Emerging Group-10

Market Ayesha Nehla – 19072

Study – Impana D P – 19082

Jitin Goel – 19083
Vietnam,
Rohith N – 19104
Philippines Varun KG - 19117
and Thailand
 AGENDA

 Topics covered on market study in Vietnam, Philippines and Thailand:

 Macroeconomic Data
 Demography
 Environmental analysis (Political, Legal, Social , Cultural, and Economic)
 Infrastructure(Natural Resources, Industry scenario)
 SWOT analysis
 Recommendations
 A sovereign island country in Southeast Asia which is
situated in the western Pacific Ocean.

At 115,831 square miles the Philippines is the 64th-

largest country in the world.

Philippines Its capital city is Manila while its most populous city
is Quezon City; both are part of Metro Manila.
(Republic
of the Its location on the Pacific Ring of Fire and close to
the equator make the Philippines prone to earthquakes
Philippines) and typhoons.
Philippines is the latest industrialized country with its
economy deeply rooted in agriculture, but in recent
years services and manufacturing.
Demography of the Philippines

Density 320.08/km²
Area 342,353 km²
Capital City Manila
Region South-Eastern Asia
Population 109 mn(2019)
Official languages Filipino, English
Demography of the Philippines

2020 Population Rank 13

2020 World Percentage 1.41%
2020 Growth Rate 1.36%
GDP $356.814 bn(2019 est.)

GDP Per Capita $3294(2019 est.)

GDP Growth rate 5.9%(2019 est.)
Life expectancy: 71.16 years
Fertility rate: 2.55 per women
 Political Factors
 Government type and stability
 Regulation and de-regulation trends
 Social and employment legislation
 Tax policy, and trade and tariff controls
 Likely changes in the political
environment
Economical Factors
 Stage of business cycle
 Current and project economic growth,
inflation and interest rates
 Unemployment and labour supply
 Labour costs
 Levels of disposable income and
income distribution
 Likely changes in the economic
environment
 Socio-Cultural Factors Technological Factors
 Population growth rate and age profile  Impact of emerging technologies

 Population health, education and social  Impact of Internet, reduction in

mobility, and attitudes to these communications costs and
 Population employment patterns, job increased remote working

market freedom and attitudes to work  Research and Development activity

 Press attitudes, public opinion, social  Impact of technology transfer

attitudes and social taboos
 Lifestyle choices and attitudes to these
 INDUSTRY
 GDP Averaging around 34% in 1980 – 2014
and dropping to 30.5% in 2017.
 The industrial sector is growing slowly
despite lower labor and operational costs in
the region.
 This sector employs 16% of the country’s
workforce.
 The government of the Philippines is making
efforts to attract foreign direct investment
(FDI) in the country by improving its
infrastructure and other paraphernalia.
 Major Industries of the Philippines
include:
 Manufacturing
 Agribusiness
 The service sector of the Philippines
overtook the industrial sector, the
current GDP of the sector is 60%
 The Philippines gained considerable
traction as a BPO location
Global Infrastructure Competitiveness Ranking of ASEAN Economies 2016 - 2017
 Natural Resources

 The natural resources of the Philippines include copper, timber,

nickel, petroleum, silver, gold, cobalt, and salt.
 The Ocean
 Minerals
 Major Crops
 Flora
 Strength
 Competitive Cost Structures Relative to Weakness
Other Global Delivery Locations
 World-Class English-Language  Potential Bottlenecks in Scalability of
Proficiency (Verbal Skills)
Philippines' IT Services Labor Force
 Cultural Affinity
 Labor Pool (Combination of Technology  Philippines "Brand"
and Business Services)
 Stable and Business-Friendly  Sales and Marketing Skills
Infrastructure

SWOT
Analysis Opportunity Threats
 Capitalizing on Enterprise Quest for Non-India  Fluctuating Political Environment
Options  IP Protection, Privacy and Data
 Government Support
Security Concerns
 Critical Mass of Service Providers
 Middle-Management Scarcity
 Intellectual Property Rights Ownership
 India "Overshadow"
 New Markets and Services
Mode of Entry and Recommendations

 The sector recommended is “Hotel Industry”

 Accommodations and Tourism contributes to 12.7% of GDP.
 Travel and Tourism is the most popular segment.
 Industry is growing at a rate of 5% every year.
 We recommend “FDI”(Foreign Direct Investment) for this industry.
 THAILAND

 It was called SIAM till 1949.

