...help MNCs to reduce the fixed cost, as transferring into variable cost. In another hand, BPO is considered to be a good way to focus on firm’s core competencies. In addition, this process also may increase the speed of business processes. Based on these factors, BPO may help MNCs grow faster without the huge capital requested. At the same time, this process also brings limitations for MNCs, such as the higher risk level, which could be caused by both privately or structure of firm. Risks and treats of outsourcing must therefore be managed, to achieve any benefits. 2.0 Investment Market Analysis Vietnam is viewed as a viable alternative to China for foreign (particularly U.S. and European) companies seeking to establish or increase their lower-cost manufacturing capacity, which keeps the second biggest supply-chain in group’s Asia factories. The reason of company should increase the outsourcing in Vietnam as following. 2.1 Economic situation Firstly, most of the...
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...Quan Nguyen [Email address] Quan Nguyen [Email address] International Investment – Group 8 Instructor: Mrs. Phạm Thị Mai Khanh Members: Đặng Minh Ngọc (Leader) 1211150110 Lê Tuyết Nhi 1217150114 Đinh Mai Hương 1217150059 Nguyễn Thanh Nga 1214150105 Hồ Bích Phương 1217150120 Nguyễn Thị Ngọc Quỳnh 1217150124 International Investment – Group 8 Instructor: Mrs. Phạm Thị Mai Khanh Members: Đặng Minh Ngọc (Leader) 1211150110 Lê Tuyết Nhi 1217150114 Đinh Mai Hương 1217150059 Nguyễn Thanh Nga 1214150105 Hồ Bích Phương 1217150120 Nguyễn Thị Ngọc Quỳnh 1217150124 ODA & public debt in vietnam [Document subtitle] ODA & public debt in vietnam [Document subtitle] Contents Introduction 2 I. Situation of ODA in Vietnam 3 1.1. The Attraction in ODA in Vietnam 3 1.2. Using and Managing ODA in Vietnam 6 II. Public Debt in Vietnam 11 2.1. The origin of Public Debt in Vietnam 11 2.2. The fact of public debt in Vietnam 13 2.3. The impact of government debt 14 III. The relation between ODA and Public Debt in Vietnam 16 Conclusion 18 Table | Name | Page | Table 1 | The commitment, signed and disbursement of ODA over the period | 5 | Table 2 | The ODA’s contribution to GPD growth | 9 | Introduction The United Nations Millennium Declaration explicitly recognized the role of ODA in the development process and committed industrialized countries to “grant more generous development assistance”...
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...Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam, as well as potential modes of entry, we may conclude a recommendation for Augusta Textile Industry’s future potential expansion. Introduction Country Basics Vietnam is formally known as the Socialist Republic of Vietnam and is located in the South China Sea. It is the thirteenth most highly populated country in the world (Hossain, 2010). The current population of Vietnam is estimated at about 90.4 million (The Heritage Foundation, n.d.). There are 54 officially recognized ethnic groups in Vietnam, but the majority are Viet (also known as “Kinh”), comprising of about 86% of the total population. Other significant ethnic groups are the Tay, Thai, Muong, Khome, and Hoa. The vast majority of the Vietnamese population speaks the Vietnamese language, but French is spoken on a small scale. English is the second language in larger metropolitan areas, especially in areas like Hanoi and Ho Chi Minh City (“An Investment Guide,” 2011). Vietnam is divided into 59 provinces and on a cultural level, there are three Vietnams associating with three...
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...Doing Business in Vietnam: 2009 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. • • • • • • • • • • Chapter 1: Doing Business In Vietnam Chapter 2: Political and Economic Environment Chapter 3: Selling U.S. Products and Services Chapter 4: Leading Sectors for U.S. Export and Investment Chapter 5: Trade Regulations and Standards Chapter 6: Investment Climate Chapter 7: Trade and Project Financing Chapter 8: Business Travel Chapter 9: Contacts, Market Research and Trade Events Chapter 10: Guide to Our Services 3/3/2009 Return to table of contents Chapter 1: Doing Business in Vietnam • • • • Market Overview Market Challenges Market Opportunities Market Entry Strategy Market Overview Return to top • Vietnam is a true emerging market, offering ground floor and growing opportunities for U.S. exporters and investors. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding annually at 7-8.5 percent, while industrial production has been growing at around 14-15 percent per year. Vietnam’s macroeconomic challenges and the global financial crisis dampened this growth in 2008 and will continue to do so in 2009. • In response to significant macroeconomic challenges, including high inflation and a large and growing current account deficit, the...
