1

VIETNAM
2
GEOGRAPHY and PEOPLE
Population 89 million
13
th
most populous country in the world
54 ethnic groups
Young population - 54% under 28 years old
High literacy rate:94%
1.6 million new jobs required each year,
equivalent to 5% annual growth
UK 13,190 km
that way
3
POLITICS
One party state - Communist Party of Vietnam
A culture where decisions made by consensus
A stable and safe environment
Growing international integration
Economic Reform (in 1986), introduction of private sector
(2000) and implementation of WTO commitments (VNs
accession to WTO in 2007)
4
THE UK & VIETNAM
40 years of diplomatic relations
Intensive high level interactions between UK and Vietnam
HMG one team (BE, BCG, DFID, BC)
On FDI, at end of 2012, UK is third largest EU investor (18
th

worldwide) in Vietnam: 163 projects with a registered value of
around US$ 2.7 billion
Aim is to increase two way trade volume to US$ 4 billion and
UK FDI in Vietnam to rise to US$3 billion by 2013
Relationship upgraded to Strategic Partnership in 2010
5
THE ECONOMY
One of the fastest growing economies in South East Asia
over the last decade (average growth of around 7%).
2012 was a challenging year but GDP growth of 5.03%
(target 6%).
Inflation: 6.8% in 2012
2013: Economy continues to recover. Monetary policy
carefully loosened last year. Government GDP growth rate
expected to be around 5.5% in 2013
Vietnam is one of UKTIs 20 High Growth Market
6
How does Vietnam compare
with its neighbours?
Ease of doing business 2013 (World Bank)

Malaysia 12 / 185
Thailand 18
China 91
Vietnam 99
Indonesia 128
Cambodia 133
Philippines 138
Value of Exports US$ (CIA Fact book 2011)

China 1 2,131 billion
Thailand 21 245
Malaysia 23 213
Indonesia 26 209
Vietnam 39 97
Philippines 57 54
Cambodia 112 5
Nominal GDP US$ bill (World Bank 2011)

China 2 / 184 7,298,147
Indonesia 16 846,450
Thailand 30 345,672
Malaysia 36 287,943
Philippines 44 224,771
Vietnam 57 124,000
Cambodia 120 12,890
Corruption Perception

Malaysia 60 / 183
China 75
Thailand 80
Indonesia 106
Vietnam 112
Philippines 129

Control of Corruption (2010)

Malaysia 61%
Thailand 47%
China 33%
Vietnam 33%
Indonesia 27%
Philippines 22%

(Transparency International)
7
FINANCIAL, PROFESSIONAL AND
BUSINESS SERVIES SECTOR
VIETNAM S FINANCIAL AND PROFESSIONAL SERVICES
Economy heavily relies on banks (total banking assets
US$127 bil vs US$123 bil GDP) - banking reform underway
Issuer Default Rating (IDR) B+ by Fitch Ratings
Cash-based : only 20% of the population using banking
services; 7% are insured
Young capital market (since 1992) but total capitalisation
up to US$42 bil (35% GDP) - Dec 2011
SOE equitisation rebooted in 2012 - 93 SOEs to be
equitised.
OPPORTUNITIES
Ranked 8
th
in the Asia Pacific with busiest M&As - grew
30%/year in recent years
Professional brokers, lawyers and consultants to support
M&A and restructuring process
Establishment of wholly incorporation; or share holding in
local financial institutions
Consultancy, technology and infrastructure development
to support the equitisation and modernisation in the
banking sector specifically
HOW TO ACCESS TO THE MARKET
Build up a good relationship with local partners/
reputable organisations/ institutions
Working in partnership with local companies or
organisations
100% foreign investment
CHALLENGES
Bureaucracy can sometimes be frustrating
Unstable regulations and policies
Tough competition with local companies who are in more
favourable conditions

8

RETAIL SECTOR
VIETNAM S RETAILS MARKET
Vietnams retail sales and services hit 111.36 bil USD in
2012, an increase of 15.72% year on year
Young population with increasing disposal incomes, which
are mostly brand and tech savvies
Traditional retail channels dominates the sector, which
distribute 78% of the total good flows.
Vietnams retail density is low i.e. 0.09 and 0.1 in HCMC
and Hanoi respectively, compared to 0.8 in Bangkok and
0.6 in Kuala Lumpur
OPPORTUNITIES
A high growth market for fast moving consumer goods
(FMCG)
70% of the population live in rural area and accounts for
only 47% FMCG value whilst modern trade contributes
22% of the FMCG value
Lucrative market for luxury goods. Vietnams import of
luxury goods in 2012 valued 10 bil USD, accounted for
11.3% of the countrys total imports.
HOW TO ACCESS TO THE MARKET
Through UKTI Vietnam
Establishing good relationships with local partners (joint-
venture)
Franchising
M & A
100% foreign investment
CHALLENGES
Slow in infrastructure and distribution network
ENT (Economic Needs Test) barriers with ambiguous legal
framework
Shortage of skilled labour and professionals in the sector
9

ADVANCED ENGINEERING SECTOR
VIETNAM MARKET
The role of advanced engineering and the machinery
industry is important as Vietnam is striving towards
modernization by 2020.
Machine, equipment, tools and instruments remain
Vietnams top major imported commodities. In 2012
Vietnams imports of machines, equipment etc. was US$
16.04 billion, an increase of 3.2% y-o-y accounting for 14%
of the countrys total import value.
OPPORTUNITIES
Machines and equipment have always been UKs top
export commodity to Vietnam.
In 2012, UKs export value of machinery to Vietnam
reached US$172.6 mil, accounted for 32% of Vietnams
total imports from the UK
Products have strong a credibility and provide good
experience to Vietnamese customers.
63% of Vietnams total export revenue comes from FDI
sector -> good pool of customers in addition to Vietnam
manufacturers.
HOW TO ACCESS TO THE MARKET
Through UKTI Vietnam
Establishing good relationships with local partners
(trading companies, distributors, etc)
Joint-venture
100% foreign investment
CHALLENGES
Strong competition from other Asian countries such as
China, Japan, Taiwan, Singapore and S. Korea
Adaptation of UKs machinery into Vietnams
manufacturing sectors (assembling) is low
Prices of UKs machinery and equipment are higher than
other EU competitors such as Germany, Italy and France
10

URBAN PLANNING SECTOR
VIETNAM MARKET
Population of 88 mil, 13
th
populous in the world, 3
rd
in
South East Asia. Growth rate of 1% annually.
Young population (med age of 27.8)
70% of the population live in rural areas. Urbanisation
rate is 3%/ annum.
Working population of 62 mil, high demand for social
houses
One of the top 5 countries that are most vulnerable to
climate change

OPPORTUNITIES
Vietnams won the bid to organise Asian Games in 2019.
There are a lot of projects in place to anticipate the event
such as the athletes village to accommodate 11,000
people.
Long Thanh International Airport with the total
investment of US$10 bil
Dire need for sustainable urban development to tackle
climate change impacts and meeting the high demand of
social housing.
HOW TO ACCESS TO THE MARKET
Through UKTI Vietnam
Establishing good relationships with local partners
(trading companies, distributors, etc)
Joint-venture
100% foreign investment
CHALLENGES
Land use and ownership
Land valuation and compensation
High property prices -> require big investment
Ambiguous and erratically regulations
11

EDUCATION & TRAINING
SECTOR
EDUCATION INVESTMENT
20% of Government budget;
11 projects during 2008-2015: US$1,270 million;
Schools will continue upgrade and plans to build at least
five international universities;
Growing demand for education expansion and higher
education;
The schools in Vietnam are established in different forms
depending on their ownership:
Public schools
People-founded schools
Private schools
OPPORTUNITIES
English Language Training Centres;
Higher Education/ Vocational Training/ Corporate
Training;
Supply of educational equipment;
Establishment of joint programmes;
International consultants;
Growing market for international studies.
HOW TO ACCESS TO THE MARKET
Working in partnership with local companies or
organisation;
Build up a good relationship with local partners/
reputable organisations/ institutions;
100% foreign investment;
CHALLENGES
Mismatch in education systems between Vietnam and UK.
Vietnams system of education is highly decentralised and
depends on transfer and allocation of norms.
Lack of financial resources to upgrade training facilities
(premises, equipment/labs) in both tertiary and vocational
education.


12

ENVIRONMENT SECTOR
VIETNAMS ENVIRONMENT SECTOR
Key environmental issues: the degradation of forest,
biodiversity, land, water and air.
Solid waste management a dominant issue that needs
urgent solution: Solid waste increased by 10% annually;
Landfill is the most popular disposable. method; 13-20% of
recovery for recycle/ reuse; Most of landfills in big cities
are nearly full.
Only 44% of 13,600 hospitals and medical
establishments have medical wastewater treatment
system.
OPPORTUNITIES
UK companies to offer consultancy and technologies for :
Solid waste management
Medical waste treatment (Vietnam got US$150 million
from World Bank for medical waste water treatment in
3 years from May 2012)
Renewable energy
Air pollution
Energy management and efficiency (World Bank
funded US$70 million in Feb 2012 to support
Vietnams climate and low carbon programme)

HOW TO ACCESS TO THE MARKET
Through UKTI Vietnam
Working in partnership with local companies or
organisations
Contracting in World Bank/ADB funded projects
CHALLENGES
Vietnam still heavily reliant on ODA and Soft Loans to
fund projects .
The price for electricity generated from landfills or
renewable energy projects is low.
Fierce competition, especially with contractors whose
governments are major donors to Vietnam.

13

ENERGY SECTOR
OVERVIEW OF THE POWER SECTOR
3rd largest oil producer in Southeast Asia, 31st in the
word with 7 major basins , 4 billion barrels of oil reserves
and 23 trillion cubic feet of gas reserves
Oil production: 300,600 barrels of oil per day
Gas production: 9,4 billion cum
Power consumption increased more than five-fold (2000-
2012)
Vietnam will need approximately US$130bn to invest in
the power sector in the next 20 years
OPPORTUNITIES FOR OIL & GAS
Supply of equipment and consultancy in:
Seismic survey, Oil & Gas Exploitation
Engineering and construction of production facilities,
Drilling and production technologies, including drilling rigs
(70-200m)
Oil Spill Management and refineries.
Gas ultilisation alternatives (polypropylene and
polyethylene production)
Training and education in all aspects of the industry.
Health Safety & Environment Waste management
HOW TO ACCESS TO THE MARKET
Supplying equipment and services: through local
distributors/agents
Investment:
Oil & Gas: partnering with PetroVietnam or local/foreign
oil & gas companies operating in Vietnam
Power: partnering with EVN or local/foreign power
companies operating in Vietnam
OPPORTUNITIES FOR POWER
Supply of equipment and Consultancy in:
Power plants design
Engineering and production facilities and refurbishment
services: valve, pump, turbine, control instruments ..etc.
Nuclear power development: Consultancy services,
Equipment and Facilities ,Fuel Enrichment and Fabrication,
Waste Management and Decommissioning, Operation and
Maintenance.
183 new power plants invested and put into operation by
2025

14
CONTACTS FOR ENQUIRIES
HANOI
Mr Piers Craven
Head of Trade & Investment
British Embassy Hanoi
4
th
Floor, Central Building
31 Hai Ba Trung, Hanoi
Vietnam

Tel: (84) (4) 3936 0500 ext. 2228
Fax: (84) (4) 3936 0561
Email: piers.craven@fco.gov.uk
HO CHI MINH CITY
Mr Stephen Agnew
Head of Trade & Investment
British Consulate General HCMC
25 Le Duan Blvd,
District 1, Ho Chi Minh City
Vietnam

Tel: (84) (8) 3825 1380 ext 2206
Fax: (84) (8) 3822 1971
Email: stephen.agnew3@fco.gov.uk

For further information, please visit our websites at:
www.ukinvietnam.fco.gov.uk
www.ukti.gov.uk
End of Presentation
Thank you