EXECUTIVE SUMMARY
Vietnam is a young country with the developing economy. To be a member of WTO (World Trade Organization), Vietnam can have many opportunities to develop more and more but it is also a challenge for this South East Asia country in the time changing from command economy to mixed economy.
Established on 9th, April, 1995, through 15 years operating on home care products, personal care products and food, Unilever Vietnam has achieved a lot of success and be remarkable in Vietnam’s economy. Unilever Vietnam is evaluated as one of strongest foreign capital companies and has a huge contribution to Vietnam’s development and country’s economy. The important feature that guarantees its success is the close connection between the firm and Vietnam’s economy and the community. Furthermore, Unilever also has built and developed well relationships between medium and small internal enterprises even they are customers, suppliers or distributors. Over 15 years in Vietnam, Unilever is known as a firm not only brings the benefits to its own business but also contributing to the social’s development, especially with children and women by its meaningful activities.
This project researches Unilever on this variety of aspect: * Identify the mission, values, and objectives and assess the influence of stakeholders of Unilever * Evaluate the extent to which Unilever achieves the objectives of three stakeholders * Identify the responsibilities of Unilever and strategies employed to meet them * Explain how economic system attempt to allocate and make effective use of resources available within country * Discuss the impact of social welfare and industrial policy initiatives in Unilever and the wider community * Evaluate the impact of macro-economic policy (fiscal and monetary policy) measures and influence of the global economy on Unilever and stakeholders in Vietnam

INTRODUCTION
Vietnam’s economy has grown rapidly in recent year. According to the figure from Vietnam General Statistics Office, GDP in 9 months of 2010 has increased 6.52% compared to last year (http://www.gso.gov.vn/default.aspx?tabid=507&ItemID=10501). About the society, there are one million people are added to the population every year. The literacy rate is 92.5%, number of university students nearly doubled from 2003 to 2008. As a result, the educated employees have risen. This can be a good signal for the quality of employees in Vietnam now and future.
Following the Foreign Investment Department, there are 106 Multinational Corporations (MNCs) are operating in Vietnam nowadays with the total investment is 214 projects with the capital is over $11 billion among $8.6 billion has been operated. There are many fields which these MNCs involve such as information technology, electronic, food, cosmetics, etc. According to Mr. Kimihiro Itoki – Director of Sony Vietnam, MNCs have evaluated Vietnam as a new market of ASEAN with a rapid development, plentiful human resource, so Vietnam need an obvious invest environment and clear policy (http://vietbao.vn). Investing in Vietnam, MNCs can have some advantages like: low labour cost and cheap raw material, plentiful natural resource, Vietnam is developing and as a member of WTO, therefore, Vietnam always welcomes foreign investment. Beside the advantages, MNCs in Vietnam also have to face with disadvantages. Some of them are problems about banking system, infrastructure, low management skill or the status on the world trade market.
To use efficiently the benefit and overcome difficulties, many MNCs are very successful in their business in Vietnam. One of them is Unilever – the second biggest home care, personal care and food corporation in the world. Unilever joined Vietnam’s market in 1995, up to 2009, Unilever has added to the market over 540 brands based on market research and consumers’ demand (http://thitruongvietnam.com.vn). All of them are famous products with Vietnamese customers like: OMO, Sunsilk, P/S, Lipton, Sunlight, etc. Through the operation in Vietnam in nearly 20 years, Unilever Vietnam has employed 1,500 direct employees and given job for 7,000 indirect workers. With diversified products which are very close to requirement of consumers and suitable prices, social activities that involve to the Vietnamese’s life and the goal to raise people’s living standards and improving the well-being for the Vietnamese people, Unilever is evaluated as one of strong MNC in Vietnam and has high influence on this country’s economy.

