Vietnam Trade and Investment Prospects for Thai Enterpreneur

1
Vietnam - Trade and Investment Prospects for Thai
Enterpreneur

• Presented by Mrs. Unchalee Asavametha
• Minister Counsellor (Commercial)
• Office of Commercial Affairs,
• Royal Thai Embassy
• Hanoi 28th July 2008

2
Country Profile

• Location Southeastern Asia, bordering the Gulf
  of Thailand, Gulf of Tonkin, south China Sea,
  China, Laos, and Cambodia.
• GDP
• Total area 329,560 sq Km
• Population (2006 est.) 84,402,966
• Labor force 44.39 million
• ( agriculture 56.8, industry 37, services 6.2)
• Largest cities Ho Chi Minh City Ha Noi Hai
  Phong, Da Nang, Hue, Nha Trang, Quy Nhon
• Literacy rate 94

3
Important Information

• Border Gages
• Total 9 border gates for the whole country
• Mong cai, Lao Cai, Lang Son,Tan Thanh (North)
• Moc Bai, An Giang, Dong Thap (South)
• Cau Treo, Lao Bao (Central)
• The number of border gates will be 30 by 2020

• Seaports
• Total 114 seaports with 3200 km long coastline
• 14 Key Seaports for the whole country.
• 3 largest seaports in Vietnam
• Saigon port (South)
• Hai Phong port (North)
• Da Nang Port ( Central)

4
Key Economic Indicators 2006- 2007 targets 2008
5
Trade between Vietnam Thailand up to 2008

• Signed around 30 bilateral cooperation agreements
  between two countries (1976- 2008) including
  trade agreements.
• TRADE
• First 5 years of 2008 export- import turnover
  2.7 billion US. Of that
• - Export to Thailand 607 million US ( computers
  components, crude oil, seafood, coal, )
• Import from Thailand 2.1 billion US ( gas
  petroleum, plastic materials,motor accessories
  components,)

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• INVESTMENT
• Up to 6/2008 Thailand has 175 invested project
  in Vietnam with the total value of 1,79 billion
  US, ranking 12nd among foreign investors in
  Vietnam and 3rd among ASEAN investors in Vietnam.
  Most Investments are medium small size and
  majors in Seafood exploitation, food processing
  and banking.
• COOPERATION
• Projects East West Corridor, GMS, ACMECS

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Market structure

• Large population large market size
• Low GDP per capital but high percentage for
  consuming.
• Exports value is smaller than Import one.
• - Export crude oil, marine products, rice,
  coffee, rubber, tea, garments, shoes,..
• - Import machinery equipment, petroleum
  products, fertilizer, steel products, raw cotton,
  grain, cement, )
• High demand for imported consumer goods and
  supporting industries.

8
Market potential for Thai Trade and
InvestmentThere are some good prospects for Thai
exporters/ investors in Vietnam market

• Supporting Industries
• Power Generation, Transmission and Distribution
• Telecommunication Equipment Services
• Oil Gas Machinery Services
• Food processing

• Construction
• Printing Packaging
• Safety Security Equipment
• Education Training
• Medical Equipments
• Advertisement mass media

9
Why to invest and trade in Vietnam

• Political and socio- economic stability
• Dynamic and potential market with sustainable
  high growth rate with 85 million inhabitants.
• Consistent policies to the foreign trade and
  investment as well as a successful integration
  into regional and global market
• Thailand and Vietnam are members of ASEAN, AFTA,
  APEC, WTO so Vietnam market opens to good
  services from Thailand
• Thai products and services are preferred in
  Vietnam
• Thailand Vietnam Trade investment are
  expanding for years

10
Current market situation Key Issues

• Enacting open market reforms including greater
  transparency of laws regulations
• WTO membership paved the way for getting PNTR
  with U.S that helps to increase bilateral trade
  and investment not only with U.S but also with
  other countries.
• Tariff reductions removal of market barriers
  (in the light of AFTA, FTA) have created new
  opportunities for trade investments of
  foreigners.

• WTO membership makes Vietnam to undertaking all
  necessary reform required and following
  international standards and norms.
• Vietnam s economy will double in size within
  next decade and correspondingly high demand in
  term of market activities.

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Current market situation Key IssuesMonthly
Wage (US)
12
Current market situation Key Issues Land
price, office rent (US)
13
Current market situation Key IssuesTaxation ()
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How to set up business in Vietnam

• 1. Go to jurisdictional Office local Authority
  for Planning Investment
• 2. Supply application files to get operation
  permit
• Notice of establishment of the branch office or
  notice of establishment of representative office
• Written decision and copy of the minutes on the
  establishment of the branch office and
  representative office
• A valid copy of the decision on appointment of
  the head of the branch office, the representative
  office

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How to set up business in Vietnam

• A valid copy of enterprise s certificate of
  Investment
• A valid copy of the charter for limited company,
  join- stock company and joint- venture company
• For branch office running business in industries
  and professions that require practice
  certificate, a valid copy of the practice
  certificate of the head of the branch office or
  his/her deputy is required
• 3. Application for files for registration of the
  business operation
• Notice of the business location
• A valid copy of the personal identification
  papers of the head of the business location, as
  regulated at Article 18- Decree 88/2006/ND/CP

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Useful contact addresses

• Foreign Investment Agency (FIA)- Ministry of
  Planning Investement (MPI) No. 2 Hoang Van Thu
  Street, Hanoi. Tel [phone]/766 Fax
  84-4- 7343769 Email fiavietnam_at_mpi.gov.vn
  Website www.mpi.gov.vn
• Vietnam Trade Promotion Agency (Vietrade) 20 Ly
  Thuong Kiet Street, Hanoi. Tel [phone]
  Fax [phone] Emailvietrade_at_vietrade.gov.vn
  Websitewww.vietrade.gov.vn

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Plans/activities 2008 Office of Commercial
Affairs Hanoi

• Hanoi office keeps continuing activities focusing
  on promoting for export from Thailand to Vietnam.
  
• Organized outlet fair 4/2008 in Hanoi
• Organized Software Business Matching 4/2008
• Helped to prepared for MTA Vietnam 7/2008
• Organize Thailand Exhibition 7-10/8/ 2008 in
  Hanoi
• Send missions to visit fairs in Bangkok as
  scheduled focusing on the form of Ex. 2 by
  inviting companies and form Ex. 3 by cooperation
  with tour agents in Hanoi.
• Cooperate with functioned governmental bodies in
  Hanoi to promote for fairs/exhibitions organized
  both in Hanoi and Bangkok to attract more
  importers from Vietnam and exporters from
  Thailand.
• Organize business matching( if demanded)

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The endThank you !

• Office of Commercial Affairs,
• Royal Thai Embassy
• Suite 801m 8th Floor, HCO Building, 44B Ly Thuong
  Kiet Street, Hanoi- Vietnam
• Tel [phone] Fax [phone]
• Email thaitchanoi_at_depthai.go.th