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Mr Nguyen Ba CuongDeputy Director GeneralForeign Investment
Agency (FIA)Ministry of Planning and Investment (MPI)
INVESTMENT IN VIETNAM
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CONTENTS
I. Why Vietnam
II. FDI Viet Nam
III. Orientation in FDI attraction
IV. Investment Procedure
V. How can FIA support investors
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3
Japanese Companies in
Vietnam
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I. WHY VIETNAM
4
1. Stable Politics – Open Society
2. High and Stable Economic Growth
3. Competitive Production Cost
4. Abundant Human Resource -
Golden Population
5. Potential Market
6. Global Economic Integration
7. Open Policy with attractive
investment incentives
8. Strategic Location
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VIETNAM MACRO ECONOMIC & GDP GROWTH
- GDP 2017 increased by 7.08%, highest rate in the last 10
years
GDP: 241.43 billion USD, GDP per capital: nearly 2,353 USD
Trade volume: 482 billion USD
Vietnam GDP Growth Rate in 10 years
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STRATEGIC LOCATION & GLOBAL PARTNER
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By 2020, Vietnam will take an important role of economic
connection network of 55 partners in which 15 are members of
G-20
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10Signed &
Effective
AFTA
ASEAN - China
ASEAN - Korea
ASEAN - India
ASEAN - Japan
ASEAN –Australia/New Zealand
Vietnam - Chile
Vietnam - Japan
Vietnam - Korea
Vietnam – Eurasian
Economic Union
3End of
negotiation
CPTPP
EVFTA
3Under
negotiation
ASEAN – Hong Kong
RCEP
Vietnam - EFTA
Vietnam - Israel
GLOBAL ECONOMIC INTEGRATION
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CPTPP AGREEMENT
• Vietnam is regard as the most benefited country from CPTPP
• Driving force for institutional reform and investment
environment
• Collaborate, build supply chain to access markets of member
countries
• Come into force since 14 January 2019
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• 14% of GDP (USD 13 trillion)
• 8% of the population (500 million people)
• 15% of global trade
• 98% tax rate abolished
• Commitment to non-traditional sectors
• Numbers of countries consider joining
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EAST – WEST ECONOMIC CORRIDOR
9
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HUMAN RESOURCE
10
50,51 50,6
52,3
53,354,6
Tới T62010
Tới T62011
Tới T62012
Tới T62013
Tới T62014
Lao động từ 15 tuổi (triệu người)
2017
Population Pyramid
Population in working age
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INVESTMENT COST COMPARISON
11Source: JETRO
17
18
50
85
98
0 20 40 60 80 100 120
Ho Chi Minh
Bangkok
Jakarta
Yangon
Bejing
Grade A Office rental (USD/m2/month)
1.4
6.34
0.23
4.91
0 1 2 3 4 5 6 7
Ho Chi Minh
Bangkok
Yangon
Bejing
IZ rental fee (USD/m2/month)
1300
1788
1800
4000
3439
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Ho Chi Minh
Bangkok
Jakarta
Yangon
Bejing
Apartment rental (USD/apt/month)
33
45
33
16
164
0 20 40 60 80 100 120 140 160 180
Ho Chi Minh
Bangkok
Jakarta
Yangon
Bejing
Retail Space Rental (USD/m2/month)
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INVESTMENT COST COMPARISON
12Source: JETRO
Standard Salary (USD)
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CIT & VAT COMPARISON
13
Corporate Income Tax(CIT)
Value Added Tax(VAT)
Cambodia 20% 10%
Indonesia 22% 10%
Laos 24% 10%
Malaysia 24% Sales tax 10%
Myanmar 25%
Philippines 30% 12%
Singapore 17% 7%
Thailand 20% 7%
Vietnam 20% 10%
Source: World Bank and KPMG
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INVESTMENT INCENTIVES
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Corporate income tax(CIT)
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INVESTMENT INCENTIVES
• Machinery, materials, specialized vehicles which imported
to
create fixed assets in encouraged investment projects
• Materials cannot be domestically produced
• Goods imported for the first time which are listed in the
regulations for investment projects
• Materials and components for investment projects in
especially
encouraged investment sectors/or in areas with particularly
difficult socio-economic conditions, are exempted from
import
tax for the first 5 years as from the start of production
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Import Tax Exemption
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INVESTMENT INCENTIVES
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Exemption from land rental fee
Type of ProjectsExemption duration
- In encouraged investment sectors 3 years
- In difficult socio-economic geographical areas 7 years
- In especially difficult socio-economic geographical areas or
in encouraged investment sectors located in difficult
socio-economic geographical areas.