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...BUSINESS INTERNATIONAL INVESTMENT ASSIGNMENT SWOT ANALYSIS IN INVESTMENT TARGETING: The case of Vietnam Instructor: Phạm Thị Mai Khanh (M.A., LL.M.) 1. LƯƠNG VĂN ĐẠT | 1211150027 | 2. BẠCH QUANG TRƯỜNG | 1217150149 | 3. NGUYỄN VĂN TÙNG | 1217150154 | 4. NGUYỄN VĂN TUẤN | 1211150151 | 5. NGUYỄN NHƯ NGUYÊN AN | 1214150006 | 6. NGUYỄN TIẾN ĐẠT | 1217150028 | 7. NGUYỄN MINH ĐỨC | 1214150034 | Hanoi, December 2014 Table of Contents ABSTRACT 4 I.Policy framework 5 1.Strengths 5 2.Opportunity 7 II.Economic factors 9 1.Strengths 9 2.Weaknesses 13 3.Threats 15 III.Business facilitation 19 1.Weaknesses 19 2.Opportunities 21 APPENDIX: Playing roles 23 I.Phase 1 23 II.Phase 2 24 III.Phase 3: Evaluating 31 IV.Phase 4: CONCLUSION 37 REFERENCE 39 list of figures Figure 1: Number of SOEs, 1992-2011 6 Figure 2: Vietnam ranked first for economic activity both sexes aged 25-29 amongst host countries in 2010 10 Figure 3: Monthly Wage Levels in Asia (US$) 15 Figure 4: Vietnam’s Private Sector Minimum Wage, 2008-2014, and 2015-2020 (est) 16 Figure 5: Global competitive Index 17 Figure 6: Main competitors of Vietnam in attracting foreign investment 18 List of tables Table 1: Regulatory Quality – Worldwide governance indicatiors (Percentage Rank (0-100) ). 6 Table 2:Vietnam's workforce by ecnomic component and by economic sectors,1990-2010 10 Table 3: Facts of Vietnam 2012 13 Table 4: Foreign...
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...Doing Business in Vietnam: 2011 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2011. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. • • • • • • • • • • Chapter 1: Doing Business in Vietnam Chapter 2: Political and Economic Environment Chapter 3: Selling U.S. Products and Services Chapter 4: Leading Sectors for U.S. Export and Investment Chapter 5: Trade Regulations, Customs and Standards Chapter 6: Investment Climate Chapter 7: Trade and Project Financing Chapter 8: Business Travel Chapter 9: Contacts, Market Research and Trade Events Chapter 10: Guide to Our Services Return to table of contents Chapter 1: Doing Business in Vietnam • • • • Market Overview Market Challenges Market Opportunities Market Entry Strategy Return to top Market Overview • Vietnam is a true emerging market, offering ground floor and growing opportunities for U.S. exporters and investors. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding at an average about 7.2 percent per year during the period 2001-2010, while industrial production grew at an average of about 12 percent per year during the same period. Vietnam registered GDP growth rate of 6.7 percent in 2010 and was one of only a handful of countries around the world to experience such levels of economic growth. Moving forward, inflation remains a main risk to Vietnam’s economy, which the Government...
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...Located in Southeast Asia, the Socialist Republic of Vietnam is bordered to the north by the People’s Republic of China, to the west by Laos and Cambodia, and to the east and south by the South China Sea. The country is a mere 127,000 square miles but has a population of almost 86.2 million. The language is Vietnamese, and the principal religion Buddhism, although there are a number of small minorities, including Confucian, Christian (mainly Catholic), Caodist, Daoist, and Hoa Hao. In recent years, the country’s economy has been up and down, but average annual per capita income still is in the hundreds of dollars as the peasants remain very poor. One of the reasons that Vietnam has lagged behind its fast-developing neighbors in Southeast Asia, such as Thailand and Malaysia, is its isolation from the industrial West, and the United States in particular, because of the Vietnam War. From the mid-1970s, the country had close relations with the U.S.S.R., but the collapse of communism there forced the still-communist Vietnamese government to work on establishing stronger economic ties with other countries. The nation recently has worked out many of its problems with China, and today, the Chinese have become a useful economic ally. And Vietnam is well on its way in establishing a vigorous trading relationship with the United States. Efforts toward this end began over a decade ago, but because of lack of information concerning the many U.S. soldiers still unaccounted...
