The document provides information about doing business in Vietnam and Long Hau Industrial Park. It discusses Vietnam's advantages such as political stability, solid economic growth, favorable social environment, technological infrastructure, and legal protections for foreign investors. It notes that Vietnam is ranked highly for business expansion in Southeast Asia. It then summarizes FDI in Vietnam, with top sources being Japan, Taiwan, and Singapore. Finally, it describes Long Hau Industrial Park, located in a strategic province, and its green infrastructure, tenants from various countries, and benefits like saving time, costs, and enabling sustainable development.
8. 8
Why Vietnam?
Vietnam is “one of the most popular destinations for
expansion within the ASEAN region”
ASEAN Business Outlook Survey
AmCham and Singapore Business Federation
• Population: 92.47 million – 15th (growth rate: 1.03%)
• GDP (PPP, Int’l US$): 336.2 billion – 39th
153.5 billion (real ex rate)
• Surface area: 331,210 sq.km – 66th
• Commercial hub: Ho Chi Minh City
• Long coastline: 3440 km
• Neighborhood: Cambodia, China, Laos
10. 10
Why Vietnam?
Political stability
Vietnam: ranked 2nd place for Political stability (tied with Hong
Kong) by Business Monitor International
- Only Communist Party plays the leader role
- No threat of civil war, domestic conflict, terrorism (not a single
military conflict has arisen since 1979)
12. 12
Why Vietnam?
Favorable social environment for business
development
Population: 92.47 million 15th largest country market with rising middle
income class
Golden population structure:
60% of population is under 30
66% : working age
1.5 million people will be in working age each year
15. 15
Why Vietnam?
Social environment (cont):
Vietnam Labor Force: More than low cost
Literacy rate: >95%
English: Secondary language
Worker: diligent and eager to learn with a strong desire for great
affluence
Increasingly high skilled labor force
o 2000-2008: Number of university/college student increased
by 120% to 1.66 million student
o Around 25,000 students apply for Int’l educational programs
each year
16. 16
Why Vietnam?
Advantageous environment condition
Pleasant climate
Rich in natural resources
Close to large metropolitan & economic hubs:
Hong Kong, Shenzhen and Guangzhou.
Proximity to China: global supply chains, adopt a
“China+1” strategy in Vietnam
Thailand 2004Philippine 2013
17. 17
Why Vietnam?
Technological factor
Sea Port system
• Long coastline: 3440 km - convenience
sea transport
• Port: around 30 commercial ports in
around Me Kong River Delta only
• $400 trillion master plan for building ports
capable of accommodating world largest
container ships
18. 18
Why Vietnam?
Technological factor (cont)
Transportation system:
Waterway: 17,000km
Railway: 2,600km
Road, highway: through out country
Airway: 16 domestic airports, 6
International Airports (Tan Son Nhat,
Noi Bai, Long Thanh, Da Nang, Dong
Duong, Can Tho)
19. 19
Why Vietnam?
Technological factor (cont)
Low cost and stable power supply
Figure: Comparison of cost between Vietnam and other Asia Countries
National Electricity rate for
business use
(per kWh)
Water rate for
business use
(per cu.m)
Gas rate for
business use
(per cu.m)
Vietnam
(HCM)
(1) 0.04
(2) 0.06
(3) 0.11
0.43 1.28/kg
Thailand
(Bangkok)
0.15* 0.31-0.53* 0.99/kg
Indonesia
(Batam)
0.09 1.08* Rate per 1mmBtu:
8.45
Philippines
(Manila)
0.14~0.17* 1.84~2.23* 1.57/kg
China
(Shenzen)
0.04~0.18 0.7 Rate per cu.m: 2.48
Source: “The 23
rd
Survey of Investment related cost in Asia and Oceania” by JETRO
20. 20
Why Vietnam?
Legal environment: encourage and protect Foreign Investor
No tax on dividends remitted to investor’s home country
Figure: Comparison of Vietnamese Tax system and other Asian Countries’
National Corporate income
tax rate
Personal income
tax rate
(highest rate, %)
Valued-added tax
(VAT)
(standard, %)
Viet Nam (HCM) 22% 35% 0% . 5%. 10%
Thailan (Bangkok) 20% 35% 7%
Indonesia (Batam) 25% 30% 10%
Philippine (Manila) 30% 32% 12%
China (Shenzhen) 25% 45% 17%
Source: “The 23
rd
Survey of Investment related cost in Asia and Oceania” by JETRO
21. 21
Why Vietnam?
