OPPORTUNITIES &

OUTLOOK IN BRVT

September 2020
ASEAN COMPARISON
327 595 78 77 47 105
$161 $262 $296 $218 $182 $218

Area
(km) 331,690 330,290 513,000 1,910,931 181,035 300,000

Population
96 32 69 269 16 107
(million)

Average Age 30 28 38 28 24 24

GDP Per Capita

(US$/year)
2,353 10,942 7,605 3,932 1,390 2,989

Statutory Minimum Wage

Source: Invest Asia: Industrial Park Guide, 2019 Industrial Parks (Average/US$/month)
 REGIONAL OVERVIEW
Manufacturing workers’ salary, 2018 Factory construction costs, 2018
US$/mth
$1,400.00
1,000
924
866 $1,200.00

800
$1,000.00

$800.00
600

$600.00
412
400
$400.00

237
190 $200.00
200

$-
Vietnam (HCMC) China (Beijing & India (Bangalore) Indonesia Ma laysia (Kuala
Shanghai) (Ja karta) Lumpur)
0
Ma laysia China Thailand Vietnam Indonesia
Basic Warehouse & Factory ($/m2) Large WH/Distribution Hi-Tech Factory
Source: Trading Economics Center ($/m2) ($ /m2 )

Source: Turner & Townsend, 2018

INDUSTRIAL DRIVERS

Main Drivers:

• Multiple free-trade agreements

• Labor costs: less than half of China

• Affordable land price and sea freight

• Favorable corporate income tax rates

• >96 million people

• Near source and destination markets

• Stable government, fast growth rate and improving

business climate
H1/2020 – INDUSTRIAL LAND SUPPLY

North Economic
Zone
Industrial Parks (IPs) and Economic Zones (EZs) Bac Ninh
Hai Duong
>397 FDI projects; with
Ha Noi
Hung Yen
Hai Phong

2019: estimated newly registered capital totaling >US$10.1 billion

IP & EZ Supply Central Economic

Zone Thua Thien Hue

327 IPS - 96,100 ha total area

Quang Nam
Da Nang

Quang Ngai
Industrial area of 65,700 ha
Binh Dinh

256 operational IPs: 75% occupancy South Economic

Zone
71 IPs under construction, site clearance and
compensation Binh Duong
Dong Nai
Long An
Ba Ria Vung Tau
HCMC
Source: Ministry of Planning and Investment (MOPI), 2019
 Developed transportation Economic and industrial
network links center of VN
North
Prime industrial land between Near the biggest
new infrastructure developments commercial port in VN

Investment from China Educational institutions

South driving skilled labor
Heavy industry focus
Diversified sector
investment
H1/2020 – FDI
Total FDI
Manufacturing & Processing FDI

US$15.6 billion - 15.1% YoY 51% of total FDI

1,418 new projects registered >US$8.44 billion
526 existing projects registered to adjust >US$3.7 billion US$8 billion
By industry By investor

16.9%
6.8%
45% 34.7% 51%

25%

10% 10%

Manufacturing and processing Energy distribution

Singapore Thailand China Other Wholesale and retails Other
Source: Ministry of Planning and Investment (MOPI), 2020
H1/2020 – Manufacturing PMI & Industrial Production
Manufacturing PMI Index of Industrial Production (IIP)
60 30

50 25

40 20

30 15

20 10

5
10
0
0

19

0
-1

-1

-1

-1

-1

-2

-2

-2

-2

-2
9

19

L-
-5

Y
P

N
T

R
B

R
-1

-1

-1

-1

-1

-1

-2

-2

-2

-2

-2

C
L-

A
E

E
A
E

P
U
P

N
T

R
N

R
G

-J

-M
-S

-O

-F
-J
-D

-M

-A
-N
-A
U

C
E

E
O

A
A
E

A
U

P
U

20
-J

20

20
-S

-O

-F

-M
-J
-D

-M

20
-A

20
-J

-N

20

20
-A

20

20

20
20
20

20

-10
20

20
20

20
20

20
20

20

20
20

-15
• Soared to 51.1 in June 2020 from 42.7 in May
• Up 7% YoY in June 2020 from -3.1% in May)
• First growth since Jan, attributed to successful Covid-
19 response • Upturn in manufacturing production (10.3% vs -2.4% in May)

• Output rebound with increased new orders • Industrial output up 2.71% YoY
• Purchasing activity up; pre-production inventories rising

Source: Trading Economics, July 2020

H1/2020 – COVID-19 IMPLICATIONS
Effects to date Directly impacted FDI companies in Q1
• One of the fastest growing economies in Asia despite nCoV

• Economic growth expected to slow sharply in 2020 to 4.8%

• Due to initial supply shock and drop in demand from

Vietnam's trade partners

• Manufacturing suffering from depletion in inventory of inputs,

including parts global value chains

• Garment production most affected, with exports down 15%

YoY. 20% of garment makers orders cancelled in Q1

• In contract, mobile phone production and exports still up

marginally, despite Samsung expecting Vietnam exports to
drop 11% in 2020

• Availability of factory workers a non-issue – VN lockdown

fashioned to avoid impeding activities of FDI companies
H1/2020 – COVID-19 IMPLICATIONS
Combating COVID-19 and Market Recovery

• Robust and growing middle class and dynamic

private sector

• Stable business environment

• Continued public spending to contain pandemic

• Ramp us infrastructure spending and unfreeze real

estate market

• Bilateral and multilateral trade agreements e.g.

