THE ROBUST GROWTH 2018

Transcription

1 Vinfast: Vietnam s first car manufacturer Landmark 81: Vietnam s highest skyscraper THE ROBUST GROWTH 2018 Hai Phong International Gateway Port: The first deep water port for the North of Vietnam (2021)

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3 FOR THE ECONOMY THE GLOBAL LOCAL PRESENCE EUROPE Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Croatia Czech Republic Ireland Denmark Estonia Finland France Great Britain Greece Hungary Iceland Italy Latvia Lithuania Luxembourg Macedonia Netherlands Norway Poland Portugal Romania Russia Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine AMERICA Argentina Bolivia Brazil Canada Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Uruguay USA Venezuela AFRICA MENA Algeria Angola Egypt Ghana Iran Iraq Israel Kenya Morocco Mozambique Nigeria Oman Qatar Saudi Arabia South Africa Tunisia UAE Zambia ASIA OCEANIA Australia China India Indonesia Japan Kazakhstan Korea Malaysia Myanmar New Zealand Philippines Singapore Taiwan Thailand Vietnam

4 Content FOREWORD VIETNAM VIETNAM GERMANY GIC/AHK Vietnam 12 Overview 80 Overview 8 Vietnam s Ambassador 14 Geography 83 Foreign trade 18 Economic situation 86 Investment 24 Foreign trade 88 Vinfast 34 Investment 44 Labor market 54 Infrastructure 66 Global integration 70 Vietnam ASEAN 4 75 Outlook

5 EVENT CALENDER GIC/AHK VIETNAM Trade fairs 98 The AHK global network 95 Events 100 The history of GIC/AHK Vietnam 103 Market consulting 104 Projects & Delegations 105 Dual vocational training 106 ProRecognition 107 GBA Membership & Networking 5

6 Dear readers Vietnam with its incredible progressive dynamic attracts more and more international and also German companies attention currently. Marko Walde Chief Representative Delegate of German Industry and Commerce in Vietnam It is our pleasure to present you the 6 th edition of our annual publication entitled Vietnam The Robust Growth. Given the rapid economic development, the powerful export growth as well as the record inflows of foreign direct investment to Vietnam over the past years, we consciously chose the title of our publication. Vietnam with its incredible progressive dynamic attracts more and more international and also German companies attention currently. The country is a member of the Asean Economic Community (AEC), the new TPP-11 (CPTPP) and is the only state besides Singapore that signed a Free Trade Agreement with the European Union. Vietnam and the EU reached an agreement of the final contract in Bruessel this year on June 26. The FTA will enter 6

7 into force at the beginning of From entry into force, Vietnam will reduce 65% of the tariffs on EU-goods and intend to remove import tariffs completely over the course of the next 10 years. Additionally, Vietnam provides foreign companies rather low market entry barriers. Thus, it is possible to operate a Vietnamese corporation with a 100 percent share of foreign ownership in almost all sectors. All developments enable German exporters and service providers new chances to establish their businesses. The continuously improving conditions clearly facilitate the market entry. Germany and Vietnam enjoy a quite good economic relationship, while Germany has an excellent reputation in Vietnam. German investors intend to expand their activities, increase the investments and recruit more staff in Vietnam. There is a trend now called China plus One, an international business strategy that consists of the expansion of German company s current operations in China. The motivation therefore are not only the increasing wage costs in China, but also the diversification. As a recent example for the excellent German-Vietnamese cooperation is the project Vinfast the first car manufacturer in Vietnam which started in September The first Vietnamese car results significantly from German technology, German production facility and a solid base of German dual vocational training. However, Vietnam offers interesting potentials in nearly all sectors which may provide medium-sized enterprises with well-prepared market entry specific business incentives. Of course, the entry into a foreign market also involves risks and pending issues. Particularly, the geographical distance and the related management questions of a Vietnam-Engagement is already a certain challenge for small- and medium-sized enterprises. For an on-site support as well as detailed advice to all issues concerning a market entry, the AHK Vietnam is represented in two locations in Vietnam: in the economic centre of the country Ho Chi Minh City, as well as in the capital Hanoi. We are pleased to support your intentions and look forward to your visit! 7

8 Dear readers The economic relationship between both countries, the trade sector especially, are constantly on a growth path. Doan Xuan Hung Vietnamese Ambassador Vietnam s Embassy in Germany The Vietnamese Embassy in Germany is pleased to meet you again on this year s brochure about the Vietnamese economy and German-Vietnamese business relations published by the Delegate of German Industry and Commerce in Vietnam. Since the first edition in 2013, the brochure became a reliable companion, not only for German but also for many other foreign companies that showed interest in doing business and investment in Vietnam. Considering the background of a dynamic global economy, we are glad that Vietnam and Germany have been cooperating successfully and achieving very impressive results in the economic and social field in 2017 to the beginning of The economic relationship between both countries, the trade sector especially, are constantly on a 8

9 growth path. The bilateral trading volume exceeded 14.8 billion US$ in 2017 and 3.3 billion US$ in the first 4 months of Thus, the bilateral trading volume tripled within a period of only 10 years. Considering investments until April 2018, Germany was responsible for 301 FDI projects with a total capital of over 1.8 billion US-Dollar and is ranked 20 out of 116 countries investing in Vietnam. The first four months of 2018, Germany registered 14 new FDI projects with a capital of approximately 40 million US- Dollar. Also, Vietnam invested in 11 projects in Germany worth million US-Dollar. We would support the cooperation between German and Vietnamese companies and strongly believe that the perspective of this business cooperation will be very positive. Therefore, we highly appreciate the numerous visits from German delegations in the area of politics and economy in Vietnam in 2017, that intend to find and foster cooperation and investment opportunities. This includes, the visits of delegations from the Federal States of Hamburg, Bremen, Rhineland- Pfalz, as well as the visit from the state secretary of Ministry of Economics in Mecklenburg- Vorpommern. Moreover, there are many more important visits to come. The visits will set an important impulse for the future economic cooperation between both countries. On this occasion, I would like to express my thanks on behalf of the Vietnamese Embassy in Germany to the Delegate of German Industry and Commerce in Vietnam for the continuous monitoring of promoting and supporting provinces and companies of both countries including business cooperation. We hope you enjoy reading and find valuable and useful information in this brochure. With kind regards, 9

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11 VIETNAM 11

12 VIETNAM - OVERVIEW VIETNAM IS ONE OF THE FASTEST-GROWING COUNTRIES IN ASIA BAC NINH HANOI HAI PHONG Capital: Hanoi Official language: Vietnamese Currency: Vietnam Dong (VND) DANANG FREE TRADE AGREEMENTS (FTAS): EU-VIETNAM FTA CPTPP (TPP11) AEC BINH DUONG DONG NAI HO CHI MINH CITY 100% A 100% foreign-owned enterprise possible 12

13 GDP growth in % Export growth in % Inflation in % Population in m Average age 31 YEARS Employed Persons in m Unemployment rate in % Average monthly salary in US$ Registered cumulated investment capital until June bn US$ Increase in new registered investments in % Exchange rates EUR 1 = VND 27,690 US$ 1 = VND 23,390 Source: General Statistics Office of Vietnam, Deutsche Bank, Vietnam Work. 13