MAIN BODY
IA Mission, values, objectives, influence of stakeholders and responsibilities within Unilever’s environment.
I.1. Mission, value, objectives and the influence of stakeholders
I.1.1 The mission of Unilever
According to Mintzberg, mission describes the organization’s basic function in society, in terms of the product and services it produces for its clients (BPP Professional Education, 2004, p.27). Some people can feel confused about mission statement and vision statement. Actually, mission statement answers the question: “Why does the organization exist?” while vision statement express “where is it going in the future?”
Operating with the mission: “To add vitality to life” (www.unilever.com) Unilever has won a lot of customers’ trust for 80 years existing. Looking at the very short and clear mission statement of Unilever, readers can understand easily why this company exists. They are here “to help people feel good, look good and get more out of life”. As a big provider of famous shampoo brands like Dove and Sunsilk, popular home care products like Omo, Sunlight and a lot of good health care brands, Unilever performs its mission every day, every time and everywhere in the world. This is also a really impressed statement which is very useful in broadcasting company’s imagine and characteristic feature of Unilever. With only one sentence, customers can know immediately what productions provided by the firm are. That is an important step for people to remember the company. Beside, Unilever’s mission statement also brings a positive meaning is they want to add the energy, the power to the life for people exist and develop more and more. Furthermore, this statement is flexible, too. It can be applied to the changes of the economy efficiently.
Overall, Unilever’s mission has influenced a lot on the corporation’s business.
I.1.2. The value of Unilever
Values are the goals or aims of the organization will have an ideology based on beliefs, value and attitudes (BPP Professional Education, 2004, p.26). Every corporation in over the world has their own value. It reflects the way they operate, behave, manage people and deal with other organizations.
With Unilever, their value: “We aim to be a trusted corporate citizen wherever we operate in the world, respected for the values and standards by which we behave” (http://www.unilever.com) has done efficiently its function because in many countries where Unilever operates, their products are known as safety and healthy ones and achieve a lot of customer’s truth. This is also a very clear value which can be comprehended as the guide for Unilever do its business and it also impacts their action and thinking a lot. With Unilever’s employees, building the belief and behaving toward the company’s standard are things they have to practice and improve everyday in working. Furthermore, with the specific purpose “what we believe is the essence of our company” (http://www.unilever.com), employees of Unilever attempt to reach their own standard such as employee and product safety day-by-day in its corporations. Beside, the value is also expressed in code of business principles; it can be understood as the practical value in their business. Through over 100 years operation, with the ever attempt and specific value, Unilever has asserted its position as the top company which provide food, personal care and home care in the world.
I.1.3. The key Objectives of Unilever
Objective set more specifically the goals of the organization, the aims to be achieved and the desired and results (BPP Professional Education, 2004, p.26). It is evaluated by SMART technique.
The first objective which Unilever want to achieve is related to finance “10% -15% of sales growth in a period of 5 years from 2004 to 2009” (Unilever factsheet_tcm91-70889.pdf) S – Specific: 10% - 15% of sales growth in a period of 5 years
M – Measurable: 10% - 15% of sales
A – Attainable: the world’s population is higher and higher, thousands of people are added per day, the demand will increase so obviously, product will be sold at a big number
R – Realistic: the sales in Russian, Ukraine and many countries have increased 23% in 2008
T – Time bound: from 2004 to 2009
The second objective of Unilever is a long term objective: “to integrate business as a part of society and to actively engage with the community through stronger, deeper, relations.” (http://www.unilever.pk)

S – Specific: integrating business as a part of society and engaging actively with the community through stronger, deeper and relations
M – Measurable: to be an important part of community and have big impacts on social life
A – Attainable: granting money for public health care and hygiene protect, working with UNICEFT to reduce child mortality in Asia, Latin America and Africa, improving the nutritional profile of products to reduce the poor diet and obesity, etc (http://www.unilever.com/ )
R – Realistic: educating 2 million people about oral health in Nigeria, over 28,000 villages in India are educated about basic hygiene habits, the value of community giving went up in 2005 to €79 million (from €65 million in 2004), etc (http://www.unilever.com)
T – Time bound: long term
The third objective which Unilever want to reach is about their product: “to further reduce the salt content of most Unilever products before the end of 2010 to ensure that the Unilever portfolio contributes positively to achieving the recommended dietary maximum of 6 g of salt per day.”

S – Specific: further reducing the salt content of most Unilever products to achieve the recommended dietary maximum of 6g of salt per day
M – Measurable: achieving the recommended dietary maximum of 6 g of salt per day
A – Attainable: Unilever is in attempt of reducing the amount of salt everyday.
R – Realistic: according to the evaluation of the customer, products of Unilever have less salt compared to the other brands
T – Time bound: before the end of 2010

I.1.4. The influence of stakeholders

I.1.4.1 The stakeholders mapping
Stakeholders mapping is a strategy business tool which identifies and assesses the effect of a different individual or group of stakeholders on a company. It examines the power stakeholders can expert, the relative likelihood of them using that power, and their lever of interest regarding the company’s activities (http://www.lmcuk.com/ )

Interest/ Aspiration

Low High Minimal effort | Keep informed | Keep satisfied | Key players | Low Power/ influence High

Figure 1: Stakeholders mapping
Key players means high interest and high influence segment, strategy must be acceptable to them.
Keep satisfied are the people who have low interest but high influence segment. They must be treated with care and they are capable of being key players.
Stakeholders in keep informed have high interest but low influence segment. They do not have great ability to influence strategy but their views can be very important in influencing more powerful stakeholders.
Minimal effort means low interest and low influence segment. Stakeholders in minimal effort do not have great ability to influence strategy and do not have much interest in the organization.
(Mission, values & objectives and influence of stakeholders _ Mary Eloisa)
Stakeholders are individuals or groups who have an interest in how the enterprise performs because it affects them in some way – that is they have a stake in the organization (BPP, Professional Education, 2004, p.37). Stakeholders include internal stakeholders, connected stakeholders and external stakeholders. Their influences can be illustrated by using stakeholders mapping

Type | Stakeholders | Stakeholders mapping | | | Key players | Keep satisfied | Keep informed | Minimal effort | Internal stakeholders | Management | x | | | | | Employees | | | x | | Connected stakeholders | Shareholders | | x | | | | Customers | x | | | | External stakeholders | Central government | | x | | | | Local authorities | | x | | |