EVFTA promises improved market access upon the
country’s rebound

• Vietnam well positioned to bounce back and prosper

post COVID-19 e.g.

• COVID-19 to accelerate relocation wave from China

COVID-19 to Accelerate Relocation Wave from CN to VN
Key export categories – As % of Total Exports (2019)
Resilient export model
Upcoming relocations due to COVID-19?
Crude oil
Palstics products • Multinationals that produce these will be under
Cameras & spare parts pressure to cut costs – prompting a shift in production
Iron & steel to VN
Trasnportation vehicles
• Previously companies reluctant to set up operation
Wood & wooden products
in VN due to supply chains lacking depth
Machinery & equipment
Soft commodities • FDI companies to not only establish new factories
Garment & footwear in VN, but have greater incentive to foster
High-tech development of local supply chains
0% 5% 10% 15% 20% 25% 30% 35%
• Finally, wage inflation tends to increase after a
pandemic subsides, prompting manufacturer to
• Export structure has resilient ‘barbell’ structure – 60% products leave Chine for SEA
low-value added (e.g. garments), 40% high-value (e.g.
electronics)

• Low-end products expected to hold up well over next 02 year,

with increased demand from cost-conscious shoppers

• High-value added products expected to surge from 2021

Source: VinaCapital, 2020
 SEZ Supply & Performance
Occupied (ha) Vacant area (ha) Rent
8,000 160

US$/m2/term
6,000 120

4,000 80

ha
South
Economic
2,000 40
Zone

- -
Dong Nai Binh BRVT Long An HCMC Tay Ninh
Duong

Source: Savills industrial services, 2020

Ba Ria-Vung Tau
Provincial Overview Key Factors
BRVT • Key import-export hub: Major gateway for international
Region Area (km2) Capital City shipments, due to the CMTVPC – EU & US

Southeast 1,981.0 Ba Ria

• Govn. planning to increase terminal and road investments
Population
Total (Thous.per) Density % of Employed • Access to future Long Thanh Airport – 30 mins from port
(Person/km2) Workforce
1,112.90 582.0 53.1% • Access to major national highways e.g. National Highway
51 and National Highway 1A
Male Female Urban/Rural

578.20 574.00 675.60/476.60 • Good land supply and competitive lease prices ($64/m2)
Net Migration Rate Unemployment Rate Min. Wage
(USD/month) • A pro-active local Govn. keen on industry promotion and
1.8 N/A $180
trade policies to attract high-value industries
BA RIA-VUNG TAU
Provincial Overview

H1/2020 FDI: 2019 PCI:

US$1.94 billion 66.96 points
03rd Highest Receiver (12.4%) Rank: 16th

Total Area (ha): Leasable Area (ha):

9,427 5,742

No. of Projects: Occupancy:

13 74%
Land Lease: Factory Lease:

US$64/m2 US$3.5/m2
For entire long-term land lease Per month
BA RIA-VUNG TAU
Provincial Competitiveness Index (PCI)
68 30
Improving Indices in 2019
66 25 • Increased to 66.96 points, up from 64.02 in
2018
64 • Access to land: Up to 6.95 from 6.41
20
• Transparency: Up to 6.87 from 6.18
62 • Time costs: Up to 7.30 from 7.03
15 • Informal charges: Up to 6.46 from 6.37
60 • Policy bias: Up to 6.31 from 5.42
10
58 Areas Requiring Improvement:

56 5 • Proactivity, Business Support Services, Labor

Policy, and Law & Order.
54 0
2014 2015 2016 2017 2018 2019
Points Ranking

Source: USAID, 2019

BA RIA-VUNG TAU
Industrial Production
Points
105
104
103
102
101
100
99
98
97
96
95
2013 2014 2015 2016 2017 2018 2019 2020

Source: GSO, 2019

BRVT INDUSTRIAL PARK TENANT MIX
Industry Key Tenants

Food and beverage Logistics, transport,

(10%) and storage (10%)

Fabricated metal products

(21%)
Chemicals and chemical
products (8%)
Manufacture of
metals (10%)

Machiner
y and
Textiles and equipmen
apparel (5%) t (4%)