14 VIETNAM GEOGRAPHY Myanmar Laos Thailand China Vietnam Cambodia Brunei Malaysia Singapore Philippines Vietnam is located in Southeast Asia. It borders the Gulf of Thailand, Gulf of Tonkin, and Pacific Sea, alongside China, Laos, and Cambodia. Located in the highly attractive growth region (Asia & ASEAN), Vietnam is viewed as a link between the North and the South of the Asia-Pacific region. Indonesia 14

15 VIETNAM GEOGRAPHY VIETNAM IN A HIGHLY ATTRACTIVE GROWTH REGION GDP GROWTH IN SELECTED REGIONS IN 2017 Asia Latin America and the Caribbean 1.5% European Union 1.9% Middle East and North Africa 3.3% Emerging and developing countries in Europe 3.3% Sub-Saharan Africa 4% Emerging and developing countries in Asia 6.3% Source: IMF 15

16 VIETNAM GEOGRAPHY VIETNAM IN THE HEART OF ASEAN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS ON THE PATH TO BECOMING AN ECONOMIC POWER Myanmar Laos Vietnam Thailand Cambodia Malaysia Singapore ASEAN Brunei Philippines A fast-growing consumer market Diverse business opportunities for all kinds of consumer goods in ASEAN such as: luxury brands, automotive industry, IT and healthcare. Healthcare IT Automotive industry Indonesia 16

17 4 trillion US$ GDP ASEAN in % Average growth rate ASEAN ASEAN is considered as an alternative or supplementary manufacturing region for German companies (China +1), due to: COST-COMPETITIVE LABOUR FORCE Foreign direct investments in ASEAN have doubled over the last 10 years. ACTIVE GLOBAL INTEGRATION 651 million People live in ASEAN in HIGH ECONOMIC GROWTH 250 million People are online in ASEAN in Source: IMF, Quisumbing Torres, Statista. 17

18 VIETNAM - ECONOMIC SITUATION In 2017 Vietnam s economy grew by per cent! 6.8 Vietnam is considered as one of the fastest-growing countries in the world. In 2017 the export growth reached 21% while the FDI inflows set a record. Rapidly growing export Continual high FDI inflows Positive purchasing power In 2018 the GDP growth is expected to rise by 6.5% Source: IMF, General Statistics Office of Vietnam, MPI Vietnam. 18

19 35.9 bn US$ Registered FDI inflows in bn US$ GDP in % Export growth in % Growth of new FDI registrations in

20 VIETNAM ECONOMIC SITUATION VIETNAM HAS ENJOYED YEARS OF ROBUST GROWTH. GDP growth of Vietnam in % GDP of Vietnam in bn US$ F 2019F Source: IMF, Deutsche Bank, General Statistics Office of Vietnam. 20

21 VIETNAM 50% 45% 40% ECONOMIC SITUATION VIETNAM IS ON THE PATH TO BECOME AN INDUSTRIALISED COUNTRY. GDP BY SECTORS Services 33 percent is the share of industry in the GDP of Vietnam 41% 35% 30% 25% 20% 15% 10% 5% Industry and Construction Sector Agriculture, Forestry and Fishery 33% 15% 0% Source: General Statistics Office of Vietnam 21

22 VIETNAM ECONOMIC SITUATION GDP DISTRIBUTION ACROSS ECONOMIC SECTORS AND DIFFERENT TYPES OF COMPANIES Mining 7.5% Construction business 5.7% Finance, banking and insurance 5.5% Real estate 4.9% Supply of electricity, gas, water steam, warm water and air conditioning 4.3% Hotel business and gastronomy 3.8% Education and training 3.6% Fishery 3.4% Activities of the party, state administration and defence 2.8% Transport and storage 2.7% Health and social welfare 2.6% Specialized activities and technologies 1.3% Forestry 0.7% Information and communication 0.7% Art, entertainment and leisure 0.6% Water supply and sewage disposal 0.5% Agriculture 11.2% Wholesale and retail, repair of motor vehicles 10.7% Foreign companies 24% Others 40% 1% 2017 Manufacturing industry 15.3% 35% State-owned companies Private and domestic companies Source: General Statistics Office of Vietnam 22

23 VIETNAM ECONOMIC SITUATION INFLATION RATE IN VIETNAM VIETNAM HAS A MACROECONOMIC STABILITY SINCE YEARS AND THE PRICE INCREASE IS MODERATE 23.1% 18.7% The outlook of the upcoming months is quite positive. 8.4% 6.7% 9.2% 9.1% 6.6% 4.1% 2.7% 3.5% 0.6% Source: IMF, Deutsche Bank, GTAI 23

24 VIETNAM - FOREIGN TRADE THE VIETNAMESE FOREIGN TRADE IN BILLION US$ % Export growth in 2017 Vietnam s imports Vietnam s exports Import surplus Export surplus Source: General Statistics Office of Vietnam 24

25 VIETNAM FOREIGN TRADE VIETNAM S FOREIGN TRADE IN bn US$ Vietnam s export surplus The development of the Vietnamese foreign business continues to be on a positive way. 71% of Vietnam s exports are generated by FDIs. EU 12% USA 12% China 22% Korea 14% Important trade partners of Vietnam Japan 8% Source: General Statistics Office of Vietnam ASEAN 12% 25

26 VIETNAM FOREIGN TRADE VIETNAM S EXPORTS VIETNAM S MOST IMPORTANT BUYER COUNTRIES Canada 2.7 bn US$ USA 41.6 bn US$ 214 bn US$ Export volume in 2017 The US remains Vietnam s most important export market. The EU is the second largest buyers region, whereby Germany is the most important trade partner for Vietnam within the EU. Russia 2.2 bn US$ China 35.5 bn US$ Hong Kong 7.6 bn US$ Mexico 2.3 bn US$ India 3.8 bn US$ United Arab Emirates 5.0 bn US$ Korea 14.8 bn US$ Japan 16.8 bn US$ EU 38.3 bn US$ Source: General Statistics Office of Vietnam ASEAN 21.7 bn US$ Taiwan 2.6 bn US$ Australia 3.3 bn US$ 26

27 VIETNAM FOREIGN TRADE TOP EXPORT PRODUCTS OF VIETNAM IN 2017 IN BILLION US$ The most important export goods still include electronics, textiles and clothing, footwear, machines and spare parts. 32% 9% 37% 13% 26% Mobile phones & spare parts Textiles and clothing Computer & parts Footwear Machines & spare parts Fishery products 17% 9% 15% Wood and wood products Transport vehicle Engine parts Cameras and spare parts Source: General Statistics Office of Vietnam 27

28 VIETNAM USA 9.2 bn US$ Brazil 1.8 bn US$ Argentina 2.5 bn US$ EU 12.1 bn US$ FOREIGN TRADE VIETNAM S IMPORTS VIETNAM S MAIN SUPPLIER COUNTRIES Russia 1.4 bn US$ China 58.2 bn US$ Korea 46.7 bn US$ Japan 16.6 bn US$ Hong Kong 1.7 bn US$ 211 bn US$ Import volume in 2017 China is the most important supplier country of Vietnam, followed by Korea, ASEAN and Japan. Source: General Statistics Office of Vietnam 28 India 3.9 bn US$ Australia 3.2 bn US$ Taiwan 12.7 bn US$ ASEAN 28 bn US$

