INVESTMENT environments IN VIETNAM

Transcription

1 VIETNAM The Economic and Cultural Office in Taipei INVESTMENT environments IN VIETNAM Mr. Bui Trong Dinh Assistant to the Head Office / in charge of investment Taipei - October

2 VIETNAM investment Environments in I. in brief Contents II. Investment in recently III. The updated Investment environments III. Prospects for investment in 2

3 VIETNAM investment Environments i. in brief i. i. in brief Location: in the centre of Southeast Asia bordered by China to the North, by Laos and Cambodia to the West, with coastline to the North and South Area: 331,698 sq.km. Coastline: 3,260 km Natural Resources Energy resources: oil, gas, and coals and long of waterways provide the basis for hydropower; Minerals: bauxite, iron ore, lead, gold, granite, marble, etc.. 3

4 VIETNAM investment Environments i. in brief i. i. in brief Population: 86 million (2010) Over 65% under 60 Urban areas: 28% Rural areas: 72% Ethnic groups: 54 ethnic groups Largest group: King (88%) Official Language: ese For business: English, French, Russian, Chinese, Japanese, German 4

5 VIETNAM investment Environments I. in brief * Convenient transportation: - Inland road + North-South axis: Highway 1A: 2.260km Ho Chi Minh road: 3167 km + National transportation network + connections with the ASEAN countrie - Railways have a total length of 2632 k - There are 11 major seaports, k of inland waterways - 3 international airports and 16 domestic 5

6 VIETNAM Socio-economic performance for Annual GDP average growth rate : 7% - 8% Annual industrial production increased by 14. 5% Viet Nam in brief Average purchasing power per capita more than doubled 6

7 VIETNAM Viet Nam in brief Major export products: is the world s s largest exporter of pepper, second largest exporter of coffee and rice, third largest of cashews as well as a major supplier of tea and seafood, crude oil, garments, handicraft and art items, etc... 7

8 VIETNAM Viet Nam in brief Major import products: High-tech products, Materials, Pharmaceutical products, machinery, instrument 8

9 VIETNAM investment Environments II. Investment in II. Investment in in recently 1. FDI to ( ) Million USD 72,000 64,000 56,000 48,000 40,000 32,000 24,000 16,000 8, ,600 1,400 1,200 1,000 Registered capital Disbursed capital Number of new projects Number of projects 9

10 VIETNAM II. Investment in recently 2. FDI Up - to - date July ,807 projects licensed with registered investment US$189 billion disbursement over $96 billion - 7 months of 2010: 658 projects licensed with US$10,7 billion 213 projects expanded with increased capital of US$5 billion. - Contribute 20% to GDP, 54.6% to export volume (crude oil included), 35% to industrial output - Create 1.5 million employees 10

11 VIETNAM 3% 16% 5% 1% 2% 5% 7% 2% 6% 3% 1% 6% 31% 7% 5% FDI By Sector Oil & gas Heavy industry Construction Aquaculture Hotel, tourism Culture, health, education Office, apartment construction Light industry Food industry Agriculture, forestry Transport, ICT Banking, finance New urban area construction IZs infra contruction 11

12 VIETNAM II. Investment in recently 3. FDI Distribution by COUNTRIES Thailand 3% Other 21% Republic of Korea 12% Taiwan 12% Cayman Islands 4% Hong Kong 4% Japan 10% Malaysia ritish Virgin Islands 10% 7% United State of America 8% Singapore 9% 12

13 No II. Investment in recently Top Ten Foreign Investors in the period (projects in operation) Countries & Territories No. of project Registered Capital (million USD) 1. South Korea Taiwan Japan Malaysia Singapore America British Virgin Islands Hong Kong Cayman Islands Thailand

14 II. Investment in recently 4. FDI OF TAIWAN TO VIETNAM Real estaed 6.2% Construction 5.3% Others 6.3% Manufacturing 82.2% 14

15 VECO III. Foreign Investment environments 1. Major objectives by 2020 * GDP growth rate : 7.5% - 8% p.a. * Economic structure: - Agriculture, forestry & fishery: 15-16% GDP - Industry & construction: 43-44% GDP - Services: 40-41% GDP * Investment capital for development: US$140 bill. * FDI: US$23-24 bill. (35%) Investment demand for infrastructure: US$14.9 bill. 15

16 VECO III. Foreign Investment environments 2. Investment law * Fair and equitable treatment to both domestic and foreign enterprises in all economic sectors * Investment sectors expanded to foreign investment * Foreign investors are eligible to set up types of investment in conformity with Law on Enterprises * Simplification of investment procedures * Compliance with international practices 16

17 VECO III. Foreign Investment environments 3.. Investment Opportunities entitled to Incentives 3.1 Preferential sectors: - Manufacture of new material and production of new energy, manufacture of high-tech products, bio-technology, information technology and mechanical manufacturing; - Breeding, rearing, growing and processing of agricultural, forestry and aquaculture products, production of salt, creation of new plant and animal varieties; - Utilization of high technology and advanced techniques, protection of the ecological environment and research, development and creation of hightechnology; - Labor intensive industries; - Construction and development of infrastructure facilities and important industrial large-scale projects; - Professional development of education, training, health, sports, physical education and ese culture; - Development of traditional crafts and industries; and - Other manufacturing and service sectors which require encouragement. 17

18 VECO III. Foreign Investment environments 3.. Investment Opportunities entitled to Incentives 3.2 Regions entitled to Incentives: - Regions with specially difficult socio-economic conditions,; - Regions with difficult socio-economic conditions; and - Industrial zones, Export processing zones, High-tech zones and Economic zones. 18

