Embassy of Vietnam in South Africa Cape Town, 26 June 2015 Vietnam: Trade, Investment & Tourism Potentials 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 • Languages: - Vietnamese (official) - English (most favoured) - Chinese, French, Russian • Religions: - Buddhist (10%) - Catholic (6.7%) - Protestant (0.5%) - None (81%) - Others (1.8%) • 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) 8.4 9 8 7 6 5 4 7.7 8.2 8.4 6.78 6.18 5.32 5.89 5.03 5.42 5.98 3 2 1 0 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) 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 73,2 137 126,9 165 222,7 111 155 178 188,8 284 505.2 659 2.087,3 723 920 1239 TOTAL Bilateral trade volume 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Export Import 2007 2008 2009 2010 2011 2012 2013 2014 Vietnam Export to South Africa in 2014 Main items Mobile phone Value Millions USD 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 items Value 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? Economic Strategic Growth Partner Political, security stability Strategic Strategic geographical geographic location location Ideal Hub Big potential market Competitive man power Open Policy Rapid economic integration - 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. 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 Advantages of Hanoi HÀ NỘI Advantages of Hanoi Advantage of Hanoi - safe & successful investment destination - rich cultural & friendly environment SUCCESSFUL ACCOMPLISHMENTS 14.48% 8.52% 42.9% 11.9% 22.2% Communication Real Estate Manufacturing Trade Others TRADE TOURISM - INBOUND • Vietnam is a new destination to the world. • In 2014: 7.87 million foreign visitors, including from : China: South Korea: Japan: USA: 2 million 0.9 million 0.7 million 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 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? How to apply for a visa for Vietnam? How to apply for a visa for Vietnam?