Shree Ganeshay Namah:

Students Declaration
We the below mentioned students of S.Y.M.B.A. hereby declare that the reort for
Global!"ountry Study #eort $ro%ect entitled <Topic> in &ietnam is a result of our own wor'
and our indebtedness to other wor' ublications( references( if any( ha)e been duly
ac'nowled*ed.
$lace : Sari*am
Date :
Sr.No. +nrollment No. Name Si*nature
, #a'esh $atel
- .eyur Naya'
/aculty Guide : Asst.$rof.$rana) #aythatha
01 Sector2 Steele Analysis of &ietnam for 0ndian and Gu%arat entrereneurs.
01 #eort:
#esected All /aculties and Guide(
3n behalf of the *rou for *lobal ro%ect under the *uide of Asst.$rofessor Mr. $rana)
#aythatha( We $atel #a'esh and $atel .eyur of MBA 4
th
Semester( 5a6mi 0nstitute of
Mana*ement( Sari*am ha)e ut an effort on 01 Sector under the headin* entrereneurial
oortunities in &ietnam for 0ndian and Gu%arat entrereneurs by loo'in* )arious strate*ic
conte6ts for this ro%ect.
S1++$5+ ANA5YS0S
S3"0A5 ANA5YS0S 3/ &0+1NAM W017 #+/+#+N"+ 13 01 AND A89050A#Y
0ND8S1#Y
he socialist-oriented market economy (is the official title given to the current economic system in
the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy oriented towards the
eventual and long-term development of socialism,
!"
where the state sector plays a decisive role
in directing economic development.
&ietnam is located in a Southeast Asian re*ion :AS+AN; with nei*hborin* countries li'e 5aos(
"ambodia( Myanmar( Brunei( Sin*aore( 1hailand( 0ndonesia( Malaysia( $hiliines etc. is
considered a cradle of man'ind( one of the earliest a*ricultural centers racticin* wet rice
farmin*( where the stone and metallur*ical re)olutions too' lace.
1he history of &ietnams is assed throu*h si*nificant chan*es and re)olutions in the cause of
national buildin*( the &ietnamese eole had to coe with )arious forei*n a**ressions. Durin*
,- centuries from the resistance war a*ainst the <in Dynasty in the =rd century B." until late
->th century( the &ietnamese had to launch hundreds of stru**les and urisin*s a*ainst forei*n
a**ressions. 1he rincile of lacin* the small and wea' forces before much lar*er and stron*er
ones has become the rule of thumb in the national defense wars of the &ietnamese eole.
0f we tal' of social status of &ietnamese( they are still followin* their traditional )alues )ery
much in each acti)ity.
/or centuries &ietnamese society was 'nit to*ether by "onfucian norms based on fi)e
relationshis: the subordination of sub%ect to ruler( son to father( wife to husband( and youn*er
brother to elder brother( and the mutual resect between friends. 1hese norms influenced the
e)olution of &ietnam as a hierarchic( authoritarian society in which "onfucian scholarshi(
monarchical absolutism( filial iety( the subordinate role of women( and the family system were
re*arded as inte*ral to the natural order of the uni)erse.
1he traditional society was stratified on the basis of education and occuation into four *rous:
scholar?officials or mandarins( farmers( artisans( and merchants. At the innacle was the emeror(
who ruled with the @mandate of hea)en.@ Ne6t were the scholar?officials( recruited throu*h
ri*orous ci)il ser)ice e6aminations in "hinese classical literature and hilosohy. 3nce a erson
assed the triennial e6aminations he became an accredited scholar or de*ree holder and was
eli*ible for aointment to the imerial ci)il ser)ice( the most resti*ious route to ower( status(
and wealth. 1o*ether( the emeror( his family( and the scholar?officials constituted the rulin*
class.
1here is immense scoe of entrereneurial oortunities in 01 se*ment for 0ndians as we hold
strate*ic cometencies in software and desi*n as well as *ood in education also.
