Vietnam: Country Risk Analysis
Student name and ID:
- Nguyen Thu Giang : 1371770
- Le Thai Huong : 1371778
- Dao Thi Tuyet Nhung : 1371783
- Dinh Ngoc Dzung : 1371767
Class: MBA Troy 5
Instructor: Dr. Anald Krishnamoorthy
INTERNATIONAL FINANCE
FIN 6633
Hanoi, December 2012
RESEARCH PAPER
VIETNAM COUNTRY RISKS OVERVIEW
INDEX
| | A. INTRODUCTION | | B. VIETNAM COUNTRY RISKS ANALYSIS | | 1. Political Risks | | 2. Financial Risks | | 3. Geographical Risks 4. Environment and Social Risks 5. Attractiveness of Vietnam | | 6. SWOT Analysis | | C. RECOMMENDATION FOR INVESTORS IN VIETNAM | | D. REFERENCES | |
A. INTRODUCTION
Vietnam is a transition economy moving from a centrally planned to a market economy. This implies large structural reforms. It is accompanied by a major investment effort in order to increase production, improve infrastructures and enhance productivity and competitiveness. In parallel, Vietnam has adopted a strategy aiming at private sector development and a further integration into international trade.
The rapid economic development has resulted in an acceleration of urbanization and industrialization, while Vietnam became also a major exporter of agricultural commodities (rice, coffee…), offering large and attractive opportunities for international companies. Vietnam’s strategy will be pursued, as indicated by the Socioeconomic Development Strategy for 2011-2020 adopted in January 2011.
However, Vietnam has registered a visible slowdown in economic growth over the past few years, and is confronted with more difficult cyclical and structural challenges. Over the short-term, a tighter monetary policy and likely step-by-step depreciation of the Vietnamese Dong are going to constrain demand and weigh on the price advantage of imported products. In parallel, the banking sector is weak and may have to go through substantial changes. No major economic or
- Nguyen Thu Giang : 1371770
- Le Thai Huong : 1371778
- Dao Thi Tuyet Nhung : 1371783
- Dinh Ngoc Dzung : 1371767
Class: MBA Troy 5
Instructor: Dr. Anald Krishnamoorthy
INTERNATIONAL FINANCE
FIN 6633
Hanoi, December 2012
RESEARCH PAPER
VIETNAM COUNTRY RISKS OVERVIEW
INDEX
| | A. INTRODUCTION | | B. VIETNAM COUNTRY RISKS ANALYSIS | | 1. Political Risks | | 2. Financial Risks | | 3. Geographical Risks 4. Environment and Social Risks 5. Attractiveness of Vietnam | | 6. SWOT Analysis | | C. RECOMMENDATION FOR INVESTORS IN VIETNAM | | D. REFERENCES | |
A. INTRODUCTION
Vietnam is a transition economy moving from a centrally planned to a market economy. This implies large structural reforms. It is accompanied by a major investment effort in order to increase production, improve infrastructures and enhance productivity and competitiveness. In parallel, Vietnam has adopted a strategy aiming at private sector development and a further integration into international trade.
The rapid economic development has resulted in an acceleration of urbanization and industrialization, while Vietnam became also a major exporter of agricultural commodities (rice, coffee…), offering large and attractive opportunities for international companies. Vietnam’s strategy will be pursued, as indicated by the Socioeconomic Development Strategy for 2011-2020 adopted in January 2011.
However, Vietnam has registered a visible slowdown in economic growth over the past few years, and is confronted with more difficult cyclical and structural challenges. Over the short-term, a tighter monetary policy and likely step-by-step depreciation of the Vietnamese Dong are going to constrain demand and weigh on the price advantage of imported products. In parallel, the banking sector is weak and may have to go through substantial changes. No major economic or
References: 1. Country Watch (2012), Vietnam Country Overview 2012. 2. AMB (2012), Vietnam Country Risk Report, 26/10/2012. 3. Nguyen Nhu Binh (2010), The Recent Economic Situation of Vietnam and Investment Risks, 12/2010. 4. TAC (2011), Vietnam Country Risk & Opportunity, 4/2011. 5. Transparency International (2012), Overview of corruption and anti-corruption in Vietnam, 27/01/2012. 6. SEB (2011), Vietnam Country Risk Analysis, 22/03/2011. 7. Views Wire (2012), Social Unrest, http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads, available at 01/12/2012. 8. John Ruwitch (2012), Reuters, Key Political Risks in Vietnam, 01/2012.