1. MARKETING PLACES INVESTMENT IN HO CHI MINH CITY

2. 16.10.2004Investment in Ho Chi Minh City2 FINAL PROJECT Members of Group 2: – Ho Hoang Hai – Le Thanh Liem – Vo Thi Thanh Nga – Le Thanh Nhan – Dau Khanh Thien Presentation: – Date: October 16 th, 2004 – Location: 1A Hoang Dieu, Phu Nhuan Dist. Members of Group 2: – Ho Hoang Hai – Le Thanh Liem – Vo Thi Thanh Nga – Le Thanh Nhan – Dau Khanh Thien Presentation: – Date: October 16 th, 2004 – Location: 1A Hoang Dieu, Phu Nhuan Dist.

3. 16.10.2004Investment in Ho Chi Minh City3 OUTLINE 1.Introduction 2.Current situation 3.Objectives 4.Strategies 5.Action plans 6.Financial project 7.Conclusion 1.Introduction 2.Current situation 3.Objectives 4.Strategies 5.Action plans 6.Financial project 7.Conclusion

4. INTRODUCTION INVESTMENT IN HO CHI MINH CITY Presenter: Ho Hoang Hai

5. CURRENT SITUATION INVESTMENT IN HO CHI MINH CITY Presenter: Le Thanh Liem

6. 16.10.2004Investment in Ho Chi Minh City6 CURRENT SITUATION Strengths:Strengths: –Stable political and macroeconomic environment. –Cheap labors with high proportion of high-skill labors. –The leaders pay attentions to the investment –Big market. –HCMC is the key centre for economy, finance and trade in the South of Vietnam. HCMC’s increasing prosperity can be attributed to its exceptional economic growth and development. HCMC has enormous market potential to make your investment a lucrative one. HCMC boasts the gate of the South to other countries

7. 16.10.2004Investment in Ho Chi Minh City7 CURRENT SITUATION Weakness: –Urban infrastructure is weak. –The local Government pays great attention to the quantity of FDI while other countries are switching their attention to the quality of FDI capital. –Service quality is not high, survice fees remain irrational and in general higher than of other regions. –Not effective in administration management. bureaucracy, corruption.

8. 16.10.2004Investment in Ho Chi Minh City8 CURRENT SITUATION Weakness: –The policy is not transparent, often change without prior notification. –Polluted invironment. –Lackness of consistent policies and plans in orientation of development –Shortness of labor force suitable to the needed-development industries.

9. 16.10.2004Investment in Ho Chi Minh City9 CURRENT SITUATION Opportunities: –A member of AFTA in which members follow the CEPT. –Vietnam joins the WTO, it is likely to be a significant destination for export oriented FDI. Threats: – Face the stiff global competition. – The crude oil price is increasing rapidly.

10. OBJECTIVES INVESTMENT IN HO CHI MINH CITY Presenter: Dau Khanh Thien

11. 16.10.2004Investment in Ho Chi Minh City11 OBJECTIVES 2001 – 2005: 2001 – 2005: –GDP average growth rate: 11% per year. State-owned sector: 9.5% per year Non State-owned sector: 11.2% per year Foreign-invested sector: 14% per year. 2006 – 2010: 2006 – 2010: –GDP average growth rate: 13% per year. State-owned sector: 11.5% per year Non State-owned sector: 13.2% per year Foreign-invested sector: 15.5% per year.

12. 16.10.2004Investment in Ho Chi Minh City12 OBJECTIVES 2001 – 2005: 2001 – 2005: State-owned sector: 19,075 billion per year (44.3%) Non State-owned sector: 11,497 billion per year (26.7%) Foreign-invested sector: 12.488 billion per year (29.0%) 2006 – 2010: 2006 – 2010: State-owned sector: 34.323 billion per year (43.0%) Non State-owned sector: 21.511 billion per year (27.0%) Foreign-invested sector: 23.946 billion per year (30.0%)

13. STRATEGIES INVESTMENT IN HO CHI MINH CITY Presenter: Vo Thi Thanh Nga

14. 16.10.2004Investment in Ho Chi Minh City14 STRATEGIES A.STP: 1.Segmentation: –FDI in three areas: Industry Agriculture Service –In Industry: FDI in hi-tech industries (mechanism, electronics, telecommunications, IT, etc.) FDI in labor intensive industries (garment and textiles, footwear, processing industries, etc.)

