MARKETING PLACES INVESTMENT IN HO CHI MINH CITY. 16.10.2004Investment in Ho Chi Minh City2 FINAL...

MARKETING PLACESMARKETING PLACES

INVESTMENT IN HO CHI MINH CITY


16.10.2004 Investment in Ho Chi Minh City 2

FINAL PROJECTFINAL PROJECT

• Members of Group 2:– Ho Hoang Hai– Le Thanh Liem– Vo Thi Thanh Nga– Le Thanh Nhan– Dau Khanh Thien

• Presentation:– Date: October 16th, 2004– Location: 1A Hoang Dieu, Phu Nhuan

Dist.

• Members of Group 2:– Ho Hoang Hai– Le Thanh Liem– Vo Thi Thanh Nga– Le Thanh Nhan– Dau Khanh Thien

• Presentation:– Date: October 16th, 2004– Location: 1A Hoang Dieu, Phu Nhuan

Dist.


OUTLINEOUTLINE

1. Introduction2. Current situation3. Objectives4. Strategies5. Action plans6. Financial project7. Conclusion

1. Introduction2. Current situation3. Objectives4. Strategies5. Action plans6. Financial project7. Conclusion

INTRODUCTIONINTRODUCTION

INVESTMENT IN HO CHI INVESTMENT IN HO CHI MINH CITYMINH CITY

Presenter: Ho Hoang HaiPresenter: Ho Hoang Hai

CURRENT SITUATIONCURRENT SITUATIONINVESTMENT IN HO CHI MINH CITY

Presenter: Le Thanh Liem


CURRENT SITUATION• Strengths:Strengths:

– Stable political and macroeconomic environment.– Cheap labors with high proportion of high-skill labors. – The leaders pay attentions to the investment – Big market.– HCMC is the key centre for economy, finance and trade in the

South of Vietnam.• HCMC’s increasing prosperity can be attributed to its exceptional

economic growth and development.

• HCMC has enormous market potential to make your investment a lucrative one.

• HCMC boasts the gate of the South to other countries


CURRENT SITUATION• Weakness:

– Urban infrastructure is weak. – The local Government pays great attention to the quantity of

FDI while other countries are switching their attention to the quality of FDI capital.

– Service quality is not high, survice fees remain irrational and in general higher than of other regions.

– Not effective in administration management. bureaucracy, corruption.


CURRENT SITUATION• Weakness:

– The policy is not transparent, often change without prior notification.

– Polluted invironment.– Lackness of consistent policies and plans in orientation of

development– Shortness of labor force suitable to the needed-development

industries.


CURRENT SITUATION• Opportunities:

– A member of AFTA in which members follow the CEPT.– Vietnam joins the WTO, it is likely to be a significant

destination for export oriented FDI.

• Threats:– Face the stiff global competition.– The crude oil price is increasing rapidly.

OBJECTIVESOBJECTIVESINVESTMENT IN HO CHI MINH CITYPresenter: Dau Khanh Thien


OBJECTIVESOBJECTIVES• 2001 – 2005:2001 – 2005:

– GDP average growth rate: 11% per year.• State-owned sector: 9.5% per year• Non State-owned sector: 11.2% per year• Foreign-invested sector: 14% per year.

• 2006 – 2010:2006 – 2010:– GDP average growth rate: 13% per year.

• State-owned sector: 11.5% per year• Non State-owned sector: 13.2% per year• Foreign-invested sector: 15.5% per year.