1echnolo*ical en)ironment in &ietnam
&ietnamese 01 sendin* is e6ected to reach 8SA-.B=bn in ->,-?,=( u ,BC( with BM0
uwardly re)isin* its forecast due to macroeconomic factors. 1he $" mar'et slowed in ->,-?,=
due recession( but dri)ers includin* risin* $" enetration( economic *rowth( a ran*e of
*o)ernment 0"1 initiati)es and a camai*n to de)elo &ietnamDs domestic 01 industry will hel
to sustain continued e6ansion *oin* forward. &ietnamDs imro)in* 0"1 infrastructure will also
dri)e the de)eloment of the nationDs 01 mar'etin* a country with below ->C $" enetration.
Meanwhile( there is stron* demand for +#$ solutions in ->,-?,= and cloud comutin* re)enues
are e6ected to reort at least =>>C *rowth o)er the fi)e?year forecast eriod to ->,E.
7eadline +6enditure $ro%ections in 01
"omuter 7ardware Sales: 8SA,.Ebn in ->,, to 8SA,.Fbn in ->,-( G,=C in 8S dollar terms.
/orecastin* 8S dollar terms unchan*ed2 howe)er( tablets are e6ected to ro)ide a stron*
*rowth area in ->,- due to lower rices.
Software Sales: 8SA,FHmn in ->,, to 8SA---mn in ->,-( G--C in 8S dollar terms. /orecast in
8S dollar terms uwardly re)ised due to analyst modification( but will deend on the success in
brin*in* down ille*al software use.
01 Ser)ices Sales: 8SA=IBmn in ->,, to 8SA4H4mn in ->,-( G->C in 8S dollar terms. /orecast
in 8S dollar terms uwardly re)ised due to analyst modification with *rowin* demand for di*ital
infrastructure ro%ects in )arious sectors( such as ban'in*( telecoms( ener*y and *o)ernment.
#is'!#eward #atin*s: &ietnam scores ==.- out of ,>> in our Asia ris'!reward ratin*s table. 1his
laces the country ,,th( ahead of Sri 5an'a. 1he country ran's only ninth for its 01 mar'et score(
with =E.I..ey 1rends J De)eloments.
0n ->,,( a number of *o)ernment ministries and or*aniKations( includin* the Ministry of
+ducation and 1rainin*( started to romote the roll out of cloud ser)ices. $lans to moderniKe 01
in *o)ernment a*encies and the customs deartment( as well as the 1a6 Administration
ModerniKation $lan for ->>F?->,= reresent oortunities for )endors of 01 roducts and
ser)ices.
An ambitious *o)ernment 01 lan for ->,>?->-> should shae many se*ments of the &ietnamese
01 mar'et( with the *o)ernment led*in* to in)est &ND-.4tn :8S4( ,,Bmn; from the State
Bud*et in the 0"1 sector o)er this eriod. 1he *o)ernmentDs increasin* focus on encoura*in*
0"1 de)eloment and forei*n in)estment in the technolo*y sector will also create oortunities.
Many of the *o)ernmentDs 0"1 de)eloment lans and ro*rammes are still in an ascent sta*e
and their ultimate effecti)eness is yet to be determined.
1his is a )ery *ood oortunities for 0ndian +ntrereneurs to cater )ast untaed &ietnam
Software and # J D mar'ets as well as to start contract with its *o)ernment to underta'e se)eral
01 ro%ects and 01 education on scale basis.
Based on our research on 01 sector rosects of 0ndian +ntrereneur in &ietnam ( We found
followin* areas for business oortunities in our seminar for 01 Sector.
:,; 1echnolo*y #eLuirements from the Business $rocess #edesi*n
:-; 1ar*et +n)ironment: 1ar*et technolo*y en)ironment
:=; +ducation related( comany related B - B aroach( B - G aroach for software
de)eloment( B - " aroach )ia Networ' desi*n( financial sector articularly ban'in*
related 01 alication and 01 trainin* interface.