29 VIETNAM FOREIGN TRADE TOP IMPORT PRODUCTS OF VIETNAM IN 2017 IN BILLION US$ Machinery, computers and phones are Vietnam s top import products. 35% 19% The production of export goods in Vietnam is still dependent on the imported materials and inputs. 54% 9% 13% Computer & parts Machinery & spare parts Mobile phones & spare parts Textiles & clothes Iron & steel 16% 43% 13% 6% 23% Plastics Petroleum products Other metal products Prefabricated materials for the textile, clothing, leather & footwear industry Source: General Statistics Office of Vietnam Plastic products 29

30 VIETNAM FOREIGN TRADE EXPORT TO THE EU IN 2017 Austria 38.3 bn US$ Vietnam s export to the EU 5.4 United Kingdom 0,1 Ireland 2.5 Spain Poland 1.0 Sweden Germany Denmark Export to the EU in 2017 in bn US$ 11.8 bn US$ 7.1 Netherlands 3.4 France 2.7 Italy 2.3 Belgium 4.6 bn US$ 4.1 bn US$ 3.7 bn US$ 1.7 bn US$ 1.4 bn US$ 1.4 bn US$ 0.94 bn US$ 0.88 bn US$ 0.75 bn US$ 0.71 bn US$ 0.56 bn US$ 0.4 bn US$ Mobile phones & spare parts Footwear Computer & spare parts Textiles Machines Fishery products Coffee Cashew nut Bags & suit cases Wood & wood products Transportation & spare parts Plastic products Products made of iron & steel Source: General Statistics Office of Vietnam, Destatis 30

31 VIETNAM FOREIGN TRADE IMPORT FROM THE EU IN bn US$ Vietnam s imports from the EU 1.7 Italy 0.3 Sweden 0.7 Netherlands Austria Spain 0.4 Belgium Germany Denmark Vietnam s import from the EU in 2017 in bn US$ 1.4 Ireland 1.3 France 0.2 Poland 0.7 United Kingdom 3.4 bn US$ 1.4 bn US$ 0.51 bn US$ 0.31 bn US$ 0.25 bn US$ 0.23 bn US$ 0.22 bn US$ 0.22 bn US$ 0.2 bn US$ 0.16 bn US$ 0.15 bn US$ 0.15 bn US$ Machinery & plants Pharmaceutical products Chemical products Materials for the Transport textile, clothing, vehicles leather & footwear industry Plastics Chemicals Milk & dairy products Animal feed & commodities Goods made by iron & steel Computers & spare parts Wood & wood products Source: General Statistics Office of Vietnam, Destatis 31

32 VIETNAM FOREIGN TRADE EXPORT TO ASEAN IN bn US$ Vietnam s export to ASEAN 24% Export growth 2.8 Cambodia Philippines Singapore Malaysia 2.9 Indonesia Thailand Export to ASEAN in 2017 in bn US$ 3.1 bn US$ 38% bn US$ 24% bn US$ 73% 10% 16% 26% bn US$ bn US$ 0.9 bn US$ Mobile phones & spare parts Computers & spare parts Iron & steel Machinery & spare parts Transport vehicles Textiles & clothing Source: General Statistics Office of Vietnam, Destatis 32

33 VIETNAM FOREIGN TRADE IMPORT FROM ASEAN IN bn US$ Vietnam s import from ASEAN 17% Import growth from ASEAN 3.6 Indonesia Philippines Cambodia 5.9 Malaysia 10.5 Vietnam s import from ASEAN in 2017 in bn US$ 5.3 Singapore Thailand % bn US$ 3.2 6% 2.2 bn US$ bn US$ 17% % 1.1-5% % % bn US$ bn US$ bn US$ bn US$ Petroleum products Computer & parts Machinery & spare parts Plastics Household appliances Automotive & components Chemicals Source: General Statistics Office of Vietnam, Destatis 33

34 VIETNAM - INVESTMENT Vietnam becomes increasingly attractive to foreign investors! 34

35 FDI VIETNAM Jobs created** 2,800,000 Provinces with the largest FDI capital volume** Ho Chi Minh City, Hanoi, Binh Duong FDI Total number of FDI projects* 25,953 Cumulated registered capital* 331 bn US$ The largest sources of FDI* South Korea, Japan and Singapore * Calculated until June 20, 2018 ** Calculated at the end of 2017 Top FDI sectors* Manufacturing industry, electricity, gas and water, and real estate Source: General Statistics Office of Vietnam, GTAI 35

36 VIETNAM INVESTMENT REGISTERED FDI CAPITAL IN VIETNAM FROM 2007 TO ,843 2,120 1, ,503 2,591 Number of new FDI projects Registered capital (bn US$) TOP REASONS FOR THE FDI DEVELOPMENT Low wages High level of education 1,530 Relatively uncomplicated investment regulations 1,171 1,208 1,237 1,191 1,287 Free trade agreements Geography Economic growth Stable governmental policies Improved infrastructure Soft factors Source: General Statistics Office of Vietnam, MPI. 36

37 VIETNAM INVESTMENT VIETNAM S LEADING FDI SOURCES CUMULATED CAPITAL BY COUNTRIES IN BILLION US$ South Korea Japan Singapore Taiwan British Virgin Islands Hong Kong China Malaysia Thailand USA Netherlands Cayman Islands Samoa Canada United Kingdom France Luxemburg Switzerland Australia Germany Top 3 of FDI providers are South Korea, Japan & Singapore. Source: GOV, MPI. 37

38 VIETNAM INVESTMENT FDI IN PROVINCES IN BILLION US$* Hanoi 32.9 bn US$ 9.9% Bac Ninh 16.6 bn US$ 5% Thai Nguyen 7.4 bn US$ 2.2% LC ĐB CB HG LC BK TQ YB LS TN PT VP BG SL BN QN HYHD HP HB HN TB Hai Phong 16.4 bn US$ 5% NĐ NB TH Hai Duong 7.5 bn US$ 2.3% NA HT QB Thanh Hoa 13.8 bn US$ 4.2% Ha Tinh 11.6 bn US$ 3.5% QT TTH DN QN KT QN Dong Nai 27.7 bn US$ 8.4% Ho Chi Minh City 45.5 bn US$ 13.7% GL ĐL BĐ PY KH ĐN LĐ BP NT TN BD ĐN BT LA AG ĐT VT TGBT CT VL KGHG TV ST BL CM Binh Duong 30.7 bn US$ 9.3% Vung Tau 28.6 bn US$ 8.6% * Calculated until June 20, 2018 Source: GOV, MPI. 38

39 VIETNAM INVESTMENT Foreign direct investments increase steadily! LC ĐB CB HG LC BK TQ YB LS TN PT VP BG SL BN QN HYHD HP HB HN TB NB NĐ TH NA HT QB QT TTH DN QN KT GL ĐL QN BĐ PY KH ĐN LĐ BP NT TN BD ĐN BT LA AG ĐT VT TGBT CT VL KGHG TV ST BL CM Well-known electronics companies like Samsung, LG and Panasonic expand their activities in Hanoi and the surroundings or even establish new factories there. Still, the south of Vietnam specializes on manufacturing industries, notably the footwear and textile industries. Foreign companies have been mainly investing in the production and focus on exports. In 2017 the contribution of FDIs to Vietnamese exports amounts to 71 per cent. Vietnam became a notable part of the regional supply chain of major enterprises worldwide. Source: AHK Vietnam, GTAI 39

