEPROVINCE Province has 12
industrial parks.
Third Vietnam-Singapore
Industrial Park(VSIP).
Prominent
manufacturersinclude Canon andFujitsu.
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Bac Ninh ProvinceBac Ninh Province s Key Indicatorss Key IndicatorsIndicator Value
Economic structure Primary: 25.7% Secondary: 47.1% Tertiary: 27.2%
GDP at current prices (year 2005) US$520.94 million
Economic growth (estimated) 14.5%
Registered FDI (from 1998 to 2005) US$290.7 million
Key foreign investors origin Japan Korea Taiwan
Key products Automotive components & parts Electronics & electrical components Textiles & garments
Population size (year 2006) 1 million people
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Significant Development TrendsSignificant Development Trends
Province developing as an important manufacturing &service centre in Northern Vietnam.
Becoming a centre of distribution of goods from Guangxi,China e.g. Unilever.
A location for the development of urban-industrial park
e.g. Foxconn, VSIP, Orix. Province has plan to develop an Inland Containers Depot
& to establish the province as a trans-shipment hub.
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HAI DUONGHAI DUONG
PROVINCEPROVINCE Industrial province nearto the ports in HaiPhong & Quang Ninh.
Main imports
Leather
Fabrics Chemical
Main exports
Footwear Garment & clothing
Frozen meat
Pickled cucumber
Cakes (green bean)
E i I di tE i I di t E i St tE i St t
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Economic IndicatorEconomic Indicator Economic StructureEconomic Structure
Source: Hai Duong Statistical Yearbook 2005
4 0
. 6
3 4
. 9
2 4
. 5
4 1
. 8
3 3
. 9
2 4
. 3
3 5
. 4
3 6
. 6
2 8
3 5
. 8
3 5
. 7
2 8
. 5
3 6
. 8
3 5
2 8
. 2
3 4
. 8
3 7
. 2
2 8
3 3
. 4
3 7
. 8
2 8
. 8
3 2
3 9
. 6
2 8
. 4
3 0
4 1
. 5
2 8
. 5
2 8
. 3
4 2
. 4
2 9
. 3
2 7
. 2
4 3
. 3
2 9
. 5
0%
20%
40%
60%
80%
100%
P e r c e n t a g e
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
Changes in Hai Duong Province's Economic Structure(1995 - 2005)
Primary Sector Secondary Sector Tertiary Sector
GDP of US$853 million in 2005
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Foreign Direct InvestmentsForeign Direct Investments
Hai Duong Province's Source of Foreign Investment(Year 2005)
Taiwan54.08
United States20.45%
Others4.00%
China2.21%Australia
2.26%
Korea5.93
Japan2.29
Hong Kong
3.53%
Singapore2.11%
United Kingdom2.07% Canada
1.06%
Registered FDI of US$1.6billion as at May 2007.
Types of industries:
Garment & footwear
Electronics
Agro-processing
Automotive-related
Leading Enterprises:
Ford Brother Industries
Sumiden Vietnam
C f D i B i i H i D P iC f D i B i i H i D P i
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Cost of Doing Business in Hai Duong ProvinceCost of Doing Business in Hai Duong Province
Cost item Cost Remarks (if any)
Rental of industrial land (with infrastructure) US$33 to US$41 per m For 49 years Not including value-added tax (VAT)
Power supply- 4.00 am to 6.00 pm- 6.00 pm to 10.00 pm- 10.00 pm to 4.00 am
- US$0.06 per kwh- US$0.11 per kwh- US$0.03 per kwh
Not including VAT
Clean water US$0.30 per m Paid monthly
Average salary of unskilled worker US$50 to US$75 Monthly
Average salary of staff US$70 to US$120 Monthly
Average salary of engineers and technicians US$110 to US$150 Monthly
Average salary of head of department US$230 to US$400 Monthly
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Southern VietnamSouthern Vietnam
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GDP ComparisonGDP Comparison Southern VietnamSouthern Vietnam
Source: Dong Nai Province Statistical Yearbook 2006
Comparison of GDPs Among Selected Provinces in SouthernVietnam (at constant 1994 prices) (2006)
6.23
2.65
1.370.58 0.57 0.52 0.48
0.19
0.00
1.002.00
3.00
4.00
5.00
6.00
7.00
Ho Chi Minh City Ba-Ria-Vung Tau Dong Nai Binh Duong Tien Giang Long An Tay Ninh B
Province
U S $
b i l l i
o n
HO CHIHO CHI
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HO CHIHO CHI
MINH CITYMINH CITY Tertiary sectorcontributed more than
50% of the economicactivities.
A big consumer marketand one that is ofincreasing affluence.
Emerging and growingmiddle class.
A centre for distributionactivities due to itsestablishedinfrastructures.
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Ho Chi Minh CityHo Chi Minh City s Key Indicatorss Key IndicatorsIndicator Value
Economic structure Primary: 1% Secondary: 48%
Tertiary: 51%
GDP at current prices (year 2005) US$11.6 billion
Economic growth (estimated) 12.2%
Registered FDI (from 1998 to 2005) US$15.87 billion
Key foreign investors origin Taiwan South Korea
SingaporeKey products Garment
Footwear Agricultural products Electronics
Population size (year 2006) 7 million
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Significant Development TrendsSignificant Development Trends Expansion of the city & the increase in costs led to need
to shift port activities to Ba Ria-Vung Tau Province.
New international airport will be built in Long ThanhDistrict, Dong Nai Province.
High value manufacturing activities will likely grow with
the investment of US$1 billion by Intel Corporation. Lower value manufacturing moving to other provinces
such as Binh Duong and Dong Nai provinces.
Ba RiaBa Ria --
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Ba RiaBa RiaVung TauVung Tau
PROVINCEPROVINCE 120 km from HCMC. Traditional Oil & Gas
Region. Increasingly
becoming thelocation for domestictourism.
The port and logisticsactivities will be thenext big thing.
FUTURE PORT DEVELOPMENT
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IN SOUTHERN VIETNAM
BINH DUONGBINH DUONG
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BINH DUONGBINH DUONG
PROVINCEPROVINCE 13 km from HMC. An industrial province with
numerous industrial park,including the two Vietnam-Singapore Industrial Parks.
Development of higher end
residential townships suchas the Canary Project bythe Guocoland Group andthe Oasis Project.
A new international classwomen and childrenhospital to be managed byThomson Medical Centre ofSingapore.
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Question &
Answer ?