Vietnam Investment Environment and ICT Market Report up to 2010 and beyond07 Apr 2011 • by Natalie Aster
The Vietnam's Law on Foreign Investment was passed in 1987 and was one of the first laws after the Renewal Process starting from 1986 in Vietnam. The Law is a foundation for the introduction and development of Foreign Investment sectors in Vietnam during the past three decades.
The report “Vietnam Investment Environment and ICT Market Report up to 2010 and beyond” by NNMT Advisor details on key macroeconomic indicators, trends of foreign investment in Vietnam, taxation issues, banking system, private equity, and corruption. The report also provides details on legal basis, forms of foreign investment, merger and acquisition, regulation and licensing in telecommunications, privatization and liberalization of the telecom market, and the new telecommunications law. It indicates deep analysis on major challenges and opportunities as well as every single aspect of the industry: from wireless communication including mobile communications and satellite communications to wireline communications consisting of fixed-line telephony, VoIP, submarine cables, Internet and capacity services and to IT-relateds such as Internet Data Center, software, hardware, and digital contents. Profiles of major companies in the industry are also provided for further preference.
First, the foreign investment flow has increased and contributed effectively to the capital pool for the socio-economic development of Vietnam. Vietnam has observed about 9,500 foreign investment projects with total registered capital of $98 billion and total implemented capital of $40 billion. Foreign investments have contributed as much as 18% of the total investment capital from 2001 to the present time. Between 2001 and 2005, Vietnam has attracted $ 18.5 billion investment. There have been more than 100 top companies in the 500 biggest companies in the world representing for investors from 82 countries and territories, but most have come from Asia. Japan is the foreign country who has the biggest implemented capital in Vietnam. Foreign investors who lead the investment in Vietnam have come from Korea, Singapore, Taiwan, Japan, Hong Kong, Malaysia, US, the Netherlands, and France.
Second, the growth of foreign investment in Vietnam is accompanied by the renewal process and socioeconomic development of the country during the past three decades. Total export values of FDI enterprises has been always increasing and contributing more than 55% of the entire economy's export values. In addition, FDI enterprises generate about 16% GDP and about 1.5 million direct labors and many more indirect labors.
Third, foreign investment has motivated the economy transformation and labor restructure to more modern ones. FDI enterprises is truly a driven force of the industrialization progress by contributing up to 37% total domestic industrial manufacturing, creating new industries, and improving performance of several major industries such as oil and gas, IT, biotechnology, car manufacturing, steel and cement.
Vietnam Investment Environment and ICT Market Report up to 2010 and beyond
Published: December 2010
Price: US$ 2,495.00
Report Sample Abstract
Foreign investment in services industries has also enabled the fast growth in telecommunications, hospitality, and financial services. Foreign investment has created a totally new look for major economic zones such as Ho Chi Minh City, Ha Noi, Ba Ria - Vung Tau, Vinh Phuc, Dong Nai, Binh Duong, Hai Phong, and Hai Duong.
We are confident that the industry will be consolidated in a very near future. There is recent regulation development which allows foreign investors to participate up to 30% equity in a Vietnamese operator. This means that there are more choices for oversea investors in addition to the current BCC and Joint Venture with 49% capping.
The following figures provide basic statistics about the mobile communication sector such as subscribers, market share, and ARPU.
The planned Asia Pacific Gateway (APG) submarine cable will be ready for services in 2011. APG will land in Da Nang and has VNPT as an MOU party and would probably have more Vietnamese players if such players can work out permits from the government to their multimillion-dollar investments.
As part of Vietnam's commitments to enter WTO, foreign carriers can have access to cable landing stations and sell bandwidth to local ISPs. This is a major development as there are more international POPs to be established in Vietnam since the market is no longer closed.
More information can be found in the report “Vietnam Investment Environment and ICT Market Report up to 2010 and beyond” by NNMT Advisor
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