Access Asia Magazine Feb/Mar 2019: Doing Business in Vietnam by AustCham Singapore

DOING BUSINESS IN VIETNAM 2019

FEB/MAR

CONNECTING BUSINESSES ACROSS ASIA AND BEYOND anz.com/institutional

A MESSAGE TO OUR

MEMBERS Greetings Members. I am delighted to report another fabulous night at our AustCham - ANZ Australia Day Ball. This issue of Access Asia will serve as memorabilia for the members and guests who came along (and who appeared to have a lot of trouble leaving), and should serve to remind those of you who missed it to book early for next year. Australia Day coincides with Chinese New Year in 2020, so it will be another spectacular event. Of course, this assumes that 26th January continues to be observed as the most appropriate date to celebrate Australian life. Is the arrival of the First Fleet an appropriate date to choose? Although there are worthy alternatives, if you are considering your own position in the debate, the six part series on the First Fleet and the ideals of Governor Arthur Phillip by Trent Dalton & Eric Lobbecke, published in The Australian in January last year is a “must” to read. As a strong anti-slavery advocate with an ideal to convert convicts to citizens, this Governor had a non-conformist, egalitarian vision for the colony in New Holland. Described by the authors as “The most ambitious social experiment ever”. Back to news in AustCham – Singapore. Due to other commitments, I have decided to step down as President of your Chamber. The positive momentum we have experienced over the past year and a half will be carried forward by Adam Lyle. He has been your VP since 2014 and I am grateful that Adam has stepped into the role. I am stepping down as President of AustCham Singapore in the knowledge that the Chamber is back in great shape, with solid member and sponsor support. •

We have bounced back from a membership low of 575 in Dec 2017 to a record high, of 754.

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Budget performance is on track.

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Event attendance has returned to a healthy level, as has sponsor participation.

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Access Asia has been re-established as an authoritative regional publication.

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The AustCham board’s own renewal process is on track with Leonie Muldoon from Austrade, Chris Coburn from Treasury Wines and Amber Williams from

NS BlueScope being our most recent appointments.

To our Patron Members ANZ and JCU, thank you for maintaining your valuable relationship with AustCham. To His Excellency, Bruce Gosper and the DFAT and Austrade teams, thank you for your on-going partnership. To our Gold Corporate members, whose corporate citizenship enables the Chamber to engage the broader spectrum of members in the Australian business community in Singapore, thank you. Thanks also to our event sponsors who, along with our Patron and Gold Corporate members enable your Chamber to maintain low cost membership fees as we try to the maximise participation of SMEs in the Chamber . The continued strength of your Chamber depends on our relevance – the greater the number and diversity of our members, the more revenue and support from sponsors, and the more services your not-for-profit Chamber can provide. Which, in turn, creates increased relevance. It’s a classic “Virtuous Cycle”. You can help to keep the arrow cycling upwards. If you missed the last promotional offer under our “Member Get Member” program, keep an eye open for the next one. On behalf of the Chamber, thanks go to Prerana Mehta, Austrade’s Senior Trade Commissioner who has returned to Australia. Prerana has been an energetic contributor on our Board, and a valued supporter of Australia’s businesses in Singapore. We all wish her well. Ian Cummin Past President

BOARD MEMBERS Adam Lyle

Andrew Brown

Teena Pisarev

John Dick

PRESIDENT Padang & Co.

VICE PRESIDENT Icon SOC Singapore

HONORARY TREASURER ANZ Banking Group Limited

HONORARY SECRETARY Dentons Rodyk

Chris Coburn

Treasury Wines

Ian Cummin BlueScope

Leonie Muldoon Austrade

Scott Speedie

Commonwealth Bank of Australia

Sean Straton UBS

Benjamin Tan

Qantas Airways

Fraser Thompson AlphaBeta

Ben Vella Telstra

Amber Williams NS BlueScope

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A MESSAGE FROM THE

EXECUTIVE DIRECTOR

Welcome to the first edition of Access Asia for 2019.

CONTENTS

It has been a big start to the year for us at AustCham, with our ANZ Australia Day Ball attracting close to 900 guests for a fun filled evening counting down to Australia Day in Singapore. We have some new activities planned for this year, from new events, to establishing industry and topic specific groups to facilitate better networking and peer to peer sharing. We’ll be publishing our event calendar for the year shortly so you can save the dates for our signature events like the President’s Lunch and Business Awards, Australia Fare and Xmas Drinks. We’ll also provide more details about our upcoming business briefings program for the year, with a focus on building capacity in your business and doing business around the region. In this edition of Access Asia, we are taking a closer look at Doing Business in Vietnam, with insights and stories from Australian companies who have successfully established themselves in the market. We will continue our Doing Business In series of magazines throughout the year, if you have a particular area of expertise in one of the countries around the region and would like to contribute an article please send us an email to info@austcham.org.sg We are hiring! Looking for two people to join our AustCham office team on a short-term contract basis (around 8 months) in the membership and event management roles, commencing around May and June of this year. If you have experience in these areas or would like to know more about the positions on offer contact us at hr@austcham.org.sg Being on our board, and especially in the position of President, is a huge investment of time and energy. On behalf of the AustCham executive team I'd like to thank Ian for the hard work he has done during his time as President. I would also like to join with Ian in welcoming Adam Lyle as new President. Looking forward to confirming to grow the chamber in 2019.

