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时间:2014-09-24 16:59来源:www.grlmh.club 作者:yangcheng 点击:
PESTEL and SWOT analysis of Vietnam
Vietnam is approximately 331688 km2 in area and occupied the eastern coast of the Southeast Asian peninsula. The northern part of the country part consists mostly of highlands and the Red River Delta. The south is divided into coastal lowlands and extensive forests. Because of differences in latitude and the marked variety of topographical relief, the climate tends to vary considerably from place to place. During the winter or dry season (November to April), the monsoon wind blowing from the northwest brings considerably moisture. Consequently the winter season in most parts of the country is dry. Major Vietnamese cities include Hanoi in the north, Da Nang in the mid coastal region, and Ho Chi Minh 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 hydropower. 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 considerable fresh and saltwater fauna, dense tropical forestry 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 Minh 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 Minh to unite the country started in 1959 and lasted until 1975. Hanoi became the capital of the country whilst Saigon was renamed Ho Chi Minh 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 80’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 potential.
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 Moi (renovation). In 1992, the National Assembly revised the post-unification constitution to better reflect the aspirations articulated in the Doi Moi process. Economic performance since 1986 has justified the policy of relaxation of central control, the challenge faced by Vietnam has been the maintenance of rapid economic growth and integration into the global economy.
2.0 Analysis of Vietnam’s Political
Vietnam is a socialist country operating under the leadership of the Communist Party. A national congress of Vietnam’s Communist Party is held every five years determining the country’s orientation and strategies and adopting its chief policies on solutions for socio-economic development. The National Congress elects the Central Committee which in turn elects the Politburo. The last congress was held in April 2006.
2.1 The Communist Party of Vietnam
The Vietnam Communist Party is a political organization, it is essential to be discussed because of its critical role and deep involvement in the political and legal life of Vietnam.
Vietnam is control by the Communist Party. The party has a central role in shaping the country’s policy and legal system and maintains a firm control over all the government and social system. Its structure is parallel to the government’s structure and has close relation to the government. Its influence is reflected through the formation and election of the National Assembly, the operation of the administration, and the function of the judicial system. The Party also maintains its influence at all levels of the society through its affiliated organizations.
2.2 National Assembly
The National Assembly is the highest law-making body in the country. It comprises delegates who are elected for a five-year term from various strata of people and different ethnic groups in the country. The National Assembly is both the supreme state authority and the unique legislative body and has the power to promulgate and amend the Constitution and Laws. The National Assembly meets twice yearly.
2.3 The President of Vietnam
The current president of Vietnam is Mr Nguyen Minh Triet (refer to photo). The President, as the Head of State, is elected by the National Assembly from its members to represent Vietnam in domestic and foreign affairs for five-year tenure. The President has the right to proclaim Laws and Ordinances passed by the National Assembly and the Standing Committee. The President is the commander-in-chief of the armed forces and Chairman of the Council of Defense and Security. In foreign affairs, the President has the authority to appoint ambassadors and to sign international agreements and treaties. The President appoints and dismisses the Prime Minister and the members of the Government on the basis of resolutions of the National Assembly or its Standing Committee. Furthermore, the President has the right to nominate key officials such as the Chief Justice of the Supreme Court and the Chief Procurator of the Supreme Procuracy, subject to the National Assembly’s approval.
2.4 Political Risks
When it comes to investing in Vietnam, one of the Asia countries, it would be a mistake if we do not analyze the country’s political risk. When trading in Vietnam, there are several significant political risks that need to be concerned.
2.4.1 Corruption in Vietnam
Table of Corruption Perception Index 2009
According to the Corruption Perceptions Index 2009, Vietnam was ranked at number 120 or index 2.7 as compare to many other countries. This shows Indonesia has a high level of corruption. Many companies consider corruption to be the most significant political problem in Vietnam.
The factors to cause corruption are as the following. First of all, due to rapid economic growth, the demand for administrative functions is increased, such as the need for more government permissions to engage in economic activities via licenses, approvals; this will increases opportunities for petty corruption in Vietnam.
Second, to facilitate economic growth, Vietnam has undergone comprehensive political and economic restructuring. A reform of decentralization in Vietnam has given greater authority over investment licensing to provinces, municipalities and so-called investment zones. These decentralization efforts have led to the uneven implementation of laws and variations in requirements and have given local officials considerable discretion to demand bribes for issuing licenses and permits, leading to more administrative corruption.
Third, foreign firms are particularly vulnerable to administrative corruption due to their lack of knowledge of local customs and procedures. These firms are more likely to pay for a license, even though it might be illegitimate and unnecessary according to the law, to avoid antagonizing the local administration.
Lastly, the official salaries of Vietnam’s public officials are very low. The minimum payment is only 28 dollars per month. Therefore they try to get extra money from bribery.
2.5 Political SWOT Analysis
i. Strengths
The Communist Party government appears committed to market-oriented reforms necessary to double 2000's GDP per capita by 2010, as targeted.
The one-party system is generally conducive to short-term political stability.
Relations with the US are generally improving, and Washington sees Hanoi as a potential geopolitical ally in South East Asia.

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