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Overview of Vietnam and the KeyOverview of Vietnam and the KeyEmerging MarketsEmerging Markets

Presented by: Rodney Sim

General ManagerT A Management Pte Ltd

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22Prepared by T A Management Pte Ltd 2007

About T A ManagementAbout T A Management

Project Management and Market Consultancy. Priority focus in Mekong Region countries of Vietnam,

Cambodia and Myanmar. Serve Vietnamese Clients in their projects with

Singapore partners. Conduct market studies/consultancy for Singapore-

based Clients. Inland Containers Depot Opportunities in Second-tier Provinces

of Vietnam, Containers Depot Association of Singapore. Healthcare opportunities in Vietnam, International Enterprise

Singapore. Education opportunities in Vietnam, International Enterprise

Singapore

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Outline of SessionOutline of Session Overview of Vietnam and significant recent

developments

Emerging cities and provinces in NorthernVietnam

Emerging cities and provinces of SouthernVietnam

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OVERVIEW OF VIETNAMOVERVIEW OF VIETNAM

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Economic Growth of VietnamEconomic Growth of Vietnam

Source: Asia-Pacific Economic Cooperation (APEC)

Economic Growth of Selected Countries in Asia (2003-2005)

2.9

0.5 0.4

10 10.1 10.2

4.8 5.15.65.5

7.2

4.9

6.2

5

2.9

8.7

6.47

6.2

4.5

7.37.8

8.4

5.2

0

2

4

6

8

10

12

2003 2004 2005

Year

G r o w t h i n P e r c e n t a g e

Brunei Darussalam China Indonesia Malaysia Philippines Singapore Thailand Vietnam

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GDP by Sector ContributionGDP by Sector Contribution

Manufacturing20.70%

Mining and quarrying10.52%

Hotels and restaurants3.50%

Financial activities1.80%

Transport, storage andcommunications

4.37%

Education and training3.22%

Electricity, gas and watersupply3.45%

Construction6.36%

Wholesale and retail trade13.58%

Fishing3.86%

Forestry1.20%

Agriculture15.83%

Others2.61%

Government services5.00%

Real estate and businessactivities4.01%

Source: General Statistics Office, Vietnam

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VietnamVietnam s Export & Import Trendss Export & Import Trends

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Cargo Throughput (Import & Export) ofCargo Throughput (Import & Export) of

Northern & Southern PortsNorthern & Southern Ports

Source: Vietnam Seaport Association

Import and Export Cargo Throughput Trendsin Northern and Southern Vietnam (2001-2005)

NorthNorthNorthNorthNorth South South South South South0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2001 2002 2003 2004 2005

Year

I m p o r t a n

d E x p o r t

C a r g o T

h r o u g h p u

t

( i n

' 0 0 0 m e t r i c

t o n n e s

)

14,987

27,221

24,000

29,972

35,267

13,786

18,234

21,61623,704

10,505

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Significant TrendsSignificant Trends

Accession to WTO & steadyeconomic growth.

Increasing importance &global recognition of Vietnamas a location formanufacturing activities.

Growth of Hanoi & HCMC ashub cities for services in North& South respectively,including healthcare andeducation services.

Development of industrialactivities outside Hanoi &HCMC.

Vietnam government reducedGDP growth target to 7%.

Annual inflation hits more than20% in April 2008.

Commercial banks are limiting

loans to individuals andenterprises.

Some factories face workers

strike.

Standard & Poor cut outlookon Vietnams sovereign rating

from stable to negative.