VIETNAM'S TELECOMS SECTOR THE AUSTRALIAN CONNECTION

UNLOCKING THE SECRETS OF VIETNAM FROM THE LION CITY

MANAGING ASEAN'S ECONOMIC POLICIES

VIETNAM - A FRUITFUL INVESTMENT DESTINATION FOR AUSTRALIAN - BASED BLUESCOPE

VIETNAM COMING OF AGE

DOING BUSINESS IN VIETNAM

UPCOMING EVENTS

OUT & ABOUT

THANK YOU

NEW MEMBERS

MEMBERSHIP CARD OFFERS

NEWSFLASH

Kate Baldock Executive Director

PLATINUM SPONSORS

SILVER SPONSORS

BRONZE SPONSORS

INSIGHT

DOING BUSINESS IN VIETNAM KENNETH M ATKINSON Executive Chairman Grant Thornton Vietnam

OVERVIEW Vietnam is a unique country providing extensive opportunities for those willing to spend time to understand the market. Although not without its problems, Vietnam’s economy continues to expand and modernise, and with the opening up of previously restricted industries and sectors to meet WTO commitments; opportunities continue to develop. Further growth is being stimulated through bi-lateral Free Trade Agreements (e.g. South Korea) and others such as the EU Vietnam Free Trade Agreement and the CPTPP. Vietnam has the third largest population in South East Asia (after Indonesia and Philippines) and is ranked 3rd in the world in terms of total population, of approx. 95 million. The rural population accounts for approximately 67% but is reducing gradually. Vietnam has a working population of over 47 million. FOREIGN DIRECT INVESTMENT In 2018, Vietnam celebrated 30 years of Foreign Direct Investment, and the country saw FDI disbursements hit a record level of US$ 19 billion with total FDI commitments hitting more than US$ 340 billion over the last 30 years and creating over 8.5 million jobs. Investment into Vietnam from other S.E.Asian countries stands at just over 21% of total FDI. Vietnam ranked 55 out of 137 countries in World Economic Forum‘s Global Competitiveness Index 2017-2018 edition, a 5-rank improvement from 2016-2017 report. In terms of credit rating, Vietnam is rated B1 with positive outlook by Moody’s, an improvement compared with last-year rating of B1 Stable. Fitch also raised Vietnam’s rating from BB- to BB with a stable outlook.

ECONOMY GDP growth has been exceptional averaging around 6 -7% p.a. over the last 20 years, and last year it hit an 11 year high at 7.08%. Exports hit a record level of US$ 245 billion, 70% of which were contributed by FDI companies, and there was also a record trade surplus of US$ 8 billion. GDP per capita has continued to improve steadily y-o-y since 2000. And passed US$ 2,587 an increase of US$ 198 compared to 2017. The actual GDP per capita in key cities such as Ho Chi Minh City and Hanoi are significantly higher than other regions and are widely quoted as over US$ 5000 per capita. The rate of inflation has been maintained at below 4% for the past several years and the currency has been relatively stable against the US Dollar. THE COUNTRY The capital of Vietnam is Hanoi, which lies in the north of the country. Other major cities include Ho Chi Minh City (often abbreviated to "HCMC" and also referred to as Saigon and the commercial capital of Vietnam), Dong Nai, Ba Ria – Vung Tau, Binh Duong in the South; Hai Phong, Quang Ninh and Hai Duong in the North, Hue, Da Nang, Quang Nam, Quang Ngai on the Central and South East Coast. Vietnam is still a communist country. The Constitution in general establishes the rights of the people under the leadership of the Communist Party. The power of the people is exercised through the National Assembly, at a central level (The National Assembly is elected by the people) and through People's Committees at a local level. LEGAL SYSTEM The Vietnamese legal system consists of a constitution, codes, laws, ordinances, decrees, decisions, circulars, directives and official letters. Although all have the force of law, only laws passed by the National Assembly are referred to as such. LANGUAGE Vietnamese is the country’s official language. Foreign languages such as English, French, Russian, Chinese, Japanese and German are also used to varying degrees. English, however, is by far the most widespread foreign language and is commonly used alongside Vietnamese in legal documents relevant to foreign trade and foreign direct investment. English is also featured on the websites of many businesses (both local and foreign-owned) and Government agencies.

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>> DOING BUSINESS IN VIETNAM PRIVATE SECTOR Vietnam has a developing private sector and the Government is starting to focus strongly on the growth of the private sector to encourage creativity and technical development. Currently there are over 500,000 private companies in Vietnam. FOREIGN TRADE The Country’s main exports are phones and spare parts, which surpassed US$ 50 billion in 2018 and followed by textiles and garments, footwear and agricultural products including rice, coffee, pepper and seafood products. Wood products are also a major export and expected to increase significantly with the signing of the CPTPP. Major imports include: Computers and electronics, machinery, telephones and spare parts, textiles and fabrics, iron and steel and petroleum products This highlights the fact that much of Vietnam's exports are the result of processing imported raw materials, which has led to a focus from the Government on higher value added investment. INTELLECTUAL PROPERTY Vietnam recognises the importance of protecting intellectual property rights (IPR), which include patents, trademarks and service marks, copyright and industrial designs. With the implementation of the Bilateral Trade Agreement provisions regarding IPR, Vietnam has made a commitment to protecting intellectual property. The Bilateral Trade Agreement's property rights chapter was modelled on the WTO Agreement on Trade- Related aspects of Intellectual Property. The National Office of Intellectual Property (NOIP) is the authority responsible for the registration of intellectual property. Foreign organisations and individuals who seek to register their intellectual ownership should file their applications through an authorised agent, who will transfer their applications to the NOIP. The Office of Copyright Protection under the Ministry of Culture, Sports and Tourism is responsible for the protection of copyrights. STOCK MARKET The Ho Chi Minh Securities Exchange (“Hose”) opened in 2000 and has over 140 listed companies traded on the exchange with a market cap of over US$ 125 billion. Vietnam also has an Unlisted Public Company Market (UPCoM), in Hanoi and as of November 2018 there were almost 800 unlisted public companies traded on this market. BANKING SYSTEM Vietnam’s banking system was divided into a two-tier structure in 1988 when the State Bank of Vietnam (SBV) assumed the regulatory and supervisory roles for the banking sector, with commercial activities shifting to credit institutions.

