If you're planning to invest oversea ( FDI) and wan to take advantage on low labor cost, fast growing market, stable political, and the gate to ASEAN plus 3 ( China, Korea, Japan) or TPP. Let's go to Vietnam.

1. LONG HẬU INDUSRIAL PARK
DOING BUSINESS
IN VIETNAM
TRAN TAN SY
Sales & Marketing Director
Sy.tt@longhau.com.vn

2. CONTENT
• Vietnam overview
• Vietnam investment environment
• Why Vietnam?
• Why Long Hau industrial Park?
• RBF Calling Project
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3. Location
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4. Vietnam at a glane
• Area: 332,000 km2
• Coastal line: 3.440 km
• Population: 88 million,
– 60% is under 35 years old
• Capital: Hanoi 7 MM people
• Commercial hub: Ho Chi Minh
City 10 MM
• GDP 2011 : 1,100 USD
• Official language : Vietnamese
• Location: Southeast Asia ,
bordering China, Laos an
Cambodia
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5. REAL GDP GROWTH
Real GDP growth 5 2010 2011 2012F 2013F 2014F
Developing countries 7.4 6.1 5.3 5.9 6.0
East Asia and
9.7 8.3 7.6 8.1 7.9
Pacific
China 10.4 9.2 8.2 8.6 8.4
Indonesia 6.2 6.5 6.0 6.5 6.3
Thailand 7.8 0.1 4.3 5.2 5.6
Vietnam* 6.8 5.9 5.6 6.3 7.0
Source: WB The global outlook in summary, 2010-2014
* IMF World Economic Outlook April 2012
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6. Top 10 Urban Average Real
GDP Growth in 2008 – 2025
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7. Vietnam FDI inflow
Top 10 FDI by country ( Update Nov. 2012)
Registered
No. f
No Country Capital ( BN %
Projects
USD)
1 Japan 1800 29.00 14%
2 Taiwan 2266 26.39 12%
3 Korea 3159 24.65 12%
4 Singapore 1091 24.64 12%
5 BritishVirginIslands 519 15.97 8%
6 Hongkon 693 11.96 6%
7 Malaysia 432 11.34 5%
8 USD 634 10.45 5%
9 Cayman Islands 53 7.50 4%
10 Thailand 297 5.99 3%
Source: Vietnam GSO
- Japan rose no. 1 from no. 3 in 2009
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8. INVESTORS
4 factories, 400 MM USD
2012 : 574.8 MM USD
2012 : 441 MM USD
2010: 250 MM USD
2012: 870 MMUSD To 2011: 470 MM USD
2010 : 1 Billion USD 2012 (P): 700 MM USD
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9. Why Vietnam?
• 60% under 35 years Government Stability
old Co Communist State
• 94 % literacy Member of WTO
• Unskilled labor:120 Trade Agreement
USD/ month w with 70 countries :
Competitive U
Stable US, EU, Japan…
Labor Cost Political
Tax Potential
Incentive Market
Attractive policy 88 million people
Average GDP
( detail below) Growth : 7.1%
Growing Middle
Class
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10. Stable Political
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11. Labor Force
• Young and Diligent Workforce
– 60% under 35 years old
• High Literacy Rate: 94 %
• Competitive Labor Cost
– Unskilled worker’s monthly wage: 120 USD
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12. Tax Incentive
• Zero Tax on:
– Raw Material / Components For Export
– Dividends Remitted
– Capital Equipment
• Attractive Policy:
– Incentive tax for High-Tech; scientific research; infrastructure
developer; software; healthcare…
Corporate income tax 10%. Incentive: 0% for first 4 years; 50%
discount for the next 9 years
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13. Potential Market
• 13th Most Populous Country
– 88 million people
• GDP 2012 1,100 USD/ cap
• Average GDP last 10 year: 7.1%
• Growing Middle Class
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March 2012, in Tan Phu District, HCMC

