Swot Analysis on Vietnamese Economy

2156 Words Oct 30th, 2010 9 Pages
In recent years, globalization has become one of the most popular term involving in many business articles and speeches. Globalization has brought both advantages and disadvantages to the world in many aspects, from economy to culture. Along with the trend is the expansion of multinational company. Nowadays, it is common to see a company with operations in many countries. In order to penetrate to a new country, every entrepreneur should have a SWOT analysis about the country to know about its strengths, weaknesses, opportunities and threats. The analysis will help the entrepreneur to find a proper strategy for the company to operate in the new country. This SWOT report will analyze the strengths, weaknesses, opportunities and threats of …show more content…
In comparison with the number in developed countries, €9 per hour in the UK for example, no wonder why big multinational companies all over the world have been trying to outsource to Vietnam. There are many factories along the country which are manufacturing final products for world top multinational companies. Nike, Adidas, Panasonic, Toyota, etc., all place their factories in Vietnam. In fact, when one goes shopping in Europe, it is no surprised to see a product of a famous brand with the “Made in Vietnam” label printed on it . Moreover, according to some latest research, Vietnam has a young population. It can lead to a more effective working force, compared to countries which have an old population, such as Finland and Japan. In the last decades, the literacy rate of Vietnam has been increasing steadily, from 88% in 1989, 90% in 1999 to 93,5% in 2009. More people get a bachelor’s degree nowadays, which leads to the improvement in the worker’s skill. Offering not only a strong flow but an efficient working force, Vietnam has been attracting more investors every year.
Having joined the World Trade Organization (WTO) in November 17, 2006 opens to Vietnam lots of advantages regarding the economy. According to the major principles, joining WTO brings Vietnam to the expansion of market and increase in exports. Especially in agriculture and textiles, WTO has set out various measures to gradually eliminate

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