Legal environment: encourage and protect Foreign Investor
Figure: Tax incentive for Investment project in Vietnam
Source: Vietnam Amended Corporate Income Tax Law 2013 (Ref: 32/2013/QH13)
CIT rate Incentive duration CIT exemption holiday 50% reduction
period
New project included in the
list of Encouraged
Investment
22% 15 years 2 years from
generating taxable
revenue
4 years
following
exemption
period
New project included in the
list of Encouraged Areas
22% 15 years 2 years from
generating taxable
revenue
4 years
New project included in the
list of Special Encouraged
Investment and/or Special
Encouraged Areas
10% 15 years 4 years from
generating taxable
revenue
9 years
22. 22
Why Vietnam?
More than PESTEL?
The openness of Vietnamese Economy
WTO
ASEAN
APEC
TTP: Trans Pacific Partnership: top economies Japan, United
State, Singapore…Taiwan and South Korea expressed the interest to
joint.
• Investors enjoy competitive advantage coming from TPP when
invest in Vn
• Under TPP, for Vietnam Export Item such as textile, footwear
can enjoy very low import tariff to duty free
24. 24
Current situation of FDI in VN
Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012)
Source: GSO
No Country Number of
Project
Registered capital (Bil
US$)
%
Total 14522 210.52 100%
1 Japan 1849 28.7 13.6%
2 Taiwan 2234 27.1 12.9%
3 Singapore 1119 24.9 11.8%
4 Korea 3197 24.8 11.8%
5 British Virgin
Island
510 15.3 7.3%
6 Hong Kong 705 12 5.7%
7 United State 648 10.5 5.0%
8 Malaysia 435 10.2 4.8%
9 Cayman Island 54 7.5 3.6%
10 Thailand 298 6.1 2.9%
Figure: FDI in VN by Counterpart ( Accumulation as of 31.12.2013)
Source: GSO
No Country Number of
Project
Registered capital (Bil US$) %
Total 14522 210.52 100%
1 Japan 1849 28.7 13.6%
2 Taiwan 2234 27.1 12.9%
3 Singapore 1119 24.9 11.8%
4 Korea 3197 24.8 11.8%
5 British Virgin Island 510 15.3 7.3%
6 Hong Kong 705 12 5.7%
7 United State 648 10.5 5.0%
8 Malaysia 435 10.2 4.8%
9 Cayman Island 54 7.5 3.6%
10 Thailand 298 6.1 2.9%
25. 25
Current situation of FDI in VN
Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012)
Source: GSO
No Country Number of
Project
Registered capital (Bil
US$)
%
Total 14522 210.52 100%
1 Japan 1849 28.7 13.6%
2 Taiwan 2234 27.1 12.9%
3 Singapore 1119 24.9 11.8%
4 Korea 3197 24.8 11.8%
5 British Virgin
Island
510 15.3 7.3%
6 Hong Kong 705 12 5.7%
7 United State 648 10.5 5.0%
8 Malaysia 435 10.2 4.8%
9 Cayman Island 54 7.5 3.6%
10 Thailand 298 6.1 2.9%
0
2000
4000
6000
8000
10000
12000
14000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
MillionUS$
Implemented capital
Average growth rate of implemented capital from 2002-2012: 15%
26. 26
Current situation of FDI in VN
Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012)
Source: GSO
No Country Number of
Project
Registered capital (Bil
US$)
%
Total 14522 210.52 100%
1 Japan 1849 28.7 13.6%
2 Taiwan 2234 27.1 12.9%
3 Singapore 1119 24.9 11.8%
4 Korea 3197 24.8 11.8%
5 British Virgin
Island
510 15.3 7.3%
6 Hong Kong 705 12 5.7%
7 United State 648 10.5 5.0%
8 Malaysia 435 10.2 4.8%
9 Cayman Island 54 7.5 3.6%
10 Thailand 298 6.1 2.9%
Ranked the 2nd popular location for Business Expansion in ASEAN Countries
Source: ASEAN Business Outlook Surveys 2014
28. Green Industrial Park with well
developed Infrastructure System located in
Strategic location facilitates for
sustainable development
LONG HAU INDUSTRIAL PARK
30. LONG AN PROVINCE
Transit point from HCMC to MEKONG DELTA
Belong to Southern economic key points of
VN
PCI (Provincial Competitiveness Index): No. 3
of Vietnam & No.1 of the South provinces
31. 31
Long An: 4th FDI attractive Province in VN
Long An, HCMC, Dong Nai, Binh Duong account: 56% total of
Investment Project, 35 % of total registered capital
32. LONG HAU INDUSTRIAL PARK
Ho Chi Minh City People’s Committee