:4; Go)ernment $ro%ects and 3utsourcin*
+conomical +n)ironment of &ietnam
&ietnam: +conomy
/ollowin* economic sta*nation after reunification from ,IHB to ,IFB( the ,IFE Si6th $arty
"on*ress aro)ed broad economic reforms :'nown as @Doi Moi(@ or @reno)ation@; that
introduced mar'et reforms( oened u the country for forei*n in)estment( and dramatically
imro)ed &ietnamDs business climate. &ietnam became one of the fastest?*rowin* economies in
the world( a)era*in* around FC annual *ross domestic roduct :GD$; *rowth from ,II> to
,IIH and E.BC from ,IIF?->>=. GD$ *rew more than FC annually from ->>4 to ->>H( slowed
to B.=C *rowth in ->>I( reco)ered to E.FC in ->,>( and reached B.FC o)er the first I months of
->,,. &iewed o)er time( forei*n trade and forei*n direct in)estment :/D0; ha)e imro)ed
si*nificantly( althou*h new re*istered /D0 has started to trend downward. 1he a)era*e annual
forei*n in)estment commitment rose sharly after forei*n in)estment was authoriKed in ,IFF(
althou*h the *lobal economic crisis affected /D0 in ->>I. 0n the first I months of ->,,(
disbursed /D0 caital totaled AI., billion( u ,C comared to the same eriod in ->,>.
#e*istered /D0 :includin* new and additional caital; was AF.FF billion in the first I months of
->,,( a fall of about =>C comared to the same eriod of ->,>. /rom ,II> to ->,,( a*ricultural
roduction nearly doubled( transformin* &ietnam from a net food imorter to the worldDs second?
lar*est e6orter of rice. 0n the first I months of ->,,( &ietnams e6orts :AH> billion; were u by
-=C comared to the same eriod in ->,>. &ietnams imorts :AHE.FH billion; were u by -HC
from the same eriod in ->,>( and the country was still runnin* a structural trade deficit(
reachin* AE.FH billion in the first I months of ->,,.
1he shift away from a centrally lanned economy to a more mar'et?oriented economic model
has imro)ed the Luality of life for many &ietnamese. $er caita income rose from A--> in ,II4
to A,(,EF in ->,>. Year?on?year inflation( howe)er( increased to ,F.-C in the first I months of
->,,( u from F.EC in the same eriod of ->,>. 1he &ietnamese Go)ernment was unable to
reach its ->,, "onsumer $rice 0nde6 :"$0; tar*et of HC. 1he &ietnamese sa)in*s rate is about
-BC of GD$. 3fficial unemloyment remains low( but does not reflect emloyment trends in the
unofficial economy( which comrises o)er H>C of the total wor'force. 8nemloyment was -.-C
in the first I months of ->,,??a sli*ht decline from -.FC in ->,>??with urban unemloyment
bein* hi*her :=.BC in the first I months of ->,,( 4.4C in ->,>; than rural :,.-C the first I
months of ->,,( -.=C in ->,>;.
1he &ietnamese Go)ernment still holds a ti*ht rein o)er ma%or sectors of the economy throu*h
lar*e state?owned economic *rous and enterrises. 1he *o)ernment has lans to reform 'ey
sectors and artially ri)atiKe state?owned enterrises( but imlementation has been *radual and
the state sector still accounts for aro6imately 4>C of GD$. Greater emhasis on ri)ate sector
de)eloment is critical for %ob creation. 0n ->,,( the &ietnamese Go)ernment roosed a strate*y
for restructurin* the economy by ->,B. 1he three illars of the roosed strate*y are imro)in*
ublic in)estment2 reformin* state?owned enterrises2 and restructurin* finance mar'ets(
focusin* on the ban'in* system.
1he ->>, entry?into?force of the Bilateral 1rade A*reement :B1A; between the 8.S. and
&ietnam was a si*nificant milestone for &ietnamDs economy and for normaliKation of 8.S.?
&ietnam relations. Bilateral trade between the 8nited States and &ietnam has e6anded
dramatically( risin* from A-.IH billion in ->>- to A,F.E billion in ->,>. 1he 8.S. is &ietnamDs
second?lar*est trade artner o)erall :after "hina;.
0mlementation of the B1A( which includes ro)isions on trade in *oods and ser)ices(
enforcement of intellectual roerty ri*hts( rotection for in)estments( and transarency(
fundamentally chan*ed &ietnamDs trade re*ime and heled it accede to the World 1rade
3r*aniKation :W13; in ->>H.
