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ASSIGNED COUNTRY REPORT

1) Introduction
a) Kristin Reynolds, Vietnam b) Current Population: 91,949,482 i. Population growth rate over past 10 years: 2013 1.03%, 2012 1.1%, 2011 1.0%, 2010 1.0%, 2009 1.1%, 2008 1.1%, 2007 1.1%, 2006 1.1%, 2005 1.2%, 2004 1.2%, 2003 1.2% ii. % urban vs. rural: now vs. 20 years ago: Urban (2011) 31%, Rural (2011) 69%, Urban (1991) 20.64%, Rural (1991) 79.37% iii. Average age 2013: 28.7, male: 27.6, female: 29.7

2) Economic Profile
a) GDP (Gross Domestic Product): most recent year available (US$) $141.7 billion USD 2012 i. GDP growth rate for each of past 5 years 1. 2012 (5.6%), 2011 (5.9%), 2010 (6.8%), 2009 (5.3%), 2008 (6.3%) b) Most important natural resources: phosphates, coal, manganese, bauxite, chromate, offshore oil and gas deposits, timber, hydropower i. % of oil imported; from which countries: Taiwan (20%), South Korea (%N/A), China (% N/A) c) Top 3-5 industries (e.g. Textiles, Energy) and their percentage of GDP: Agriculture (21.6%), Industry (40.8%), Services (37.6%) (2012) d) Top 3-5 trading partners (other countries): Exports: US (18%), China (%11), Japan (11%), Germany (3.7%), Imports: China (22%), South Korea (13.2%), Japan (10.4%), Taiwan (8.6%), Thailand (6.4%), Singapore (6.4%) i. Major Imports: machinery & equipment, petroleum products, steel products, raw materials for clothing and shoe industries, electronics, plastics, automobiles ii. Major Exports: clothes, shoes, electronics, seafood, crude oil, rice, coffee, wooden products, machinery iii. Member of any International Trade Groups / Associations: World Trade Organization (WTO), Association of Southeast Asian Nations (ASEAN) e) Individual Wealth / Income Distribution: i. Poverty level (US$): $19-31/ month (2011-2015) 1. % below poverty: 11.3% (2012) ii. % of total wealth concentrated in top 1% of population: N/A iii. Minimum Wage (US$): $4.74 iv. Average wages (US$): $150/month 1. Production worker (manufacturing): $101/month (US$) 2. Professional (banker): $360.27/month (US$) 3. Management: $184.01/month (US$) v. Average Annual Household Income (US$): Rural ($743/year), Urban ($2,497/year) 1. Average cost of living space (e.g. apartment) in major cities: rent for 3 bedroom apartment in city center $846.38/month, buy apartment in city center $1,640.39/sq. meter. vi. % Unemployment: most recent year available: 2012 (4.5%) vii. Recent rates of inflation (%) 2012 (12.6%) f) Education: i. % of population: 97% of the population has had some form of education. 1. Literate (Literacy rate) (2011) 93.4%, males: 95.4%, females: 91.4%

2 2. With Secondary Education (circa age 18; High School in US): males: 78%, females: 84% (2007 2011) 3. University : a. % who apply to university who are accepted: 1.3 million applied for university, 500,000 applied for college in 2012, only had room to accept 600,000. b. % who attend public vs. private universities / colleges: N/A c. % who graduate with university degree: undergraduate (72.2%), graduate (17%) 4. With other post-Secondary education (e.g. trades): 10.7%

3) Social / Cultural Profile

a) Racial and Ethnic mix (% of population): Kinh (Viet) (85.7%), Tay (1.9%), Thai (1.8%), Muong (1.5%), Khmer (1.5%), Mong (1.2%), Nung (1.1%), Other (5.3%) i. Immigrants: 25-30% 1. Mostly from where: N/A 2. Attitudes toward immigrants: Negative if have any health defect 3. Restrictions on immigration: Visa required, and rules to follow based on specific visa. ii. Historical conflicts between races or ethnic groups, if any: Vietnam War iii. Income disparities between different groups / classes, if any: N/A b) Attitude toward women in the workplace: dominated by men, women traditionally occupy lowerstatus jobs. In companies with international staff, men and women are considered as equals. c) Language(s): percent of population speaking each: Vietnamese 65.8 million (1999 census), English is second, French, Chinese, Khmer are also spoken. i. Other countries with same language (spoken and/or written): N/A d) Principal religions and percentage of population who are members of each: Indigenous (45.3%), Buddhism (16.4%), Christianity (8.7%), Non-religious (29.6%) i. Religious influence in governing (how secular is the government): N/A ii. Historical conflicts between sects, if any: When Vietnam was split into north and south, Buddhists and Catholics protested against the government, called the Buddhist Crisis. e) Degree of corruption: i. Within government, both high and low levels: corruption is among highest in the world. Score (31), High CI (35), Low CI (27) ii. Within private industry: N/A f) Government provided (Social) benefits: i. Health care: each citizen is entitled to the basic facilities of health care ii. Education: primary education is allowed to those who apply iii. Retirement: many people are retiring here because of low costs of living g) Employer provided benefits: i. Private Health Insurance: N/A ii. Pension programs: can design their own pension package, considered deductible expenses and regulated by law. iii. Time off (vacations, holidays, standard # of hours in work week): no more than 8 hours a day, 48 hours a week, public holidays, personal leaves (marriage, death)) iv. Describe Pregnancy Leave program (length of absence, pay, right to return to same job): 100% of last 6 months earnings paid for child care, can return to work before the end of maternity leave and receive wages and maternity benefits if she returns to work 60 or more days after giving birth if cleared by health professional and employer. A lump

