PEST analysis of Vietnam
· government type: Vietnam is known as a Socialist Republic. · freedom on economy: Vietnam has not high economic freedom, which score is 51.0. Even though the index of Vietnam can not compare with western developed countries’, however since 1986 the government implement open-door to the outsider world policy, making Vietnam becoming to an open country and attracting increasingly investors’ attention and opportunities. · Political Stability: Vietnam is an independent, socialist republic country, governed by the only power: Communist party of Vietnam----contribute to the stable and safe environment. · Taxation on inflation: As inflation in Vietnam has been rising recent years, however the first quarter in 2013 the index take a turn for the better, lower the before inflation index. And at the same time, Vietnam government has come up with several measures to compensate for the increase in inflation. · Trade regulations and tariffs: Vietnam has joined the Association of Southeast Asian Nations(ASEAN) in 1995, Vietnam’s trade policy is the same as other members’ of the ASEAN. · Pricing Regulations: Generally there are no control on prices in Vietnam before 2006, however in 2006, Vietnam introduced a set of relatively comprehensive transfer pricing regulations effective and made revisions in 2010. In 2012, the National Assembly approved the Amended Tax Administration Law, effective July 1,2013. In addition, Vietnamese tax authorities are also putting considerable effort into “capacity building”, including providing training for its tax officers. · Economic factors:
· The economy of Vietnam has been through a transformation the last 30 years, Vietnam has evolved from a disorder and poverty society to an efficient agricultural economy and recently focus...
References: 1. Country Profile: Vietnam, ASEAN Commission, http://ec.asean.eu/ invest-in-research/pdf/download_en/psi_countryprofile_Vietnam.pdf
2. Economy of the Vietnam, Wikipedia, http://en.wikipedia.org/wiki/ Economy_of Viernam.
3. Vietnam, The World Factbook, https://www.cia.gov/library/publications/ the-world-factbook/geos/ei.html#Econ
4. Vietnamese Agricultural Land Research, Stewart Brand, King, 2008-10-08.
5. List of companies of Vietnam, Wikipedia, http://en.wikipedia.org/wiki/ List_of_companies_of_Vietnam.
6. Exporters in Vietnam, Vietnam Exporters Association, 2011-06-01
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