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Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
Vietnam for foreign investor
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Vietnam for foreign investor

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An analyzing for foreign investors to invest in Vietnam. …

An analyzing for foreign investors to invest in Vietnam.
For more ideas and support for starting up your business in Vietnam / looking for Vietnam supplier base or Vietnam market information, please feel free to contact trang.nt@longhau.com.vn .

Published in: Investor Relations
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  • 1. DOING BUSINESS IN VIETNAM Ms. Trang Nguyen Tel: +84-90 969 5881 Email : trang.nt@longhau.com.vn LONG HAU INDUSTRIAL PARK
  • 2. 2 CONTENT 1. Investor’s concerns 2. Why Vietnam 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park
  • 3. 3 Investor’s Concern Security ProfitabilitySustainable development
  • 4. 4 Investor’s Concerns Landscape of Investment environment:  Political factor  Economic factor  Social factor  Technological factor  Environmental factor  Legal factor
  • 5. 5 CONTENT 1. Investor’s concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park
  • 6. 6 Geography & Topography • Heart of Asia • Proximity to other Southeast Asia’ major markets • The Gate to entry Southeast Asia from the North
  • 7. 7 Geography & Topography
  • 8. 8 Why Vietnam? Vietnam is “one of the most popular destinations for expansion within the ASEAN region” ASEAN Business Outlook Survey AmCham and Singapore Business Federation • Population: 92.47 million – 15th (growth rate: 1.03%) • GDP (PPP, Int’l US$): 336.2 billion – 39th 153.5 billion (real ex rate) • Surface area: 331,210 sq.km – 66th • Commercial hub: Ho Chi Minh City • Long coastline: 3440 km • Neighborhood: Cambodia, China, Laos
  • 9. 9 Why Vietnam? Answer: Vietnamese investment environment benefits investors Political Legal Social Environment Technology Economic
  • 10. 10 Why Vietnam? Political stability Vietnam: ranked 2nd place for Political stability (tied with Hong Kong) by Business Monitor International - Only Communist Party plays the leader role - No threat of civil war, domestic conflict, terrorism (not a single military conflict has arisen since 1979)
  • 11. 11 Why Vietnam? Solid economic growth
  • 12. 12 Why Vietnam? Favorable social environment for business development Population: 92.47 million  15th largest country market with rising middle income class Golden population structure:  60% of population is under 30  66% : working age  1.5 million people will be in working age each year
  • 13. 13 Why Vietnam? Vietnam Population Pyramid (CIA The World Fact Book)
  • 14. 14 Why Vietnam? Social environment (cont): Vietnam Labor Force:  At low cost: VN hourly wage rate 0.81 $ < 1.56$ China
  • 15. 15 Why Vietnam? Social environment (cont): Vietnam Labor Force: More than low cost  Literacy rate: >95%  English: Secondary language  Worker: diligent and eager to learn with a strong desire for great affluence  Increasingly high skilled labor force o 2000-2008: Number of university/college student increased by 120% to 1.66 million student o Around 25,000 students apply for Int’l educational programs each year
  • 16. 16 Why Vietnam? Advantageous environment condition  Pleasant climate  Rich in natural resources  Close to large metropolitan & economic hubs: Hong Kong, Shenzhen and Guangzhou.  Proximity to China: global supply chains, adopt a “China+1” strategy in Vietnam Thailand 2004Philippine 2013
  • 17. 17 Why Vietnam? Technological factor  Sea Port system • Long coastline: 3440 km - convenience sea transport • Port: around 30 commercial ports in around Me Kong River Delta only • $400 trillion master plan for building ports capable of accommodating world largest container ships
  • 18. 18 Why Vietnam? Technological factor (cont) Transportation system:  Waterway: 17,000km  Railway: 2,600km  Road, highway: through out country  Airway: 16 domestic airports, 6 International Airports (Tan Son Nhat, Noi Bai, Long Thanh, Da Nang, Dong Duong, Can Tho)