INSURANCE Vietnam’s liberalisation policy in the early 1990s opened the insurance industry up to foreign investment. Previously, the market was dominated by state-owned enterprises. Foreign invested enterprises can now operate insurance businesses as 100 percent foreignowned enterprises, joint ventures with local partners, branches or representative offices. If an investor chooses a 100 percent foreign owned or joint venue form, they must set these up as limited liability companies. The insurance industry has grown extensively over the past decade; with life and non-life premiums growing at a CAGR of 19.13 percent from 2006 to 2016. FOREIGN INVESTMENT The Law on Enterprises (LOE) was adopted by Vietnam’s National Assembly on 26 November 2014 and took effect on 1 July 2015. The Law provides four types of legal forms of corporation for business entities, comprising: Limited liability company (LLC); Joint-stock company (JSC); Sole proprietorship; Partnership and branches. A foreign entity may establish its presence in Vietnam as a representative office. Foreign investors are also permitted to purchase an interest in existing domestic enterprises, subject to ownership restrictions; this varies depending on the relevant industry sector. TAXATION Foreign investors are likely to be subject to the following common taxes: Corporate Income Tax (standard rate 20%); Value Added Tax (standard rate 10%); Personal Income Tax (graduated from 0-35% on worldwide income); Foreign Contractor tax (standard rate 10%) , Others (e.g. Special Sales Tax, Import and Export Duties, Natural Resources Tax, Environmental Protection Tax, Property Tax, etc.). PROFIT REPATRIATION Foreign investors are allowed to repatriate their profits either on annual basis or on termination of the investment in Vietnam, provided that they have profit based on the audited financial statements. The foreign investors or their investee companies at the foreign investors’ authorization are required to notify the local tax authorities the plan to repatriate profits at least 7 working days prior to the scheduled repatriation. The above is a general overview of Vietnam and foreign investment but the environment is subject to change on a regular basis in terms of laws and regulations and anyone seriously considering investment in Vietnam should consult professional advisers.

Four SOCBs dominate the domestic banking sector and currently account for around 45% of total banking system assets; however, the domination of these banks has been on a significant downward trend due to the strong growth of private banks. Foreign banks are allowed to open branches and 100% foreign owned entities. ACCESSASIA | WWW.AUSTCHAM.ORG.SG 7

VIETNAM'S TELECOMS SECTOR THE AUSTRALIAN CONNECTION MARK PROCTER Senior Account Manager, Carrier Sales Telstra

High rise buildings are interspersed with small restaurants and cafes serving the lunchtime crowds of IT professionals on Hanoi’s Duy Tan St. Now known as one of the hubs of Vietnam’s burgeoning ICT industry Duy Tan St and the surrounding area were rice fields only a few years ago. What many of the young Vietnamese surfing the internet on their smartphones over a “ca phe sua da” iced coffee probably don’t know is that an Australian company was responsible for building Vietnam’s early telecoms infrastructure and provides much of its international internet connectivity today. In 1987, Australia’s Overseas Telecommunications Commission, OTC, inked a 15 year contract with Vietnam’s government owned Post and Telecoms authority. The contract included replacing the Soviet era satellite communications system, building optical fibre rings linking the major cities and providing training for over 3000 telecoms engineers. OTC and Telecom merged in 1994 to create Telstra and at its peak in the late 90s over 70 Vietnamese and Australian staff worked in Telstra’s 3 offices overseeing a 300MAUD investment. The investment project successfully concluded in 2003. Telstra continued to participate in the local telecoms industry forming alliances with new operators Viettel and FPT Telecom to provide services to Australian and multinational companies setting up shop in Vietnam. In 2014 Telstra acquired regional infrastructure provider Pacnet giving it the largest subsea optical fibre in the region along with assets in China and other countries. Today Telstra has alliances with all the major Vietnam telcos and has several points of presence or POPs in the country allowing it to provide multinational companies operating in Vietnam with a wide range of services. Telstra’s subsea fibre and global infrastructure carries the internet traffic of Vietnam’s 130 million fixed and mobile users from regional hubs in Singapore and Hong Kong. The legacy of Telstra’s 30 years’ presence in Vietnam is strong. Many of today’s senior telco executives fondly recall their time at university or doing vocational training in Melbourne or Sydney. Telstra’s former local staff maintain a strong bond and still regularly get together around Tet or Lunar New Year. At a recent social event attended by Telstra’s South Asia regional executive Marjet Andriesse a former staff member Ms Hau recounted what a big impact working for an Australian company had had on her. She recalled her surprise the first time she was invited to Friday afternoon beers in the office boardroom with everyone from the Country Manager to the office cleaner and drivers joining in as equals. The egalitarian culture was a breath of fresh air to her. Twenty years later her affinity with Australian culture encouraged her to send her daughter to study accounting in Australia. Building on this legacy Telstra sees Vietnam as an important growth market in the region. Both Vietnam and Australia are signatories to CPTPP which will create new opportunities for Australian companies looking to develop new markets. With a population of 100 million and an annual GDP growth rate of over 7% for the past x years Vietnam has an emerging middle class hungry for Australia’s goods and services. Australia’s over 300,000 people of Vietnamese origin provide another strong cultural and business link between the two countries. Today’s connected business world demands fast and reliable connectivity wherever you are and Telstra is in a unique position to help you achieve this in Vietnam.

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INSIGHT

UNLOCKING THE SECRETS OF VIETNAM FROM THE LION CITY TEENA PISAREV CEO Icon SOC

LAYING THE FOUNDATION Singapore’s diverse landscape coupled with its world-class infrastructure and focus on global industry professionals makes it a prime location for growing Australian businesses. Icon Group (Icon), Australia’s largest dedicated provider of cancer care is a keynote example of successfully establishing business in this melting pot, and leveraging it as a regional hub for growth across the wider ASEAN region. Icon has a strong vision to bring the best cancer care possible to more people, closer to home. This commitment to increased cancer care saw Icon forge growth into Asia and embrace opportunities with its’ eastern neighbours. In 2016 Icon acquired Singapore Oncology Consultants (SOC), a four-practice day oncology business with a rich history of cancer care in the region. SOC is made up of some of Singapore’s most experienced and esteemed cancer specialists, with the founding doctors considered the forefathers of medical oncology in Singapore. Collectively, SOC doctors have over 250 years-experience treating cancer and haematology patients and have worked at some of the world’s leading cancer centres. Acquiring SOC provided an esteemed foundation for Icon’s growth in Singapore, guided by a long-standing team of expert doctors. Icon not only gained highly respected, practising clinicians with local knowledge, but SOC also became part of Icon's exceptional knowledge-sharing oncology ecosystem, benefitting their patients and staff alike to deliver an exceptional service. Since acquisition, Icon SOC has significantly grown their footprint to now have 12 clinicians across 7 clinics within Singapore and has recently introduced radiation oncology services. In Singapore we have established the perfect blend of deep Singaporean expertise with Icon’s holistic approach to cancer care. The result is a strong regional base that has really leveraged capability on both sides to enter the wider ASEAN market. While entering new markets come with challenges, our businesses have a single purpose – to deliver the best possible care. It is this commonality that has allowed for Icon to successfully adapt to Singapore’s healthcare system. Singapore provides a functional and adaptive location for Icon’s regional headquarters. With numerous daily flights across the region, business can be facilitated in a cost effective way, creating a successful and efficient model.