40 VIETNAM INVESTMENT NEW FDI IN VIETNAM IN 2017 FDI in Vietnam hit new record in bn US$ Registered investment capital volume The largest sources of FDI 1. Japan 2. South Korea 3. Singapore 4. China 5. British Virgin Islands 6. Hong Kong 7. Taiwan 8. Netherlands 9. USA 10. Thailand 11. Samoa 20. Germany Provinces with the largest FDI capital volume Source: General Statistics Office of Vietnam, MPI. 1. Ho Chi Minh City 2. Bac Ninh 3. Thanh Hoa 4. Binh Duong 5. Hanoi 6. Khanh Hoa 7. Nam Dinh 8. Dong Nai 9. Kien Giang 10. Tay Ninh 40

41 VIETNAM INVESTMENT TOP FDI SECTORS IN 2017 Manufacturing 15,876 m US$ Power, gas, water, air conditioning 8,374 m US$ Real estate 3,054 m US$ Wholesales and retail, repair of vehicles 2,446 m US$ Mining 1,289 m US$ Construction 1,133 m US$ Technology 1,028 m US$ Water supply, sewage and waste disposal 568 m US$ Hotel and gastronomy 513 m US$ Source: General Statistics Office of Vietnam, MPI. 41

42 VIETNAM INVESTMENT WORLD BANK S EASE OF DOING BUSINESS RANKINGS IN 2018 THE PROJECT PROVIDES OBJECTIVE MEASURES OF BUSINESS REGULATIONS AND THEIR ENFORCEMENT ACROSS 190 ECONOMIES. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Vietnam is making progress. Vietnam rises 14 places in this ranking to 68 th. Vietnam s significant improvements were made in the area of: Doing Business Index 2018 Singapore Germany Malaysia Thailand Vietnam Indonesia China Philippines Cambodia Laos Myanmar Source: World Bank Ranking Dealing with construction permits Getting credit Getting electricity Enforcing contracts Protecting investors Paying taxes 42

43 VIETNAM INVESTMENT GLOBAL COMPETITIVENESS INDEX THIS INDEX PUBLISHED BY THE WORLD ECONOMIC FORUM MEASURES THE SET OF INSTITUTIONS, POLICIES, AND FACTORS THAT SET THE SUSTAINABLE CURRENT AND MEDIUM-TERM LEVELS OF ECONOMIC PROSPERITY Ranking/137 countries Singapore 3 Germany 5 Malaysia Thailand Indonesia Vietnam moved up to 5 places to 55 th. Brunei Vietnam The competitive advantages of Vietnam: Philippines 56 Cambodia 94 Laos 98 The market volume The competitive labour market Better education Source: World Economic Forum 43

44 VIETNAM- LABOUR MARKET VIETNAM S LABOUR MARKET AT A GLANCE POPULATION 93.7 m HANOI BAC NINH HAI PHONG LABOUR FORCE 55.2 m UNEMPLOYMENT RATE 2% DANANG 40% OF EMPLOYEES ARE WORKING IN THE AGRICULTURAL INDUSTRY BINH DUONG DONG NAI HO CHI MINH CITY Source: General Statistics Office of Vietnam Hanoi and Ho Chi Minh City offer the largest pool of qualified employees: Thanks to: Dynamic economy High living quality standard High wages 44

45 VIETNAM LABOUR MARKET VIETNAM S PRODUCTIVITY (Mio.) ,703 Enhanced productivity Implementation of modern machines and technologies to improve the productivity 2,045 2, , , , , ,507 3, US$/employed persons 4,055 3, Number of employed persons in Vietnam (in million) Productivity (GDP in US$/employed persons) Source: General Statistics Office of Vietnam 45

46 VIETNAM LABOUR MARKET LABOUR FORCE IN 2017 IN MILLION Source: General Statistics Office of Vietnam 46

47 VIETNAM LABOUR MARKET EMPLOYED PERSON BY SECTORS OF ECONOMY IN % Argriculture, forestry & fishery 18% Manufacturing 13% Wholesale & retail trade, repair of vehicles 8% Construction 5% Hotels & gastronomy 4% 3.3% Training & education Transport & storage 3.2% State administration 1.6% Other service activities 1% Health & social services 0.7% 0.6% Finance, banking & insurance IT & communication 0.6% Administrative activities 0.5% Art & entertainment 0.5% Technology Source: General Statistics Office of Vietnam 47

48 VIETNAM LABOUR MARKET EDUCATION AND TRAINING SYSTEM IN VIETNAM Research & Development Upper secondary (3 years) University education (4-6 years) Kindergarten (3 years) Primary (5 years) Lower secondary (4 years) Further training CHALLENGE SKILLED WORKER TRAINING College education (3 years) Professional secondary (2 years) Vocational training (2 years) Practice & Applications IMPRACTICAL EDUCATION SYSTEM Lack of practical contents and intensive on-the-job-training. NOT ENOUGH VOCATIONAL APPRENTICES University education enjoys a higher value than a vocational training. A FEW SCIENTISTS Law and business enjoy higher level of recognition in Vietnam s society. 48

49 VIETNAM No professional qualification LABOUR MARKET EMPLOYED PERSONS BY EDUCATION QUALIFICATION IN 2017 IN MILLION Vocational training >= 3 months Male Female Professional secondary College education University ! Qualification of candidates is still challenging! Lack of sufficient practical attituded training Demanding jobs require professionals with higher pre-qualification and work experiences. Source: General Statistics Office of Vietnam In cooperation with German companies, the AHK Academy promotes dual vocational training for Vietnamese employees according to the DIHK - German standard. The training program Dual Vocational Training includes qualified occupations such as industrial mechanic, mechatronics, chef and restaurant specialist, freight forwarding and logistics agent, and industrial fashion tailor. PartnerForEducationAndTraining 49

50 VIETNAM LABOUR MARKET STATUTORY MINIMUM MONTHLY WAGES IN VIETNAM IN 2018 HANOI HAI PHONG Vietnam s minimum monthly wages were increased by 6% in 2018 Statutory minimum monthly wages in Vietnam 2018 Region 1: Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong, Hai Phong, Ba Ria Vung Tau Region 2: Bac Ninh, Da Nang, Long An Region 3 Region 4 VND 3,980,000 VND 3,530,000 VND 3,090,000 VND 2,760, US$ 155 US$ 136 US$ 121 US$ 30.2% BINH DUONG DONG NAI 13.1% 17.4% 15.2% 14.3% 12.5% 7.3% 6% HO CHI MINH CITY BA RIA-VUNG TAU Percentage increase of minimum monthly wages in Vietnam Source: General Statistics Office of Vietnam 50

51 VIETNAM LABOUR MARKET MINIMUM MONTHLY WAGES IN 2018 BY COMPARISON China 331 US$ Thailand 299 US$ Philippines 287 US$ Malaysia 248 US$ Indonesia 234 US$ Vietnam 175 US$ Cambodia 170 US$ Laos 108 US$ Myanmar 77 US$ Source: Philippines Statistics Authority, General Statistics Office of Vietnam. 51