&ietnam was *ranted ermanent normal trade relations :$N1#; status by the 8nited States in
December ->>E. 1o meet the obli*ations of W13 membershi( &ietnam re)ised nearly all of its
trade and in)estment laws and *uidin* re*ulations and oened u lar*e sectors of its economy to
forei*n in)estors and e6orters.
A 8.S.?&ietnam 1rade and 0n)estment /ramewor' A*reement :10/A;( a brid*e to future
economic cooeration( was si*ned in ->>H durin* $resident N*uyen Minh 1rietDs )isit to the
8nited States. 1he first 10/A "ouncil occurred in December ->>H in Washin*ton( and there ha)e
been freLuent 10/A meetin*s and dialo*ues since then. Durin* $rime Minister N*uyen 1an
Dun*Ds Mune ->>F )isit( the 8nited States and &ietnam committed to underta'e Bilateral
0n)estment 1reaty :B01; ne*otiations. 1hree rounds of tal's were comleted( but B01 tal's ha)e
not resumed since &ietnam and the 8nited States be*an ne*otiations on free trade in ->,>.
A*riculture and 0ndustry
As in the rest of Asia( farms in &ietnam tend to be )ery small( and are usually less than one
hectare :-.B acres; each. #ice and other farm oututs are Luite rofitable( on a er?'ilo*ram
basis( but the total income from these small oerations is increasin*ly insufficient to co)er daily
household needs. 3ff?farm income is necessary( and *rowin* in imortance. Due to its hi*h
roducti)ity( &ietnam is currently a net e6orter of a*ricultural roducts. Besides rice( 'ey
e6orts are coffee :robusta;( eer :sice;( cashews( tea( rubber( wood roducts( and fisheries
roducts. 0n ->,>( &ietnam was ran'ed ,H amon* all suliers of food and a*ricultural roducts
to the 8nited States( a stron* indicator of &ietnams *rowin* imortance as a *lobal sulier of
'ey a*ricultural commodities. A*ricultureDs share of economic outut has declined( fallin* as a
share of GD$ from 4-C in ,IFI to -,C in ->,>( as roduction in other sectors of the economy
has risen.
&ietnamDs industrial roduction has also *rown. 0ndustry and construction contributed 4,C of
GD$ in ->,>( u from -H.=C in ,IFB. Subsidies ha)e been cut( thou*h state enterrises still
recei)e riority access to resources( includin* land and caital. 1he *o)ernment is also
continuin* the slow rocess of @eLuitiKin*@ a si*nificant number of smaller state enterrises??
transformin* state enterrises into shareholdin* comanies and distributin* a ortion of the
shares to mana*ement( wor'ers( and ri)ate forei*n and domestic in)estors. 7owe)er( to date the
*o)ernment continues to maintain control of the lar*est and most imortant comanies.
1rade and Balance of $ayments
1o comensate for drastic cuts in So)iet?bloc suort after ,IFI( &ietnam liberaliKed trade(
de)alued its currency to increase e6orts( and embar'ed on a olicy of re*ional and international
economic re?inte*ration. &ietnam has demonstrated its commitment to trade liberaliKation in
recent years( and inte*ration with the world economy has become one of the cornerstones of its
reform ro*ram. &ietnam has loc'ed in its intention to create a more cometiti)e and oen
economy by committin* to se)eral comrehensi)e international trade a*reements( includin* the
Association of Southeast Asian Nations :AS+AN; /ree 1rade Area :A/1A; and the 8.S.?
&ietnam Bilateral 1rade A*reement :B1A;. &ietnamDs accession to the World 1rade 3r*aniKation
further inte*rated &ietnam into the *lobal economy. 0n No)ember ->,>( &ietnam officially
%oined ne*otiations for the 1rans?$acific $artnershi :1$$; free trade a*reement.
As a result of these reforms( e6orts e6anded si*nificantly( *rowin* by as much as ->C?=>C in
some years. +6orts accounted for about H>C of GD$ in ->,>. 0morts ha)e also *rown raidly(
and &ietnam has maintained a structural trade deficit( reachin* A,-.4 billion in ->,>. &ietnamDs
total e6ternal debt( amountin* to 4-.-C of GD$ in ->,>( was estimated at around A=-.B billion.