Wholesale (except motor Non-metallic mineral Electronics and electrical

vehicles) (19%) products (9%) equipment (4%)
BRVT YOY GROWTHS

BRVT YoY Growths

Key Developers
Year Total area Total leasable area Projects Occupancy Rent (US$/m2)
2018 6,512 3,891 11 71% 51
2019 8,924 5,168 12 70% 55
2020 9,427 5,742 13 74% 64

Occupancy growth YoY:

2020 Occupancy (%) 5.71%

2020 Rent (US$/m2) Land lease growth YoY:

26.67%
55 60 65 70 75
PORT OPERATIONS IN SOUTH VIETNAM
With more than 40 ports for each province, Ho Chi Minh and Ba Ria – Vung Tau are key hubs in the South, supporting the
transportation of majority products in the South

No. of Ports by Province, 2018 (South) HCMC, Dong Nai and BRVT ports systems

45
40
35
30
25
20
15
10
5
0
HCMC BRVT Can Tho Dong Kien Dong Binh
Nai Giang Thap Thaun
CAI MEP – THI VAI (CM-TV) PORT COMPLEX

Cai Mep International Terminal Port CM-TV0 market share, 2015-2019

million TEUs Other Ports CM-TV Port Complex
• The only Deepwater Port in the South 16
• Total port output accounted for an 18% share,
• equivalent to over 3.75 million TEUs and up 29% 14
YoY 3.75
12
• US$2 billion investment has 7 Cai Mep - Thi Vai 2.90
2.44
container terminals 10 1.47 1.99
• with 6.8 million units/pa capacity
• 04 are ‘bulk’ cargo ports, with 36.8 million tonnes, 8

equivalent to 3.39 million TEUs 6

• The other 03 3.41 million TEUs capacity 9.53 9.53 10.11 10.61
9.10
• Up to -14m water depth and low sedimentation 4
levels allows large 18,300TEU container ship
2
docking
0
2015 2016 2017 2018 2019

Source: Vietnam Seaport Association, 2019

OUTLOOK FOR BRVT

Department of Industry and Trade for BRVT implementing

Industry promotion and Support policies for Improving technology, training

trade promotion policies; enterprises in purchasing human resources, and
equipment and machinery; building brands;

Local industry promotion Deployed solutions to Compiled the provincial

program for 2020 has attract enterprises to electricity development plan
been approved and high-tech manufacturing for the 2016-2025 to
allocated funding, industries; support power needs of
enabling signing of production and business
contracts;
CONCLUSION

Industrial market performed well in 2020, attracting foreign investment

H1/2020 facing challenges amid COVID-19

Market to rebound quickly post pandemic, and relocation wave from China to accelerate

Key drivers: low labor costs, land prices, CIT incentives, FTA’s, location, young population

BRVT: upcoming hub with good land supply, competitive lease price and strong local Govn.

More developers in BRVT with competitive IP projects e.g. Phu My 3 IP

Cai Mep Terminal Port attracting more multinationals away from congested Cat Lai

Local Govn. Must continue to implement industry promotion and trade activities
CONTACT
Mr. John Campbell
Manager – Industrial Services
[email protected]
Tel: +84 (0) 986 718 337

DISCLAIMER
Although every care has been taken in preparing this proposal, Savills does not verify its accuracy. Information,
opinions and forecasts in this proposal depend on the accuracy of any information and assumptions on which
they are based, and on prevailing market conditions, for which Savills does not accept responsibility.
No representations or warranties of any nature whatsoever are given, intended or implied about this proposal,
any information, opinions and forecasts contained within this proposal or the accuracy or enforceability of any
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INVESTMENTS AND TAX CONSIDERATIONS
WHEN SETTING UP BUSINESS IN VIETNAM
WEBINAR

Tuesday, 1 September, 2020

CONTENTS

1. GENERAL ECONOMIC DATA

2. INVESTMENT INCENTIVES

3. FREE TRADE AGREEMENTS

25 - M A Z A R S
MAZARS AT A GLANCE

MAZARS GROUP 91 MAZARS IN VIETNAM 05

Countries Partners
& territories ABOUT
GLOBAL INCOME BY SERVICE LINE § Started in 1994 200
Audit has been our core area of expertise for 40,400 § Became 100% foreign own company in
1998
Professionals
more than 70 years Professionals § Obtained Audit License in 2009
400+
AUDIT
47.1%
€1.8bn SERVICE OFFERINGS Number of clients

ACCOUNTING & OUTSOURCING

16.4%
Fee income § Audit and Assurance 03
§ Accounting and Outsourcing Nationalities
+10.4%
CONSULTING
§ Tax Advisory and Compliance
FAS
11.4%
Growth § Financial Advisory Services 07
7.2%
§ IFRS Services Service Lines
TAX

LEGAL SERVICES
16.3%
318 §
§
Business Start-Up Assistance
Transfer Pricing Services
02
1.6% Offices Offices