 Southeast Asian Country which is bordering Andaman Sea.
 Its capital city is Bangkok.
 It has a Constitutional Monarchy and has a King as Head
of the State.
 There main religion followed is Buddhism.
 The Thai currency is “BAHT”.
Demography
Macro Economic Data

2020 Population rank 20

2020 World percentage 1.5%
2020 Growth rate 0.25%
GDP $616.783 bn(2019 est.)
GDP per capita $9,598(2019 est.)
GDP Growth rate 3.8%(2019 est.)
Literacy rate 92.9%
  Unitary Parliamentary and Constitutional Monarchy.
 Prime Minister Head of State.
 It has traditional and western laws.
 Laws are of Hindu Brahmin by Khmer empire.
 Strict laws in Thailand such as Death for crimes such as Drug
Political and possession and smuggling.
 The Business operations in Thailand is governed by Foreign
Legal Factors Business Act and has to posses a Special visa.
 Economic Factors
 8th Largest Economy in the World.
 Export dependent – Consists of 2/3rd of the
Economy.
 Has an inflation of 1.06% and a newly
industrialised country.
 Cheap labour and turnover is 36.8 trillion.
 The foreign trade increased by trade
agreements between many nations such as
US, China, Japan and Europe.
Socio Cultural Factors
 Influenced by Indian, Lao, Burmese,
Cambodian and Chinese.
 Theravada Buddhism is main Identity of Thai.
 Several different Ethnic groups.
 The arts are influenced by “Buddhist culture”
and “Indian Epics”.
 The cuisine blends five fundamental tastes i.e.
 sweet, spicy, sour, bitter, and salty.
 Natural Resources and Infrastructure
 Mining – Coal, Natural gas, Gold, Lead, Manganese, Rubber, Limestone, Zinc,
tungsten etc.
 Forestry and Fishing – 28% of total area is covered with forest and 3.1 million
metric tons of fishes, prawns, and other ocean products.
 Manufacturing and Energy – Contributes 9.4% of GDP and 43.8 billion kw of
electricity.
 Infrastructure has been allocated 7.5 billion for development.
 Projects such as Express ways, Rapid Mass Transportation, Telecommunication,
Water supply and Low income housing.
Industry Scenario

 Automobile and Automotive Parts(11%)

 Financial Services(9%)
 Electronic Appliances and Components(8%)
 Tourism(6%)
 Healthcare Sector(0.3%)
 Cement Manufacturing
 Agricultural Processing, Heavy and Light weight Industry
 Furniture and Plastics
 SWOT Analysis
STRENGTHS
• Natural resources like Coal, Gold, Precious Stones
Etc.
• Knowledge in Agri Business and Food Industry.
• Skilled and Cheap Labour force.
• Brand “THAI”.
• Best in Tourism, restaurant and Spa.
• Exporter of food, automobile, rubber etc.
OPPORTUNITIES
• Expansion of production base from other countries.
• Growth in Healthcare sectors and Shortage of Pvt hospitals.
• Abundance in natural resource and Agri products.
• Tourism and customer intake to country.
• Export and import of services to the country.
WEAKNESSES
• Lack of Knowledge competency.
• Inflexible immigration laws and bureaucracy.
• Limited resources to assist Pvt ltd companies and
Entrepreneurship.
• Lack of funds or capital to acquire new technologies.
• Low level of knowledge and appreciation of other nations.
THREATS
• Global competition from other countries.
• Takeover by strong organisations.
• Lack of National direction both direction and implementation.
• Lack in financial opportunities limited number of banks.
 Mode of Entry and
Recommendation
 The sector recommended is “Healthcare Sector”.
 Healthcare Sector contributes to 4.3% of GDP.
 80% of Medical equipment and other are imported.
 Increased consumption of Drugs, Narcotics etc.
 Shortage of Private Hospitals and Medical Professionals.
 We recommend “Franchising” for the pharmacy and “Joint
Venture” with existing hospitals.
Vietnam

 The current population of Vietnam is 96,961,717.