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...FDI in Vietnam Textile and Garment Industry INTRODUCTION 1. Rationale of the Seminar The trend of internationalization of economic life is getting stronger in the whole world, which requires each country to exploit its advantages and apply to their particular conditions. Internationalization is creating many opportunities and countless challenges to the prosperity of every country. We can confirm that no country can exist without participating in the process of regionalization and globalization. To have rapid development, the country's economy have to take full advantage of the efficiency of the Foreign direct investment, which most countries consider as the most effective way to engage in the global competitive economy and effectively exploit the comparative advantages of the country. Vietnam has also implemented innovative reform of economical management mechanism under the motto "Vietnam wants to be friends with all countries on the basis of equality and mutual benefit". The accomplishments that we achieved on economic development, in general, and Vietnam Textile and Garment Industry, in particular, are highly appreciated with the great contribution of foreign direct investment. Vietnam Textile and Garment became one of 10 key export sectors of the country (ranked second only to crude oil), contribute greatly to the country's industrialization and modernization. Therefore, a comprehensive study of theoretical issues, evaluation of the practical results achieved in order...
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...PEST ANALYSIS Environmental scanning on Vietnam have to be done before the decision of internationalizing Prince Court expansion. It is important in the sense that environment scanning will directly and indirectly decide how Prince Court will fair in Vietnam. Important aspect at such political, economic, potential demands etc is being analyzed on. Political The effort of the Vietnam’s government plays an important role in determining the healthcare industry performance. With the underdevelopment of the healthcare in Vietnam, the government of Vietnam prioritize government spending on health care at the same time encouraged foreign investor invest in the Vietnam Healthcare industry with several ways such as through Private Partnerships (PPP), joint venture with local players in Vietnam. On top of that, investors enjoy a preferential corporate income tax of 10 per cent instead of the regular 25 per cent. In relation to the tax exemptions, exception of tax will be granted in the first four years and in the following nine years there will be 50 per cent tax break (HKTDC, 2015). Besides, investors are allowed to operate a 100 per cent owned hospital with the elimination of restricted policies such as foreign qualified doctors are free to practice and healthcare plans are allowed to offer (Austrade, 2015). This plays a crucial part to Price Court whether the decision of entering Vietnam with joint venture or wholly owned since the cost incurred will have a large differential...
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...enterprises in Vietnam are mainly conducted labor-intensive processes such as machining and assembly. Even the leading technology companies such as Intel Inside Sam Sung that have production facilities in Vietnam mainly produced components, as inputs to the process of creating a product in another country. Besides, a number of investment projects of China, one of the major partners of Vietnam, often use Chinese labor instead of hiring workers from VN 2. There is little technology transfer and management skill transfer into Viet Nam. Even Viet Nam becomes an industrial garbage after adopting out of date technologies. Investors tend to keep their “know- how” in secret. Channel 1: At a conference to summarize 25 years of new FDI was organized, Deputy Minister of Planning and Investment said Dao Quang Thu, 80% FDI technology used currently in Viet Nam is average, 5 6 % used is high-tech, 14% low and backward, there are individual cases using outdated technology. Technology transfer is mainly done horizontally - between business enterprises, with little change in the level and technological capacity. Despite the fact that there would be no corporations, they now carry the No. 1 technology, latest technology investment to other countries, however, the majority of FDI projects in Vietnam only average tech show FDI mainly to take advantage of cheap labor, investment in infrastructure in the form of production assembly line, or product improvements. Consequently, Vietnam businesses...
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...direct investment 2 2.1.2 Economic development 3 2.2 Related literature: The role of FDI in economic development 3 2.2.1 The radical view of FDI 3 2.2.2 The positive view of FDI impact 4 2.3 The impact of economic development 5 3. Case of study: the impact of FDI in garment industry and automobile industry in Viet Nam 7 3.1 Overview of FDI in Vietnam 7 3.2 Garment industry 8 3.3 Tourism Industry 9 3.4 Assess the impact of FDI in Vietnamese economic development 10 4. Conclusion 11 References 14 Appendices 17 1. Introduction to the study Foreign direct investment (FDI) is a concept that has emerged in recent decades. It was born with the trend of globalization and become an interesting topic for economic researchers. The evidence is that there are a large number of studies on this field, including case studies in specific country and cross-country analyses, single-dimensional and multi-dimensional studies, examinations in single-sector and multi-sector. However, until now there are still some debates about the issues related to this concept. One of the noticeable discussions is the relationship between foreign direct investment and economic development. This paper, to some extent, will review these studies about the relationship between foreign direct investment and economic development. In specific, it aims to answer the question: Is foreign direct investment necessary...