52 VIETNAM LABOUR MARKET WAGES AND OCCUPATION IN VIETNAM IN 2017 Labour costs in Vietnam are among the lowest in Asia. This fact encourages foreign investments in Vietnam. Highest Paying Jobs Office manager 5 years experience US$ 1,300 per month Software developer 5 years experience US$ 1,400 per month Project engineer 7 years experience US$ 1,600 per month Marketing manager 5 years experience US$ 2,000 per month HR manager 8 years experience US$ 2,600 per month Factory director 20 years experience US$ 7,600 per month Accountant 7 years experience US$ 3,200 per month Source: GTAI, Adecco Salary Survey

53 VIETNAM LABOUR MARKET MONTHLY WAGES, ANNUAL BONUS AND OCCUPATIONS IN JAPANESE COMPANIES IN SELECTED COUNTRIES IN 2017 Monthly wages in US$ Industrial worker Engineer Factory manager Office worker Sales manager Singapore 1,630 2,971 4,454 2,422 4,269 Malaysia , ,948 China , ,917 Thailand , ,674 Indonesia , ,169 Philippines ,213 Vietnam ,261 Myanmar ,027 Cambodia ,005 Laos Bonus (in month) Industrial worker Engineer Factory manager Office worker Sales manager Thailand Singapore Indonesia Malaysia China Philippines Vietnam Myanmar Laos Cambodia Source: JETRO 53

54 VIETNAM - INFRASTRUCTURE ECONOMIC GROWTH AND INDUSTRIALIZATION LEAD TO INCREASING REQUIREMENTS FOR TRANSPORTATION AND LOGISTICS. HANOI The development of the infrastructure is a central intention of the Vietnamese government. The majority of foreign investments can be found in the regions around Ho Chi Minh City and also in the regions around Hanoi. Those areas illustrate the most advanced infrastructure and the highest availability of qualified employees. Both regions grow dynamically with a fast-growing middle class. HO CHI MINH CITY Source: General Statistics Office of Vietnam, GTAI 54

55 VIETNAM INFRASTRUCTURE TRANSPORTATION VOLUMES BY TRANSPORT MODES IN M ar i ti m e t 51 ransp.8 ort % bn ton-km Total traffic service in

56 VIETNAM INFRASTRUCTURE LOGISTICS PERFORMANCE INDEX 2018 A comprehensive comparison of the logistics infrastructure and efficiency in 160 countries 56

57 Germany Singapore China Thailand Ranking IMPROVED LOGISTICS INDICATORS IN VIETNAM Logistics infrastructure Logistics competence Vietnam Malaysia (up from 64 th in 2016) Customs Indonesia 46 Timeliness Philippines 60 Source: The World Bank 57

58 VIETNAM INFRASTRUCTURE INTERNATIONAL AIRPORTS LC ĐB CB HG LC BK TQ YB LS TN PT VP BG SL BN QN HYHD HP HB HN TB NB NĐ TH NA Vietnam is one of the world s fastest growing aviation markets! Main airports: Noi Bai in Hanoi Tan Son Nhat in Ho Chi Minh City HT QB THAILAND QT TTH DN QN QN KT BĐ GL KAMBODSCHA ĐL PY KH ĐN LĐ BP NT TN BD ĐN BT LA AG ĐT VT TGBT CT VL KGHG TV ST BL CM Source: Vietnam Maritime Administration, GTAI 58

59 Vietnam has 22 civil airports, including 9 international ones. International airports: Hanoi (Noi Bai) Ho Chi Minh City (Tan Son Nhat) Da Nang (Da Nang) Khanh Hoa (Cam Ranh) Kien Giang (Phu Quoc) Can Tho (Can Tho) Hue (Phu Bai) Hai Phong (Cat Bi) Nghe An (Vinh) Long Thanh International Airport Project Approval: November 2016 Start of construction 1 st phase: 2019 Completion: 2025 Airport with capacity of 100m passengers and 5m tons of air freight per year. Van Don International Airport Project Airport with capacity of 5m passengers per year. 59

60 VIETNAM INFRASTRUCTURE SELECTED SEAPORTS IN VIETNAM LC ĐB CB HG LC BK TQ YB LS TN PT VP BG SL BN QN HYHD HP HB HN TB NB NĐ TH NA HT Lach Huyen port in Hai Phong Completion: May 2018 (1st phase) Largest international seaport in North Vietnam. Ships up to DWT or TEU candock here. 14km quayside (2021). Capacity of 95m tons of cargo per year. Important setting of the course for the entire region. Encourage the development and investments in the surrounding industrial areas. Construction of a seaport in Quang Ninh. Start of construction: in piers, 21,129ha of logistics area. QB THAILAND QT TTH DN QN QN KT BĐ GL Lien Chieu port (Da Nang) Deep seaport for container shipping with a capacity of 7,000 TEU per ship. Extension of the Cai Mep - Thi Vai deep seaport in Ba Ria-Vung Tau with a capacity of 6.8m TEU per year. Source: GTAI KAMBODSCHA ĐL PY KH ĐN LĐ BP NT TN BD ĐN BT LA AG ĐT VT TGBT CT VL KGHG TV ST BL CM Ships with loading capacities of up to 150,000 DWT can be shipped. Construction of the new deep-seaport Hon Khoai in the southern province Ca Mau. Investment of 2.5 bn US$, to dispatch ships up to 250,000 DWT. 320ha seaport on the island of Hon Khoai and 15km from the Ca Mau province. 60

61 Vietnam s sea freight improved due to an extensive expansion of the harbour! Until 2020: An increasing sea freight volume up to 680 million tons. Investing 3.8 bn US$ in port infrastructure until 2020 Source: Vietnam Maritime Administration 61

62 VIETNAM ROAD INFRASTRUCTURE Bac Can Lao Cai Lang Son Thai Nguyen Bac Giang Phu Tho Ha Noi Bac Ninh Mong Cai Dien Bien Phu Hoa Binh Ha Long Ninh Binh Hai Phong According to the government s master plan, road constructions have priority. Cua Rao Thanh Hoa Expansion of the north-south expressway THAILAND Ha Tinh Dong Hoi Hue Quang Tri Da Nang Quang Nam Quang Ngai Additionally, connection of the following important traffic junctions and expressways will be in focus: Ninh Binh - Thanh Hoa - Vinh Expressway Dau Giay - Phan Thiet - Expressway Road section Quang Ngai - Quy Nhon CAMBODIA Pleiku An Nhon Quy Nhon Tuy Hoa Binh Phuoc Dong Xoai Da Lat Nha Trang Thu Dau Mot Tay Ninh Bien Hoa An Giang Phan Thiet Tan An HCMC Chau Doc Ha Tien Vung Tau Can Tho Rach Gia Soc Trang Ca Mau Bac Lieu Buon Ma Thuat Source: GTAI 62

