Embassy of Vietnam in South AfricaCape Town, 26 June 2015

Vietnam: Trade, Investment

& Tourism Potentials

Overview of Vietnam

• Location: central of South-East Asia, bordered with China in the North, Laos, Cambodia in the West, and by the Gulf of Thailand, Gulf of Tonkin, East Sea

• Area: 331,689 km2 • Population: approximately

94,5 million (2015)• Coat line: 3,444 km.• Major cities: Ha Noi, Hai

Phong, Da Nang, Ho Chi Minh city, Ba Ria - Vung Tau, Nha Trang, Can Tho.

VIETNAM

VIETNAM

• Languages:- Vietnamese (official)- English (most favoured)- Chinese, French, Russian

• Religions: - Buddhist (10%) - Catholic (6.7%)- Protestant (0.5%)- None (81%)- Others (1.8%)

Natural Resources

• Oil-proved reserves:

10 bill tons equivallent ++• Natural gas reserves:

1,000 bill cubic meter • Coal-proved reserves:

15 billion tons ++• Other resources:

Bauxite, iron ore, copper, gold, precious stones, tin and hydropower

Economic reform

The Renewal Process of Viet Nam has been launched since 1986 and aimed at:

• Opened and socialist-oriented market economy.

• Diversified in economic sectors: state-owned, privates, FDI…

• Promote and expand international relations.

• Public administrative reformed, strengthen legal framework.

Annual GDP Growth rate (2004-2014)

7.78.4 8.2 8.4

6.185.32

6.785.89

5.035.42

5.98

0

1

2

3

4

5

6

7

8

9

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ECONOMIC FIGURES IN 2014

GDP: 154 billions USD

GDP per capita: 1700 USD

Export: 150 bil. USD, increased 13,6 %

Import: 148 bil. USD, increased 12.1%

FDI: 15.6 billions USD, increased 9.6 %

Export

• Main export commodities of Viet Nam :

Seafood, Rice, Rubber, Crude oil, Coal, Garment and textile, Footwear, Electronics and computer components, Wooden products, pepper, tea, etc.

• Major Export Markets: USA (19 %), EU (18.6 %), ASEAN (12.6 %), Japan (9.8 %), South Korea (5.2 %),

Export

Vietnam is:

• The world 2nd largest exporter of rice.

• The world 2nd largest exporter of coffee.

• The world largest exporter of pepper with 60 % of the world market share.

• The world largest exporter of cashew nuts.

• The world 4th largest exporter of natural rubber.

• The world largest exporter of pangasius fish with 90 % of the world market share.

Import in 2014

Item Amount(bill. USD)

Machineries, manufacturing equipments and spare parts

22.5

Electronic and PC, components

18.8

Fabrics 9.5

Fuel and petrochemicals 7.6

Iron and steel 7.6

Plastic materials 6.3

Materials for textile and shoe leather

4.8

Fertilizers 1.3

Total 148

Import

• Main import commodities:

Machinery and equipment, petroleum products,

fertilizer, steel products, raw cotton, cars, wine, etc.

• Main import partners:

China (29.5 %), Asean (15,6 %), Korea (14.7 %),

Japan (8.6 %), EU (6.0 %).

VIETNAM’S ECONOMY 5 MONTH 2015

“The socio-economic performance has been showing positive changes in 2014 and the Government has set higher targets for 2015 “

HIGHER TARGETS FOR 2015

GDP growth: 6.2 %

CPI increase: 5 %

Export growth: 10 %

Investment for Social Development: 30 %

of GDP

VIETNAM’S ECONOMY 3 MONTH 2015

GDP growth: 6.03 %

Export: 35.7 bil. USD, increased

6.9 %

Import: 37.5 bil. USD, increased

16.3%

FDI: 1.22 billions USD, decreased

40.6 %

International relations• Trade Relations with 221 countries and territories, signed

90 trade agreements of all kinds

• Member of International Organizations: UN, NAM.

- ASEAN (since 1995)

- APEC (since 1998)

- WTO (since 2007)

- Free Trade Agreement: ASEAN-China, ASEAN-India,

ASEAN-Korea, ASEAN – Australia – New Zealand

- Currently negotiating FTA with the EU and Trans-Pacific

Partnership (TPP)

Vietnam – South Africa

Relationship with South Africa

• Diplomatic relation established in 22/12/1993

• Vietnam Embassy in South Africa was established in 2000

• South Africa Embassy in Vietnam was established in 2002

• High level Vietnam delegations to South Africa: Vice

President in 1994, Minister of Foreign Affairs in 1995,

President in 1998, Deputy Prime Minister 2002, Prime

Minister 2004.

• South Africa President Thabo Mbeki visited Vietnam in

2007

Signed Legal Documents

Trade Agreement signed in April, 2000

Agreement on establishing Inter-Governmental Partnership Forum for Economic, Trade, Scientific, Technological and Cultural Cooperation .

Agreement on establishing the Joint Commission.

Agreement on Cooperation between the Chamber of Commerce and Industry of the two countries.

