TPP ADVANTAGES INDUSTRIAL ESTATE SOLUTION By Nguyen Chi TOAN Marketing Manager of VSIP JV 27 November 2015
VIETNAM ECONOMY VIETNAM ECONOMIC STRUCTURE MOVEMENT 1995 2015 Service 44% Agriculture, Fisheries, forestry 27% Service 42% Agriculture, Fisheries, forestry 17% Industrial, construction 29% Industrial, construction 41% Source: GSO
VIETNAM ECONOMY VIETNAM INTEGRATION - LOOKING TO FUTURE APEC( Asia-Pacific Economic Cooperation); TPP (Trans-Pacific Partnership); RCEP (Regional Comprehensive Economic Partnership); ASEAN (Association of Southeast Asian Nations).
VIETNAM ECONOMY FDI FLOW INTO VN (1995-2015F) FDI ($US Billion) 20.23 17.00 6.50 1995 2014 First 2015F 9 months 2015
VIETNAM ECONOMY INCENTIVES IN SEZ CATEGORIES 1995 2015 Inside SEZ Outside SEZ Tax rates 25% 10% for first 15 years 22% (*) CIT Holidays 1 year from profit 04 years 2 years CIT reduction 50% for subsequent 02 years 50% for subsequent 09 years 50% for subsequent 4 years Personal Income Tax (PIT) Full payment 50% reduction Full Payment Others Import duties are calculated based on low import price FDI enterprise must meet export proportion as declared in investment license. Import duty: exempted for 5 years from 1 st production day for materials, raw materials, semi-finished products which not produced locally Nill (*): will be reduced to 20% effected on 1 st January 2016
VIETNAM ECONOMY CIT TAX IN COMPARISON BY COUNTRIES [2015] 40% 30% 25% 25% 25% 22% Malaysia Indonesia China India Philippin Vietnam Source : KPMG
VIETNAM ECONOMY VIETNAM FDI TREND IN EARLY STAGE YEAR OF ESTABLISHMENT INDUSTRY LOCATION COCA-COLA VIETNAM 1995 Beverage Ho Chi Minh PEPSICO 1994 Beverage Ho Chi Minh UNILEVER 1995 Consumer goods Ho Chi Minh P&G 1995 Consumer goods Binh Duong CAPITAL LAND 1995 Real estate Ho Chi Minh PANASONIC VIETNAM 2005 E&E Ha Noi HONDA VIETNAM 1996 Automotive Vinh Phuc TOYOTA VIETNAM 1995 Automotive Vinh Phuc
VIETNAM ECONOMY INDUSTRIAL PARKS IN VIETNAM - in 1990s No. IP Year of Est Location Area Developer 1 Nội Bài 1995 Gia Lâm - Hà Nội 197 Ha Vietnam Malaysia 2 Thăng Long 1996 Đông Anh - Hà Nội 121 Ha Japan Vietnam 3 Dewoo - Hanel 1997 Gia Lâm - Hà Nội 407 Ha Korea Vietnam 4 Amata 1994 Đồng Nai 494 Ha Thailand 5 Nhơn Trạch 1997 Đồng Nai 800 Ha Vietnam 6 Loteco 1996 Đồng Nai 100 Ha Vietnam 7 KCX Tân Thuận 1991 Tp.Hồ Chí Minh 300 Ha Taiwan Vietnam 8 Linh Trung 1 1995 Tp.Hồ Chí Minh 326 Ha Vietnam China 9 Vĩnh Lộc 1997 Tp.Hồ Chí Minh 207 Ha Vietnam 10 Tân Tạo 1996 Tp.Hồ Chí Minh 772 Ha Vietnam 11 Nomura 1994 Hải Phòng 153 Ha Vietnam Japan 12 Sóng Thần 1 1995 Bình Dương 178 Ha Vietnam 13 Sóng Thần 2 1996 Bình Dương 279 Ha Vietnam 14 VSIP 1 1996 Bình Dương 500 Ha Vietnam Singapore 15 Đồng An 1997 Bình Dương 140 Ha Vietnam 16 Việt Hương 1996 Bình Dương 45 Ha Vietnam
VIETNAM ECONOMY INDUSTRIAL PARKS IN VIETNAM in 2000s LAND PRICE (US/m2) 40 30 25 35 20 28 35 35 27 30 30 28 28 35 30 25
VIETNAM ECONOMY INDUSTRIAL REAL ESTATE IN VIETNAM 2015
VIETNAM ECONOMY INDUSTRIAL PARKS IN VIETNAM - AVERAGE LAND PRICE 2015
TPP OPPORTUNITIES POTENTIAL KEY ECONOMIC REGIONS IN VIETNAM
TPP OPPORTUNITIES VIETNAM OPPOTUNITES TPP+ FTA with Korea, Europe O% TAX 60% economy of the World open for Vietnam compared to 25% now More markets available (US; CANADA; MEXICO; PERU) Vietnam products become more competitive than China Vietnam export expectedly increases by 28.4% by 2025 GDP Viet Nam expectedly increases 10.5%
TPP OPPORTUNITIES VSIP s ADVANTAGES - Nationwide Locations - Flexible solutions to meet the investor's requirements - Special projects for TPP with strategic location in Central Vietnam - Lower cost and special tax incentives from SEZ - Labour solution - Dedicated customer service
VSIP PROJECTS IN CENTRAL OF THE EMERGING MANUFACTURING HUB
VSIP NATIONWIDE DEVELOPMENT VSIP Bac Ninh :700ha IP: 500ha C&R: 200ha VSIP Bac Ninh VSIP Nghe An :750ha VSIP Hai Duong: 150ha VSIP Hai Duong VSIP Nghệ An VSIP Hai Phong Hoàng sa VSIP Quang Ngai:1,746 ha IP: 1,226ha C&R: 520ha VSIP Quang Ngai VSIP Hai Phong: 1,600ha IP: 1,100ha C&R: 500ha VSIP Binh Duong Trường sa VSIP Binh Duong: 2,545ha IP: 1,845ha C&R: 700ha
VSIP NATIONWIDE DEVELOPMENT VSIP QUANG NGAI VSIP Quang Ngai:1,746ha Year: 2013 Total Area: 1,746ha 1,226ha: Industrial Park; 520 ha: Township Land use period: 70 years Available land for immediate handover Open for warehouse & build to suit investors demands
VSIP NATIONWIDE DEVELOPMENT VSIP NGHE AN VSIP NGHE AN : 750HA Hoàng sa -IC granted: Q2-2015 -Ground breaking: Q3-2015 -Total 750ha (350ha industrial park & 350ha township) -Offer flexible IP land from 5,000m2. Service land from 1,000 m2 -Handing over land to investor: 2016 -Open for build to suit demands Trường sa
VSIP NATIONWIDE DEVELOPMENT VSIP OFFER Prepared Land Ready-built Factory Built-to-suit Factory Land price VSIP II-A: US$ 55/ m 2 VSIP BAC NINH: US$ 100/ m 2 VSIP NGHE AN: US$ 38/ m 2 VSIP HAI PHONG: US$ 90/ m 2 VSIP QUANG NGAI:US$ 38/ m 2 VSIP HAI DUONG: US$ 75/ m 2
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