63 VIETNAM INFRASTRUCTURE RAILWAY SYSTEM CURRENT PLAN 1000 mm 1435 mm 1726 km 1542 km Ha Noi Phu Ly Stations 33 Stations 23 Nam Dinh Ninh Binh Thanh Hoa THAILAND Vinh Ha Tinh Vung Ang Dong Hoi Dong Ha Hue Da Nang Tam Ky Quang Ngai Speed 70 km/h Speed 200 km/h to km/h to 2050 CAMBODIA Phu My Dieu Tri Tuy Hoa Nha Trang Thap Cham Tuy Phong Long Thanh Ho Chi Minh City The north-south high-speed rail network (planned) The north-south railway network (currently) Total rail network is divided into 4 sections: Hanoi-282km-Vinh Vinh-432km-Da Nang Da Nang-472km-Nha Trang Nha Trang-363km-Ho Chi Minh City Source: Vnexpress 63

64 VIETNAM ENERGY INFRASTRUCTURE Vietnam s demand for energy is growing fast! Annual demand increases by 10-12%. The Vietnamese energy supply essentially bases on coal and hydropower. The share of renewable energy increased significantly. In November 2016, Vietnam refused to use nuclear energy. Hydroelectric power Coal-fired power Gas power Wind power Solar power Others Total No information No information Energy mix of Vietnam from 2016 to 2030 (installed capacities in GW) Source: GTAI, Vietcombank Securities, Revised Power Master Plan VI 64

65 VIETNAM INFRASTRUCTURE RENEWABLE ENERGY IN VIETNAM Share of renewable sources is expected to increase to 7% in Vietnam offers good conditions to get both wind and solar energy. The 3,000km coastline has considerable potential for wind energy (24 GW of installable capacity). Particularly, solar energy offers potential. Concerning solar energy, the country is well equipped and has potential to generate 4 to 5 kwh/sqm solar energy per day. Due to new feed-in tariffs, photovoltaics attracts foreign investors! Investment incentives for energy products: Tax reduction for solar companies. Exemption from import tariffs on components that can not be obtained in Vietnam. Facilitation of the issuance of land use rights. Source: GTAI, Vietcombank Securities, Revised Power Master Plan VII 65

66 VIETNAM - GLOBAL INTEGRATION FREE TRADE AGREEMENTS (FTAS) The conclusion of free trade agreements supports the integration of the country into the global economy. RCEP (Pending, includes ALL ASEAN countries) P.R. China India South Korea Israel Hongkong ASEAN (Ratified) Australia Brunei Malaysia Japan VIETNAM Cambodia Laos Philippines New Zealand Indonesia Myanmar Thailand CPTPP (Pending, only includes 4 ASEAN countries) Canada Chile Mexico Peru EFTA Iceland Liechtenstein Norway Switzerland Singapore EU 28 Austria Belgium Bulgaria Croatia Cyprus Czech Rep Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden UK EAEU Armenia Belarus Kazakhstan Kyrgyzstan Russia Ratified Concluded Pending No. of FTA partners worldwide: 58 66

67 VIETNAM GLOBAL INTEGRATION FTAS: CURRENT OVERVIEW AEC Entered into force in January 1, Around 90% of the tariff rates have been 0% as before. EU-VIETNAM- FTA Negotiated and signed Ratification in early 2019 Implementation in 2019 (CP)TPP 11 14% of world GDP incl. Japan Negotiated and signed RCEP Is still negotiated. 32% of world GDP incl. China Implementation still unclear 67

68 VIETNAM GLOBAL INTEGRATION EU-VIETNAM FREE TRADE AGREEMENT (EV-FTA) THE REDUCTION OF TARIFFS FACILITATES THE MARKET ENTRY FOR GERMAN COMPANIES! The EU-Vietnam FTA also offers new business opportunities for German exporters and service providers in Vietnam. The EV-FTA will come into effect in Vietnam is for European companies a lucrative alternative to China. Tariff reductions, rules of origin, services, public procurement and investment protection have priority. The access for German products to the increasingly important Vietnamese market is ensured. Automotive Medicines Alcoholic beverages Services and e-commerce, investments Sustainable development, renewable energy Purchasing (metal, electronics, textiles and agricultural products). 68

69 VIETNAM GLOBAL INTEGRATION COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP SIGNED IN MARCH m Inhabitants 10 bn US$ Economic performance 14% of global economic power VIETNAM COULD HIGHLY BENEFIT FROM CPTPP. 11 countries concluded the CPTPP (Comprehensive and Progressive Trans Pacific Partnership) after the failure of the TPP trade pact. Source: Vietnam Investment Review, Saigon Times 69

70 70

71 VIETNAM ASEAN 71

72 VIETNAM - ASEAN VIETNAM Myanmar Laos Vietnam Land surface (km 2 ) 330,967 Population (m) 93.6 Labour force (m) 57.5 Unemployment 2.1% Thailand Philippines Cambodia Malaysia Brunei Singapore Indonesia 72

73 THAILAND Land surface (km 2 ) 513,120 Population (m) 69.1 Labour force (m) 39.1 Unemployment 1.1% LAOS Land surface (km 2 ) 236,800 Population (m) 7.3 Labour force (m) 3.6 Unemployment 0.7% INDONESIA Land surface (km 2 ) 1,910,931 Population (m) Labour force (m) Unemployment 4.3% MYANMAR Land surface (km 2 ) 676,590 Population (m) 52.6 Labour force (m) 25.4 Unemployment 0.8% MALAYSIA Land surface (km 2 ) 330,800 Population (m) 32.2 Labour force (m) 15.4 Unemployment 3.4% PHILIPPINES Land surface (km 2 ) 300,000 Population (m) Labour force (m) 44.6 Unemployment 2.8% CAMBODIA Land surface (km 2 ) 181,040 Population (m) 16.0 Labour force (m) 9.3 Unemployment 0.2% Source: IMF, The World Bank BRUNEI Land surface (km 2 ) 5,770 Population (m) 0.4 Labour force (m) 0.2 Unemployment 7.1% SINGAPORE Land surface (km 2 ) 719 Population (m) 5.6 Labour force (m) 3.3 Unemployment 2.0% 73

74 VIETNAM ASEAN THE ESTABLISHMENT OF THE ASEAN ECONOMIC COMMUNITY (AEC) IN 2015 IS A MAJOR MILESTONE IN THE REGIONAL ECONOMIC INTEGRATION AGENDA IN ASEAN. FDI inflows in ASEAN in 2017 (in bn US$) Inflation rates in ASEAN in 2017 (in %) Singapore 63.6 Vietnam 3.5% Philipines 3.6% Indonesia Vietnam Indonesia 4.5% Singapore 1.1% Philipines 10 Laos 2.3% Thailand 1.4% Malaysia Thailand Myanmar Myanmar Cambodia 6.9% 3.2% Malaysia Brunei 2.7% -7.7% Vietnam provides the lowest market entry barriers for foreign companies. GDP growth in ASEAN in 2017 (in %) 7.5% 6.9% 6.8% 6.8% 6.8% 5.1% 4.5% 3.0% 2.2% -1.3% Myanmar Cambodia Laos Vietnam Philippines Indonesia Malaysia Thailand Singapore Brunei Source: IMF, The World Bank, GSO. 74