15. 16.10.2004Investment in Ho Chi Minh City15 STRATEGIES 2.Targeting:

16. 16.10.2004Investment in Ho Chi Minh City16 STRATEGIES 2.Targeting: –FDI in Industry accounts for 66% => Marketing FDI into HCMC in industry, focusing on hi-tech industries such as IT, mechanism, electronics, telecommunications equipment, etc. To increase the FDI in these sectors by 10% every year, accounting for over 60% of total FDI by year 2007. Incentives for large projects in these fields.

17. 16.10.2004Investment in Ho Chi Minh City17 STRATEGIES 2.Targeting: –Strongly encourage FDI in capital-intensive industries from developed countries such as the US, EU, Japan, Australia, etc. to become leading investors in HCMC instead of Asian countries with labor-intensive industries like now.

18. 16.10.2004Investment in Ho Chi Minh City18 STRATEGIES 2.Targeting: –Minimize FDI in industries which easily causes environment pollution such as poisonous chemicals, labor-intensive industries.

19. 16.10.2004Investment in Ho Chi Minh City19 STRATEGIES 3.Positioning: Compared to its competitors in neighboring countries, HCMC is remarkably stronger at political and economic stability. –Your stable success in doing business in SEA. –Investment in Hochiminh hi-tech parks – Brilliant and high marks.

20. 16.10.2004Investment in Ho Chi Minh City20 STRATEGIES B.MARKETING MIX – 4Ps: 1.Product strategy: –Double the land area of EPZs (severely shortage now), establish more HTZs and IPs. –Good intrastructure and environment protection in HTZs, EPZs and IPs and the whole city. –Labor training, esp. high skill workers. –Foreign language training -> 50% skilled labor can use at lease one foreign language as their tool of communication. –Better security service.

21. 16.10.2004Investment in Ho Chi Minh City21 STRATEGIES 2.Price strategy: –Reduce telecommunication and post office charges to the average level of ASEAN countries by end of 2005. Encourage more telecommunications companies to participate to enhance competition  lower price. –Price incentives for FDI enterprises in hi-tech zones (HTZs), EPZs and IPs (land rentals, taxes, etc.). E.g. Large projects over 10 USD mil. in hi- tech industries can be exempted from all kinds of taxes and half of land rental.

22. 16.10.2004Investment in Ho Chi Minh City22 STRATEGIES 3.Place strategy: –Better admin services, esp. granting license procedure, adjustment of investment licences (one-stop-shop), credit access, etc. –Promote investment licensing on the Internet (applied from April 01, 2004 for projects of less than 5 USD mil.) –Anti-corruption fighting  Transparency in all kinds of fee. –Establish forums for FDI investors and government officials as well as other local enterprises.

23. 16.10.2004Investment in Ho Chi Minh City23 STRATEGIES 4.Promotion strategy: –Launch a website to disseminate information on FDI in English, Japanese, French and other languages –Publish information handbooks, CD ROMs giving updated and detailed information on investment incentives, land rentals and potential local market. Also distribute them to Trade Offices, Embassies in foreign countries, esp. developed countries. –Every HCMC citizen takes part in propagandizing HCMC image.

24. STRATEGIES INVESTMENT IN HO CHI MINH CITY Presenter: Dau Khanh Thien

25. Investment in Ho Chi Minh City25 16.10.2004 STRATEGIES 1. Determine the attractive industries.  Grow rate and scale of local market.  Level of competition of local market.  Advantage of labour force, geographical location and resources  Advantage of input’s cost.  Chance to approach the export market.  Industry’s policies.  Competitors.

