PHÂN TÍCH THỊ TRƯỜNG – đầu tư TRÔNG CAO SU tại CAMPUCHIAe

PHÂN TÍCH THỊ TRƯỜNG – ĐẦU TƯ TRƠNG CAO SU TẠI CAMPUCHIA CONTENT After researching and studying International Business Management (IBM) lectured by Dr Larry R Williams – one of the top professors in the U.S, I would like to present my individual assignments as follows: 1/ The country mentioned through entire my assignment is Cambodia (The Kingdom of Cambodia) Cambodia is located in the southwest Indochinese peninsula, bordered by Thailand to the northwest (2.100 km), Laos to the northeast (492 km), Vietnam to the east (1.137km), and the Gulf of Thailand to the southwest (400 km) Cambodia's landscape is characterized by a low-lying central plain that is surrounded by uplands and low mountains and includes the Tonle Sap (Great Lake) and the upper reaches of the Mekong River delta .Rivers cluster tightly in three main basins (Tonle Thom, Tonle Sap and the Gulf of Thailand) a Cooperation in the fields of economy, trade, culture: Over the past 45 years, since Viet Nam and Cambodia officially established their diplomatic ties, the two countries’ friendship, cooperation and mutual assistance have been unceasingly strengthened and comprehensively developed, providing both many laudable achievements The results can be attributed to the cooperative mechanisms that have been formed and played an important role in boosting bilateral ties along with senior leaders’ political resolve The profound mechanism needed referring is the Joint Committee on Economic, Cultural, Scientific and Technological Cooperation in April 1994 Up to now, the Viet Nam-Cambodia Joint Committee has conducted more than 10 sessions At each session, both sides reviewed, evaluated the implementation of cooperation in all fields between the two countries, difficulties needing to be addressed, defined orientations, specific measures and prioritized areas for bilateral cooperation for the years to come Success of the sessions has helped rapidly develop the bilateral relations in all fields especially trade and investment Two-way trade turnover between two countries is growing rapidly, average of 40% per year (2006: $950 million, in 2007: $1.181 billion, in 2008: $1.7 billion) Both sides are targeting to raise bilateral trade to billion USD over the next five years The two countries are also interested in promoting cooperation in the fields which the each sides has potential advantages such as education and training, energy-electricity, health, transportation, etc Besides bilateral relations, the two sides also boost cooperation in the framework of ASEAN, in the framework of regional and international cooperation such the Mekong River Commission (MRC) Mekong Subregion (GMS), \ East- West corridor project (WEC), the economic cooperation strategy Ayeyawady-Chao PhrayaMekong river (ACMECS), Cambodia-Laos-Myanmar-Vietnam (CLMV), CambodiaLaos-Vietnam Triangle b The advantage to invest in Cambodia: Cambodia has maintained political neutrality, ideas of impermanent cooperation, avoided invasion or interference in the internal affairs of other countries Cambodia officially joined ASEAN in April 1999, joined the World Trade Organization (WTO) in September 2003 (the 148 th member), participated ASEM Summit ASEM (10/2004 ) in Hanoi Cambodia is also full-right member and ranked at 30th of the Asian Development Bank (ADB) Not only that, Cambodia is a member of the ASEAN Free Trade Area (AFTA) and the ASEAN Investment Area (AIA) - the organization allowing investors to dig into the broader market According to Prime Minister Hun Sen, the total foreign investment in Cambodia is increasing from $2.9 billion in 2010 to $ 3.7 billion in 2011 Particularly in 2011 Viet Nam has more than 112 investment projects in Cambodia with a total registered capital of nearly 2.4 billion USD clearly demonstrating investment relations between the two countries is very good As stipulated in the Investment Law, when investing in Cambodia, the enterprise will not be discriminated, not be nationalized, not limited the amount to investment, not be intervened in setting price, freely to flow cash back home and enjoy many incentives such as preferential tariffs (GSP) from many countries, especially the countries in the region the European Union (EU) With the real estate on the land, if the property is legal, the owners have the right for their ownership In addition, investors have all the rights related to the land exchange, lease, loan, conversion The statutory corporate income tax rate is 20%, significantly lower than the other ASEAN countries - The industry tax incentives (not tax-exempt) including: high-tech, export, tourism, infrastructure, energy, rural development, environmental protection - Tax holidays up to years - With the prioritized project, after the exemption period may be entitled to preferential tax rate of 9% - The investment areas are encouraged to be imported duty-free inputs - Loss transferred time up to years - Fast depreciation The prioritized areas of investment: The high-tech industry; industries creating more jobs; export-oriented industry; Tourism; processing industry; infrastructure and energy; Rural Development; Environmental Protection, and Investment in the Special Zone (SPZ) c The strength of invested products: Technology for the project implementation is the process of advanced manufacturing technology which is being effectively deployed in Vietnam In order to ensure the project’s effectiveness, investors invite experts from the Rubber research Institute in Vietnam and other research institutions to support and consult to build the best business plan in accordance with