75 VIETNAM - OUTLOOK PWC : VIETNAM - THE MOST FAST-GROWING COUNTRY UNTIL 2050 VIETNAM, THE PHILIPPINES AND NIGERIA RECORD THE MOST REMARKABLE PROGRESSES IN THE RANKING. MOVE UP 12 PLACES 2050 MOVE UP 9 PLACES 20 th 19 th 2050 MOVE UP 8 PLACES th 5.1 % 4.3 % 4.2 % nd GDP th GDP nd GDP VIETNAM PHILIPPINES NIGERIA Source: PWC 75

76 VIETNAM OUTLOOK THE STRATEGICALLY FAVOURABLE GEOGRAPHICAL LOCATION OF VIETNAM VIETNAM IS ON THE WAY TO BECOME AN ATTRACTIVE ALTERNATIVE TO CHINA. The strong connections within Asia and to Western countries make Vietnam suitable for a company that follows a China +1 and / or Japan-Third-Country business-strategy. China +1: Diversification of manufacturing capacity and supply chains by expanding new locations, additional to existing ones in China. Business with Japanese companies abroad such as the Third-Country-Business, increasingly gains in strategic importance. 76

77 VIETNAM OUTLOOK THE LONG MARCH FROM CHINA More and more companies are pursuing a so-called China plus One strategy when it comes to business activities in Asia. GERMAN COMPANIES MOVE AWAY BECAUSE OF: Diversification & development of new procurement channels Rising wages Difficult suppliers 77

78 78

79 VIETNAM GERMANY 79

80 VIETNAM - GERMANY Germany is Vietnam s most important trade partner in the EU and thereby the sixth largest buyer country of Vietnamese goods! 80

81 1.8 bn US$ Investment capital 14.8 bn US$ Trade volume between Germany and Vietnam FDI 301 FDI projects German companies may benefit from the EU-Vietnam FTA in the future. Source: GTAI, Statistisches Bundesamt (Destatis) 81

82 VIETNAM GERMANY AHK WORLD BUSINESS OUTLOOK 2018 VIETNAM IS AN ATTRACTIVE INVESTMENT DESTINATION FOR GERMAN COMPANIES According to a survey of the AHK Vietnam network Vietnam s growth engine Challenges Export-oriented manufacturing industry Free Trade Agreement EVFTA & CPTPP Lack of skilled workers Rising public debt Powerful growth of the service sector Supplier finding Corruption 82

83 VIETNAM GERMANY VIETNAM S FOREIGN TRADE WITH GERMANY (IN BILLION US$) Trading volume Vietnam's export to Germany Vietnam s import from Germany Export surplus Source: GSO, Statistisches Bundesamt (Destatis) 83

84 VIETNAM GERMANY GERMANY S MAIN IMPORT GOODS FROM VIETNAM IN 2017 Export to Germany m US$ % Mobil phones & parts Footwear Textile Electronics Coffee Machinery & equipment Fishery products Bags, pockets, wallets, suitcases, hats & umbrellas Plastics Wood & wood products Cashew nuts Transportation vehicles Iron & steel Rubber Toys, games & sports requisites Pepper Rubber products Rattan, bamboo & rush products Auxiliary materials for textile, garment, leather, footwear Sweets, cookies & cereal preparations 1, % 30% 2% 18% -4% 30% 4% 17% 5% 3% 5% -4% 7% 44% 33% -33% 9% -11% 20% 25% Vietnam's export to Germany 10.8 bn US$ Source: General Statistics Office of Vietnam 84

85 VIETNAM GERMANY GERMANY S MAIN EXPORT GOODS TO VIETNAM IN 2017 Vietnam's import from Germany 4 bn US$ Import from Germany Machinery & equipment Pharmaceutical products Automotive & parts Chemical products Synthetics Cars CBU Chemicals Wood products Electronics Dairy products Iron, Steel Insecticides & commodities Synthetical products Cloth Auxiliary materials for textile, garment, leather, footwear Transportation products Iron, Steel Other metal products Rubber products Pharmaceutical materials m US$ 1, % -1% 40% 25% 12% 33% -30% 29% 39% -5% 29% 22% 17% 11% 18% -2% 33% 84% -64% 7% -4% Source: General Statistics Office of Vietnam 85

86 VIETNAM GERMANY GERMAN FDI-PROJECTS IN VIETNAM 1.8 bn US$ Investment volume 301 FDI projects Germany only comes up to the 20 th place of the most important investors. However, this number does not reflect the total engagement. German investments also flow to Vietnam via third countries. 86

87 Sector Number of projects The total investment (in m US$) Provinces Number of projects The total investment (in m US$) Manufacturing Electricity, gas & water production & air condition Wholesale & retail; repair of automobiles, motorcycles Watersupply & waste treatment Hotel & restaurant Science & technology Healthcare Administrative & operative support service Other services Building sector Finance, banking & insurance Education & training Information & communication Logistics Commodities Property Art & entertainment Total 301 1,779.4 Source: General Statistics Office of Vietnam Dong Nai Ho Chi Minh City Ninh Thuan Thanh Hoa Hanoi Ba Ria - Vung Tau Quang Ngai Soc Trang Hai Duong Hai Phong Quang Binh Binh Duong Quang Nam Can Tho Binh Dinh Quang Ninh Thai Nguyen Long An Hung Yen Nam Dinh Da Nang

88 VINFAST Lighthouse project of Vietnam s domestic economy 88

89 VIETNAM S FIRST AUTOMOBILE MANUFACTURER EQUIPPED WITH GERMAN TECHNOLOGY AND REFINED BY ITALIAN DESIGN WITH GERMAN KNOW-HOW The cars are produced with German machinery and by well trained workers based on German standards (DIHK). IT Technology Data Management & Control SIEMENS SAP Production facilities/automotives BMW GROB ABB DÜRR FFT EBZ BOSCH MAG EISENMANN SCHULER THYSSENKRUPP Professionals: Dual vocational training based on DIHK standards GIC/AHK VIETNAM ECKERT SCHULEN Source: Vinfast 89

90 90

91 EVENT CALENDAR 91

92 TRADE FAIR CALENDAR Metalworking, welding technology and machinery Date Trade Fair Location MTA HANOI METALEX VIETNAM Plastic and rubber industry International Metal & Metallurgy Expo in Vietnam Hanoi Ho Chi Minh City Ho Chi Minh City Date Trade Fair Location VIETNAMPLAS Ho Chi Minh City Complast Vietnam Ho Chi Minh City PLASTICS & RUBBER Vietnam Hanoi Paper and printing industry Date Trade Fair Location ProPak Ho Chi Minh City Construction technology and equipment, furniture interior design and decoration Date Trade Fair Location VIETNAMWOOD Ho Chi Minh City VIETBUILD HA NOI INTERNA- TIONAL EXHIBITION (PHASE 2) VIETBUILD HCMC (PHASE 2) INTERNATIONAL EXHIBITION VIETBUILD HA NOI INTERNA- TIONAL EXHIBITION (PHASE 3) VIETBUILD HOME INTERNATIONAL EXHIBITION Medical technology, health and pharmacy Hanoi Ho Chi Minh City Hanoi Ho Chi Minh City Date Trade Fair Location PHARMEDI VIETNAM Ho Chi Minh City VIETNAM MEDI-PHARM EXPO Hanoi Vietnam Medi-Pharm 2019 Hanoi 92