 Vietnam ranks number 15 in the list of countries
by population.
 37.7 % of the population is urban.
 The median age in Vietnam is 32.5 years.
 The total land area is 310,070 sq. Km.
 Total Population Sex Ratio
Males Male % Females Female % (2020) (males to females)
48,598,254 49.93% 48,740,329 50.07% 97,338,579 1.00

 LITERACY RATE 75.77 Years

 INFANT MORTALITY 15.4/1000 live births
 GDP $223,779,865,815 (2017)
 GDP Growth rate 6.81%
 LEGAL ISSUES Socio-Cultural Factors
 Starting a Company  Religion and philosophy

 Reporting and filing (in Vietnamese)  Visual arts

 Currency  Calligraphy

 Taxes  Silk painting

 Payments and the banking system  Woodblock prints

 Bureaucracy and transparency

 IT Outsourcing Business in Vietnam

Reformed
Stable Economic Developed IT Human
Administrative
Growth Infrastructure Resources
Procedures
Strength
 Vietnam's location on the South China Sea gives the country access to the
main inter Asian shipping routes, as well as access to the developing land
transport links with ASEAN countries, allowing the country scope to
develop its trade logistics.
 Relations with the US are generally improving, and Washington sees Hanoi
as a potential geopolitically in South East Asia.
 Vietnam has been one of the fastest-growing economies in Asia in recent
years, with GDP growth averaging 7.6% annually between 2000 and 2009.
 Large, skilled, low-cost workforce has made Vietnam attractive to foreign
investors.
Opportunities:
 The beginnings of local commercial vehicle production, which will help
improve the stock of lorries used by road haulage companies.
 The government recognizes the threat that corruption poses to its legitimacy
and has acted to clamp down on graft among party officials.
 ƒ WTO membership has given Vietnam access to both foreign markets and
capital, while making Vietnamese enterprises stronger through increased
competition.
 Vietnam is increasingly attracting investment from key Asian economies,
such as Japan, South Korea and Taiwan. This offers possibility of transfer of
high-tech skills.
Weakness:
 The generally poor state of the road network. Despite new highway
construction, only 13.5% of the road network is considered to be in good
condition, only 26% has two or more lanes and only 29% is tarred.
 Corruption among government officials poses a major threat to the
legitimacy of the ruling Communist Party.
 Vietnam still suffers from substantial trade, current account and fiscal
deficits, leaving the economy vulnerable as the global economy continues to
suffer in 2010. The fiscal picture is clouded by considerable 'off-the-books'
spending.
 Vietnam's infrastructure is still weak. Roads, railways and ports are
inadequate to cope with the country's economic growth and links with the
outside world.
Threats:
 Vietnam risks losing out to neighboring countries if it can't develop its
infrastructure to keep up with the pace of demand.
 Although strong domestic control will ensure little change to political scene
in the next few years, over the longer term, the one-party-state will probably
be unsustainable.
 Prolonged macroeconomic instability could prompt the authorities to put
reforms on hold, as they struggle to stabilize the economy.
 Ongoing trade disputes with the US, and the general threat of American
protectionism, which will remain a concern.
Mode of Entry and
Recommendations
 The sector recommended is “BPO Services”
 BPO Services generate $2bn revenue.
 BPO industry has reach $11.4mn in 2018 from
$4.2mn in 2011, which is up by 15%.
 We recommend “Strategic Alliance” with
existing BPO Services

 We are entering in this industry because there is

a lot of potential market in this sector and this
will help the Indian BPO service industry to have
a potential build in this sector.
 References
https://toughnickel.com/industries/Should-you-start-an-IT-outsourcing-business-in-Vietnam
https://www.investopedia.com/articles/investing/091815/emerging-markets-analyzing-philippines-gdp.asp
https://www.historycentral.com/nationbynation/Philippines/Economy.html
https://business-finance.blurtit.com/578963/what-is-philippines-main-source-of-income
https://www.howandwhat.net/pestel-analysis-philippines/
https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-hanoi/documents/publication/wcms_630
854.pdf
https://www.hrw.org/world-report/2019/country-chapters/vietnam
https://www.vietnam-briefing.com/news/market-entry-options-vietnam.html/
THANK YOU