26 - M A Z A R S
OUR CREDENTIALS
MAZARS GROUP

MAZARS VIETNAM

27 - M A Z A R S
GENERAL ECONOMIC DATA

VIETNAM

28 - M A Z A R S
GENERAL ECONOMIC DATA | VIETNAM

Country Cost of starting a Ease of Doing Number of FTAs Number of DTAs Attitudes towards Fitch Country
Inflation Rate
Incorporation (1) business Business signed (3) signed (4) entrepreneurial risk Rating

1.5 months US$ 200(2) 70th 2.86% (2019) 18 80 3.9/7 BB

(7th in APAC)

Area in km2 Population Labor Force Working age Visa-free Entry CIT VAT Fitch Outlook (5)

20%
331,210 97M 54.8M 15 24 (incentives up 10% Positive
to 10%)

(1) World Bank report

(2) Fee does not include using a service provider
(3) as updated to July, 2020
(4) applied, weighted mean, all products, excluding FTAs and trade-war related changes
(5) ADB Forecast

29 - M A Z A R S
INVESTMENT INCENTIVES | FREE TRADE AGREEMENTS IN EFFECT
Vietnam is a party of many free trade agreements, allowing for cost effective exports from Vietnam

In effect
Chile – Vietnam FTA CPTPP (TPP11) FTA ASEAN – India FTA China – Vietnam CSP

EU – Vietnam FTA ((EVFTA) ASEAN - Hong Kong FTA ASEAN - Japan FTA India – Vietnam CSP
ASEAN - Australia/New Zealand
EAEU – Vietnam FTA ASEAN – Korea FTA EFTA - Vietnam
FTA
ASEAN Trade in Goods Agreement
Japan – Vietnam FTA ASEAN – AEC FTA UK – Vietnam ETA
(ATIGA)
Korea – Vietnam FTA ASEAN – China FTA Russia – Vietnam CSP

Upcoming or under negotiation

Israel - Vietnam RCEP (ASEAN+6)

ü Reducing trade tariffs and give it access to markets in North Asia, Europe, and North and South America.
ü Enticing European and American export companies to produce their goods in Vietnam and export back to their markets.
ü Giving Vietnamese companies access to best business practices and high-tech manufacturing that should improve
Vietnam's labour productivity.

30 - M A Z A R S
GENERAL ECONOMIC DATA | VIETNAM

Top 3 Exported market Top 3 Imported market Top 5 FDI countries

The United States China South Korea

Hongkong
China South Korea

Singapore

Japan Japan
Japan

China

Source: World Bank Data & Nordeatrade

31 - M A Z A R S
PREFFERED DESTINATION FOR SUPPLY CHAIN SHIFTS
§ Ranked 8th among the top 20 best countries to invest in (a hit-leap as compared
to 23rd place in previous years)

§ Favored Destination for Supply Chain Shifts during Trade War with its maturing
manufacturing industry, its geographical proximity to China.

§ Vietnam’s CPI ranked 117th among 180 countries (2018)

§ An Innovation hub with 42nd place of Global Innovation Index (GII) among 129
economies in the world
Vietnam is the preferred
§ Young and skilled labour force with deeply-rooted technological expertise and supply chain
entrepreneurial generation. diversification option
§ A dynamic country with swift transform to lower-middle income market

§ Economic stability and growth continue to hold up with accelerating foreign direct
investments and sustained domestic demand

§ Some of the biggest brands in the world have moved their manufacturing out of
China to Vietnam, including Hasbro, Nintendo, Samsung, and Skechers. Apple
suppliers Foxconn and Goertek have also moved their operations to Vietnam.

32 - M A Z A R S
INVESTMENT INCENTIVES | KEY INDUSTRIES FOR INVESTMENTS

Production of key Production of Cultivation,

Production of new electronic, ancillary products Production of IT
High-tech activities, processing of
materials, new mechanical serving textile products,
high-tech ancillary agriculture
energy, clean products, and garment software
products; research products, forestry
energy, renewable agricultural industry, leather products, digital
and development; products,
energy machinery, cars, and footwear contents; aquaculture
car parts; industry, and the products; etc.
shipbuilding products in the
third point above;

33 - M A Z A R S
INVESTMENT INCENTIVES | AVAILABLE GOVERNMENT INCENTIVES

ü Investment incentives are granted to investment projects based on the following criteria:
o Location: investment projects located in areas with difficult or especially difficult socio-economic conditions or special
purpose zones;
o Business industry: investment projects engaged in encouraged business activities such as high-tech businesses,
socialised businesses (e.g. education, medical), infrastructure development businesses, etc.;
o Others: investment projects with large investment capital or engaging in the manufacture of support industry
products.