OBJECTIVESOBJECTIVES• 2001 – 2005:2001 – 2005:

• State-owned sector: 19,075 billion per year (44.3%)• Non State-owned sector: 11,497 billion per year

(26.7%)• Foreign-invested sector: 12.488 billion per year

(29.0%)

• 2006 – 2010:2006 – 2010:• State-owned sector: 34.323 billion per year (43.0%)• Non State-owned sector: 21.511 billion per year

(27.0%)• Foreign-invested sector: 23.946 billion per year

(30.0%)

STRATEGIESTRATEGIESSINVESTMENT IN HO CHI MINH CITYINVESTMENT IN HO CHI MINH CITY

Presenter: Vo Thi Thanh NgaPresenter: Vo Thi Thanh Nga


STRATEGIES

A.A. STP:STP:1. Segmentation:

– FDI in three areas:• Industry

• Agriculture

• Service

– In Industry:• FDI in hi-tech industries (mechanism, electronics,

telecommunications, IT, etc.)

• FDI in labor intensive industries (garment and textiles, footwear, processing industries, etc.)


STRATEGIES2. Targeting:



– FDI in Industry accounts for 66% => Marketing FDI into HCMC in industry, focusing on hi-tech industries such as IT, mechanism, electronics, telecommunications equipment, etc. To increase the FDI in these sectors by 10% every year, accounting for over 60% of total FDI by year 2007. Incentives for large projects in these fields.



– Strongly encourage FDI in capital-intensive industries from developed countries such as the US, EU, Japan, Australia, etc. to become leading investors in HCMC instead of Asian countries with labor-intensive industries like now.



– Minimize FDI in industries which easily causes environment pollution such as poisonous chemicals, labor-intensive industries.


STRATEGIES3. Positioning:• Compared to its competitors in neighboring

countries, HCMC is remarkably stronger at political and economic stability.

– Your stable success in doing business in SEA.– Investment in Hochiminh hi-tech parks – Brilliant

and high marks.


STRATEGIES

B.B. MARKETING MIX – 4Ps:MARKETING MIX – 4Ps:1. Product strategy:

– Double the land area of EPZs (severely shortage now), establish more HTZs and IPs.

– Good intrastructure and environment protection in HTZs, EPZs and IPs and the whole city.

– Labor training, esp. high skill workers.– Foreign language training -> 50% skilled labor can

use at lease one foreign language as their tool of communication.

– Better security service.


STRATEGIES2. Price strategy:

– Reduce telecommunication and post office charges to the average level of ASEAN countries by end of 2005. Encourage more telecommunications companies to participate to enhance competition lower price.

– Price incentives for FDI enterprises in hi-tech zones (HTZs), EPZs and IPs (land rentals, taxes, etc.). E.g. Large projects over 10 USD mil. in hi-tech industries can be exempted from all kinds of taxes and half of land rental.


STRATEGIES3. Place strategy:

– Better admin services, esp. granting license procedure, adjustment of investment licences (one-stop-shop), credit access, etc.

– Promote investment licensing on the Internet (applied from April 01, 2004 for projects of less than 5 USD mil.)

– Anti-corruption fighting Transparency in all kinds of fee.

– Establish forums for FDI investors and government officials as well as other local enterprises.


STRATEGIES4. Promotion strategy:

– Launch a website to disseminate information on FDI in English, Japanese, French and other languages

– Publish information handbooks, CD ROMs giving updated and detailed information on investment incentives, land rentals and potential local market. Also distribute them to Trade Offices, Embassies in foreign countries, esp. developed countries.

– Every HCMC citizen takes part in propagandizing HCMC image.

STRATEGIESSTRATEGIES

INVESTMENT IN HO CHI MINH CITYINVESTMENT IN HO CHI MINH CITY

Presenter: Dau Khanh ThienPresenter: Dau Khanh Thien

Investment in Ho Chi Minh City 2516.10.2004


1.1. Determine the attractive industries.Determine the attractive industries. Grow rate and scale of local market. Level of competition of local market. Advantage of labour force, geographical location

and resources Advantage of input’s cost. Chance to approach the export market. Industry’s policies. Competitors.


