1 presentation of h.e. ambassador nguyen xuan luu economic forum club bratislava, 20 june 2013
TRANSCRIPT
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PRESENTATION
OF H.E. AMBASSADOR NGUYEN XUAN LUU
ECONOMIC FORUM CLUB
Bratislava, 20 June 2013
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Viet Nam Part I: Overview of Vietnam
Part II: Main economic achievements of Vietnam in recent years
Part III: Some aspects of Vietnam - Slovakia economic and trade relations
Recommendations to promote economic cooperation between the two countries
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I. Overview of Vietnam
Area: 331,051.4 km2Bordering: China
(North), Laos, Cambodia (West), East Sea (East)
Population: 88,780,000 (2012), 54 ethnic groups, multi religions
Capital: Hanoi with 6.7 mn
Business Center: HCM City, 7.5 mn
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Hanoi Capital
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Hue City
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Ho Chi Minh City
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Ha Long Bay
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Overview of VietnamVietnam is gateway of Southeast Asia and
North-East Asia countries, a geopolitical location conducive to intergration and economic cooperation with other countries
Security, political stabilityViet Nam-active member of international
organizations in the region and world. Market is growing faster and more uniform
(economic reform – renovation) Abundant young workforce, 70% of the
population under 40 years old, skilled and good education system conductive to economic development.
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II. Main economic achievements of Vietnam in recent years
Renovation achievementsEconomic reform (Doi Moi - Renovation) from 1986Sustain high and stability economic growth for
years, - GDP growth average 7.5% during 2001-2005, 7%
between 2006-2010 and 5.03% in 2012
- GDP 2012 total: USD 136 bn; Agriculture: 21% GDP, Industry: 41% and Service: 38%; corresponding structure in 1991: 41%, 24%, 35%.
- GDP per capita in 1986: 100 USD, 2012: 1,540 USDViet Nam joined the middle-income countries
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GDP growth in 2010-2012 at relatively high level
0123456789
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP
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Regional and International Integration:- Motto: Vietnam is a friend and reliable partner of all countries in the international community - Diplomatic relations with over 180 countries. Trade-investment relations with more 200 countries and territories
- Member of ASEAN, APEC, UN, WTO …
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Export and Import Import-export
turnover increase 15-20%/ yearIn 2012, exports reached USD 115 bn, up 18% compared with 2011
Imports reached USD 114 bn, up 7% compared with 2011
Opening of economy is high: im-ex/GDP: 170%
0102030405060708090
100110120
2009 2010 2011 2012
ExportImport
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Goods export market in 2012
EU: USD 20 bn, 17% of total exports
United States: USD 20 bn, 17%
ASEAN: USD 17 bn, 15%
Japan: USD 13 bn, 11%
China: USD 12 bn, 10%
0
5
10
15
20
25
US
EU
ASEAN
CHINA
JAPAN
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Main export goodsTextiles & garments: USD 15 bn,
up 7% in 2012 Phone & accessories: 12.6 bn, up
97% Crude oil: USD 8.5 bn, up 16%Electronic & computer: 8 bn, up
70%Footwear: 7 bn USD, up 11% Aquatic products: USD 6 bn, up 1%Machinery, equipment, tool &
spare parts: USD 5.5 bn, up 27%Wood & wood products: USD 4.6
bn, up 17% Vehicles & parts: USD 4.5 bn, up
30%Rice: USD 3.7 bn, Coffee: USD 3.7 bn, Rubber: USD 2.8 bn,
0
2
4
6
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16Textiles andgarmentsCrude oil
Phone &accessoriesFootwear
Aquatic products
Electronic &computer Machinery parts
Wood products
Rice
Rubber
Coffee
Vehicles & parts
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Vietnam is the world leader in exports of black pepper, cashew nuts.
Second place in exports of rice, coffee.
Third place in exports of natural rubber.
Top 10 place in exports of seafood.
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Goods import market
China: USD 29 bn, 25% of total imports
ASEAN: USD 21 bn, 18%
South Korea: USD 15.6 bn, 14%
Japan: USD 12 bn, 10%
EU: USD 8.8 bn, 8%
United States: USD 4.7 bn, 4%
0
5
10
15
20
25
30
CHINA
ASEAN
SOUTHKOREAJAPAN
EU
US
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Main import goodsElectronic, computer &
accessories: USD 13 bnMachinery, equipment, tools,
spare parts: USD 16 bnPetroleum: USD 9 bnFabric: USD 7 bnSteel: USD 6 bnPhone & accessories: USD 5
bnPlastics: USD 5 bnRaw materials for textile,
wear, footwear: USD 3 bnChemicals and Chemical
products: USD 5 bn0
2
4
6
8
10
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16Machinery, equipment,tool, spare partsPetroleum
Fabric
Plastic
Raw materials fortextile, wear, footwear Chemicals
Chemical products
Animal feed & rawmaterialsElectronic
Steel
Phone & accessories
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Foreign investment(Law adopted in 1988)
FDI in 2010: USD 18.6 bn
In 2011: USD 14.7 bn
In 2012: USD 13 bn
As of 5/2013: USD 217
bn, 14,918 investment
projects from 100
countries and
territories
Value (Billion USD)
Projects
Countries,
territories
2010 18.6 1,237 55
2011 14.7 1,465 53
2012 13.0 1,535 58
As of 5/2013
217 14,918 100
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Top five countries FDIAs of 5/2013
Japan: USD 32 bn, 1,959 projects
Taiwan: USD 27 bn, 2,249 projects
Singapore: USD 27 bn, 1,154 projects
South Korea: USD 25 bn, 3,302 projects
British Virgin Islands: USD 15 bn, 511 projects
0
5
10
15
20
25
30
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Japan
Singapore
South Korea
Taiwan
BritishVirginIslands
0
500
1.000
1.500
2.000
2.500
3.000
3.500Japan
Singapore
South Korea
Taiwan
BritishVirginIslands
Projects
Value
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FDI of Viet Nam in abroad: Up to 3/2013, Vietnam had 742
investment projects abroad with a total registered capital of USD 15.5 bn in many countries and territories.
