Guidebook for European investors in Vietnam

Directorate-General For Translation European Commission

Description

Asia Investment Facility
Relations with non-member countries
Economic policy - Economic and Monetary Union
Target audience: All

Informations

• Publié par: EUROPEAN-COMMISSION
• Nombre de lectures: 21
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

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www.europa.eu.int/comm/europeaid/projects/asia-investGuidebook
for European Investors
in Vietnam
Asia Investment Facility
ASIA INVEST
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EuropeAid
CO-OPERATIONCO-OPERATION OFFICEOFFICEA great deal of additional information on the European Union is available on the Internet.
It can be accessed through the Europa server (http://europa.eu.int).
Cataloguing data can be found at the end of this publication.
Luxembourg: OfficeOffice forfor OfficialOfficial PublicationsPublications ofof thethe EuropeanEuropean Communities,Communities, 20022002
ISBN 92-894-4140-2
© European Communities, 2002
Reproduction is authorised provided the source is acknowledged.
Printed in Spain
Printed onon whitewhite chlorine-freechlorine-free paperpaperPREFACEPREFACE
AsiaAsia Investment FacilityFacility
This Guidebook on Vietnam is part of a series of guides that are funded under the Asia Investment Facility, an instrument ofthe
Asia-Invest Programme - a European Union initiative. The Facility is used to highlight investment opportunities in selected
emerging and developing countries in Asia where there is relatively little information on the market.
The Facility covers studies to identify, evaluate and promote focused market opportunities. The studies cover a variety of issues
likelike thethe countries' businessbusiness andand investmentinvestment environments,environments, thethe legallegal andand institutional framework includingincluding analysisanalysis ofof sectorssectors thatthat
offeroffer thethe greatestgreatest potentialpotential forfor EuropeanEuropean companies. Detailed sourcessources ofinformation andand contactcontact pointspoints areare partpart ofof thethe finalfinal re¬re¬
ports.
Any organisation in Europe, especially intermediary bodies like chambers of commerce or sector associations, interested in
hosting a workshop to promote the reports' findings should contact Asia-Invest.
We would like to ensure that all relevant organisations that may have an interest in Vietnam are informed about this guide. We
encourageencourage youyou toto provideprovide anyany suchsuch recommendations. ToTo orderorder aa copycopy ofof otherother GuidebooksGuidebooks (on(on Bangladesh,Bangladesh, India,India, NepalNepal andand
SriSri Lanka)Lanka) oror additionaladditional copiescopies ofof thisthis Guidebook pleaseplease contactcontact Asia-Invest.Asia-Invest.
Asia-Invest, building partnerships between European and Asian companies
Asia-Invest is a European Union initiative to promote and support Euro-Asian business co-operation. The Programme assists
companiescompanies fromfrom EuropeEurope andand AsiaAsia toto identifyidentify andand developdevelop mutuallymutually beneficial partnershipspartnerships andand toto encourage investmentinvestment andand
tradetrade flowsflows betweenbetween thethe regions.regions.
Asia-Invest
EuropeAid Co-operation Office
European Commission
B-1 049 Brussels
Tel: [phone]
Fax: [phone]
Email:Email: [e-mail]
Web site: www.europa.eu.int/comm/europeaid/projects/asia-invest
ASIAASIA INVEST
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EuropeAidEuropeAid
CO-OPERATION OFFICECONTENTS
IntroductionIntroduction 1111
Executive summary 13
Vietnam at a glance: World Bank's Main Indicators 15 at a glance: map of the country 17
1. General information about the country 19
1.1.1.1. HistoryHistory 1919
1 .2. Geography and climate 22
1.3. Demography 22
1.4. Politics and government 23
1.5. Education, human resources and training 24
1.6. Health and welfare 24
1.7. Foreign policy 25
1.8.1.8. Nationalities, language,language, religions andand valuesvalues 2525
2. Economic and business information 27
2.1. Short and medium-term economic performances 27
2.2. Economic structure 29
2.3. reforms and policies 33
2.4. International trade 36
2.5. Country risk 39
2.6.2.6. MediumMedium termterm strategiesstrategies 4040
2.7.2.7. OverallOverall businessbusiness environmentenvironment 4141
3. Foreign investment review 45
3.1. Vietnam's performance and ability to attract foreign investment 45
3.2. Rationale for Vietnam's need to attract foreign investment and overall government's strategy ... 49
