Project Destination for Japanese Investors

BÀ RỊA-VŨNG TÀU

October 2011

Project Destination for Japanese Investors

Prepared for Baria Vungtau Investment Promotion Delegation

Baria Vungtau People’s Committee

A member of Uni-Bros. Group 2Bà Rịa – Vũng Tàu

2

Content

1. Japan-Vietnam Strategic Partnership Relation

2. Geography, Economic Potentials, Natural Resources of

Baria-Vungtau

3. Investment Potentials and Opportunities for Supporting

Industries in Baria-Vungtau

4. . Investment Potentials and Opportunities for Logistics

in Baria-Vungtau

5. Investment Policy and Procedure


3

JAPAN-VIETNAM STRATEGIC

PARTNERSHIP RELATION

Part 1


4

1.1. IN CENTRAL: Japan-Vietnam Strategic Partnership Relation

Japan – Vietnam strategic partnership relation based on long – term stability and reliability

is considered as top priority target of Vietnam Government. Leaders of Vietnamese State

and Government visit Japan occasionally for strengthening the closeness and cooperation

between two countries.

Prime Minister Phan Văn Khải held talk

with Prime Minister Koizumi

(Source: Vietnam News Agency

April 2003, Prime Minister Phan Van Khai held

talk with Prime Minister Koizumi on bilateral

cooperation in order to further promote economic-

trade-investment relation.

October 2010, During the official visit to Vietnam

of Japanese Prime Minister Naoto Kan, two

countries signed Joint Statement on

comprehensive development of Strategic

Partnership for Peace and Prosperity in Asia.


5

H.E. Mr. Trương Tấn Sang prior to his presidency

inauguration, met Japanese former Prime Minister Naoto

KAN in Tokyo (photo: MOFA)

June 2011, President of Vietnam, H,E. Mr, Trương Tấn Sang, paid his official visit to H.E. Mr.

Naoto KAN, Prime Minister of Japan.

IN CENTRAL: Japan-Vietnam Strategic Partnership Relation (cont.)

H.E. Mr. Trương Tấn Sang paid working visit with

leaders of Kansai Economic Federation, the Osaka

Chamber of Commerce and Industry. (Source:

Kankeiren Website)


6

H.E. Mr. Trương Tấn Sang and Mr. Nguyễn Tuấn Minh

during the working visit in Japan.

(Source: VNA)

H.E. Mr. Trương Tấn Sang (in the middle of the right) and

Mr. Nguyễn Tuấn Minh (in the middle of the left) during the

working visit in Japan. (Source: VNA)

During the working visit to Japan of the President of the Socialist Republic of Vietnam in

June 2011, Party Secretary of Ba Ria Vung Tau Party Committee, Mr. Nguyễn Tuấn Minh

was honorable to accompany the President.

IN CENTRAL: Japan-Vietnam Strategic Partnership Relation (cont.)


7

1.2. AT LOCALITY: Japanese investment in Bà Rịa Vũng Tàu

Japan increased investment in hi-technology in Ba Ria – Vung Tau: in September 2011,

two hi-tech projects of steel and glass broke ground in IZs of the Province

Provincial Party Secretary, Mr. Nguyễn Tuấn Minh participated in ground breaking

ceremony of NSG Float Glass Project of Japan in Mỹ Xuân A2 IZ on 06/09/2011

(Source: NSG)


8

AT LOCALITY: Japanese investment in Bà Rịa Vũng Tàu (cont.)

Leaders of the Province had paid close attention and created favorable conditions for

Japanese enterprises to make investment. Diplomatic agency (Consulate General of

Japan) also paid attention to Japanese business community in Ba Ria – Vung Tau

Mr. Harumitsu Hida (the second, from right to left) Consul

General of Japan in HCMC participated in the inauguration of

Nippon Steel (Photo: thesaigontimes)online)

Mr. Hồ Văn Niên (left), Vice Chairman of the Province

granted Investment Certificate to Mr. Ryoichi MATSUNO,

General Director of THỊ VẢI INTERNATIONAL PORT

(KYOEI STEEL Joint Venture) (Photo: Bà Rịa – Vũng

Tàu Newspaper)


9

OVERVIEW OF BÀ RỊA – VŨNG TÀU

Part 2


10

2.1. Geographic location, Natural condition, Economy and

Transportation

Advantages of Bà Rịa – Vũng Tàu[1] International Port System

[2] Oil and gas, power, steel, and petrochemical

industry

[3] Natural deposit: oil, gas, rubber

[4] Abundant marine products

[5] Long coast, having islands, developed tourism

[6] Locate in Southern key economic region


11

Geographic location

Distance to key destinations

Direction Name of destination

Distance – description of

route

North Long Thành International Airport30~70KM, National Highway

No. 51

West Adjacent to HCM City125KM, National Highway No.