&ietnamese economy has weathered the *lobal economic downturn relati)ely well. "aitaliKin*
on its measured inte*ration into the *lobal trade and in)estment system( the country has slowly
been transformin* itself into a more mar'et?oriented economy. #eforms include artial
ri)atiKation of state?owned enterrises( moderniKation of the trade re*ime( and increasin*
reco*nition of ri)ate roerty ri*hts.
&ietnams economic freedom score is B,( ma'in* its economy the ,4>th freest in the ->,= 0nde6.
0ts score is >.= oint worse than last year( with declines in monetary freedom( labor freedom( and
trade freedom o)ershadowin* imro)ements in control of *o)ernment sendin*( business
freedom( and freedom from corrution. &ietnam is ran'ed =>th out of 4, countries in the AsiaN
$acific re*ion( and its o)erall score is lower than the world and re*ional a)era*es.
&ietnam is one of the fastest *rowin* economies ha)in* lar*e ool of chea labours both s'illed
and uns'illed. 1hou*h infrastructure is 'ey constraint( *o)ernment is ro)idin* )arious
measures and incenti)es of 01 related de)eloment which is 'ey oortunities for 0ndian
entrereneurs in &ietnam.
#he Ministry of Planning and Investment (MPI), formerly the State Planning Commission, is
a governmental ministry charged with the role of state management over planningand investment. #he
ministry$s head%uarters is located in &anoi.
!"
#he agency provides, among others, strategic advice for country-level socio-economic development. It
also programs and plans economic management mechanisms and policies for the national economy, for
specific sectors as well as for domestic and foreign investments.
'oreign investment in Vietnam is governed under the Law on Foreign Investment and its related
regulations, decrees and circulars. #he four main types of foreign investments in Vietnam are( (!) *oint
Ventures+ (,) -usiness .ooperation (.ontracts)+ (/) !00-1ercent 'oreign-2wned 3nterprises+ and
(4) -uild-2perate-#ransfer enterprises.
#he ng has been the currency of Vietnam since 5ay /, !678. Issued by theState -ank of Vietnam, it is
represented by the symbol 9:9. 'ormerly, it was subdivided into !0 ho, which was further subdivided into
!0 xu, neither of which is now used.
+n)ironmental /actors of &ietnam which needs to be ta'en care
In the traditional Vietnamese worldview, people should live in harmony with nature [Le
Trong Cuc ____]. At the same time, however, they must mae use o! natural resources to
provide !or their day"to"day survival [#amieson ____$ _ ]. %ature was also seen as a
constant threat to human survival, with the !re&uent occurrence o! 'oods, typhoons,
droughts and other natural calamities [(am)o ____$ ___]. (egardless o! what relations
)etween Vietnamese people and nature may have really )een lie in the past, due to
growing population pressure and recent rapid economic growth, environmental pro)lems
have increased signi*cantly in recent decades. Conse&uently, environmental protection
has )ecome a ma+or concern o! the Vietnamese government, as is indicated )y the
recent !ormation o! a separate ,inistry o! -nvironment and %atural (esources. The
e.tent to which the pu)lic is concerned a)out environmental pro)lems has not )een
nown, however, although many o/cials assume that the pu)lic is largely ignorant and unconcerned
a)out matters relating to the environment.
0e!orestatio is ma+or concern in Vietnam and government is very een and sensitive a)out
environmental issues. 1ut !or an IT industry, it is an advantage that it can minimum harm e.ternal
environment and even help to control environmental issues with precise implementation o! laws and
nalysis.
IT industry consume only energy that is &uite crucial environmental aspects and the *)re networ laid
!or internet also play some government norms which are concern area.
2e 3overnment is promoting to reduce the pressure !or over"e.ploitation o! tim)er )y e.panding and
promoting the use o! non"tim)er products which are eco"!riendly and environment !riendly.
$olitical +n)ironment of &ietnam:
&ietnam is followin* communist *o)ernance system.1he rule of law remains an issue( a remnant
of decades of "ommunism. 1he court system is inefficient( and the rotection of intellectual
roerty has been a ma%or area of contention in international trade ne*otiations. A lac' of
democratic *o)ernance and accountability continues to eretuate systemic corrution.
