Mr. Le Xuan Duong
Director – Export Promotion Center
Vietnam Trade Promotion Agency
Email: lxduong@vietrade.gov.vn
Bangkok - 23/5/2013

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At present, Vietnam is undergoing a market oriented economy with growing agricultural, industrial and service sectors. The trade, infrastructure, telecom, construction, transportation, banking, finance, tourism, … increasingly contribute to the growth of Vietnam’s economy.
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In recent years, despite the world and domestic difficulties,
Vietnam is still one of fast growing economies in Asia. The main drivers: export, investment & private consumption.
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Vietnam’s Mekong river delta (MRD) including 13 provinces and cities in southernmost of Vietnam, is the center for rice production, aquaculture and aquatic products processing that contribute considerably to Vietnam’s export turnover.
The area is also one of nation’s biggest energy and tourist centers.
Bangkok - 23/5/2013

Population (2012) :
Labor force (18 –60 years old) :
92 mill.
52 mill.
Total GDP (2012 at real value)
*GDP’s growth:
*GDP per capita income :
$138 bill.
+5.03%
$1500
*GDP Structure (% of real value):
*Agriculture, forest, fishery
*Industry and construction
* Services
21.7%
40.6%
37.7%
Bangkok - 23/5/2013

Under policy of "multi-lateralization and diversification" of international relations, Vietnam has integrated more deeply into the world and regional economy:
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Signed BTA with many countries (incl. US, EU, Japan);
Accession to WTO from Jan. 2007
Member of ASEAN, ASEM, APEC.
Participating in FTA and Partnership Agreements that
ASEAN signed with China, Japan, India, Korea, Australia and New Zealand. Signed FTA with Chile.
Negotiating FTA with EU, Korea, Russia-Belarus-Kazakstan
Customs Union, TPP with 10 other countries, incl. USA.
Bangkok - 23/5/2013

Despite of global economic downturn during 2010-2012:
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Export of commodity: US$ 114.6 billion, up 18,3% from 2011
-Domestic companies 37% (US$42,3 B), up 1.3%
-FDI companies 63% (US$72,3 B) up 31% (incl. crude oil)
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Export surplus US$285 mill. (high export by FDI companies)
Export value = 81% of GDP (2011: 80%).
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Vietnam - Top World Exporter for:
1st place: pepper; cashewnut
2 nd place: rice; coffee
4 th place: footwear; natural rubber
5 th place: textile & apparel; tea
Bangkok - 23/5/2013

TT Countries/ Regions
TOTAL (bill. US$)
1 EU 27
2 USA
3 ASEAN
4 JAPAN
5 CHINA
6 KOREA
7 HONG KONG
8 AUSTRALIA
9 TAIWAN
10 INDIA
2012
Export Import XNK
114.65
114,35 229.00
20.27
19.56
8.78
5.20
29.05
24.76
17.30
13.09
12.24
5.59
3.70
3.18
2.04
1.80
20.78
11,67
28,93
15,60
0,98
1,80
8,64
2,12
38.08
24.76
41.17
21.19
4.68
4.98
10.64
3.92
Bangkok - 23/5/2013

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Largest industry: more than 2500 enterprises /over 2 million workers
Key export sector increase 21% a year in recent years ($15.3B. in 2012)
More than 60% export orders are processing for international brands
Largest importers: USA (40%), Japan (10.3%), EU, Korea, South America
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About 400 enterprises /over 0.5 million workers
80% export orders are processing for international brands
Largest importers: USA (32%), EU, Japan, Korea
Key export sector $7.26B for footwear and $1.5B for handbags
Bangkok - 23/5/2013

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Almost by FDI manufacturers: Samsung, Sony, Panasonics, Canon,…
Export in 2012 at $7.9B, up 69%
Main markets: China (24%), EU, US (11%), Malaysia
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Almost by FDI manufacturers: Samsung, Nokia
Export in 2012 at $12.64, up 98%
Main markets: EU (44%), Saudi Arab, Russia, Hong Kong
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Both industrial factories and craft villages – high competitiveness
Export in 2012 at $4.6B
Main markets: US (38%), China (16.2%), Japan (15%), EU
Bangkok - 23/5/2013

