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OLIVER MASSMANN - Partner, General Director
DUANE MORRIS VIETNAM LLC
VIETNAM’S BUSINESS ENVIRONMENT
Investment opportunities and challenges for
foreign investors
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AGENDA:
• WHY INVESTING IN VIETNAM?
• VIETNAM’S RECENT INTEGRATION TO REGIONAL
AND INTERNATIONAL ECONOMY
• CONCLUSION
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Vietnam 2015 Economy at a glance • GDP: US$204 billion
• GDP per capita: US$2,109
• GDP Growth: 6.68 % (compared to 5.98%
in 2014, highest in the past 5 years)
• Inflation: 0.63% (lowest in the past 10
years)
• Population: About 91.70 million
• Labor force aged 15 and above: 54.61 million
• Total export and import turnover: : US$
$327.76 billion (10% increase)
• Minimum wage: VND 3.5 million (US$ 156)
per month (Jan 2016)
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Vietnam – From 1980s till now
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1980s – Rice Importer Now – 2nd Rice Exporter
Worldwide
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Vietnam to be Asia’s second fastest growing country
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2016: 6% according to World Bank
Asia’s second fastest growing
country, only after India
Vietnam tops 6 European countries
in the Global Competitiveness
Index
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Vietnam has the fastest-growing middle and
affluent class in the region
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Vietnam’s Free Trade Agreements
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AEC Market Snapshot – Asia’s main
investment hub
• GDP: US$2311.3 billion (2012)
• GDP per capita: US$3748.4 (2012)
• Population: 620 million, 60% under the age of 35
• AEC % of world GDP: ~3.3%
• AEC % of world population: 9%
• AEC’s merchandise exports: US$1.2 trillion - ~54% of total
ASEAN GDP and 7% of global exports
• If ASEAN were one economy, it would be the 7th largest in
the world – 4th largest by 2050 if growth trends continue
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Key characteristics of AEC
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EU – Vietnam Free Trade Agreement
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EVFTA – Benefits for Vietnam
• Vietnam’s annual economic expansions rate may grow an additional 15%
every year
• Tariffs for most of Vietnamese export product to the EU will gradually
reduce to 0% and Vietnam’s export to EU is expected to grow about 35%
for next few years
• The real wages of skilled laborers may increase by up to 12% while real
salary of common workers may rise by 13%
• The EVFTA is the legal framework for a more stable relationship in bilateral
trade for Vietnam when competing in the international market
• The EVFTA will generate greater effects, e.g. increased quality of
investment flows from EU, acceleration of the process of sharing expertise
and transfer of green technology and the creation of more employment
activities
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EVFTA – Benefits for European businesses
• Vietnam as part of ASEAN gives investors from the EU better access
to this dynamic region.
• EU investors will benefit from improved investment environment,
open and internationalist regulatory policies, etc. as combined effects
of Vietnam’s deep integration to the region and the world (TPP)
• Young and educated growing middle class is valuable human resource,
considering the current aging situation in Europe.
• Growing opportunities in food & beverage sector (due to high
demand in Vietnam), machinery and chemical products (due to drastic
tariff elimination), electronic products (transportation cost will be
compensated and EU investors could compete against other Asian
investors).
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790 million people
40% global GDP
1/3 global trade
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How is the TPP Different?
• GDP of 12 TPP Members is nearly $28 trillion, 40% of global
GDP and one-third of world trade
• TPP is broader: it covers markets for all goods, services,
investment, government procurement, e-commerce with 30
Chapters included.
• TPP is deeper: it addresses new trade challenges (environment,