ü Investment incentives granted to qualified investment projects include:

o Corporate income tax (CIT) incentives: Preferential CIT rate (i.e. lower CIT rate in comparison with the standard
CIT rate of 20%) for a definite period or for the entire duration of the investment project; exemption from CIT and
reduction of CIT for a definite period;
o Import duty incentives: Exemption from import duty in respect of goods imported to form fixed assets, raw materials
and components for implementation of an investment project; and
o Land rental and land use tax incentives: Exemption or reduction of land rental and land use tax

34 - M A Z A R S
INVESTMENT INCENTIVES | AVAILABLE GOVERNMENT INCENTIVES

• CIT rate is 20%. • Different VAT rates (0%, 5% and 10%) or

CIT
• Taxation for oil and gas businesses: VAT VAT exemptions are applied to different kinds
32% - 50%. of goods and services
• Natural resources industry: 40% / 50%

ü Preferential CIT rate for a definite period or for the

Some goods and services are exempted from
entire duration of the investment project based on VAT such as medical or veterinary exempt
VAT exemptions services, certain kinds of insurance services,
their business activities or their location; exemption certain financial operations.
from CIT and reduction of CIT for a definite period;
ü Preferential tax rate for businesses operating in the VAT 0% Mainly applied to exported goods/services.
manufacturing, construction and transportation fields
with a high ratio of female employees or ethnic- Generally applied to areas of the economy
VAT 5% concerned with the provision of essential goods
minority employees; or for SMEs and services.

VAT 10% “Standard” rate.

35 - M A Z A R S
INVESTMENT INCENTIVES | AVAILABLE GOVERNMENT INCENTIVES

TRANSFER PRICING LAND RENTAL AND LAND USE TAX INCENTIVES

§ Related party transactions Declaration Forms (to be lodged Exemption or reduction of land rental and land use tax, for
specific investment projects satisfying certain conditions:
annually to the tax authority together with a year-end CIT
return) and preparation of Transfer Pricing Documentation as • Investment in encouraged sectors or certain fields of
evidence of the arm’s length principle business and/or encouraged geographical locations.

• FIEs and foreign parties to BCCs (Business Co-operation

§ TP Documentation Contract) may enjoy land and water surface rent exemptions
o Local reports of the Vietnamese taxpayer; of between 3 years to the whole operation period and
o Global Master Files; and land and water surface rent reduction in some cases.
o Country by Country (“CbC”) report for the whole group.

§ Related regulatory framework

o Decree 20/2017/ND-CP dated 24 February 2017
o Circular 41/2017/TT-BTC dated 28 April 2017
o Advance Pricing Agreement: Circular 201/2013/TT-BTC;
Circular 205/2013/TT-BTC
o Decree No. 68/2020/ND-CP on deductibility of interest
expenses

36 - M A Z A R S
INVESTMENT INCENTIVES | AVAILABLE GOVERNMENT INCENTIVES

IMPORT DUTY INCENTIVES EXPORT DUTY INCENTIVES

• Exemption from import duty in respect of goods imported to

form fixed assets, raw materials and components for • Applied to: agricultural products (e.g. rice, forest products and fish) and
implementation of an investment project natural minerals.

• Import duties are charged on a much wider range of goods. • Rates may be up to 40% and are imposed on the F.O.B price of
Rates are calculated taking product type and origin into exported goods.
account.

• There are three categories of duty rate as follows:

o Preferential rates are applied to goods imported from
countries which have Most Favoured Nation (MFN)
status with Vietnam;

o Ordinary rates apply to goods imported from other

countries. These are 150% of the preferential rates
applicable to MFN countries; and

o Special preferential rates apply to goods imported from

countries which have a special preferential agreement
with Vietnam, e.g. the ASEAN member countries under
the CEPT and EU member countries under the Textile-
Garment Treaty between Vietnam and the EU.

37 - M A Z A R S
OUTBREAK SITUATION OF COVID-19 IN VIETNAM
Unit: person Cumulative number of infected people in Vietnam

- Cumulative total of infected people: 1,040 ・Community infection after 100 days
- Cumulative number of deaths: 33 ・2nd wave has been coming since 23rd July
(As of August 31, 2020) in Central Vietnam.

・No community infections since April 17

・Only newcomers from overseas are newly infected

・Social distancing
・Restriction of non-essential services and
Infection spreads via stores
returnees from ・Limiting vehicles.
Europe and America
Infected
Infection detected via person
returnees from China,
etc. Healer

Source: Ministry of Health & variousreports

38 - M A Z A R S
VIETNAM GDP: FIRST HALF OF 2020 <Distribution of GDP across economic sectors>
January -
GDP Industry
June 2020
Details

GDP growth rate in the first half of 2020

- GDP growth rate from January - June 2020 was increased - Agriculture increased 0.8%. Exports
Agriculture of seafood and fruits declined due to
by 1.81% (estimated value) forestry and 1.2 decrease in global demand.
It rose 3.68% in the Q1 and 0.36% in the Q2, the lowest fishing - Drought and ASF (African swine
level in the past 10 years. fever) infection also affected.

