VIETNAM – A STRATEGIC LOCATION FOR GROWTH

 
 

In Asean, Vietnam has:
 The third (3rd) largest population, over 90 millions inhabitants:

  • Large pool of young and competitive labor force
  • Attractive consumer market, with an increment of urbanization and market size

 Rapid and attractive international trade privileges:

  • Favorable trade terms with majority economies (AEC, WTO, EVFTA, TPP and FTAs with other countries such as Japan, Korea, Israel, Hong Kong, Australia, New Zealand, etc.)
  • High industrialization due to the increasing of foreign direct investment. Total 23,600 FDI projects with value US$30.6 billion until June 2017

 Political stability
 Economic indicators: % YoY growth (2017F)

  • GDP growth is 6.2%
  • Import growth is 9.1%
  • Export grwoth 8.2%

 Strategic location: proximity to East Asia

 

 

SOCIALIST REPUBLIC OF VIETNAM
CAPITAL: HA NOI
AREA: 332,698 km2
POPULATION: nearly 95.3 million (2017), ranked as the 14th largest in the world.
GOVERNMENT: Single Party System by the Vietnamese Communist Party
AVERAGE AGE: 30.8
NUMBER OF ETHNICS: 54
CURRENCY: Vietnamese Dong (VND) 1US$ = VND22,745 (December 2017)
GDP per capita: US$2,400 (est. 2017)
GDP value: US$224.6 billion (est. 2017)


DOING BUSINESS IN VIETNAM

Vietnam – Facts & Figures

 

 

1      South Korea : US$7 billion

     Japan : US$2.58 billion

3       Singapore : US$2.41 billion

4       China : US$1.88 billion

5       Taiwan : US$1.86 billion

 

 



                    

 

 

 

VIETNAM IN AEC AND INTERNATIONAL

Vietnam, not only with her key competitivenesses such as:

  • Strategic location in South East Asia
  • Young and competitive workforce
  • Continuing economic growth and strengh
  • Attractive market size
  • Natural resource
  • Open and friendly business environment
  • Safe and stable destination
  • Supportive and non-stop improving Government and Government policy

… but also with her global trade integration with 56 economies and economic groups in the world including WTO, ASEAN, ASEAN-Australia-New Zealand, the EU, The Eurasian Economic Union, Japan and the Republic of Korea (South Korea), those help Vietnam strengthen her competitiveness in terms of the global economic integration and create an intensive attraction to foreign investors and local enterprises to get ease at doing business in Vietnam.

Moreover, Vietnam has signed the Trans-Pacific Partnership (TPP) and will enhance the free trade between ASEAN and the Regional Comprehensive Economic Partnership.

The global economic integration has boosted the development for Vietnam, improved the production capability and capacity, fostered the economic reforming and restructuring, and especially help to attract more foreign direct investment upon to her business cooperation with related countries in the economic groups.

Furthermore, the global economic integration helps Vietnam to achieve advanced technology and managerial skills in every aspect of industry and economy as well as the society. Engaging in the regional value chains and manufacturing networks, shifting from processing and manufacturing with advanced technology will help Vietnam to increase more added values for the investors

With positive and serious resolutions and improvement to gain weight in international standards, economic indicators and regional economic ranking, it helps Vietnam to bold and profound a higher profile, to highlight the brand awareness and generate the advantages in the development in general, in international trade negotiation and attarcting more and more foreign investments.

 

 

VIETNAM IN ASEAN ECONOMIC COMMUNITY – AEC

What is AEC and how it influences in Vietnam and what will be the risks and opportunties for Vietnam when being a member in AEC?

 

What is AEC?

  • AEC stands for ASEAN ECONOMIC COMMUNITY, established on December 31st, 2015, is major milestone in the regional economic integration agrenda in ASEAN, offering the opportunities in the form of a huge and general market of US$2.6 trillion and over 622 million people.
  • The AEC will contain of 10 ASEAN members – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

 

Why AEC established?

With the cooperation and integration of 10 economies in South East Asia, according to the ASEAN leaders, AEC Blueprint 2025 has been adopted, consisting of five characteristics:

1. Creating the highly integrated, united and cohesive market economy including:

  • Trade in Goods
  • Trade in Services
  • Investment Environment
  • Financial Integration, Financial Inclusion, and Financial Stability
  • Facilitating Movement of Skilled Labor and Business Visitors
  • Enhancing Participation in Global Value Chains

 

2. Making an ASEAN dynamic, innovative, and competitive, contains of:

  • Effective competition policy
  • Consumer protection
  • Strengthening intellectual property rights cooperation
  • Productivity-driven growth, innovation, research & development, and technology commercialzation
  • Taxation cooperation
  • Good governance
  • Sustainable economic development
  • Global megatrend and emerging trade-related issues

 

3. Enhancing the connectivity and sectoral cooperation

 

4. Making a resilient, inclusive, people-oriented, and people-centred ASEAN, including:

  • Strengthening the role of micro, small and medium enterprises
  • Strengthening the role of the private sector
  • Strengthening the role of the state-owned sector

 

5. And a global ASEAN.

So far, AEC has engaged in the following main agreements such as:

  • ASEAN Trade in Goods Agreement (ATIGA)
  • ASEAN Framework Agreement on Services (AFAS)
  • Movement of Natural Persons (MNP)
  • Mutual Recognition Agreement (MRR)
  • ASEAN Comprehensive Investment Agreement (ACIA)

 

 

Deeper integration into the AEC in the coming period will bring both new opportunities and chanllenges for Vietnam.

 

 

 

Four Pillars of The AEC:

 

 

 

VIETNAM in FTA with: