COUNTRY ANALYSIS

VIETNAM
GROUP MEMBERS
PRITI MANNA
SHRADDHA MODSING
POONAM SANNAKE
MEGHALI KHARAT
TEJASWI SHIRKE
AZHAR DAWRE
QAIS DESHMUKH
1065
1067
1090
1045
1135
1113
1128
GEOGRAPHIC OVERVIEW
Full Name : Socialist Republic of Vietnam
Capital : Hanoi
Area : 331, 114 sq km(127, 243 sq mi)
Neighboring Countries: Cambodia, China and Laos
Main Cities : Ho Chi Minh City(formerly Saigon),
Haiphong, Danang, Can Tho
Climate : Tropical Monsoon
Terrain: Varies from mountainous to costal delta

DEMOGRAPHIC OVERVIEW
Population : 90 million
Language : Vietnamese, English, some French,
Chinese and other ethnic minority language.
Religion : Buddhism (approx. 50%), Catholicism(8%-
10%), Cao Dai(1.5 %-3%), Protestantism(0.5%-2%),
Hoa Hao(1.5%-4%), Islam(0.1%) and other Animist
Religion
Literacy: 94%
Population BPL : 10.60%
Labour Force : 46.21 million
Unemployment : 2.90%

ECONOMIC OVERVIEW
Monetary Units : 1 dong=100 Xu, 1 dong = 10 Hao
1VND-0.00234760096154 INR
GNI per Capita : $1010
GDP : 5.76%
Per Capita Income : $1168
Inflation Rate : 12.79%




EXPORTS IMPORTS
TOTAL $72.03 BILLION $84.3 BILLION
GOODS Clothes, Shoes,
Marine Products,
Crude Oil,
Electronics,
Wooden Products,
Rice, Machinery
Machinery &
Equipments,
Petroleum
Products, Steel
Products, Raw
material for the
clothing & shoe
industries, Plastic,
Automobiles,

PARTNERS USA 20%, Japan
10.7%, China
9.8%, South
Korea 4.3%
China 23.8%,
South Korea
11.6%, Japan
10.8%, Taiwan
8.4%, Thailand
6.7%, Singapore
4.9%
POLITICAL OVERVIEW
Type: Single Party Constitutional Republic (Communist
Party)
Independence: 2
nd
Sep, 1945
New Constitution: 15
th
Apr, 1992
Branches:
Executive-President & Prime Minister
Legislative-National Assembly
Judicial-Supreme Peoples Court, Prosecutorial Supreme
Peoples Procuracy
Administrative Subdivisions :58 Provinces, 5
municipalities
Political Party: Communist Party of Vietnam


MERGER AND ACQUISITION
From 1999 to 2010, Vietnamese companies have
been involved as either an acquiror or acquired
company in 1320 mergers and acquisitions with a
total know value of 7.7 bil. USD.
The number of deals that happened in 2010 has
been 417 which is an increase of 27% compared to
2009.
The value of deals in 2010 was 2.1 bil. USD which
is an increase of 64% compared to the year before.
The Mergers & Acquisitions in Vietnam faced many
obstacles, lowering the rate of success of the
transaction.
RELATIONSHIP BETWEEN INDIA & VIETNAM
In 1992, India and Vietnam established extensive economic ties,
including oil exploration, agriculture and manufacturing.
The relations between the two countries, especially defence ties,
benefited extensively from India's Look East policy.
Indias relations with Vietnam are marked by growing economic
and commercial engagement, especially in recent years.
The two-way trade grew more than ten times since 2000 to reach
$2.75 billion in 2010 (Indian exports were $1.76 billion, while
Vietnams exports were 991 million).
It is expected to exceed $3 billion in 2011
Vietnam is an important regional partner in South-East Asia for
India and both closely cooperate in various regional forums such
as Asean, East Asia Summit, Mekong Ganga Cooperation and
Asia Europe Meeting (ASEM) besides the United Nations (UN)
and World Trade Organization (WTO).



DEVELOPMENT OF BILATERAL AND
COMMERCIAL TIES
India granted the "Most Favoured Nation" status to Vietnam in
1975

Both nations signed a bilateral trade agreement in 1978 and
the Bilateral Investment Promotion and Protection Agreement
(BIPPA) on March 8, 1997.

The Indo-Vietnam Joint Business Council has worked to
promote trade and investment since 1993.
In 2003, both nations promulgated a Joint Declaration on
Comprehensive Cooperation when the General Secretary of
the Communist Party of Vietnam Nong Duc Manh visited India
and both nations are negotiating a free trade agreement.
In 2007, a fresh joint declaration was issued during the state
visit of the Prime Minister of Vietnam Nguyen Tan Dung.

DEVELOPMENT OF BILATERAL AND
COMMERCIAL TIES (CONT)
Bilateral trade has increased rapidly since the
liberalization of the economies of both Vietnam and
India.

India is the 13th-largest exporter to Vietnam, with
exports have grown steadily from USD 11.5 million in
1985-86 to USD 395.68 million by 2003.

Vietnam's exports to India rose to USD 180 million,
including agricultural products, handicrafts, textiles,
electronics and other goods.

Between 2001 and 2006, the volume of bilateral trade
expanded at 20-30% per annum to reach USD 1 billion
by.
India and Vietnam have also expanded cooperation
in information technology, education and collaboration of
the respective national space

MAJOR FUEL COMPANIES
Vietnam National Petroleum Corporation
PetroVietnam Oil Corporation
Petrolimex petroleum region II
PetroVietnam Gas Corporation
Petec Trading and Investment Corporation
Recorded a growth rate of 6.23 percent in 2008
despite of global recession.

India ranked 27th among the 76 countries investing in
Vietnam.

Major scope to build road and rail infrastructure and
ports.

Indian large groups such as TATA, Reliance, Essar, and
ONGC have invested in many large projects in Vietnam

INVESTMENT
Scope for investment in:
steel
aluminum
auto spares
accessories
electrical goods
footwear
food processing
project exports and
tourism sectors.

Total investment made by India was $ 195 billion in 30 projects.

Major Indian medicine producers have registered for the sales of
their products in the Vietnamese market.

More than 30 Indian pharmaceutical companies are operating
effectively in Vietnam .
RULES & REGULATIONS
Types of direct investment in Vietnam
The Investment Law notes the following types of direct investment: investment to
establish 100% foreign businesses or joint-ventures between domestic and foreign
investors; investment under BCC, BOT, BTO, BT contracts; investment for business
development; and capital contribution, share buying in economic organizations,
integrating and purchasing and indirect investments.

Procedures for investors to apply for investment licenses
Investment projects and procedures are classified into three types:
Investment registration projects
Investment certification projects
Investment investigation projects

Organizations responsible for issuance of investment licenses
Projects of which the Prime Minister approves investment policies
Provincial Peoples Committees carry out investment registration and issue certificates of
investment
Projects of which certificates of investment are issued by management units of industrial
zones, export processing zones, high technology zones, economic zones





RULES AND REGULATION(CONT..)
Organizations receiving files of investment projects
Departments of Planning and Investment receive project files in cases whereby provincial
Peoples Committees have issued certificates of investment.

Management Units of industrial zones, export-processing zones, high technology zones,
economic zones receive project files in cases whereby certificates of investment are
issued in the areas of localities.

For investment projects in the areas not under administration management of provinces,
central cities or are carried out in many provinces or central cities, their files are
submitted to Departments of Planning and Investment where investors place or intend to
place their head offices or branches or operating offices to perform such investment
projects.

Documents required in a registration file for certificates of
investment
Investment registration form;
Contract of business cooperation in cases of investment under a contract of business
cooperation; and

Report on financial capacity of the investor (prepared by and under responsibility of the
investor).


RULES AND REGULATION(CONT)
For investment projects attached to the establishment of economic
organizations, besides the above set forth documents, investors shall
submit the following:
A file for business registration corresponding to each kind of enterprise
under the Enterprise Law and relevant laws; and

Joint-venture contract in cases of investment to establish a joint-venture
business organization between domestic and foreign investors.

Areas and locations received investment incentives
The Investment Law issued in 2005 encourages investments in producing
new materials, new energies, biotechnology, and computer science; raising
and processing agricultural, forestry, and sea products; using high
technology, modern technology, protecting the ecologic environment, and
investing in developmental research; building and developing the following
both directly and their associated infrastructure: important industrial
projects, traditional vocations, education, health, cultural and sport
development, and labor-intensive projects. It also encourages investments
in areas with socio-economic difficulties, industrial zones, export processing
zones, high-technology zones, economic zones, and vocational villages.