$olitical scenario in &ietnam: So far as olitical mechanism and *o)ernance in &ietnam is
concern( the country has not sound trac' record e)en today as far as ublic freedom( suression
of freedom of e6ression and eaceful assembly( olitical reforms and act( e6ose co officials
corrution( call for democratic alternati)es to one arty rule( free seech( %ournalism and ci)il
ri*hts are concerned due to socialist *o)ernment model. 0n &ietnam( olice freLuently torture
susects to elicit confessions for national interest and( in se)eral cases( ha)e resonded to ublic
rotests o)er e)ictions( confiscation of land( and olice brutality with e6cessi)e use of force.
Anti?"hina rotests in 7anoi and 7o "hi Minh "ity in ->,, were disersed and rotesters were
intimidated( harassed( and in some cases detained for se)eral days.
,. 1he current Prime Minister Mr.Nguyen Tan Dun* has ser)ed since ->>B( and he is
ser)in* his last term.
-. 1he President of Vietnam reresents the Socialist #eublic of &ietnam internally and
e6ternally as the head of state( maintains the re*ular and coordinated oeration and
stability of the national *o)ernment system and safe*uards the indeendence and
territorial inte*rity of the country. 1he $resident aoints rime ministers( )ice
residents( ministers and other officials with the consent of the National Assembly. 0n
Socialist of &ietnam( 1he $resident( the head of State is also the chief commander of the
&ietnam $eoles army and also ser)e as a "hairman of the "ouncil for Defense and
Security o! the country and his tenure for this ost is fi)e years as well as he can ser)e
for the same ost by two tenure only.
=. 1he current President, MR. Truong Tan Sang( is the $olitburoDs hi*hest?ran'in*
member.
1he "hairman of senate?National Assembly is the head of olitical constituency. Mr. Nguyen
Sinh Hung is the current chairman of the National Assembly of &ietnam.
&ietnam is one of the fastest *rowin* de)eloin* countries in south Asian re*ion .ey 0ssues in
&ietnam olitics which directly affectin* its economy:
Some of )ery 'ey issues needs to be addressed for &ietnam *o)ernments to attract more /D0 in
01 sectors articularly for 0ndian +ntrereneurs are as under.
4. Macroeconomic olicies are ti*ht to rotect state run industries which are hi*hly reLuired
to ease for economy reforms.
B. S3+?State owned enterrise reforms are reLuired to reduce ris' to financial sector ris'
and ublic finances and to imro)e o)erall *rowth rosecti)e in the economy.
E. &ietnam reLuires maintainin* an e6chan*e system free of olitical interference and
restrictions on the ma'in* of ayments and easin* the current international transactions.
H. Another thin* is to do 1A9 #+/3#Ms for efficient functionin* of economical acti)ity
by &ietnam *o)ernment to increase o)erall *rowth.
Legal Framewor and !o"ernance Mechanism#
Legal Structure# Article 4 of the "onstitution stiulates the leadin* role of the
"ommunist $arty of &ietnam :"$&;. 1he "$&Ds e6ecuti)e is the ,B>?member "entral
"ommittee( elected by the "on*ress of all arty members( which meets e)ery fi)e years.
Legislati"e $ranch# %n Vietnam, to run the congregation or &ody of ministers which
is a council called the National 'ssem&ly there to e(ercise constitutional )owers and
frame )olicies for the nations interest was esta&lished &y the Vietnam *onstitution
of +,,-, is the su)reme arm of state and the only &ody in a country ha"ing
constitutional and legislati"e )ower. 1he National Assembly shall decide the
fundamental domestic and forei*n olicies( the socio?economic tas's( the countryDs
national ? defense and security issues( the essential rinciles *o)ernin* the or*aniKation
and acti)ity of the State machinery( the social relations and the acti)ities of the citiKen.
