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

2 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

3 I. Overview of Vietnam 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

4 Hanoi Capital

5 Hue City

6 Ho Chi Minh City

7 Ha Long Bay

8 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, 70% of the population under 40 years old, skilled and good education system conductive to economic development.

9 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% during , 7% between and 5.03% in 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

10 GDP growth in at relatively high level

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12 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 …

13 Export and Import Import-export turnover increase % / year In 2012, exports reached USD 115 bn, up 18% compared with 2011 Imports reached USD 114 bn, up 7% compared with 2011 Opening of economy is high: im-ex/GDP: 170%

14 Goods export market in 2012 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%

15 Main export goods 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 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.

17 Goods import market 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%

18 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

19 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 Value (Billion USD) ProjectsCountries, territories , , ,53558 As of 5/ ,918100

20 Top five countries FDI As of 5/2013 Japan: USD 32 bn, 1,959 projects Taiwan: USD 27 bn, 2,249 projects Singapore: USD 27 bn, 1,154 projects South Korea: USD 25 bn, 3,302 projects British Virgin Islands: USD 15 bn, 511 projects Projects Value

21 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.

22 Official Development Aid (ODA) ODA record USD 7.9 bn in 2010, 7.4 bn in 2011 and 6.5 bn in As of 2012, about USD 37 bn ODA disbursed since The major ODA donor: WB, ADB, EU, France, Germany, Japan, South Korea, Australia...

23 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

24 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% ;

25 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.

26 III. Vietnam and Slovakia relations Traditional friendship and multilateral cooperation

27 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 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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30 Trade VIETNAM EXPORT-IMPORTTWO-WAY TRADE TURNOVER Mi l lion USD

31 Trade Two-way trade turnover increased from USD 26 mn in 2006 to USD 170 mn in 2011 and USD 307 mn in 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

32 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). Finance Group J & T (investment in construction project of office buildings in HCM City). Slovak companies participated in Exhibitions in Ha Noi 2011 and 2013 ; Economic forums are organized in Viet Nam & Slovakia. Some Vietnamese companies are interested in Slovak mobile market; selling coffee, rubber, seefood to Slovakia and though Slovakia to EU countries.

33 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)

34 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.

35 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.

36 Thank you!