Japanese investment in vietnam - SY TAN TRAN LONG HAU IP

JAPANESE INVESTMENT IN VIETNAM

TRAN TAN SY Sales & Marketing Director [email protected]

LONG HẬU INDUSRIAL PARK

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CONTENT

•  Vietnam overview •  Vietnam investment environment •  Why Vietnam? •  Why Long Hau industrial Park? •  Our Customers

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Location

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Vietnam at a glane •  Area: 332,000 km2 •  Coastal line: 3.440 km •  Population: 88 million,

–  60% is under 35 years old •  Capital: Hanoi 7 MM people •  Commercial hub: Ho Chi Minh

City 10 MM •  GDP 2011 : 1,100 USD •  Official language : Vietnamese •  Location: Southeast Asia ,

bordering China, Laos an Cambodia

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REAL GDP GROWTH

Real GDP growth 5 2010 2011 2012F 2013F 2014F Developing countries 7.4 6.1 5.3 5.9 6.0

East Asia and Pacific 9.7 8.3 7.6 8.1 7.9

China 10.4 9.2 8.2 8.6 8.4 Indonesia 6.2 6.5 6.0 6.5 6.3 Thailand 7.8 0.1 4.3 5.2 5.6 Vietnam* 6.8 5.9 5.6 6.3 7.0

Source: WB The global outlook in summary, 2010-2014 * IMF World Economic Outlook April 2012

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Top 10 Urban Average Real GDP Growth in 2008 – 2025

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Vietnam FDI inflow Top 10 FDI by country ( Update Nov. 2012)

No Country No. f Projects

Registered Capital ( BN

USD) %

1 Japan 1800 29.00 14% 2 Taiwan 2266 26.39 12% 3 Korea 3159 24.65 12% 4 Singapore 1091 24.64 12% 5 BritishVirginIslands 519 15.97 8% 6 Hongkon 693 11.96 6% 7 Malaysia 432 11.34 5% 8 USD 634 10.45 5% 9 Cayman Islands 53 7.50 4%

10 Thailand 297 5.99 3% Source: Vietnam GSO

- Japan rose no. 1 from no. 3 in 2009

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FDI’s Japan into VN from 1993 - 2012

Capital Project

Unit: Million dollar. Source : Jetro.

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Japanese FDI into Thailand, Indonesia,

Vietnam

Source : Jetro

BN USD No. of projects

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HCMC and 3 around provinces Dong Nai, Long An , Binh Duong attract 45 % of FDI’s JAPAN .

HCMC No. of project: 495 Proportion: 28%

LONG AN No. of project: 53 Proportion: 3 %

BINH DUONG No. of project: 179 Proportion: 10 %

DONG NAI No. of project: 124 Proportion: 7 %

NEW DEEP PORTS SYSTEM

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INVESTORS

2012 : 574.8 MM USD 4 factories, 400 MM USD

2012 : 441 MM USD

2012: 1.2 Billion USD 2012 : 6.7 Billion USD

2010 : 1 Billion USD

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Why Vietnam?

-  Triple Religion -  Good

relationship

Attractive policy ( detail below)

Government Stability Co Communist State Member of WTO Trade Agreement w with 70 countries : U US, EU, Japan…

•  60% under 35 years old

•  94 % literacy •  Unskilled labor:120

USD/ month Competitive Labor Cost

Stable Political

Social & Culture

Tax Incentive

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Stable Political

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VN – JP Cultural Similarities

•  Triple Religion: The earliest established religions in Vietnam are Mahayana Buddhism, Confucianism and Taoism.

Tea, coffee are favorite drinkings in Vietnam Japan, Vietnam are 2 of 4 countries in the world to use chopsticks as part of their traditional eating utensils for thousands of years.

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VN – JP Relationship

Chùa Cầu, a Japanese-built in Hội An in the 16th century,

-  Sep. 1973: Establish diplomatic relations -  1986 – VN – JP Trade Agreement -  Dec. 2008 – VN-JP Economic Partnership

Agreement -  The ODA pledged for 2012 by Japan reached 1.9

billion USD & committed 2.6 BL USD for 2013 -  From 1993 to now, JP Prime Misters have visited

Vietnam 7 times and VN Primse Ministers have visited Japan 9 times

Vietnamese are friendly and like Japanese

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Labor Force •  Young and Diligent Workforce

–  60% under 35 years old

•  High Literacy Rate: 94 % •  Competitive Labor Cost

–  Unskilled worker’s monthly wage: 120 USD

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VN - JP Aging Population

VIETNAM

VIETNAM HAS A GOLDEN POPULATION STRUCTRUE

27.9% under 14 14.3%

under 14

Sources: VN GSO ; www.nationmaster.com ; www.pdsblogs.org

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Tax Incentive

•  Zero Tax on: –  Raw Material / Components For Export –  Dividends Remitted –  Capital Equipment

•  Attractive Policy: –  Incentive tax for High-Tech; scientific research; infrastructure

developer; software; healthcare… Corporate income tax 10%. Incentive: 0% for first 4 years; 50%

discount for the next 9 years

http://ebookbrowse.com/vietnam-law-guide-pdf-d78887314 Download Vietnam Law Guide by Jetro 2010

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Potential Market •  13th Most Populous Country

–  88 million people

•  GDP 2012 1,100 USD/ cap •  Average GDP last 10 year: 7.1% •  Growing Middle Class

