Viet Nam

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PRESENTATION

OF H.E. AMBASSADOR NGUYEN XUAN LUU

ECONOMIC FORUM CLUB

Bratislava, 20 June 2013

1

Viet Nam

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

I. Overview of Vietnam

Area:

331,051.4

km2

Bordering: China (North),

Laos, Cambodia (West), East

Sea (East)

Population:

88,780,000

54 ethnic groups, multi religions

(

2012

),

Capital: Hanoi with

6.7

mn

Business Center: HCM City,

7.5

mn

3

Hanoi Capital

4

Hue City

5

Ho Chi Minh City

6

Ha Long Bay

7

Overview of Vietnam

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, under

40

70% of the population years old, skilled and good education system conductive to economic development.

8

II. Main economic achievements of

Vietnam in recent years

Renovation achievements

Economic reform (Doi Moi

-

Renovation) from

1986

Sustain high and stability economic growth for years,

-

GDP growth average

7.5% between

2006-2010 and during

5.03% in

2001-2005

2012

,

7%

-

GDP

2012

Industry: total: USD

41%

136 bn; Agriculture: and Service:

38%

21%

GDP,

; 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

11

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

Export and Import

Import-export turnover increase

15-

20%

/ year

In

2012

, exports reached USD

115 up

18% bn, 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

Goods export market in 2012

25

EU: USD

20 bn,

17% total exports of

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

Main export goods

Textiles & garments: USD

15

7% in 2012 bn, up

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.

16

Goods import market

China: USD

29 total imports bn,

25% of

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

17

Main import goods

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

18

Foreign investment

(Law adopted in 1988)

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

217

1,465

1,535

14,918

53

58

100

19

Top five countries FDI

Value

35

As of

5/2013

Japan: USD

32 bn,

1,959 projects

Taiwan: USD

27 projects bn,

2,249

30

25

20

15

10

5

Singapore: USD

27 projects bn,

1,154

0

Projects

South Korea: USD

25 projects bn,

3,302

British Virgin Islands: USD bn,

511 projects

15

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

20

FDI of Viet Nam in abroad:

Up to

3/2013

, Vietnam had

742 investment projects abroad with a total registered capital of USD and territories.

15.5

bn in many countries

21

Official Development Aid (ODA)

ODA record USD

7.9

and

6.5

bn in

2012.

bn in

2010

,

7.4

bn in

2011

As of

2012

, about USD

37

1993

.

bn ODA disbursed since

The major ODA donor: WB, ADB, EU, France,

Germany, Japan, South Korea, Australia...

22

Vietnam’s economic success:

The reason for

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

23

Socio-economic development indicators in

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%

;

24

Difficulties to be solved

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.

25

III. Vietnam and Slovakia relations

Traditional friendship and multilateral cooperation

26

In

2006

Nam.

President of Slovakia Ivan Gaspanovic visited Viet

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.

27

28

29

TWO-WAY TRADE TURNOVER

Trade

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

30

Trade

Two-way trade turnover increased from USD

26

2006 to USD

170 mn in

2011 and USD

307 mn in 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

31

Investment & economic cooperation

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.

32

Recommendations

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)

33

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.

34

Conclusion

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.

35

Thank you!

36

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