19 VECO III. Foreign Investment environments 4.. Incentives on Corporation Income Tax Standard rate: 28% Preferential rates of 10%, 15% and 20% for a period of 15 years, 12 years and 10 years are available depending on the scope of activities and location of the investment. Tax holidays: A complete exemption from CIT for a certain period (4 yrs at maximum), followed by a period where tax is charged at half rate (9 yrs at maximum) Additional tax reductions available for investment expansion, increase in export turnover, engaging in R&D, employing disabled people, etc. Losses: Taxpayers may carry forward their losses for five years 19

20 VECO III. Foreign Investment environments 5.. Import Duty Exemption and Reduction Exemption applied to projects in investment encouraged sectors and regions on: - Machinery & equipment, specialized means of transportation and construction materials (which cannot be produced in ) comprising the fixed assets of certain projects; - Raw materials, spare parts, accessories, other supplies, samples, machinery and equipment imported for the processing of goods for export and finished products imported to stick to the processed goods. Preferential rates applied to imported goods from countries that enjoy MFN with (89 countries). Rates vary by the category of goods. Special preferential rates applied to imported goods from countries that signed special agreement with (e.g. ASEAN). Ordinary rates are 150% of preferential rates. 20

21 VECO III. Foreign Investment environments 6.. Advantages for investments in IZs, EPZs, EZs IZs and EPZs and 8 Economic Zones - In 2010, 500 projects with registered capital of US$14.4 billion * Favorable incentives - One-stop administrative procedures - Better infrastructure facilities - Custom services included 21

22 VECO III. Foreign Investment environments 7. Licensing and Registration Procedures Investment Registration Procedures applied if: - Projects not fall in conditional sectors; and - Investment capital is less than VND300 billion (approx. US$19 million) - Respond within 15 working days Investment Appraisal Procedures applied if: - Projects fall in conditional sectors; or - Investment capital is VND300 billion (approx. US$19 million) or above - Respond within 45 working days 22

23 VECO III. Foreign Investment environments 8. Investment Licensing Bodies Prime Minister: - Projects regardless of capital source or capital amount within specific sectors (airports, seaports, mining, oil & gas, TV broadcasting, casinos, cigarette manufacturing, universities, development of IZs, EPZs, HTZs and EZs - Projects regardless of capital source with capital amount over VND1,500 billion within specific sectors (electricity, metallurgy, alcohol & beer production, trading etc.) - FDI projects regardless of capital amount within specific sectors (sea transportation, post, telecom & internet networks, printing & publication etc.) Provincial People s Committee: - Projects outside IZs, EPZs, HTZs and EZs and not within PM approval authority - Projects for development of infrastructure in IZs, EPZs, HTZs and EZs in localities with no management authorities of zones Management Boards of IZs, EPZs, HTZs and EZs: - Projects in IZs, EPZs, HTZs and EZs and not within PM approval authority - Projects for development of infrastructure in IZs, EPZs, HTZs and EZs 23

24 VECO III. Foreign Investment environments 9. Policies for development of infrastructure - Call for investment from private sector by offering the most favorable incentives - Mobilize investment from TNCs, commercial banks - Take advantages of ODA source - Issue State-guaranteed bonds for specific construction work Sectors calling for private investment: 1. Transportation 2. Seaport and airport terminals 3. Water supply, irrigation 4. Market, school, medical station 5. Office, houses and apartments 6. Infrastructure in IZs, EPZs, EZs 7. Power & energy 8. Telecommunications Source Unit: US$ mil. Demand for investment Total ODA 9,630 53,106 62,736 State Budget (incl. State bond) 2, ,769 FDI 653 2,125 2,778 Domestic private sector 1,968 2,555 4, Total 14,870 57,936 72,806

25 VECO III. Foreign Investment environments 10.Incentives for investment in infrastructure Most favorable incentives applied to BOT, BT and BTO projects CIT: 10% for 15 years CIT holidays: Exemption for 4 years, and half reduction for 7 successive years Land lease up to 70 years; rental fee exemption for years (or for the whole life of the projects invested in regions with difficult conditions) Duty exemption applied to goods imported to form fixed assets 25

26 VECO III. Foreign Investment environments 10.Incentives for investment in infrastructure Cleared ground shall be provided to investors in infrastructure projects; Support expenses incurred for ground clearance, compensation and resettlement; Support usage fees in regions with difficult conditions for investors to draw back their capital; Support expenses related to designing, survey, and feasibility study creation. 26

27 VECO 1. Why invest in Political and socio-economic stability Rapid and continuous economic growth Transportation hub of Southeast Asia Abundant educated labor force at low price Member of WTO, APEC, ASEAN, ASEM Favorable FDI promotion policies Beautiful and Promising land 27

28 VECO IV. Prospect for invest in 2. Address for information and contact 1.. The Economic & Cultural Office in Taipei Address: : 2f, 65 Sung Chiang Road, Taipei Tel: (02) / ext 203; fax: ; ; btrongdinh@yahoo.com; ; Mobile: Foreign Investment Agency -Ministry of Planning and Investment Address : 02 Hoang Van Thu Str, Hanoi,, Tel: , Fax: , fiavietnam@mpi.gov.vn website: www/mpi.gov.vn/fdi 3. Relevant ministries 4. Provincial Planning & Investment Department 5. Board of Management for IZs and EPZs 28

29 Welcome to THANK YOU FOR YOUR ATTENTION! 29