14. Comparative Survey of Investment-Related
Costs – Jetro August 2011
Wages (US$/month) Land price/Office rents (US$)
Workers Engineers Legal minimum Industrial Estate Industrial Estate
(general workers) (mid-level wage (land) purchase rent ( RBF)
National engineers) rate (monthly, per sq.m)
Viet Nam 114 265 79.49 100 4-6
(HCM)
Thailan 263 588 183.3 92 6.89
(Bangkok)
Indonesia 240 406 130 78 3.10 – 4.65
(Batam)
Philippin 236 388 185.9 48 - 52 1.7
(Manila)
China 235 530 167 28 - 109 4.55
(Shenzhen)
Vietnam has competitive wages, only 40% of Thailan, Indonesia, Philippine, China
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15. Comparative Survey of Investment-Related
Costs – Jetro August 2011
Public Utility rate Tax
Electricity rate for Water rate for Gas rate for Corporate Personal income Valued-added Tax on dividends
business use business use business use income tax rate tax remitted to Japan
(per kWh) (per cu.m) (per cu.m) tax rate (highest rate, %) (VAT) (highest rate, %)
(standard, %)
National
(1) 0.028
Viet Nam 35% 0% . 5%.
(2) 0.051 0.69 1.1 - 1.2/kg 25% 0%
(HCM) 10%
(3) 0.099
Thailan Rate per
0.12 0.31-0.52 30% 37% 7% 10%
(Bangkok) cu.m: 4.53
Indonesia 1.16 Rate per 30% 10% (1) 10%
0.12 25%
(Batam) 1mmBtu: 6.4 (2) 15%
Philippin 32% 15%
0.13 1.39-1.68 1.41/kg 30% 12%
(Manila)
China 0.03-0.16 Rate per 45% 10%
0.47-1.44 25% 17%
(Shenzhen) cu.m: 2.37
- Vietnam has lowest electricity fee. Especially, It’s free for dividends remitted
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16. WHY LHC?
Saving Cost
Sustainable
Saving Time
Development
LHC
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17. Overview Long Hau Industrial Park
Location:
- 12 km from Phú Mỹ Hưng
- 19 km from Sài Gòn
- 30 km from Tân Sơn Nhất Airport
- 3 km to deep ports: SPCT, Sài gòn,
Establish : 5/ 2006
12 km
Owner: IPC ( the developer of Tân
Thuận EPZ, Phú Mỹ Hưng city…)
Scale:
- Long Hậu IP: 248 ha, occupancy
rate: 70%
- Long Hậu 3 (developing) 869 ha, 3.5
km from Long Hậu
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18. Saving Time
• Near to HCMC,
• Infrastructure ready for building
• Ready built factory available
• 15 days for Business Certificate
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19. Saving Cost
• Free:
– Legal support for start up business
– Construction Project management
• Low cost:
– Logistic : Near to port ( only 3 km)
– Virtual office: Shared office Outsourcing
service : Accountant, HR service ,
Reception
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20. Amata IP
VSIP
TÂN TẠO IP
TÂN THUẬN
SÀI GỎN
LONG HẬU – PREMIER
LONG HẬU IP CONTAINER
20 HOÀ BÌNH IP
PORT

21. Saving time & Cost
KCN To Phú Mỹ Cát Lái Port SPCT Tân Sơn Land RBF
Hưng (km- Km - minute Port Nhất Price USD
miniute) Airport Month/ 1
m2
Tân Thuận 7 km - 15’ 11 – 20’ 20 – 35’ 20 – 45’ 250 / 30 6
years
VSIP I 42 km - 90’ 30 – 60’ 42 – 90’ 42 – 100’ 90 / 35 4.5
years
AMATA 40 km – 80’ 35 – 70’ 52 – 90’ 52 – 100’ 85 / 37 4.5
years
Long Hậu 12 km - 25’ 25 – 35’ 3 – 10’ 26 – 55’ 105/ 47 4–5
years
Long Hau 35 Km – 35’ 45 – 60’ 45 – 60’ 39 – 60’ 55 / 47 3.5 - 4
– Hoà Bình Years
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22. Sustainable
Development
• Save the environment : ISO 14001 : 2004
• Customer Service ( Japanese, English, Chines, Korean) : ISO 9001:
2008
• Stable living environment for worker and expert:
– Dormitory
– Convenience Store
– Kindergarten
– Leisure Service
– Japanese Language Center
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23. Structure of Tenants
4 3
3% 3%
VN
Japan
5 Precision
4% Korea 6
17%
Mechamical
Eu & Us
Garment, Leather
Asean package, lable
4 17
36 11% 47% Machinery
32% 66
58%
Others
9
25%
There are 36 Japanese tenants, proportion of JP companies is 32%
Proportions of precision mechanical, machinery and labor – intensive industry
(garment industry) are very high
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24.
Our Customers
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25. Thank You
• Contact information:
- JAPANESE / ENGLISH
MR. HIẾU – Foreign Account Manager
Tel: +84-963 021 768 Email : hieu.bla@longhau.com.vn
MR. LÀNH – Sales Manager
Tel: +84-914 191 616 Email : lanh.pv@longhau.com.vn
- CHINESE
MS. NGUYỆT – Sales Manager
Tel: +84-902 893 337 Email : nguyet.ntt@longhau.com.vn
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