investment opportunities in ho chi minh city: foreign direct investment

2013

HO CHI MINH CITY OUR COMMON HOUSE

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REASONS TO CHOOSE HO CHI MINH CITY FOR

YOUR INVESTMENT

- Ho Chi Minh City is a special urban area, a large center of Viet Nam for industry, services, training - education, technology – science; a hub of international trade of Southern Key Economic Zone (including 8 provinces / cities, contributing 42% of national GDP).- GDP growth rate from 2007 to 2012 respectively are: 12.6%; 10.7%; 8.5%; 11.8%, 10.3%, 9.2% and first half of 2013 is 8.7%.

REASONS TO CHOOSE HOCHIMINH CITY FOR YOUR INVESTMENT

Firstly, the dynamic economy and pioneering enterprises

- Commercial Trading Relationships with 228 nations and territories; 2,530 representative offices from 62 nations and territories.

- 201,842 domestic enterprises, account for 48% of Vietnam; 4,728 FDI enterprises account for 39.4% of the whole nation.



- Ho Chi Minh City Stock Exchange established in July 2000 with 692 listed companies.

- 50 branches of foreign banks such as Deutsche Bank, BNP Paribas, Standard Chartered Bank, ANZ, HSBC, Citibank…



51 universities, 31 colleges, 36 vocational schools and 4 Academy Institutions such as RMIT, University of Technology, University of Health, University of Social Sciences and Humanities, British International School, Australian International School (AIS) ...

520,000 students, 130,000 -150,000 undergraduates per year.

5.1 million young laborers, accounting for 66.21% of the population of the city.


Secondly, human resources

By 2015, the city will have: - 279 Ph.D., 1,296 Masters, - 12,469 Doctors, - 1,663 Pharmacists, - 2,800 Bachelors of medical

technology (including nursing, midwife, engineer).


Thirdly, most completed Infrastructure


Thirdly, good infrastructure system

-Many launched transportation constructions such as Vo Van Kiet Highway and Saigon Tunnel, Nam Ky Khoi Nghia-Nguyen Van Troi street (connecting Tan Son Nhat Airport with downtown of the city).

-Tan Son Nhat Airport with the total area of 850 ha, direct flights to 20 nations and territories. In 2012, the airport receives 292.5 tons of goods and 9.6 millions arrivals.

-Port system : In 2012, sea port receives 64.3 million tons, river port receives 2.2 million tons; sea port can receive vessels of 10,000 DWT- 30,000 DWT;


Thirdly, good infrastructure system

Hi-tech & processing zones:- Saigon Hi-tech Park (913 ha, in which 300 ha is in operation), - Quang Trung Software City-QTSC (43 ha), - Hi-tech Medical Park (54ha), - Agriculture Hi-tech Park (90 ha)- 17 export processing and industrial zones (4,063 ha) and 7 expected industrial zones (2,089 ha) in 2020


Fourthly, the best living and working conditions

Health-care system: 103 hospitals, including:

+ 13 Hospitals under central government’s management (Cho Ray Hospital, Thong Nhat Hospital, Military Hospital, Post Hospital, Transportation Hospital),

+ 31 hospitals under city’s management,

+ 23 hospitals under district authority,


Fourthly, the best living and working conditions

Health-care system:+ 36 private hospitals, including:++ 19 polyclinic hospitals

(including 100% foreign-owned hospital - Vietnam-France hospital and 18 local-owned hospitals)

++ 17 specialty hospitals (Columbia Asia Gia Dinh International hospital, Gaya and Vietnam – South Korea hospital and 15 domestic hospitals),

168 polyclinics, 5,569 specialty clinic, 22 100% foreign capital clinics


Fourthly, the best living and working condions Recreation facilities:

+ Over 185 supermarkets and 30 department stores, 243 traditional markets, some of big names such as Aeon (Japan), Big C (France), Metro Cash & Carry (Germany), Parkson (Malaysia), Lotte Mart (Korea).

+ 92 hotels with a total of over 11,409 rooms, in which 14 five-star hotel, some big names such as Caravelle, Sheraton, Movenpick, New World, Equatorial, Legend, Renaissance Riverside, Windsor Plaza, Sofitel Plaza, Park Hyatt, Majestic.


Fourthly, the best living and working condions

Annually, 2.52 million tourists, with total revenues account for 2.3% of total service revenue. Particularly in 2012, with 3.8 million tourists and the first half of 2013 was 1.91 million arrivals.


Fifthly, good B2G dialogue

- B2G Dialogue system (doithoaidn.hochiminhcity.gov.vn) established in 2002 with main purpose of quick response to any questions of business community for all matters during doing business in Ho Chi Minh city within 05 working days.

- Monthly, Investment and Trade Promotion Center (ITPC) in collaboration with other city departments to organize dialogue meetings on tax, customs, land, investments ....and then make proposals to central government for modification and supplements of laws and regulations

http://doithoaidn.hochiminhcity.gov.vn/

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FDI ATTRACTION RESULTS


- Since FDI Law effected in 1988 up to now, total FDI projects is 4,728 projects with total capital of US$ 32.2 billion.

- Leading countries and territories : Singapore (US$ 5,86 billion), Malaysia (US$ 5,85 billion), BVI (US$ 3,59 billion), Korea (US$ 3,45 billion), Japan (US$ 2,76 billion).

- 5 leading sectors: Real estate (US$ 11.36 billion– 35.88%), Processing and Manufacturing industry (US$ 9,47 billion – 29,94 %), Education and Training (US$ 3,68 billion – 11,62 %), IT and Communications (US$ 2,31 billion – 7,33 %), Commercial Trading, Automobile repairing (US$ 1,44 billion – 4,56 %).