Agreement on Cooperation between the Ministry of Foreign Affairs of Vietnam and the Dept of International Relations and Cooperations of South Africa.

MES of Vietnam recognized by South Africa since 2010.

Bilateral trade volume

Unit: US$ million

Year 2007 2008 2009 2010 2011 2011 2013 2014

Export 115,6 147 378,3 494 1.864,6 612 765 1,061

Import 73,2 137 126,9 165 222,7 111 155 178

TOTAL 188,8 284 505.2 659 2.087,3 723 920 1239

Bilateral trade volume

0200400600800100012001400160018002000

2007 2008 2009 2010 2011 2012 2013 2014

Export

Import

Vietnam Export to South Africa in 2014

Main items ValueMillions USD

Mobile phone 534.6

Shoes 137

Coffee 23.8

Rice 16.1

Pepper 14.6

Cashew nuts 12.4

Furniture 9.8

Computers 9.3

Coal 6.3

Travel items 6.3

Vietnam Import from South Africa in 2014

Main itemsValue

Millions USD

Dry nuts 35.0

Shrimps 26.8

Metal scraps 20.7

Aluminium ingots 14.1

Leather 13.3

Plastic materials 7.1

Oranges 6.2

Enzymes 5.5

Stainless steel 5.0

INVESTMENT - INBOUND

• For the last 20 years: Vietnam has emerged as one of the most attractive destination for foreign investment.

• In 2014 foreign investors have invested in 1,588 newly licensed projects with a total capital of USD 15.6 billion, an increase of 9.6 %.

• South Korea is the leading investment country followed by Hongkong, Singapore, Japan, Taiwan, UK, Belgium, Canada.

• Most of the world’s famous brand-names such as ADDIDAS, NIKE, REEBOK, NIKE, INTEL, COCA-COLA, PEPSI, METRO CASH & CARRY, CANON, FUJITSU, MERCEDES, TOYOTA, YAMAHA, FORMOSA, POSCO, SAMSUNG, KUMHO, HYUNDAI … are now being made in Vietnam.

INVESTMENT – INBOUND FROM AFRICA

• Seven African countries (Seychelles, Morocco, Nigeria, Mauritius, Egypt, Kenya and Sierra Leon) invested in Vietnam in 37 projects for food processing, manufacturing, wholesale & retail, repair, science & technology, accommodation, and consultancy, worth USD 67.76 million.

• South Africa’s investment in Vietnam includes 3 projects with a total capital of USD 180 thousand.

INVESTMENT - OUTBOUND

• Vietnamese investors are also starting to invest in foreign countries.

• By December 2014 Vietnam has 930 outward projects with registered capital of USD 19.78 billion.

• By 2012 Vietnam has 18 investment projects in 11 African countries with investment capital of USD 1.1 billion.

• Tanzania had a single largest project of USD355 million, which accounted for 31 % of Vietnam’s total investment abroad.

• Burundi had 2 projects of USD 170 million, which accounted for 16.2 %.

•Vietel Group invested USD 345.6 million in Mozambique, as well as USD 400 million in Cameroon in telecommunications infrastructure.

INVESTMENT - OUTBOUND

• Vietnamese investors also start to invest in foreign countries.

• By December 2014 Vietnam has 930 outward projects with registered capital of USD 19.78 billion.

• By 2012 Vietnam has 18 investment projects in 11 African countries with investment capital of USD 1.1 billion.

• Tanzania had a single largest project of USD 355 million, which accounted for 31 % of Vietnam’s total investment abroad.

• Burundi had 2 projects of USD 170 million, which accounted for 16.2 %.

• Vietel Group invested USD 345.6 million in Mozambique, as well as USD 400 million in Cameroon in telecommunications infrastructure.

INVESTMENT - OUTBOUND

•Petro Vietnam invested USD 300 million in oil & gas in Algeria, Tunisia, Cameroon, and the Congo.

•Vietnamese private companies invested in DAP and Urea manufacturing projects in Morocco and Egypt, assembling and manufacturing of agricultural machinery in Tanzania, construction, roof-sheeting, making of two-wheelers, garments, electronics, soft drinks, forestry, as well as gold & mineral mining investments in Angola, South Africa, Ghana, Tanzania and Mauritius.

INVESTMENT - OUTBOUND

• Vietnam has invested in South Africa in 2 FDI projects. The

projects represent a total capital investment of USD 1.665 million and create 4,000 jobs for the people of South Africa.

Why doing business with Vietnam?

Political, security stability

Competitive man power

Open PolicyRapid

economicintegration

Ideal Hub

Strategicgeographical

location

Strategic Partner

EconomicGrowth

Bigpotential market

Strategic geographic

location

Incentive: Corporate Income Tax- Standard rate 22%, to be reduced to 20% from 1/1/2016

- 20% (to be reduced to 17% as from 1/1/2016): • 10 yrs: areas with socio-economic difficulties; production of feed for

poultry, livestock and fisheries; agricultural machinery, energy –saving products, high-grade steel; traditional trades

• Entire operation period: (i) enterprises with aggregate revenues of less than VND 20 billion (1 mil USD); (ii) income of people’s credit fund & micro-finance institutions

- 10%:

• 15 yrs: areas with special socio-economic difficulties, Economic Zones and High Tech Zones; hi-tech, R&D, soft ware, specially important infrastructures, environmental protection, large-scale manufacturers.