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1010

Northern VietnamNorthern Vietnam

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GDP ComparisonGDP Comparison -- Northern VietnamNorthern Vietnam

Source: Hai Duong Statistical Yearbook 2005, GSO Vietnam

Comparison of GDPs among Selected Provinces inNorthern Vietnam (at current prices) (2005)

4,395.38

1,302.94

520.94 597.81 853.44 514.88948.44

663.94300.94 264.69

630.88187.50

-

1,000

2,000

3,000

4,000

5,000

Hanoi Hai

Phong

Bac Ninh Vinh

Phuc

Hai

Duong

Hung

Yen

Ha Tay Thai

Binh

Ninh

Binh

Ha Nam Nam

Dinh

Lao Cai

Province

U S

$ m i l l i o n

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GDP Per Capita ComparisonGDP Per Capita Comparison Northern VietnamNorthern Vietnam

Source: Hai Duong Statistical Yearbook 2005, GSO Vietnam

Comparison of GDP Per Capita among Selected Provincesin Northern Vietnam (at current prices) (Year 2005)

1381

730

522 513 499 456

376 359 329 321 322 312.5

0

200

400

600

800

1000

1200

1400

1600

Hanoi HaiPhong Bac Ninh VinhPhuc HaiDuong HungYen Ha Tay ThaiBinh NinhBinh Ha Nam NamDinh Lao Cai

Province

G D P

P e r C a p i t a

i n U S $

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HANOIHANOICITYCITY

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Hanoi CityHanoi City s Key Indicatorss Key IndicatorsIndicator Value

Economic structure Primary: 1.7% Secondary: 40.8% Tertiary: 57.5%

GDP at current prices (year 2005) US$4.4 billion.

Economic growth (estimated) 11.6%Registered FDI (from 1998 to 2005) US$12 billion

Key foreign investors origin China Japan Taiwan

Key products Electrical products Electronics Aluminum products

Population size (year 2006) 4 million

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Significant Development TrendsSignificant Development Trends

Highest concentration of industries in NorthernVietnam, second highest after HCMC.

Rapid development to catch up with HCMC.

Entrenched hub for business services in

Northern Vietnam due to its political importanceand strategic location.

Important consumers market due to increasingaffluence of the urban population.

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BAC NINHBAC NINH

PROVINCEPROVINCE Province has 12

industrial parks.

Third Vietnam-Singapore

Industrial Park(VSIP).

Prominent

manufacturersinclude Canon andFujitsu.

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Bac Ninh ProvinceBac Ninh Province s Key Indicatorss Key IndicatorsIndicator Value

Economic structure Primary: 25.7% Secondary: 47.1% Tertiary: 27.2%

GDP at current prices (year 2005) US$520.94 million

Economic growth (estimated) 14.5%

Registered FDI (from 1998 to 2005) US$290.7 million

Key foreign investors origin Japan Korea Taiwan

Key products Automotive components & parts Electronics & electrical components Textiles & garments

Population size (year 2006) 1 million people

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Significant Development TrendsSignificant Development Trends

Province developing as an important manufacturing &service centre in Northern Vietnam.

Becoming a centre of distribution of goods from Guangxi,China e.g. Unilever.

A location for the development of urban-industrial park

e.g. Foxconn, VSIP, Orix. Province has plan to develop an Inland Containers Depot

& to establish the province as a trans-shipment hub.

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HAI DUONGHAI DUONG

PROVINCEPROVINCE Industrial province nearto the ports in HaiPhong & Quang Ninh.

Main imports

Leather

Fabrics Chemical

Main exports

Footwear Garment & clothing

Frozen meat

Pickled cucumber

Cakes (green bean)

E i I di tE i I di t E i St tE i St t

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Economic IndicatorEconomic Indicator Economic StructureEconomic Structure

Source: Hai Duong Statistical Yearbook 2005

4 0

. 6

3 4

. 9

2 4

. 5

4 1

. 8

3 3

. 9

2 4

. 3

3 5

. 4

3 6

. 6

2 8

3 5

. 8

3 5

. 7

2 8

. 5

3 6

. 8

3 5

2 8

. 2

3 4

. 8

3 7

. 2

2 8

3 3

. 4

3 7

. 8

2 8

. 8

3 2

3 9

. 6

2 8

. 4

3 0

4 1

. 5

2 8

. 5

2 8

. 3

4 2

. 4

2 9

. 3

2 7

. 2

4 3

. 3

2 9

. 5

0%

20%

40%

60%

80%

100%

P e r c e n t a g e

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Changes in Hai Duong Province's Economic Structure(1995 - 2005)

Primary Sector Secondary Sector Tertiary Sector

GDP of US$853 million in 2005

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Foreign Direct InvestmentsForeign Direct Investments

Hai Duong Province's Source of Foreign Investment(Year 2005)

Taiwan54.08

United States20.45%

Others4.00%

China2.21%Australia

2.26%

Korea5.93

Japan2.29

Hong Kong

3.53%

Singapore2.11%

United Kingdom2.07% Canada

1.06%

Registered FDI of US$1.6billion as at May 2007.