- UK investments : 95 projects with registered capital US$ 628 millions: Processing and manufacturing (US$ 471,5 millions), Finance-Banking-Insurance (US$ 81 millions), Mining (US$ 18 millions), logistics (US$ 13,9 millions).


- In 7 months in 2013: 240 projects with total registered capital of US$ 263 million and 68 capital increased projects with capital US$ 346 millions that make up total capital up to US$ 609 millions.

- Leading countries in FDI: Singapore (US$ 111 million), Japan (US$ 49.3 million), Germany (US$ 22.6 million), Netherlands (US$ 21.2 million), Korea (US$ 17.5 million).

- 5 leading sectors: Processing and manufacturing industry (US$ 113.7 million), Commercial Trading (US$ 87.1 millions, Information and communication (US$ 21.8 million), Science and Technology, logistic (US$ 18.9 million).

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PRIORITY INDUSTRIES FOR INVESTMENT


1. Nine high value-added services: Finance-Banking-Insurance); Commercial Trading; Logistics and Transportation services; IT and Telecommunications; Real estate; Scientific Consultant and R&D; Tourism; Healthcare; Education and training;

2. Four industrial sectors: Electronics and IT, Mechanical engineering; Rubber-Chemical; Fine Food processing.

3. Agricultures: bio-technology; plant breeding genes centers, eco-tourism agricultural development.


4. Urban development: focus on urban transport (roads, bridges, freight and passenger transportation); flooding prevention, water supply, modern information infrastructure, environment, namely:

+ Thu Thiem New Township: modern center of trade, finance, service . Total area: 657 hectares; focus on key projects: The low-rise residential area, Office Building, luxury Hotel, conference and exhibition center, commercial and financial centers, international banks; complex sports and recreational parks

+ Northwest New Township: with 9,089 ha, including international University Area with 924 ha area, estimated capital of US$ 3.5 billion.

+ Hiep Phuoc Residential and Port Township: with 3,911 ha (including industrial zone is 1,415 ha and 1,354 ha urban area).

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PRIORITY PROJECTS FOR 2011-2015

PRIORITY PROJECTS FOR 2011-20151. Electric tram route 1 (Sài Gòn – Chợ Lớn –

Mekong Delta coach station); types of investment: ODA, BOT, BT, PPP; projected invested capital: 250 million U.S. dollars.

2. Monorail route 2 (Nguyễn Văn Linh – Thủ Thiêm), types of investment: ODA, BOT, BT, PPP; projected invested capital: 350 million U.S. dollars.

3. Monorail route 3 (Gò Vấp intersection – Quang Trung Software City – Tân Thới Hiệp); types of investment: ODA, BOT, BT, PPP; projected invested capital: 200 million U.S. dollars.

4. Urban rail route 6 (Bà Quẹo – Phú Lâm roundabout); types of investment: ODA, BOT, BT, PPP; projected invested capital: 1.33 billion U.S. dollars.

5. High way route 1 (crossing districts1, 3, Phú Nhuận, and Tân Bình); projected invested capital: 716 million U.S. dollars.

6. High way route 2 (crossing districts Tân Bình, 10, 11, and Bình Tân); projected invested capital: 754 million U.S. dollars.

PRIORITY PROJECTS FOR 2011-2015

7. High way route 3 (crossing districts 10, 5, 8, 7, and Bình Chánh); projected invested capital: 500 million U.S. dollars.

8. Broadening National Route 22 (Asian Highway going through districts 12, Hóc Môn, and Củ Chi); projected invested capital: 611.9 million U.S. dollars.

9. Constructing canal 5 road in the northwestern urban area of the city; types of investment: BT; projected invested capital: 45.7 million U.S. dollars.

10. Constructing canal 7 road in the northwestern urban area of the city; types of investment: BT; projected invested capital: 50.2 million U.S. dollars.

11. Constructing canal 8 road in the northwestern urban area of the city; types of investment: BT; projected invested capital: 1 billion U.S. dollars.

PRIORITY PROJECTS FOR 2011-201512. Constructing Road connecting canal 5 and

canal 7 in the northwestern urban area of the city; types of investment: BT; projected invested capital: 11.1 million U.S. dollars.

13. International University urban area; 923.88 ha in area; projected invested capital: 2.6 billion U.S. dollars.

14. Củ Chi Institute; 105.98 ha in area; projected invested capital: 1.2 billion U.S. dollars.

15. Hospitals in Tân Kiên medical cluster; 54 ha in area (Otolaryngology Hospital, Blood Transfusion and Hematology Hospital, Cancer Hospital, Heart Institute, Practical General Hospital of Phạm Ngọc Thạch University of Medicine – Campus 2).

16. Left bank of Saigon River (the remaining segment) from Cầu Ngang ditch to Thủ Thiêm urban area; projected invested capital: 550 million U.S. dollars.

17. Leeve along Sai Gon river from Vàm Thuật to Kinh River, projected invested capital: 1,2 billion U.S dollars

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INCENTIVES FOR INVESTMENT

INCENTIVES FOR INVESTMENT

- Standard corporate income tax rate is 25%; depend encouraged sectors, investors can enjoy incentives policies:

+ Preferred tax rate: from 10% to 20% (applied for 15 to 30 years or during the project implement duration)

+ Tax exemption duration: up to 4 years.+ 50% tax reduction up to 9 years- Law on Import Duties: investors shall be

exempt from payment of import duty on materials, machinery and equipment imported in order to form fixed assets for implementation of investment projects in accordance with the Law on Export and Import Duties.

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Thank you

for your attention

investment opportunities in ho chi minh city: foreign direct investment

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