1.

Overview of Canon and Canon Vietnam:

Canon is a global leader in photographic and digital imaging solutions. Canon Singapore
Pte. Ltd. is the headquarters for South & Southeast Asia driving sales, marketing and
service strategies. Besides handling the domestic market, the company leads 18 other
countries including subsidiaries in India, Malaysia, Thailand and Vietnam. The parent
company Canon Inc has a global network of close to 300 companies and employs close to
200,000 people worldwide. It is dedicated to the advancement in technology and
innovation and commits about 10% of its total revenue each year to R&D. Canon is
consistently one of the top few companies to earn the most number of patents over the
last 19 years. Canon is top 100 Best Global Brand Company.
Canon Vietnam Co., Ltd. started operating in Vietnam in 2002 when its main products
were inkjet printers and photo scanners. After ten years of development, the company has
grown from strength to strength. Currently, Canon has more than 24,000 workers in four
factories: Thang Long, Que Vo, Tien Son and Pho Noi.

Headquarters - Thang Long Factory (Ha Noi) Land area: 200,000 m

2
Building
area: 87,000 m
2

Que Vo Factory (Bac Ninh) Land area: 200,000 m

2
Building area: 120,000 m
2

Tien Son Factory (Bac Ninh) Land area: 200,000 m

2
Building area: 51,000 m
2
Pho Yen Factory Land area: 200.000 m2 Building area: 110.000 m2
Besides its business activities, Canon Vietnam has become a strong presence in the
community via projects that highlight issues ranging from education to the environment
and offer relief to flood and storm victims. Through these activities, Canon Vietnam aims
to contribute to the development of Vietnam's prosperity.
2. Thang Long Factory
Location: Ha Noi
Start of production: 2/2007
Land area: 200.000 m2
Business activities and products: production of inkjet printers and photo scanners
Production capacity: 8.400.000 units/year
Number of employees: 5500
Canon Hi-Tech (Thailand) Ltd. No. 2 Plant
Location: Naklang, Soong nuen, Nakhonratchasima 30380, Thailand
Start of production: 10/2011
Land area: 250.000 m2
Business activities and products: Production of inkjet printer products and related
parts
Production capacity: 5.500.000 units/year
Number of empoyees: 5000

In recent years, the inkjet printer market has displayed steady growth worldwide.
Additionally, increasing demand expected in the future has created a pressing need for
Canon to expand its production capacity for inkjet printer products. Vietnams market
was enjoying remarkable growth, Canon was seeing more progressive development in the
next few years fueled by the countrys fast growing development.
The three printer factories in Vietnam accounted for 50 percent of Canons total
production globally.
3. The main reasons why japan chooses to invest in Vietnam:
31.5% of Japanese IT enterprises choosing to outsource to Vietnam while this
statistics present 20.6% and 16.7% in India and China because Vietnam had the
low cost human resources and growing transparency of economy. Economics
Vietnam has an average growth rate at about 5.4 percent a year (According to
WB) and has been very successful in attracting foreign direct investment,
sustaining FDI level around USD 10-11 billion a year over the last five years.

Vietnam has the young population. It is certified by Forbes that work force of
Vietnam will jump to 65 million in the next 20 years. Moreover, it is estimated
that the cost to hire workers in Vietnam is less than 60 percent of what it costs in
China

Preferential tax treatments of Vietnam create a momentum to promote MNCs in
IT industry. According to Vietnam Ministry of Finance, newly established
software enterprises in Vietnam (both local and foreign invested) will generally
be entitled to a 10% reduced tax rate for 15 years (receiving a four year
exemption commencing from the first profit making year, and 50% CIT reduction
for the subsequent nine years). In addition, software products and software related
services will receive a zero VAT rate and be free from export tax. For the purpose
of encouraging Research and development (R&D) in IT industry, The Ministry of
Finance also states that enterprises investing 25% or more of their revenue in
R&D investment projects will be entitled to a five-year import duty exemption.
Any import of materials supporting R&D activities will also be free from tax.

Vietnams stable politics has laid the cornerstone for the tremendous longterm
growth of Vietnam economy, which has been the trump card in attracting
foreigners to invest in. Currently, Vietnam is a Socialist Republic country with a
one-party system led by the Communist Party. Vietnam sustains a unitary
government and has centralized control over the state, military, and media.
Affirmed By communist party Vietnam, there has been no sign of any possible
change in power in the medium term. By virtue of such consistency as one-party
state, together with the stable mechanisms, Vietnam ranks on top of the political
stability countries worldwide ( According to Global Peace Index Report
undertaken by Institute for Economics and Peace, Vietnam ranks at 41th in the
world on global peace in 2013 China and India only hold the 101th and 141th
position respectively)

There has been a growing in importance of IT from Vietnamese youths
perspective in recent years. Technological products paly an important role in
normal life of young people. The number of applicants for IT universities is
rising, which is a signal to reveal the perception and interest of Vietnamese about
IT industry.
Reasons for building factories in Bac Ninh and Hung Yen:
These provinces provide huge land capital and low cost labour.
They have many FDI attraction policies for MNCs (Investment insurance, Tax
preferences, Preferences on land use,..)