51

East and South Adjacent to the sea

North Adjacent to Dong Nai Province 90KM, National Highway No. 51

Bà Rịa –Vũng Tàu is a coastal

province, 125 km south-east of

HCM City by road and 86 Km by

river way

Areas: 1,989 km2

Population: About 1 million

people70KM

40KM

70KM

90KM

35KM

30KM

TP.VŨNG TÀU– TP.HCM 125KM


12

Local transport system

The development of expressway and international airport in Southern Key

Economic Region makes Ba Ria – Vung Tau closer to Dong Nai, HCM City,

Binh Duong.

HCMC - Long Thành – Dầu Giây ExpresswayUnder implementation, Japanese ODA

loan

Widening National Highway No. 51 Scheduled to complete at the end of 2012

Biên Hòa – Vũng Tàu Expressway Calling for investment

Long Thành International AirportCommencement in 2015

Road No. 965 connecting National Highway No. 51 –Cái

Mép Port AreasCompletion in 2011

Trans Asia Expressway / Southern Economic Corridor As per development planning of SEC


13

Location of Bà Rịa – Vũng Tàu in Southern Economic Corridor (SEC)

Bà Rịa Vũng Tàu is the ending point of Trans-Asia highway, it locates in Southern

Economic Corridor (SEC = Southern Economic Corridor) including Mekong sub-

region countries.


14

Cái Mép –Thị Vải Deep Water Port Complex in the Regional Port Areas

At present, from Cai Mep Port of

Bà Rịa - Vũng Tàu, big vessels

can go directly to big ports of the

world such as Hong Kong, Cao

Hung, Japan, Korea, Los

Angeles. It helps Vietnam to

reduce transshipment cost via

neighboring countries, and to

offer competitive price against

other ports in the region.

Hong Kong


15

Cai Mep Thi Vai – Asia Pacific Shipping Lines

Source: http://apl.com


16

Cái Mép Thị Vải – Europe Shipping Lines

Source: http://apl.com


17

Vung Tau Airport

Source: Internet

2.8. Aviation of the Province

Bà Rịa Vũng Tàu has two airports as

follows:

Vũng Tàu Airport: Mostly in service of oil

and gas industry and visitors to Con Dao.

As per planning, Vung Tau Airport will be

relocated to Go Gang (Vung Tau City)

Côn Đảo Airport: in the stage of

preparation for investment; Con Dao Airport

can meet demand on travelling of local

people and visitors to Con Dao. It can

receive folker airplane and helicopter.


18

Aviation (2)

Long Thành Airport: is grade 4F

terminal as per classification of

International Civil Aviation Organization

- ICAO

It is scheduled to commence in 2015

and complete in 2020. Distance from

this terminal to key Izs and Cai Mep –

Thi Vai International Port, Ba Ria –

Vung Tau is only from 30km to 70km.

Minister of Ministry of Transport, Mr. Dinh La Thang (right)

and Chairman of Provincial People’s Committee, Mr. Đinh

Quốc Thái in the Planning Announcement Ceremony

(Source: Dong Nai Newspapers)


19

70KM

40KM

70KM

90KM

35KM

30KM

TP.VŨNG TÀU– TP.HCM 125KM

Aviation (3)


20

GDP Information

Average GDP per capita of Bà Rịa – Vũng Tàu

Province is about 5000 USD/capita

LÂ

M Đ

ỒN

G

CAM-PU-CHIA

ĐẮC LẮC

SOUTHERN KEY ECONOMIC REGION

BÌN

H T

HU

ẬN

BẾN TRE

ĐỒNG THÁP

BÌNH PHƢỚC

TÂY NINH

ĐỒNG NAI

BÌNH DƢƠNG

LONG AN

TPHCM

TIỀN GIANG

BÀ RỊA

VŨNG TÀU


21

2.2. . Human Resources and Vocational training

% female% male

Population Pyramid

Việt Nam is a country of golden population structure. Population in the age of 20 to 50

makes up the largest percentage (please refer to the circle mark in the pyramid)


22

Human Resources and Vocational training of Bà Rịa – Vũng Tàu

Technical College School of Ba Ria – Vung Tau

Province

Labor forces of Bà Rịa Vũng Tàu

Young population pyramid,

population at working ages

accounting for 64%.