26. Investment in Ho Chi Minh City26 16.10.2004 STRATEGIES No.Name of IndustiesNo.Name of Industies 1Mechanics10Transportation 2Electronics11Telecommunication 3Information technology12Bank and finance 4Chemical13Tourism and Hotel 5Seafood process14Culture – Health care – Education 6Agricultural product process15Urban development 7Forest product process16Apartment building & Office for rent 8Pottery and Glass17Industies park and 9Power and water suply18

27. Investment in Ho Chi Minh City27 16.10.2004 STRATEGIES 2. Design the impressive pictures  Highlight the opportunities  Reflection the HCMC’s determination  Highlight the positive differences 3. Propaganda the impressive picture  Medias  Investment exhibitions  Seminars about investment opportunities

28. Investment in Ho Chi Minh City28 16.10.2004 STRATEGIES 4. Re-decorate the urban, apply civilized style  Recheck the our City’s development plans  Train professional planning managers  Create the civilized behaviour rules 5. Improve infrastructure and quality of prices  Reduce the price of land rent  Water and power supply  Communication system

29. Investment in Ho Chi Minh City29 16.10.2004 STRATEGIES 6. Administrative Affairs 6. Administrative Affairs Reform  ISO 9001-2000  “one door” policy

30. ACTION PLANS INVESTMENT IN HO CHI MINH CITY Presenter: Le Thanh Nhan

31. Investment in Ho Chi Minh City 31 SHORT TERM 1.Confidence of foreign investors: –Increase the contacts with the investors Annual meetings or conferences Suggestions from the investors Answer the questions and untie their problems –Improve the “one door, on seal” mechanism Improve the administration reform Enhance the management ability  Save the time, money and annoyance

32. Investment in Ho Chi Minh City 32 SHORT TERM –Improve the infrastructure Traffic and transportation system Electricity system Water system Waste water treatment system Post and telecomunication system

33. Investment in Ho Chi Minh City 33 SHORT TERM –Pay attention to the ground-clearing Exhange the ground for the house foundation Their children can work at the companies located in the industrial zones Land fund ready for investors –Create the good relationship among the managers of industrial zones Meetings Entertainment activities Exchange the experience

34. Investment in Ho Chi Minh City 34 SHORT TERM –Stabilize the workers’ life at industrial zones Low price blocks of departments Clinic and other services Traffic line Protect wokers’ right Labor law

35. Investment in Ho Chi Minh City 35 SHORT TERM 2.Favors, encouragements: –Helps in administrative affairs Administrative procedures Administrative fee –Support services for foreign investors Investment consultant Professional organization –Cost & Tax Advertising cost in the first period Tax in the expanding period

36. Investment in Ho Chi Minh City 36 SHORT TERM 3.Center for Investment Promotion: –Specific program for investment promotion Depend on period of development Favours for investors –Direct promotion: Telephone or mail Conference about investment, specific attraction Direct contact with multinational companies

37. Investment in Ho Chi Minh City 37 SHORT TERM –Information supply: Embassy, oversea Vietnamese companies… Meetings betwwen current investors & potential ones. International organization: JETRO, UNCTAD Media, interviews … –Create attraction: Training & Recruitment Aid –Financial support for investment promotion

38. Investment in Ho Chi Minh City 38 LONG TERM 1.Basic requirements about infrastructure –Evaluate the need Factors of development, production expansion, need of electricity, water, education… Trend of labor movement –Monitor and manage the infrastructure –Interdisciplinary planning –Environment preservation

39. Investment in Ho Chi Minh City 39 LONG TERM 2.Reduce the price of rent for land –Infrastructure service companies Quality and ability Experience –Location

40. Investment in Ho Chi Minh City 40 LONG TERM 3.Complement industries: –Foreign experts’ consultancy Quality and ability Experience –Special treatment and award

41. Investment in Ho Chi Minh City 41 LONG TERM 4.Complement services: –Education & training –Health care –Cultural and entertainment activities

42. FINANCIAL PROJECT INVESTMENT IN HO CHI MINH CITY

43. CONCLUSIONS PRESENTER: HO HOANG HAI