Types of industries:

Garment & footwear

Electronics

Agro-processing

Automotive-related

Leading Enterprises:

Ford Brother Industries

Sumiden Vietnam

C f D i B i i H i D P iC f D i B i i H i D P i

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Cost of Doing Business in Hai Duong ProvinceCost of Doing Business in Hai Duong Province

Cost item Cost Remarks (if any)

Rental of industrial land (with infrastructure) US$33 to US$41 per m For 49 years Not including value-added tax (VAT)

Power supply- 4.00 am to 6.00 pm- 6.00 pm to 10.00 pm- 10.00 pm to 4.00 am

- US$0.06 per kwh- US$0.11 per kwh- US$0.03 per kwh

Not including VAT

Clean water US$0.30 per m Paid monthly

Average salary of unskilled worker US$50 to US$75 Monthly

Average salary of staff US$70 to US$120 Monthly

Average salary of engineers and technicians US$110 to US$150 Monthly

Average salary of head of department US$230 to US$400 Monthly

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2323

Southern VietnamSouthern Vietnam

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GDP ComparisonGDP Comparison Southern VietnamSouthern Vietnam

Source: Dong Nai Province Statistical Yearbook 2006

Comparison of GDPs Among Selected Provinces in SouthernVietnam (at constant 1994 prices) (2006)

6.23

2.65

1.370.58 0.57 0.52 0.48

0.19

0.00

1.002.00

3.00

4.00

5.00

6.00

7.00

Ho Chi Minh City Ba-Ria-Vung Tau Dong Nai Binh Duong Tien Giang Long An Tay Ninh B

Province

U S $

b i l l i

o n

HO CHIHO CHI

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HO CHIHO CHI

MINH CITYMINH CITY Tertiary sectorcontributed more than

50% of the economicactivities.

A big consumer marketand one that is ofincreasing affluence.

Emerging and growingmiddle class.

A centre for distributionactivities due to itsestablishedinfrastructures.

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Ho Chi Minh CityHo Chi Minh City s Key Indicatorss Key IndicatorsIndicator Value

Economic structure Primary: 1% Secondary: 48%

Tertiary: 51%

GDP at current prices (year 2005) US$11.6 billion

Economic growth (estimated) 12.2%

Registered FDI (from 1998 to 2005) US$15.87 billion

Key foreign investors origin Taiwan South Korea

SingaporeKey products Garment

Footwear Agricultural products Electronics

Population size (year 2006) 7 million

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Significant Development TrendsSignificant Development Trends Expansion of the city & the increase in costs led to need

to shift port activities to Ba Ria-Vung Tau Province.

New international airport will be built in Long ThanhDistrict, Dong Nai Province.

High value manufacturing activities will likely grow with

the investment of US$1 billion by Intel Corporation. Lower value manufacturing moving to other provinces

such as Binh Duong and Dong Nai provinces.

Ba RiaBa Ria --

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Ba RiaBa RiaVung TauVung Tau

PROVINCEPROVINCE 120 km from HCMC. Traditional Oil & Gas

Region. Increasingly

becoming thelocation for domestictourism.

The port and logisticsactivities will be thenext big thing.

FUTURE PORT DEVELOPMENT

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IN SOUTHERN VIETNAM

BINH DUONGBINH DUONG

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BINH DUONGBINH DUONG

PROVINCEPROVINCE 13 km from HMC. An industrial province with

numerous industrial park,including the two Vietnam-Singapore Industrial Parks.

Development of higher end

residential townships suchas the Canary Project bythe Guocoland Group andthe Oasis Project.

A new international classwomen and childrenhospital to be managed byThomson Medical Centre ofSingapore.

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