Legal Environment of the Vietnam Markets

Legal Environment of the Vietnam Markets Socio-Cultural and Political-Legal Environment of the Vietnam Markets Home›Research Posts›Socio-Cultural and Political-Legal Environment of the Vietnam Markets Research PostsMethodology:This report is a product of an ambitious research done on various business information databases and thorough consultation with different research agencies. Business databases have the latest news on what is happening on the ground in all parts of the world as far as businesses and business opportunities are concerned. Research firms also came in handy because they have archived materials that were also relevant in this research.Introduction:Opportunities and risks, from time immemorial have     been chief considerations before coming up with any viable investment venture, any where in the world. Vietnam form   a   historical view   point has   been   a country which   presents abundant business   opportunities for investors despite   the existing   socio-cultural and political legal environments . This report will therefore form an important and valuable reference point for those willing to come up with viable business opportunities and investment ventures in Vietnam.Business Opportunities in VietnamVietnam presents abundant business opportunities for the products of ‘Read the World’. This is particularly true because, from time immemorial, the   country has been   faced and still   continue to   be faced   by a   perennial shortage of   trees which has eventually dwindled forest resources as a result of serious logging , a situation that has been   compounded   by a variety   of   challenges, including but   not limited to, illegitimate cutting down of trees under the guise   of using them for even   more   beneficial purposes.Its pulp and paper industries have seriously been reeling under the lack of raw materials. The herculean yet recommendable efforts of the country’s authorities in control     and management especially in the forestry sector directed at fighting illegitimate logging of trees have been futile because of the social character of the Vietnamese, which has made many of them to be able to only see their present benefits at the expense of the ensuing ramifications.Other authorized agencies have also not been instrumental at directing their efforts towards the same.   Vietnam’s sactions and punishments on illegal loggers have also been weak. In the midst of all these is a golden business opportunity, a ready and available market for the products of ‘Read the World’ in Vietnam’s retail outlets.Majority of the Vietnamese are also educated and will definitely make use of the products. Moreover, the price index of the consumers have also been rapidly on the increase   since   2010 when the government   came up with a   raft of measures which   were directed at stemming down   the rate of inflation and the implementation and innovation of strategies   to develop medium and   small-size of business enterprises. (Hoboken, 2010, p 336)The Vietnam government has also approved electronic tax services which are expected to modernize the services. This will enable the country develop a lot of consistency and in the same breathe, ensure there is transparency in managing its taxes.( James, 1997, p.37)This will stem down the ever-rising tide of corruption among the Vietnamese especially in the line of collection and processing of taxes. This was after having realized it had delayed in the development of strategies that are geared towards adoption of e-commerce.This   is also expected   to strengthen   the legalities and the   modalities   related to administration and line it   with the   expectations of internationally recognized standards   and   also offer attractive services to   the tax paying bodies, all of   which will work   to the advantage of   ‘Read the   World’.Vietnam’s economic foundations and how it offers this investmentOvertime, Vietnam has been placing a lot of emphasis on its slow integrati on in trade, mainly within a global scale and cultivation of a political climate that would culminate into an attractive system for investment by other world countries. (Charles,1988,   p.79)The country has also been on the frontline towards the realization of a rapid transformation into an economy that is more oriented towards the marketing sector. The country is currently working on a reform package that has brought on board and hankered into partial and     private ownership of enterprises that were previously owned by the state and ambitious strategies that are geared towards liberalizing the existing trade regime. (Harrison, 1997, p. 56)In the last few years, Vietnam has been grappling with a global environment which from the   economic perspective has come   with its own challenges   but has   registered   an   annual   economic   growth   rate of approximated   to be about 7 % during   the last   5 years. (Jin, 2005, p. 91)Just like   in   youth-dominated markets like Brazil, Mexico, India, South Africa Philippines among others, the younger population of   the Vietnam have   increasingly   