Opportunities in Vietnam

Opportunities in Vietnam

Opportunities in Vietnam

Introduction

In 1967, Bangkok homed the formation of (ASEAN), Association of South East Asian Nations despite the war in Vietnam. The founding nations focused on the need to speed up the growth in the regional economy, progress in social sector, development of culture and tranquillity in the entire region by collaborating and through joint support. The founding estates, Thailand, Singapore, Philippines, Malaysia and Indonesia remain at the core of the association. The association now have total ten members. Myanmar, Laos, Cambodia, Vietnam and Brunei have joined the association, which has brought together nations who have a great diversity in terms of wealth, political process and society. The diverse combination is unique to this region and the demographics of 600 million people make it a lucrative for opportunities. The association has planned for the free movement of labour, investments, services and goods between the regional countries by 2015 which will further create numerous opportunities. Our nation in focus is Vietnam. The history of Vietnam is filled with bad experiences. Vietnam saw numerous wars and political conflicts with major economic powers like the United States and China. In 1986 Vietnam initiated economic reforms and its isolation was reduced after it withdrew it troops from Cambodia 1989. The full diplomatic relations were re-established by China in 1991 and in 2000, the relationship of Vietnam with United States of America was strengthened by the visit of President Bill Clinton. The relationship between United States and Vietnam has normalized since then. The measures taken by Vietnam for converting its planned economy to market economy has met with success. Vietnam's economy saw remarkable progress and the economy of the country is among the fastest growing economies in the world. We will be assessing the attractiveness of Vietnam as an investment opportunity. The political and economic environment will be analysed and cultural and ethical risks will be assessed. We will identify the opportunities in the food industry as well as in other sectors.

Discussion

The investment decisions especially in a foreign country are made in light of special consideration. The country has to be evaluated for the feasibility of business environment, the opportunities present for the food industry and the risks associated with the investment. An effective way to evaluate the environment is to carry-out a PESTLE analysis, which evaluates the current Political, Economic, Social, Technological, Legal and Environmental aspects of the country. We will then add the analysis of culture and ethics to our analysis which can provide a comprehensive perspective of the country. It will also highlight the risks associated with the unique economy of Vietnam.

Political Risk Analysis

The risk of political instability is between low to medium as the Communist Party of Vietnam (CPV) has been ruling the country since 1976. The government has maintained a strong control over the development of any political uncertainty as it doesn't allow political dissent in the country and the political activists are jailed frequently. The party's decisions are make up the nation's policy, and ...