Vietnam Country Profile: In 2011, Statistics from The World Factbook have recorded 9 054 929 people in Vietnam

with a population growth of 1.077% , a death rate of 17.07 deaths per 1000 people in comparison with the world average of 119 deaths and a birth rate of 1.91 children born per child. I think this is not needed, necessary too long. The capital city is Hanoi with a population of 2.668 million pe ople. Buddhism accounts for 9.3% where as Catholicism accounts for 6.7%. The official language is Vietnamese and English is favoured as a secondary language. Vietnam s influences of cultural, political and legal influences and economic environment significantly differ to Australia resulting in potential investors extensively researching the influences in order to make the right decision. Sounds weird The Culture and business Unlike the informal and direct Australian culture, in Vietnam, the culture and business etiquette is formal and indirect. For example: Australian business women/men will directly inform their clients whether they are interested in a proposal or not as they are conscious about time. On the other hand , when Vietnamese business women/men seem enthusiastic it does not necessarily indicate their interest but their politeness. [PDF] In placing foreign direct investments in Vietnam there are some significant cultural influences that investor should consider. * Buddhism is one of the main religions resulting in individuals to act in kindness rather than creating conflict, as they believe in peace. (Buddhism tourism) Confucianism is another significant cultural influence in Vietnam, which teaches the importance of attaining personal salvation through the right action of the individual. (Buddhism in Vietnam) Similar to Buddhism, it is built around extensive ethical conduct and loyalty especially loyalty to their superiors. (textbook). The treatment and obligations of individuals towards society is relied upon their relationship with another. [Vietnam, culture, customs and etiquette] = to long * In a business context, a very formal setting is required, where appointments should be made several weeks in advance, punctuality and relationships are a significant part of doing business. *Gift giving at the end of meetings is also part of tradition. This should not be mistaken for bribery as this strengthens the business relationship. * Upon greeting each other, shaking of the hands and bowing is acceptable for same sex individuals. However, the men should always wait until the women extends their hand, if not then a simply bow is acceptable. As a result of the significant differences between Australia and Vietnam, foreign investors must research extensively in the cultural aspect of Vietnam in order to do business in an effective and efficient manner and increase their goodwill. If

not, investors will disrespect their clients, which can result in a rejection of their business proposal and decrease goodwill. The political and legal system Vietnam s political system is under a one-party state called the Communist Party of Vietnam (CPV). Communists believe that socialism can only be achieved through violet revolution and totalitarian dictorship (textbook) As a result of this, there is no democracy resulting in rapid changes of the law without notice to the citizens. ( I think maybe not needed, too long and detail). This can cause a lot of damage to the manufacturing firm as it can either make or break the company due to the changes In 2006, there has been major corruption in the Ministry of Transport with the accusation of embezzlement, bribery and nepotism resulting in arrests of the politician. This illustrates that the international community of the lack of commitment of CPV in elucidating the corruption within their party . (sounds weird) However, in recent years, the National Assembly of Vietnam has been developing plans to examine the current legislation and government account of their wrongdoing. The success of this assembly can only be seen in the next election of 2012 (website) In 2002, under the pressure of international community, CPV has integrated human rights into their Constitution and laws and removed whole arsenal regulations and directives, which criminalises freedom of speech creating a more democratic legal system, which has appealed to the wider community. ( I think not necessary) The Australian and Vietnamese relationship have continued to grow with the Australian Prime Minister attending meetings in 2010 and the Minister of Labour and Planning from Vietnam displaying their interest within Australia. (sentence sounds weird) Since the inclusion of human rights into their constitution and became a more democratically correct country. (sentence sounds weird) There has been an increase of interest regarding investing in Vietnam, leading to an increase in of employment resulting in an increase of economic growth of the overall country.

The economic In the last 30 years, Vietnam had to recover from war, the loss of financial support from the old Soviet Bloc and the strictness of a centrally- planned economy as a result ____of this, the government have attempted to reaffirm their commitement to move from a communist country to a country that supports economic lliberalisation and the international integration. (Sounds weird doesn t flow) Since becoming a member of WTO, Vietnam had rapidly decrease their poverty level from 25% to 21% in 2009 and the implementation of modernization of the economy has resulted Vietnam supporting a export- driven industries. It is predicted that Vietnam s economical position will remain stable according to the Economist Intelligence Unit (EUI) __ that Asia will grow at a 6.7% average annual rate from 2012-2014. (fix sentence, sounds weird) In relation to the production of FDI in Vietnam, this will be an advantageous move, as the Australian currency continues to increase, the current exchange rate will be higher resulting in cheaper production and maintenance cost. This will mean that more dividends and profit for the owners and shareholders. (fix sentence, sounds weird) In 2010, Vietnam s GDP was ranked 42 at US$278.1 billion, debts were ranked 62 at US$33.45billion which is US$5.61billion (CIA FACTBOOK) need to fix sentence abit in relations to ranking. As a result of this, though the government have implemented strategies for Vietnam to become a modern economical country, this process is still in the early stages and have minimal impact concerning the global community. (fix sentence abit)