TRAVELLING ACROSS BORDERS Establishing itself as an iconic business in Singapore, the company set sail to neighbouring countries and has used the strong relationships established by their clinicians and business partners to enter the Vietnam healthcare industry. We are fortunate to have experienced doctors and staff who understand both the Singapore landscape and the surrounding regions. Our doctors have been providing outreach clinics to several South East Asian countries for over 10 years, and this depth of knowledge has allowed us to expand our footprint in places like Vietnam. Currently Vietnam’s healthcare system is under intense pressure. Hospital overcrowding is already a significant issue with facilities in Ho Chi Minh and Hanoi unable to serve both local and provincial patients. While the total budget for the health sector has increased spending on private healthcare grew 241% over the past decade - the Vietnamese healthcare system cannot keep up with the demand for medical services. According to the World Health Organization, there are only an average of 7 to 8 healthcare workers and 25 hospital beds for every 10,000 Vietnamese citizens. Icon intends to significantly address this lack of access. These agreements will see Icon build off our current commitment to cancer care in Vietnam via doctor-led satellite clinics. Our team is focused on identifying the healthcare challenges within Vietnam and leveraging our network of international experts, relationships and knowledge to implement an international standard of cancer care in Vietnam while building local capacity to strengthen the underlining healthcare system. We will do this via a combination of on-the-ground expertise alongside remote technical applications, including remote radiation therapy planning for cancer patients, and robust clinical training from our highly established Australian and Singaporean operations. Experts from Icon Group’s Australian and Singaporean businesses will be critical in supporting Vietnamese health providers to meet demand while building local capacity for the future. Further agreements in the Vietnamese private healthcare sector are on the horizon.

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>> UNLOCKING THE SECRETS OF THE LION CITY

NUTURING THE RIGHT RELATIONSHIPS For many businesses, breaking into the Asian market can be fraught with constant setbacks and an inability to successfully grow. Being able to sign these landmark agreements in Vietnam was a true milestone in Icon’s history, but it did not come without its hurdles.

With over 2,800 employees working together across the network, alongside partners, many of whom are peak international bodies, including the Union for International Cancer Control (UICC), Icon is uniquely placed to provide expert oncology treatments and cuttingedge techniques on a global scale, delivering care to people in need.

As with any country, there is differences in the way business is orchestrated. Icon’s venture into Vietnam came with understanding local policy and law, navigating language and interpretation, and learning new ways of negotiation and hospital procedures. Icon understood the importance of fostering relationships within the region and listening to well-established government bodies and local experts who have an intimate knowledge of the local landscape. These connections became the cornerstone of doing business in the region.

Icon Group CEO, Mark Middleton says, “Our Asian business is integral to delivering on our mission to provide the best possible care, to more people. With cancer rates in this region expected to increase by 70% over the next two decades, alongside overcrowded treatment facilities and stretched workforce capacity, the demand for cancer treatment access has never been more pressing.”

To achieve positive outcomes, it’s important to understand and respect the local environment you are coming in to. Icon’s success in entering Vietnam has been due to the relationships we have fostered and leaning on both locals and members within our organisation who have an extensive knowledge and understanding of the cultural climate. Several such important partnerships have been with Mr Bruce Gosper, High Commissioner to Singapore, Singapore’s Austrade, as well as Mr Craig Chittick, Australian Ambassador to Vietnam, and his team at the Australian Vietnam Consulate; all have been essential to understanding Vietnam business.

We have established a strong base in Singapore and cannot wait to make a difference in Vietnam and surrounding regions. As a Group, we are dedicated to reducing the devastating impact cancer has on individuals and their families; because everyone deserves access to the care they need. Icon Group is among the top ten healthcare companies in Australia and was formed via a number of business acquisitions, many of who have been pillars of the Australian healthcare community for decades. With an unparalleled track record, pioneers within the oncology space, and backed by international healthcare leaders, there is no stopping this iconic business from making a global difference.

We can’t thank our partners enough. They have helped us navigate finding the right people to make these agreements possible and have ensured successful conversations in the region. Connecting with government bodies within these emerging markets has been the key to our success and I would encourage all businesses looking to expand in the ASEAN region to do the same. MAKING A GLOBAL DIFFERENCE Icon Group is committed to making a significant impact to the growing global cancer burden, and this is reflected in each business move they make. With 27 cancer centres across Australia, one in New Zealand, several in various stages of development in China, as well as chemotherapy compounding and pharmacy management services, Icon Group is well positioned to deliver on their mission statement.

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VIETNAM - A FRUITFUL INVESTMENT DESTINATION FOR AUSTRALIA-BASED BLUESCOPE Two decades of operations in Vietnam gives the Australian-based group, BlueScope, a perfect track record of proven sustainable growth and a well-positioned standing in the market. DR. DANG THANH HUNG Vice President of Marketing NS Bluescope Vietnam

According to Bloomberg , Vietnam’s economic growth for the full year of 2018 was 7.1%, compared with the median estimate of 6.9% in a Bloomberg survey of 12 economists. “Manufacturing is a bright spot of the economy,” Nguyen Bich Lam, head of the government’s General Statistics Office, said at a briefing. Lam expects growth to remain strong in 2019 as free trade deals boost exports. Vietnam’s economic growth is being buoyed by robust domestic demand, and increases in exports, manufacturing and foreign investment. In particular, manufacturing rose 13% in January to December from a year earlier. Realized foreign direct investment rose 9% in 2018 from a year earlier. Exports increased13.8% in 2018 with surging sales of electronics goods. The government is taking advantage of the U.S.-China trade tensions to boost the nation’s profile as a manufacturing and export powerhouse, selling everything from shoes to smartphones. Trade accounts for about twice the nation’s gross domestic product - more than any country in Asia apart from Singapore. BlueScope, which has over a century’s worth of experience operating in the global market, with a network of more than 100 factories around the world, dropped its anchor in Vietnam in 1993 and had set a good example of business success in Vietnam. NS BlueScope Vietnam has supplied the Vietnamese market with premium coated steel brands – Colorbond®, Zincalume®, and galvanized steel solution Lysaght® – to feed into construction and commercial works throughout the country. In the consumer segment, the company’s pre-painted steel product, BlueScope Zacs,

A BlueScope Zacs Authorised Dealer. There are more than 130 Zacs stores across Vietnam, serving homeowners and local buildings.