93 TRADE FAIR CALENDAR Electrical engineering and electronics Date Trade Fair Location Nepcon Vietnam Hanoi May 2019 ENTECH Ho Chi Minh City water technology Date Trade Fair Location VIETWATER Ho Chi Minh City Heating, refrigeration plant, air conditioning and sanitary Date Trade Fair Location HVACR VIETNAM Ho Chi Minh City Food, drinks, hotel industry Date Trade Fair Location VIETFOOD & BEVERAGE FOODEXPO FHV VIETNAM Textiles, including fabrics and home textiles Hanoi Ho Chi Minh City Ho Chi Minh City Date Trade Fair Location HanoiTex Hanoi VTG - Vietnam International Textile& Garment Industry Exhibition Saigonfabric Ho Chi Minh City Ho Chi Minh City shipbuilding Date Trade Fair Location Januar VIETSHIP Hanoi Maritime industry Date Trade Fair Location Marine Vietnam Vung Tau City 93

94 TRADE FAIR CALENDAR Cars, commercial vehicles, motorcycles, bicycles, parts and accessories Date Trade Fair Location Vietnam Cycle Automechanika Ho Chi Minh City 2018 Security and disaster management Ho Chi Minh City Ho Chi Minh City Date Trade Fair Location SECUTECH Hanoi Tourismus Date Trade Fair Location ITE Ho Chi Minh City Mining and geodesy Date Trade Fair Location CONTECH Vietnam 2018 Hanoi Personal hygienics and cosmetics Information and communication technology Date Trade Fair Location Broadcast & AV Ho Chi Minh City Date Trade Fair Location July 2019 VIETBEAUTY Ho Chi Minh City Hardware and hand tools Datum Messe Ort International Exhibition on handware and hand tools Ho Chi Minh City 94

95 EVENT SCHEDULE Consultancy days in Germany Date Event Location Mon., Individual consultancy Stuttgart Thu., Consultancy Vietnam Darmstadt Wed., Business Day Vietnam Schwerin Tue., Business Day Vietnam Rheinhessen Tue., International consultancy Stuttgart Wed., Asia-Pacific Forum Nuremberg Delegation trips to Vietnam Date Event Location Energy efficiency and energy management industry in Mon. - Fri Ho Chi Minh City Vietnam Tue. - Fri Baden-Württemberg Delegation to Vietnam Ho Chi Minh City & Hanoi Events in Vietnam Date Event Location Monthly Monthly GBA Business Ho Chi Minh City Monthly Business Thursday Hanoi Monthly DeutschTreff Ho Chi Minh City & Hanoi 95

96 96

97 DELEGATE OF GERMAN INDUSTRY AND COMMERCE IN VIETNAM (GIC/AHK VIETNAM) (GIC/AHK VIETNAM) 97

98 THE AHK GLOBAL NETWORK 2,000 EMPLOYEES 140 LOCATIONS IN 92 COUNTRIES The GIC/AHK Vietnam mediates contacts to potential business partners, represents the interests of the German enterprises towards decision-makers in politics and administration and encourages the German economy with new trends and developments to global markets at the earliest possible stage. 98

99 AHK VIETNAM 99

100 THE HISTORY OF GIC/AHK VIETNAM 1993/1994 Foundation of the Delegate of German Industry and Commerce in Vietnam - 1st office Ly Thai To, Hanoi 2003 Office in Hanoi, Tran Quang Khai, Hanoi 2005 Opening 2. Office in Ho Chi Minh City 2012 Launching the Individual services 2014 APK in Vietnam May 2015 AHK Vietnam active on Facebook, Twitter, YouTube October 2015 First Talentbiz - German Job Fair event November 2015 Launching the project ProRecognition 1995 Foundation of GBA 2004 Official representative of the state Saxony-Anhalt in Vietnam January 2008 Official representative of the Free State Bavaria in Vietnam 2013 Launching the dual vocational training programs in Vietnam First German Ball in Vietnam January 2015 Internal agreement to establish a bilateral AHK 100

101 Official representative of the State Baden-Württemberg in Vietnam - Official representative of Schleswig-Holstein Business Center year anniversary of GIC/AHK Vietnam 2018 New office in Deutsches Haus Ho Chi Minh City 2016 New office in Hanoi Lotte years 101

102 DELEGATE OF GERMAN INDUSTRY AND COMMERCE IN VIETNAM FOR YOUR BUSINESS SUCCESS IN VIETNAM WE ARE THE OFFICIAL REPRESENTATIVE OF THE GERMAN ECONOMY TOWARDS POLITICS AND ADMINISTRATION IN VIETNAM AND ADVISED GERMAN COMPANIES IN VIETNAM SINCE OUR SERVICES PartnerForGrowth MARKET CONSULTING PROJECTS AND DELEGATIONS DUAL VOCATIONAL TRAINING REPRESENTATION OF STATES AND TRADE FAIRS IN GERMANY COMMUNICATION 102

103 SERVICES > MARKET CONSULTING THE GIC/AHK VIETNAM S INDIVIDUAL SERVICES PROVIDES YOU COMPREHENSIVE CONSULTING AND ASSISTANCE IN DEVELOPING AND EXPANDING YOUR BUSINESS ACTIVITIES IN VIETNAM MARKET INFORMATION Free initial consultation Professional market analysis ADVISE ON MARKET ENTRY Supplier search Finding a sales partner Location analysis COMMUNICATION Marketing support Sponsorship and advertising opportunities MORE INDIVIDUAL SERVICES Travel organization and companion Office in Office HR Consulting Seminars / PR events Company information German Business Incubator Vietnam Contact person: Mr. Björn Koslowski Tel.: +84 (24) Fax: +84 (24) koslowski.bjoern@vietnam.ahk.de 103

104 SERVICES > PROJECTS & DELEGATIONS We support German companies in doing business in Vietnam according to a wide range of basic and specific services, as well as various supporting programs. Product presentations, workshops and seminars in Vietnam 5 4 Seminars on Vietnam 1 Energy export initiative Business delegations 2 Market development program of the BMWi 3 Contact person: Ms. Le Thi Hai Duong Tel.: +84 (28) Fax: +84 (28) duong.lehai@vietnam.ahk.de 104

105 SERVICES > VOCATIONAL TRAINING BASED ON GERMAN DIHK STANDARDS IN VIETNAM FREIGHT FORWARDING AND LOGISTICS AGENT INDUSTRIAL FASHION TAILOR MECHATRONICS According to the German and DIHK standards, dual vocational training programs in Vietnam are being promoted, coordinated and certified by the GIC/AHK Vietnam, which provides a high education level and ensures the supply of high-skilled workers. RESTAURANT SPECIALIST INDUSTRY MECHANICS CHEF Contact person: Ms. Bich Van Nguyen Tel.: +84 (28) Fax: +84 (28) van.nguyenbich@vietnam.ahk.de 105

106 SERVICES > PRORECOGNITION Consultation to recognition of professional qualifications acquired in Vietnam The GIC/AHK Vietnam provides information and advices on the approval process on-site and supports Vietnamese in the application process. The ProRecognition project is funded by the Federal Ministry of Education and Research (BMBF). Contact person: Ms Nguyen Hang Nga Tel.: +84 (28) Fax: +84 (28) nga.nguyen@vietnam.ahk.de 106