- Manufacturing industry increased by

5.0% (compared to the increase of
Mining and
<The trend of GDP growth rate> construction
3.0 11.2% in January –June 2019).
- Inventory increased due to demand
reduction.

- Wholesale/retail increased by 4.3%

(compared to the increase of 8.1% in
Service January –June 2019)
0.6
industry - Services industry accounts for 40%
and tourism industry accounts for
10% of GDP.

(Source) General Statistics Office Of Vietnam

39 - M A Z A R S
VIETNAM GDP: FORECAST AFTER 2020
GDP - GDP growth rate forecast
• Growth rate forecast of GDP in 2020 different from each institution. It is difficult to estimate future infections, and how we
can see Vietnam's dependence on foreign capital and overseas markets?
• If it is in the 2% range, since 2.8% in 1986 when the Doi Moi policy was adopted

<Estimated GDP growth rate from each institution (comparison of ASEAN)>

Vietnam Indonesia Thailand Malaysia Philippines Southeast Asia*

Forecast institution
‘19 ‘20 ‘20 ‘19 ‘20 ‘20 ‘19 ‘20 ‘20 ‘19 ‘20 ‘20 ‘19 ‘20 ‘20 ‘19 ‘20 ‘20

World Bank (6/8) 6.8 4.8 ▲5. 0 4.1 ▲3.1 6.9 6.0 ▲1. 9 6.2 4.8 ▲1. 2 5.4
2.8 0.0

International Monetary 7.0 8.2 6.1 9.0 5.9 7.6 4.8 7.8
Fund (IMF) (4/14) 2.7 0.5 ▲6. 7 ▲0. 6
7.0 5.0 2.4 4.3 ▲1.7 0.6

Asian Development Bank

6.8 ▲1. 0 5.3 ▲6. 5 3.5 ▲4. 0 6.5 6.0 ▲3. 8 6.5 4.4 ▲2. 7 5.2
(ADB) (6/18) 4.1

Fitch Solutions (4/3) - - ▲1. 4 - - 5.9 - - - -

2.8 4.2 1.2 4.0

*The range of Southeast Asia

・World Bank: 8 countries of ASEAN + Laos, Myanmar, Cambodia
・International Monetary Fund: ASEANS (Thailand, Malaysia, Indonesia, Philippines, Vietnam)
・Asia Development Bank: 11 countries of ASEAN affiliates + East Timor

40 - M A Z A R S
VIETNAM TRADE: SIGNS OF RECOVERY IN BOTH IMPORT & EXPORT
Trade
• From January to June 2020, exports increased 0.2% and imports decreased 2.9% compared with the same period of the last year.
• In May, exports (draft figures) decreased by 12.3% and imports fell down by 21.2%, but in June, exports (draft figures) increased by 5.3%
and imports increased by 6.4% (Both was slightly increased)

The trends of import/export

Export value Import amount Balance of trade
(mil. USD) (right) (mil. USD)
(left axis: plus side) (left axis: negative side)

(Source) General Department of Customs

41 - M A Z A R S
VIETNAM TRADE: EXPORT OF ELECTRONIC PARTS TO THE US AND CHINA WILL MAINLY CONTRIBUTE TO THE
VIETNAMESE TRADE.

§ Even in COVID-19, exports and imports of computer electronic products and parts have maintained double-digit growth.
Exports to the US and China account for 40% of the total export value, which will remain the sustainable growth.
§ Demand for electronic devices increased due to trend of working at home.
§ On the other hand, exports and imports of textile and footwear products decreased. The main reason is that the European
and US markets were sluggish due to the effects of COVID-19.

42 - M A Z A R S
 VIETNAM TRADE: EXPORT OF ELECTRONIC PARTS TO THE US AND CHINA WILL MAINLY CONTRIBUTE TO THE
VIETNAMESE TRADE.
<< Exports of Vietnam from January to June 2020 >> (Source) General Department of Customs

Export amount Composition Rate of

Country / Region Export Composition Rate of
(mil USD) ratio change Products amount ratio change (%)
(%) (YoY)
(mil USD) (YoY)
(1) US 31,504 25.7 14.6
(1) Phones and parts 21,955 17.9 -6.5
(2) China 19,667 16.0 18.2
(2) Computer electronic products and parts 19,471 15.9 25.4
(3) Japan 9,295 7.6 -3.7 (3) Sewing products 13,182 10.7 -12.7

