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Published September 2012
PESTLE Analysis of Vietnam 2012
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PESTLE Analysis of Vietnam 2012
Background: The Vietnamese economy grew much faster than the global GDP during 2001-2011 and is expected to continue the same growth momentum and grow to an estimated $206.2 billion at the current prices by 2017 with a CAGR of 6.68% over the next five years. The open investment climate and further liberalization of the services sub-sectors provides huge potential for investment in the economy. Lucintel, a leading global management consulting and market research firm, has performed PESTLE analysis of Vietnam and offers its findings in its comprehensive research report, "PESTLE Analysis of Vietnam 2012." The country has achieved significant economic growth due to its economic reforms but also faces serious challenges such as inflation and continuous currency devaluation. Lucintel’s research indicates that one of the major challenges of Vietnam is the persistent trade deficit faced by the country. Vietnam recorded a trade deficit of $9.84 in 2011. The increasing trade deficit has led to serious challenges in the country such as increasing current account deficit, increasing fiscal deficit, and increasing public debt. Vietnam is highly vulnerable to external shocks as the country is highly dependent on FDI for its economic growth. Despite the shortcomings, the cheap labor and political stability makes Vietnam favorite destinations for global investors. Vietnam’s labor costs rank the second lowest in Asia followed by Cambodia. Vietnam is one of the fastest emerging economies of Southeast Asia which has shown a sustainable growth in the last five years. The country is at an advantage in terms of its demographics, which support its continued growth in domestic consumption. Approximately 70% of the total population is under 40 years of age which will be a driver of consumer spending in the coming years. This unique report from Lucintel will provide you with valuable information, insights and tools needed to identify new growth opportunities and operate your business successfully in this market. This report will save hundreds of hours of your own personal research time and will significantly benefit you in expanding your business in this market. In today’s stringent economy, you need every advantage that you can find.
Features of This Report: To make business, investment, and strategic decisions, you need timely, useful information. This market report fulfills this core need and is an indispensable reference guide for multinational materials suppliers, product manufacturers, investors, executives, distributors, and many more that operate in this market. Some of the features of “ PESTLE Analysis of Vietnam 2012” include : • Trend and forecast of real GDP growth rate of Vietnam • Trend of savings and investments as well as consumption expenditure in percentage of GDP
of Vietnam • Trend of consumption expenditure as percentage of GDP in Vietnam • Trend of growth of population and unemployment rate in Vietnam • R&D and technological factor of Vietnam 2012
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PESTLE Analysis of Vietnam 2012
More than 19 figures/charts and 12 tables are provided in this roughly 60-page report. Sample charts with random data are presented below
GD
P G
row
th R
ate
(%)
Trend of Real Growth Rate 2001-2011 - Random Data
2012 2013 2014 2015 2016 2017
Re
al
GD
P G
row
th R
ate
(%
)
Forecast of Real GDP Growth Rate - Random Data
Share of Different Sectors of GDP 2011: US $Billion - Random Data
Agriculture
Mining
Manufacturing
Construction
Electricity, Gas andWaterTrade
Accomodation andRestaurantTransport, Storage,CommunicationFinance
Real Estates
Education
Others
Sha
re o
f S
avin
g a
nd I
nves
tmen
ts I
n G
DP
(%)
Trend of Saving and Investments as Percentage of GDP - Random
Data
Saving as percentage of GDP
Investments Percentage of GDP
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PESTLE Analysis of Vietnam 2012
For
eign
Tra
de (
US
$B
illio
n)
Trend of Vietnam's International Trade Structure - Random Data
Exports
Imports
Tradebalance
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011S
harr
e o
f C
onsu
mpt
ion
Exp
endi
ture
in
GD
P(%
)
Trend of Consumption Expenditure as Percentage of
GDP - Random Data
Total FinalConsumptionExpenditureas% of GDP
Private FinalConsumptionExpenditureas% of GDP
GovermmentFinalExpenditureas% of GDP
2008 2009 2010 2011
For
egin
Dire
ct I
nves
tmen
t by
In
dust
ry (
US
$M
illio
n)
FDI Inflows by Industry -Random Data
Other Services Mining and Quarrying
Manufacturing Construction
Wholesale and Retail Trade Financial Activities
Information and Communication Agriculture, Forestry and Fishing
Total FDI
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PESTLE Analysis of Vietnam 2012
Who Can Benefit From This Report? This study is intended for senior level executives, sales, marketing and business development professionals at various nodes of value chain of this market. This multi-client market study from Lucintel is used by small to multi-national Fortune 500 companies and utilized for a variety of reasons as follows.