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>> VIETNAM - A FRUITFUL INVESTMENT DESTINATION FOR AUSTRALIA - BASED BLUESCOPE has gained customer trust through an expansive authorised dealer system of more than 130 Zacs stores across the country. Since its first days of operation, NS BlueScope Vietnam has dedicated itself to spreading the group’s core value of sustainable business development, bringing practical benefits to customers and the wider community. The company’s products and services have left sustainable development footprints on a raft of industrial and commercial works throughout Vietnam. Its coated steel product Colorbond®, with reflective technology Thermatech®, helps reduce iron roofing temperatures, as well as lessen the impacts of urban heat islands that exacerbate the greenhouse effect. The products meet the US’ LEED (Leadership in Energy and Environmental Design) green building standards earmarked for sustainable buildings. Recognising the enormous benefits LEED standards could bring to customers and the community, NS BlueScope Vietnam joined hands with diverse business partners to encourage the use and supply of pre-feasibility solutions applied in the design and construction of industrial and commercial works featuring sustainable footprints. NS BlueScope Vietnam has leveraged its global expertise to help Vietnamese experts in the construction industry understand the practicalities of sustainable buildings across the world. They have been involved in bringing ideas together through joint field surveys and symposia, where there is cross-sharing of knowledge and experience. Through these efforts, the company wishes to promote the sustainable development trend amongst Vietnamese communities.

A female operator at NS BlueScope Vietnam's Phy My plant.

Launch of Roofing products in auspicious "Feng Shui" colours, based on local consumers insights.

NS BlueScope Vietnam has deployed a programme to boost energy efficiency in production at its factory in Phu My I Industrial Zone in the southern province of Ba Ria-Vung Tau. To date, the programme has helped cut down 3 million kg of CO2 emissions, equal to the volume emitted by around 1,200 cars in a year. The sustainable production requirements to minimize environmental impacts were set higher year by year amid growing production output figures. The company’s valued contributions to the community and sustainable business development made it the winner of the Sustainability Award at the Australian Business Awards 2018 hosted by the Australian Chamber of Commerce in Vietnam (AusCham) on March 28th 2018. The Award is a true testament to NS BlueScope Vietnam’s steadfast efforts over its 20 years of operation for sustainable development in business to benefit Vietnamese communities. “Our strength comes from doing what we deem the right thing and what is best for businesses and the community,” said Vo Minh Nhut, Country President, NS BlueScope Vietnam.

Lifting industry standards by providing training programs for Local Builder Partners on roof installation and safety.

In 2019, as part of its continuous commitment to the Vietnamese community, the Company plans to deliver 50 Zacs steel house to the underprivileged and implement the “BlueScope Experience Program” to benefit more than 200 enterprises. Sustainability will continue to be a key part of NS BlueScope Vietnam’s strategy in years to come. As NS BlueScope Vietnam looks to grow with Vietnam’s economic progress, it will always strive to be part of the local community and bring inspiration, strength, sustainability and colour to their customers, partners and the people in Vietnam.

Vo Minh Nhut, country president of NS BlueScope Vietnam, receives the Sustainability Award 2018 at the Australian Business Awards, hosted by AusCham Vietnam.

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VIETNAM COMING OF AGE Viet Nam is forecast to be the fastest growing economy among its neighbours over the next five years. KHOON GOH Head of Asia Research ANZ

Viet Nam is the youngest member of the so-called “Tiger Cub Economies” – and it is the most vibrant. The economy grew by 7.1 per cent in 2018, underpinned by an open economy, foreign direct investment (FDI) and a youthful and literate population. The government National Assembly set a GDP growth target of 6.6 - 6.8 per cent for 2019 which ANZ research sees as achievable despite the continued uncertain global environment. Of the Tiger Cubs – which include Indonesia, Malaysia, the Philippines and Thailand – Viet Nam is a relatively latecomer in terms of economic development in the region. However, it is forecast to be the fastest growing economy among the Tiger Cubs over the next five years. Viet Nam achieved its remarkable growth performance through an FDI-led exportoriented strategy which was successfully used by other countries such as China and the Asian Tiger economies. But three areas have made Viet Nam stand out: trade liberalisation, foreign investment and demographics. TRADING FREELY Viet Nam has strongly embraced trade liberalisation. When Viet Nam joined the World Trade Organisation (WTO) in January 2007, it was part of only two free trade deals. Since then, Viet Nam has been involved in more free trade agreements (FTAs), both through its ASEAN membership and also from bilateral negotiations. At the time of writing, Vietnam has 11 FTAs which are in effect with countries that account for almost 40 per cent of global GDP. The latest FTA which came into effect was the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Viet Nam has also concluded negotiations on an FTA with the European Union which is now awaiting approval from EU members and the European Parliament, and is also in negotiations with three other trade deals. The FTAs under negotiations, waiting for approval or waiting to go into effect, cover 24 per cent of global GDP, giving Viet Nam huge access to the global market place. CLIMBING THE LADDER Viet Nam has also opened its doors to foreign investment and has made it easier to do business in the country. This has resulted in marked improvements in its ranking in the World Bank’s Ease of Doing Business score, where it came in at 69 in 2018, a big jump from its 104th placing in 2006. During that time, Viet Nam has also improved in the World Economic Forum’s Global Competitiveness Report ranking, going from 77th place to 55th currently. Better governance, with the World Bank reporting a consistent rise in Viet Nam’s Rule of Law ranking over the past few years, has also helped attract multinationals. But it is people who make Viet Nam stand out. The country is home to 96 million people, the 15th most populous in the world and half of the population are under the age of 30. But more importantly Viet Nam has a very high youth literacy rate at 98.1 per cent. Its 15 year old primary school students achieved scores that are well above the average of advanced economies in science and maths, based on the OECD’s Programme for International Student Assessment (PISA). In addition, Viet Nam also boasts one of the highest female labour force participation rates in the world at 73 per cent. Unsurprisingly Viet Nam has become a magnet for multinationals seeking to set