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Fast growing industry of 35% / year in last decade
There are 200 enterprises (80 in the South)
Export $1.5B up 17% (shopping bags, plastic ware)
Main export markets: Japan, US, EU, China, Cambodia, Thailand,…
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Traditinally in the villages by SME and family businesses
Products of variety: from Bamboo & rattan wares (33%), portery & porcelain ceramics (30%), art objects, embroideries, lacques, craft textile and other craft products
Main export markets: : Japan, US, EU, Taiwan, Cambodia, Thailand
Bangkok - 23/5/2013

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Export: 9.51 mill. MT / $8.4 B
Export: 15.57 mill. MT / $1.26 B
(New policy for crude oil & coal: less for export, more for domestic use)
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Export 1.92 mill. MT/ $1.85B
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Export 1.94 mill.MT / $1.62 B
Export $5.54 B
Export $4.5 B
Bangkok - 23/5/2013

Traditional agriculture production country in South-East Asia
+ Warm tropical climate: high humidity & rain falls;
+ 65% of total population (92 mill.) working in agriculture and aquaculture;
+ Contribution 22% to total GDP;
+ Secured domestic food supply and spared for exports.
*Total export:
- Main agriculture and forest products: US$ 17.7 billion
- Aquatic and seafood products: US$ 6.2 billion,
Bangkok - 23/5/2013

*RICE: Export 8 mill. MT / $3.7B
- Production: 42.3 mill. MT (3 crops: WS-SF-FW)
- Export markets: Indonesia, Philippine, Africa, Mid-East, China,..
*CASSAVA (starch, dried chips): Export. 4.2 mill. MT / $1.33B
- Production: 10 million MT (roots)
- Export markets: China (95%)
*CORN: Domestic use only
- Production: 4.65 mill. MT
*NATURAL RUBBER:
- Export 1.01 mill. MT / $2.83B
- Production: 811,600 MT;
- Export market: China (70%), USA, Japan, Korea, Russia.
Bangkok - 23/5/2013

COFFEE (Robusta): Export 1.73 mill. MT / $3.69 B
*Production: 1.17 mill. MT
*Export markets: USA, Germany, Japan, Netherland,
CASHEW: Export 0.22 mill. MT / $1.48 B
*Production: 318,000 MT;
*Export markets: USA (33%), Japan, India, Netherland
PEPPER: Export 119,000 MT / $808 M
*Production: 120,400 MT;
*Export markets: USA, India, Pakistan, Mid-East ,..
TEA: Export 148,000 MT / $226 M
*Production: 888,600 MT
*Export markets: Indonesia, Russia, Germany, Arab Saudi
COCO production: 1.19 million MT ;
Bangkok - 23/5/2013

- ORANGE, MANDARINE:
PINEAPPLE:
BANANAS:
MANGO:
700,000 MT
533,000 MT
1,670,000 MT
595,800 MT
GRAPE FRUITS:
LONGAN:
417,600 ha
616,400 MT
LITCHI, RAMBUTAN (chom chom): 700,000 MT
Bangkok - 23/5/2013

About 250 processing plants (80% in South and Central of Vietnam).
*Main export products
Frozen Shrimp & prawn:
- Frozen Catfish (Basa & Tra - pangasius)
- Frozen Tuna fish,
- Frozen Cephalopods & Bivalve mollusks
(cuttlefish, squid, octopus, clamps, scallop,…
- Ready-to-cook seafood meals
- Canned seafood
*Largest markets:
JAPAN (31%), USA (25%), EU (10%), ASEAN (7%),
KOREA (6%), China (5%), others (16%).
Bangkok - 23/5/2013

Total import
1 Machine, equipment, parts
2 Computers, electronics,
3 Petro gas & Diesel oil
4 fabrics
5 Steel
6 Phones & cell phones, access.
7 Materials, access. for apparel, footwear
8 Chemicals
9 Metals other than steel
10 Chemical products
11 Animal feed
Bangkok - 23/5/2013
2012 Up from bill. US$
2011
114.35
7.1%
16.03
13.10
8.89
7.05
5.98
4.98
3.18
3%
66.8%
-10.0%
4.7%
3.4%
82.4%
7.9%
2.78
2.67
2.46
2.42
2.3%
-1.1%
2.9%
2.0%

