- Key competitive advantages – Large population with young, high literacy rate, hard working and skillful workforce, competitive labour cost, reasonable industrial land cost, plenty of natural resources, weak local currency, political stability.
- 150th WTO member since January 2007
- Vietnam Area 331K sq km, population 85M, 70% of population under 40 (Abundant young, educated labour force at low price. Under 30, 57%). GDP US$61B, GDP per capita US$820
- HCMC – 2,095 sq Km, GDP growth 12.2%, GDP per capita US$1,970. More than 76 universities & colleges with more than 380K students. 8M people, the biggest city and economic center of Vietnam. GDP per capital US$3,010 by year 2010. US$6,000 by year 2020.
- Car ownership 2.5%, motorcycle 94%, fixed phone 77%, mobile phones 58%, internet 15%. Average household size 4.8.
- More than 97K companies (Over 30%) of Vietnam) registered in HCMC (2006)
- Most banking services are available in Vietnam – cheques not popular (banks transfer is preferred)
- Major exports of Vietnam – Crude oil, Garments, textiles, footwear, seafood, coffee, wood products
- Major Imports of Vietnam – Machine, spare parts, petroleum, steel, electronics, PCs and components, plastics.
- Industry with high potential – consumer good, retail, real estate, tourism, telecommunication, health care and education.
- Growth in Asia (Year 2006, 8.2%) – second to China (Year 2006, 10.4%). India third at 7.8% and Singapore fourth at 6.6%.
- Singapore is second top investor in Vietnam (as of July 2007) after Japan. Taiwan third and Korea fourth. Who from Singapore – Capital land, Keppel land, Centrepoint properties, Asia-Pacific Brewery, APL, UOB, SIA ….
- Corporate Income Tax – standard rate 28%, preferential rates 10%, 15%, and 20% for a period of 15 years, 12 years and 10 years are available depending on the scope of activities and location.
- Value Added Tax rates – 10% standard for most goods/services, 5% on certain sensitive and essential goods and services, 0% exported goods and services.
- Expatriates personal income tax is at a flat rate of 25% on their Vietnam sourced employment income. Expatriates spending 183 days or more in Vietnam during the applicable tax year will be treated as a tax resident of Vietnam.
- Contribution to social and health insurance are only required for Vietnamese staff; i.e. not applicable to expatriates. Employer 17%, employee 6%.
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