I.1.4.2 Internal stakeholders
Internal stakeholders include managers and employees. These factors are very important with every firm, especially with Unilever, they play particular two roles.
Managers are evaluated as the “key players” because they have high interest and high influence, particularly in making decision of organizations. As a Chairman of Unilever, Michael Treschow is the person who has the highest powerful in this company. With the decision of choosing Paul Polman - old senior executive of Procter&Gamble – a rival company to be new CEO replaced for Patrick Cescau, Treschow made a big important strategy of Unilever and this is also the first time Unilever has an outsider keeps the high position. This decision promises will bring a big change for Unilever.
Employees have high interest and low influence so they are marked as “Keep informed” segment. With managers, employees play an important role in every organization to make its operation stronger. Unilever is evaluated as one of firms which have good policy with the employees in the world. In Unilever, the average salary is from $50,000 to $ 90,000 per year for normal employees. It can be much higher with the people who keep the higher positionlike CEO, CFO, etc. Beside the salary, working in Unilever brings employees the chance to train their job skill as well as the professional working environment and fair treatment.

Figure 2: Average salary n Unilever (http://www.payscale.com/research/ZA/Employer=Unilever/Salary)
The impact of employees in Unilever is not big but it does exist. In Unilever, people have to ensure that they will involve with the vision and plan of their company. That means, what Unilever wants to achieve depends much on its employees.
I.1.4.3 Connected stakeholders
Connected stakeholders can be identified as shareholders, customers, suppliers and bankers. In this report, 2 of them are shareholders and customers will be mentioned.
Firstly, shareholders are the people who have low interest but high influence with the firms. Because these people invest their money to the company, if they take out their money, the company may have to face with a lot of risks, so their decisions impact a lot on company’s operation. In choosing Paul Polman – an old senior excusive of P&G to be Unilever’s new CEO, most of shareholders have agreed with this decision that means, at the first step, Polman has won a lot of agreement and this is his benefit.Customer is the second factor of connected stakeholders. Since they have high interest and high influence, they are in “Key players” segment. To be provided a wide portfolio with nearly 1200 product, Unilever’s customers are cared with the best product quality. The customer service is good, too. Most of consumers are satisfied with Unilever’s branch as well as the service. In addition, customers also decide the company’s operation. If the firms lose their customers, that means, their business is bankrupting. With 130 million target consumer per week, the influence of this number is very huge on what Unilever has to do.
I.1.4.4 External stakeholders
External stakeholders include central government, local authorities, pressure group, etc. The government is comprehended as “keep satisfied” because they have low interest but high influence. Obviously, the impact of the government on firms’ operation is very big. With Unilever, besides paying tax, they also have a commitment about saving environment of the part where they operate, protecting benefit of employees and customers, doing legal business, etc. The amount of money which Unilever has spent for tax is €1,263 million in 2009. It’s quite a big number but to maintain their successful business, they have to accept it.
Local authorities, do not have high power as government, they still have fixed influences with the firms. For instance, if Unilever wants to build a new factory in any place, especially in Vietnam, they have to pass many procedures about land, capital, design of the factory, etc.
I.2 Evaluate the extent to which Unilever achieves the objectives of three stakeholders Type | Stakeholders | Objectives | Achieved/Not achieved | Internal stakeholders | Employees | Steady and high salary | Achieved | | | Training career | Achieved | | | Professional working environment | Achieved | | | Promotion | Achieved | Connected stakeholders | Customers | Variety of product | Achieved | | | Good services | Achieved | | | Listening and encourage contributing ideas | Achieved | External stakeholder | Central government | Paying tax | Achieved | | | Passing law to protect employees and customers | Achieved |

