1. VIETNAM – AN ATTRACTIVE DESTINATION FOR INVESTORS
Dr. Lê Tuyển Cử
Deputy General Director
Economic zones Management Department, Ministry of Planning and Investment, Vietnam
USA, March 2015

2. OUTLINES
Overview of Foreign Direct Investment (FDI) attraction of Vietnam
Why should foreign investors invest in Vietnam?
Incentives policies of Vietnam for high-tech, ICT enterprises.

3. I- OVERVIEW OF FDI IN VIETNAM 1. Key Figures
Accumulation to Dec 15, 2014:
Total registered capital: billion USD
Charter capital of FDI: billion USD
101 countries are investing in Vietnam
FDI are in 63/63 cities of Vietnam
FDI joins in 18 industries
17,499 FDI projects is effective

4. I- OVERVIEW OF FDI IN VIETNAM 2. Big FDI Industries
No.
Industry
Projects
Total investment capital (M. USD)
Charter capital (M. USD) 1
Manufacturing
9,486
139,902.59
47,828.38 2
Real Estate
442
48,120.19
12,745.39 3
Construction
1,150
11,367.11
4,163.27 4
Accommodation and food & beverage service
365
11,191.65
2,664.19 5
Manufacturing and distributing electricity, gas, water, air- conditioner. 98
9,764.60
2,075.89 6
Information and communication
1,078
4,113.04
2,305.89

5. I- OVERVIEW OF FDI IN VIETNAM 3. Types of FDI
No.
Type
Project
Total investment capital (M. USD)
Charter capital (M. USD) 1
100% foreign capital
14,146
172,568.45
54,853.22 2
Joint venture
2,932
60,101.96
21,577.59 3
Build-transfer-operation, Build-transfer, Built-operation-transfer contract 12
8,175.02
1,811.89 4
Business cooperation contract
215
5,137.51
4,276.93 5
Joint stock company
193
4,586.88
1,222.95 6
Mother- son company
98.01
82.96
Total
17,499
250,667.84
83,825.54

6. I- OVERVIEW OF FDI IN VIETNAM 4. Big investment capital
No.
Country
Project
Total investment capital (M. USD)
Charter capital (M. USD) 1
Korea
4,110
37,233.55
10,543.97 2
Japan
2,477
36,891.18
11,876.94 3
Singapore
1,351
32,745.44
8,412.01 4
Taiwan
2,368
28,401.43
11,900.79 5
BritishVirginIslands
549
17,987.70
5,855.81 6
Hongkong
869
15,463.21
4,791.82 7
USA
717
10,937.34
2,616.92 8
Malaysia
484
10,768.04
3,682.88

7. I- OVERVIEW OF FDI IN VIETNAM 5. FDI of 2014
Register investment capital: billion USD
Contributed investment capital: billion USD
Export volume of FDI: billion USD (excluded raw oil at billion USD)
Some FDI projects with the capital over 1 billion USD/project granted its Investment License.

8. I- OVERVIEW OF FDI IN VIETNAM 6. Destination of FDI Enterprises
Industrial Park (IP)
Export Processing Zone (EPZ)
Economic Zone (EZ)
Hi-tech Park

9. II- ADVANTAGES OF INVESTMENT IN VIETNAM 1. Ideal location
Located at ASEAN central area
Long coasts over 1,864 miles with many international ports
Very convenient for cargo transporting and connecting with ASEAN countries, China and others

10. II- ADVANTAGES OF INVESTMENT IN VIETNAM 2. Stable economy and politics
Vietnam is one of the top 20 political-stable countries in the world
Vietnamese people are friendly. Society is order and safety.
Macro economy is stable with low inflation rate
GDP increases 7-8%/year during 10 years (5-6%/year in crisis time

11. II- ADVANTAGES OF INVESTMENT IN VIETNAM 3. Improving Infrastructure
Currently:
20 airports, including 7 international ones connecting to 40 worldwide destinations.
39 seaports, including three type of 1A under construction.
Road system is being improved and built to connect industrial parks and seaports.
Infrastructure system is more and more invested.

12. II- ADVANTAGES OF INVESTMENT IN VIETNAM 4. Abundant Labors
Currently:
90 million population, 60% of population is in working age.
Labor cost is lower than other countries in the area
Labor quality is being improved.

13. II- ADVANTAGES OF INVESTMENT IN VIETNAM 5. Large market
A market of 90 million people with increasing income, of which 30% is the middle class
Connect to big markets in the region such as ASEAN, China, Japan, Korea by multilateral and bilateral trade agreements

14. II- ADVANTAGES OF INVESTMENT IN VIETNAM 6
II- ADVANTAGES OF INVESTMENT IN VIETNAM 6. Convenient business environment
Vietnam is upgrading its policies and simplelizing administrative procedures:
Enterprise Law and Investment Law were reformed more opened and free.
Target of 2015: time for admin procedure will be decreased a half compared with current time period and as same as 6 developed countries in ASEAN and China.

15. II- ADVANTAGES OF INVESTMENT IN VIETNAM 7. Support foreign investors
Foreign Investors are supported in:
Providing information of laws, policies, investment procedures, labor market, labor resource, land rental and investment cost.
Introduction of partners and investment location
Solving difficulties and obstacles
Incentives policies of competitive investment

16. III- INCENTIVES FOR HI-TECH AND IT PROJECTS 1. General regulation
Projects of research, development, hi-tech application; hi-tech manufacturing, incubation, human resource in hi-tech: take advantage of the highest incentives of land, corporate income tax, value added tax, import-export tax
Projects with important role for hi-tech development will enjoy additional incentives by Prime Minister’s regulation

17. III- INCENTIVES FOR HI-TECH AND IT PROJECTS 2
III- INCENTIVES FOR HI-TECH AND IT PROJECTS 2. Incentives in land rental
Investment in hi-tech, IT industries will enjoy:
Invest in extremely difficult and poor area: free 100% land rental
Invest in difficult eco-socio condition area: free land rental in 15 years
Invest in others area: free land rental in 11 years

18. III- INCENTIVES FOR HI-TECH AND IT PROJECTS 3
III- INCENTIVES FOR HI-TECH AND IT PROJECTS 3. Incentives of Corporate Income Tax(CIT)
10% exemption for 15 years for hi-tech and IT investment in which:
+ Free in the first 4 years,
+ 50% in the next 9 years :
Revenue of high-tech companies or from new investment of high-tech projects
Legal software manufacturing investment

19. III- INCENTIVES FOR HI-TECH AND IT PROJECTS 4. Incentives of import tax
Project investment in hi-tech and software will enjoy:
Free import tax for fixed asset
Free import tax in 5 years from production date for materials, components (cannot produce in local market) used for investment projects.
For IT industry: free import tax for materials (cannot produce at local) for software manufacturing.

20. THANK YOU!