11 years
- In encouraged investment sectors located in especially
difficult socio-economic geographical areas
15 years
- BOT projects, projects in high-tech industrial zones, projects
of education and training, and hospital projects
Whole project life time
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0
500
1.000
1.500
2.000
2.500
3.000
0,00
10,00
20,00
30,00
40,00
50,00
60,00
70,00
80,00
Registered Capital Implemented Capital Number of Project
II. FDI IN VIETNAM
• Total registered capital accumulated to 342.9 billion USD
• Implemented capital accumulated to nearly 191.4 billion
USD
17
2015 2016 2017 2018
Registered capital 24.11 26.89 35.9 35.5
Implemented capital
14.5 15.8 17.5 19.1
Number of projects 2,120 2,613 2,741 3,046
Unit: bil USD
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FDI IN VIETNAM BY SECTORS(Accumulated as of January 2019)
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No. SectorProjec
t
Registered
Capital
(bil USD)
1 Manufacturing and processing industry13.375 198
2 Real estate business 763 57.8
3Production and distribution of
electricity, gas, water, air 119 23.1
4 Lodging and restaurant741 12
5 Construction1.596 10.1
6
Wholesale, retail, repairing services for
automobile, motorcycle and other motor
vehicles 3.606 6.9
7 Logistic and warehouse741 4.97
8Mining
109 4.9
9 Education and training459 4.3
10 Communication and information1894 3.6
Others (9 sectors) 4240 17.1
Total (19) 27643 342.9Source: Foreign Investment Agency
Manufacturing
57.7%Others
Real
State
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FDI IN VIETNAM BY PARTNERS(Accumulated as of February 2019)
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No. Partner
Number of
projects
Registered capital
(bil USD)
1 Korea7529 63.4
2 Japan4020 56.6
3 Singapore2169 47.9
4 Taiwan2602 31.5
5 BVI797 20.9
6 Hong kong1455 20
7 China2212 13.6
8 Malaysia590 12.5
9 Thailand534 10.5
10 Nethlands326 9.4
Other (120countries and territories)
5409 56.6
Total (130 countriesand territories)
27643 342.9Source: Foreign Investment Agency
0
10
20
30
40
50
60
70
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FDI JAPAN IN VIETNAM BY SECTORS(Accumulated as of February
2019)
20Source: Foreign Investment Agency
No. Sector ProjectRegistered
Capital (mil USD)
1Manufacturing and processing industry
1710 36950
2 Real estate business 80 6918
3Electricity, gas, water, air production and distribution
15 5983.3
4Wholesale, retail, repairing services for automobile,
motorcycle
542 1422.3
5 Mining 9 1398.5
6 Construction 144 1233.6
7 Transportation and logistic 113 587.4
8Professional activities, science and technology 577 563
9 ICT 541 459.4
10Lodging and restauration
86 400.7
Other (9 sectors) 248 806.4
Total (19) 4065 56,722.8
Manufacturing andprocessing industry
Real estate business
Electricity, gas, water,air production anddistribution
Wholesale, retail,repairing services forautomobile,
motorcycle
Mining
Construction
Transportation andlogistic
Professional activities,science and technology
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INDUSTRIAL PARKS, ECONOMIC ZONES
324 Industrial parks (220 existing Industrial Parks; 43 FDI
Industrial
Parks)
* VSIP has 8 IZ in Vietnam, attracted 7 bil USD of FDI from 22
nations
17 Coastal Economic zones
03 High Tech Park (06 High Tech Parks by 2030)
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III. ORIENTATION OF FDI ATTRATION
• Projects with high added value, using modern technology,
environmental friendly
• Large-scale projects with highly competitive products, adding
to
the global value chain
• Industrial projects shifting from outsourcing to
production
• Infrastructure development projects (PPP), training of
high
quality human resource, R&D, modern services projects
• Projects of Information technology and biotechnology
supporting agriculture and modern agriculture
• Project of Supporting Industry: electric, textile,
automation,…
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MEASURES TO IMPROVE INVESTMENT ENVIRONMENT