Business development Strategic planning Business presentation Determination of market size and trend Competitive analysis Resource and inventory management Budgeting Investment decisions
Research Methodology: Lucintel has been closely tracking and conducting research on and for the composites and other segments since 1998. This research project was designed for the purposes of determining the investment opportunities in Vietnam. To determine the industries and Metro which are having sufficient opportunities. In order to ensure fairness with our analysis, we compared several factors in order to align the current performance and, more importantly, the future prospects. This study is a culmination of 7 months of full-time effort performed by Lucintel's analyst team. Our analysts used the following sources for the creation and completion of this valuable report: • Political, Economic, Social, Technological and legal analysis of Vietnam economy. • In-depth secondary research from financial statements and annual reports of the Vietnam
National Bank • Extensive search of current published literature, market and database information including
industry news, company press releases, and customer intentions.
A compilation of the experiences, judgments, and insights of Lucintel's professional network, who have analyzed and tracked the economic study of the country. Lucintel collects a significant amount of uninterpreted data from a variety of sources and converts this into intelligent data as follows. The intelligent data is used by our clients for making confident business decisions. The figure below is a graphical representation of the end-to-end Lucintel research process.
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PESTLE Analysis of Vietnam 2012
Table of Contents
1. Executive Summary 2. Vietnam's Political Analysis
2.1: Structure and stability of government 2.2: Government policy agenda 2.2.1: Political agenda
3. Vietnam's Economic Analysis
3.1: Sectoral contribution to GDP and Real GDP growth rate 3.2: Pricing trends - inflation and interest rates 3.3: Consumption, saving, and investment trends 3.4: International trade and its contribution to GDP 3.5: Foreign direct investment by industry
4. Vietnam's Social Analysis
4.1: Social and demographic analysis 4.2: Labor market 4.3: Social development index
5. Vietnam's R&D and Technological Factors
5.1: R&D expenditure in Vietnam 5.2: Impact of technology in industry 5.3: Technology policy
6. Vietnam's Legal Analysis
6.1: Corporate law 6.2: Tax law 6.3: Recent economic policies 6.4: Doing business in Vietnam 2012
7. Vietnam's Environment Analysis
7.1: Government action against environmental issues 7.2: Environmental policy
8. Vietnam's SWOT Analysis
List of Figures
Chapter 3. Vietnam’s Economic Analysis
Figure 3.1: Trend of real GDP growth rate Figure 3.2: Forecast of real GDP growth rate Figure 3.3: Trend of GDP at current prices Figure 3.4: Trend of GDP growth and IIP Figure 3.5: Trend of Per capita income
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PESTLE Analysis of Vietnam 2012
Figure 3.6: GDP sectoral contribution Figure 3.7: Share of different sectors to GDP Figure 3.8: Trend of inflation and interest Rate Figure 3.9: Trend of savings and investments as percentage of GDP Figure 3.10: Trend of consumption expenditure as percentage of GDP Figure 3.11: Trend of Vietnam’s international trade Figure 3.12: Trend of exports and Imports as percentage of GDP Figure 3.13: Trend in FDI registered and implemented capital Figure 3.14: Foreign direct investment by industry
Chapter 4. Vietnam’s Social Analysis
Figure 4.1: Geographical location of Vietnam Figure 4.2: Trend of population and population growth rate Figure 4.3: Population age structure by 2017 Figure 4.4: Trend of unemployment rate in Vietnam
Chapter 5 Vietnam’s R&D and Technological Factor
Figure 5.1: Trend of R&D expenditure in Vietnam
List of Tables Chapter 1. Executive Summary
Table 1.1: Factors Affecting Business in Vietnam Chapter 2. Vietnam's Political Analysis
Table 2.1: Political Factors and Its Impact on Business Chapter 3. Vietnam’s Economic Analysis
Table 3.1: FDI limits by industry Table 3.2: Economic factors and its impact on business
Chapter 4. Vietnam’s Social Analysis
Table 4.1: Corruption, GINI, and human development index Table 4.2: Social factors and impact on business
Chapter 5 Vietnam’s R&D and Technological Factor
Table 5.1: Technological factors and its impact on business Chapter 6. Vietnam's Legal Analysis
Table 6.1: Income tax slab of Vietnam Table 6.2: Indicators for starting up business Table 6.3: Ranking for procedures of starting up a Business Table 6.4: Legal factors and its impact on business
Chapter 7. Vietnam's Environment Analysis Table 7.1: Environmental factors and its impact on business
