Chapter 1: Overview of construction field in Viet Nam and the situation of Coteccons company – leading construction company.
1.1 Overview of Viet Nam economy and construction field:
Vietnam has changed from one of the poorest countries in the world to a lower middle-income country over three decades. Moreover, Vietnam has been becoming a “new dragon” of ASIAN area.
Vietnam 's economy may grow between 7 percent and 8 percent annually from 2011 to 2015, according to a report on the government 's website that…show more content… Nevertheless, rising discontent with the ruling party and concerns related to human rights may adversely affect the political environment of the country in the next few years.
• Vietnam will gain membership in the World Trade Organization soon. However, uncertainty concerning the sustainability of the current banking system and the expanding regional economic differences may hinder the economic progress of the country.
• Legal and taxation regulations are still in a nascent stage and pose a notable operational risk for FDI. Also, red tape, as well as corruption will make the business environment more challenging for operation.
• The government is aiming to attract foreign investment by introducing a new Foreign Investment Law as well as developing more achievable tax system. However, the reforms will not come to achievement immediately, resulting in a slow development of the economy.
1.2 Overview of Coteccons company:
On 17 August 2015, the Business Forum 2015 of Forbes Vietnam was held at Intercontinental Asiana Saigon Hotel. This is the 3rd event held by Forbes Vietnam to celebrate top 50 companies listed on Vietnam Stock Market, and Coteccons is re-honored for the 3rd time on the famous worldwide magazine. Moreover, this company is at a top of the construction industry in this year’s ranking. According to Forbes Vietnam, the ranking list is based on ranking methodology of its mother magazine, with consideration of local characters of