BUSINESS ENVIORNMENT PROJECT

TOPIC :VEITNAM ECONOMY

GROUP MEMBER SUBMITTED TO : DR. SOMESH SHARMA

PRIYANSHI LOHANI

SUSHMITA BISWAS

NIHARIKA ARYA

ANJALI

LATIKA PANT

SUHAIL

INTRODUCTION TO BUSINESS ENVIRONMENT

The term “Business environment” represents the sum of all the individuals, institutions, competing
organisations, government, courts, media, investors, and other factors outside the power of the
business organisations but affects the business performance. Hence, changes in government
economic policies, rapid changes in technology, changes in consumer tastes and preferences,
increasing market competition, etc. are outside the business organisations' power but affect the
business performance immensely.

Components of Business Environment

A. Internal - It combines the factors that exist within the company.

These are –

• Human resources

• Value system

• Vision and mission

• Labour union

• Corporate culture

B. External - An external Environment includes those outside factors that exercise an influence
on a business’s operations. It is further classified into two segments.

• Macro - Socio-cultural, political, legal, and global factors fall into this category.

• Micro - This environment has a direct and immediate impact on a business. It consists of
customers, investors, suppliers, etc.

INTODUCTION TO VITENAM ECONOMY

The economy of Vietnam is a developing mixed socialist-oriented market economy, which is

the 35th-largest in the world as measured by nominal gross domestic product (GDP) and
26th-largest in the world as measured by purchasing power parity (PPP) in 2022. It is a
lower-middle income country with a low cost of living. Vietnam is a member of the
AsiaPacific Economic Cooperation, the Association of Southeast Asian Nations and the
World Trade Organization.
Since the mid-1980s, through the Đổi Mới reform period, Vietnam has made a shift from a
failed highly centralized planned economy to a mixed economy. Before, South Vietnam was
reliant on US aid[25] and North Vietnam and reunified Vietnam relied from Communist aid
until the Soviet Union's collapse.
The economy uses both directive and indicative planning through five-year plans, with
support from an open market-based economy. Over that period, the economy has
experienced rapid growth. In the 21st century, Vietnam is in a period of being integrated into
the global economy. Almost all Vietnamese enterprises are small and medium enterprises
(SMEs). Vietnam has become a leading agricultural exporter and served as an attractive
destination for foreign investment in Southeast Asia.

Economy of Vietnam

Ho Chi Minh City, the financial centre of Vietnam

Currency Vietnamese đồ ng (VND; ₫)

Fiscal year Calendar year

Trade AFTA, WTO, APEC, ASEAN, RCEP, CPTPP, FAO

organisations

• Develồ ping/Emerging
Country
• Lồ wer-middle incồ me ecồ nồ my
group

Statistics

Population 101,678,753 (2022)

 GDP • $433.356 billiồ n (nồ minal)
• $1.434 trilliồ n (PPP)

GDP rank 35th (Nồ minal)

• 26th (PPP; 2023 est.)
GDP growth • 8.0% (2022)
• 4.7% (2023f)
• 6.9% (2024f)
GDP per • $4,316 (nồ minal; 2023 est.)
capita • $14,285 (PPP; 2023 est.)

GDP per • 119th (nồ minal; 2023 est.) •

capita rank 106th (PPP; 2023 est.)

GDP by • Agriculture: 15.3%

sector • Industry: 33.3%
• Services: 51.3%
• (2017 est.)

PESTEL ANALYSIS
PESTEL analysis is a strategic planning tool that is used to examine various factors that affect the
market environment for a business or organization. The goal of PESTLE analysis is to develop a
profound understanding of the external environment where the organization operates. Usually,
PESTLE analysis is conducted as part of a lead-in to SWOT analysis. PESTLE includes the following
factors:
Political factors include: tax policy, regulations, government stability, rule of law, levels of political
corruption or bureaucratic red tape, and possible major changes via new legislation or disruptions in
the political environment.

Economic factors include the overall stage of the business cycle, potential for economic growth or
contraction, interest rates and inflation, labour costs and labour supply, unemployment rate, impact
of new technology on the economy, impact of globalization on the economy, levels of disposable
income and income distribution.

Social factors include the demographic characteristics and attitudes of the population. Questions to
ask regarding social factors include: is the population aging or youthful, growing or stagnant or
shrinking? How healthy, educated and socially mobile are people? How do people feel about their
job prospects and the condition of their society? What are some of the big new/emerging lifestyle
trends?

Technology factors include: emerging technologies, R&D activity, job automation, the rate of
technological change, and the impact of technology on how people live and work – such as an
increase in remote working, reduced communication costs, rising demand for new technology
products, and more.

Legal factors include: the laws and legal framework that affect the organization’s environment – such
as health & safety laws, employment law, consumer law, and antitrust law.

