ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK
Transcript of ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK
1Creating Sustainable Portfolio Footprint in “VIETNAM”
ADVANTAGES of FDI to INVEST in INDUSTRIAL PARK
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AMATA in CLMVT
MYANMAR VIETNAM
THAILAND
LAOS
CAMBODIA
YANGON AMATASMART ECO CITY50 k㎡
MAJOR INVESTORS in AMATA VIETNAMAMATA CITY CHONBURI55.21 k㎡
AMATA CITY RAYONG31.7 k㎡
AMATA SMARTECO CITY LAO PDR
200 k㎡AMATA CITY HA LONG
Quang Ninh province714 ha ‒ established in 2018
AMATA CITY BIEN HOADong Nai province
700 ha ‒ 172 factoriesestablished in 1994
AMATA CITY LONG THANHDong Nai province
410 ha ‒ established in 2015
NORTHVIETNAM
SOUTHVIETNAM
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FDI OUTLOOK Jan to Aug 2021
23.36 24.35 22.6319.54 19.12
35.60 35.47 38.02
28.53
0
10
20
30
40
50
2017 2018 2019 2020 2021
FDI by YEAR
Jan -Aug Full Year
Singapore 32.4%
Japan 16.7%
Korea 12.6%
China 9.4%
Hong Kong 7.3%
Twaiwan5.8% 15.8%
TOP 6NATIONALITY
FDI VALUE
$bn-2.1% YoY
No. of projects
-36.8% YoY
2.02
3.44
4.61
2.181.74
1.28 1.45
2.40
Jan Feb Mar Apr May Jun Jul Aug
FDI flow by month ($bn)
Chinese group share
+ + = 49%
4th waveCOVID19
Source: Ministry of Planning and Investment, Vietnam
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VN’s ADVANTAGES LABOUR FORCE
-
50
100
150
200
250
300
350
400
0 25 50 75 100 125 150Avg. minimum wage / month (2020) @USD
Labor force in total (2020) @mil. People
LABOUR MARKET ANALYSIS
INDONESIA
VIETNAM
THAILAND
MYANMAR
CAMBODIA
LAO PDR
PHILIPPINES
MALAYSIA
Avg minimum wage
Literacy rate ages 15 and above
Source: Populationpyramid.net Source: World Bank
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VN’s ADVANTAGES COST & POLITICAL STABILITY
-1.4
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
POLITICAL STABILITY INDEX
Source: theglobaleconomy.com
COST COMPARISION
VS
4th/8LABOUR COST(Blue-Collar)$266/month
3rd/8MIN. WAGE (average)$191/month
2nd/8ELECTRICITY COST
$0.07/kWh
3rd/8WATER COST
$0.41/m3
1st/8CIT RATE20%
4th/8VAT RATE10% Source: JETRO
Survey of investment related costs in 2020
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VN’s ADVANTAGES ECONOMIC STABILITY
7.1%
5.0% 5.5%4.3%
6.8%6.1%
1.3%2.4%
7.0%
-3.1%-2.1%
0.4%
-5.6%
1.7%
-9.6%
-5.4%-6.1%
2.9%4.0% 4.4% 4.0%
6.0%
-10.0%
4.7%5.8%
2.2%
6.6%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
CAMBODIA INDONESIA LAO PDR MALAYSIA MYANMAR PHILLIPINES SINGAPORE THAILAND VIETNAM
ASEAN GDP GROWTH OVERVIEW
2019 2020 Forecast 2021
VIETNAM
as of June 2021
Source: World Bank
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VN’s ADVANTAGES SOCIAL INFRASTRUCTURE
(2.0)
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
20002001200220032004200520062007200820092010201120122013201420152016201720182019
$bnNET OFFICAL DEVELOPMENT ASSISTANCE AND OFFICIAL AID RECEIVED (2000 to 2019)
CAMBODIA LAO PDR MYANMAR THAILAND VIETNAM
CAMBODIA15%LAO PDR9%
MYANMAR19%
VIETNAM56%
Source: World Bank
Inject ODA
Develop Infrastructure
Success of FDI
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VIETNAM’s ADVANTAGES
<Abundant labor
forceReasonable
costs
Stable politics & economy
Solid infrastructure development
Tax incentives
Trade value & domestic market
MR. OSAMU SUDO / 須藤 治Head of Marketing and Sales in VietnamAMATA CITY BIENHOA JSC.MOBILE: +84 (0)93 769 4007 (Vietnam) / EMAIL: [email protected]
Frequent law
revisions
Anti-corruption
Domestic supply chain