100%(3)3 out of 3 people found this document helpful
This preview shows page 4 - 6 out of 10 pages.
Analyzing Marco-environment PEST AnalysisPolitical Factors-Vietnam is the Socialist Republic country with single-party states, one of the world’sfour countries formally remaining communism. -The National Assembly is the unicameral parliament of the state, in which allministers are appointed among 498 members. -The domestic policy has been more stable and positive, however internationalissues such as ‘the East Sea Dispute’ Vietnam and China, the border betweenVietnam and Laos, etc… cause the tense relationships which have big influentialimpact on both politics and economy. Economic Factors-The GDP growth rate in 2015 was 6.7% over 2014, higher than the estimated targetof 6.3% and the growth in the period of 2011-2014. -The unemployment rate was 2.12% in 2015, lower than 0.06% compared to 2014and forecasted 2.05% in 2016. The reasons for this jobless situation are unstableworking environment and low-paid salary. -The 2015 inflation rate recorded at low rate of 0.63%, but it estimated to reach 5.6%in 2016 and keep rising due to the high prices of electricity, healthcare, food andeducation. -According to WITS (2015), the total imports were $147,839,047.56 in which theimport of goods and services took 88.99% and the total exports were$150,217,138.75 in which the export of goods and services held 89.78%. The totaltrade balance achieved at $2,378,091,177.
-The 2015 consumer confidence index stayed at a high degree of 76% whichpositioned Vietnam the 7thmost optimistic nation worldwide (Tran and Nguyen,2016). There were nearly 39% of Vietnamese consumers willing to spend on newapparel, 41% on vacations and special occasions, and 35% on outdoorentertainment after all living expenses were covered. Socio-cultural Factors-Vietnamese is the official language, the use of English, Chinese and Japanese iswide-ranging.-The education standard is high, reaching at the literacy rate of 97.3% in 2016-Vietnam has a collectivistic society in which people prefer to commit in group likefamily or extended relationships, and loyalty is considered as the key element inshared rules and regulations. -Vietnamese people follow the centralized hierarchy; it means each individualnaturally has his own position which needs no particular justification. ‘Lower key’person has to do what he would be told and the model commander is a kindly tyrant.-The feminine society of Vietnam shows the principal standards are the value of lifeand carefulness for each other. Any conflicts would be solved by compromise andnegotiation, especially the standing out among society is not necessary andunworthy.