INVESTMENT IN CHEMICAL INDUSTRY – WHAT YOU MUST KNOW?

1. www.duanemorris.com
©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP.
Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston | Washington, D.C.
Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Boca Raton | Wilmington | Cherry Hill | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership
DR. OLIVER MASSMANN - Partner, General Director
DUANE MORRIS VIETNAM LLC
INVESTMENT IN CHEMICAL INDUSTRY –
WHAT YOU MUST KNOW?
1

2. www.duanemorris.com
AGENDA:
• WHY INVESTING IN VIETNAM?
• VIETNAM’S RECENT INTEGRATION TO REGIONAL
AND INTERNATIONAL ECONOMY
• INVESTMENT IN CHEMICAL SECTOR – PRODUCTION
AND DISTRIBUTION
• CONCLUSION
2

3. www.duanemorris.com
Welcome to the most dynamic country on this
planet : Vietnam!
3

4. www.duanemorris.com
Vietnam’s super rich population is growing
faster than anywhere else….
4
… and is on track to continue leading
the growth in the next decade

5. www.duanemorris.com
Communist Vietnam Has More Millionaires
Than Capitalist Philippines
5

6. www.duanemorris.com
VIETNAM’S INTEGRATION TO
REGIONAL AND INTERNATIONAL
ECONOMY
6

7. www.duanemorris.com
Vietnam’s Free Trade Agreements
7
ASEAN - China
ASEAN - Korea
ATIGA
ASEAN - India
ASEAN – Australia –
New Zealand
ASEAN - Japan
RCEP
Vietnam - Chile
Vietnam - Korea
Vietnam – Eurasian
Economic Union
Vietnam - EU
Vietnam - EFTA
TPP
ASEAN – Hong Kong
Vietnam - Israel
Vietnam - Japan
Signed
In negotiation/
Negotiation concluded
In negotiation

8. www.duanemorris.com
Without TPP – What’s next?
• TPP-11? How to implement it? (implement
it as it is, remove the part related to the US or
re-negotiate the whole agreement? Not yet decided!)
• Trade Facilitation Agreement
• ASEAN Economic Community (covering 620 million people
of 10 ASEAN countries)
• EU – Vietnam Free Trade Agreement
• Regional Comprehensive Economic Partnership (RCEP)
(covering 3 billion people in 16 countries and 28% of global
trade)
• Bilateral trade agreement with the United States?8

9. www.duanemorris.com
WTO ANALYSIS OF LIBERALIZATION
OF MARKET ACCESS
Vietnam ties in first place with Singapore
• *Typical restrictions: number of opened sectors, JV
requirement, limits on foreign-owned shares, permission
requirement
9
Country Limitation of
market access*
Country Limitation of
market access*
Malaysia medium Myanmar high
Indonesia medium Cambodia medium
Philippines medium Laos medium
Singapore low India high
Thailand medium China medium
Brunei high Vietnam low

10. www.duanemorris.com
EU – Vietnam Free Trade Agreement
10

11. www.duanemorris.com
Investing in the chemical sector
11

12. www.duanemorris.com
Overview on chemical industry in Vietnam
• Average growth of the industry during 2010-2014 is 19.25%
• In 2014, production value of the sector contributes 6.5% to Vietnam’s
GDP.
• Forecast: 17.49% growth rate during 2014-2018
• Some characteristics of the chemical industry in Vietnam:
– Weak supply of input materials
– Poor technical system and machines  low productivity and added value
– Local companies are facing fierce competition from MNCs with better
financial capacity, technology and marketing plans
• Some main players:
12

13. www.duanemorris.com
No limitation on foreign ownership….
13

14. www.duanemorris.com
…but it is a conditional business sector
• Are the chemicals included in the list of chemicals
whose production and trade in industrial sector are
conditional?
• Are the chemicals included in the list of chemicals
whose production and trade in industrial sector are
restricted?
14

15. www.duanemorris.com
A few conditions:
15
Technical (Deputy) Director
having bachelor degree or
above in chemicals
Warehouses meeting
safety conditions
Suitable means of
transport
A baby permit (in addition to the
Investment Registration Certificate and
Enterprise Registration Certificate)

16. www.duanemorris.com
Investment procedures
16
Investment
Registration
Certificate
Enterprise
Registration
Certificate
Certificate on
meeting
business
conditions
40 days
3 working days
12 days for conditional
chemicals and 20 days for
restricted chemicals
Local
Department of
Planning and
Investment
Local Department
of Industry and
Trade/ Ministry of
Industry and Trade

17. www.duanemorris.com
INVEST IN VIETNAM NOW!!!
17

18. www.duanemorris.com
Questions & Answers

19. www.duanemorris.com
DUANE MORRIS VIETNAM LLC
Thank you very much!
HANOI OFFICE HO CHI MINH CITY OFFICE
Pacific Place, Unit V1307/08, 13th Floor, Suite 1503/04, Saigon Tower
83B Ly Thuong Kiet, Hoan Kiem District 29 Le Duan Street, District 1
Hanoi, Vietnam Ho Chi Minh City, Vietnam
Tel.: +84 4 39462200 Tel.: +84 8 3824 0240
Fax: +84 4 3946 1311 Fax: +84 8 3824 0241
Contact email:
omassmann@duanemorris.com
19

20. www.duanemorris.com
References (1)
20

21. www.duanemorris.com
References (2)
21

22. www.duanemorris.com
References (3)
22

23. www.duanemorris.com
References (4)
23