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Presentation on global business(relation between india and vietnam ....manjit


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  • 1. Presented by-Manjit GauravReg no- 7005
  • 2. Vietnam, officially the Socialist Republic of Vietnam isthe easternmost country on the Indochina Peninsulain Southeast Asia. With an estimated 87.8 millioninhabitants as of 2011, it is the worlds 13th-most-populous country, and the eighth-most-populousAsian country. The name Vietnam translates as"South Viet", and was officially adopted in 1945. Thecountry is bordered by China to the north, Laos to thenorthwest, Cambodia to the southwest, and the SouthChina Sea to the east. Its capital city has been Hanoisince the reunification of North and South Vietnam in1976.
  • 3.  India officially the Republic of India (Bhārat Gaṇarājya), is a country in South Asia. It is the seventh- largest country by area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the south- west, and the Bay of Bengal on the south-east, it shares land borders with Pakistan to the west; China, Nepal, and Bhutan to the north-east; and Burma and Bangladesh to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives; in addition, Indias Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia.
  • 4. POPULATION DEMOGRAPHICS Vietnam IndiaPopulation 91,519,289 (July 2011 est.) 1,205,073,612 (July 2012 est.)Age 0-14 years: 25.2% 0-14 years: 29.7% 15-64 years: 69.3% 15-64 years: 64.9% 65 years and over: 5.5% 65 years and over: 5.5%Birth rate 16.83 births/1,000 20.6 births/1,000 population population (2011 est.) (2011 est.)Death rate 5.95 deaths/1,000 7.43 deaths/1,000 population (July 2011 est.) population (July 2011 est.)
  • 5. CULTURAL ISSUES Vietnam IndiaReligions Buddhist 9.3%, Catholic 6.7%, Hoa Hindu 80.5%, Muslim 13.4%, Hao 1.5%, Cao Dai 1.1%, Christian 2.3%, Sikh 1.9%, other Protestant 0.5%, Muslim 0.1%, 1.8%, unspecified 0.1% none 80.8%Languages Vietnamese (official), English Hindi 41%, Bengali 8.1%, Telugu (increasingly favored as a second 7.2%, Marathi 7%, Tamil 5.9%, language), some French, Urdu 5%, Gujarati 4.5%, Kannada Chinese, and Khmer, mountain 3.7%, Malayalam 3.2%, Oriya 3.2%, area languages (Mon-Khmer and Punjabi 2.8%, Assamese 1.3%, Malayo-Polynesian) Maithili 1.2%, other 5.9%Literacy definition: age 15 and over can definition: age 15 and over can read and write read and write total population: 94% total population: 61% male: 96.1% male: 73.4% female: 92% (2002 est.) female: 47.8%
  • 6. Etiquette and Customs in VietnamVietnamese society has a fair amount of public etiquette. Thefollowing are some of the more common points:. Avoid public displays of affection with a member of the oppositesex.. Do not touch someones head.. Pass items with both hands.. Do not point with your finger - use your hand.. Do not stand with your hands on your hips.. Do not cross your arms on your chest.. Do not pass anything over someones head.. Do not touch anyone on the shoulder.. Do not touch a member of the opposite sex.. Shorts should only be worn at the beach.
  • 7. Political issues India VietnamCapital city New Delhi HanoiPrime minister Manmohan singh DictatorshipGovernment type Communist state federal republic Vietnam India USD Dong(vnd) Rupee dollar 1.00 USD=20,833.33 VND US Dollar Vietnamese Dong ↔ 1 USD = 20,833.33 VND 1 VND = 0.0000480000 USD
  • 8. VIETNAM’S GOVERNMENT HAS PUT IN PLACE A SERIES ON INCENTIVES TOATTRACT AND ENCOURAGE THE KIND OF FOREIGN DIRECT INVESTMENT MOSTLIKELY TO DRIVE THE COUNTRY’S FUTURE DEVELOPMENT. INVESTMENT INCENTIVES Incentives to encourage investment in Vietnam come in varying forms, including: preferential corporate income tax rates exemption from, or reduction of, corporate income tax import duty exemptions exemption from taxes on royalties exemption from, or reduction of, land use or land rental fees privileges awarded to build-operate-transfer (BOT), build-transfer- operate (BTO) and build-transfer (BT) projects and projects in special economic zones. Investments in geographical areas of Vietnam that face difficult socio- economic conditions are more likely to qualify for some of the above investment incentives.