  • 19. 19 Why Vietnam? Technological factor (cont) Low cost and stable power supply Figure: Comparison of cost between Vietnam and other Asia Countries National Electricity rate for business use (per kWh) Water rate for business use (per cu.m) Gas rate for business use (per cu.m) Vietnam (HCM) (1) 0.04 (2) 0.06 (3) 0.11 0.43 1.28/kg Thailand (Bangkok) 0.15* 0.31-0.53* 0.99/kg Indonesia (Batam) 0.09 1.08* Rate per 1mmBtu: 8.45 Philippines (Manila) 0.14~0.17* 1.84~2.23* 1.57/kg China (Shenzen) 0.04~0.18 0.7 Rate per cu.m: 2.48 Source: “The 23 rd Survey of Investment related cost in Asia and Oceania” by JETRO
  • 20. 20 Why Vietnam? Legal environment: encourage and protect Foreign Investor No tax on dividends remitted to investor’s home country Figure: Comparison of Vietnamese Tax system and other Asian Countries’ National Corporate income tax rate Personal income tax rate (highest rate, %) Valued-added tax (VAT) (standard, %) Viet Nam (HCM) 22% 35% 0% . 5%. 10% Thailan (Bangkok) 20% 35% 7% Indonesia (Batam) 25% 30% 10% Philippine (Manila) 30% 32% 12% China (Shenzhen) 25% 45% 17% Source: “The 23 rd Survey of Investment related cost in Asia and Oceania” by JETRO
  • 21. 21 Why Vietnam? Legal environment: encourage and protect Foreign Investor Figure: Tax incentive for Investment project in Vietnam Source: Vietnam Amended Corporate Income Tax Law 2013 (Ref: 32/2013/QH13) CIT rate Incentive duration CIT exemption holiday 50% reduction period New project included in the list of Encouraged Investment 22% 15 years 2 years from generating taxable revenue 4 years following exemption period New project included in the list of Encouraged Areas 22% 15 years 2 years from generating taxable revenue 4 years New project included in the list of Special Encouraged Investment and/or Special Encouraged Areas 10% 15 years 4 years from generating taxable revenue 9 years
  • 22. 22 Why Vietnam? More than PESTEL?  The openness of Vietnamese Economy  WTO  ASEAN  APEC  TTP: Trans Pacific Partnership: top economies Japan, United State, Singapore…Taiwan and South Korea expressed the interest to joint. • Investors enjoy competitive advantage coming from TPP when invest in Vn • Under TPP, for Vietnam Export Item such as textile, footwear can enjoy very low import tariff to duty free
  • 23. 23 CONTENT 1. Investor’s concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park
  • 24. 24 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% Figure: FDI in VN by Counterpart ( Accumulation as of 31.12.2013) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9%
  • 25. 25 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% 0 2000 4000 6000 8000 10000 12000 14000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 MillionUS$ Implemented capital Average growth rate of implemented capital from 2002-2012: 15%
  • 26. 26 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% Ranked the 2nd popular location for Business Expansion in ASEAN Countries Source: ASEAN Business Outlook Surveys 2014
  • 27. 27 CONTENT 1. Investor’s concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park ?
  • 28. Green Industrial Park with well developed Infrastructure System located in Strategic location facilitates for sustainable development LONG HAU INDUSTRIAL PARK
  • 29. LONG HAU INDUSTRIAL PARK
  • 30. LONG AN PROVINCE Transit point from HCMC to MEKONG DELTA  Belong to Southern economic key points of VN  PCI (Provincial Competitiveness Index): No. 3 of Vietnam & No.1 of the South provinces
  • 31. 31 Long An: 4th FDI attractive Province in VN Long An, HCMC, Dong Nai, Binh Duong account: 56% total of Investment Project, 35 % of total registered capital
  • 32. LONG HAU INDUSTRIAL PARK Ho Chi Minh City People’s Committee Tan Thuan Industrial Promotion Co., Ltd (IPC) Phu My Hung New City Hiep Phuoc IP Hiep Phuoc Urban Area Tan Thuan EPZ Saigon Premium Container Terminal (SPCT) Long Hau Industrial Park Master plan of HCMC Expanding to the South