(4) South Korea 9,140 7.4 0.3 (4) Machinery and parts 10,415 8.5 26.5

(5) Hong Kong 4,110 3.3 27.5 (5) Footwear 8,130 6.6 -6.9

<<Imports of Vietnam from January to June 2020>>

(Source) General Department of Customs

Export Rate of
Export amount Composition Rate of
Country / Region change (%) Item amount Composition change
(mil USD) ratio (%)
(YoY) (mil USD) ratio
(YoY)
(1) China 34,919 29.8 -1.9
(1) Computer electronic products and parts 27,163 23.2 13.8
(2) South Korea 20,785 17.7 -7.9
(2) Machinery and parts 16,820 14.3 -4.5
(3) Japan 9,432 8.0 6.9
(3) Phones and parts 5,971 5.1 2.7
(4) Taiwan 7,502 6.4 4.9
(4) Woven fabric 5,521 4.7 -15.9
(5) US 7,043 6.0 2.0
(5) Steel 4,015 3.4 -16.6

43 - M A Z A R S
 HO CHI MINH OFFICE
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Tel: +84 28 38 241 493

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www.mazars.vn
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Fax: +84 24 35 73 97 06
E-mail: [email protected]

About Mazars
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professionals to assist major international groups, SMEs, private investors
and public bodies at every stage in their development.
 BÀ RỊA – VŨNG TÀU and
The Next Industrial and Logistic Hub in South Vietnam
Webinar
Agenda 01
Cai Mep Thi Vai Deep Sea Port and
the potential to be developed as the
international transshipment hub

02 Investment Opportunities in Ba Ria

Vung Tau

03 Case Study
Phu My 3 Specialized Industrial Park
 BA RIA – VUNG TAU PROVINCE
I. Cai Mep Thi Vai Deep Sea Port and the potential to be developed as the
international transshipment hub
1. Cai Mep Thi Vai Deep Sea Port General Infomation

* NO. 19TH DEEP SEA PORT IN THE WORLD

* BIGGEST DEEP SEA PORT IN VIETNAM
* AVERAGE MARINE FAIRWAY DEPTH: -14M
* 200,000DWT CAPESIZE MOTHERSHIP AVAILABLE

vTHI VAI GENERAL PORTS:

+ OPERATING: 7 TERMINALS
+ CARGO THROUGHPUT: 84 MIL TONS IN 2019
v CAI MEP CONTAINER PORTS:
+ OPERATING: 5 TERMINALS
+ CONTAINER THROUGHPUT: 3.5 MIL TEUS IN 2019
v LIQUID RECEIVING TERMINALS
4 TERMINALS WITH PANAMAX TYPE TANKER
AVAILABLE
2. Cai Mep Container Terminal
MASTER PLAN OF CAI MEP PORT

- DESIGN CAPACITY: 6.8 MIL TEU

- CURRENT THROUGHPUT: + 50%
- AVERAGE GROWTH: 25.4 %

+18,000 TEU
TRIPLE-E CLASS
CONTAINER SHIP
AVAILABLE
3. Services Lines in Cai Mep Ports

- 2M, THE ALLIANCE, THE

OCEAN ALLIANCE

-16 DIRECT SERVICE LINES

TO US, UK
-9 SERVICE LINES OF INTRA
ASIA
-7 DOMESTIC SERVICE LINES

THE ONLY ONE DEEP

SEA PORT IN
SOUTHERN
VIETNAM HAS THE
DIRECT SERVICE
LINE TO
US, UK
4. CMTV in the picture of others Deep Sea ports in ASEAN

Thailand: Laem Chabang

Terminal: 10 lines Vietnam: Cai Mep Thi
Vai Terminal: 16 lines

No. 1 in ASEAN
(excluding 2
international
transhipment
hubs: Singapore
& Malaysia

Indonesia: Jakarta
terminal: 4 lines
5. Southern Key Economic Zone

- ECONOMIC GROWTH:
+1.5 times COMPARE WITH
OTHER AREAS
-40% GDP OF VIETNAM
DESPITE ONLY 4% AREA,
17% POPULATION OF
VIETNAM
-US$5,200/CAPITA
(DOUBLE COMPARE WITH
AVERAGE CAPITA OF
VIETNAM)
-140 INDUSTRIAL PARKS
(280 IN TOTAL OF
VIETNAM)
-Attracted 173 billions of FDI
investment
6. CM TV Port and the Unique Supply Chain in the
South of Vietnam
7. Cai Mep Ha Logistic Park Introduction

TOTAL AREA: 1.763ha

- LOGISTICS PARK & CAI MEP HA

- DOWNSTREAM PORT: 984,24ha
- WATER SURFACE AREA: 455,77ha
- CLEAN ENERGY ARE: 197,65 ha
- POTENTIAL PORT AREA: 125,34ha
8. The Future of Cai Mep Port: International transshipment hub
INTERNATIONAL TRANSHIPMENT HUB

EUROPE
CANADA FE5: 17 days
PN2: 16 days
US EAST COAST
EC4: 27 days
EC5: 25 days
US WEST COAST ASIA
PVC: 19 days NS1: 28 days
PS2: 17 days
PS3: 17 days CM-TV
PORTS

