VIETNAM-CZECH COOPERATION POTENTIAL & OPPORTUNITIES

1. VIETNAM-CZECH COOPERATIONPOTENTIAL & OPPORTUNITIES Prague, June 15th 2015 Vietnam Commercial Office in CZ

2. CONTENTS 1. Overview on Vietnam2. Foreign trade and investment performance 3. What attracts investors to Viet Nam?4. Examples: + 2015 Exhibition-Trade Fair; + Projects attracted5. Contact address

3. Viet Nam at a glance • Centre of Southeast Asia • Land area: 331,698 sq. km • Coastline: 3,260 km • Population: ~ 90 million • Labor force: > 55 million • Percentage in GDP: 39% industry, 18%agriculture, 43% service&trade

4. Vietnam’s economic profile • Period 2004-2014 • GDP growth rate between 5.2-6.2% per annum • 2014: GDP growth rate 5.98% • Forecast 2015: GDP growth rate 6.0 to 6.1% (by WB, 4.2015) • Shift of economic structure toward market scheme • WTO accession in 2007 • Negotiating EU&Vietnam FTA, be signed this years; • EurAsian Economic Union&Vietnam: signed 29/5/2015 • Viet Nam is one of the 15 most attractive economies for investors in such aspects: • The speed of market development • Penetration of the regional market • Skilled/cheap labor and investment incentives • Infrastructure’s improving (by UNCTAD: United Nations Conference on Trade and Development)

5. Foreign trade performance in 2014 • Exports: US$ 150 billion ( increased 13.6% in comparison to 2013) (Seafood, Garment and textiles, Shoes and bags, Wood furniture, Oil, Rice, Coffee, Spares& Equipment, Mobile phones, Computers&spares, Top 1 to 5 in export: pepper, coffee, rice, seafood …) • Imports: US$ 148 billion ( increased 12.1% in comparison to 2013) (Animal feeds, Benzin, Plastic material, Fabrics, Textile-woven, Steel, Machinery, Computer&Electronics, Tools and accessories, Mobiles& accessories, Consumer's products …)

6. Signed agreements between Vietnam and Czech • Bilateral Economic Cooperation Agreement signed 09/2005 ; • Protocol on Inheriting Some Previous Agreements signed between Vietnam and Czechoslovakia; • Agreement on Avoid Double Taxation; • Agreement on the Promotion and Protection of Investment, • Air Transport Agreement ... - In Czech Export Strategy 2012-2020: Vietnam is 1 of 12 countries of key markets, priority in trade Vietnam-Czech trade and investment 2014: • Total import-export revenue VN-CZ : 652 million USD (Czech’s export: 85 mill., Czech’s import: 567 mill.) • Czech has 36 projects in VN ( registered capital > 85 million USD)

7. Vietnam-Czech Joint Commissionfor Economic Cooperation

8. USD Year VN-CZ EXPORT-IMPORT TURNOVER GROWTH

9. 5.2015 STATE VISIT PRESIDENT OF VIETNAM TO CZECH REPUBLIC • Meeting of Vietnam President with Czech President, Czech Prime-Minister, Leaders of Parliament, Ministers • Both sides emphasis: strengthening cooperation, for example in economical sectors: energy, engineering, glass production, etc.; simplifying administrative procedures, supporting enterprises etc. • Vietnam-Czech Business Forum 11.5.2015: supplying updated information , connecting enterprises/potential partners together

11. What attracts investors to Viet Nam? • Socio-political stability • Continuous economic growth • Huge market for consumption • Abundant human resources • Young labor with high literacy, IT-savvy • Labourious, hard-working, skilled • New generation of corporate leaders • Low cost of materials and inputs • Electricity, water, telecoms, air freight, leasing price • Convenient for outsource and processing industries • Located at the heart of Southeast Asia • Enjoy preferential tariffs by FTAs • Potential in near-future sea economy

12. Some contents from investment law and policy in Vietnam • In general, Viet Nam’s and Czech Republic’s economies are complementary each-other VIETNAM ENCOURAGES/ATTRACTS INVESTORS IN FOLOWING SECTORS: • The production of new materials, energy from renewable sources; manufacture products using high technology (high-tech), biotechnology, information technology; advanced engineering ; • Animal husbandry and plant cultivation, processing of agricultural, forestry and aquatic products; salt production; • The application of high technology (high-tech), modern/advanced technology; protect the environment; research, the development of high-tech

13. CONT. • Projects to labor-intensive • Building and expansion of infrastructure ( examp. transport infrastructure, including metro, highways, railway, locomotives …, communication infrastructure …) • Expansion of education, health, physical education and sport • Applying modern/advanced technology for sector of traditional crafts • Some other sectors (energy, environmental protection, bio-technology and machineries for agriculture, fishery, food processing, health care ( including hospitals and medical equipments), basic chemical industry, paper industry, leather industry, tourism, vocational training …

14. If you are going to export to Viet Nam… • Viet Nam’s becoming much freer market • almost quotas are removed • licenses are reduced and streamlined • more transparent trade policy • Banned import items: arms and ammunition, porn products, used products, uncomplied radio equipment, right-hand cars, waste, CFC appliance, toxics. • Items imported subject to licenses or conditions: wild animal and flora, fertilizer, medicine and medical products, some printed matters, radio equipment, movie, antique items, toys, some chemicals, liquor, used cars

15. Prepare yourselves before coming to VN • Understand the country, the culture and the people • "You can't do business if you don't like the people" • Invest your time, effort, money to understand • Who is a typical Vietnamese • friendly, smiling, easy to talk to • shy, sometimes reluctant in communicating with foreigners • simple thinking, flexible • Sometimes/somehow unplanned, slow/time • What you may encounter when coming to Viet Nam • Traffic jam ( Hanoi 6 mill, Ho-Chi-Minh city 9 mill …) • Language ( no problem -> English - sometimes/somewhere Czech language) • Tropical weather, high humidity

16. Projects attracted • Some projects offered (documents printed) • Exhibition-Trade Fair 2015 in Vietnam (from June): documents printed for you • Cooperation with Cities/Provinces of Vietnam: example: Hanoi, Hai-phong, Thai-binh, Vinh-phuc, Bac-Ninh … (north), Thanh-hoa, Quang-binh, Da-nang … (central), Hochiminh city, Can-tho, Kien-giang (south) … Please contact to Vietnam Commercial Office for details;

17. HANOI

18. DANANG

19. Hochiminh City

20. Thank you for your attention Děkuji Vámza pozornost Obchodní Oddělení , Vietnamské Velvyslanectví v ČR: Obchodní Rada: Nguyen Thang Long Obchodní Atašé: Tran Hiep Thuong Adresa:Rašínovo Nábřezí 38 12800 Praha 2, Česká Republika Tel: +420 22494 2235 Fax: +420 22494 2132 Email:cz@moit.gov.vn