PRESENTATION
OF H.E. AMBASSADOR NGUYEN XUAN LUU
ECONOMIC FORUM CLUB
Bratislava, 20 June 2013
1

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
2

 Area: 331,051.4
km2
 Bordering: 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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4

5

6

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 Vietnam is gateway of Southeast Asia and North-East
Asia countries, a geopolitical location conducive to intergration and economic cooperation with other countries
 Security, political stability
 Viet 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.
8

 Economic reform (Doi Moi Renovation) from 1986
 Sustain 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 USD
 Viet Nam joined the middle-income countries
9

GDP growth in 2010-2012 at relatively high level
7
6
5
9
8
4
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP
10

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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 …
12

Import-export turnover increase 15-
20% / year
In 2012 , exports reached USD 115 bn, up 18% compared with
2011
120
110
100
90
80
70
60
Imports reached USD
114 bn, up 7% compared with 2011
50
40
30
20
Opening of economy is high: im-ex/GDP:
170%
10
0
2009 2010 2011 2012
Export
Import
13

25
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%
20
15
10
5
0
US
EU
ASEAN
CHINA
JAPAN
14

Textiles & 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,
16
14
12
10
8
6
4
2
0
Textiles and garments
Crude oil
Phone & accessories
Footwear
Aquatic products
Electronic & computer
Machinery parts
Wood products
Rice
Rubber
Coffee
Vehicles & parts
15

 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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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%
30
25
20
15
10
5
0
CHINA
ASEAN
SOUTH
KOREA
JAPAN
EU
US
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Electronic, computer & accessories: USD 13 bn
Machinery, equipment, tools, spare parts: USD 16 bn
Petroleum: USD 9 bn
Fabric: USD 7 bn
Steel: USD 6 bn
Phone & accessories: USD 5 bn
Plastics: USD 5 bn
Raw materials for textile, wear, footwear: USD 3 bn
Chemicals and Chemical products: USD 5 bn
16
14
12
10
8
6
4
2
0
Machinery, equipment, tool, spare parts
Petroleum
Fabric
Plastic
Raw materials for textile, wear, footwear
Chemicals
Chemical products
Animal feed & raw materials
Electronic
Steel
Phone & accessories
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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
2010
2011
2012
As of
5/2013
Value
(Billion
USD)
18.6
Projects Countries, territories
1,237 55
14.7
13.0
1,465
1,535
217 14,918
53
58
100
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Value
35
As of 5/2013
Japan: USD 32 bn, 1,959 projects
30
25
20
Taiwan: USD 27 bn, 2,249 projects
15
10
5
Singapore: USD 27 bn, 1,154 projects
0
Projects
South Korea: USD 25 bn, 3,302 projects
British Virgin Islands: USD 15 bn, 511 projects
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Japan
Singapore
South Korea
Taiwan
British
Virgin
Islands
Japan
Singapore
South Korea
Taiwan
British
Virgin
Islands
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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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 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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 Political and social stability
 Improve the legal environment and institutional market economy
 Reform the public sector and encourage the development of the private sector
 Improving infrastructure, transport, energy and training of human resources for development
 International economic integration activities
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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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 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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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 & Slovakia
 The two countries signed several treaties and cooperation agreements to create a legal framework for promoting bilateral cooperation.
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TWO-WAY TRADE TURNOVER
VIETNAM EXPORT-IMPORT
Mi l lion USD
350
300
250
200
150
100
50
0
2006 2011 2012
Two-way trade turnover
150
100
50
0
Mi l lion USD
300
250
200
2011 2012 export import
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 Two-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 cooperation are limited
 Investment: Slovak companies interested in the Vietnam market. Group Investment and Development of Slovakia
(BTG) has an investment project in Hoa Binh province
(Industrial park).
 Slovak companies participated in Exhibitions in Ha Noi 2011 and 2013 ; Economic forums are organized in Viet Nam &
Slovakia.

Finance Group J & T (investment in construction project of office buildings in HCM City).
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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 Vietnam 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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 Time 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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