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					     Doing Business with Vietnam
Asia Pacific Business Opportunities Conference 2010
  Don Nay, Senior Commercial Officer, U.S. Embassy Hanoi
                                 Geography


• Extending 1,650 km north
  to south, Vietnam is only 50
  km across at its narrowest
  point
• Low, flat delta in south and
  north; central highlands;
  hilly, mountainous in far
  north and northwest
                                  Population

•    1   China       1,336,880
•    2   India       1,179,407
•    3   U.S.          309,042
•    4   Indonesia     231,370
•    5   Brazil        192,762
•    6   Pakistan      169,206
•    7   Bangladesh 162,221
•    8   Nigeria        154,729
•    9   Russia         141,927
•   10   Japan         127,380
•   11   Mexico        107,550
•   12   Philippines     92,227
•   13   Vietnam         85,789
                               The People


* Age Structure—26 % 14
  and under ; 75% born after
  1975
• Religion—Buddhist 9.3%,
  Catholic 6.7%, Hoa Hao
  1.5%, Cao Dai, 1.1%, none
  80.8%
                           People, continued


• Ethnic Groups
  --86%: Kinh (Viet)

  --14%: Tay, Thai, Muong,
  Khome, Hoa , Nun, Hmong…

• Median Age: 27.4 years

• Literacy: 90.3%

• Urbanization: 28%
                                Labor Force


•   43.87 million (2009 est.)
•   agriculture: 51.8%
•   industry: 15.4%
•   services: 32.7% (2009)
•   country comparison to the
    world: 13
                                      Growth!


• Real income has grown an
  average of 7.2 percent per year
  over the last decade

•   GDP per capita has gone from
    $189 in 1993 to $1,052 in 2009.

•    Vietnam’s poverty rate has
    fallen from 58 percent in 1993
    to 12.3 percent in 2009.
                     Economic Milestones


• 1986 Doi Moi reforms proclaimed
• 1995 U.S. and Vietnam reestablish diplomatic relations;
  Vietnam joins ASEAN
• 2001 Vietnam and U.S. sign BTA
• 2005 PM. Phan Van Khai visits the U.S., the first Vietnamese
  leader to do so since the VN war ended.
• 2007 Vietnam becomes the 150th member of the WTO,
  Commerce Secretary leads trade mission to Vietnam
• 2008 PM Nguyen Tan Dung visits the U.S.
                                Economy


• GDP—5.3% (2009)

• 6.2% (2007)

• 6.5 (2010 target)

• GDP -- $92.8 billion (2009)
Growth vs. Inflation
                   U.S. Exports to Vietnam
                   Grow by 11% in 2009!

•   Vehicles:     445,968
•   Machinery:    368,391
•   Iron/Steel:   236,820
•   Meat:         221,340
•   Cotton:       171,770
•   Plastics:     150,012
•   Feed:         134,180
                               Trading Partner


• The GVN is committed to deepening its trade relations with the United
  States.

•   In 2009, the United States was the largest foreign investor in Vietnam.

• Engaged partner in Bilateral Investment Treaty (BIT) talks and our
  bilateral Trade and Investment Framework Agreement (TIFA)
  negotiations.

• Vietnam participated the first round of Trans-Pacific Partnership (TPP)
  talks last month in its associate status this year.
U.S./Vietnam Collaboration

        • Science and technology
        • Technical assistance and
          capacity building
        • Water management
        • Climate change
        • Nuclear safety
        • HIV/AIDS, AI, etc.
                            Challenges


• Infrastructure (ports,
  airports, roads, power,
  and HR)
• Inflation
• Human rights
• Corruption
• Red tape
• Environment
      State Owned Enterprises




Ownership Component of GDP
     about 34%!
Transparency International Rank   Confidence
Corruption Perception
Index 2009
Singapore                3        9.0-9.4
Hong Kong                12       7.9-8.5
U.S.                     19       6.9-8.0
Taiwan                   37       5.4-5.9
South Korea              39       5.3-5.7
Malaysia                 56       4.0-5.1
Thailand                 84       3.0-3.8
Indonesia                111      2.4-3.2
Vietnam                  120      2.4-3.1
Philippines              139      2.1-2.7
Education reform may be the
 biggest and most important
    structural challenge.
                               Best Prospects
                      Country Commercial Guide Vietnam
                                    2010

•   Power Generation , Distribution, Transmission
•   Telecommunications Equipment and Services
•   Oil and Gas Machinery and Services
•   Information Technology Equipment and Services
•   Airport and Ground Support Equipment, etc.
•   Environmental and Pollution Control Equipment and Services
•   Education and Training
•   Safety and Security Equipment
•   Franchising
•   Medical Equipment
•   Architecture, Construction and Engineering
•   Plastics Equipment and Machinery
              How to contact us


     U.S. Commercial Service Vietnam
           Tel: {64 4 3850-5199}
  Email Hanoi: donald.nay@mail.doc.gov
Email HCMC: James.mayfield@mail.doc.gov
         www.buyusa.gov/vietnam


             www.export.gov
                              Financing


•   ODA
•   World Bank
•   Asian Development Bank
•   Emerging Private Sector
•   Ex-Im Bank and OPIC…
Opportunities: Energy

      • Double-digit increases in
        consumption
      • State owned EVN
        monopoly
      • Growing potential for
        private sector involvement
      • Renewables…
                        Environmental Issues


• Logging and slash-and-burn
  agricultural
• Water pollution and over fishing
  threaten marine life populations
• Groundwater contamination
• Growing urban industrialization
  and population migration are
  rapidly degrading environment
  in Hanoi and Ho Chi Minh City
                    Opportunities: Waste


• Production and
  consumption growth
• Need U.S. tech and
  expertise
• Modernization goals for
  2025 and 2050
                    Opportunities: Water


• Key issue, growing
  challenge
• USTDA grants
• Measurement, monitoring,
  flood remediation and
  control
• Treatment and purification,
  water resource
  management
    Opportunities:
    Green Building,
Architecture and Design

        • Crane-spotting
        • If it ain’t broke, knock it
          down
        • Short time horizon
        • Green is coming
        • Internationally driven
                Summary Points on the
                 Environment Sector

• Vietnam has environmental issues, but awareness is
  growing
• Difficult business environment, but opportunities
  abound
• Environmental Forum and business matchmaking in
  May, Hanoi and Ho Chi Minh City
  http://vietnamenvironmentalforum.com/
Vietnam’s Export Markets
                  Imports from Vietnam 2009


• 49.7 % APPAREL

• 11.3% FURNITURE

• 10.5% FOOTWEAR

•   Grand Total $12.3 billion

				
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