March 2012, in Tan Phu District, HCMC

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National

Wages (US$/month) Land price/Office rents (US$) Workers (general workers)

Engineers (mid-level engineers)

Legal minimum wage

Industrial Estate (land) purchase rate

Industrial Estate rent ( RBF) (monthly, per sq.m)

Viet Nam (HCM)

114 265 79.49 100 4 - 6

Thailan (Bangkok)

263 588 183.3 92 6.89

Indonesia (Batam)

240 406 130 78 3.10 – 4.65

Philippin (Manila)

236 388 185.9 48 - 52 1.7

China (Shenzhen)

235 530 167 28 - 109 4.55

Comparative Survey of Investment-Related Costs – Jetro August 2011

Vietnam has competitive wages, only 40% of Thailan, Indonesia, Philippine, China

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Comparative Survey of Investment-Related Costs – Jetro August 2011

National

Public Utility rate Tax Electricity rate for

business use (per kWh)

Water rate for business use (per cu.m)

Gas rate for business use (per cu.m)

Corporate income tax rate

Personal income tax rate

(highest rate, %)

Valued-added tax

(VAT) (standard, %)

Tax on dividends remitted to Japan (highest rate, %)

Viet Nam (HCM)

(1) 0.028 (2) 0.051 (3) 0.099

0.69 1.1 - 1.2/kg 25% 35%

0% . 5%. 10% 0%

Thailan (Bangkok)

0.12 0.31-0.52 Rate per cu.m: 4.53 30% 37% 7% 10%

Indonesia (Batam)

0.12 1.16

Rate per 1mmBtu: 6.4 25% 30%

10%

(1) 10% (2) 15%

Philippin (Manila)

0.13 1.39-1.68 1.41/kg 30% 32% 12% 15%

China (Shenzhen)

0.03-0.16 0.47-1.44 Rate per

cu.m: 2.37 25% 45% 17% 10%

- Vietnam has lowest electricity fee. Especially, It’s free for dividends remitted

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WHY LHC?

LHC

Saving Time

Saving Cost

Sustainable Development

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Overview Long Hau Industrial Park

12 km

Location: -  12 km from Phú Mỹ Hưng -  19 km from Sài Gòn -  30 km from Tân Sơn Nhất Airport -  3 km to deep ports: SPCT, Sài gòn,

Establish : 5/ 2006 Owner: IPC ( the developer of Tân Thuận EPZ, Phú Mỹ Hưng city…) Scale: -  Long Hậu IP: 248 ha, occupancy

rate: 70% -  Long Hậu 3 (developing) 869 ha, 3.5

km from Long Hậu

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Saving Time •  Near to HCMC, •  Infrastructure ready to build •  Ready built factory available •  15 days for Business Certificate.

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Saving Cost •  Free:

–  Legal support for start up business –  Construction Project management

•  Low cost: –  Logistic : Near to port ( only 3 km) –  Virtual office: Shared office Outsourcing

service : Accountant, HR service , Reception –  Labor minimum salary in Long Hau IP is

lower than HCMC, Dong Nai, Binh Duong, Baria Vungtau

26 LONG HẬU IP LONG HẬU –

HOÀ BÌNH IP

Amata IP VSIP

TÂN TẠO IP

TÂN THUẬN

SÀI GỎN PREMIER

CONTAINER PORT

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Saving time & Cost

KCN To Phú Mỹ Hưng (km-miniute)

Cát Lái Port Km - minute

SPCT Port

Tân Sơn Nhất Airport

Land Price

RBF USD Month/ 1 m2

Tân Thuận 7 km - 15’ 11 – 20’ 20 – 35’ 20 – 45’ 250 / 30 years

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VSIP I 42 km - 90’ 30 – 60’ 42 – 90’ 42 – 100’ 90 / 35 years

4.5

AMATA 40 km – 80’ 35 – 70’ 52 – 90’ 52 – 100’ 85 / 37 years

4.5

Long Hậu 12 km - 25’ 25 – 35’ 3 – 10’ 26 – 55’ 105/ 47 years

4 – 5

Long Hau – Hoà Bình

35 Km – 35’ 45 – 60’ 45 – 60’ 39 – 60’ 55 / 47 Years

3.5 - 4

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Sustainable Development

•  Save the environment : ISO 14001 : 2004 •  Customer Service ( Japanese, English, Chines, Korean) : ISO 9001:

2008 •  Stable living environment for worker and expert:

–  Dormitory –  Convenience Store –  Kindergarten –  Leisure Service –  Japanese Language Center

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Structure of Tenants

66 58%

36 32%

5 4%

4 3%

3 3% VN

Japan Korea Eu & Us Asean

There are 36 Japanese tenants, proportion of JP companies in LHIP is 32% and almost of them are invest in precision mechanical, machinery and labor – intensive industry (garment industry)

17 47%

9 25%

4 11%

6 17%

Precision Mechamical

Garment, Leather, package, lable Machinery

Others

Japanese tenants by industry

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Our Customers

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Thank You

•  Contact information:

-  JAPANESE / ENGLISH MR. HIẾU – Foreign Account Manager Tel: +84-963 021 768 Email : [email protected] MR. LÀNH – Sales Manager Tel: +84-914 191 616 Email : [email protected] -  CHINESE MS. NGUYỆT – Sales Manager Tel: +84-902 893 337 Email : [email protected]