PEST vietnam

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PEST Analysis On Vietnam

PEST analysis of Vietnam
·Political factors: · 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
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Technological factors:
· Vietnam has seven international airports and fifteen civil airports, basic transportation systems such as railways, road, waterway system are more intact then before, even through after several years development and received economic benefit, transportation still limited the development of Vietnam.
· After Vietnam joined the ASEAN, on account of the geographic advantages and its opening policy, Vietnam gain more opportunities to cooperate with the first rate company and to reform the inside industrial structure, such as accelerate energy technology and digitalization process. Beyond any question Vietnam make a progress than before, however a huge difference still exist, Vietnam still remains one of the lowest technology country, much behind than adjacent region countries. Specific on technological innovation, scientific research input. More assembly lines in the high-tech park rather than technology or innovation.
With the PEST analysis above, it can be concluded that the PEST environment of Vietnam has definitely improved its international business activities in the past 10 years, 1996 the government come up with striving to develop the industry and modernization, on the basis of market economy, from 1990-2008 the GDP of Vietnam grows robustly with average 7.7% increase, with a rate of about 6.18% in 2009, and 6.9% in 2010, and 5.89% in
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