PESTEL Analysis

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Consequently the winter season in most parts of the country is dry. Major Vietnamese cities include Hanoi in the north, Ad Nag in the mid coastal region, and Ho Chi Mini City (formally known as Saigon) to the south. Vietnam has considerable energy resources such as oil, gas and coal and its 41,000 km long waterways provide the basis for hydrophone. The country is rich in minerals such as bauxite, iron ore, lead, gold, precious stones, tin, chromate, anthracite, granite, marble, clay, white sand and graphite.

In addition, Vietnam has a PESTLE Analysis By anthology’s inconsiderable tress and saltwater tuna, dense tropical trotters resources and it possesses great agricultural potential. The history of Vietnam, reference to the Geneva Accord signed in 1954. The accord ended French colonial rule, and the country was partitioned into the Democratic Republic of Vietnam, led by Ho Chi Mini and the Republic of Vietnam in the South. The capitals were Hanoi for the North and Saigon for the South.

Fights led by Ho Chi Mini to unite the country started in 1959 and lasted until 1975. Hanoi became the capital of the country whilst Saigon was renamed Ho Chi Mini City. Following reunification, the Vietnamese government’s initial plan was to manage the economy via methods of central planning. Based on experiences gained during the 1976-1980 five years plan, subsequent central plans introduced more relaxed policies with respect to agricultural collectives, State Owned Enterprises and allowed more scope for private initiatives.

These measures were instrumental in elevating poverty. Growth rates during the early ass’s were higher than during the 1976-1980 five year plan, however it became evident that further policy shift were necessary to enable the Vietnam economy to perform closer to its attention. Economic reform was the key point of discussion at the Sixth National Party Congress held in December 1986. The process then initiated of moving from a centrally planned economy to an open, socialist-oriented and multi-sector market economy known as Doi Mom (renovation).

Its current state constitution, which replaced the 1975 constitution in April 1992, asserts the central role of the Communist Party of Vietnam in all organs of government, politics and society. In 2011, Viet Name held the 1 lath Congress of Vietnam Communist Party, in which happened the Election of the Party Central Committee for the new term. Mr.. Unguent PH Throng was elected to be the General Secretary. After the Congress, there happened the fist Congress of the Parliament, term 13th, in which Mr.. Unguent Sins Hung was elected to be the President of the Parliament, Mr..

Truing Tan Sang the President of the Country, and Mr.. Unguent Tan Dung was elected to continue the position of Prime Minister. This Congress also issued 4 degrees: first, approving the State Budget, second, agreeing on the program of building laws and ordinances minion, third, beginning the study of the amendments and supplements of the 1992 Constitution and establishing the revised draft of the 1992 Constitution, and finally, the degree on the issuance of certain additional tax measures to remove difficulties for enterprises and individuals, contributing to economic development in 2011.

In 2011, the disputes over the East Sea was the main cause of some changes in relations between Vietnam and some important countries in the world, especially the Vietnam – China and Viet Name – S Tension in the East Sea NAS escalated due to China’s provocative acts in May, 2011. Then happened many anti-Chinese protests in Ha Non and Ho Chi Mini city. In this context, the relation between Viet Name and the U. S was proclaimed to be elevated to strategic partnership. And late 2011, the tensions in the Vietnam-China elation’s down to the visit by the senior officials of the two countries. In terms of politically domestic policy, the government kept a political stability, and showed some positive signs. For example, the freedom of the press seemed to be extended. In addition, the government was also more aware of its limitations and of the policy mistakes. Concretely, at the Fourth Conference of the Party Central Committee (X’), Mr..

Unguent PH Throng said: ?Besides the achievements, the Party building work still has many limitations and shortcomings, weaknesses, even spanning multiple defects; these limitations would reduce people’s trust in the Party; f not corrected, they will be the challenge for leadership of the Party and the survival of the regime. 2. Economy The year of 2011 was important for the economy of Viet Name because this is the first year in the latest Socio-Economic Development Strategy (2011-2020), with the goal of becoming an industrialized and modern economy by 2020.

This strategy goes on to identify the country key priorities to meet this ambitious target: stabilize the economy, build world-class infrastructure, create a skilled labor force, and strengthen market-based institutions. According to Vietnam Development Report (AVID) 2012, dieting these aspirations will not be easy. In fact, the country has experienced bouts of macroeconomic turbulence in recent years?double-digit inflation, depreciating currency, capital flight, and loss of international reserves?eroding investor confidence. Besides, rapid growth has revealed new structural problems.

The quality and sustainability of growth remain a source of concern, given the resource-intensive pattern of growth, high levels of environmental degradation, lack of diversification and value addition in exports, and the declining contribution of productivity to Roth. Vietnamese competitiveness is under threat because the power generation has not kept pace with demand, logistical costs and real estate prices have climbed, and skill shortages are becoming more widespread. And these difficulties strongly existed in 2011. Concretely, the inflation in 2011 was 18. 3%; the growth of GAP has slowed (5,89%). Domestic and international gold price gap increased. The Corruption index 2011 from Transparency International ranked Viet Name at the position 112. This shows that Viet Name has been faced one of the most difficult challenges of economic placement. In terms of financial, according to the document of World Bank, in 2011, foreign direct investment inflows (to Viet Name) continued at a steady pace, although new commitments declined. International reserves increased in the first half of the year while the Vietnamese dong benefited from a period of relative calm.

In the last quarter of the year, however, exchange rate fluctuations increased due to volatility in gold prices, deepening uncertainties and the seasonal increase in demand for foreign currency as the year end approaches. With approximate 9 billion U. S. Dollars, he amount of money coming from overseas Vietnamese was one of the biggest sources of foreign currency in 2011. This amount is equivalent to the amount of FAD. Hong Kong, Singapore, and Japanese are the countries that contributed investment to Viet Name in 2011.

Ha Dong, Ho Chi Mini city, and Ha Non are three places that has been most invested in recent time. The sectors that most attract the attention of foreign investors are processing industry, electricity supply, and accommodation and dining service. However, according to the analysis of a chief economist, Dry. Allan Pam, though facing the difficulties as mentioned above, the economy is coming to a better prospect in 2012, especially with a certain success in the fight against inflation of the country (the inflation has been trending down since the 4th quarter of 2011).

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