.(ecuti"e $ranch# The !o"ernment is the e(ecuti"e organ of the National 'ssem&ly,
the highest organ of state administration of the Socialist Re)u&lic of Vietnam. For
Nation/s internal as well as e(ternal security and integrity, it re0uires a holistic
a))roach and o"erall management of the wor from e(ecuti"e functionaries to
attain decisi"e strength and success on front of the )olitical, economic, cultural,
social, and national 1 defense, security and e(ternal duties of the State. 1he
Go)ernment shall be comosed of the $rime Minister( the Deuty $rime Ministers( the
"abinet Ministers( and other members. With the e6cetion of the $rime Minister( its
members are not necessarily members of the National Assembly. 0n Socialist of &ietnam(
1he $resident of the State and the $rime Minister are elected by the central council
?National Assembly.
2udiciary $ranch# Sureme $eoleDs "ourt :chief %ustice is elected for a fi)e?year term
by the National Assembly on the recommendation of the resident;. 1he Sureme
$eoleDs "ourt( the local $eoleDs "ourts( the Military 1ribunals and the other tribunals
established by law are the %udicial or*ans of the Socialist #eublic of &ietnam.
Local !o"ernment: 3n a formal le)el &ietnams local administration system is di)ided
*eo*rahically into three le)els:
O $ro)inces :about E> units includin* three municialities;
O Districts :about E>> units;
O "ommunes :about ,>(4>> units;.
.lectoral System# &ietnam has uni)ersal suffra*e at a*e ,F. +lections for the National
Assembly are scheduled e)ery fi)e years.
Politics3Political Parties# &ietnam is a one?arty state. 1he &ietnamese "ommunist
$arty :&"$; has a monooly on ower.
Vietnam/s *a)ital: 7anoi
1he current Prime Minister Mr.Nguyen Tan Dun* has ser)ed since ->>B( and he is
ser)in* his last term.
1he President of Vietnam reresents the Socialist #eublic of &ietnam internally and
e6ternally as the head of state( maintains the re*ular and coordinated oeration and
stability of the national *o)ernment system and safe*uards the indeendence and
territorial inte*rity of the country. 1he $resident aoints rime ministers( )ice
residents( ministers and other officials with the consent of the National Assembly. 0n
Socialist of &ietnam( 1he $resident( the head of State is also the chief commander of the
&ietnam $eoles army and also ser)e as a "hairman of the "ouncil for Defense and
Security o! the country and his tenure for this ost is fi)e years as well as he can ser)e
for the same ost by two tenure only.
1he current President, MR. Truong Tan Sang( is the $olitburoDs hi*hest?ran'in*
member.
1he "hairman of senate?National Assembly is the head of olitical constituency. Mr.
Nguyen Sinh Hung is the current chairman of the National Assembly of &ietnam.
1hou*h *o)ernment is acti)e on industrial eace and security( there is little scoe for
%udiciary indeendence in &ietnam o)er olitical *o)ernment which is imortant one for
an industry to in)estment establishment in &ietnam.

+thical and &alues for business in &ietnam
1his is )ery imortant art of cororate resonsibility which dri)es business and economy
*rowth.
In order to be successful with business practices in Vietnam, you must be aware of the ethics in that particular
country. 9#ransparency International, a global counter-corruption watchdog, ranks Vietnam as the second most
corrupt country in South-3ast ;sia, based on a survey of international businessmen9 (economist.com). #he corruption
is very much widespread and must be taken into account when doing business in the country. ;side from being a
very corrupt nation, the workforce struggles with conditions in the factories they work in. ;s an international manager
we must be able to deal with these situations. 'or the most part, the workers suffer from conditions like long hours
with little to no breaks, unsanitary environments, and lack of appropriate gear<e%uipment. =orkers at times even
come to work sick >ust to prevent from losing a >ob.
=omen also have little role in the workforce. #hey are usually raised up to be strictly a wife and mother and only
recently have started working in the factories. 9=omen often accept the poor working conditions and work in these
factories because of their poor economic situation that often result in poor health9 (unc.edu). #hese types of work
conditions are definitely a significant factor in doing business in this country. =e don$t see these harsh conditions in
the ?.S. and being in a company that is globally competitive we$d have to deal with such things+ however, in order to
make our business successful and stay competitive we would have to adhere to these conditions as much as we$d
hate to see them.
