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ECONOMIC COMPETITIVENESSVIETNAM
AZUSHA KOBAYAKA SHUNSUKEYOSHIOKA NGUYEN CHUNG KIEN
JAIMS-HAWAII-APRIL 2016
MODERNIZATION
PERFORMANCE OVERVIEW
INSIDETHE INDEX FRAME ISTHE DIMOND OF WEAKNESS
ECONOMY OFVIETNAM – AVIEW FROM JAPAN
WEAKNESS 1/3:TECHNOLOGY
• Not enough education at
university
• Not enough training at company
Lack of
technology
expert
• Electric power
• Network, IT device
Lack of IT
infrastructure
• Scientific research
• R&D
Difficult to
make
innovation
WEAKNESS 2/3: LOCAL SUPPLIER
Immature local business
• All material and devices are imported, low value add
• Lower cost to import
• No accumulation of knowledge
Lack of middle class worker
• Difficult to find skilled worker
• Need to train from scratch, cost more
WEAKNESS 3/3: FINANCIAL MARKET
Lack of financial
business experience
• Bank, accountant,
trading
• International
customary practice
No exchange
currency offshore
market
• Low rate flexibility
• Low trade
availability
• Low money
liquidity
Infant Individual bank
account status
• Low financial
literacy
RATE FLEXIBILITY AND TRADE
AVAILABILITY
Vietnam
EU
America
Japan
WEAKNESS: CONCLUSION
Vietnam has large young
population, however
doesn’t provide higher
education opportunity
sufficiently
The current country
development is relying
on foreign companies
and local companies is
struggling to accumulate
knowledge and grow
skilled workers
The fundamental of
business, financial system
doesn’t develop at
country level.This
situation makes difficult
to forVietnam to move
into next industry phase
STRENGTH 1/3: MARKET SIZE
• Attractive foreign market (25th in world)
• 900 million people
• No. 3 market in ASEAN (Indonesia, Philippine)
• Number of people still growing
• Huge economic growth
• Personal income/expenditure is rapidly increasing
• Trading/investing advantage
• Opened market for foreign countries (US, Korea…)
• No tariff barrier in ASEAN (growing countries)
STRENGTH 2/3:
LABOR
MARKET
EFFICIENCY
• Super young worker’s country
• Average age 27 (very young!!) but
cheap
• Very diligent
no absence, working over 300 day a
year
• Very bright
literacy rate: 95%, high learning skill
• Role model society for female worker
• Female participation rate is “top” in
Asia.
STRENGTH 3/3: CHINA PLUS ONE
China plus one: Risk hedge strategy for reducing
over-dependence on China by other Asia country as sub factory.
Vietnam is one of the best “China plus one”.
• Geographically close to China
• Political Stable/Safe (better than China)
• Communist but the pro-Japanese party
• Have Capability for next mother factory
• Member of ASEAN
• Large population
• Low labor cost (cheaper than China)
STRENGTH: CONCLUSION
Vietnam has an huge
growing market and their
government make a lot
of effort to invite foreign
investors.
Young population and
their national personality
has quite unique and
attractive point.
We cannot ignore the
great China. Vietnam is
not only ideal “China plus
one” country but also
has capability for next
China in ASEAN.
ECONOMY OFVIETNAM:AN INSIGHT CONCLUSION
ECONOMY OFVIETNAM
GDP GROWTH RATE IS HIGH,
YET PPP IS MODERATE
GDP GROWTH HAS BEEN UNSTABLE SINCE 2008
THE GOVERNMENT IS FIGHTING AGAINST INFLATION,
YET IT SUFFERS FROM BUDGET DEFICIT
GOVERNMENT BUDGET
VIETNAM IS UNDER HIGH RISK OF DEBT
IT IS
ALLRIGHT,
DEBT IS
NOT
OVERHEAD
THE CURRENCY DEPRECIATE IN SURGE DUE TO
DEFICIT SPENDING POLICY, TRADE BALANCE MAY
BE MUCH WORSEN WITHOUT THAT POLICY,
Economy,
go ahead!!!
