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Vietnam PPT Editd 2
Vietnam PPT Editd 2
GROUP MEMBERS
Name Mosam Shah Nikhat Koor Nimit Soni Payal Patel Roll.No.: 26 27 28 29
Vietnamese People
Vietnam is a populated country of over 85 million people. Although the villages have played a key role in Vietnam's psyche and social order, most people now live in the major cities where jobs are more plentiful. Due to the war, there are fewer older men in Vietnam (although they still are predominant in the government) and many younger people. Military service is still compulsory for 2 years. The literacy rate is impressively high (over 90% are able to read). However, Vietnam is still a relatively poor and less healthy country.
Vietnamese Language
Vietnamese is the primary language. It is a tonal language, relatively easy to read but difficult to speak. Luckily, English is growing in popularity. Some French is spoken in the North. RELIGION Vietnam contains a rich mixture of religions, reflecting the influences of many cultures. Traditional Vietnamese religion included elements from Indian beliefs and three Chinese religious systems: Mahayana Buddhism, Taoism, and Confucianism.
Vietnam Trade
Vietnams currency VIATNEMESE DONG (VND) Trade agreements and increased modernization are making a great improvement in quality of life for Vietnamese and Vietnam's visitors. Tourism is increasing with better transportation, services and accommodations. Major exports are crude oil, marine products, rice, coffee and tea, rubber and clothing.
Vietnam Overview pg 1
Sound fundamentals 87-million and 93% literacy rate population, 75% of which are under the age of 40. Individual wealth has been rising remarkably with CAGR of GDP per capita reaching 12.3% for 1988-2010 . Annual GDP growth averaging 7.2% in the past decade, only behind China in Asia, confirms the strength of the domestic economy. Vietnams competitive labor costs, highly-ranked political stability in the region with the governments emphasis on efficiency, competitiveness, infrastructure developments, continuous power supply and reduction of state budget deficits, further show the nations investment appeal.
Pg 2
Rich resources Crude oil and gas reserves in Vietnams 9 off-shore fields rank Vietnam behind Australia in Southeast Asia for petroleum resources and this resource wealth is expected to increase with expanded exploration. A US Geological surveys indicated that Vietnam was a leading supplier of anthracite coal in the Asia and Pacific region. Vietnam also contains large, recoverable reserves of other minerals, including, magnesium, gold, phosphate, tin, and copper
pg 3 Singaporean businesses encouraged to invest in Vietnam Sembcorp has already built four industrial zones in Vietnam and Keppel has cooperated with Vietsopetro to set up new oil drilling platforms.This will contribute significantly to Vietnams socioeconomic development Italian firms urged to invest in Vietnam Several key areas for expansion and co-operation between the two business communities, including agriculture, engineering and infrastructure, while also acknowledging tourism and technology as promising sectors. Dutch businesses to increase investment in Vietnam in various fields, especially in clean and renewable energy, bio-diversity, the environment, urban planning, and water management. On the occasion, a number of lucrative cooperative agreements in shipbuilding, training and oil exporting were signed by Vietnamese and Dutch businesses
Vietnam Infrastructure
Supply chain
Airport
Why Vietnam
Vietnam has a large market, skilled workers and a good investment environment while still maintaining lower production costs due to lower ages then in India or Thailand. One additional reason why Indian firms are getting more interested in Vietnam is the India- ASEAN (Association of Southeastern Asian Nations) Free Trade Agreement, decided on August 13, 2009 in gangkok and effective from January 1, 2010. The Vietnam-India bilateral trade relationship was worth US$2.75 million last year. In January and February 2011 the bilateral trade value stood at =S$643 million and it seems to be rising.
Construction The construction segment plans to expand housing till 2020, targeting 30-32 million sq. meters of construction area within the country and 12 sq meters of living space for each individual. Vietnam also has ongoing projects to support housing foundations, handle flooding in the central coastal region and the Mekong Delta, develop real estate market, register transactions and create centralized information system to facilitate overseas Vietnamese to purchase housing in the country.
Manufacturing: Vietnam, the fastest growing ASEAN economy, is host to the Saigon Exhibition and Convention Centre (SECC) 2010. The country is steadily becoming the global manufacturing center. Its plastics and rubber industries are developing quickly to serve a diversified industrial base.
Restriction on the transferee. In securities companies, only the foreign securities company can buy shares or contribute capital to a domestic securities company or a securities company which has the license in fund / asset management, or an insurance company can buy shares or contribute capital to a fund management company, with a cap of 49% of equity of respective company. Restriction on the ownership right or the right to use particular assets which prevent foreign investors from owning 100% of the capital of a company.
There was a small but vibrant Indian community in the country -comprising mainly merchants and moneylenders, chiefly Tamils and Sindhis. At one time, Indians also dominated Saigon's retail textile trade, especially along the city's main shopping destinations. Full of fashion boutiques, jewelry sellers, luxury brand vendors, spas and high-end restaurants, these streets today resemble New York's 5th venue or Singapore's Orchard Road. But at one time they were crowded with textile shops manned by Indians. Almost all left the country after Communists seized control of Saigon in 1975.
Titan Industries, is planning to build an assembly plant for watches in Vietnam for better access to emerging markets in South East Asia. For Indian investors information technology, shipbuilding, animal-feed and processed foods are some of the potential industries where Indians can have an early advantage
Vietnam particularly seeks Indian investments in sectors like high technology, IT, biotechnology, energy including renewable energy, iron and steel, auto components, pharmaceuticals, medical equipment, food processing, and other areas. Earlier this year with effect from 1 January, India have extended the visa-on-arrival facility to Vietnam. The total Indian investment in Vietnam is over 400 million dollars ONGC Videsh has been present in Vietnam for quite some time, including in a major joint venture for offshore oil and natural gas exploration. They are in the process of further expanding their cooperation and operations in Vietnam. Also ESSAR exploration and Production Limited, which is a subsidiary of ESSAR Oil, has been awarded an oil and gas block in Vietnam
All above structuring are considered when M & A transaction take place. The Vietnam tax environment were newly introduced with effective from 1-01-2009
Corporate Tax
Companies incorporated in Vietnam are subjected to a standard CIT rate of 25%. Oil & Gas companies are subject to tax at rates from 32%50% depending on project. Tax losses are carried forward for a maximum period of 5 years in which loss arose. Dividends received by a Vietnamese company are exempted from tax.
Withholding Tax
Foreign Companies performing business in Vietnam without establishing a legal entity are subject to Foreign Contractor Withhold Tax Which includes a VAT & CIT
Exempt Exempt 5%
10% 10% 5%
VAT
VAT applies to goods & services used for production, trading & consumption in Vietnam. VAT implies on the duty paid value of imported goods. VAT rates are 0%, 5% & 10%. Certain goods & services are VAT exempt.
CAPT
Gains on transfers of interest ( as opposed to shares) in a Vietnam ltd liability company are subjected to 25% CAPT. Taxable gain is determined as the excess of the sales proceeds less cost less transfer expenses. In case of transfer of shares in joint stock company by a foreigner, CIT payable is 0.1% of gross sales proceeds.
Transaction Cost
ASSET DEAL Assets Land & Housing Registration Fee rates 0.5%
1%
05%
Motorcycles
Automobiles Shotguns & Sports guns
1-5%
2-5% 2%
Thank you