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...business in Vietnam 2014 Page 1 of 52 Content Page Foreword Country profile Business etiquette and travel Key trends and statistics Regulatory environment Establishing a business in Vietnam Opening up to Foreign Investment Finance Business entities Labour Financial reporting and audit 3 4 8 13 17 20 23 24 26 30 33 “Welcome to our Doing Business Guide which we hope will assist you in navigating this exciting but sometime difficult environment” Ken Atkinson, Managing Partner, Grant Thornton Vietnam Grant Thornton xxxxxxxx Page 2 of 52 Foreword 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. Grant Thornton Vietnam has prepared this guide to assist those interested in doing business in Vietnam. This guide does not cover the subject exhaustively. However, it is intended to answer some of the more important questions that may arise. When specific problems occur in practice, it will often be necessary to refer to the laws and regulations of Vietnam and to obtain the appropriate professional advice. This guide contains only brief notes and includes legislation in force as of 28 January 2013. We hope this guide helps you in learning about and understanding business in Vietnam. Should...
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...be rendering and the facts I have researched. Responsibilities I use my judgment in considering the potential and value of Vietnamese retail & distribution market. Unless you instruct me otherwise, I resolve such questions in your favor whenever possible. However, I cannot guarantee the outcome in the event of force majeure such as war, political crisis. Facts The following facts are based on my research on the Vietnamese macroeconomics and microeconomics as well as the available forms of legal entity under Vietnamese regulations. To specify, on the Vietnamese macroeconomics aspects: Population : 90,000,000 ( 90 million in 2013, source: generation family planning office for population of Vietnam ) , Vietnam is holding " gold retail index " compared with other countries in the world with 68 % of the population...
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...Entry strategy for Himalaya in Vietnam | Group Assignment (Group 2B) | | | 12/08/2012 | The Himalaya Company- Introducing our Animal Healthcare line in Vietnam Market study and entry strategy: The Himalaya Drug Company has been in the market of phtyo-pharmaceuticals for animal healthcare for quite a few years now. As compared to most other organizations which are in the chemical products segment, Himalaya’s products are created completely from natural products. They manufacture and export drugs for livestock, Poultry, Aquaculture, and domestic pets. As of today, the organization is expanding its market share within India and exports to over 82 countries. Target Country: We will be researching the feasibility of entering the animal healthcare sector in Vietnam. The country has a population of 86 million people and the economy has been growing at 7-8% for the past two decades. About 70% of the population earn their livelihood from agriculture and animal husbandry. Furthermore, about 60% of the agriculture segment is also dependant on livestock and poultry. From the Ministry of Agriculture and Rural Development (MARD), livestock in Vietnam exists mainly in two forms: industrial farms and farmer (family) households. In 2011, there were 23’000 farms and 8.5 million household farms country-wide. They consist of 10,100 pig farms, 8.7 cattle farms and 3,800 poultry farms. As seen, there has been a phenomenal increase in population which has more than matched the...
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...Vietnam’s Economic Growth in Renovation Period With the pressure of the economy sinking into economic crisis, the Party and the Government of Vietnam decided to intiate an ecomomic renovation policy in 1986. After over 15 years of reforming economy, Vietnam has gained progresses and important achievements widely recognised inside and outside the country. Overall, Vietnam has shifted from a centralized bureaucracy plan subsidized economy to a market-oriented one, from an economy massively developing state sector and groups to a diverse multilateral open economy, from an economy priotising heavy industries to an economy emphasizing 3 strategic econmic plans: food and foodstuff, consumer goods exports. The economic growing process in the past 15 years can be divided into the following periods : The 1986-1991 period It was the period of transition, having the most important meaning in the process of tranfering from a centralised planning mechanism to a market one in the context of severe socio-economic crisis in the early 80s. In this period, Vietnam had to face many difficulties and challenges. Foreign investment environment of Vietnam was quite open but some points in its foreign-investment laws were still inadequate and failed to meet the demands of foreign investors. Vietnam’s facility was outdated, not being suitable for its integration into the regional and the world’ecomony. The heavy bulky management mechanism with spead beraucracy was one of the great hinders to investors...
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