3 sum of 2 months of minimum wage is paid for each child born or for each child younger than 4 months who is adopted. h) Organized Labor (Unions) i. % of workers unionized: 4.3 million ii. Principal unions 1. National vs. local negotiations: N/A iii. Strikes & Work Stoppage history (i.e. is there a high or low degree of disagreement between management and unions?): In 2013 there were 400 strikes that refer to mass work stoppages not backed by a labor union. i) Nationalism & Conflicts: i. National heroes and holidays; key dates: Trung Sisters (Trac and Nhi) led and insurrection against the Chinese, winning national independence for Vietnam in 40 CE. January 31st, New Year; April 9th, Vietnamese Kings Commemoration Day; June 28th, Vietnamese Family Day. ii. Sources of national pride (e.g. history, economic prowess, food, sports): carnival atmosphere with traditional drums, gongs during Mid-Autumn Festival and the Lunar New Year. Ao dai is a distinctive culture of Vietnamese women. Pho is most popular food in Vietnam. iii. Principal conflicts over past 100 years, external and internal: Vietnam War iv. Current border / property disputes, if any: N/A v. Recent terrorist incidents: 2013, 52 Vietnamese killed in car bomb attack targeting the Yemeni Defense Ministry complex in Sanaa vi. Member of any international military alliance 1. Principal military allies: Philippines j) Politics i. Issues regarding political stability: corruption is the biggest issue in Vietnam regarding political stability. ii. Freedom of the Press, internet access, free speech, demonstrations: Vietnam is one of Asias harshest environments for the press (2012). There are legal and physical attacks to punish and intimidate journalists for the government which are led by the Communist Party of Vietnam. The 1992 constitution recognizes freedom of expression, but the criminal code prohibits speech that is critical of the government. Censorship of online content is increasingly common. Internet service providers are legally required to block access to websites that are considered politically unacceptable. In 2008, the Ministry of Information and Communications formed an agency to monitor the internet and blogosphere. The government has denied using cyber-attacks to monitor and prevent dissident activity, malicious programs attached to downloadable Vietnamese language software attacks which target politically sensitive websites. Police often use violence, intimidation and raids of homes and offices to silence journalists who report on sensitive topics. Almost all print media outlets are owned or controlled by the CPV, government institutions, or the army. 40% of the population accessed the internet in 2012, with the vast majority utilizing internet cafes and other public providers. iii. Respect for patents, intellectual property rights, trademarks: Vietnam is a member of the World Intellectual Property Organization (WIPO) and a member country of various international treaties and agreements relating to the protection of intellectual property rights. Its legal system on intellectual property is qualified to meet with TRIPS standards, providing a rather comprehensive legal framework for registration, protection and worldwide enforcement of intellectual property rights of companies, organizations, and individuals in the country. Any organizations, individuals shall have the rights and responsibilities to take appropriate measures permitted by law in order to protect their

4 own intellectual property rights and must respect intellectual property rights of others in accordance with this Law and other applicable provisions of law. To recognize and protect the intellectual property rights of organizations and individuals on the basis of ensuring the equal benefits of intellectual property rights holders and the public interest; not to protect the intellectual property objects which are contrary to the social morality, public order or harmful to national defense and security. According to Article 4.16, IP Law of Vietnam, trademark means any sign used to distinguish goods or services of different organizations or individuals. A registered trademark gives you a monopoly right on that particular brand. To qualify for registration, a trade mark must be distinctive. According to Article 73, IP Law of Vietnam, a mark shall be deemed to be distinctive if it consists one or more easily noticeable and memorable elements, or many elements forming an easily noticeable and memorable combination. 4) Analysis a) Market Attractiveness i. Please list the pros and cons of selling your businesss products /services in this country (note: assume your business has no current presence in this country): 1. Pros a. Market diversification b. Health care products not in top industries, allowing room for new companies to enter the market. . c. Every citizen has access to basic healthcare. 2. Cons a. Different currency (exchange rate) b. Very difficult to advertise product in a country where 40% is online, and there are strict legal restrictions on the press c. Country has weak purchasing power b) Sourcing Attractiveness i. Please list the pros and cons of sourcing (e.g. manufacturing, customer service, suppliers, subcontracting) from this country for your business (note: assume your business has no current presence in this country): 1. Pros a. Lower wages b. English is a second language c. We are already in their top 5 trading partners. 2. Cons a. Different labor laws than US b. High potential for corruption, possibility of property destruction, loss of employees c. There 400 strikes registered in 2013 d. There has been a diminishing growth rate for GDP since 2008

Works Cited "The Canadian Trade Commissioner Service." Site of the Canadian Trade Commissioner Service to Help Companies Do Business Abroad: Market Studies, Contacts Abroad, Services of Our Offices Abroad. N.p., n.d. Web. 23 Jan. 2014. "Protection of Patents and Trademarks in Vietnam." Protection of Patents and Trademarks in Vietnam. N.p., n.d. Web. 23 Jan. 2014. "Salary Survey in Vietnam." | Salary Comparison. N.p., n.d. Web. 23 Jan. 2014. "Vietnam Economy Profile 2013." Vietnam Economy Profile 2013. N.p., n.d. Web. 23 Jan. 2014. "Vietnam." Freedom House. N.p., n.d. Web. 23 Jan. 2014. "Vietnam GDP Data & Country Report | Global Finance." Vietnam GDP Data & Country Report | Global Finance. N.p., n.d. Web. 23 Jan. 2014. "Vietnam's 2013 Oil Product Imports Fall for Second Year on Higher Domestic Output." - Oil. N.p., n.d. Web. 23 Jan. 2014.