Doing Business in Vietnam: Strategic Opportunities and ...
Transcript of Doing Business in Vietnam: Strategic Opportunities and ...
Herb Cochran Executive Director
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Doing Business in Vietnam:
Strategic Opportunities and Challenges
from AEC, TPP, VN-EU FTA, … TFA
April 12-13, 2015
! Informally re-established in Mar 1994
! Formally licensed Sep 19, 1998 – Decree No. 08/1998/ND-CP, Regulations on
Foreign Business Associations
! Two chapters, HCM City and Hanoi – HCM City: 433 companies – Hanoi: 181 companies
About AmCham
! Phase 1: 1994 - 2001 (MNCs and “Pioneers”)
– Coca-Cola, Pepsico, P&G, 3M, Kimberly-Clark …
! Phase 2: 2001 – 2006 “Partner Factories” – For U.S. market (Apparel, Footwear, Furniture …)
! Phase 3: 2007 - … “Modern manufacturing” – For global markets (Intel, Digital Logic, GE,
Honeywell, Timken, … )
U.S. (related) FDI in Vietnam
www.amchamvietnam.com
Key Issues - Business Environment � U.S. Embargo lifted Feb 1994 � U.S. – Vietnam Relations Normalized Jul 1995 � Bilateral Trade Agreement 1996 - Dec 2001 � WTO Accession 2002 - Jan 2007 � Bilateral Textile Agreement 2002 – Jan 2009 � Labor Relations 2008 - 2013 � TransPacific Partnership 2013 – � Food Safety (excise tax on CSD, etc.) 2014 – � WTO Trade Facilitation Agreement 2014 – � ASEAN Economic Community 2015 –
TPP Opportunities …
! Exports up 28.4% in 2025 over the “base line” w/o TPP
– $239 billion without TPP apparel/footwear $113 billion – $307 billion with TPP apparel/footwear $165 billion
! GDP up 10.5% in 2025 over the “base line” w/o TPP
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! Become a “qualified” supplier to U.S. and global firms ! Industry Trade Shows in the U.S. ! D-U-N-S® Number … an International Unique ID Number ! Electronic Data Interchange (EDI) ! Testing & Certification
– Quality, Safety, Labour, Environmental, Sustainability, … ! Product Liability Insurance / Marine Cargo Insurance ! Logistics • Security • Customs & Border Protection (CBP) ! Your Company Web Site … and “Vina Baba”
Challenges … Links to internat’l supply chains
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! Implement the WTO Trade Facilitation Agreement
! which is similar to …
! Trans-Pacific Partnership (TPP) Free Trade Agrement
! EU-Viet Nam Free Trade Agreement
! ASEAN Economic Community 2015
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Challenges … Momentum for reform … customs
! Committee on Trade Facilitation; Single Window (BIEC) ! Customs – Business Partnership / Cooperation (COAC)
! e-Customs (Automated Commercial Environment • ACE)
! Advance Ruling: Classification, Valuation, Rules of Origin
! Authorized Economic Operator
! Many similar provisions in “U.S. Customs Modernization Act,” 1993 in preparation for implementation of North American Free Trade Agreement (NAFTA) on Jan 1, 1994
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AEC, TPP, EU-VN … TFA commitments include
Technical assistance commitment in the TFA Section II, Art 9. Provision of Assistance for Capacity Building “9.1. Donor Members agree to facilitate the provision of assistance and support for capacity building to developing country and least developed country Members, on mutually agreed terms and either bilaterally or through the appropriate international organizations. The objective is to assist developing country and least developed country Members to implement the provisions of Section I of this Agreement.”
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AEC, TPP, EU-VN … TFA includes technical assistance
! COAC Members
Swift Transportation Corporation, FedEx Trade Networks Transport & Brokerage, Kraft Foods Group, The Walt Disney Company, UPS Supply Chain Solutions, Coppersmith Global Logistics, National Association of Beverage Importers, Maritime Products International, NYK Line (North America), Airforwarders Association, U.S. Chamber of Commerce, Abbott Laboratories, Janell Group of Los Angeles, Liberty International, Inc., Regal-Beloit Corporation, Raytheon, General Motors, Airlines for America, Target, Sandler & Travis Trade Advisory Services
Committee Members (U.S.)
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www.amchamvietnam.com/download/1783
Le Tu Cam Ly Member, Board of Governors
AmCham Vietnam
World’s middle class = 5 billion by 2030