  • 33. 33 LONG HAU INDUSTRIAL PARK Fact & figures:  Scale: 288 ha, occupancy rate 70%  No of current tenants: 122 (foreign investors: 56)  Most attractive IP in Long An province  One of 3 IPs in Vietnam have environmental certificate ISO 14001: 2004 for the whole IP (Loteco, VSIP 1, Long Hau)
  • 34. 34 Some tenants in Long Hau Industrial park Name Nationality Owner Industry Wahl Vietnam Co.,Ltd USA Wahl Clipper International Holding B.V Hair care machines and products manufacturing World Cat Vietnam Co.,Ltd Germany World Cat Limited Puma complex village: vendor and supplier factory leasing & management Swire Cold Storage Vietnam – Long Hau Branch AUS Swire Cold Storage Vietnam Co.,Ltd Cold storage, logistic and packaging services Vina Astec Co.,Ltd Japan Nissho Astec Co.,Ltd Steel and other metals components for manufacturing and construction Lotte Sea Logistic Company Limited Korea Lotte International Co.,Ltd Warehouse and packaging services Simone Accessories Collection Vietnam Limited Korea Simone Co.,Ltd Suitcase, bag, handbag and other similar items manufacturing MAGIC TECHWIN CO.,LTD Korea Magic LCD Co.,ltd Electronic component, IC & LED frame for high tech devices Dyechem Alliance (VN) Co.,Ltd Singapore Dyechem Alliance (VN) PTE Ltd Manufacturing chemical for textile industry Top cake Joint Venture Company Vietnam Liem Thanh Jsc Superior Stock Farm In Millelium.inc. Confectionary Vina Pride seafood Co.,LTD Russia & Korea Korean Seafood Co., ltd Igor Redkin Seafood processing
  • 35. LONG HAU INDUSTRIAL PARK 70% 12% 3% 2% 2% 2% 2% 2% 2% 3% Japan Korea Singapore France Malaysia Australia Gemany US Spain China Foreign tenants by origin 23 19% 18 15% 18 15% 16 13% 14 12% 9 7% 9 7% 5 4% 5 4% 5 4% Mechanics Food Construction material Fashion Logistics Machinery Chemical Packaging Consumption Others Foreign tenants by industry
  • 36. 36 LONG HAU INDUSTRIAL PARK Location: On the North South main Parkway of HCMC 12 km 19 km 3 km 30 km
  • 37. Wastewater treatment plant Water supply plant Dormitory Supermarket Hospital New Ready Built Factory project Fire station Customs office Transformer substation 110/22 KV Residential area Ready Built Factory LONG HAU INDUSTRIAL PARK Fully equipped infrastructure system
  • 38. 38 Why Long Hau IP? Saving time Saving cost Sustainable development
  • 39. 39 Long Hau Industrial Park Long Hau IP Short travelling time to HCMC and seaports  Labor force abundant for both high skilled and technician people and ordinary workers  Established Infrastructure 15 days for Business Certificate  Strong support from Long An province Saving Time in transportation, recruitment, business entry…
  • 40. 40 Long Hau Industrial Park Saving Cost  Free: • Legal support for start up business • Worker Recruitment  Low cost: • Logistic cost • Custom office inside IP • Virtual office, Outsourcing service : Accountant, HR service , Reception • Labor minimum salary in Long Hau IP is lower than HCMC, Dong Nai, Binh Duong, Ba ria - Vung tau • Construction Project management
  • 41. 41 Saving time & Cost KCN To Phú Mỹ Hưng (km- miniute) Cát Lái Port Km - minute SPCT Port Tân Sơn Nhất Airport Land Price RBF USD Month/ 1 m2 Tân Thuận 7 km - 15’ 11 – 20’ 20 – 35’ 20 – 45’ 250 / 30 years 6 VSIP I 42 km - 90’ 30 – 60’ 42 – 90’ 42 – 100’ 90 / 35 years 4.5 AMATA 40 km – 80’ 35 – 70’ 52 – 90’ 52 – 100’ 85 / 37 years 4.5 Long Hậu 12 km - 25’ 25 – 35’ 3 – 10’ 26 – 55’ 105/ 47 years 4 – 5 Long Hau – Hoà Bình 35 Km – 35’ 45 – 60’ 45 – 60’ 39 – 60’ 55 / 47 Years 3.5 - 4 HCMC Binh Duong Dong Nai
  • 42. 42 Sustainable Development • Save the environment : ISO 14001 : 2004 • Customer Service ( Japanese, English, Chinese, Korean) : ISO 9001: 2008 • Monthly meeting with investors to improve customer services • Human resource focusing IP for customers : – Dormitory – Convenience Store – Kindergarten – Leisure Service – Language Center
  • 43. 43 Our Customers
  • 44. 44 Long Hau Corporation Thank You!

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