local soil, the technology has the following characteristics: + Technology at the advanced, uniform, modern level of mechanization, high automation; + Reasonable use, natural resources economy, productivity enhance, labor safety and human health security + Make sure to meet the sanitation conditions, to minimize the adverse impacts on the environment in accordance with Cambodian law + Annual expected revenue after investment: $ 36 million / year (revenue from rubber-tree arising from the 6th year of the project after taking all the saps; from the sale / export of timber after reclamation; from producing plastics and synthetic rubber -arising from operation; from sale of rubber wood - 31st when latex rubber trees are exhausted) The invested national and products’ limitation: With 23 direct investment projects in Cambodia, which has 21 rubber planting projects, total investment of more than VND 18,000 billion, Vietnam Rubber Group (VRG) representative confirmed that the room for potential investment opportunities in Cambodia is very large However, he showed that there are still many barriers to invest in Cambodia, especially the local labor force cannot meet the demand for the number as well as skill levels + According to VRG representative, sending the labor from Vietnam is taxed and the number of send labor is no more than 10% over the total number of workers needed In addition, raw materials prices are higher than those in Vietnam, pushing up investment costs than initially expected and the clearance at the border gate remains difficult + The machinery and equipment transportation cost from Vietnam to Cambodia is too expensive The transportation cost from India to Vietnam is about $ million but only from VN to Cambodia takes $ 2.5 million + The Cambodia's new policy can directly affect the Vietnamese businesses investment Therefore, to support Vietnamese enterprises, August 3rd,.2012, the Ministry of Planning and Investment coordinating with relevant ministries held a meeting with Vietnamese enterprises to pass some of the content related to Cambodia’s new policy in the field of industrial plants and minerals However, to ensure that the legitimate interests of investors as well as avoid the legal risk for the project, Foreign Investment Agency needs the proactive, positive actions from the Vietnamese business as follows: Firstly, the Vietnamese enterprises follow exactly a schedule and objectives specified in the certificate of foreign investment by the Ministry of Planning and Investment of Vietnam; contents specified in legal documents, permits the host country government to investors; when implementing projects Secondly, for industrial plant projects, in the context that Cambodia limit allocated land, Vietnamese investors need to actively review and scrutinize the procedures in accordance with the local law in order to ensure the legality of the project closely Thirdly, Vietnamese investors should collect and keep documents which are related to the operating costs of materials, goods and materials brought from Vietnam to Cambodia serving the project to ensure their rights Foreign Investment Agency also noted that in the course of project implementation, at request, enterprises should promptly report to the ministries and agencies to have supports Invested products / services: Growing rubber trees; production and sales of plastics and synthetic rubber a Vietnam investor: - Indochinese rubber Investment and development Company - Business Registration Certificate No 0311181334 by the Department of Planning and Investment in Ho Chi Minh City on 23/09/2001, to date 05/03 / 2012 b Foreign partner: + Name: Eastern Rubber Co., Ltd (Cambodia) + Transaction name: Eastern Rubber (Cambodia) Co., LTD + Headquarters address: N1N2, Steet 265, Tuk Ward, Look 3, Tuol KORK District, Phnom Penh, Cambodia + Project location: Snuol District, Kratie Province, Cambodia b Investment scale: + Plant 4868 hectares of rubber trees + Planned capacity: 9,000 tons of plastics and rubber in primary product / year c / Investment: $ 29,787,397 (twenty nine million, seven hundred and eighty-seven thousand three hundred and ninety-seven dollars) + Investment: To cultivate rubber and initial infrastructure investment in machinery and equipment is $ 22,500,000 (twenty two million five hundred thousand U.S dollars.) + Capital for operating expenses, working capital: During the first five years without harvesting latex is $ 7,287,397 (seven million two hundred and eighty-seven thousand three hundred and ninety-seven dollars) Invested projects in the 70 years from the date of issuing the certificate of foreign investment, the project is located in the temperate climate zone, less affected by the typhoon and abundant water The topography of this area is relatively flat basalt soil, similar to the geological conditions of Binh Phuoc Province and South-eastern provinces in Vietnam, is well suited to grow rubber trees In terms of traffic, this area is pretty closed to highway 76 connecting Highway 47 of Vietnam near the Vietnam-Cambodia border From the southern Binh Phuoc province, Vietnam it can easily reach to project location in Snuol district, Kratie province, Cambodia via Highway 13, Highway 74, cross the border Hoa Lu-Trapeang SRE which is one of the seven gates specified in the road transport agreement dated 01/6/1998 and Decree dated 10.05.2005 between India-Cambodia allows transport to go deep into the territory of the other, lowering transport costs, facilitating the development of economic exchanges and trade between the southeastern provinces of Vietnam and Cambodia So the rubber processing plant in