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AGENDA:
• WHY INVESTING IN VIETNAM?
• VIETNAM’S RECENT INTEGRATION TO REGIONAL
AND INTERNATIONAL ECONOMY
• INVESTMENT IN CHEMICAL SECTOR – PRODUCTION
AND DISTRIBUTION
• CONCLUSION
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Vietnam’s Free Trade Agreements
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ASEAN - China
ASEAN - Korea
ATIGA
ASEAN - India
ASEAN – Australia –
New Zealand
ASEAN - Japan
RCEP
Vietnam - Chile
Vietnam - Korea
Vietnam – Eurasian
Economic Union
Vietnam - EU
Vietnam - EFTA
TPP
ASEAN – Hong Kong
Vietnam - Israel
Vietnam - Japan
Signed
In negotiation/
Negotiation concluded
In negotiation
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Without TPP – What’s next?
• TPP-11? How to implement it? (implement
it as it is, remove the part related to the US or
re-negotiate the whole agreement? Not yet decided!)
• Trade Facilitation Agreement
• ASEAN Economic Community (covering 620 million people
of 10 ASEAN countries)
• EU – Vietnam Free Trade Agreement
• Regional Comprehensive Economic Partnership (RCEP)
(covering 3 billion people in 16 countries and 28% of global
trade)
• Bilateral trade agreement with the United States?8
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WTO ANALYSIS OF LIBERALIZATION
OF MARKET ACCESS
Vietnam ties in first place with Singapore
• *Typical restrictions: number of opened sectors, JV
requirement, limits on foreign-owned shares, permission
requirement
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Country Limitation of
market access*
Country Limitation of
market access*
Malaysia medium Myanmar high
Indonesia medium Cambodia medium
Philippines medium Laos medium
Singapore low India high
Thailand medium China medium
Brunei high Vietnam low
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Overview on chemical industry in Vietnam
• Average growth of the industry during 2010-2014 is 19.25%
• In 2014, production value of the sector contributes 6.5% to Vietnam’s
GDP.
• Forecast: 17.49% growth rate during 2014-2018
• Some characteristics of the chemical industry in Vietnam:
– Weak supply of input materials
– Poor technical system and machines low productivity and added value
– Local companies are facing fierce competition from MNCs with better
financial capacity, technology and marketing plans
• Some main players:
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…but it is a conditional business sector
• Are the chemicals included in the list of chemicals
whose production and trade in industrial sector are
conditional?
• Are the chemicals included in the list of chemicals
whose production and trade in industrial sector are
restricted?
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A few conditions:
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Technical (Deputy) Director
having bachelor degree or
above in chemicals
Warehouses meeting
safety conditions
Suitable means of
transport
A baby permit (in addition to the
Investment Registration Certificate and
Enterprise Registration Certificate)
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DUANE MORRIS VIETNAM LLC
Thank you very much!
HANOI OFFICE HO CHI MINH CITY OFFICE
Pacific Place, Unit V1307/08, 13th Floor, Suite 1503/04, Saigon Tower
83B Ly Thuong Kiet, Hoan Kiem District 29 Le Duan Street, District 1
Hanoi, Vietnam Ho Chi Minh City, Vietnam
Tel.: +84 4 39462200 Tel.: +84 8 3824 0240
Fax: +84 4 3946 1311 Fax: +84 8 3824 0241
Contact email:
omassmann@duanemorris.com
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