Analyzing marco environment pest analysis political

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Analyzing Marco-environment PEST Analysis Political Factors - Vietnam is the Socialist Republic country with single-party states, one of the world’s four countries formally remaining communism. - The National Assembly is the unicameral parliament of the state, in which all ministers are appointed among 498 members. - The domestic policy has been more stable and positive, however international issues such as ‘the East Sea Dispute’ Vietnam and China, the border between Vietnam and Laos, etc… cause the tense relationships which have big influential impact on both politics and economy. Economic Factors - The GDP growth rate in 2015 was 6.7% over 2014, higher than the estimated target of 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 2014 and forecasted 2.05% in 2016. The reasons for this jobless situation are unstable working 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 and education. - According to WITS (2015), the total imports were $147,839,047.56 in which the import 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 total trade balance achieved at $2,378,091,177.
- The 2015 consumer confidence index stayed at a high degree of 76% which positioned Vietnam the 7 th most optimistic nation worldwide (Tran and Nguyen, 2016). There were nearly 39% of Vietnamese consumers willing to spend on new apparel, 41% on vacations and special occasions, and 35% on outdoor entertainment after all living expenses were covered. Socio-cultural Factors - Vietnamese is the official language, the use of English, Chinese and Japanese is wide-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 like family or extended relationships, and loyalty is considered as the key element in shared rules and regulations. - Vietnamese people follow the centralized hierarchy; it means each individual naturally 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 life and carefulness for each other. Any conflicts would be solved by compromise and negotiation, especially the standing out among society is not necessary and unworthy.

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