I.2.1 Internal Stakeholders
Internal stakeholders are the people who relate directly to the company and employees are one of the features. Beside high steady salaries, in Unilever, employees are satisfied with their working environment and promotion. According to Unilever, this is a place where people can trust and respect each other. In addition, Unilever always give the employees the chances to perform efficiently their skills and to enhance their own abilities (http://www.unilever.com/ ). This company is also evaluated as one of corporations which have the best supportive policy for the employees. Beside concerning about employees’ salaries or working environment, Unilever also care about their job skills. For example, in 2008, Customer Development function opened an online centre to share advices, working methods and good practices from around the world for the employees or they are also able to access specific training from functional academies, such as the Marketing and Finance Academies (http://www.unilever.co.uk)
I.2.2 Connect Stakeholders
Customers are marked as connected stakeholders; their influence on the firms is very huge. They have contributed 90% decision about company’s operation. As a result making customers satisfied can bring success to Unilever. In attempt to serve customers well, Unilever have achieved some remarkable features. With the variety of over 1200 brands include personal care, home care and food, Unilever’s product bring to customers the diversity in making choice. Furthermore, millions of people who choose Unilever not only because of the quality but also the customers services of this company. Unilever has used the combination of channels like product labels, websites, care lines and/or consumer leaflets, to communicate openly with consumers, giving them useful advices about products or company’s information. As a result, this action has supported Unilever to listen their customers and encouraged them to contribute ideas to help this company stronger.
I.2.3 External Stakeholders
In this report, external stakeholders were mentioned as central government. Obviously, government has affected a lot on every firm’s operations, including Unilever. They have to obey the law and policies that are made by the government. According to the annual report in 2009 of Unilever, this corporation has spent €1,263 million on taxation. Furthermore, Unilever has applied the policies and law to protect their employees and customers efficiently. For example, if the customers have any risks when using Unilever’s product, the law and policy will protect them or with the privacy policy, when a customer wants to buy product online, his personal information is not permitted to share with anyone except the supplier and may be the third party to allow delivering the product or services and no one has right to use their information with any purpose except required to do so by the law (http://www.unilever.com).
I.3 Explain the responsibilities of organization and strategies employed to meet them. | Specific responsibilities of organization | Strategies employed to meet them | Social Responsibilities | Improving life environment for mountainous and poor part in Vietnam | Unilever Vietnam Foundation (UVF) has supported 4,770,100,000 VND for 20 projects include clean water, hygiene and garbage and environment. | Environmental Responsibilities | Saving material | - Collecting old toothpaste tubes, paper, glass and plastic bags to make new products- Collecting used cooking oil to produce biofuels | Ethical Responsibilities | Paying tax | - paying tax on time and follow the requirement. | Management Responsibilities | Caring about employees | - organizing training course about job skill as well as personal skill- caring about employees’ health and safe. | Public Relations and Corporate Image | Keep an good imagine about company with customers and community | - building a creative and enthusiastic marketing team to promote company’s image |
Responsibilities of organization include: * Social responsibilities, * Environmental responsibilities, * Ethical responsibilities, * Management responsibilities * Public relations and corporate image. Social responsibilities of an organization are defined as the obligations that the organization has toward the people and the environment in which the company operate (BPP Professional, 2004, p.48). With Unilever, the success which they have achieved since the first time operating not only because of the right strategies in business but also the social activities that this company has taken part in. In 2004, the Unilever Vietnam Foundation (UVF) was established with the purpose to support for the social and community activities of Unilever Vietnam. Up to now, after six years operating, UVF has support 18 billion VND for many programs and projects which involve to improving Vietnamese’s life. On 7th, January, 2010, in the annual activity, UVF granted 4,770,100,000 VND for 20 projects of clean water, hygiene, garbage and environment. Most of projects have focused on rural parts and mountainous like Lao Cai, Quang Tri, Tay Ninh, Vinh Phuc, etc. Unilever Vietnam hoped that this small support can help in these parts overcome difficulties and improve living standard. (http://vietnamnet.vn)
Environmental responsibilities are the concerns of every firm, especially, companies in manufacturing industry like Unilever. To be responsible in this field, Unilever Global as well as Unilever in over the world has had specific strategies. For instance, Unilever in Brazil coordinated with one of Brazil's leading supermarket chains, Pão de Açúcar in a program of recycling used material like waste plastic, cardboard, toothpaste tubes and glass. Specifically, they collected these things and made new products like toys, furniture, pen containers, etc. In addition, recycling used cooking oil was also one of activities in this program. Used cooking oil was contained in special bins and sent to energy companies for using as a raw material in in the production of biofuels. Over 43,000 litres of cooking oil have been gathered since the program began (http://www.unilever.com.vn) Ethics is about the codes of moral principles that people follow with respect to what is right or wrong. Ethics in organizations relate to issues of social responsibility and issues of business practice (BPP Professional, 2004, p.61). Unilever has been named in the 2009 World's Most Ethical Companies list by the Ethisphere Institute. To achieve this noble position, Unilever has obeyed law seriously, one of attempt is paying tax on time and follow the principle. According to the annual report, in 2009, Unilever spent €3,659 million on tax (http://www.unilever.com)
Management responsibilities contain responsibilities to employees, to customers, to suppliers, to competitors and toward the community. In Unilever, management responsibility is showed in all factors, in this report, caring employee will be mentioned. Unilever’s employees are provide many training job skills program like an online 'centre of excellence' on sustainability to share good practice from around the world, Supporting Marketing and Finance, a new online tool has launched to help employees improve personal development plans. Furthermore, employees’ health and safe are also issues that managers of Unilever concern. The more employees are healthy, the more quality and quantity of work are efficient. With the strict principle in manufacturing, in 2008, Unilever has decreased to 0.21* accidents per 100 000 hours worked, down 19% on 2007. (http://www.unilever.com.vn)
Corporate image describes the public attitude towards a company, or the image of the company in the mind of the general public and, perhaps more specifically, in the minds of potential customers (BPP Professional, 2004, p.71). Protecting and maintaining the company’s image are one of things which Unilever’s marketing strategies remark. According to Vietnam business magazine, one of five factors which made success for Unilever Vietnam is the creative and enthusiastic marketing team. By researching market, customer’s behaviors and habits in Vietnam, marketing department has contributed in producing suitable product with Vietnamese and bring the best goods to consumers’ hands. About public relation, Unilever’s has done a really good job. In a long-term program named: “P/S bảo vệ nụ cười Việt Nam”, this company helped 1, 5 million people in Vietnam be checked teeth freely or the campaign “OMO áo trắng ngời sáng tương lai” has granted white shirts and scholarships for poor children could go to school. Day by day, with meaningful activities, Unilever has been seen as a corporation which not only success in business but also toward and sympathize with the community.