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>> VIETNAM THE COMING OF AGE up manufacturing production. Inward FDI into Viet Nam was $US2.4 billion in 2006, 0.2 per cent of global FDI inflows. This has grown to $US14.1 billion in 2017 which is equivalent to 1 per cent of global FDI inflows. The extent to which Viet Nam has become an important trading hub in the region is reflected in the rapid rise in the country’s total trade as a percentage of GDP, which was almost 200 per cent in 2017, up from 9 per cent before the reforms. PRODUCT MIX But even more remarkable is the rapid shift in the composition of Viet Nam’s export mix. A decade ago, textiles and garments were the top export items, comprising around 15 per cent of the total value of exports. While textiles and garments remain an important export product, its top position has been replaced by phones and parts, which now account for a fifth of all exports. The rapid shift up in the manufacturing value added chain in Viet Nam in large part is due to the capability of its workforce. Viet Nam is actually likely to benefit from the more fraught global geopolitical environment. Escalating trade tensions between the US and China look set to accelerate the shift of manufacturing production by multinationals into Viet Nam. A survey of 219 companies from various countries by the American Chamber of Commerce in South China – conducted between 21 September and 10 October, after the latest round of

tariffs were imposed by both the US and China – showed that almost two-thirds are considering relocating some production out of China. Southeast Asia emerged as the top choice and Viet Nam is likely to emerge as one of the main contenders for the production shift. While Viet Nam is currently seen as a manufacturing hub, it will not be long before it emerges as an attractive consumer market as well. The country’s per capita income is still low at $US 2,500, but set to double over the next ten years. Given the high female labour force participation rate - which means a higher proportion of dual income households - and the third largest population in ASEAN, the mass consumer market is set to grow strongly and provide another driver for growth. As a Tiger Cub, Viet Nam is growing up fast.

ANZ is AustCham Corporate Patron Member

AustCham Membership Updates

754

MEMBERS OUR MEMBERSHIP NUMBERS HAVE REACHED A RECORD HIGH FINANCIAL YEAR 2018 - 2019

GENDER

AGE GROUP

MEMBER TYPE

40% 27% 12% 10% 8% 3%

Above 65 55 to 64 45 to 54

30%

70%

Corporate Enterprise Gold Corporate Plus Individual Patron Associate

25 to 44

NATIONALITY OTHERS

TOP 4

Austria, Belgium, Canada, China, Czech Republic, Finland, France, Germany, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mongolia, Netherlands, Norway, Philippines, Russian Federation, South Africa, Sweden, Turkey, Ukraine, U.S. and Vietnam

MANAGEMENT LEVEL

35%

CEO / Managing Director / Vice President / Partner / Founder / Chairman

46%

Senior Management / Director

12% 6%

Management Associate/Analyst/Executive

INDUSTRY

Property/Construction/ Infrastructure 13%

Financial Services 22%

Professional Services 16%

ICT 4%

Education/Training 10%

16 ACCESSASIA | WWW.AUSTCHAM.ORG.SG

Travel/Hospitality/ Entertainment 6%

Transportation / Logistics 4%

Consumer 5%

Industrial/ Manufacturing 4%

Government 4%

Energy/ Resources 2%

Healthcare 3%

Marketing/ Media/ Communication 2%

Other Services 2%

Environmental Services 2%

UPCOMING EVENTS

UPCOMING EVENTS To find out more about our events, visit our website at WWW.AUSTCHAM.ORG.SG

FEBRUARY Panel Discussion

Friday 22 February 2019 2019 Economic Outlook

Interviewed by Bloomberg's Southeast Asia Economic Reporter Michelle Jamrisko, Khoon Goh, Head of Asia Research at ANZ, will discuss the outlook for the Singapore economy, as well as the risks and opportunities in the current environment.

EVENT SPONSOR

APRIL Workshop

Wednesday 3 April 2019 Australian Budget Update Breakfast

After the Australian Budget has been strategically brought forward from its historical placement of the second Tuesday in May, to the 2nd of April 2019, we are expecting a very typical election budget to be handed down with something for everyone as the Coalition prepares for a tough battle at the Polls in May. Join us the morning after the budget is handed down on the 3rd of April for a Budget Update presented by Tristan Perry â&#x20AC;&#x201C; Head of Tax Australia from Select Investors, which is his second year presenting this for AustCham Singapore.

EVENT SPONSOR

COMING SOON. AUSTCHAM EVENT CALENDAR 2019.

ACCESSASIA | WWW.AUSTCHAM.ORG.SG 17

OUT & ABOUT

DECEMBER 2018

Xmas Drinks Thursday 6 December 2018

Over 150 guests joined us for our fantastic Xmas Drinks at Bar Rouge. AustCham members and guests enjoyed an evening of networking, free flow beer, wine and canapes. With thanks to event sponsor James Cook University Singapore and Select Investors - A division of St. James's Place and venue sponsor Swissotel The Stamford.

EVENT SPONSOR

VENUE PARTNER

Ian Cummin, Kate Baldock, Adam Lyle, Anna Hughes and Liza Noonan

Adam Lyle

Andrew Brown, Benjamin Vella, Elische Vella and Lovena Paglia

Dale Anderson and PJ Roberts

18 ACCESSASIA | WWW.AUSTCHAM.ORG.SG

David Larkin, Jack Backham, Peter Hyland, A.K Soe and Jerem Rose

Nicholas Cocks, Prerana Mehta, Philip Forrest, Annette Tilbrook, Daniel Willett and Geoff Huegill

