Embassy of Vietnam in South Africa Cape Town, 26 June 2015 Vietnam: Trade, Investment & Tourism Potentials

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 ( )

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 2 nd largest exporter of rice. The world 2 nd 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 4 th largest exporter of natural rubber. The world largest exporter of pangasius fish with 90 % of the world market share.

Import in 2014 ItemAmount (bill. USD) Machineries, manufacturing equipments and spare parts 22.5 Electronic and PC, components 18.8 Fabrics9.5 Fuel and petrochemicals 7.6 Iron and steel 7.6 Plastic materials 6.3 Materials for textile and shoe leather 4.8 Fertilizers1.3 Total148

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 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 Export 115, , , ,061 Import 73, , , TOTAL 188, ,

Bilateral trade volume

Vietnam Export to South Africa in 2014 Main items Value Millions USD Mobile phone534.6 Shoes137 Coffee23.8 Rice16.1 Pepper14.6 Cashew nuts12.4 Furniture9.8 Computers9.3 Coal6.3 Travel items6.3

Vietnam Import from South Africa in 2014 Main items Value Millions USD Dry nuts35.0 Shrimps26.8 Metal scraps20.7 Aluminium ingots14.1 Leather13.3 Plastic materials7.1 Oranges6.2 Enzymes5.5 Stainless steel5.0

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

INVESTMENT - OUTBOUND

Why doing business with Vietnam? Political, security stability Competitive man power Open Policy Rapid economic integration Ideal Hub Strategic geographical location Strategic Partner Economic Growth Big potential market Strategic geographic location

- Standard rate 22%, to be reduced to 20% from 1/1/ % (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 1 st 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 22.2% 42.9% 8.52% 14.48% 11.9%

TRADE

TOURISM - INBOUND Vietnam is a new destination to the world. In 2014: 7.87 million foreign visitors, including from : China: 2 million South Korea: 0.9 million Japan: 0.7 million USA: 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?