II. The economic social and global economy in which Unilever operate
II.1 Economic system attempt to allocate and make effective uses of resource available within the country
II.1.1 Economic system
Economic system is a mechanism which deals with the production, distribution and consumption of goods and services in a particular society (www.wordIQ.com). There are three main types of economic system: free market economy, command economy and mixed economy
The first type is free market economy or capitalism. In this type of economy, most decisions are taken through the operation of the market mechanism. Supply and demand and the ability to pay influence decision-making. There is very little government intervention in business decision-making (BPP Professional, 2004. p.135). Free market economy has some specific traits like government cannot control the resource, businesses produce goods to make a profit and the prices depend on demand and supply of goods. With free market economy, there are some advantages that cannot be denied like the customers will have freedom to choose goods and services, the owners can keep all profit after paying tax, because of the diversity of supply so the competition between companies will be high makes the fall of prices. However, this type of economy brings some disadvantages. The government will not provide goods or services which related to education or health so the benefit of these things just available to people who can afford. Besides that, the country’s economy may face with booms or recession because of losing control. Furthermore, the prices will be increased by creating monopolies so customers will have limited choice for a product.
The second one is command economy – sometimes referred to as state controlled. In this type of economy decisions are taken collectively, usually by central planning committees. The government controls what is produced, how much is produced, the prices and who the goods are available to (BPP Professional, 2004, p.136). With this type, people can meet some advantages like the waste resulting from competition between firms are eliminated, achieving needs for the population but only a little production of luxury goods for the wealth. However, limitations are things cannot be avoided. There will be less motivation to work because the government fixed the wages and private properties are not allowed. In addition, the goods people want may not be produced by the government or the operations of the firm are less efficient because of the lack profit.
The last kind of economic system is mixed economy. This is the combination between some features of both free market economy and command economy. Most of countries in the world have mixed economy. In contrast with free market economy and command economy, there is a balance between market forces and state intervention in mixed economy. With mixed economy, firms can make their own decisions what to produce, how to produce and what prices to charge. In many countries the government still control some important factors such as health, education, public transport, electricity supply, etc.
With Vietnam, before the “Doi Moi” (renovation) - 1986, the economy system is command economy. At that time, people’s life had to face with many difficulties. Because of the control of the government on every area, the development was limited led to the low salary, national budget purchasing and spending are based on borrowing and granting from foreign countries. Up to 1985, foreign loan was 8,5 billion Rouble and $1,9 billion. The obvious consequence was the inflation in 1986. Economic crisis lasted in many years. In front of that context, the government decided to launch a comprehensive renovation to bring a new development to Vietnam. From that time, the command economy changed into mixed economy (http://www.hids.hochiminhcity.gov.vn). These real figures below showed the GDP by economic components of Vietnam from 2000 to 2008. There is variety of economic components that take part in the country’s economy and all of them have vital roles with the economy. | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | State Economy | 38,52 | 38,40 | 38,38 | 39,08 | 39,1 | 38,40 | 37,39 | 35,93 | 35,54 | Out-State Economy | 48,20 | 47,84 | 47,86 | 46,45 | 45,77 | 45,61 | 45,63 | 46,11 | 46,03 | Collective Economy | 8,58 | 8,06 | 7,99 | 7,49 | 7,09 | 6,81 | 6,53 | 6,21 | 5,66 | Private Economy | 7,31 | 7,95 | 8,30 | 8,23 | 8,49 | 8,89 | 9,41 | 10,18 | 10,50 | Individual Economy | 32,31 | 31,84 | 31,57 | 30,73 | 30,19 | 29,91 | 29,69 | 29,72 | 29,87 | FDI Capital Economy | 13,28 | 13,76 | 13,76 | 14,47 | 15,13 | 15,99 | 16,98 | 17,96 | 18,43 | Figure 3: Gross Domestic Product by Economic Components of Vietnam
II.1.2 Three factors of production
All society has available quantities of productive resources or what economists call factors of productions. They are classified into three main groups: labor, land and natural resources, and capital (BPP Professional Education, 2004, p.131).
II.1.2.1 Land resource
According to the data of 2009, the total land area of Vietnam is 33,105,100 ha. It consists of agricultural land, non-agricultural land and unused land: * Agricultural land: 25,127,300 ha * Non-agricultural land: 3,469,200 ha * Unused land: 4,508,600 ha
(http://www.gso.gov.vn)
Vietnam is known as an agricultural country so the area of agricultural land is very huge. Along the advantage of weather and hard-working of people, Vietnam has become the second biggest export rice country in the world. With 25,127,300 ha agricultural land Vietnam’s government has established strict policies to use it effectively. For example, according to the plan of using land from 2006 to 2010, the government decided to exchange 72,600 ha of low effective grow wet rice land into other purposes land, 46,000 ha of forestry land into agricultural land and exchange 2,193,000 ha of unused land into agricultural land. This action has led to good results like the farmers have land to grow rice and other plants to have higher income for improving their living quality, besides, the low effective land has been used for other purposes such as establishing industrial zones, factories and different kinds of infrastructure.
About the non-agricultural land, the government has allocated it to variety of purposes like living land in urban and in rural, defense land, public land, religion land, etc. Nowadays, many industrial zones have been built in Vietnam such as Binh Duong, Hung Yen, Vinh Phuc, etc. With the dense appear of industrial zones, this is really a good signal for the development in economy of the country
Vietnam also has advantages about natural resource such as coal, iron, silver, oil and other kinds of mineral. There are about 5,000 mines of mineral with 60 types have been discovered They have contributed an important part in the development of Vietnam’s economy. However, because of the managing natural resource policy of Vietnam is not really strict so the amount of mineral which is exploited not effective is quite big. Therefore, many tones of mineral have been smuggled to abroad illegally. In this case, Vietnam’s government need to have stronger solution for this issue.
II.1.2.2 Labour resource
Labour includes all types of physical and mental power of human beings (BPP Professional Education, 2004, p.131).
Following the data in 2009, the Vietnamese population is 86,024,600 people and the people who are in labour age are 47,743,600 people. This number has increased 3% compared to 2008. The table below shows the division of labour by economic sectors
Figure 4: The division of labour from 15 years old by economic components