OUT & ABOUT

DECEMBER 2018

Serena Liu, Ashlley Ang, Cecilia Hou and Rica Ang

11. Chris Coburn, Naras Lapsys, Jamie Burgmann and Michael Ciola

Simon Gattorna, Troy Cortis, Deana Candelon, Sandra Cortis and David Hannam

12. Alison Hughes, Matt Maddocks, Philip Forrest, Erica Marcellan, Marc Allen and Andrew Brown

Robyn Anderson, Pinky Sibal, Manisha Agarway, Maria Hennessy and Lucy Bates

13. Claire and Derek MacKenzie 14. Marcus Hanna, H.E. Bruce Gosper and Ian Cummin

10. Jamie Burgmann, Tristan Perry and Andy Hannelly ACCESSASIA | WWW.AUSTCHAM.ORG.SG 19

OUT & ABOUT

DECEMBER 2019

SINGAPORE ASEAN YEAR Friday 7 December 2018

In this discussion, Australia’s High Commissioner to Singapore Bruce Gosper, ANZ’s CEO Singapore and head of South East Asia, India and the Middle East David Green and founder of the Asian Trade Centre Deborah Elms took a look back over Singapore's year as Chair of ASEAN. The discussion was moderated by Bloomberg’s Juliette Saly. Special thanks to our event sponsor ANZ.

EVENT SPONSOR

Andrew Brown

Katrina Nicholas, David Green, Deborah Elms and Bruce Gosper

Liza Bain and Elizabth Bianch

Scott Walker, Dean Garvey, Oliver Fall and Mike Charter

Ian Van Dyk

20 ACCESSASIA | WWW.AUSTCHAM.ORG.SG

OUT & ABOUT

JANUARY 2019

ANZ Australia Day Ball Friday 25 January 2019

Nearly 900 members and guests joined us as we counted down to Australia Day 2019. It was a special evening of celebration, networking, entertainment, free flow wine and beer and fine dining. AustCham would like to thank all our sponsors and partners.

EVENT SPONSOR

AIRLINE SPONSOR

GOLD SPONSORS

PHOTOGRAPHY & LOGISTICS SPONSOR

WINE SPONSOR

AUCTION SPONSORS

GOURMET SPONSOR

BEER SPONSOR

DIGITAL MEDIA PARTNER

TABLE PRIZE SPONSOR

ACCESSASIA | WWW.AUSTCHAM.ORG.SG 21

OUT & ABOUT

JANUARY 2019

22 ACCESSASIA | WWW.AUSTCHAM.ORG.SG

OUT & ABOUT

THANK YOU

THANK YOU TO OUR CORPORATE PATRONS AND GOLD CORPORATE MEMBERS

Corporate Patron Members

Gold Corporate Members

ACCESSASIA | WWW.AUSTCHAM.ORG.SG 23

NEW MEMBERS

NEW MEMBERS Welcome Gold Corporate Members

Australia National University

Icon SOC Singapore

Vihn Lu Associate Dean (Advancement & Engagement)

Serena Wee

www.anu.edu.au

www.iconsoc.com

Chief Executive Officer (Regional)

QBE insurance (Singapore) Limited www.qbe.com/sg Andy White Chief Underwriting Officer, Asia Jason Hammond Chief Executive Officer, Asia

Corporate Plus Members

SP Jain School of Global Management www.spjain.sg

John Fong CEO

Karan Kumar

General Manager, Corporate Relations

Anu Madan

Manager, Industry Interface and Alumni Relations

Marrilyne D'Cruz

Executive, Institutional Development

Wani Azahar

Manager, Branding and PR

TO LEARN MORE ABOUT OUR AUSTCHAM MEMBERSHIP ACCESSASIA | WWW.AUSTCHAM.ORG.SG Visit austcham.org.sg or contact us members@austcham.org.sg

NEW MEMBERS

Corporate Plus Members

Surbana Jurong Private Limited www.surbanajurong.com

Tim Chapman

Deputy CEO Operations - Singapore

Corporate Enterprise Ally's Basket

Ally Tehan Founder

First Contact

Paul Schmeja CEO

GRS Group Pte Ltd

David Bollands Director

The Fred Hollows Foundation

Rachel Goh Regional Relationship Manager, Southeast Asia

Wechsel Enterprises

Grant Wechsel Managing Director

Investible Pte Ltd

Annie Luu General Manager

Sleek Tech Pte Ltd

Daniel Spencer Senior Account Executive

Individual Carolyn Chin-Parry Chief Digital Officer

Lexi Lazenby Partner

Prism

MitchelLake Group

Charles Butcher Head, Business Sustainability

Sygenta Asia Pacific Pte Ltd

Associate Timothy Gullifer Managing Director

Jock Langley Director

TIG Freight Management Pty Ltd

Abercromby's Real Estate

Michael Hoskison

MEMBERSHIP CARD OFFERS Present your AustCham membership card and enjoy these benefits.

TRAVEL QANTAS Complimentary business class check-in for you at the Qantas lounge in Singapore

BUSINESS SERVICES 2STALLIONS DIGITAL MARKETING AGENCY 20% discount on SEO service AIMS IMMIGRATION SPECIALIST 15% discount on professional fee at AIMS Immigration Specialist

LEVEL3 Complimentary month of ‘Community Membership’ SERVCORP Enjoy ‘The Virtual Office’ package complimentary for one month

CITY SERVICED OFFICES 10% discount on facilities and services at City Serviced Offices

WORLDFIRST Enjoy %50 off first international transfer

ENGN 15-20% photography discounts off headshots

WOTSO Enjoy 50% off first month of coworking membership

HOLIDAY INN® SINGAPORE ORCHARD CITY CENTRE 10% off for Meetings, Incentives, Conventions, Conferences, Exhibitions LAW IN ORDER AustCham members enjoy 15% off a range of business administrative services

EDUCATION & TRAINING COALFACE DIALOGUE Enjoy up to 30% off selected public programs anywhere in SEA

SINGAPORE MANAGEMENT UNIVERSITY Receive 5% discount on selected SMU Executive Development

FINANCIAL SERVICES PAY2HOME Enjoy money transfers to Australia for a flat fee of $15 (save 25%)

QBE SINGAPORE 20% discount on personal lines including Home, Motor and Travel coverage

HEALTH SERVICES ALL IN THE FAMILY COUNSELLING Enjoy special rates for counselling sessions

GLOBALIS INTERNATIONAL HEALTH INSURANCE Receive discounted rates on their international health insurance

LIFESTYLE & ENTERTAINMENT BOUNCE SINGAPORE 10% off General Access Tickets CHI, THE SPA Enjoy 10% off discount

SPA BY JW MARRIOTT HOTEL Enjoy 20% off A La Carte treatments THE VIRTUAL ROOM Enjoy 15% off discount

DAMAI SPA Enjoy 20-30% off A La Carte treatments

TRANSPORT & RELOCATION SERVICES ALLIED PICKFORDS Offering AustCham members a special insurance premium of 3%

HERTZ Enjoy 15% off on Affordable Rates for car rentals

HOTELS COMO THE TREASURY PERTH Enjoy Friday and Saturday night stay at 10% off the public rate.