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Official Development Aid (ODA)
ODA record USD 7.9 bn in 2010, 7.4 bn in 2011 and 6.5 bn in 2012.
As of 2012, about USD 37 bn ODA disbursed since 1993.
The major ODA donor: WB, ADB, EU, France, Germany, Japan, South Korea, Australia...
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Vietnam’s economic success: The reason for
Political and social stability Improve the legal environment and
institutional market economy Reform the public sector and encourage the
development of the private sectorImproving infrastructure, transport, energy
and training of human resources for development
International economic integration activities
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Socio-economic development indicators in
2013
GDP increased by 5.5%.; Export turnover increased by 10%.; Trade deficit about 8%; State budget deficit by 4.8% of GDP; Inflation about 8%; Total investment of the whole society developed around 30% of GDP.
The poverty rate fell by 2%; Create jobs for about 1.6 million workers; The unemployment rate in urban areas as 4%;
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Difficulties to be solved Overcome the difficulties as Potential risk
of high inflation; Macroeconomic instability; High bad debt (7% of GDP); High level of bankruptcy; Real estate market and stock market plummeted.
Steps are taken: - Reform banking system to solve the high
bad debt - Fix financing policy to reduce inflation,
reduce the income and company tax. - Restructuring the state companies - Promoting exports, FDI and ODA inflows.
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III. Vietnam and Slovakia relations
Traditional friendship and multilateral cooperation
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In 2006 President of Slovakia Ivan Gaspanovic visited Viet Nam.
In 2008, Prime Minister Fico visited and reopened the Embassy of Slovakia in Hanoi.
In 2009, Vietnam President Nguyen Minh Triet visited Slovakia. Embassy of Vietnam opened in Bratislava in 2010.
In 2010, Chairman of N A Pavol Paska visited Viet Nam The results of the visits gave new impetus to the
development of bilateral relations today.In April 2013, First Meeting of Joint Commission on
Economic Cooperation between Viet Nam & SlovakiaThe two countries signed several treaties and
cooperation agreements to create a legal framework for promoting bilateral cooperation.
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Trade
0
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100
150
200
250
300
2011 2012
exportimport
VIETNAM EXPORT-IMPORTTWO-WAY TRADE TURNOVER
0
50
100
150
200
250
300
350
2006 2011 2012
Two-waytradeturnover
Million USD
Million USD
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TradeTwo-way trade turnover increased from USD
26 mn in 2006 to USD 170 mn in 2011 and USD 307 mn in 2012.
Viet Nam exported USD 291 mn mainly computers, electronic products and components, footwear of all kinds, textiles and garments, seafoods
Viet Nam imported USD 16 mn mainly machinery, equipment and parts, wood and wood products; chemical raw materials for textile, leather, shoes and feed materials
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Investment & economic cooperationInvestment & economic cooperation are limitedInvestment: Slovak companies interested in the
Vietnam market. Group Investment and Development of Slovakia (BTG) has an investment project in Hoa Binh province (Industrial park).
Finance Group J & T (investment in construction project of office buildings in HCM City).
Slovak companies participated in Exhibitions in Ha Noi 2011 and 2013; Economic forums are organized in Viet Nam & Slovakia.
Some Vietnamese companies are interested in Slovak mobile market; selling coffee, rubber, seefood to Slovakia and though Slovakia to EU countries.
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RecommendationsVietnam is a bridge to Slovakia in the
ASEAN market and Slovakia for Vietnam into Eastern Europe - EU.
Great potential to develop cooperation in tourism, cultural cooperation, training and education.
Joint Commission is a good mechanism to promote cooperation. Encourage the small & medium enterprises (SME)
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How doing business in Vietnam? - Open economy but highly competitive and
lack of information. - Big markets, profitability prospects but
administrative procedures; unskilled workers - Doing business in the cities, the industrial
zones due to good infrastructure conditions - Increase export of SK through investment
projects - Support from the Slovak Embassy in
Vietnam and the Vietnam Embassy in Slovakia.
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ConclusionTime of opportunity to promote relations and
cooperation between Vietnam and Slovakia.Vietnam - industrialization, modernization and rapid economic development. Slovakia – new, active member EU.
Slovakia and Vietnam will take advantage of opportunities to enhance cooperation, exploit strengths and potential of the two sides, meeting the interests of our two countries.
Friendly relations and cooperation need a new driving force from the young generations.
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Thank you!