External Analysis P&G

Topics: Vietnam, Ho Chi Minh City, Ho Chi Minh Pages: 4 (1403 words) Published: April 3, 2013
Part 2.1 External analysis
a. Macro- environment analysis of P&G in Vietnam
According to Mr. Emre Olcer, General Director of P&G Vietnam, Vietnam is one of the priority markets of P&G. Up to now, P&G's investment in Vietnam has increased three times, reaching over $ 200 million in 2012 and will continue to increase in the next years. Vietnam provides foreign enterprises with several favorable conditions.

PEST analysis
* P- Political
* Vietnam is the nation having a stable political system with safe living environment, guaranteed security. * Overall administrative procedure has been reformed in Vietnam over the past 10 years, especially in the last 3 years, since the start of the implementation of the Scheme 30. These changes in the state bureaucracy, complex procedures enable foreign firms to enter Vietnam market and operate more conveniently. * E- Economic

* Vietnam has undergone an unstable macroeconomic situation since 2007 and it has become worse in the years of 2011 and 2012. Two of the most serious problems are bad debt rampant and poorly performing state-owned enterprises. In addition, the government has implemented strict managerial policies on business activities such as: pricing, import restrictions, limited number of business enterprises and broadcast programs, which causes difficulties for business, particularly foreign firms. * The tight fiscal policy and monetary policy of the Government have achieved significant effects based on the macroeconomic indicators, however, maintaining this growth momentum in the coming year is not easy. European enterprises are concerned that this difficult macro-economic situation will continue to be worse in the first six months of 2013. There are too many negative signs to settle immediately, such as a drop in the labor force, the decline in real estate prices and the risk of bankruptcy of enterprises... * S- Social

* Vietnam hold a potential source of young...
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