3thics and human rights such as these can affect the way we run business. If we work people in these conditions,
this bad image can reflect on us back at home. =e can regulate something simple like more breaks and a cleaner
environment for them to work in. ;s human rights continue to improve in Vietnam, the workers are more aware of the
unethical conditions also and are starting to speak out.
@ey 3thics are concern ares for business(
Weak systems and controls are exposing companies in Asia-Pacifc and in Vietnam to
signifcant risks as internal controls and compliance programs are not implemented as
thoroughly as they should be.
The slower growth environment is putting management under pressure to take short cuts by,
for example, misstating fnancial statements to meet targets.
Fraudulent practices are on the rise, and there is a disconnect between the policies that are
in place and how they are applied in practice.
Summary
4ummary (eport$ IT 4ector
Vietnam IT , IT-4 and particularly ICT industry has grown at a phenomenal rate over
the last decade or so years and is now a pillar o! the country5s economy
The economy and *nancial structure o! Vietnam and IT sector have )egun to
sta)ili6e, and government policy credi)ility has improved. 7ndergirded )y tight
macroeconomic policies, in'ation is receding rapidly, activity is slowing, and the
current account de*cit has declined sharply. The in!ormal inter)an e.change rate
has moved within the )and around the o/cial rate and investors, )oth domestic
and !oreign, are shi!ting into dong assets, allowing the 4tate 1an o! Vietnam 841V9
to increase !oreign e.change reserves. 1ased on the e.ternal LIC 04A, Vietnam
remains at low ris o! de)t distress.
Con*dence in the Vietnam dong has improved, )ringing the in!ormal inter)an
e.change rate )ac within the o/cial trading )and. Investors, )oth domestic and
!oreign, are shi!ting into dong assets, allowing the 41V to increase international
reserves signi*cantly in the *rst three months o! :;<:, though they remain low.
IAB VietnamCs Beneral Airector Dguyen Eam said that last year Vietnam, the 1hilippines and Indonesia
were the three Southeast ;sian countries that had a growth of I# spending of over !0 percent. #his year,
despite the global economic slowdown, the spending of the Vietnam I# market is still predicted to grow by
over one percent.
As !ar as IT )usiness is concerned, Vietnam is very optimistic !or long run growth.
;ccording to IAB, as of ,0!0, Vietnam will be the I# market with the highest growth rate in Southeast
;sia. #he implementation of big foreign-invested I# pro>ects, the development of the third generation (/B)
mobile network and investment in I# infrastructure, particularly in the private sector, will be the motivation
for the I# market.
;ccording to the Vietnam Software ;ssociation (Vinasa), Vietnam, India and .hina were the three
countries that processed software for *apan that showed positive growth, but still, VietnamCs market share
in *apan is very small, only 0.F percent.;s far as I# &ardware and I.# is concern, with new foreign
investments pouring in and more than G00 software oriented firms already in place, VietnamCs information
technology sector is by all measure going great guns. ;nd recent big-ticket investments from the
multinational likes of Intel and .anon are established Vietnam as a low-cost I# leader in the region,
challenging the positions of such countries as china, #hailand and the 1hilippines.
In addition to suppliers ranging from household names like D3., #A@ and @elly Services to obscure
specialists such as Aaewon semiconductor 1ackaging, Aainippon Screen 5anufacturing, 5unters, and
S#;#S .hip1;., IntelCs preference for sourcing locally willlikely provide opportunities for doHens, if not
hundreds, of new Vietnamise technology companies. #hat growing mass of suppliers will in turn make
Vietnam more attractive for other global I# manufacturers. VietnamCs concentration on the industry is fast
eroding other countriesC head start. If IntelCs recent decision is a sign of the times, Vietnam is set to draw
more I#-related investments that would have previously been destined for elsewhere in the region.
#he information technology report presents the technology re%uirements and find out the
profitable business opportunities available in South ;sian country Vietnam who is already
an eIporter of I# and I.# &ardware particularly in manufacturing of 5icrochip for processor
is concern. 'or Indian I# Sector, already IndiaCs largest I# software company #.S and
;ptech are there in I# segment and support activities.