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In recent years, Viet Nam’s economy has benefited from its Government’s open-door policy. With a stable political environment and its economic potential, Viet Nam is an attractive destination for foreign investors. | VIET NAM A GUIDE FOR BUSINESS AND INVESTMENT NOVEMBER 2006 connectedthinking PriceWerhous oopers @ FOREWORD In recent years Viet Nam s economy has benefited from its Government s open-door policy. With a stable political environment and its economic potential Viet Nam is an attractive destination for foreign investors. The Vietnamese Government has been endeavouring to create a favorable investment environment by continuing to revise Viet Nam s legal system and introducing important incentives for foreign investors. This book is divided into seven sections to provide foreign investors with an overview of Viet Nam including its social economic and investment environment. The purpose of this book is not to provide a detailed analysis of Viet Nam s economy or its foreign investment formalities but to give a general introduction and supply the necessary information to foreign investors who are looking at potential investment opportunities in the country. We believe that this will be a helpful guidebook for foreign investors in Viet Nam. 1 PwCMATeMOUsEQdPERS @ TABLE OF CONTENTS FOREWORD.1 PART I. VIET NAM COUNTRY AND PEOPLE.3 1. Geography.3 2. Population.3 3. NATURAL RESOURCES.3 4. Political Structure.4 5. INTERNATIONAL RELATIONS.5 6. Infrastructure.5 7. Energy.6 8. TELECOMMUNICATIONS.8 PART II. THE ECONOMY.8 1. Overview.8 2. Principal economic sectors.9 3. External Trade.11 4. Official Development Assistance ODA .12 5. Foreign Direct Investment FDI in Viet Nam.13 6. state-owned enterprises equitisation process.15 7_Ma or economic objectives of 2006-201 0.16 PART III. BUSINESS AND FOREIGN INVESTMENT ENVIRONMENT.17 1. An Overview of the Legal Framework.17 3. Investment Guarantees.18 4. Investment sectors and regions entitled to Incentives.19 5. Investment sectors subject to Conditions.20 6. Basic Forms of Enterprises and Forms of Direct Investment.20 7. Other Facilities for Business and Investment in Viet Nam.23 8. Tax and tax incentives applicable to foreign direct .