Rate of trained laborers agaisnt

total working laborers is about

55%.

Vocational training centers in Bà

Rịa Vũng Tàu

The Province has 31 vocational

training centers


23

Training categories at Vocational schools of Bà Rịa Vũng

Tàu

Mechanics:1. Manufacuring mould and fixtures

2. Tool – cutter, machineries

3. Machineries, welding machine

4. Measuring and checking devices used in

mechanical field

5. Machine elements

6. Steel manufacturing

And some other industries such as:

Electrical industry, Refrigeration, Electronics,

Information – electronic technology, Graphic

Design, Web design, Electrical Civil, Welding

Technology, Informatics – Accounting,

Mechanical force, Add - Milling – Planes,

Motorcycle Repair, Maintenance mechanic,

Corrosion of metal, Industrial Electronics, Textile

industry, Fashion Design, Mechatronics,

Transportation, Tourism.


24

2.3. Foreign Investment in Ba Ria – Vung Tau

Bà Rịa – Vũng Tau attracted quite big amount of FDI, during the period of 2006 – 2010, the Province

attracted about 24 billion USD. As of August 2011, there are 290 foreign-invested projects with total

investment of 28 billion USD in the Province.

Implementing capital: As of August 2011, implementing capital was more than 6 billion USD.

Some big-scale projects which were put into operation included: Dinh Co Gas Processing Plant; Posco

Steel Plant, SP-PSA Port; Vina Kyoei Steel etc.


25

Japanese enterprises have more

than 15 years of making investment

and doing business in Ba Ria – Vung

Tau with diversified scope of

businesses

15 investment projects in Bà Rịa –

Vũng Tàu with total investment

capital of more than 1.4 billion USD,

Rank 7th position among countries

which had big investment capital in

Bà Rịa – Vũng Tàu.

10 projects have put into operation

with the following scope of

businesses: steel production, thread

production, processing oil and gas

pipes, garment, sea port and towage

services etc.

Investment from Japan

CÁI MÉP – THỊ VẢI INTERNATIONAL PORT ( JAPAN FUNDED

ODA)

(Source: Business Forum Newspapers)


26

Japanese ODA-Funded Projects in Bà Rịa – Vũng Tàu

No. Name of ODA ProjectsName of General

Contractor (Japan)Sector Status

1Cát Lở Fishing Port, Vũng

Tàu

Sojitz Logistics, Toa

CorporationFishing port

Completed, under

operation

2 Bà Rịa Power Plant Mitsui Co Ltd PowerCompleted, under

operation

3Phú Mỹ 2.1 Power Plant

Marubeni Corporation PowerCompleted, under

operation

4Extension of Phú Mỹ 2.1

Power PlantMarubeni Corporation Power

Completed, under

operation

5 Phu My 1 Power PlantMitsubishi Heavy

Industries LtdPower

Completed, under

operation

6Cái Mép - Thị Vải

International Port

Toa-Toyo Joint Venture

Penta-Ocean Co LtdSea port

Under construction, to

be completed in 2012

Japanese ODA Projects contributed to the economic and industrial development

of the Province. In which Phuoc An Bridge Project is a typical project which has

plan on using ODA funded by Japan. Besides that, below are some ODA projects

which have been implemented:


27

Phƣớc An Bridge– location in the master plan (Japanese ODA)


28

Typical Japanese Projects in Bà Rịa – Vũng Tàu

Hikosen-Cara Factory at Đông Xuyên IZ

Source: Hikosen-Cara Website

Viettube Mechanics Factory, Joint Venture with

Sumitomo at Đông Xuyên IZ. Source::Vietubes

Website

Tan Cang – Cai Mep International Container Port, invested

and operated by Mitsui O.S.K Lines Joint Venture of Japan

(Source: Internet)

FSO RANG DONG MV17 of Mitsui Ocean

Development & Engineering Co., Ltd. (MODEC) is

exploiting oil at Rang Dong Oil Field, BRVT

(Source: Website MODEC)


29

Typical Japanese Projects in Bà Rịa – Vũng Tàu (cont.)

