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INVESTMENT IN CENTRAL VIETNAM

INVESTMENT PROMOTION CENTER FOR CENTRAL VIETNAM (IPCC)FOREIGN INVESTMENT AGENCY (FIA) * MINISTRY OF PLANNING AND INVESTMENT (MPI)

2010

FIAVietnamMPI

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Central Vietnam A growing region for investments….

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Favorable location to develop marine-economic sectors

Most attractive Incentive

Rich in natural resources and

tourism attractions

Competitive cost and diligent labour

force

Central Vietnam’s Competitive Advantages

Untapped land and

fast site clearance…

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- Geographic location: Comprising 11 provinces. A gate-way of Greater Mekong sub-region to the East Sea -Coastline: over 1.500 km with many deep gulfs to developing seaport system

- Land area: 82, 832 sq. km, 25% compared with the country

- Population: 12 million accounting for 14% of the country

- GDP average growth rate (2007): 13%

Favorable location to develop marine-economic sectors

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Central Vietnam’s Airport Network

International Airport

Domestic Airport

Danang International Airport (the 3rd biggest one)

Phu Bai International Airport (Hue)

Chu Lai Airport

Phu Cat Airport

Cam Ranh AirportPleiku Airport

Buon Ma Thuot Airport

Dong Tac Airport

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Central Vietnam’s Sea-port Network

Tien Sa (Danang city)

Vung Ro (Phu Yen province)

Quy Nhon (Binh Dinh province)

Chan May (Thua Thien Hue province)

Dung Quat (Quang Ngai province)

Vân Phong (Khánh Hoà province)

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Chan May – Lang Co seaport (Thua Thien Hue province)

Location :  16°20'00"N - 108°00'00"EAccess Channel: 2.7 km of length. Berth depth : -12 m. Highest level water : 11 m,Accommodation capacity: 30,000 DWT (300 m long and 24 m wide)

Capacity

2004 2005 2006 2007 2008

Gross200, 480

MT402,000 MT MT

526,293 MT MT

800,000 MT

800.000 MT

Development Plan

Project Capital Time

  * Building bus station No.2 & 3, 440 long, berth of 30,000 DWT, depth – 12.5m. * Tourist ship bus * Beakwater of 500m..  * Service area of mechanics

 VND 2.500 Bil~ US$ 150 mil

 

                

2010

Soure: VN Seaports Assosociation

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Tien Sa Seaport (Da nang city)

Location :  16°07'02"N - 108°12'08"E Access Channel: 6 km of length. Berth depth : -10-17 m. Highest level water : -12 Accommodation capacity: 45,000 DWT and2,000 TEU

Capacity

Development Plan

Soure: VN Seaports Assosociation

2002 2003 2004 2005 2006 2007 2008

Gross2.0MT

2.1MT

2.3MT

2.2MT

2.3MT

2.73MT

2.7MT

Project Total Capital Plan time

Sơn Trà Port VND 100 bil 2009-2012, Under

construction

Tien Sa seaport 2nd Stage :- 500 m long bus- 50,000 DWT, 3,000 TEU

US$ 60 mil 2010-2012

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Competitive land and office rental rate

Costs/ Area

Land rental in IZs, EPZsUSD/m2/naêm (USD/m2/year)

Average rental fee Public utility & maintenance fee

North Vietnam

Hanoi 1.13 – 1.68 0.3 – 0.4

Bac Ninh 0.29 0.4

Central Vietnam

Danang 0.4 – 0.9 0.2

Thua ThienHue

0.5 0.15

SouthVietnam

HCM city 1.06 – 2.09 0.84

Dong Nai,Binh Duong

0.84 – 1.5 0.3 – 1.2

Source : IPCC -2010

International standard office rental (USD/m2/month) 27.5 – 73.2 12.0 – 30.0 82.5

Housing for rent applicable to foreigners (USD/month) 2,100 – 3,600 1,050 – 1,400 2,550

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Many world cultural and natural heritage sites recognized by UNESCO, namely Hue Citadel, Hoi An Ancient Town, My Son Holly-land and Hue royal ceremonial music.

- To be diversified in terms of flatlands, midlands, mountainous and sea areas.

- Rich in high - value economic seafood. Abundant sand mine with a large reserve, especially silica sand.

- Rich in mineral resources such as gold, bauxite, titanium, limestone, kaolin, oil, gas...- Large forest area provides with several kinds of precious and rare timber and special plants.

Well - known tourist sites and rich in natural resources

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Competitive labour cost

Majority of population are young, healthy and able to quickly acquire modern technology with lower labor cost than other

provinces and cities in the country

Source : IPCC - 2010

Provinces/Cities Hanoi Danang HCM city

Manpower costs (USD/month) - Legal mimimum wage - Workers (general industry) - Mid-level Engineers- Mid-level Managers

70.7 95.8270.4798.0

65.0 80.0

200.0 500.0

70.7 95.8270.4798.0

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Central Vietnam’s FDI(1988 – July,2009)

676 projectsTotal registered capital: US$ 24.8 billion (12.8 % of whole country)Disbursement : Over US$ 1.3 billion Creating more than 60,000 direct jobs

Unit: US$ Mil.

112 464 18003300

10020

6298 498545166733

20300

71000

1974617229

10201

0

10000

20000

30000

40000

50000

60000

70000

80000

2004 2005 2006 2007 "08 2009 2010

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TOP 10 FOREIGN INVESTORS IN CENTRAL VIETNAM (1988 – 2010)

Unit: USD

No. National/Territory

Number of

Projects Registered capital Percentage

1 Singapore 37 5,499,388,000 22.14%

2 Brunei 2 4,346,870,000 17.50%

3 Taiwan 105 3,622,251,529 14.58%

4 Korea 88 2,671,044,206 10.75%

5 USA 62 2,471,519,021 9.95%

6 BritishVirgin Island 29 1,332,725,684 5.37%

7 Rusia 13 1,071,649,483 4.31%

8 U.K 15 1,061,239,790 4.27%

9 Hong Kong 34 534,951,670 2.15%

10 Japan 77 360,482,435 1.45%

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Some successful cases

Established in 2005 in electricity and automobile

Textile and real estate established in 2005

I.Z development

Steel

Heavy Industry

Steel supply

Tourism and real Estate Tourism and real Estate

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Investment opportunities in Central Vietnam

-Infrastructure development: Transportation system (roads, Airport, seaport, I.P, E.Z…)

-Services : Tourism, real estate development, finance, training, health care…

Industry: Petro-chemical, aircraft repair, ship building, car assembly, electronic, supporting industry, bio-technology, new and light construction material, consumer goods production, IT…

Exploration, mining and processing of minerals

Processing & producing foods

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Southern foreign investment

center

Southern foreign investment

centerIPC-centralIPC-centralIPC-northIPC-north

FIAVietnam

FIAVietnam

Foreign investment agency (FIA)

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INVESTMENT PROMOTION CENTER FOR CENTRAL VIETNAM (IPCC)An organization under Foreign Investment Agency (FIA), Ministry of

Planning and Investment (MPI) functioning investment promotion activities over provinces and cities in Central and High Lands region from

Thua Thien Hue to Khanh Hoa provinces.

Address : 102 Quang Trung Str., Danang city, Vietnam Tel. : (84 - 511) 3889 669 / ~3889 689 Fax : (84 - 511) 3889 679 Email : ipccentraldng@mpi.gov.vn Website : Http://centralinvest.mpi.gov.vn

Welcome to Central Vietnam !

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Thank you!