STRATEGIC LOCATION - GATEWAY TO THE WORLD

 II. Investment Opportunities in Ba Ria Vung Tau
1. Outstanding advantages of BRVT Province

Energy
Extensive
diversity
port service

Cai Mep Thi Vai deep-water port Abundant natural resources

Best place for heavy
Depth: 14 – 16.5 meter (Crude Oil 93%, Natural Gas 17%,
and chemical industry
Receive the New Cape Class 70% of electric furnace LPG, Condensate)
container up to 200,000 DWT steel in Vietnam
Stable
Stable power
clean water supply
supply

Reservoir dam with rich and Natural Gas Power Plant area with
fresh mountain water source total capacity of 4,100MW.
2. Synchronous transport infrastructure,
connecting regions and areas

• 01 Thi Vai – Cai Mep

international deep sea-port

• 03 Highway roads connection

• 01 Railway connection

• 01 Internal port road

• 15 Industrial parks

• 30 Minutes to Long Thanh

International Airport
57
3. Achievement on investment attraction

TOP 10 FDI Investment in Ba Ria Vung Tau Province

6,000,000,000

5,000,000,000

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

Thailand Korea USA Canada Japan Taiwan Singapore UK Fra nce

4. Recent major projects in BRVT province overview

1. Long Son Petro Chemical Project（SCG）

Investor: SCG Group (Thailand)

Total investment: 5.4 billion USD

Operation Schedule: scheduled to start operation in 2023

Land size: 464ha

Project overview: Use Naphtha as raw material to produce

following products:

Olephin 1.6 million ton

Polyethylene, high density polyethylene (HDPE), etc.

4. Recent major projects in BRVT province overview
2. Hyosung Petrochemical Project （ Korea Hyosung Chemical ）
Investor: Hyosung Chemical, Korea
Total investment: $ 1.2 billion
Schedule: start operation in 2020
Land size: 61ha
Project overview: Use LPG as raw material to produce:
propylene 600,000 ton （year）
polypropylene 600,000 ton
etylen 55,000 ton
hydrogen 20,000 ton
＊LPG import jetty (60,000 DWT) and LPG underground tank are under construction in
Thi Vai area.
5. Projects calling for investment

POTENTIAL INVESTMENT SECTORS

LNG TERMINAL AND RAW MATERIALS

RENEWABLE ENERGY CHEMICALS AND
PETROCHEMICAL

üLNG imported terminal ü Micro plastic-beads used in ü Hi-tech Steel, Metal;

ü Solar power supporting industries;
ü Polymer materials;
üWind power ü Petrochemical products, PVC;
ü Composite materials.
ü Wind power ü Methanol and methanol products.
ü Manufacturing equipment used
ü PP, PE
in renewable energy production

61
III. Case-study: Phu My 3 Specialized Industrial Park
in BRVT Province (PM3 SIP)

Most attractive industrial base for investors

1. What is “Specialized Industrial Park”?

§ Phu My 3 Specialized Industrial Park is the only one Specialized Industrial Park in Vietnam established
under Vietnamese Government in December 2014.
§ 2 benefits of the Specialized Industrial Park:
§ Expanding land lease period of usual 50 years to 70 years. In case of PM3, the license was granted in
2007, so in reality, the land lease term is around 57 years until Dec. 20, 2077, and land lease fee
become cheaper.
§ Land lease fee will be exempted for 20 years after Industrial Park has completed construction and go
into operation.

Thanh Binh Phu My Joint Stock Company

2. Hard-infrastructure

§ Phu My 3 Specialized Industrial Park is the only one Specialized Industrial Park in Vietnam established under Vietnamese
Government in December 2014.
§ 2 benefits of the Specialized Industrial Park:
§ Expanding land lease period of usual 50 years to 70 years. In case of PM3, the license was granted in 2007, so in reality, the land
lease term is around 57 years until Dec. 20, 2077, and land lease fee become cheaper.
§ Land lease fee will be exempted for 20 years after Industrial Park has completed construction and go into operation.

Thanh Binh Phu My Joint Stock Company

Support and One Stop Service of PM3SIP
Procedures of establishing
Management and company (IPA, IRC, ERC), EIA,
maintenance services construction permit,…

OSS Recruitment and visa,

Legal support working permit
Services
application

Service center (sports, restaurant,

rental office, conference, residential
Logistics services areas for foreign experts,…)
 THANK YOU FOR LISTENING!

Thanh Binh Phu My JSC – Developer of Phu My 3 Specialized Industrial Park

Add: Phu My 3 Specialized Industrial Park, Phuoc Hoa Ward, Phu My Town, Ba Ria-Vung Tau Province, Vietnam

Email: [email protected]; [email protected]