Japan Vietnam Petroleum Co (JVPC): Oil and gas

exploitation (Source: Internet)

Ba Ria Power Plant: using Japanese ODA, General

Contractor: Mitsui Co Ltd (Source: Internet)

Phú Mỹ 1 Thermal Power Plant: using Japanese

ODA , executed by Mitshubishi Heavy Industries

(Source: Internet)

TSojitz Logistics made partly investment into Phu

My 3 BOT Thermal Power Plant (Source: Internet)


30

INVESTMENT POTENTIALITY,

OPPORTUNITY IN SUPPORTING

INDUSTRIES IN BA RIA – VUNG TAU

Part 3


31

THỊ TRẤN

KIM LONG

Thành Phố Vũng Tàu

THỊ TRẤN ĐẤT ĐỎ

ĐÔ THỊ MỚI

PHÚ MỸ

THỊ XÃ BÀ RỊALONG ĐIỀN

ĐẢO LONG SƠN

LONG HẢI

THỊ TRẤN PHỨC HẢI

Đồng Nai

3.1. Industrial Zones of Ba Ria – Vung Tau

1. Đông Xuyên Industrial Zone

2. Phu My 1 Industrial Zone

3. My Xuan A Industrial Zone

4. My Xuan A2 Industrial Zone

5. Phu My II Industrial Zone

6. Cai Mep Industrial Zone

7. Long Huong Industrial Zone

8. My Xuan B1 – CONAC Industrial Zone

9. My Xuan B1 – Tien Hung Industrial Zone

10.My Xuan B1 – Dai Duong Industrial Zone

11.Phu My 3 Industrial Zone

12.Chau Duc Industrial Zone

13.Dat Do Industrial Zone

14.Long Huong Industrial Zone

The province has 14 Industrial Zones

(IZs), with an area of about 8,800 ha.

Infrastructure of IZs has been

constructed synchronously, above

60% of land area has received

projects and is ready to receive new

investors.


32

Industrial Clusters of Bà Rịa – Vũng Tàu

There are 30 Industrial Clusters with

land area of about 2,000 ha, in which,

03 industrial clusters were put in

operation and ready to receive

investors.

Industrial Cluster (ICs):

Tân Thành district’s ICs

Châu Đức district’s ICs

Bà Rịa township’s ICs

Long Điền district’s ICs

Đất đỏ district’s ICs

3

4

5

3

4

5G

ot o

Do

ng

Na

i

Vũng Tàu City

2

2

1

1


33

At industrial zone: IZs with

completed infrastructure and ready

to receive investors include

Phú Mỹ 2 Châu Đức

Mỹ Xuân B1-Tiến Hùng

Mỹ Xuân B1-Đại Dương

Mỹ Xuân B1-Conac

IZs with ground and infrastructure under

preparation to receive investors:

Phú Mỹ 3 Đất Đỏ

Industrial clusters, industrial zones that the province proposes to call

for investment from Japan

At ICs: ICs with completed infrastructure

to receive investors include:

Hồng Lam Hắc Dịch 1

ICs with ground and infrastructure under

preparation to receive investors:

An Ngãi Tân Hƣng 6 Đá Bạc

Investment location is concentrated on some industrial zones and industrial clusters :

12

5

99

10

8

8

10

1111

1313

15 16

16

19

17

17 18 19

18

15


34

BOT Phú Mỹ 3 Power Plant in operation

(Source: Bà Rịa – Vũng Tàu Newspaper)

3.2. Industrial resource – Energy source

Ba Ria – Vung Tau is a

power center of the

country, occupies 40% of

power production of the

country.

Currently, there are 8

power plants in the

province with total

capacity of 4,224 MW.

Basically, they can satisfy

electric demand in

production and business

activities of investors as

well as living activities of

local people.


35

Ba Ria – Vung Tau has an oil

reserves of more than 1.5 billion

tons, gas reserves of about

1,000 billion m3. Annual

exploited volume reaches about

13-14 million ton of crude oil

and 6-7 billion m3 of gas.

Dinh Co - Nam Con Son Gas

Processing Plant is now operated

with capacity of 7 billion

m3/year.

Nam Con Son 2 project is

expected to be completed by

2014 in Ba Ria – Vung Tau (Dinh

Co 2) and can provide an

additional volume of 7 billion

m3/year.

Industries using gas in Ba Ria –

Vung Tau: power generation, LP

gas, fertilizer, construction

material v.v.