  • 9. SECTORS TARGETED BY INCENTIVESTHE VIETNAMESE GOVERNMENT HAS IDENTIFIED STRATEGIC SECTORS THATQUALIFY FOR ITS INVESTMENT INCENTIVES. TYPICALLY, INVESTMENTS THATINVOLVE A HIGHER LEVEL OF VALUE-ADDING AND PROCESSING, EMPLOY A LOTOF PEOPLE, OR FOCUS ON MUCH-NEEDED INFRASTRUCTURE, SKILLS ORTECHNOLOGY ARE THOSE MOST LIKELY TO QUALIFY INVESTMENT GUARANTEES In order to encourage investment, the Vietnamese Government provides investment guarantees, including the commitment that investors’ assets will not be nationalized or confiscated; that intellectual property rights will be protected; that capital and assets can be remitted abroad and that investors will be protected in the event of changes in law or policies.
  • 10. KEY SECTORS TARGETED FORINVESTMENT INCENTIVES-1Production of new materials or new energy2. Production of high-tech, bio-technology or info-technology products3. Production of manufactured mechanical products4. Cultivation and processing of agricultural, forestry and aquatic products (egmaking salt)5. Production of man made strains, new seeds and breeds of animalsUse of, or research and development on, high technology or modern technology6. Protection of ecological environment7. Employment of large numbers of employees8. Construction and development on infrastructure or important projects9. Development of facilities in educational, training, medical, gymnastic andsports sectors10.Development of traditional trades
  • 11. Balance of payments (Vietnam) Exports: $95.32 billion (2011 est.) $72.19 billion (2010 est.) Imports (Billion $)Country 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Vietnam 11.5 14.3 15.1 16.5 19.88 23.72 32.23 39.92 61.6 57.1 72.03 95.32 Exports - partners: US 18%, China 11%, Japan 11%, Germany 3.7% (2011 est.) Exports - commodities: clothes, shoes, marine products, crude oil, electronics, wooden products, rice, machinery Imports: $97.83 billion (2011 est.) $77.34 billion (2010 est.)
  • 12. Imports (Billion $)Country 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Vietnam 11.6 15.2 15.3 16.8 22.5 26.31 36.88 39.16 77.61 65.4 84.3 97.83
  • 13. Vietnam has a large market, skilled workers and a good investmentenvironment while still maintaining lower production costs due to lowerages then in India or Thailand.One additional reason why Indian firms are getting more interested inVietnam is the India- ASEAN (Association of Southeastern AsianNations) Free Trade Agreement, decided on August 13, 2009 in gangkokand effective from January 1, 2010.The Vietnam-India bilateral trade relationship was worth US$2.75million last year. In January and February 2011 the bilateral trade valuestood at =S$643 million and it seems to be rising. Food processingThe government of Vietnam is implementing several programs toincrease the production of rice, corn and tapioca, and enhance foodprocessing technologies.•The country has already become a food product processing hub withan annual growth rate of 20-30%.•The changing food habits of locals, who tend to use preliminarily-treated foods for making meals, are increasing the demand forprocessed foods.
  • 14. Manufacturing:
  • 15. India & VietnamVietnam is helping strengthen India’s relations with the ASEANcountriesTies are expanding rapidly and in practically all areas includingtrade, investments, energy, security, human resourcedevelopment, capacity-building, IT, science and technology,culture .Vietnam particularly seeks Indian investments in sectors likehigh technology, IT, biotechnology, energy including renewableenergy, iron and steel, auto components, pharmaceuticals,medical equipment, food processing, and other areas.Earlier this year with effect from 1 January, India haveextended the visa-on-arrival facility to Vietnam.The total Indian investment in Vietnam is over 400 milliondollarsONGC Videsh has been present in Vietnam for quite sometime, including in a major joint venture for offshore oil andnatural gas exploration. They are in the process of furtherexpanding their cooperation and operations in Vietnam