Tan Thuan Industrial Promotion Co., Ltd (IPC)
Phu My
Hung New
City
Hiep Phuoc
IP
Hiep Phuoc
Urban Area
Tan Thuan
EPZ
Saigon
Premium
Container
Terminal
(SPCT)
Long Hau
Industrial
Park
Master plan of HCMC Expanding to the South
33. 33
LONG HAU INDUSTRIAL PARK
Fact & figures:
Scale: 288 ha, occupancy rate 70%
No of current tenants: 122 (foreign
investors: 56)
Most attractive IP in Long An
province
One of 3 IPs in Vietnam have
environmental certificate ISO
14001: 2004 for the whole IP
(Loteco, VSIP 1, Long Hau)
34. 34
Some tenants in Long Hau Industrial park
Name Nationality Owner Industry
Wahl Vietnam Co.,Ltd USA
Wahl Clipper International
Holding B.V
Hair care machines and products
manufacturing
World Cat Vietnam Co.,Ltd Germany World Cat Limited
Puma complex village: vendor and
supplier factory leasing &
management
Swire Cold Storage Vietnam –
Long Hau Branch
AUS
Swire Cold Storage Vietnam
Co.,Ltd
Cold storage, logistic and packaging
services
Vina Astec Co.,Ltd Japan Nissho Astec Co.,Ltd
Steel and other metals components
for manufacturing and construction
Lotte Sea Logistic Company
Limited
Korea Lotte International Co.,Ltd Warehouse and packaging services
Simone Accessories Collection
Vietnam Limited
Korea Simone Co.,Ltd
Suitcase, bag, handbag and other
similar items manufacturing
MAGIC TECHWIN CO.,LTD Korea Magic LCD Co.,ltd
Electronic component, IC & LED
frame for high tech devices
Dyechem Alliance (VN) Co.,Ltd Singapore Dyechem Alliance (VN) PTE Ltd
Manufacturing chemical for textile
industry
Top cake Joint Venture Company Vietnam
Liem Thanh Jsc
Superior Stock Farm In
Millelium.inc.
Confectionary
Vina Pride seafood Co.,LTD Russia & Korea
Korean Seafood Co., ltd
Igor Redkin
Seafood processing
35. LONG HAU INDUSTRIAL PARK
70%
12%
3%
2%
2%
2%
2%
2% 2%
3%
Japan Korea Singapore France
Malaysia Australia Gemany US
Spain China
Foreign tenants by origin
23
19%
18
15%
18
15%
16
13%
14
12%
9
7%
9
7%
5
4%
5
4%
5
4%
Mechanics Food Construction material
Fashion Logistics Machinery
Chemical Packaging Consumption
Others
Foreign tenants by industry
36. 36
LONG HAU INDUSTRIAL PARK
Location: On the North South main Parkway of HCMC
12 km
19 km
3 km
30 km
38. 38
Why Long Hau IP?
Saving time
Saving cost
Sustainable
development
39. 39
Long Hau Industrial Park
Long Hau IP
Short travelling time to
HCMC and seaports
Labor force abundant
for both high skilled and
technician people and
ordinary workers
Established
Infrastructure
15 days for Business
Certificate
Strong support from
Long An province
Saving Time in transportation, recruitment, business entry…
40. 40
Long Hau Industrial Park
Saving Cost
Free:
• Legal support for start up business
• Worker Recruitment
Low cost:
• Logistic cost
• Custom office inside IP
• Virtual office, Outsourcing service : Accountant, HR
service , Reception
• Labor minimum salary in Long Hau IP is lower than
HCMC, Dong Nai, Binh Duong, Ba ria - Vung tau
• Construction Project management
41. 41
Saving time & Cost
KCN To Phú Mỹ
Hưng (km-
miniute)
Cát Lái Port
Km - minute
SPCT
Port
Tân Sơn
Nhất
Airport
Land
Price
RBF
USD
Month/ 1
m2
Tân Thuận 7 km - 15’ 11 – 20’ 20 – 35’ 20 – 45’ 250 / 30
years
6
VSIP I 42 km - 90’ 30 – 60’ 42 – 90’ 42 – 100’ 90 / 35
years
4.5
AMATA 40 km – 80’ 35 – 70’ 52 – 90’ 52 – 100’ 85 / 37
years
4.5
Long Hậu 12 km - 25’ 25 – 35’ 3 – 10’ 26 – 55’ 105/ 47
years
4 – 5
Long Hau –
Hoà Bình
35 Km – 35’ 45 – 60’ 45 – 60’ 39 – 60’ 55 / 47
Years
3.5 - 4
HCMC
Binh Duong
Dong Nai
42. 42
Sustainable Development
• Save the environment : ISO 14001 : 2004
• Customer Service ( Japanese, English, Chinese, Korean) : ISO
9001: 2008
• Monthly meeting with investors to improve customer services
• Human resource focusing IP for customers :
– Dormitory
– Convenience Store
– Kindergarten
– Leisure Service
– Language Center