STRATEGIESSTRATEGIESNo. Name of Industies No. Name of Industies

1 Mechanics 10 Transportation

2 Electronics 11 Telecommunication

3 Information technology 12 Bank and finance

4 Chemical 13 Tourism and Hotel

5 Seafood process 14 Culture – Health care – Education

6 Agricultural product process 15 Urban development

7 Forest product process 16 Apartment building & Office for rent

8 Pottery and Glass 17 Industies park and

9 Power and water suply 18



2.2. Design the impressive picturesDesign the impressive pictures Highlight the opportunities Reflection the HCMC’s determination Highlight the positive differences

3.3. Propaganda the impressive picturePropaganda the impressive picture Medias Investment exhibitions Seminars about investment opportunities



4.4. Re-decorate the urban, apply civilized styleRe-decorate the urban, apply civilized style Recheck the our City’s development plans Train professional planning managers Create the civilized behaviour rules

5.5. Improve infrastructure and quality of pricesImprove infrastructure and quality of prices Reduce the price of land rent Water and power supply Communication system



6.6. Administrative AffairsAdministrative Affairs Reform ISO 9001-2000 “one door” policy

ACTION PLANSACTION PLANS


Presenter: Le Thanh NhanPresenter: Le Thanh Nhan

Investment in Ho Chi Minh City 31

SHORT TERMSHORT TERM

1.1. Confidence of foreign investors:Confidence of foreign investors:– Increase the contacts with the investors

• Annual meetings or conferences• Suggestions from the investors• Answer the questions and untie their problems

– Improve the “one door, on seal” mechanism• Improve the administration reform• Enhance the management ability

Save the time, money and annoyance



– Improve the infrastructure• Traffic and transportation system• Electricity system• Water system• Waste water treatment system• Post and telecomunication system



– Pay attention to the ground-clearing• Exhange the ground for the house foundation• Their children can work at the companies located

in the industrial zones• Land fund ready for investors

– Create the good relationship among the managers of industrial zones• Meetings• Entertainment activities• Exchange the experience



– Stabilize the workers’ life at industrial zones• Low price blocks of departments• Clinic and other services• Traffic line• Protect wokers’ right• Labor law



2.2. Favors, encouragements:Favors, encouragements:– Helps in administrative affairs

• Administrative procedures• Administrative fee

– Support services for foreign investors• Investment consultant• Professional organization

– Cost & Tax• Advertising cost in the first period• Tax in the expanding period



3.3. Center for Investment Promotion:Center for Investment Promotion:– Specific program for investment promotion

• Depend on period of development• Favours for investors

– Direct promotion:• Telephone or mail• Conference about investment, specific attraction• Direct contact with multinational companies



– Information supply:• Embassy, oversea Vietnamese companies…• Meetings betwwen current investors & potential

ones.• International organization: JETRO, UNCTAD• Media, interviews …

– Create attraction:• Training & Recruitment Aid

– Financial support for investment promotion


LONG TERMLONG TERM

1.1. Basic requirements about infrastructureBasic requirements about infrastructure– Evaluate the need

• Factors of development, production expansion, need of electricity, water, education…

• Trend of labor movement

– Monitor and manage the infrastructure– Interdisciplinary planning– Environment preservation


LONG TERMLONG TERM

2. Reduce the price of rent for land – Infrastructure service companies

• Quality and ability• Experience

– Location


LONG TERMLONG TERM

3. Complement industries: – Foreign experts’ consultancy

• Quality and ability• Experience

– Special treatment and award


LONG TERMLONG TERM

4. Complement services: – Education & training– Health care– Cultural and entertainment activities

FINANCIAL FINANCIAL PROJECTPROJECT


CONCLUSIONSCONCLUSIONS


PRESENTER: HO HOANG HAIPRESENTER: HO HOANG HAI

MARKETING PLACES INVESTMENT IN HO CHI MINH CITY. 16.10.2004Investment in Ho Chi Minh City2 FINAL...

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Transcript of MARKETING PLACES INVESTMENT IN HO CHI MINH CITY. 16.10.2004Investment in Ho Chi Minh City2 FINAL...