Dinh Co Gas Processing Plant in operation

(Source: BRT)

Industrial resource – Gas source


36

Ba Ria – Vung Tau has 9 water supply

plants with total capacity

Current: nearly 160 thousand m3/day-

night

By 2050: 500 thousand m3/day-night

Enough to supply for production and

business demand of investor and

consumption of local people. Toc Tien water supply plant

(Source: Internet)

Other resources – Water supply system


37

Material source for supporting industries in BRVT

• The province has high quality steel manufacturing plant under operation and construction such as: Vinakyoei, Posco, Posco-SS, Nippon Steel, CSVC and so on.

Mechanical

supporting industries

• Dinh Co Gas Plant supply gas material source to produce fertilizer and chemicals

• Long Sơn refinery complex will supply various kinds of materials for chemical, plastic, packaging, … industries

Plastics –package

supporting industries

• Linde Gas project at Phu My 1 IZ supplies different typle of industrial gas for plants in supporting industries

Other supporting industries


38

3.3 Industrial sectors calling for investment from Japan

• Plant manufacturing high quality mould. Cutting tools

• Mechanical engineering plant, manufacturing components for auto and motorbike industry.

• Mechanical engineering plant, manufacturing components supporting for household electronics. Measurement equipment using in mechanical field.

• Precision mechanical plant. Mechanical processing machine, welding machine, machine details.

• Thermal treatment plant specializing in surface treatment

Manufacture of

consumer products

• Plant manufacturing equipment and component serving for oil exploitation and drilling.

• Plant manufacturing pipe thread.

• Mechanical engineering plant manufacturing component, equipment, mechanical structure serving for oil exploitation and processing.

Oil exploitation and

processing

• Plant manufacturing deck equipment such as tunnel cover, crane system, anchoring system.

• Mechanical engineering plant manufacturing supporting equipment for shipbuilding industries, specializing in assembly, manufacture of gear box, screw propeller.

• Diezel engine and small capacity generator manufacturing and assembly plant

Shipbuilding

industry

1.

Mechanic

al

industry

serving

for

following

sectors


39

3.3 Industrial sectors calling for investment from Japan

• Plant manufacturing electronic component, sensor, transistor, micro control serving for auto, motorbike and electronics sectors.

• Plant manufacturing and assembling marine equipment, meters for water speed, speed, wind direction, auto controlling system, communication system

• Plant manufacturing electric, electronic equipment used for auto, motorbike and electronics industries.

• Plant producing functioning chip serving for assembly of electronic products in the country.

• Plant manufacturing high performance batteries used for communication equipment.

2. IT –electronics

industry

• Plant producing high quality technical plastic, rubber parts to supply for industries such as auto, electronics...

• Plant producing industrial chemicals.

• Plant producing plastic pipe and accessories.

3. Plastic –Petrochem

ical industry


40

3.4. Method of investment calling

Investor to cooperate to invest in infrastructure

and operation of industrial clusters, industrial zones

without infrastructure

Manufacturer to invest in industrial cluster, IZs with completed infrastructure

• Investor to develop IZs in cooperation with owner of industrial cluster/ industrial zone, make planning and develop industrial cluster, IZs according to Japanese model for lease and provision of services

• Industrial cluster, industrial zones that have available workshop for lease

• Industrial cluster, industrial zones with land available for lease, no workshop available.


41

Supply for enterprises of Ba Ria – Vung Tau including: power generation, oil & gas, shipbuilding, fertilizer, chain of production, processing, assembly, other heavy industrialproject

Supply for key industrialsectors of Vietnam. Atcurrent, they import materials from othercountries such as China, Japan, … due to a lowsupply source of local supporting industries.

Process and export to othercountries (Japanor any third party)

Rất tiềm

năng

3.5 Potential market for Japanese investors in supporting

industries

Market in other

countries

Vietnam

market

Ba Ria – Vung

Tau Market


42

Potential market for Japanese investors in supporting

industries – Viet Nam market

Industrialsector

Production scale

(thousand unit)

Production

enterprise

Material supply enterprise

Localization rate

VN

In comparison

with TháiLan

VN

In comparison

with TháiLan

VNAsea

nregion

Thai Lan

Motorbike(a)

1,290 1,740 17 23040-75%

45%

Tivi (b)1,600 6,500

20-40%

Auto (c)35 1,000 50 60 2,500

5-10%

65-70%

70%

Texttile(d) 3 million USD n/a 2,000 n/a n/a 20-25%

Localization rate in a number of industrial sectors

Data notes: (a) 2003, (b) 2002, (c) 2005, (d) 2006.