locations convenient for transportation operations and raw material exports to Vietnam become convenient Up to May 7, 2012 there are 681 projects outward licensed with total investment capital reached $ 12.11 billion a The project outward invested by Vietnamese businesses largely concentrated in the mining sector with 94 projects, the registered capital of foreign investment reached $ 4.6 billion (38.4% total investment); following is the manufacturing and distribution sector, with projects, total investment capital was $ 1.87 billion; agriculture, forestry and fishery ranked third with 75 projects, total investment capital was more than $ 1.72 billion To date, Vietnamese enterprises have invested in 58 countries and territories Which, Laos ranked first with 218 projects, total investment reached over $ 3.6 billion, Cambodia ranked second with 114 projects, total investment reached over 2, $ billion; Venezuela ranks third with two projects, with a total investment of over $ 1.8 billion Accumulated realized capital financing Vietnam's foreign investment projects reached about 2.9 billion, or 24% of the total registered capital b / Vietnamese enterprises have invested mainly in industry and construction sector, with 10 investment projects with total registered investment capital of $ 407.1 million, representing 59.9% of the total registered capital, in which the mining sector is $ 326.3 million; services sector came in second with 31 projects with total registered investment capital of $ 189 million, accounting for 27.6% of total register capital Agriculture, forestry and fisheries accounted for 12.9% of the total registered capital of 88.57 million Figure: Vietnam's foreign investment structure \ a Investment structure by partners Vietnamese businesses registered investment to 17 countries and territories around the world The investments focused in Peru with project, total investment capital is $ 323.6 million, representing 47.3% of total abroad investment capital Cambodia is ranked second with projects, total registered capital reached 89.1 million, up 13% The third place is Laos with 10 investment projects, the total registered capital of Vietnam is 89 million U.S dollars, accounting for 13% Figure: Structure of investment by partners Unit: USD million In Cambodia, by the end of September 2012, Vietnam has 120 investment projects in Cambodia which has been granted a certificate of a valid foreign investment with total registered investment capital of the Philippines reached $ 2.64 billion Total realized capital accumulated so far reached $ 763.43 million; total revenue of $ 546.92 million and profit of $ 108.25 million To ensure the rubber plant, fertilizer, raw materials for production and business as well as save the cost of inputs, the company will actively seek, select a manufacturer and supplier of plant and materials at the implemented project local and the Cambodian territory on the basis of review and evaluation of quality, price and availability of the production and supply In the process, depending on the operational needs and on the basis of assessment of the quality and prices of raw materials in Vietnam: Firstly, Vietnamese investors are still actively looking for investment overseas market, in spite of the difficulties caused by the global financial crisis and inflation or deflation in the country In the first seven months of the year 46 projects for foreign direct investment has been allocated 10 Secondly, Vietnamese enterprises have invested in the familiar markets such as Laos, Cambodia as well as expanded investment in a number of potential markets such as: Peru, Germany, the United States and British, Virgin Island Thirdly, foreign investment projects using the State's capital have better compliance with the provisions of state law on the use of capital to investment abroad, focus more on the business, and avoid wasting investment and state capital loss Fourthly, outward activities help to expand the market for products in foreign markets, gradually improve Vietnam’s branding and competitiveness on the international market The implementation of the outward investment also helps Vietnamese enterprises significantly to reduce the cost of transportation, storage, insurance, besides they can take advantage of the investment incentives for foreign investors Clearly, the projects which are put into operation and operated in foreign countries has an important role in improving the standing of the Vietnam national oil and gas Group in the field of the world's energy industry Vietnam Rubber Industry Group has added hundreds of thousands of hectares of raw materials for the rubber industry in Laos and Cambodia Viettel has become one of the leading telecommunications service provider in Laos and Cambodia Fifthly, the coordination between investors and state authorities have been made better Through researching and studying International Business Management I would like to present individual assignments All comments and suggestions to make a better assignment are welcome 11 ... Vietnam In order to ensure the project’s effectiveness, investors invite experts from the Rubber research Institute in Vietnam and other research institutions to support and consult to build the... framework of ASEAN, in the framework of regional and international cooperation such the Mekong River Commission (MRC) Mekong Subregion (GMS), East- West corridor project (WEC), the economic cooperation... needing to be addressed, defined orientations, specific measures and prioritized areas for bilateral cooperation for the years to come Success of the sessions has helped rapidly develop the bilateral