Vietnam

Key Facts and Economic Indicators

Currency: Dong (VND)

Population: 94,348,835 (July 2015 est.)
Budget -revenues: $39.61 billion
Expenditures: $47.39 billion (2015 est.)
Inflation Rate (Consumer Price): 0.6% (2015 est.)
GDP (Real Growth rate): 6.7% (2015 est.)
Investment (Gross fixed): investment in fixed
capital: 24.4%
Tax and other revenues: 19.9% of GDP (2015 est.)
Industrial Production Growth Rate: 7.5% (2015
est.)

Total Exports: $158.7 billion (2015 est.)

Export Commodities - clothes, shoes, electronics,
seafood, crude oil, rice, coffee, wooden products,
machinery
Export partners - US 20%, China 10.4%, Japan 10.3%,
South Korea 5% (2014)
Import Commodities: machinery and equipment,
petroleum products, steel products, raw
materials for the clothing and shoe industries,
electronics, plastics, automobiles
Import Partners: China 30.4%, South Korea 15%, Japan
8.9%, Thailand 4.9%, Singapore 4.7%, US 4.4%

Source: Central Intelligence Agency (CIA) World fact Book

Vietnamese Initiatives to Foster Investment & Trade
Corporate Income Tax Rate (%)

20

Capital Gains Tax Rate (%)

20

Branch Tax Rate (%)

20

Withholding Tax (%)

Dividends

Interest

Royalties

10

Branch Remittance Tax

Net Operating Losses (Years)

Carryback

Incentive type
Incentive tax rates

Provisions
Preferential tax rates of 10% or 17% may be available to eligible projects in industries or
locations that are encouraged by the government.
Some enterprises are exempt from corporate income tax for a maximum period of four
years and to a 50% reduction of the amount of corporate income tax payable for a maximum
period of nine subsequent years under decisions of the prime minister
Vietnam has signed tax treaties with several countries that provide relief from double taxation

Tax exemptions and

tax reductions for
newly established
Foreign tax relief

Source: The 2016 worldwide corporate tax guide

INDIA- VIETNAM BILATERAL TRADE

Source: Department of Commerce, Ministry

of Commerce & Industry, GoI

10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
EXPORT

%Growth

IMPORT

%Growth

-2,000.00
2011-2012

2012-2013

2013-2014

2014-2015

TOTAL
TRADE

%Growth

2015-2016

FDI Inflows from Vietnam into India

Cumulative FDI Equity Inflows from all countries received in India during April 2000- March 2016 were US$ 288.5 Billion.

Share of Vietnam in FDI Equity Inflows from April 2000 to Aug 2012:
o Total FDI Inflows from Vietnam: US$ 0.05 million
o Percentage share of total FDI inflows: 0.00%
o Rank: Vietnam ranks 115th
Source: DIPP, Ministry of Commerce & Industry, GoI
Potential Sectors for Trade & Investments Between India & Vietnam

Electricity
High-Value Manufacturing
Electrical Part Production
Steel Manufacturing
High Technology

Source: DIPP, Ministry of Commerce & Industry, GoI

Major Indian Companies in Vietnam

NIIT Ltd

Ishan International Pvt. Ltd

ONGC Videsh Ltd

Nagarjuna Ltd

Venkateswara Hatcheries Pvt Ltd

Essar Exploration and Production Ltd

Reliance Industries Ltd

Entertainment Complex Development

Seaport Construction
Hotel Development
Transport
Urban Development

Gimpex Group
TATA Group
Philips Carbon
Glenmark Pharmaceuticals Ltd.
Bank of India
J K Tyres
McLeod Russell

Bilateral Agreements between India & Vietnam

Agreements/MoUs signed during various visits in the period October 2011 to January 2013
Mou between Vietnam and Ministry of Micro, Small and Medium Enterprises Ministry, Government of India
Specifically, MoUs and agreements for Cultural Exchange, Cooperation in Science & Technology, in Agriculture and
Fisheries, in Nuclear Energy and Educational Exchange among others are in place. The two sides have also signed the
BIPPA, DTAA and Consular Agreement.
During the visit of President Sang, six agreements and MoUs were signed. These include:

Extradition Treaty, MoU on India-Viet Nam Friendship Year 2012,

Agreement on Cooperation between Petro-Vietnam and ONGC Videsh Limited,

Work Plan for the years 2011-2013 in the fields of agricultural and fishery research and education,

Cultural Exchange Program for the years 2011-2014 and the

Protocol on cultural activities in the Vietnam India Friendship Year, 2012
Political Scenario of Vietnam
Chief of state: President Tran Dai QUANG (since 2
April 2016);
Head of government: Prime Minister: Prime Minister
Nguyen Xuan PHUC (since 7 April 2016);

Source: CIA country fact sheet

Prepared By- FICCI

ASEAN Team

Government Type: Communist state

Legal system: civil law system; note - the civil code of
2005 reflects a European style civil law
Governance structure: Supreme People's Court (chief
justice is elected by the National Assembly on the
recommendation of the president for a five-year term)