Kinds of economic activity | 2008 | 2009 | Agriculture and forestry | 22705.5 | 23022.0 | Aquaculture | 1742.2 | 1766.5 | Mining and quarrying | 446.0 | 477.4 | Manufacturing | 6523.1 | 6851.2 | Electricity. gas and water supply | 232.3 | 262.6 | Construction | 2476.4 | 2692.8 | Wholesale and retail trade; repair of motor vehicles. motor cycles and personal and household goods | 5131.5 | 5275.7 | Hotels. restaurant | 793.7 | 816.4 | Financial intermediation | 210.3 | 219.6 | Scientific activities and technology | 26.8 | 27.3 | Real estate. renting and business activities | 240.2 | 257.8 | Public administration and defence; compulsory social security | 1770.8 | 1818.0 | Education and training | 1338.7 | 1375.0 | Health and social work | 381.9 | 391.5 | Recreational. cultural and sporting activities | 128.7 | 133.7 | Activities of Party and of membership organizations | 210.3 | 198.1 | Community. social and personal service activities and private household with employed persons | 935.4 | 959.6 |
Figure 4: The division of labour from 15 years old by economic component
Looking at the figures, it is obvious that, the overwhelming of population in Vietnam take part in Agriculture and forestry, this number of people contributes a big amount of labour to the Vietnam’s agriculture; helping Vietnam to maintain the 2nd place for exporting rice in the world. The second factor that attracting labour is manufacturing. Because of the penetration of many foreign corporations to Vietnam and the rapid development of industry, the demand for the labour is higher and higher. The specific features of Vietnamese labour are low cost, hard working and experiences. These things have noticed the foreign recruitment and as a result, more and more people leave agriculture to take part in the industry. The third sector that has a big number of labours is trading and services with 5,135,500 thousand of people in 2008 and this number has increase a little bit to 5,275,700 thousand people in 2009. The reason for this rise is the demands of the development economy and people’s living standard are bigger and bigger, so it needs more and more people to provide variety of services. However, there are some sectors that do not attract people to take part in. One of them is scientific activities and technology. There are only 26,800 thousand people out of 47,743,600 thousand people in labour age. Because of the low development of this field and people who work in this part often have less benefit compared to the other so most of Vietnamese labours do not have any incentive to apply for a job in this subject.
II.1.2.3 Capital resource
Capital is the economy’s stock of physical assets such as machinery and plant installed in manufacturing firms, the premise and offices of all types of business and also the social infrastructure of roads and sewers commonly provided by the government (BPP Professional, 2004, p.131)
Foreign Direct Investment (FDI) and Official Development Assistance (ODA) are two main capital sources for developing countries. Vietnam now is a member of WTO so this country is more and more attractive with foreign investor and Vietnam is supported a lot by these two kinds of capital. Figure 5: Attracting FDI in 2010 (data from FIA, GSO)
(http://vnexpress.net/ )
The blue bars in the chart below show the amount of register capital and the red bars illustrate the completed FDI in 2010. Counting only in 2010, the amount of register FDI is quite high with $3,675,000 million in April but the completed capital is just only $1,400,000 million is the highest. FDI sources are invested in all of fields for developing the economy such as industry, infrastructure, transportation, real estate, etc. Specifically, $2.87 billion was used for food industrial, producing electricity industrial used $2.2 billion and at the third place, real estate was invested $1.78 billion. About the ODA, looking at the pie chart below; it is easy to realize that the overwhelming amount of ODA was used for education but only 4% of ODA was used for environment. To summary, the government should have solutions to use FDI sources and ODA sources more effective.