Source: Viet Nam Development Forum (VDF).

Our objective is to call for investment in supporting industries from Japan to increase rate of

localization in supporting industries


43

INVESTMENT POTENTIALITY,

OPPORTUNITY IN LOGISTICS

IN BA RIA – VUNG TAU

Part 4


44

4.1. International port system of Ba Ria – Vung Tau

Thi Vai Vung Tau Port is

under Seaport Group

No.5 of Vietnam

The channel is at depth

of 14m, able to receive

big capacity vessels of

above 130,000 DWT to

operate safely.

Currently, the channel

has been dregded to a

depth of 16m, to allow

vessels of 160.000 –

200.000 DWT

Exploitation capacity

In 2015: 57~75 million

tons/year

In 2020: 85~124 million

tons/year

In 2030 About 161~287

million tons/ year.


45

52 port projects has been developped so far.

24 ports under operation

2010: exploited more than 37 million tons

As of 9/2011: reached about 35 million tons.<- check lại

Ports that can receive vessels of up to130.000DWT:

SP-PSA, TCCT, SITV, SP-SSA, CMIT

International Port System of Bà Rịa – Vũng Tàu (cont.)

THỊ VẢI – VŨNG TÀU PORT SYSTEM

Bên Đinh Sao Mai Area Long Sơn Area Thi Vải Area Mỹ Xuân Area Go Dâu Area

Cái Mép – Thị Vải Channel

Cái Mép Area


46

International port system of Ba Ria – Vung Tau (cont.)

10 Port project under construction.

17 Project to be executed in comming

time.

01 Port located in area of Logistics

Center project, that is calling for

investment (Cái Mép Hạ Logistics Area)

SSIT Inter. Port

Cai Mep Container Terminal

(ODA)Tân cảng Cái Mép Port

Thi Vai General

Terminal (ODA)

Cai Mep – Thi Vai Channel

CMIT International Port

Ba Son Shipbuilding

FactorySP-PSA Inter. Port

SITV international Port


47

A typical seaport that was put in operation –Tân Cảng

Cái Mép

There area container shipment to U.S. and E.U. weekly. Capacity of 80.000DWT (can

transport 5,500 – 6,000 Teu); The port in pilot received vessels of 112,000 DWT, transporting

10,000Teu;

Tân cảng Cái

Mép Port


48

1. Cai Mep Ha Specialized Logistics Center

was planned with area of 800 ha, including:

In Cai Mep Hạ, a deep seaport with area of

about 100ha, berth length of 1,800 m,

allowing to receive vessels of above

100,000DWT.

Behind deep seaport is Logistics Center with

area of more than 700 ha.

2. Sao Mai – Bên Đinh Concentrated

Logistics Center, Vung Tau City

3. Logistics clusters of IZs located along Thi

Vai River, in the West of National Road No.

51. Meanwhile, along Thi Vai – Cai Mep river,

26 inland waterway ports and warehouses

& yards are arranged with an area of 1,100

ha in order to serve for other seaports located

along Thi Vai River (from Cai Mep area to Go

Dau area).

4.2. Location of Logistics area that calling for Japanese

investment

Planning area for

Cai Mep Ha

Logistics Center,

area of 800ha


49

4.3. List of sub-projects under Cai Mep Ha Logistics Center

project, calling for Japanese Investment (1)

Investment scale: Logistics center is located near by Thi Vai River

where can built a large scale seaport with a length of 1,800m to

receive vessels with capacity of above 100,000 DWT.

- Area: about 100 ha.

1. Cai Mep Ha

International

Container

Port

Investment scale shall include following main items:

+ Barge berth system serving for goods import-export.

+ Yard area: General yard, container yard for import, container

yard for export, cold container yard, container yard for

hazardous goods, empty container yard, yard for survey and

coordination of container goods, yard for container maintenance

and repair.

+ Warehouse: Local warehouse, general warehouse, bulk goods

warehouse, CFS, refrigerated warehouse, warehouse for local

goods, customs declaration.

+ Area for handling and classifying goods; Area for preliminary

treatment of material and goods; Area for detailed processing.

- Total expected area: 500ha.

2.