Current exchange

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Vietnam economy kien-azusha-shun ver 2.0

  • 1. ECONOMIC COMPETITIVENESSVIETNAM AZUSHA KOBAYAKA SHUNSUKEYOSHIOKA NGUYEN CHUNG KIEN JAIMS-HAWAII-APRIL 2016 MODERNIZATION
  • 2. PERFORMANCE OVERVIEW INSIDETHE INDEX FRAME ISTHE DIMOND OF WEAKNESS
  • 3. ECONOMY OFVIETNAM – AVIEW FROM JAPAN
  • 4. WEAKNESS 1/3:TECHNOLOGY • Not enough education at university • Not enough training at company Lack of technology expert • Electric power • Network, IT device Lack of IT infrastructure • Scientific research • R&D Difficult to make innovation
  • 5. WEAKNESS 2/3: LOCAL SUPPLIER Immature local business • All material and devices are imported, low value add • Lower cost to import • No accumulation of knowledge Lack of middle class worker • Difficult to find skilled worker • Need to train from scratch, cost more
  • 6. WEAKNESS 3/3: FINANCIAL MARKET Lack of financial business experience • Bank, accountant, trading • International customary practice No exchange currency offshore market • Low rate flexibility • Low trade availability • Low money liquidity Infant Individual bank account status • Low financial literacy
  • 7. RATE FLEXIBILITY AND TRADE AVAILABILITY Vietnam EU America Japan
  • 8. WEAKNESS: CONCLUSION Vietnam has large young population, however doesn’t provide higher education opportunity sufficiently The current country development is relying on foreign companies and local companies is struggling to accumulate knowledge and grow skilled workers The fundamental of business, financial system doesn’t develop at country level.This situation makes difficult to forVietnam to move into next industry phase
  • 9. STRENGTH 1/3: MARKET SIZE • Attractive foreign market (25th in world) • 900 million people • No. 3 market in ASEAN (Indonesia, Philippine) • Number of people still growing • Huge economic growth • Personal income/expenditure is rapidly increasing • Trading/investing advantage • Opened market for foreign countries (US, Korea…) • No tariff barrier in ASEAN (growing countries)
  • 10. STRENGTH 2/3: LABOR MARKET EFFICIENCY • Super young worker’s country • Average age 27 (very young!!) but cheap • Very diligent no absence, working over 300 day a year • Very bright literacy rate: 95%, high learning skill • Role model society for female worker • Female participation rate is “top” in Asia.
  • 11. STRENGTH 3/3: CHINA PLUS ONE China plus one: Risk hedge strategy for reducing over-dependence on China by other Asia country as sub factory. Vietnam is one of the best “China plus one”. • Geographically close to China • Political Stable/Safe (better than China) • Communist but the pro-Japanese party • Have Capability for next mother factory • Member of ASEAN • Large population • Low labor cost (cheaper than China)
  • 12. STRENGTH: CONCLUSION Vietnam has an huge growing market and their government make a lot of effort to invite foreign investors. Young population and their national personality has quite unique and attractive point. We cannot ignore the great China. Vietnam is not only ideal “China plus one” country but also has capability for next China in ASEAN.
  • 14. ECONOMY OFVIETNAM GDP GROWTH RATE IS HIGH, YET PPP IS MODERATE GDP GROWTH HAS BEEN UNSTABLE SINCE 2008
  • 15. THE GOVERNMENT IS FIGHTING AGAINST INFLATION, YET IT SUFFERS FROM BUDGET DEFICIT GOVERNMENT BUDGET
  • 16. VIETNAM IS UNDER HIGH RISK OF DEBT IT IS ALLRIGHT, DEBT IS NOT OVERHEAD
  • 17. THE CURRENCY DEPRECIATE IN SURGE DUE TO DEFICIT SPENDING POLICY, TRADE BALANCE MAY BE MUCH WORSEN WITHOUT THAT POLICY, Economy, go ahead!!! Current exchange