Figure 6: Allocating ODA capital in 2008
(data from vntrade.com)
II.2 The impact of social welfare and industrial policy initiatives on Unilever and the wider community
II.2.1 Social welfare policy
II.2.1.1 Definition of Social Welfare policy
Social welfare policy seeks to protect and directly improve people’s standard of living. Social welfare policy includes: old age programs, unemployment, sickness/disability, social assistance/poverty alleviation, health/medical care, environmental policy (BPP, Professional, 2004, p.158)
II.2.1.1.1 Social welfare policy in Vietnam
Social welfare is more and more common in Vietnam today. According to the data in 2000, the government spent 24% of total budget on social welfare. Nowadays, this number has increased to 30%. The main objects of social welfare in Vietnam are unemployment, poverty alleviation, health/medical care and old age program (pension). In this report, health/medical care will be mentioned
The government has concerned specially about people’s health care, this is an important mission in attempt to improve population’s living standard. Most of precincts and villages in all provinces and cities of Vietnam have medical stations, 65% of them have doctors. Recently, the regulation of treating freely for the poor and children who are fewer than 6 years old has been done. It had made a good effect on the community. In addition, avoiding and solving efficiently some serious diseases like SARS, H1N1 and HIV/AIDS are the goals of Vietnam’s social welfare policy (http://www.tapchicongsan.org.vn)
II.2.1.1.2. The impacts of social welfare policy on Unilever and the wider community
Nowadays, social welfare is not only important with society but also plays a vital role in organization’s activities. This is true with Unilever Vietnam, too. In case of a manufacturing company, employees’ health is caring much by the manager. There were many health programs have been organized for Unilever’s employees.“In 2006, Unilever Vietnam established the Safe Driving Teams initiative that identified local risk, then developed and implemented tough safe driving standards” (unilever.com, 2010). They were received a lot of support from the people who involved.
With the community, Unilever has contributed a big part to improve people’s health. In 15 years operating in Vietnam, Unilever is evaluated as a leader in activities of caring and improving Vietnam’s community. The company has spent a big budget on public health with some famous campaign like “P/S bảo vệ nụ cười Việt Nam”, “Lifeboy”, etc. In 2004, Unilever Vietnam Foundation granted 600 million VND for 4 health projects. In 2005, after researching, UVF decided to increase the budget with the total money is 2 billion VND for 8 projects and 2.9 billion VND in 2006 with 14 projects (http://vietbao.vn)
II.2.2 Industrial policy
II.2.2.1 Definition of industrial policy
Industrial policy allows government to take an active role to support investment, to encourage a faster rate of economic growth in industry, to halt the decline of the manufacturing sector (BPP Professional Education, 2004, p.155).
Joining WTO in 2006 means Vietnam can have many opportunities to approach the world’s economy. The trading is easier and diversity, Vietnamese products have the chance to go over the world. Relying on that, Vietnamese economy can develop quickly and efficiently. However, the more opportunities Vietnam can have, the more challenges this country may face. Joining with the world’s economy means that Vietnam has to competitive with many problem like brands, prices, quality of goods from Australia, America, China, Japan, etc. As a result, to exist and having position in the world’s market, the country’s government need to establish the right industrial polices.
Industrial policy consists: investment in human capital and infrastructure development in Vietnam. In this report, the industrial policy on infrastructure development in Vietnam will be mentioned.
According to the evaluation of World Bank, infrastructure of Vietnam nowadays has a new face and development rapidly. Up to 2005, the total length of national road in Vietnam is 17,300 km. The national road 1A from Huu Nghi Quan to Nam Can, with the length of 2.298 km was improved in 2005; reach the standard of road with 4-6 lanes, national road 1A from Hoa Lac (Hanoi) to Binh Phuoc (Ho Chi Minh City) is 1,700km also reach the standard with 2 lanes. About the railway, the railway system in Vietnam is old and need to improve for the quick development of the economy and transportation. Vietnam’s electricity system is changing day by day with the spring of many electric factories include hydroelectric plant and thermo-electric with the capital up to thousand billions VND. The infrastructure in urban, especially in big cities is improved more and more. Many skyscrapers building have been built with the purposes of using office, shopping mall and resident for people.