International

Logistics area

and a

domestic

comprehensi

ve logistic

area


50

List of sub-projects under Cai Mep Ha Logistics Center project, calling

for Japanese Investment (2)

- Investment scale shall include following works:

+ Plant of manufacture and assembly of high-tech products, automatic

products, electronics products.

+ Plant of processing for export; + Maintenance workshop

+ Operation building and auxiliary works

- Total area: about 100ha

5. Works in

area

serving for

processing

for re-

export

Investment scale shall include following main items:

+ Construction of a trading, financial, banking center in Logistics

service center.

+ Office building for transport enterprises and agents

- Total area: about 30ha

- Total estimated investment capital: about 50 million USD

4. Area for

trading,

financial,

banking

activities and

representative

office of

transport

enterprises and

agents

Functions: Processing for export, international trading, customs

warehouse and showroom. Investment scale shall include following

main items:

+ Processing for export center, international trading.

+ Customs warehouse.

+ Showroom.

- Total expected area of the land lot: about 50 ha.

3. Free

Trade Zone

(FTZ)


51

List of Logistics project calling for Japanese Investment

(3)

Investment scale shall include following items:

+ Construction of marina, work for tourism and

entertainment

+ Construction of area for marine clubs

+ Construction of motel, hotel for foreign and domestic

visitors

+ Construction of restaurant

+ Office for tour operators

- Total area is about 20ha

6. Area for

entertainm

ent,

tourism

service,

restaurant,

green tree

Shipping agent; towage and rescue service, road and

waterway transport

- Investment form: joint venture between local investors and

foreign investors.

- Investment condition: in accordance with WTO

commitment, in which contributed capital from foreign party

shall be not over 49% of charter capital.

7.

Investment

in logistics

service


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4.4. Method of calling investment

To call Logistics

Infrastructure Developer

to cooperate in

investment in

infrastructure and

operation

• Logistics Infrastructure

Developer to cooperate with

local investor to make plan,

and develop Logistics area in

Japanese model for lease and

service supply.

To call manufacturer to

invest in Logistics area

with infrastructure

available

• Logistics with workshop

available for lease

• Logistics complex without

workshop available for lease, only

land is available for lease

[3] Investors to join

Logistics supply chain

• Shipping, transport, towage

services …

• Packing services

Service sectors shall comply with

WTO schedules committed by

Vietnam


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4.5. Potential market of Japanese Logistics Investors

Favorable geographical location

In connection with large economic

center

Large throughput of commodities

Potentialities for developing logistics in Ba Ria – Vung Tau

- Road, wateway, railway transport network has been planned and invested step by step to connect with local transport network.

- At current, there are 21 ports in operation

- Deep seaport system has been developed to become international gateway seaport type 1A, that is close to international shipping lines.

- Be located next to seaport system and commodity source of large production and consumption centers such as: Dong Nai, Binh Duong, HCMC

- BRVT now has 14 IZs established with total area of 8,800 ha, 30 industrial clusters with developed infrastructure, with total area of more than 2,000 ha. This will be location to supply important source of commodities to go through port, and this is a condition to develop logistics services.

- In 2010, throughput volume of BRVT seaport systemreached about 37 million tons, occupies 18.5% ofvolume of whole country.

- Role as Logistics center of Vietnam was played by SaiGon Port until 2000, by Cat Lai in stage 2000 – 2011,and from 2012, Cai Mep Port, that allow vessel of100,000DWT to operate, will play such role.


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Potential market for Japanese Logistics Investors

– forecasted commodity throughput volume

2010

2010 – 2015

(Forecasted)

2015 – 2020

(Forecasted)

2020 – 2030

(Forecasted)

- Throughput: 37

million tons

- Total import-export

turnover is nearly 27

billion US dollars

including crude oil

turnover and more

than 8,2 billion US

dollar excluding

crude oil.

Throughput: 57

~ 75 million

tons/ year

Throughput: 85 ~

124 million tons/

year

Throughput: 161

~ 287 million

tons/year

Sources:

- Report of Ba Ria – Vung Tau people’s committee

- Vietnam Logistics News (http://vungtaulogistics.com/ba-ria-vung-tau-logistics/vung-tau-logistics/6524-mot-co-hoi-de-ba-ria-vung-tau-hieu-ve-te-cang-bien.html)