• Implement concrete legal framework, enhance transparency,
policy implementation
• Develop skills supply and productivity
• Improve infrastructure, energy and logistics systems
• Facilitate supporting industry (part and materials)
• Modernize investment promotion
30 years anniversary of FDI in Vietnam 301988 - 2018
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POTENTIAL SECTORS FOR INVESTORS
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Healthcare & Pharmacy
Biotechnology
Processing and supporting industry
Renewable energy
Infrastructure & PPP
ICT & Software
Real estate
Agriculture & Food Processing
Banking & Insurance
M&A Start up
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IV. INVESTMENT PROCEDURES
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FOREIGN INVESTOR
INVESTMENT REGISTRATION CERTIFICATE
(IC)
ENTERPRISE REGISTRATION CERTIFICATE
• 15 working days for general projects
• 40 working days for projects which lease state land
• 60 days for major projects which require Investment
In-Principle Approval from Prime Minister
• According to National Assembly session for projects which must
be submitted to National Assembly
Provincial DPI or Management Board of Industrial Zones
Business registration agency3 working days
START BUSNINESS
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V. FIA’s SUPPORT TO INVESTORS
• Provide information on policies and investment
opportunities in Vietnam
• Arrange business matching with Vietnamese partners,
Industrial - Economic zones
• Coordinate with relevant Ministries, Government Agencies
• Provide guidance on establishing enterprises, constructing
factories, selecting investment locations
• Support to solve difficulties and problems while doing
business in Vietnam
• Other necessary assistance as proposed by investors
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CONTACT US
FOREIGN INVESTMENT AGENCY
6B Hoang Dieu, Ba Dinh, Ha Noi
Tel: 08048461 Fax: 37343769
Website: http://fia.mpi.gov.vn
Email: [email protected]
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Aichi Desk
Tel: +842466639395 Fax: +842437379127
Email: [email protected]
Saitama Desk
Tel: +842466826630 Fax: +842437379127
Email: [email protected]
Kansai Desk
Tel: 842466826650 Fax: +842437379127
Email: [email protected]
Japan Desk
Tel: +842437343766 Fax: +842437343769
Email: [email protected]
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CONTACT US
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In Tokyo:
Embassy of Vietnam in Japan
Mr Nguyen Xuan Tien (Investment Counselor)
Add： Tokyo, 151-0062, Shibuya-ku, Motoyoyogi-cho,
50-11Cellphone: +8190-2437-8668
Tel： (813) 3466-3313Fax： (813) 3466-3391E-mail:
[email protected]
In Osaka:
Consulate General of Vietnam in Osaka, Japan
Mr Nguyen Ngoc Hai (Investment Counsulate)
Add： 4-2-15 Ichinocho Higashi, Sakai-ku, Shakai-shi, Osaka
590-0952, Japan
Tel： +81-72-221-6666 Fax： +81-72-221-6667E-mail:
[email protected]
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USEFUL WEBSITES
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No Website Agency
1 http://www.chinhphu.vn Portal of the Government
2 http://www.mpi.gov.vn Ministry of Planning and Investment
3 http://www.mof.gov.vn Ministry of Finance
4 http://www.moit.gov.vn Ministry of Industry and Trade
5 http://fia.mpi.gov.vn Foreign Investment Agency
6 https://dautunuocngoai.gov.vn National portal on FDI
7 https://dangkykinhdoanh.gov.vnBusiness Registration Management
Agency
8 http://www.gso.gov.vn General Statistics Office
9 http://www.khucongnghiep.com.vn Vietnam Industrial Zone
10 http://muasamcong.mpi.gov.vn E-Procurement system
http://www.chinhphu.vn/http://www.mpi.gov.vn/http://www.mof.gov.vn/http://www.moit.gov.vn/http://fia.mpi.gov.vn/https://dautunuocngoai.gov.vn/http://www.mpi.gov.vn/http://www.gso.gov.vn/http://www.khucongnghiep.com.vn/http://muasamcong.mpi.gov.vn/
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Investing in VIET NAM,
Engaging the World
THANK YOU!
2_FIA_English_only 1p.pdfINVESTMENT IN VIETNAM