3.3. for a European company to invest in Vietnam 49
3.4.3.4. OverviewOverview ofof investment regulation andand recentrecent changeschanges 5151
3.5.3.5. InvestmentInvestment climate andand investors' perceptionperception 5252
3.6. Portfolio investment, privatisation and equity market 54
4. Setting up a business in Vietnam 55
4.1. Dealing with Vietnamese partners 55
4.2. Major criteria for initial choices 56
4.2.1. Overall administrative classification of projects 58
4.2.2.4.2.2. IncentivesIncentives availableavailable according toto exportexport content,content, technology andand locallocal inputinput 5858
4.2.3.4.2.3. FormsForms ofof investmentinvestment 5959
4.2.4. Location of 61
4.3. Application and licensing procedures 63
4.3.1. Licensing 63
4.3.2. Post licensing procedures 65
5. Operating a business in Vietnam 67
5.1.5.1. WorkforceWorkforce 6767
5.2.5.2. LabourLabour legislationlegislation andand industrial relationsrelations 6767
5.3. Human resources management 68
5.4. Importation and exportation 70
5.5. Domestic inputs, maintenance and repair 70
5.6. Accounting and auditing 72
5.7. Distribution and labelling 72
5.8.5.8. Advertising andand marketmarket research 7474
5.9.5.9. FinancingFinancing andand bankingbanking accounts 7474
Guidebook for European Investors in Vietnam
5.10. Insurance 77
5.11.5.11. ForeignForeign exchangeexchange 7878
5.12.5.12. GovernmentGovernment procurementprocurement 7878
5.13. Taxation 78
5.14. Industrial / intellectual Property Rights 80
5.15. Litigation and arbitration 81
6. Living and working in Vietnam 83
6.1.6.1. VisaVisa andand residenceresidence requirements 8383
6.2.6.2. HousingHousing 8383
6.3. Living costs 84
7. Sources ofinformation 85
7. 1 . Support from abroad 85
7.1.1. Useful Websites 85
7.1 .2. Business associations, trade and export credit agencies 89
7.1.3.7.1.3. EUEU supportingsupporting facilitiesfacilities andand contactcontact inin EuropeEurope 9191
7.2.7.2. SupportSupport inin VietnamVietnam 9292
7.2. 1 . Business groups and associations 92
7.2.2. EU Countries' trade counsellors 92
7.2.3. Vietnamese administrations and business groups 93
7.3. Useful publications and sources of statistical information 94
Index 95
Appendix: application formsforms forfor foreignforeign investment inin VietnamVietnam 9999
LISTLIST OFOF TABLES, CHARTSCHARTS ANDAND BOXES
(Charts)
DD (Tables)
O (Boxes)
Pages
Average rainfall by region (in mm, 1999) 22 temperature by region (in C°, 1999) 22
Population: urbanurban andand rural,rural, 1976-1999 2222
Distribution ofof population, urbanurban populationpopulation andand landland surfacesurface byby region,region, 19991999 2323
Population by age group, millions, 1999 23
Macroeconomic performances - Economic growth and inflation 27
Component of GDP Growth since 1996 (% change in volume) 28
Evolution of major sectors of the economy1995-2000 (real terms, index 100 in 1995) 28
Structure of GDP by ownership (1995, inner circle, and 2000, outer circle, %) 29 of GDP by sectors - 2000 (%) 30
Agriculture productionproduction byby regionsregions -- 20002000 (%(% ofof totaltotal production)production) 3030
Manufacturing activities: weightweight andand growthgrowth 3131
Average yearly income per household (thousands of VND) 32
G Equipment rate of selected consumer goods (% of households having these consumer goods) 33
Structure of household expenditures 33
Π Budget Structure (in % of GDP) 34
O Major features ofVietnam's banking system 35
TradeTrade andand currentcurrent accountaccount balancesbalances (1995-2000)(1995-2000) 3636
GrossGross breakdownbreakdown ofof exportsexports andand importsimports byby products (2000)(2000) 3737
Major export products 1995 and 1999 38 import 1995 and 1999 38
Ten largest trading partners (2000) 39
Major European (2000) 39
Number of newly registered companies since January 2000 41
Structure of industrial output (1999) 42
Infrastructure basedbased outputoutput 4242
OO Requirements forfor infrastructure: aa comparisoncomparison ofof presentpresent levellevel betweenbetween Vietnam andand low-income
developing countries 43
Breakdown of total approved FDI in Vietnam by countries or regions (3 1/12/2000) 45
Ten largest investing countries (total investment capital approved, 31/12/2000, USD mn) 46 of actual FDI in Vietnam by sectors (31/12/2000) (cumulative realised investment) 46
Breakdown of total approved FDI in Vietnam by location (3 1/12/2000) 46 ofof totaltotal FDIFDI inin byby formform ofof investment (31/1(31/12/2000)2/2000) 4747
Foreign directdirect investment inin Vietnam 1991-20001991-2000 4848
O Cumulat