- PC World Vietnam (http://www.pcworld.com.vn/articles/quan-ly/chuyen-muc/2011/06/1226617/co-hoi-va-thach-thuc-voi-nganh-logistics-viet-nam/)

http://vungtaulogistics.com/ba-ria-vung-tau-logistics/vung-tau-logistics/6524-mot-co-hoi-de-ba-ria-vung-tau-hieu-ve-te-cang-bien.html







































http://www.pcworld.com.vn/articles/quan-ly/chuyen-muc/2011/06/1226617/co-hoi-va-thach-thuc-voi-nganh-logistics-viet-nam/
























55

INVESTMENT POLICIES AND

PROCEDURES IN BA RIA – VUNG TAU

Part 5


56

2. Policies

- Currently, the Government of Vietnam has defined two key industries to be developed are Logistics

and Supporting industries. The Government of Vietnam is promptly build regulation on calling for

investment in supporting industries applied for Japanese investors.

- Ba Ria – Vung Tau People’s Committee is directing department and agencies to compile incentive

regulations applied for Japanese enterprise investing in the Supporting industries and Logistics.

Investment policies and procedures

3. Procedures

- Investment procedures are now applied as one-door procedures. Moreover, the province also compile

investment regulations that are specially applied for supporting industries and logistics.

- Investment inside IZs: one-door procedures at Industrial Zones Authority of the province

- Investment outside IZs: registration procedures at the province’s Department of Planning and

Investment

Leaders of Ba Ria – Vung Tau province will create all favorable conditions for Japanese investors in

Ba Ria – Vung Tau.

1. Why investors should choose Ba Ria - Vung Tau?

- Dominated advantages of resources

- Advantage of geographical location

- Advantage of developed heavy industry

- Advantage of project potentiality in comparison with the Southern Key Economic Region and whole

country.


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Contacts

1/. Agency granting Investment license outside IZs: BA RIA

– VUNG TAU DEPARTMENT OF PLANNING AND

DEPARTMENT

No.01 Ho Xuan Huong, Thang Tam Ward, Vung Tau City

Tel: +(84-64) 3852401

Fax: +(84-64) 3859080

Website: http://sokhdt.baria-vungtau.gov.vn

2/. Management of Supporting Industries and industrial

clusters: BA RIA – VUNG TAU DEPARTMENT OF

INDUSTRY AND TRADE

No. 08 Tran Hung Dao, Ward 1, Vung Tau City

Tel: +(84-64) 3856109

Fax: +(84-64) 856344

Website: www.uni-bros.com/baria-vungtau

Email: [email protected]

3/. Management of Seaport, Logistics projects: BA RIA

VUNG TAU DEPARTMENT OF TRANSPORT

93 Ly Thuong Kiet, Ward No. 1, Vung Tau City

Tel: +(84-64) 3850208

Fax: 064.3852193

Website: http://sogtvt.baria-vungtau.gov.vn

4/. BA RIA – VUNG TAU DEPARTMENT OF AFFAIRS

No. 38 Nguyen Truong To, Ward 3, Vung Tau City

Tel: +(84-64) 856120

Fax: +(84064) 856594

Website: http://www.baria-vungtau.info


5/. Agency granting Investment license inside IZs: BA RIA – VUNG

TAU INDUSTRIAL ZONES AUTHORITY

No. 124 Vo Thi Sau, ward 2, Vung Tau City.

Tel: +(84-64) 3816640

Fax: +(84-64) 3858531

Website: http://banqlkcn.baria-vungtau.gov.vn

6/. BA RIA – VUNG TAU INVESTMENT PROMOTION CENTER

No. 213 Ba Cu – Phường 4 - TP. Vũng Tàu

Tel: +(84-64) 3573082

Fax: +(84-64) 3858531

Website: http://ipc-bariavungtau.gov.vn


Website for Investment Promotion in Japan, October 2011

www.uni-bros.com/baria-vungtau

http://sokhdt.baria-vungtau.gov.vn/




http://www.uni-bros.com/baria-vungtau





mailto:[email protected]

http://sogtvt.baria-vungtau.gov.vn/



http://www.baria-vungtau.info/






http://banqlkcn.baria-vungtau.gov.vn/



http://ipc-bariavungtau.gov.vn/









Ba Ria – Vung Tau Investment Promotion Delegation to Japan

October - 2011

Thank you!

Copyright ® of Bà Rịa-Vũng Tàu People’s Committee, Socialist Republic of Vietnam, October 2011.

Prepared by: Uni-Bros. Group (www.uni-bros.com)

http://www.uni-bros.com/



Project Destination for Japanese Investors

Business

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