• Entire operation period: socialization sectors (education, training, health care, culture, sports and the environment…); agriculture; social residential housing development etc.

Incentive: Import duty exemption

Machines, materials, special transport means… imported to

create fixed properties of investment incentive projects.

Materials which are not locally produced.

Commodities and devices are imported for the 1st time for

projects such as hotels, offices, apartments, supermarkets, golf

course, resorts, clinics, training, culture, finance…(regulated in

the list of the Government)

Raw materials, materials, components of projects enjoying

investment incentives or areas with especially socio-economic

difficulties are exempted from import tax for 5 years.

What should be done to further promote bilateral trade and investment

• Make the best use of Embassy, including Trade and Economic

Offices of both countries as information and supporting channels.

• Focus on Investment cooperation in each country’s sectors of

strength and advantages.

• Further exchange of business delegations

• Information sharing seminars or conferences

• Market survey and participation at trade fairs

• Trade promotion activities

HA NOI CAPITAL

Attractive Destination

Advantages of Hanoi• Capital: Political, business and cultural center of Vietnam

• Total size: 3,344 km2

• Population: 7.2 million people,

HÀ NỘI

• Young, high quality, experienced labor force.• Reform administrative procedures in promoting, managing and implementing FDI & ODA programs

Advantages of Hanoi

Advantage of Hanoi - safe & successful investment destination - rich cultural & friendly environment

SUCCESSFUL ACCOMPLISHMENTS

•In 2014: 418 newly registered FDI projects with total investment capital of USD1,397.2 billion

Foreign Investment StructureCommunicationReal EstateManufacturingTradeOthers22.2%

42.9%8.52%

14.48%

11.9%

TRADE

EXPORT:

• Total turnover in 2013 reached USD 9,829 million (up 0.2% in comparison with 2012 figure).

• The primary exporting markets include: Asean (USD 2,455 million or 25%), China (USD 1,651 million or 16.8%), EU (USD 805 million, or 8.2%), Japan (USD 794 million or 8.1%), the USA (USD 810 million or 8.2%), and other markets (USD 3,314 million or 33.7%).

IMPORT:

• total turnover in 2013 reached USD 23,250 million (decreased 3.7% in comparison with 2012 figure).

• The main imported items: raw materials, machinery and spare parts for manufacturing.

VIETNAM:

Attractive Tourist Destination

TOURISM - INBOUND

• Vietnam is a new destination to the world.

• In 2014: 7.87 million foreign visitors, including from :

China: 2 million South Korea: 0.9 millionJapan: 0.7 millionUSA: 0.4 million

South Africa 5 thounsands

TOURISM – OUT BOUND

• Vietnamese tourists tend to travel overseas

• In 2012: 3,5 Vietnamese tourists spent USD 3.5 billion in foreign countries, including:

• China: 1.1 million• Thailand: 0.5 million• Singapore: 0.3 million • Malaysia: 0.2 million• South Korea: 0.11 million

WHY TRAVEL TO VIETNAM

•Vietnam is no longer a war, a country of peace.

•Attractive reasons: Affordable cost.

Unique beautiful places Rich cultural and historical background

Rich Historical & Cultural sites

Ha Long Bay – UNESCO World Heritage Site, one of Seven World Wonders

The Cham beauties

Water Falls

HANOI CAPITAL - ONE THOUSAND YEAR -

• Hanoi attracts 1/3 the number of tourists visited Vietnam & a great number of domestic visitors annually

HANOI:

2,6 million foreign tourists & over 14 million domestic travelers (2013)

HANOI:

Ethnic agricultural farming

Floating Markets on Mekong River

Foreign tourists on Mekong Rivers

World famous beaches

Fast and easy immigration process?

How to apply for a visa for Vietnam?

- Go to: http://visa.mofa.gov.vn/_layouts/registration/ApplicationForm.aspx

to fill in the visa application form

- Print out the completed form

- Submit to the Embassy of Vietnam one application form AND your original passport, one ID photo, proof of flight booking, proof of payment for visa fee

How to apply for a visa for Vietnam?

- Payment should be made in advance to our bank account and proof of payment must be submitted at the same time when you hand in your documents

- Banking details:

• Account name: Embassy of Vietnam• Account number: 62243859909• Bank: FNB• Branch name: Brooklyn• Branch code: 251345• Swift Code: FIRNZAJJ

How to apply for a visa for Vietnam?

Contact the Vietnam Embassy in Pretoria

Website: www.vietnam.co.za Physical address: 87 Brooks street, Brooklyn, Pretoria.

• Consular hour: 8h30AM-11h30AM Mon-Fri

• Visa processing time: 5 working days for normal, 3 working days for rush service

• Tel: 012 - 362 8119 ext 100 or 109

• Fax: 012 - 362 8115

• Email: embassy@vietnam.co.za

Thank you very much!