Environmental factors are any of the trends or impacts of the literal “environment” itself – ranging
from natural disasters to climate change, from environmental regulations to rising demand for
ecofriendly “green” products.

OBJECTIVE OF RESEARCH-

TO STUDY THE CURRENT STATUS OF VARIOUS POLITICAL VARIABLES-

✓ VOICE AND ACCOUNTABILITY:

IT REFLECTS PERCEPTION OF THE EXTENT TO WHICH A COUNTRY’S CITIZENS ARE ABLE
TO PARTICIPATE IN SELECTING THEIR GOVERNMENT, AS WELL AS FREEDOM OF
EXPRESSION, FREEDOM OF ASSOCIATION, AND A FREE MEDIA.
 estimate
-1.34
2008 2010 2012 2014 2016 2018 2020 2022
-1.36

-1.38

-1.40

-1.42

-1.44

-1.46

-1.48

-1.50

-1.52

POLITICAL STABILITY AND ABSENCE OF VOILENCE AND TERRORISM-

IT MEASURES PERCEPTIONS OF LIKELIHOOD OF POLITICAL INSTABILITY AND

POLITICALLY MOTIVATED VIOLENCE, INCLUDING TERRORISM.
 estimate
0.30

0.25

0.20

0.15

0.10

0.05

0.00
2008 2010 2012 2014 2016 2018 2020 2022
-0.05

-0.10

GOVERNMENT EFFECTIVENESS-

IT REFLECTS PRECEPTIONS OF THE QUALITY OF PUBLIC SERVICES, THE QUALITY OF

CIVIL SERVICE AND THE DEGREE OF ITS INDEPENDENCE FROM POLITICAL PRESSURES , THE
QUALITY OF POLICY FORMULATION AND IMPLEMENTATION, AND THE CREDIBILITY OF THE
GOVERNMENT’S COMMITMENT TO SUCH POLICIES.
 estimate
0.30

0.20

0.10

0.00
2008 2010 2012 2014 2016 2018 2020 2022
-0.10

-0.20

-0.30

REGULATORY QUALITY
IT REFLECTS PERCEPTION OF THE ABILITY OF THE GOVERNMENT TO FORMULATE
AND IMPLEMENT SOUND POLICIES AND REGULATIONS THAT PERMIT AND PROMOTE
PRIVATE SECTOR DEVELOPMENT.
 estimate
0.00
2008 2010 2012 2014 2016 2018 2020 2022
-0.10

-0.20

-0.30

-0.40

-0.50

-0.60

-0.70

-0.80

RULE OF LAW
IT REFLECTS PERCEPTIONS OF THE EXTENT TO WHICH AGENTS HAVE CONFIDENCE IN
AND ABIDEBY THE RULES OF SOCIETY, AND IN PARTICULAR THE QUALITY OF
CONTRACT ENFORCEMENT, PROPERTY RIGHTS, THE POLICE AND THE COURTS, AS

WELL AS THE LIKELIHOOD OF CRIME AND VIOLENCE.

 estimate
0.20

0.10

0.00
2008 2010 2012 2014 2016 2018 2020 2022
-0.10

-0.20

-0.30

-0.40

-0.50

-0.60

-0.70

CONTROL OF CORRUPTION-
IT REFLECTS PERCEPTIONS OF THE EXTENT TO WHICH PUBLIC POWER IS EXERCISED
FOR PRIVATE GAIN, INCLUDING BOTH PETTY AND GRAND FORMS OF CORRUPTION, AS WELL
A “CAPTURE” OF THE STATE BY ELITES AND PRIVATE INTERESTS.
 estimate
0.00
2008 2010 2012 2014 2016 2018 2020 2022
-0.10

-0.20

-0.30

-0.40

-0.50

-0.60

-0.70

RESEARCH METHODOLOGY-

A RESEARCH METHODOLOGY DESCRIBES THE TECHNIQUES AND PROCEDURES USED

TO IDENTIFY AND ANALYSE INFORMATION REGARDING A SPECIFIC RESEARCH
TOPIC. IT IS A PROCESS BY WHICH RESEARCHERS DESIGN THEIR STUDY SO THAT
THEY CAN ACHIEVE THEIR OBJECTIVES USING THE SELECTED RESEARCH
INSTRUMENTS. IT INCLUDES ALL THE IMPORTANT ASPECTS OF RESEARCH,
INCLUDING RESEARCH DESIGN, DATA COLLECTION METHODS, DATA ANALYSIS
METHODS, AND THE OVERALL FRAMEWORK WITHIN WHICH THE RESEARCH IS
CONDUCTED.

