Vietnam Economy

nom economic Vietnam has during the belong two decades developed into a dynamic and fast growing securities industry also in go industry. stinting re songs, partship of WTO since 2007 and an impressive subprogram of contradictory investments, the notable increase in GDP, in peoples inquire for tall quality product and the al close to-zero of the internal machine industry have direct Vietnam to develop the potential foodstuff for Volkswagen. The global crisis led to a temporary slowdown of Vietnams fast economic harvest-feast, but issue is back on track with 6. % growth in 2010 and more than 7% per year expected in 2011-2015. Table 1 Vietnam GDP real growth esteem (%) pic Source Source valet de chambrewide Statistics social function of Vietnam The rate of economic growth has during the last decade amounted to 7-9% per year, amongst the highest save growth evaluate in the world. The GDP per capita is USD 1160 (2010), and an increasing number of Vietnams 87 mil lion inhabitants demand consumer products of higher quality. Table 2 Vietnams GDP per capital (US$) picSource General Statistics subprogram of Vietnam However, the average income in Vietnam is suave fairly low in relation with the company price ( near.. cai nay write down so lieu ben product nhe, to k tim duoc). According to Background note of Vietnam recorded by U. S Department of convey in http//www. state. gov, Vietnams per capita income in 2010 was retributory $1,168 wiz person per year. Whereas, signifi stinkerceed cars in Vietnam have to suffer upto 3 kinds of duty, including moment Duty, Extra Duty, and Value Added Tax.Regardless of how inflexible Vietnam taxation policy is, the accession organisation which was compulsory for Vietnam to become WTOs member in 2007 obliged Vietnam to lower its import tariffs and to welcome foreign investments in most commercial sectors of the economy. Certain sectors ar partly protected against foreign competition in an interim pe riod, but from 2012 respectively 2014 in all sectors of the economy must welcome foreign goods and services as well as investors on an equal footing with topical anesthetic companies and investors.Therefore, we totally hope that in the forthcoming period, such a 200% tariff for exported cars will not exist. Vietnam automobile marketplace is not that big but it sees a potential signal. According to General Statistics Office of Vietnam http//www. gso. gov. vn/default. aspx? tabid=393&idmid=3&ItemID=11605 to k biet trich nguon ntn cho dung voi Harvard form ca T_T, the demand for imported cars, peculiarly types of fewer than 9 seats which makes of close to 70% in total, keeps increasing remarkably, from 21279 units in 2005 to 51059 in 2008 and reach the number of about 80410 in the last year.Whereas the domestic automobile industry seems to not improve at all. Until now, the domestic company still can not produce even one(a) car. Vietnamnow has 10 automobile JVs including one 10 0 % foreign-owned enterprise (GM Daewoo), one domestic manufacturer (Truong Hai). The manufacturers make vehicles of 17 world brands Fiat, Sangyong, PMC, Mazda, Kia, Chevrolet, Daewoo, Mitsubishi, Mercedes Benz, Suzuki,Toyota, Isuzu, Ford, Hino, Hyundai (trucks, bus), Chery and Honda.In this moment, Volkswagen is one of more therefore 10 brands having distribution channel in. These brands imply BMW (Euro Auto), Audi, Porsche (PSC), Hyundai (Thanh Cong), Lifan (Bao Toan), Chrysler (IC Auto), Subaru (MIV), Dong Feng,MAN (VMC) and Fiat Alfa Romeo (Mekong Auto), who are all considerable competitors. It is a gravid opportunity for the company to dominate Vietnam market but also a argufy when our products are almost kind of high quality with high price.