RIA BINTAN AustCham members enjoy $20 off Newbie Golf Experience & $200 off Membership.

FAR EAST HOSPITALITY Enjoy discounts on best available rates at Far East Hospitality Hotels in Singapore and TFE Hotels in Australia

THE CANOPI AustCham members enjoy 10% off Best Available Room Rates at The Canopi and 10% off all activities at Chill Cove @ Treasure Bay Bintan.

HOLIDAY INN® SINGAPORE ORCHARD CITY CENTRE Enjoy 10% off from Best Available Room Rates NOVOTEL SINGAPORE CLARKE QUAYHOLIDAY INN® SINGAPORE ORCHARD CITY CENTRE Enjoy 10% off from Best Available Room PARK REGIS, SINGAPORE Complimentary breakfast when you book Bed & Breakfast Package

THE FULLERTON HOTELS SINGAPORE Enjoy an exclusive 10% off the Fullerton Family Package. THE FULLERTON BAY HOTEL 10% off the Indulgence Room Package VILLA FINDER With an average stay that costs $3000 in luxurious villas, Villa Finder is now offering AustCham members 5% off their villa booking!

RESTAURANTS ARTISAN BOULANGERIE CO. 17.5% off total bill

NAMI Enjoy 15% off total bill for a la carte items

BEACH ROAD KITCHEN 1 person dines free for every 3 paying adults for Sunday Brunch

ORIGIN GRILL & BAR 15% off total total bill

CAFE MOSAIC 20% discount off total bill COOL CATS, THE NCO CLUB 30% off total bill COURT MARTIAL BAR 30% off total bill FISH POOL, THE NCO CLUB 25% off total bill GATTOPARDO 15% discount off total bill JAXS BISTRO 10% off total bill JOJI BAR 10% off total bill at Joji Bar, Carlton Hotel Singapore LOBBY LOUNGE & BAR 20% off total bill and all day happy hour MEATSMITH Special discounts available

SHANG PALACE 15% off total bill SHOPHOUSE BY SHANGRI-LA 15% off total bill TANDOOR 20% off total total bill THE LINE 15% off total bill THE LOBBY LOUNGE 15% off total bill THE ROSE VERANDA 15% off total bill WAH LOK CANTONESE RESTAURANT 10% off total total bill WATERFALL RISTORANTE ITALIANO 15% off total bill WHITEGRASS 20% off total bill WINDOW ON THE PARK Enjoy 1-for-1 Lunch Buffet/Semi-Buffet (Weekday night)

MEDIA BAR Enjoy 25% off total bill

RETAIL EASTERN CARPETS Receive 10% discount on all carpet cleaning services EUROPEAN BEDDING Receive 5% discount on top of existing promotions INDIGO WINE CO $30 off first purchase of discounted Australian wine packs NATURAL SPRINGS AUSTRALIA Receive one free 5-gallon bottle with every five bottles purchased

VISIT WWW.AUSTCHAM.ORG.SG FOR FULL DETAILS & CONDITIONS

SHIVA DESIGNS 15% discount on purchases over $99 UOMO GROUP Exclusive discounts at UOMO Group, Brioni and Stefano Ricci WINE EXCHANGE ASIA $69 per bottle for cases of six BillecartSalmon NV Champagne

NEWS FLASH JOB OPPORTUNITIES AT AUSTCHAM WE ARE HIRING! We are looking for passionate and motivated individuals with a flare for events, relationship management and stakeholder engagement to join our team on a short term contract basis. There are two roles available, each for 8 months, leading our events and member engagement teams. We are looking for experienced people to step into these roles and work with the team to deliver the great events and member services AustCham is so well known for. So if you are passionate about helping the Australian business community, enjoy working as part of a small but energetic team and looking for a new challenge contact us at hr@austcham.org.sg for more information. â&#x20AC;˘ Acting Events Manager Responsible for the delivery of our strong (and busy!) event program, a key activity for the Chamber â&#x20AC;˘ Acting Director of Membership and Program Responsible for membership acquisition and retention, membership programs and engagement, sponsorship and developing our high quality program of business events.

FEB / MAR 2019 AccessAsia Magazine is published bi-monthly by AustCham Singapore

EDITORIAL AND NEWSFLASH ANNOUNCEMENTS To submit articles or announcements for consideration for Access Asia, email info@austcham.org.sg

Editorial Team Kate Baldock, Executive Director Rica Ang, Marketing Executive

ADVERTISING To learn more about advertising in Access Asia Magazine, contact Rica Ang at rica.ang@austcham.org.sg

Design Rica Ang, Marketing Executive

AustCham Singapore 25 Napier Road (Level 3) Singapore 258507

@AustCham-Singapore

@AustChamSingapore

@AustChamSG

READ THE DIGITAL COPY AT AUSTCHAM.ORG.SG

ACCESSASIA | WWW.AUSTCHAM.ORG.SG 29

AUSSIE-RULES Skills for life

Ambition

An education that delivers resultsâ&#x20AC;Ś At AIS we believe that collaboration leads to success. Whether it be the dedication of our students, the passion of our teachers or the support of our families, every member of the AIS community has played their part in achieving yet another year of outstanding results. Congratulations to our graduates. Speak to our friendly Admissions Team to learn how our dynamic and engaging curriculum programs lead to success.

Globally focused, distinctly Australian

www.ais.com.sg +65 6653 7906

Australian International School Pte Ltd is registered by the Committee for Private Education (CPE), part of SkillsFuture Singapore (SSG). CPE Registration Number 199204405H. Period of Registration 6 July 2015 to 5 July 2019