Country Risk Analysis: VIETNAM: Group Members: Arun Manohar & Viraj Chavan
Country Risk Analysis: VIETNAM: Group Members: Arun Manohar & Viraj Chavan
Country Risk Analysis: VIETNAM: Group Members: Arun Manohar & Viraj Chavan
Group members:
Arun Manohar & Viraj Chavan
About Vietnam
• Its Population is over 86 million.
• Language spoken is vietanamese most of the
vocabulary is borrowed from chinese.
• Its neighboring countries are China, Laos, Cambodia.
• The Socialist Republic of Vietnam is a single-party
state
• President of Vietnam is Nguyễn Minh Triết
• Major cities are Hanoi, Ho chi minh, dalat, Nha
tarang and Hue.
• Its capital is Hanoi
NATURE OF BUSSINESS
• IT is the fastest growing sector
• Young population is more
• Sales record of 685$ in 2004 and 850$ in 2005
and expected ahead till 1050$ in 2011.
• Growth rate of IT is 25% annualy
PEST FACTORS
POLITICAL FACTORS
• Vietnam is a Single Party Communist State.
• It has higher government control and less
autonomy for the organization wanting to
enter the Vietnamese market
• It is advisable to form good relations with the
local government and negotiate favorable
terms with them
ECONOMICAL FACTORS
• Vietnam is a developing economy.
• It is best to use a price leadership strategy
rather than rely on product differentiation
SOCIO-CULTURAL FACTORS
• There are language barriers
• It is also predominantly Buddhist (85% of the
population).
TECHNOLOGY FACTORS
• Infrastructure in Vietnam is adequate.
• There are 17 civil airports and pipelines to
transport liquids such as petroleum.
SWOT ANALYSIS
STRENGTHS
• It has a large, skilled and low cost work force.
• Its proximity to China and South East Asia and
has good sea links which makes it a good base
for foreign companies.
WEAKNESS
• Its infrastructure is still weak.
• High tax laws
• A failure by the authorities to boost skills
levels
OPPORTUNITIES