ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK

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1 Creating Sustainable Portfolio Footprint in “VIETNAM” ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK

Transcript of ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK

Page 1: ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK

1Creating Sustainable Portfolio Footprint in “VIETNAM”

ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK

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AMATA in CLMVT

MYANMAR VIETNAM

THAILAND

LAOS

CAMBODIA

YANGON AMATASMART ECO CITY50 k㎡

MAJOR INVESTORS in AMATA VIETNAMAMATA CITY CHONBURI55.21 k㎡

AMATA CITY RAYONG31.7 k㎡

AMATA SMARTECO CITY LAO PDR

200 k㎡AMATA CITY HA LONG

Quang Ninh province714 ha ‒ established in 2018

AMATA CITY BIEN HOADong Nai province

700 ha ‒ 172 factoriesestablished in 1994

AMATA CITY LONG THANHDong Nai province

410 ha ‒ established in 2015

NORTHVIETNAM

SOUTHVIETNAM

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FDI OUTLOOK Jan to Aug 2021

23.36 24.35 22.6319.54 19.12

35.60 35.47 38.02

28.53

0

10

20

30

40

50

2017 2018 2019 2020 2021

FDI by YEAR

Jan -Aug Full Year

Singapore 32.4%

Japan 16.7%

Korea 12.6%

China 9.4%

Hong Kong 7.3%

Twaiwan5.8% 15.8%

TOP 6NATIONALITY

FDI VALUE

$bn-2.1% YoY

No. of projects

-36.8% YoY

2.02

3.44

4.61

2.181.74

1.28 1.45

2.40

Jan Feb Mar Apr May Jun Jul Aug

FDI flow by month ($bn)

Chinese group share

+ + = 49%

4th waveCOVID19

Source: Ministry of Planning and Investment, Vietnam

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VN’s ADVANTAGES LABOUR FORCE

-

50

100

150

200

250

300

350

400

0 25 50 75 100 125 150Avg. minimum wage / month (2020) @USD

Labor force in total (2020) @mil. People

LABOUR MARKET ANALYSIS

INDONESIA

VIETNAM

THAILAND

MYANMAR

CAMBODIA

LAO PDR

PHILIPPINES

MALAYSIA

Avg minimum wage

Literacy rate ages 15 and above

Source: Populationpyramid.net Source: World Bank

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VN’s ADVANTAGES COST & POLITICAL STABILITY

-1.4

-1.2

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

POLITICAL STABILITY INDEX

Source: theglobaleconomy.com

COST COMPARISION

VS

4th/8LABOUR COST(Blue-Collar)$266/month

3rd/8MIN. WAGE (average)$191/month

2nd/8ELECTRICITY COST

$0.07/kWh

3rd/8WATER COST

$0.41/m3

1st/8CIT RATE20%

4th/8VAT RATE10% Source: JETRO

Survey of investment related costs in 2020

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VN’s ADVANTAGES ECONOMIC STABILITY

7.1%

5.0% 5.5%4.3%

6.8%6.1%

1.3%2.4%

7.0%

-3.1%-2.1%

0.4%

-5.6%

1.7%

-9.6%

-5.4%-6.1%

2.9%4.0% 4.4% 4.0%

6.0%

-10.0%

4.7%5.8%

2.2%

6.6%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

CAMBODIA INDONESIA LAO PDR MALAYSIA MYANMAR PHILLIPINES SINGAPORE THAILAND VIETNAM

ASEAN GDP GROWTH OVERVIEW

2019 2020 Forecast 2021

VIETNAM

as of June 2021

Source: World Bank

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VN’s ADVANTAGES SOCIAL INFRASTRUCTURE

(2.0)

(1.0)

0.0

1.0

2.0

3.0

4.0

5.0

20002001200220032004200520062007200820092010201120122013201420152016201720182019

$bnNET OFFICAL DEVELOPMENT ASSISTANCE AND OFFICIAL AID RECEIVED (2000 to 2019)

CAMBODIA LAO PDR MYANMAR THAILAND VIETNAM

CAMBODIA15%LAO PDR9%

MYANMAR19%

VIETNAM56%

Source: World Bank

Inject ODA

Develop Infrastructure

Success of FDI

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VIETNAM’s ADVANTAGES

<Abundant labor

forceReasonable

costs

Stable politics & economy

Solid infrastructure development

Tax incentives

Trade value & domestic market

MR. OSAMU SUDO / 須藤 治Head of Marketing and Sales in VietnamAMATA CITY BIENHOA JSC.MOBILE: +84 (0)93 769 4007 (Vietnam) / EMAIL: [email protected]

Frequent law

revisions

Anti-corruption

Domestic supply chain