II.2.2.2. The impact of industrial policy on Unilever and wider community

With the incessant development of infrastructure in Vietnam, it is obvious that every firm especially manufacturing company like Unilever can take many advantages. The transportation system grows that means the delivery of raw material, output products, information and all things which relate to the business of the company are direct and fast. Particularly, sort of raw material for producing, Unilever has imported from abroad, thus, the transportation system is very important with Unilever’s operations. In addition, the ever-spring of modern buildings bring the convenience, professional working environment to Unilever’s staffs. For example, the head office of Unilever Vietnam in Ho Chi Minh city is placed in a 10,000m2 area in Phu My Hung with modern information technology system, a 3 floors building, sport centre, canteen and fresh air surrounding. Unilever’s staffs are really satisfied with their environment working in Vietnam.

The infrastructure policy not only impact on Unilever but also on the wider community. According to the data of World Bank in 2006, the money Vietnam spent on infrastructure made up 10% of GDP. This is the signal which indicates that the government has cared a lot about the infrastructure of the country. The real shows that many schools, hospital and public projects have been built; transportation system like railways, road, air line have been repaired and improved, bring the convenience in moving to the citizens.
II.3 Evaluate the impact of macroeconomic policy measures and the influence of the global economy on Unilever and stakeholders in Vietnam
II.3.1 The “Macroeconomic policies and it tools”, and the impact of macroeconomic policies on Vietnam economy
II.3.1.1 The “Macroeconomic policies and it tools”
Macroeconomic policy is a government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary (Mary Esmenda, 2010). Macroeconomic policies include fiscal policy and monetary policy.
Fiscal policy is the decisions that are made about tax rates and government spending (Mary Esmenda, 2010).
With monetary policy, Business organisations pay interest on borrowed money. The interest rate can be changed by the government and the central bank according to the monetary policy (Mary Esmenda, 2010).
II.3.1.2 The impact of macroeconomic policies on Vietnam
According to the representative of World Bank in Vietnam, the inflation rate of Vietnam in 2010 is quite low, that means the policies of the government are very effective. Vietnam is developing with the right direction, the government to maintain this instruction. However, the government and the central bank should manage and monitor more strictly to avoid the risk happened suddenly. Furthermore, the government need to tighten the monetary policy and improve the fiscal policy for more positive results.
II.3.1.2.1 Fiscal policy
Fiscal policy is related to taxation and other income source, government spending, borrowing whether spending exceeds income and repaying debt when income exceeds expenditure. Vietnam is evaluated as a country has high rate tax compared to the other countries in the region. Tax system of Vietnam consists: Import Tax, Corporation Tax, Income Tax and Import Tariff and Quotas Tax. Import tax of Vietnam is very high, especially with the high technology products like computers, mobile phones, laptops and cars. The import cars tax of Vietnam is the highest rate in the same region. About the income tax, the income tax of firms is 25% of revenue, for individual income (after minus insurance) tax will make up 5% if the salary is lower than 5 million VND, from 5 to 10 million VND, the tax will be 10% and the highest rate is 35% with salary higher than 80 million VND. Unilever is one of corporations which apply this policy quite efficient. From establishing in Vietnam in 1995 up to now, Unilever is always the company which pays tax fully and follow the policy. This firm has paid approximate 3,841 billions of total accumulation for taxation. Furthermore, Unilever also has to pay tax for their raw input material. As a result, any change of policy from the government absolutely affects the firm and its stakeholders. For instance, if the import tax higher, it will lead to the rise of output products because the prices of input raw material is high, the stakeholders like customers will be affect, they will have to buy products with higher prices. Therefore, the customer may choose other brands for their benefits. At that time, the firm is affected, too, they can be loose their customers that means loosing profit. Another example for the impact when the tax is changed, if the government change the income tax, the final income of employees will be influenced, it may be higher or lower depends on the raise or the fall of income tax.
II.3.1.2.2. Monetary policy
Monetary policy related to interest rates, exchange rates, controls of the money supply and controls over bank lending and credit. The Vietnam government has changed the interest rate recently. This event can make a quite big affect with Unilever. Unilever is a big corporation and obviously, it will carry out many projects. Therefore, if they want to run these projects, they have to make a loan, if the interest rate is high; they have to pay more money. On the other hand, when the interest rate is high, people prefer to keep their money in the banking not for investing in business activities. This is also a disadvantage for the firms like Unilever which wants to attract more and more investors. Exchange rate also plays a vital role in Unilever’s operation. Because of the import raw material, Unilever has to pay for them by dollar so if the exchange rate is high, they have to pay a lot for the input material. It will lead to the rise in output product’s cost. Everything which is related to these factors will be affected too. Business operation will be more difficult to control. Thus, Unilever’s managers need to be flexible with any change of the policies.
II.3.2. Global Economy/ Globalization and their influence
Globalization is the process by which national economies become increasingly integrated, often as a result of power wielded by Trans - National Corporation (TNC) (Mary Esmenda, 2010). With the rapid development of technology, it seems that the world become flat, the distance between people in over the world is shorter. In business, the trading become easier, the connection between customers and supplier is unlimited. But, besides the advantages that globalization brings to people, it is also the reason for many bad impact on social life such as shock culture or the developing countries have to receive all the garbage like industrial garbage, medical garbage from the wealth countries eliminate. In term of business, globalization is also the reason for global economic crisis. This event has affected directly to the Vietnam’s economy. Because of the crisis, the capital resources which invest in Vietnam have decreased, the risks of economy have raised too, worries about losing the value of money is very high. Generally, all fields in the economy are affected by the crisis. During this period, Unilever incurred a small decrease in sales, profit and revenue.

CONCLUSION
This report has showed the comprehensive view about Unilever and its operation in Vietnam. Unilever is a big multinational corporation in the world. Joining Vietnam’s economy since 1995, Unilever had operated successfully in providing personal care product, home care product and food for Vietnamese customers. Beside the impression in business that Unilever has achieved, this company is also known as a firm which always contributes and accompany with the development of Vietnam’s economy as well as the Vietnam’s community.
Furthermore, this report had also indicated the economic system in Vietnam, the way the government allocates the production resource (land, labour and capital). It also talked about the social welfare policy, industrial policy and their impacts. Macroeconomic policy was mentioned in this report, too. Finally, globalization was discussed and evaluated its affects on Vietnam’s economy and Unilever.

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