 60% of population are under 35 year old;
 Rising per capital income;
 High rate of FDI in the local marketoriented industries (consumer products, chemicals, mechanicals, real estates, building materials…).
Bangkok - 23/5/2013

More attention to quality , not to number of registered projects;
Promote FDI projects by industries/ areas to exploit maximum potential of country’s variously geographic areas.
Better licensing approval process
Better inspection of FDI performances
Better assessment regarding efficiency, especially for large projects, in large area of land use, use of minerals and natural resources and projects with high risks of water/soil/air pollutions;
Cancelation of FDI licenses for non-performance projects
Bangkok - 23/5/2013

- High-tech production : high technology and modern equipment,
Bio-tech products, telecom, electronics, clean & green industries;
Infrastructure (roads, bridges, ports, airports, subways…) under
ODA, BT, BOT;
Education & training, vocational training : universities, schools
Health care: hospitals, pharmaceutical productions
Environment : - industrial water treatment, waste and rubbish treatment, other environment measures,…
Supporting/ Auxiliary industry : materials, supplies and spare parts for textile & garment, footwear, auto,…
- Manufacturing industry : to produce competitive products for export and domestic consumption
Bangkok - 23/5/2013

Good Growth : Food & beverage, pharmaceutical, education.
Stable Growth : Telecommunications, household goods, financebanking and health care.
Weak Growth : Computer - visual equipment, electronic appliances and equipment, furniture, travel services.
Flat Group : Automotive, personal care products, entertainments
Bangkok - 23/5/2013

- Location at the center of rapid development of South East Asia.
Political stability and Vietnam’s position in the international arena is more and more enhanced.
Abundance of natural resources and competitive labor costs
Very competitive in export of agriculture, aquatic products, manufacturing products, especially textile, footwear, furniture).
Investment environment and market economy are improving and in conformity with international practices.
Bangkok - 23/5/2013

> Preferential tax break:
10%, 15%, 20% depends on industrial sectors and geographical areas.
> Reduction and exemption of enterprise income tax :
- Exemption: maximum first 4 years
- Reduction: 50% discount in the next 9 years.
> Import duty exemption:
For equipment, machinery, means of transport, construction materials,… related to production, which are not available domestically.
> Reduction for rent of land:
Subject to local authorities and geographical areas.
Bangkok - 23/5/2013

TT Countries
EXPORT
2012
IMPORT
2012
Increase %
TOTAL (BILL.)
1 Cambodia
2 Thailand
3 Laos
4 Myanmar
6.05
2.82
2.69
0.42
0.12
6.87
0.46
5.87
0.43
0.11
7.9
7.9
-8.0
-6.0
29.0
-Annual joint trade fairs in Cambodia, Laos, Myanmar
-Annual Vietnam Expo in Hanoi with free booths for CLM
-Thai trade fairs in Vietnam
-Seminars on various subjects in Mekong countries
Bangkok - 23/5/2013

 Vietnam-Korea trade relations have steadily grown since the two countries set up diplomatic relations in 1992.
 Vietnam-Korea signed the Treaty on Investment Protection and Encouragement and the Treaty on double-tax avoidance;
 Korea signed the agreement on ASEAN-Korea;
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Korea’s FDI is ranking number 2 in Vietnam with 2600 projects registered at US$25 billion.
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Korea’s investment focuses in sectors: industrial production, industrial park infrastructure, real estate, manufacturing industries (textile & garment, footwear, mechanicals …)
Bangkok - 23/5/2013

 Developing a strong and in-depth friendship in politic, economic, diplomatic, cultural, tourism and labor cooperation.
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The Government of Vietnam is willing to share and solve the problems and to encourage Korean enterprises to expand investment and business in
Vietnam, especially in infrastructures, ports, energy, urban development, high-tech industrial production, auxiliary industries, agriculture.
VIETRADE – The Vietnam Trade Promotion Agency
(Ministry of Industry and Trade) is in collaboration with Korean trade promotion organizations such as
ASEAN-Korean center (AKC), KOTRA, KITA, KOIMA, for organizing many business matching programs and seminars for Vietnamese and Korean companies.
Bangkok - 23/5/2013

Bangkok - 23/5/2013