▪ TYPE OF RESEARCH: - THE RESEARCH IS QUANTITATIVE IN NATURE AS WE

INCLUDED THE NUMERICAL DATA AND FOCUS IS ON COMPARING THE DATA.
THIS TYPE OF RESEARCH HELPS IN TESTING THE CASUAL RELATIONSHIPS
BETWEEN VARIABLES, MAKING PREDICTIONS, AND GENERALIZING RESULTS
TO WIDER POPULATIONS.
 ▪ TYPE OF DATA USED: - THE DATA USED IN RESEARCH IS SECONDARY IN
NATURE.

▪ TYPE OF STATISTICAL METHOD: - THE STATISTICAL METHOD USED IN

RESEARCH IS CORRELATION AND LINE GRAPH.

DATA ANALYSIS AND INTERPRETATION-

YEAR VOICE AND ACCOUNTABILITY GDP
2010 -1.5 4.54
2011 -1.46 3.32
2012 -1.42 2.71 CORRELATION -0.61219
2013 -1.37 2.8
2014 -1.37 3.07
2015 -1.36 3.08
2016 -1.37 2.8
2017 -1.41 3.07
2018 -1.48 3.08
2019 -1.41 2.8
2020 -1.38 3.38

INTERPRETATION-THERE IS A STRONG NEGATIVE CORRELATION BETWEEN

VOICE AND ACCOUNTABILITY WITH IMPACT ON GDP.
 YEAR GOVERNMENT GDP
EFFECTIVENESS
2010 -0.25 4.54
2011 -0.21 3.32
2012 -0.26 2.71
2013 -0.26 2.8 CORRELATION -
=0.18149

2014 -0.05 3.07

2015 0.09 3.08
2016 0.03 2.8
2017 0.01 3.07
2018 0 3.08
2019 0.04 2.8
2020 0.23 3.38

Chart Title
2500

2000

1500

1000

500

0
0 2 4 6 8 10 12 14
-500

Series1 Series2 Series3 Series4 Series5

INTERPRETATION-THERE IS A POSITIVE CORRELATION BETWEEN

GOVERNMENT EFFECTIVENESS AND WITH IMPACT ON GDP.

YEAR POLITICAL STABILITY AND ABSENCE OF TERRORISM GDP

2010 38.65 4.54
2011 69.08 3.32
2012 0.17 2.71
2013 0.25 2.8
2014 7 3.07 CORRELATION- 0.325555
2015 49.52 3.08
2016 36.06 2.8
 2017 65.38 3.07
2018 0.27 3.08
2019 0.25 2.8
2020 7 3.38

INTERPRETATION-THERE IS A NEGATIVE CORRELATION BETWEEN

REGULATORY QUALITY, WITH IMPACT ON GDP.

YEAR CONTROL OF CORRUPTION GDP

2010 19.4 4.54
2
2011 42.2 3.32
3
2012 -0.71 2.71
2013 0.15 2.8
2014 14 3.07 CORRELATION- 0.318907
2015 28.6 3.08
4
2016 17.9 2.8
6
2017 37.8 3.07
6
2018 -0.55 3.08
2019 0.14 2.8
2020 14 3.38
INTERPRETATION-THERE IS A POSITIVE CORRELATION BETWEEN CONTROL OF
CORRUPTION AND WITH IMPACT ON GDP.

YEAR RULE OF LAW GDP

2010 26.79 4.54
2011 48.33 3.32
2012 -0.46 2.71
2013 0.15 2.8
2014 16 3.07 CORRELATION- 0.318907
2015 38.94 3.08
2016 26.92 2.8
2017 49.04 3.07
2018 -0.53 3.08
2019 0.14 2.8
2020 16 3.38
INTERPRETATION-THERE IS A WEAK POSITIVE CORRELATION BETWEEN RULE
OF LAW WITH IMPACT ON GDP.

YEAR REGULATORY QUALITY GDP

2010 19.9 4.54
2011 47.09 3.32
2012 -0.63 2.71
2013 0.17 2.8
2014 10 3.07 0.287317831
2015 28.64 3.08
2016 18.93 2.8
2017 42.72 3.07
2018 -0.63 3.08
2019 0.16 2.8
2020 10 3.38

INTERPRETATION-THERE IS A POSITIVE CORRELATION BETWEEN REGULATORY

QUALITY, WITH IMPACT ON GDP.

VARIABLES DEGREE OF CORRELATION

VOICE AND ACCOUNTABILITY -0.61219
GOVERNMENT EFFECTIVENESS 0.18149
POLITICAL STABILITY 0.325555
CONTROL OF CORRUPTION 0.3189
RULE OF LAW 0.3189
 REGULATORY AUTHORITY 0.28731

OVERALL CONCLUSION – AS WE ALL CAN SEE, POLITICAL STABILITY HAS MOST POSITIVE
CORRELATION TO GDP IN VEITNAM, SECOND IS RULE OF LAW & CONTROL OF CORRUPTION
VARIABLE, AND VOICE AND ACCOUNTABILITY HAS THE LEAST NEGATIVE CORRELATION.