been equipped with new ideas, ways   and modalities of   engaging customers, coming up with fresh   and   workable solutions to problems   associated with   the   aged, and   also initiating   new models of organization. This, to larger extent is shaping the future of Vietnam.The economy of Vietnam is one that is still transitional. The Vietnamese government, has therefore been highly encouraging and supporting a Micro entrepreneurship culture of initiating small business enterprises among the people so as to stabilize the economy.This would place the products of ‘Read the World’ on a more competitive edge in the retail outlets. Moreover, since the late 20th century, Vietnam and Cambodia     have jointly been trying to open up their transitional economies to global trade and investment opportunities. This has seen them achieve good results, which has continually p laced them in a well established position in the war towards the reclamation of the economy of the world.Threats to business opportunities in VietnamThreats to businesses in Vietnam can be grouped as state and non-state     threats. The threats include but are not only limited to:Corruption: Corruption can be defined as that which is done with an aforethought of getting some self motivated benefits which are not in line with the rights and the entitlements of other people. (Dick, 2010, p.442)Dynamics in the political, commercial and legal sectors have watered the tree of corruption in Vietnam. (Tim Lindsey and Howard Dick, 1948, p 68)Corruption is alive and kicking, both at the higher and at the cadres of the Vietnamese government.   This is doing more harm than good. This ahs caused disparity in     its economy and d the aid given to the government has often been misplaced. (Bird, 2003)The sitting government has been     involved in many scandalous deals which have always raised ey ebrows     among the court of public opinion.   It is a vice that the government has given only paper solutions.   Corruption in Vietnam is said to permeate every economic sector and the government has dismally failed in the war against it. (Caleb, 2010, p.123)Government regulations are also     very stringent to the extent that the people are forced to grease the palms of those in charge.Over the years, access to decent and afford able housing in Vietnam continue to be a problem. This has culminated into a situation where the rental rates for the existing few decent offices have flared up.(Battler, 1989, p.234)Real estate agents and companies have however popped up in Vietnam and this has greatly improved access to decent housing and office rental units. (John, 1967,p.24)As a   result of   the same,   rental rates   have also been   able to stabilise and the   supply and   demand forces can now   positively interact. On the contrary, the demand for business offices has not been adm irable. (Charles, 1988, p.121)The country has also not been very instrumental at removing the existing    red-tape or the bureaucratic bottlenecks.   All these can impact negatively on the operations of ‘Read the World’.   Currently, there are so many administrative procedures which the country has promised to reduce. (Sue, 1997, p.101)This can     slow down the processing of the legal requirements before ‘Read the World’ can begin selling its products to the Vietnam people. These have seriously dented the local climate for investment.( Bird, 2003, p334)As a result of run-away corruption and thuggery in government, regulations are still not very transparent. The government systems have terribly failed.   Invoices are also printed according to the regulations of the governments own hedonistic pursuits. (Manuel, 1994).The rights of the investors have also not been properly hankered and enforced.   This has therefore attracted very little in     terms of investment in the coun try. (Jonan, 1999,   p84)The pervading political climate and corruption has worked to the disadvantage of investors.( Benedict, FW Davies,1960, p.223).This can also to some extent work against the establishment of this viable business opportunity. Investors are also highly taxed and this has discouraged many potential investors.(Hook,1999, p.48)Vietnam,   being a third   world   country which   is   still   grappling with putting itself on the right   economic footing is mainly   composed of people who are   still not skilled in any   area. Very few people are skilled in one way or the other. (Camnont Walter, 1999, p. 345)Overdependence on rice cultivation for commercial and subsistence purposes leaves very few to other jobs.( Geoffrey, 1986,   p.79)As a result, the products of ‘Read the World’ may not be given priority in the scale of preference of the Vietnamese.ConclusionThe decision to sell the products of ‘Read the World’ in Vietnam would be the most prudent of all de cisions. Despite the inherent risks and threats, ‘Read the World’ would reap more from the sale of its products.RecommendationsAmbitious advertising should be carried out in the internet and other forms of media to inform the Vietnamese people on     the same.Increasing diplomatic   relations with   Vietnam